In less than a day, the Bangladesh Securities and Exchange Commission (BSEC) has backtracked on its decision to impose some regulatory measures to bring stability to the market.
On Tuesday, the regulator directed stock exchanges to investigate the reasons behind the abnormal price hikes of the shares of a number of listed companies.
But, the following day, it postponed the implementation of its instructions after the market experienced a negative impact.
"We have postponed the guidelines issued for the stock exchanges," said BSEC Commissioner Dr Shamsuddin.
"It has created confusion among investors. For this reason, the commission has decided to put it off," he added.
Market insiders said the stock market suffered a big blow following the issuance of the guidelines on the investigation, and investors were confused by the BSEC's decision.
Indices of both stock exchanges fell on Wednesday.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dropped by 1.55% or 91.02 points to settle at 5,770.
However, the turnover on the DSE rose by 6.34% or Tk126 crore on Wednesday.
Recently, many listed companies' share prices have increased by three to four times in the post-pandemic capital market.
The share price of Robi Axiata Limited, which was recently listed, has increased almost six times since its debut. The company's shares rose by 530% last month.
Additionally, the Bangladesh Export Import Company's share price has increased by 155% – from Tk31 to Tk80 per share – within the last month.
Further, the share price of LankaBangla Finance has increased by 92% – from Tk23 to Tk44 per share – within the last month.