No reason for deteriorating stock market situation, says Brokers' Association

The DSE Brokers' Association (DBA), in a meeting on the present state of the stock market, opined that there is no reason for the deteriorating market situation.

But there is a price adjustment of stocks after lifting the floor price barrier that is normal, they said in the meeting held virtually on Tuesday (19 March).

The broker representatives indicated that the market will return to normal very soon as the country's economy is turning around.

The representatives have raised some points to implement for the future interest of the share market. These initiatives will bring positive changes in the market and the market will be stable and sustainable in the long run, they said.

These are- the rumours in the market that the floor may be re-imposed on the share price, which is false and baseless. The DBA does not think that there will be a recurrence of the floor price.

Current Margin Rules-1999 need to be modernised and reformed. Good companies should be listed in the IPO market. Proper compliance with all laws and regulations should be ensured in case of company listing.

Emphasis should be placed on mutual funds to reduce dependence on banks for investment. It is logical to categorise the company on its capital size rather than on dividends. Shares of any company should not be increased in any other way without informing the common shareholders, and sponsor shareholders.

And the issue of double taxation should be taken into consideration and resolved immediately.

DBA President Saiful Islam moderated the programme. Among others, DSE Director Sharif Anwar Hossain, Richard D'Rosario, former DBA president Ahmad Rasheed Lali, BLI Securities Managing Director Minhaj Mannan Emon, and Beximco Securities CEO Mustafa Zamanul Bahar were present in the meeting.

Dhaka stocks suffer major decline

However, despite ensuring stability by the regulator, the main index of the Dhaka Stock Exchange suffered another significant decline on Tuesday.

The DSEX, the benchmark index of the premier bourse of Bangladesh, lost 84 points, or 1.42% to close the day at 5,814.

With this, the market fell for the eighth consecutive day, prompting the DSEX to hit the 35-month low.

Turnover slipped to Tk465 crore from Tk486 crore a day earlier. Among the traded stocks, 41 advanced, 319 dropped and 36 remained unchanged.