The New Nation - Internet Edition

Staff Reporter

The Security and Exchange Commission (SEC) and the Dhaka Stock Exchange (DSE) authorities are monitoring local market movements against global share market catastrophe.

"Though global share markets have little impact on our local equity business, we are closely monitoring every suspicious movement to protect our investors from any possible spark of panic," said CEO-DSE Salahuddin Ahmed Khan. He was talking to The New Nation yesterday at his DSE office.

According to him, both the responsible offices are full aware of global market situation.

"We will not let anyone to spark any rumour or panic to misguide our investors, which is easy to do in this global situation," CEO-DSE added.

"Total foreign investment in DSE is less than Tk1000 crore. Moreover, they are mostly inactive in daily market. So there is almost no chance for the global market to put a bitter impact on local markets," he repeated.

However, he termed recent bearish DSE as temporary and has predicted a moderate gain in few days.

"One way trading by the two newcomer oil companies has squashed a large portion of floating market capital. This has caused a moderate capital shortage in the liquidity market. This situation is expected to get normal in few days as they will start free trading in open market after due dates," he said.

Beside that, some institutional investors have adopted 'wait and sea' policy to avoid possible risk, watching global market scenario. This has also slowed down the market but expected to normalize soon as well, said Salahuddin Ahmed Khan.

According to the BangkokPost.com, some Asian markets have started overcoming the record braking equity mayhem on Wednesday trading as investors welcomed a hefty, surprise interest rate cut overnight by the US Federal Reserve to shore up the sagging American economy. European markets also edged up, as reported.

The Tokyo stock market soared more than 2 per cent as stocks across Asia rose in a partial recovery, effectively ending a two-day market bloodbath.

On the other hand, the Hong Kong stocks rebounded by 6 per cent in the first hour of trading on Wednesday as well.

However, the DSE witnessed a moderate bearish trend in the market yesterday. The General index lost 45.16 points, 20-Index lost 41.09 points and all shares price index has lost 36.08 points within a single day trading. Total turnover on the day was 84.35 lacs share, worth Tk 170.91 crore. Shares of total 52 companies advanced, 173 declined and 11 remained unchanged.