DHAKA: The Securities and Exchange Commission (SEC) remained strict on the margin-loan issue, which pulled down the market Wednesday.

The DSE general index shed 128.35 points for fixing calculation of companies’ net asset value (NAV) for merchant banks and brokerage houses. The transactions also decreased from the previous day’s mark.

SEC in its evaluation meeting Tuesday marked the price of shares for margin loan and gave strict direction to banks and brokerage houses to follow this edict.

Threat of ‘forced sale’ for compiling extra loans from merchant banks and brokerage houses overwhelmed the market with fear and the strict attitude of SEC downed the market.
 
The benchmark DSE General Index declined before finishing at 6,649.60, down by 128.35 points. The broader DSE All Share Price Index also went down 102.15 points to 5368.93

Out of 251 companies share prices of 184 were down and 60 up while 7 companies remained unchanged.

A total of Tk 1685.86 crore 94 thousand and 233 shares and mutual fund units were traded on the premier bourse, which is TK 260.79 less than the previous day’s turnover.

Market specialists suggested investors to remain “calm” though the market was down.

Prof Salahuddin Ahmed Khan, former executive director of the DSE, said, “Market fall is not unexpected as the bourse met speedy price hike in last couple of months.”

Such fall can make the investors risk-free, he observed.

BDST 2018 HRS, AUGUST 25, 2010