Business | Markets
Stock market closure triggers violence
Trading on Bangladesh exchanges halted as index circuit breakers hit their lower limit
- By Anisur Rahman, Correspondent
- Published: 00:00 January 20, 2011
Dhaka: Hundreds of angry investors took to the streets yesterday after trading on Bangladesh's two stock exchanges in the capital and northeastern port city of Chittagong was halted under a newly introduced "index circuit breaker" as the general index hit its lower limit.
Trading on the Dhaka Stock Exchange (DSE) came to a halt at 2:26pm, for the third time this month, and the Chittagong Stock Exchange followed suit, complying with the circuit-breaker restrictions, prompting small investors to stage violent street protests that damaged a number of vehicles in the capital's main Motijheel commercial district.
The protests disrupted traffic in front of the Dhaka Stock Exchange as angry demonstrators set fire to piles of paper at the regulatory Securities and Exchange Commission (SEC) and chanted anti-government slogans, prompting intervention by baton-wielding policemen.
Automatic shutoff
The capital market circuit-breaker kicked in on the first day at about 2:30pm yesterday as the prime bourse's general index fell 225 points, triggering the automatic trading shutoff. The stock market in the port city followed suit as directed by the SEC.
Finance Minister Abul Maal Abdul Muhith earlier yesterday convened an emergency meeting to review the volatile market situation, joined by the governor and other senior officials of the Bangladesh Bank and SEC.
Yesterday's development came as trading on both bourses was halted for the second time this month as the market continued to fall despite all rescue measures.
SEC officials earlier said the number of investors had risen to more than three million from fewer than 500,000 in 2006, but prices began crumbling early last month after the market regulator and the central bank took measures to cool the market, prompting frequent street protests.
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