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Stock market closure triggers street violence in Bangladesh
Hundreds of angry investors took to the street after trading in bourses was closed
- By Anisur Rahman, Correspondent
- Published: 17:00 January 19, 2011
- Image Credit: Reuters
- Protesters put up blockades around the Dhaka Stock Exchange on Wednesday. They also damaged a number of vehicles in the Bangladesh capital’s main Motijheel commercial district.
Dhaka: Hundreds of angry investors took to the street on Wednesday after trading at the countries two stock exchanges in the capital and northeastern port city of Chittagong was closed under a newly introduced "index circuit breaker" as the general index hit the fall limit.
Trading at the Dhaka Stock Exchange (DSE) came to a halt at 2:26pm, for the third time in the month, while the Chittagong Stock Exchange followed suit complying with the circuit breaker restrictions prompting the small investors to stage violent street protests damaging a number of vehicles at the capital’s main Motijheel commercial district.
The protests disrupted traffic in front of the Dhaka Stock Exchange while the angry people piled up papers and set those on fire in front of the regulatory Securities and Exchange Commission (SEC) chanting anti-government slogans and prompting interventions of baton wielding policemen.
The capital market circuit breaker kicked in on the first day around 2:30pm on Wednesday as the prime bourse's general index lost 225 points triggering the automatic trade shutoff while the stock market in the port city followed suit as directed by the SEC.
Finance minister Abul Maal Abdul Muhith earlier on Wednesday convened an emergency meeting to review the volatile market situation while it was joined by governor and other senior officials of the Bangladesh Bank, SEC.
Wednesday's development came trading in both the bourses were halted for the second time this month as market continued dipping defying all rescue measures.
SEC officials earlier said the number of individual investors has risen to more than 3 million from fewer than 500,000 in 2006 but prices crumbled since early last month after the market regulator and central bank took measures to cool the market, prompting frequent street protests.
Shares prices nearly doubled in 2010, encouraging new investors into the market. Prices have crumbled since early last month after the market regulator and central bank took measures to cool the market, prompting frequent street protests.
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