Investors demand BSEC chairman's resignation amid market downturn
Turnover on the DSE declined sharply, falling 36% from the previous session
A group of general investors took to the streets, demanding the resignation of the Bangladesh Securities and Exchange Commission (BSEC) chairman, as the Dhaka stock market continues to decline, leading to significant losses for investors.
Many had hoped for a turnaround in the capital market after the political changes in July-August last year, but no recovery is in sight for eight months. Investor frustration has grown sharply as the bearish trend drags on.
On Tuesday, the DSEX index dropped 17 points to 4,936. The DSE Shariah Index (DSES) fell 3 points to 1,094, while the DS30, which tracks blue-chip stocks, lost 7 points to settle at 1,824. Turnover on the DSE also declined sharply, falling 36% from the previous session to Tk291 crore—its lowest in four months.
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The Bangladesh Pujibazar Biniogkari Oikko Parishad, a platform of retail investors, yesterday held a protest in front of the Dhaka Stock Exchange (DSE) in Motijheel, demanding resignation of BSEC Chairman Khondoker Rashed Maqsood.
The protesters allege that the BSEC boss lacks a proper understanding of the market and has failed to restore investor confidence.
Adding to the unrest, protesters highlighted the example of M Masrur Reaz, who declined the chairman post following a minor controversy—a gesture they cited as a display of integrity.
In contrast, Maqsood's refusal to step down from the chairman post amid growing criticism was seen by demonstrators as a sign of both incompetence and a lack of accountability.
Market insiders attribute the continued decline to a combination of political and economic uncertainty, panic-driven selloffs, and a growing preference for government securities due to rising interest rates. This shift has diverted funds away from equities, exacerbating the market's instability.
Adding to concerns, a sharp increase in gas prices is expected to raise production costs in industrial sectors, further unsettling investors. Institutional participation remains weak, and retail investors are steadily exiting the market.
Despite the gloom, some investors are shifting funds to undervalued or blue-chip stocks as a defensive move. However, the overall mood remains negative, with high deposit rates, liquidity issues, and political unrest as major barriers to a market rebound.
