Stocks hit one-month low amid BSEC standoff 

The benchmark index of the country's premier bourse plummeted to its lowest level in a month today (9 March), as investor confidence was rattled by the ongoing turmoil within the Bangladesh Securities and Exchange Commission (BSEC).  

The DSEX, the key index of the Dhaka Stock Exchange (DSE), dropped by 29 points to close at 5,174, while the blue-chip DS30 index fell by 9 points to settle at 1,880.  

Market activity reflected the prevailing uncertainty, with only 58 stocks advancing, 274 declining, and 67 remaining unchanged. Daily turnover also took a hit, declining by 5% to Tk336 crore.  

The unrest at the BSEC stems from a strike by its officials, who are demanding the resignation of the commission's top leadership. The protest follows allegations of misconduct against the chairman and other commissioners.  

In response, BSEC Chairman Khondoker Rashed Maqsood has taken a firm stance, refusing to yield to what he describes as "unjust demands." He has also vowed to intensify investigations into stock market irregularities and corruption, signaling a zero-tolerance approach to malpractice.  

The crisis escalated further after Ashiqur Rahman, the commission chairman's gunman, filed a case against 16 BSEC officials, accusing them of threatening the chairman and other commissioners. This legal action has added another layer of complexity to the already volatile situation.  

Amid the growing tensions, key market stakeholders, including the DSE, the brokers' association, and the merchant bankers' association, held an emergency meeting with the commission today. They urged an immediate resolution to the chaos within the regulator, emphasising the need to restore stability and investor confidence in the market.  

Following the meeting, the BSEC chairman called on the striking officials to end their protest and resume their duties.  

The ongoing turmoil has cast a shadow over the stock market, with investors growing increasingly wary of regulatory instability. Market analysts warn that prolonged uncertainty could further erode investor confidence and hinder the market's recovery.  

As the situation unfolds, stakeholders are closely monitoring developments, hoping for a swift resolution to the crisis to prevent further damage to the already fragile market sentiment.  

Meanwhile, EBL Securities said in its daily market review that Dhaka stocks tumbled as dominant sell-offs gripped the market right from the first hour of today's session. 

Jittery investors remained cautious amid uncertain market momentum due to prevailing tensions and unrest within the stock market regulator. Investors largely preferred to adopt a wait-and-see approach, staying on the sidelines given the weakening market trend, it added.  

On the sectoral front, the pharmaceutical sector led the way, contributing 17.7% to the DSE's total turnover, followed by textiles at 16% and banking at 10.1%.  

In terms of individual performance, Orion Infusion topped the turnover chart, followed by Alif Industries, Linde Bangladesh, and Beach Hatchery.  

Most sectors displayed dismal returns, with paper, ceramics, and life insurance experiencing the sharpest corrections, while the miscellaneous and fuel sectors exhibited marginal gains on the bourse.  

Among junk stocks, Safko Spinning – currently out of operation – topped the gainers' chart, with its share price surging by 8.26% to reach Tk13.1. Other notable gainers included Titas Gas, Asian Tiger Sandhani Life Growth Fund, and Progressive Life Insurance.  

On the flip side, Alif Industries was the worst performer, with its share price dropping 9.98% to Tk66.7. Other top losers included Midland Bank, Bashundhara Paper, and S Alam Cold Rolled Steels.