Stock market closure fuels riots in B’desh

Angry investors took to the streets after trading in Bangladesh's stock exchanges closed.

Hundreds of angry investors today took to the streets here after trading in Bangladesh’s two stock exchanges were closed with the general index hitting the fall limit.

Trading at the Dhaka Stock Exchange (DSE) came to a halt at 2:26 PM,for the third time in the month,while the Chittagong Stock Exchange (CSE) followed suit complying with the ‘index circuit breaker’,a newly introduced circuit breaker restriction,prompting small investors to stage violent protests on the streets,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 an irate mob piled up papers and set them 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 2:30 PM today 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 today convened an emergency meeting to review the volatile market situation while it was joined by the Governor and other senior officials of the Bangladesh Bank and SEC.

The day’s development came as trading in both the bourses were halted yesterday for the second time this month as market continued to dip defying all rescue measures.

SEC officials had 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.

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