Dhaka Stock Exchange Plunges Due to Operational Error
Yesterday, all indices of the Dhaka Stock Exchange (DSE) experienced a significant drop, leading to a sharp decline in investor confidence and turnover. The unusual figures reported were attributed to an "operational error," causing turmoil in the stock market.
Yesterday, all indices of the Dhaka Stock Exchange (DSE) experienced a significant drop, leading to a sharp decline in investor confidence and turnover. The unusual figures reported were attributed to an "operational error," causing turmoil in the stock market.
Unprecedented Turnover Plunge
The turnover at the DSE plummeted to Tk 478 crore, a stark difference from the average of Tk 1,020 crore seen in the previous month. Within just 20 minutes of trading, the benchmark index of the DSE nosedived by an astonishing 6,112 points, or 99 percent, down to a mere 0.39 points.
Suspicion Surrounding the Cause
While the DSE insists that the sudden drop in indices was a result of an operational issue, some sources suggest that a human error may have been the actual cause. Allegations surfaced claiming that the miscalculation stemmed from including 3.09 crore rights shares of Aamra Networks in the index calculation.
Investor Panic and Suspicion
Investors were left in the dark throughout the day as the inaccurate figures raised suspicions and prompted panic selling. The delay in rectifying the problem sparked concerns among market participants, questioning the competence of the DSE's IT team.
Regulatory Response and Investigation
To address the issue, the DSE engaged with Nasdaq, a renowned trading software provider, but the problem persisted until 7:00 pm on the same day. Following the incident, the DSE formed a committee to investigate the matter, while the Bangladesh Securities and Exchange Commission (BSEC) initiated an inspection of the exchange's IT and indices management operations.
In conclusion, the turmoil at the DSE serves as a reminder of the importance of maintaining transparency and accuracy in the stock market to safeguard investor trust and market integrity.
Hi, Ali Rahman in the house! From Chittagong, Bangladesh, I've been on a wild ride from Banskhali Bangabandhu High School to Govt. Alaol College and beyond, landing me at National University. Now, I'm here to dish out the lowdown on national issues and global news. Stick around for a fresh take on what's shaking up our world! Connect With Me