Manipulators again in search?

The transition from the Bangladesh's Association Bank (BAB) to revitalize of the marking Exchange apparently by fallen.

Just a day after the formal announcement of the introduction of market stabilization fund of the BAB, the benchmark index of the Dhaka stock exchange (DSE), the DGEN, lost almost 181 points or 3.19 percent on Monday. Search riding on the speculations of the banks on the DSE on the two previous sessions won with low sales re-entry into the market with significant liquidity.

But the market reacted negatively to the BAB announcement of a Fund, not with investor expectations, and was in line with. Is also there reasons, skeptical about the success of the moves STA - if one, sponsored by the Government Investment Corporation of Bangladesh (ICB)-previously some actors rather instituted a tainted public image.

ICB, has understandably, under the guidance of the Government, that December came under withering criticism from all after the collapse of the market in the past, TK 50 billion Bangladesh Fund (LF) to help stabilize the market. But until now only TK have mobilized 15 billion BF not yet been able to create positive impact on the market.

At least a few of the stabilization of market initiatives followed the introduction of the BF, many suspect, have led Committee fingers shown masterminded tend to with a few individuals, at whom the probe Ibrahim Khaled.

Many have questions were indifferent about the Government on the need for appropriate measures against the people of guilt, which led the abnormal growth of the market and the subsequent crash, according to the law of nature. This indifference, it is assumed that has encouraged 'Manipulators' still a game with the market and their unfinished mission.

Interest, according to reports, is the alleged manipulators on the market can support as an unnatural event are displayed. In fact, it was of course for such people, to hide that from public view, at least for some time. But it must something very much behind their hectic efforts to buoy the market, at least for a reasonable period.

It could be that they want the market to reach to a certain height where they relieve their holdings, formerly from the secondary market bought and also run the schema for the work placement of shares, premiums. You are looking for by also ways to fill their still-unfinished agenda far fear misuse of the Bookbuilding method and list.

Despite support from those, the most important in the capital market, successfully suspected manipulators so far not in their task, the market for a sustainable rally for a reasonable time period due to the investors, who are desperate to exit from the market.

In addition, the market needs the considerable amount of liquidity in the fast pace injection. But that's unlikely even with the launch of some market stabilization fund. These resources and their availability in day-to-day transactions involve significant time and regulatory process the bourses. There should be no reason to believe that the initiators of the so-called stabilisation fund do not know these requirements. Still they try, apparently, to increase a false hope to the investors of a market turnaround.

What is most intriguing the inclusion of the BAB in the activities is market shoring. The lukewarm response from most of its members to the most recent efforts to start a stabilization fund stock exchange indicates that most of the banks not such a movement are interested or not, in reality, able to investor confidence eroded largely by some sinister developments on the market extra money for investment in the country problems wrecked exchanges accept. There is a strong sense of the banking group, the BAB, late, which go beyond a trend, the dotted lines and play, to the melodies of outsiders has developed.

It is undeniable that banks had acquired substantial profit from their investment in equity markets. But a whole bunch of them are already in difficulties as a result of the collapse of market. Given the circumstances, the banks must not enough good reasons, additional enthusiasm, to demonstrate new investments in the stock market. And the Central Bank would any kind of adventurism on their part.

While the wrong signals from the stock exchange galore, the Government seems to be no idea on how it can handle the situation. Rather some of the actions and statements appear confusing and amusing from the Finance Ministry of honchos, sometimes. The consequence of the stock market crash has led to many distortions in the economy and society. The situation requires that well thought-out measures, which would help to stabilise the market by the normal process. The Government would make a mistake, if they support, open or concealed, or any attempt to market artificial buoy. It would cause more harm than good, to the market in the long run.

zahidmar10@gmail.com

Source: thedailystar.net

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