Protests as Bangladesh stocks plunge nearly 6%

Shares on the Dhaka Stock Exchange plunged nearly six percent, triggering protests by more than 1,000 investors in the commercial centre.

Last Updated: Feb 06, 2011, 16:27 PM IST

Dhaka: Shares on the Dhaka Stock Exchange plunged nearly six percent on Sunday, triggering protests by more than 1,000 investors in the commercial centre of the Bangladeshi capital.

The benchmark DGEN plummeted 5.70 percent or 406.28 points to 6719.08, pulled down by slumps in major sectors such as banking, energy and insurance. The market also lost 2.51 percent on Thursday, the previous day of trading.

The DGEN has shed nearly 30 percent from a historic high of 8,918.51 on December 5, sparking regular violent street clashes between investors and police.

Local police chief Tofazzal Hossain said investors on Sunday blocked key roads leading to the capital`s main business district, Motijheel, halting traffic for more than two hours.

"They demonstrated in front of the Dhaka Stock Exchange building, chanting slogans against the regulator and the authorities. But there was no violence," he said.

Many analysts have said the market is still overvalued as it has grown by 400 percent since the start of 2007 and rose more than 80 percent last year.

The number of retail investors nearly doubled over the past 15 months to 3.3 million, lured in by the record gains.

Bureau Report