SEC chief says market will bounce back

Last updated: January 10, 2011

Dhaka, Bangladesh (BBN)- The stock market will bounce back again as the watchdog took a series of steps with the support from the central bank, Securities and Exchange Commission (SEC) Chairman Ziaul Haque Khondker said on Monday.

"Our steps will pay off: the stock market will bounce back following a normal and logical way. The normal trading will start at 11 am from Tuesday," Mr. Khondker told reporters at his office.

The SEC chief also disclosed two decisions of Bangladesh Bank  taken on the day in the face of investors' demand and strong protest.

Muhammad Yasin Ali, a member of SEC, said the regulator is passing through "a very critical time" owing to the continuous fall of the stock market.

"In such a situation, we want to convey the positive message to the investors," Mr. Ali added.

Meanwhile, securities regulator has once again bumped up margin loan ratio in a frantic attempt to reverse the slide in stocks that dropped a record 9.0 per cent in an hour.

The SEC said investors would be now eligible for margin loan at 1:2 instead of the current 1: 1.5 and lifted restrictions on 14 companies being traded at the spot market.

BBN/SSR/AD-11Jan11-2:16 am (BST) 

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