Chronological news on recent stock market crash!

News! News! And News on recent stock market crash in Bangladesh! I am sure that readers (both from economics background and non-economics background) want to know the chronological developments on the issue. Based on news, articles and opinions published on various newspapers, a little attempt has been made here for readers so that they can relate one incident with others.

Stage 1: News and analysis on recent stock market crash

• Stocks nosedive 
• Historic plunge in stock prices 
• SEC halts trading at burses as stocks plummet at record speed 
• Dhaka stocks see record rebound 
• A delicate task, indeed 
• Dhaka stocks finish higher amid volatility  
• Stocks suffer biggest crash 
• Banks log hefty profit 
• Banks tread perilous path 
• Dhaka stocks slip for third session 
• Institutional investors’ role irks SEC 
• SEC suspends trading at burses again 
• SEC slaps circuit breaker to curb volatile trading 
• Unrest continues to buffet DSE as investors protest share fall 
• Market shut again as DGEN sheds 600 pts in five minutes 

Stage 2: Actions (bailout package?) of regulators against crash

•  BB relaxes loan adjustment period for banks 
• More BB fund to ICB to stabilize share market 
• Stock dealers allowed to buy shares up to Tk150m sans deposit from today 
• Harsh tax measures proposed for short–term stock investors 
• Govt to postpones book building for price fixing 
• DSE  seeks probe into book building ‘scam’ 
• Muhith admits Mistakes   
• Muhith announces stock market bailout measures 
• ‘Investor of last resort’ swings into action as stock plunges 
• High-powered body to probe share market 
• Restrictions on dividend disbursement by 15 banks 

Stage 3: Response of markets and experts on government actions

• Is circuit breaker the right solution? 
• Experts rap SEC for actions taken against six brokerage firms 
• Lax monetary policy may destabilize macro-economy 
• Ex-BB boss take a scathing look at share market debacles 
• Stock prices bounce back amid low turnover, thin transactions 
• The Stock market situation: what to do about it? 
• Paying attention to macroeconomic variables 
• From bull-run to crash, then on ‘recovery’ course 
• Avoid artificial move to boost stock market 
• Possibilities of insider trading in stock market in Bangladesh 

Monetary Policy Review

Bangladesh Bank published the recent edition of its Monetary Policy Review (MPR, Vol. IV, No. 2, October 2010) with new data and analysis on monetary developments of the Bangladesh economy. It's a worth reading at this time, especially when everyone talks a lot about role of the central bank's policies in determining stock prices.

World Economic Outlook Update, IMF

Twin problems – (i) quick recovering from global economic crisis and (ii) inflation pressures are emerging like one in 2008 - of the global economies are notable at this moment. Here is a brief on World Economic Outlook Update, IMF.

Why government borrows from IMF and the World Bank recently?

As the recent news comes, the government is close to two separate negotiations with the International Monetary Fund (IMF) and the World Bank to borrow US$2.0 billion (US$1.0 billion from IMF as the Balance of Payments support and US$1.0 billion from the World Bank as budgetary support).

Here is the news on why? 

Here: why stock prices fly?

I think, the following two articles rightly explained the basic reasons behind the recent unusual shocks in Bangladesh stock markets! Please read those and update your knowledge about any asymmetric information prevailing in regards to the recent stock market crash.

1. The Daily Star
2. The Financial Express 

Prof. Wahiduddin Mahmud on VOA

The gist of the interview of Professor Wahiduddin Mahmud by Voice of America (VOA) news offers a space to think over a few basic economic issues:

1. Whether the current export pace in Bangladesh is sustainable in the long-run due to the lack of appropriate efforts to improve the energy shortage;
2. Whether the government has been taking the appropriate measure to address the issues pertaining to long-run food security (such as asymmetric information about supply shortage vs. excess demand);
3. Trade-off between labor supply for export industries and overseas employment for higher remittances (a higher overseas employment can make a shortage in labor supply in export industries, which may increase the wage level for those industries and export may become expensive). 

Bangladesh stock crash in world news

There are some news and analyses recently on Bangladesh stock market crashes in the world media and responses.

1. World Street Journal
2. BBC
3. Weekly Blitz
4. New Zealand Herald
5. Al Jazeera
6. CNN
7. Yahoo news

Sign of a normal market?

Dear 'so-called' normal market theorists, here is a glimpse of today's market. Around 12:45 p.m. to 1:15 p.m., the buy-and-sell condition of the Top Ten shares by value. Apparently, there is no single seller for top Seven shares! Will you still claim that it is a normal market, not manipulated?

Buy		Sell		Buy		Sell
Buy Price	Buy Volume	Sell Price	Sell Volume	Buy Price	Buy Volume	Sell Price	Sell Volume
1. NBL				2. BEXIMCO
180	269400			312.2	500	312.7	300
179.9	200			312	800	312.9	1300
179.7	3000			311.5	2000	313	9200
179.6	500			311.3	100	313.5	600
179.5	5600			311.2	1200	313.8	2200
179.4	100			311.1	1300	313.9	3000
179.2	100			311	1900	314	14400
179.1	1200			310.9	500	314.2	100
179	19400			310.6	200	314.4	1300
178.8	200			310.5	600	314.5	2600
3. BEXTEX				4. GP
74.6	200	74.7	13600	244.9	600	245.9	200
74.4	1600	74.8	14200	243	800	246	1800
74.2	2000	74.9	92000	242	800	246.5	200
74.1	800	75	361400	241.7	1000	246.7	200
74	9800			241.6	600	246.8	200
73.9	200			241.5	1400	246.9	1200
73.8	5200			241.2	200	247	3400
73.7	2400			241.1	200	247.3	200
73.6	1400			241	4000	247.5	1400
73.5	3200			240.8	2400	247.8	200
5. TITAS GAS				6. PRIME BANK
979	5000			83.4	73750
975	1350			83.3	12500
972	200			83.2	6250
971	600			83	6000
970.25	500			82.5	6000
970	500			82.2	8000
967	50			82.1	2000
966	100			82	7250
965	200			81.9	2750
964	1050			81.6	4750
7. SPCERAMICS				8. POWERGRID
103.8	89900			928.5	50
103.5	500			926	100
103.3	200			925	400
103.2	1000			920.25	100
103.1	1000			920	400
103	1500			916	100
102.9	2700			915	350
102.7	100400			913.25	150
102.6	400			912	200
102.5	100			910	500
9. SOUTHEAST BANK				10. ISLAMI BANK
535.25	253200			737.25	41000
535	6750			737	260
534.75	1000			736.5	40
534.5	2500			736	70
534	1250			735	90
533.75	1000			734.25	40
533	950			733	30
532	150			730.25	60
530.25	50			730	1200
530	2900			729	50