Share market downturn of 2011 is different from the incident of 1996.

Share market downturn of 2011 is different from the incident of 1996.

Capital Market of Bangladesh is one of the smallest in Asia but the third largest in the South Asia. The rise and fall of one of the world's worst performing stock market in Bangladesh stock market present position. Share market downturn of 2011 is different from the incident of 1996. The ‘game planners’ of 2011 had ensured long-term market capitalization and liquidity. This long time growth of the capital market index has made a greater confidence among general investors of capital market and in this period there was no greater market price volatility of general index, as a result a continue trend of a greater profit has induced general investors to reinvest their profits along with additional capital.

In July 2009 the general index of DSE was 2914.53 while in April 2010 it has increased and reached to 5654.88. In December 2010, the general index first started to fall by 3.62 percent than previous month. In February 2011, it has decreased about 30.5 percent and reached at 5203.08. This declining trend of general index of DSE continued and finally today  in 14 August 2012 it's  4256.32.

The government has taken many steps to address the continuous declining trend of the capital market like tax rebate of capital market investors, exemption of credit for margin level investors and also taking steps to influence banks to generate more investment in capital market. The recent most important step that the government has already declared to raise a banking fund and through investing in capital market by banking channel and tried to recover the capital market. But the ‘game planners’ of this capital market scenario have remained unspecified. The steps that government has already taken to recover the capital market have yet to be proved efficient. Moreover, the present economic adverse condition together with the contractionary monetary policy may cause a negative impact on turnover and liquidity of capital market.