Angry investors riot after Bangladesh stock exchange in free fall.

[GoFlyKiteNow]

This is what happens when bubbles are allowed to form in stock markets. The American Quantitative easing II is starting to hit Asian nations now and across Asia the effects are going to be felt. Starting with Shanghai, Indonesia and Thailand.

Angry investors riot after Bangladesh stock exchange in free fall

Sunday 19th December, 2010

The capital Dhaka became a riot-point on Sunday as stocks went into free-fall.

In Bangladesh prosperity has been plentiful this year with the country's stock market having risen 80%.

However this month the market has been nose-diving which is causing widespread anger.

The scene turned ugly on Sunday when stocks fell nearly 7%, their worst ever one-day fall. Hundreds of people started rioting in the capital Dhaka, and throwing bricks at the police.

Around 500 investors marched on the Dhaka Stock Exchange in Motijheel and the Securities and Exchange Commission (SEC) offices clasing with security and police who were called to the scene.

"They chanted slogans against the government and the regulators, and marched through the busy roads in the Motijheel Commercial area, halting traffic. They also staged a sit-in at the SEC building," Dhaka police chief Tofazzal Hossain told the AFP news agency.

The government began intervening in markets earlier this month saying stocks were getting overvalued. Restrictions have been imposed on lending for stock purchases, while Sunday's fall co-incided with an official interest rate increase implmeneted by the Bangladesh Central Bank.

The moves have unnerved institutions which are the biggest investors in Bangladesh. The government is now reviewing, and intends relaxing the measures in order to stabilise the market, which has drawn in hundreds of thousands of Bangladeshis.

 

[cocobobo]

aiyoh 7% is still not freefall...

waiting to wade in for cheap sale

 

[hahaho]

aiyoh 7% is still not freefall...

waiting to wade in for cheap sale

7% fall is enough to initiate a knock down effect.
Especially when most are playing leverage and contra on thin margins.

 

[Dreamer1]

But here a self proclaimed SMART????guy called Benjamin Ching called this the brilliant work of PAP hor!

Is PAP in the biz of building bubble?

Dec 20, 2010
Buoyant property prices a sign of rising wealth

THOSE who complain about the spike in housing prices seem to have missed the point: We are in this situation precisely because the Government got us out of the recent financial crisis at such a quick pace with prudent policies.

Many Singaporeans' jobs, and thus their household incomes, were saved because of swift measures, particularly the Jobs Credit scheme which had a lasting and direct impact, allowing the vast majority to continue servicing their housing loans.

With a home ownership rate close to 90 per cent in Singapore, shouldn't Singaporeans in general be happy about rising property values? Since this Government was elected in 2006, property prices and the general wealth of Singaporeans have gone up greatly. Credit should be given where it is due.

Let us also not forget that property prices will continue to rise as long as buyers accept such prices. Even after the slew of measures and assurances from the Government, we see many snapping up shoebox units for hefty prices in outlying areas.

Benjamin Ching

http://www.straitstimes.com/ST+Forum/Story/STIStory_615571.html

 

[Watchman]

DID I before told you guys not to invest in INDIA ?

Just like Temasek . Temasek wants to pay for LIFE .

No reason need to be given. Just gut sense .

 

[longbow]

QE2 will impact those countries without some form of currency control and any substantial economic buffer.

Even South Korea is setting limits on outlfow of currency

 

[singveld]

Bangladesh not part of india, used to, not anymore.

 

[GoFlyKiteNow]

QE2 will impact those countries without some form of currency control and any substantial economic buffer.

Even South Korea is setting limits on outlfow of currency

Yes, they set the controls in Korea because, they allowed HOT money to come in and bloat up the stock market, property market etc. Now, when bad news crop up about some Asian economies, investors pull out the hot money in torrents. Hence the control, a sure indication that investors will trigger a run and bring down the markets. Indonesia, Thailand and other Asean nations are all in the same boat or will be soon. Willingly ate the HOT money and now have to pay the price.

 

[Watchman]

For the future is just balancing trade deficit protection .

 

[longbow]

I think much of Asia has the same problem.

Which is why I said that the countries with currency controls and substantial financial resources will be able to mitigate this hot money problem. Thailand, the former candidate of demise due to outflow of hot money is better positioned as it has large reserves. South Korea is another such case.

With large reserves and currency control they can control and ensure orderly outflow of hot money and then use their reserves to plug any holes.

Believe during Tom Yum crisis, thailand has small reserves and when hot money pulled out, market and financial system collapsed.

Yes, they set the controls in Korea because, they allowed HOT money to come in and bloat up the stock market, property market etc. Now, when bad news crop up about some Asian economies, investors pull out the hot money in torrents. Hence the control, a sure indication that investors will trigger a run and bring down the markets. Indonesia, Thailand and other Asean nations are all in the same boat or will be soon. Willingly ate the HOT money and now have to pay the price.