Glitches delay DSE trading by 1.5hrs, high-powered panel formed
The Dhaka Stock Exchange (DSE) faced technical glitches for the second time since March last year, delaying trading by 90 minutes and shortening the first session of the week by an hour today.
To investigate the causes, the country's premier bourse has formed a high-powered committee, which has been asked to submit its report to the DSE board by 9 January.
The delay was attributed to configuration issues in the centralised order management system (OMS) on the DSE FlexTP platform.
"The problem was fixed with the assistance of DSE's ICT engineers and FlexTrade, and trading commenced at 11:30am," the bourse said in a statement today.
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In March 2024, the DSE encountered a major error when it began displaying incorrect information about the index. The bourse attributed the issue to an operational glitch at that time.
Both the Bangladesh Securities and Exchange Commission (BSEC) and the DSE formed separate investigation committees to determine the causes, but the outcomes of the investigations were not made public.
After resolving the glitches on Sunday, stocks initially opened on a positive note. However, minutes after trading commenced, the market turned negative, and by the end of the session, DSEX, the prime index of the DSE, dropped 34 points.
In the press statement, the bourse apologised to investors and market participants for the temporary inconvenience caused by the delay in trading operations. To prevent such incidents from recurring, the DSE has formed a high-level, three-member committee.
Sattique Ahmed Shah, acting managing director of DSE, did not respond to calls despite several attempts for comments on the glitches.
Trading extended by 30 minutes
Usually, stock trading starts at 10am and continues until 2:30pm.
However, due to the disruption caused by technical glitches, trading began at the Dhaka bourse at 11:30am.
Later, the session was extended by 30 minutes, allowing trading to continue until 3pm.
3-member inquiry committee
The three-member inquiry committee consists of its high-officials including managing director, chief operating officer (COO) and chief technology officer (CTO).
The committee members are – Sattique Ahmed Shah, acting managing director and chief financial offer; Md Samiul Islam, general manager and COO (in-charge), and Md Tariqul Islam, general manager and CTO (in-charge).
The committee has been tasked with investigating the root causes of the incident, suggesting steps to be taken to reduce probability and impact of such occurrence in future, and developing standard protocols for detecting, reporting, and external communication at a time of such event.
Stocks plunge
DSEX dropped by 34 points, settling at 5,165 after a technical glitch caused panic among investors. The blue-chip index, DS30, also declined, shedding 11 points to close at 1,919.
Despite the market's downturn, turnover reached the Tk300 crore mark as the DSE extended the trading session by 30 minutes to compensate for the delayed opening.
In its daily market review, EBL Securities stated that the country's capital bourse continued to experience subdued trading activity, as most investors refrained from active participation.
Investor sentiment remained cautious due to concerns over the market's waning momentum and the absence of any significant triggers to boost confidence. The indices stayed in negative territory for most of the session following the delayed opening caused by the DSE server glitch, it added.
According to EBL Securities, selling pressure prevailed due to the market's prolonged volatility and bleak outlook.
Almost all sectors posted disappointing returns, with jute, services, and non-bank financial institutions experiencing the steepest corrections. However, the miscellaneous sector managed to record slight gains, providing a rare bright spot on the bourse.
Khulna Printing and Packaging emerged as the day's top gainer, while Keya Cosmetics was the top loser.
