Stock market analysts and economist said that the central bank’s decision to reduce the ADR has created panic among investors. Reducing ADR will tighten the money supply in the money market, which may push interest rates up and make stock investors fly to bank deposit, said Ahmed. He advised investors to remain calm and not to go on panic sale as it may lead to capital loss. The banking sector has seen a sharp fall as over 80% banks have seen negative growth in price as of on Wednesday. “The price index fall could be due to the panic among the investors over the impact of monetary policy and ADR reduction.

Source: Dhaka Tribune January 31, 2018 20:15 UTC