In May, a “flash crash” wiped off nearly 1,000 points—or around 9%—in the value of the Dow Jones Industrial Average in a matter of minutes. The index quickly rebounded, ending the day 3% lower.
Yesterday, the Dhaka Stock Exchange suffered a sudden drop in value, with the broad market index shedding 550 points—around 6%—in early trading. Although the decline unfolded over an hour-and-a-half, it also had an element of “flash”; a group of investors took to the streets and set fires while chanting angry slogans at the exchange’s bosses and national securities regulators.
In the end, the index closed the day down by less than 2%. It was the third consecutive daily decline, a rarity for an exchange that is up by almost 90% year-to-date. (The Dow Jones Industrials is up by only 9% so far this year.)
The Dhaka index added 1.5% in trading today. The streets were peaceful.