Special Correspondent :
The Investment Corporation of Bangladesh (ICB) has decided to invest Tk. 2000 crore for bailout of the deteriorating capital market.
The state-owned investment agency has mobilized the funds recently from sale of long-term bonds.
“We will be able to invest the money in capital market next week,” Managing Director Kazi Sanaul Hoq told reporters after a meeting with stakeholders at the ICB office in the city’s Motijheel area on Tuesday. He said that the current state of market and pre-election potential developments were discussed in the meeting.
“The market is falling without any visible reason. We have been observing the market closely and there is no reason to be worried at the persistent falling. We are working on this.”
He said that the ICB’s Tk. 2000 crore will supplement the Chinese consortium funds (Tk. 1000 crore) which is ready for investing in the market.
In addition, he said, a joint working committee will be formulated by Bangladesh Securities and Exchange Commission (BSEC) very soon to monitor the market and to implement pending regulatory and reforms issues.
He said the new measure of the ICB will help the market in restoring stability immediately.
“The market will be good shortly. Investors have no need to be despair,” he added. The country’s capital market is worsening since second week of the current month and the losing trend is continuing till date. The premier bourse-Dhaka Stock Exchange-has lost around Tk. 10,000 crore in the last couple of weeks. The DSE’s market capital declined from Tk. 3, 90, 882 crore on the opening day of second week of this month to Tk. 3,80, 367 crore on Tuesday (October 23).
The daily basis value of trade also fell down from Tk. 778 crore on 7th October to Tk. 379 crore on 23rd October, according to DSE statistics.
The ICB bailout scheme comes to bring back stability of the falling capital market at a time when the country is moving towards holding of national election in December this year.
BSEC spokesperson Md Saifur Rahman said that election comes cycle wise in every five years. “This is not a reason that the market is falling,” he said in reply to a question.
DSE Brokerage Association President Mostaque Ahmed Sadeque said, in the past, there was no record the market had fallen due to political reason.
“This is sort of propaganda aiming at creating panic among investors,” he said.
DSE Managing Director KAM Majedur Rahman, Bangladesh Merchant Bankers Association President Nasir Uddin Chowdhury were present in the meeting, among others.
The Investment Corporation of Bangladesh (ICB) has decided to invest Tk. 2000 crore for bailout of the deteriorating capital market.
The state-owned investment agency has mobilized the funds recently from sale of long-term bonds.
“We will be able to invest the money in capital market next week,” Managing Director Kazi Sanaul Hoq told reporters after a meeting with stakeholders at the ICB office in the city’s Motijheel area on Tuesday. He said that the current state of market and pre-election potential developments were discussed in the meeting.
“The market is falling without any visible reason. We have been observing the market closely and there is no reason to be worried at the persistent falling. We are working on this.”
He said that the ICB’s Tk. 2000 crore will supplement the Chinese consortium funds (Tk. 1000 crore) which is ready for investing in the market.
In addition, he said, a joint working committee will be formulated by Bangladesh Securities and Exchange Commission (BSEC) very soon to monitor the market and to implement pending regulatory and reforms issues.
He said the new measure of the ICB will help the market in restoring stability immediately.
“The market will be good shortly. Investors have no need to be despair,” he added. The country’s capital market is worsening since second week of the current month and the losing trend is continuing till date. The premier bourse-Dhaka Stock Exchange-has lost around Tk. 10,000 crore in the last couple of weeks. The DSE’s market capital declined from Tk. 3, 90, 882 crore on the opening day of second week of this month to Tk. 3,80, 367 crore on Tuesday (October 23).
The daily basis value of trade also fell down from Tk. 778 crore on 7th October to Tk. 379 crore on 23rd October, according to DSE statistics.
The ICB bailout scheme comes to bring back stability of the falling capital market at a time when the country is moving towards holding of national election in December this year.
BSEC spokesperson Md Saifur Rahman said that election comes cycle wise in every five years. “This is not a reason that the market is falling,” he said in reply to a question.
DSE Brokerage Association President Mostaque Ahmed Sadeque said, in the past, there was no record the market had fallen due to political reason.
“This is sort of propaganda aiming at creating panic among investors,” he said.
DSE Managing Director KAM Majedur Rahman, Bangladesh Merchant Bankers Association President Nasir Uddin Chowdhury were present in the meeting, among others.
