Monirul Alam :
The deteriorated capital market has started to bounce back amid developments in the political arena with regard to upcoming dialogue on Thursday between the government and Jatiya Oikya Front, analysts say.
They say the trend of trade and rise in prices of shares on Monday and Tuesday gives investors the impression that always there is a light at end of the tunnel.
On Tuesday, the country’s premier bourse — Dhaka Stock Exchange (DSE) — recovers 52.56 points leading to raise its index (DSEX) to 5299 points. On the previous day, the market had first seen the green light signaling restoration of stability following confirmation of the dialogue by the government side.
“Political stability, among other factors, is important in any country for prevailing normalcy in capital market business. The consent of the government on holding dialogue has left a positive outlook among investors about restoring stability in the market,” said Md. Ziaul Haque Khondker, former Chairman of Bangladesh Securities and Exchange Commission.
Before this developments, the market fell persistently that triggered panic of a prolong instability among small and medium investors. In October alone, the market has lost a huge capital due to persistent falling of prices of shares in the backdrop of the liquidity crises. On Sunday last, the DSE had lost 70 points on a single day.
In the backdrop of the price volatility, DSE announced last week that it would invest all of
Chinese consortium fund of Tk. 947 crore in the capital market aiming to restoring stability after National Board of Revenue (NBR) clears gazette notification on exemption of taxes.
DSE board member Rakibur Rahman told The New Nation that it would soon be able to intervene with the Chinese consortium funds as the NBR already cleared the notification.
“We have been writing cheques for around 242 of our shareholders (Brokerage Houses). They could collect cheques from DSE’s special booth from Wednesday (October 31). All the money will be invested in the market,” he said, adding that, “Obviously the market will return to its due course.”
About political developments, he said, “Political stability influences the market for sure. I won’t comment on it anymore.”
He said an investor must be patient and goal-oriented.
“Someone told an investor that the loss of price of share/s he or she holds will not cover up. It will be better to sell those and buy new shares. On this base, the investor sold his or her shares. There is the point I pause. I will say the investor has no goal. This type of trade sends the market to fall,” he said.
He said, ups and downs in prices of shares are normal phenomena and there is no reason to be panicked.
He said, the Investment Corporation of Bangladesh (ICB) soon will be able to invest Tk. 2000 crore funds, which received from sale of long-term bonds.
“Bangladesh Bank has already cleared all the official formalities while Agrani Bank Ltd passed the matter in its board meeting. So, we hope that the ICB will get cheques soon,” he said. Last week, the ICB Managing Director Sanaul Hoq told journalists that all the funds would be invested in capital market aiming to restoring stability.
The deteriorated capital market has started to bounce back amid developments in the political arena with regard to upcoming dialogue on Thursday between the government and Jatiya Oikya Front, analysts say.
They say the trend of trade and rise in prices of shares on Monday and Tuesday gives investors the impression that always there is a light at end of the tunnel.
On Tuesday, the country’s premier bourse — Dhaka Stock Exchange (DSE) — recovers 52.56 points leading to raise its index (DSEX) to 5299 points. On the previous day, the market had first seen the green light signaling restoration of stability following confirmation of the dialogue by the government side.
“Political stability, among other factors, is important in any country for prevailing normalcy in capital market business. The consent of the government on holding dialogue has left a positive outlook among investors about restoring stability in the market,” said Md. Ziaul Haque Khondker, former Chairman of Bangladesh Securities and Exchange Commission.
Before this developments, the market fell persistently that triggered panic of a prolong instability among small and medium investors. In October alone, the market has lost a huge capital due to persistent falling of prices of shares in the backdrop of the liquidity crises. On Sunday last, the DSE had lost 70 points on a single day.
In the backdrop of the price volatility, DSE announced last week that it would invest all of
Chinese consortium fund of Tk. 947 crore in the capital market aiming to restoring stability after National Board of Revenue (NBR) clears gazette notification on exemption of taxes.
DSE board member Rakibur Rahman told The New Nation that it would soon be able to intervene with the Chinese consortium funds as the NBR already cleared the notification.
“We have been writing cheques for around 242 of our shareholders (Brokerage Houses). They could collect cheques from DSE’s special booth from Wednesday (October 31). All the money will be invested in the market,” he said, adding that, “Obviously the market will return to its due course.”
About political developments, he said, “Political stability influences the market for sure. I won’t comment on it anymore.”
He said an investor must be patient and goal-oriented.
“Someone told an investor that the loss of price of share/s he or she holds will not cover up. It will be better to sell those and buy new shares. On this base, the investor sold his or her shares. There is the point I pause. I will say the investor has no goal. This type of trade sends the market to fall,” he said.
He said, ups and downs in prices of shares are normal phenomena and there is no reason to be panicked.
He said, the Investment Corporation of Bangladesh (ICB) soon will be able to invest Tk. 2000 crore funds, which received from sale of long-term bonds.
“Bangladesh Bank has already cleared all the official formalities while Agrani Bank Ltd passed the matter in its board meeting. So, we hope that the ICB will get cheques soon,” he said. Last week, the ICB Managing Director Sanaul Hoq told journalists that all the funds would be invested in capital market aiming to restoring stability.
