The country’s capital market is still shrouded by mistrust over restoration of stability though authorities declared intervention of two bailout funds worth Tk. 3,000 crore from today.
This mistrust originated from 2010 catastrophe; and therefore, failure of a series of remedial initiatives taken by the government and other stakeholders in restoring stability in the market amid persistent fall of the prices of shares.
Last week, Investment Corporation of Bangladesh (ICB) announced that it would invest this week all of Tk. 2000 crore earned from sale of long-term bonds in restoring stability of the market.
At the same time, Dhaka Stock Exchange (DSE) also hoped that the National Board of Revenue would soon issue the gazette notification with regard to rebate of taxes on Tk. 1000 crore Chinese consortium funds in order to make them use in the market by brokerage houses.
“I am not optimistic that the market will turn back. Let’s see what happens,” said Mahfuzul Alam, a small investor who trades shares regularly.
“We have seen many such initiatives,” he said in despair.
He said, “Big players (big investors) are making money even amid a situation the market is experiencing price volatility. We have been losing money all the way.”
Another small investor, Jannatul Islam Khan said that he had sold at least three pieces of his land in last five years and invested those in the capital market aiming to recover the money he lost.
“But, I did not see my luck here. Yet, I am doing this. The status of all of my shares is below the price I bought,” he said.
Meanwhile, ICB Managing Director Kazi Sanaul Hoq said last week that the board of the state-owned investment agency had consent to a proposal to invest Tk. 2000 crore in order to resist persistent falling of the capital market.
He also told reporters that their intervention will come from this week.
“I hope the current status of the market will not continue any longer. Market will be good,” he said.
He also said that the current state of market is not a result of pre-election potential developments.
He said a joint working committee will be formulated by Bangladesh Securities and Exchange Commission (BSEC) very soon to monitor the market and implement pending regulatory and reforms issues.
He said the new measures will help the market in restoring stability immediately.
In another development, a consortium funds worth Tk. 1000 crore is awaiting NBR’s clearance will also be invested in the market, according to DSE Managing Director K.A.M. Majedur Rahman.
He told The New Nation last week that the NBR has devices all procedures to clear the fund from tax implication.
“We will be able to use the funds shortly,” he said.
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 Thursday (October 25).
The daily turnover also declined alarmingly.
