Capital market will turn around soon: Speakers

Staff Reporter :
Speakers on Thursday said that the capital market, which is currently facing many challenges, will turn around in the coming days.
They came up with the hopes at a inaugural ceremony of a three-day “Capital Market Expo” began on Thursday at the Institution of Diploma Engineers, Bangladesh, in the city aiming to increase awareness among the people about the capital market. A specialised online news portal – arthosuchak.com – has organized the event.
Commerce Minister Tipu Munshi inaugurated the expo as the chief guest, while the special guest was Professor Shibli Rubayat-Ul-Islam, chairman of the Bangladesh Securities and Exchange Commission (BSEC).
Speaking at the event Commerce Minister Tipu Munshi said, “Our exports have increased despite the crisis. We hope that the capital market will turn around. At least 50 per cent financing required for industrialization comes from the capital market. If you can provide more money from here, the country’s business and trade will expand.”
“An educated nation is needed in all areas of development. Now many people spread rumors. So, it is not right to pay attention to rumors,” he added.
Prof Shibli Rubayat-Ul-Islam, Chairman of the Bangladesh Securities and Exchange Commission (BSEC), said, “I am very optimistic that this year will be good for the capital market. Efforts are underway to introduce more new products into the market.”
“But the benefits of new products will not manifest themselves overnight as the results will come gradually,” he added.
M Anis Ud Dowla, President of Bangladesh Association of Publicly Listed Companies (BAPLC), said, “This is a time befitting an expo as the capital market is struggling with post pandemic effects and experiencing a number of turbulent challenges like, higher inflation, Russia’s-Ukraine war, excessive volatility of dollar rates, etc.
Consequentially, the country’s stock market is going through a bearish trend, which can also be seen in many emerging, developing, and developed markets around the world for the same cause, he said.
“Apart from the macro-economic distress, there are a few market-specific challenges that are adding to the current bearish trend. For instance, the stake of retail investors in the capital market is comparatively higher than that of institutional investors,” he said.
He also said that the majority of the retail investors in our capital market are day traders, and they are intended to make profit from their investments within a short time, therefore, they don’t have enough time to take a well-researched trading decision and sometimes cause market volatility.
Asif Ibrahim, Chairman of the Chittagong Stock Exchange, said at the event, huge number of registered companies in the country. However, the presence of companies in the capital market is very low. Garment sector companies should list on the capital market. Long term investment should come from the market.
Eunusur Rahman, chairman of the Dhaka Stock Exchange, Sayedur Rahman, president of the Bangladesh Merchant Bankers Association, and Richard D’ Rozario president of the DSE Brokers Association, were also present.