Strong capital market planned
Govt firm to protect investors' interest: FM
Special Correspondent :
Finance Minister AHM Mustafa Kamal on Thursday said, the government is working to place the capital market on strong footing so that interest of the investors can be protected.
"The present government has been working to build a strong and stable capital market for ensuring investors interest and long-term financing in different sectors of the economy," said AHM Mustafa Kamal while briefing a group of journalists at his Secretariat office. For placing the capital market on strong footing, he said, "the government is committed to protect interest of the investors and make the capital market vibrant. Keeping this in mind, it is amending laws and building infrastructure and capacity of the stock market regulator and the bourses."
The Finance Minister also said that the country's capital market is now more stable that it was previously. And it is now also out of volatility.
Dhaka Stock Exchange (DSE), the country's premier bourse, suffered a big jolt on Monday when its prime index dipped to a 30-month low, forcing the retail investors to stage demonstration in front of the DSE building.
DSEX, the prime index of the DSE, plunged by 88 points or 1.70 per cent to settle at 5,091, which is the lowest level of the index since January 01, 2017, when DSEX dropped to 5,083.
The index shed 330 points or 6.08 per cent within 10 trading sessions after the budget for this fiscal year (FY) 2019-20, was passed. The market capitalisation also lost Tk 211 billion during the period under review, according to a DSE data.
"Ups and downs in share price index are normal phenomenon. Such a trend is also evident in stock markets across the world. So, investors should take it easily and stay in the market for long-term capital gain," he added.
The Finance Minister also called upon the investors not to invest money in the stock market whimsically for short-term gain.
"Our capital market is still being driven by retail investors. So, increasing financial literacy of retail investors is necessary to make the capital market vibrant," said AHM Mustafa Kamal, adding that the Bangladesh Security and Exchange Commission (BSEC) has already launched country-wide programme to enhance investors' financial literacy. Responding to a question, AHM Mustafa Kamal, said, "Bangladesh economy is in a good health. But, why its' reflection does not come into view on capital market is also my question."
The Finance Minister also said that the government already took several fiscal measures for building a strong capital market and increase participation of the investors. "Such initiatives would help bring vibrancy in the share market.