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The Financial Express

Kamal, DSE meet Jan 02 on policy support

MOHAMMAD MUFAZZAL | Published: December 25, 2019 10:36:06 | Updated: December 26, 2019 16:01:17


File photo (Collected) File photo (Collected)

The Dhaka Stock Exchange (DSE) will sit with the finance minister to seek effective policy support for bringing back investors' confidence in the moribund stock market.

The country's premier bourse fixed January 02 for the meeting as per the consent of AHM Mustafa Kamal.

The DSE has made the initiative following a sluggish trend in the stock market which has already sunk to more than 42 months' low amid panic sales.

"Liquidity crunch aside, a lack of investor confidence is a major problem of the stock market. We'll raise problems at the meeting to seek effective policy support," DSE director Minhaz Mannan Emon.

Investors have long been passing hard times for lack of good governance in the stock market, he told the FE.

"We'll try to discuss the main problems along with the need of nurturing good governance to deliver a positive message to our investors," Mr Emon said.

He said the DSE will also emphasise ways of ensuring market-supportive roles to be played by institutional investors like the Investment Corporation of Bangladesh (ICB).

Amid panic sales, the DSE saw major corrections in its broad index, DSEX, which has gone down below 4,400 points after losing 366 points in the past one month.

The DSEX has also witnessed a loss of 1,599 points since January 24, when the index hit its peak at 5,950.

Market capitalisation has also shed over Tk 300 billion in the past one month and Tk 857 billion in eleven months.

Following investors' poor participation, the turnover value also came down below Tk 2.4 billion on the premier bourse.

Meanwhile, the finance ministry has sought opinions from the central bank and the securities regulator on a Tk 100-billion loan sought by stock brokers to support the market.

Earlier, the state-run ICB also sought fund support from the government to enhance their market-supportive capacity.

mufazzal.fe@gmail.com

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