Chittagong Stock Exchange (CSE) has urged the banks to start their process to invest in the stock market as soon as possible.
"Bangladesh Bank recently released a directive regarding capital market investment, where a bank can invest up to Tk 2.0 billion by their own and through their subsidiaries, and the investment will not consider banks capital market exposure either through solo or consolidated basis," Asif Ibrahim, Chairman of CSE said in a statement.
"So far I know, few banks (around 10) started this process to get approval from their boards and the regulator, and is in the process of investing the fresh funds in to capital market. I humbly request to the Board of Directors of the banks who are yet to start their process under this directive, please step up and start your process and make your investment in to this market as soon as possible," the CSE chairman said.
He said Bangladesh stock market got severely affected after the coronavirus outbreak news in the country, which resulted in almost 280 points fall in DSE index and 769 points in CSE index in a single day trading session. This is caused mainly by the panic sell by the investors as they might think corona virus might cause more hamper to our economy.
"After the sharp fall in the index the market looks much cheaper in terms of market P/E ratio, which is around 10 or less than 10 at this stage. Many stocks look much cheaper considering their future business potential and business outlook. As Bangladesh is a growing economy with aspirations to become a developed country by 2041 we believe our capital market will grow in the same pace of our economic growth. Already we came to know the main country, China, where from corona virus outbreak started, already controlled the virus attack successfully and the country has started their normal life except Wuhan province and they also reported the lowest number of new infections in a single day recently. We can assume that the trade between China and Bangladesh will normalize soon and global economy will also follow in the same direction".
-rmc//