Welcome to Business Outlook
Related Articles
If proper returns from the stock market can be ensured, people from all over will be encouraged to park their savings and remittance at the country’s bourses, according to Professor Shibli Rubayat Ul Islam, chairman of the Bangladesh Securities and Exchange Commission (BSEC).
“So, we are working to ensure good returns for investors as well as good corporate governance in the market,” Islam said.
“If people regain their confidence in the local stock market through good returns on their investment, they will definitely bring their savings and remittance as well,” he added.
The BSEC chief went on to say that poor returns on investments will drive people away from the market.
Islam made these comments during a Trading Right Entitlement Certificate (TREC) handover programme organised by the Dhaka Stock Exchange (DSE).
At the event, entrepreneurs received 52 TREC licences.
Islam, attending as chief guest, said that savers shied away from the market as they did not get proper returns and instead, lost their capital.
“And as their investments reduced, the stock market suffered,” he added.
To address the situation, the BSEC has taken a strict stance on maintaining regulations, which is a basic responsibility that can boost investor confidence and subsequently, the market.Md Rakibur Rahman, a director of the DSE, said the market index is nothing but a price indicator which may soar past 10,000, 15,000, or even 20,000 points.
“But I hope the daily market turnover will reach Tk 5,000 crore within the next five years,” Rahman said.
Sensex, the market index for India’s Bombay Stock Exchange, was at 54,000 points yesterday while it was 58,129 points last Friday.
So, index fluctuations are not a matter for concern.
“Many people ask whether the local market can sustain and to them I say the market will sustain 100 per cent since trading-based markets are sustainable,” he said.
“However, the market may witness corrections,” the DSE director added.
Eunusur Rahman, chairman of the DSE, and Tarique Amin Bhuiyan, managing director, also spoke at the event.
(TDS)
