Political uncertainty led to market fall
Brokers and merchant bankers yesterday blamed fears over political uncertainty centring the upcoming parliamentary elections as the main reason behind the recent stock market fall although the government has taken initiatives to prop up jittery stocks.
The thought was shared at a meeting at the Bangladesh Securities and Exchange Commission (BSEC) presided over by BSEC Chairman M Khairul Hossain.
Leaders of the DSE Brokers Association (DBA), the Bangladesh Merchant Bankers Association and the Dhaka Stock Exchange and senior officials of the Investment Corporation of Bangladesh (ICB) were present at the meeting.
Mostaque Ahmed Sadeque, president of the DBA, said the BSEC wanted to know why the market was falling although the government is taking initiatives such as granting tax waiver on capital gains and approval to the ICB bond of Tk 2,000 crore.
A senior BSEC official said brokers and merchant bankers mainly blamed the uncertainty, the liquidity crisis facing institutional investors and unexpected dividend declaration from listed companies such as Evince Textile.
They urged the central bank to come up with measures, including bringing changes to the capital market exposure definition so that investment capacity of financial institutions expands.
The BSEC chief told brokers and merchant bankers that the government is sincere about the welfare of the stock market.
He urged them to tell people not to hesitate to invest in the market.
