Finance Minister AMA Muhith on Wednesday claimed that the capital market was more or less stable in the last two years (2012 and 2013) as investment from the stocks was highly creditable during this period.
“It’s noticeable that in the year 2012 and 2013, the capital market was more or less stable. But, there will be ups and downs and it’s obvious as it happens all over the world… it’s a matter of pleasure that investment from the capital market is happening to a sufficient amount and it’s highly creditable and you’ve also contributions (stock exchanges) to this end,” he said.
The Finance Minister was talking to a delegation of Dhaka Stock Exchange (DSE) Ltd at his Secretariat office today. DSE president Ahasanul Islam Tito led the delegation.
About the state of the capital market, Muhith said that the government had gone through great difficulty to bring stability in the stock market. “Our aim from the very beginning was to make the capital market a major source of investment and there were some initiatives… but when there were very high valuation of different scripts, then it could not be properly reined in.”
He added: “For that situation, all have faults, and I think there is no further need for talks on this issue as we’ve overcome that situation, thanks to the Bangladesh Securities and Exchange Commission,”
Mentioning that the current SEC has been doing well, the Finance Minister said: “The current SEC is a very good commission, possibly the best in the history of Bangladesh,”
Regarding the demutualization of the stock market, he said although there was negative attitude from the country’s premium bourse initially, but they came up with the proposal later. “I think, we’ve done a pretty well job together and it may be a good example for others to follow,”
About the listing of the state owned enterprises (SOEs), Muhith said that the government has given sufficient instructions to those; even the Prime Minister has also given instructions.
“But, during the transition period, we’ve asked the SEC to slow down. But, now I’ve already asked the SEC to go on with their regular listings. So, I think these (SOEs) should come in the stock market.”
Mentioning that the accounting standards in the country are still not so good, he said: “I should say there are many problems and we’ve taken steps for enacting the Financial Reporting Act as it has already been approved in principle,”
The Finance Minister said that the current interim government is working on formulating the law and it is likely to be placed in the new session of the next parliament.
He said the Dhaka Stock Exchange is proceeding very well and with the support of all, the DSE would be an important stock exchange.
Bank and Financial Institution Division Secretary Dr M Aslam Alam, DSE Directors Ahmad Rashid Laly and Sheikh Kabir Hossain also spoke on the occasion.