Stock market expected to slump after DSE loses Tk 4b capital

Golam Mowla
Published : 00:00, Dec 01, 2019 | Updated : 00:00, Dec 01, 2019

File photo shows a general view of the Dhaka Stock Exchange building.The stock market is feared to plummet once more after the Dhaka Exchange lost nearly Tk 4 billion in the capital this week.
The market saw an upward trend after DSE’s benchmark index went up during four out of the five working days last week.
DSE Brokerage Association of Bangladesh (DBA) former president Ahmad Rashid Lali says that it’s imperative the upcoming week goes well to restore the investor’s confidence.
“It’s given that all the days won’t go well in the stock market. But if it drops now then the investors will be disappointed,” he said.
Centre for Policy Dialogue (CPD) Research Director Khandaker Golam Moazzem said that the stock market becomes unstable often despite being an integral part of the economy.
“CPD has repeatedly emphasised on reformation of the stock market. There hasn’t been a positive impact on the stock market despite many promises and instability has increased especially ever since the last election,” he said.
Moazzem attributed the problem to weak IPO, uncoordinated financial report, lack of transparency in BO account, a suspicious transaction in the secondary market and questionable investments.
He said that the market is likely to turn around if it can be controlled by ensuring accountability and transparency of the investors as well as provide more shares.
As of Thursday (Nov 28), the DSE index went up by 1.08 points. Moreover, despite losing capital, most of the shares of most of the companies went up and so did transactions. Every week transactions went up 19.91 percent on average.