The country's stock market is caught between initiatives and promises, with no real progress being made. Every day, investors are grappling with the pressure of market decline, leaving them in a bind.
There was a brief recovery after the fall of the previous government, but within weeks, the market became unstable. Although market stakeholders had vowed to restore stability to the market in the new year, their promises have remained unfulfilled. Instead, since the start of the year, the country’s share market has been experiencing bearish momentum. In the first 15 days of this year, the bourse market lost nearly Tk 7,000 crore in capitalization.
According to the insiders, the stock market has been manipulated and is unable to play a significant role in the economy. There are many junk stocks on the market. As a result, investors are not secured to invest.
They urged to address and probe the irregularities and fraudulent activities of the past decade, demanding that those responsible be held accountable. They insist that all forms of market interference be stamped out for the recovery of the stock market.
Since the beginning of this year, the stock market has been in a continuous decline. In the first 12 days of January, the Dhaka Stock Exchange (DSE) index dropped by nearly 100 points. During this time, the index only increased on three days and decreased on nine. In the last week, the country’s prime index declined every day.
Due to the pressure of market decline, the DSE lost nearly Tk 7,000 crore in market capitalization in just 12 days. On January 1, the market capitalization was Tk 6,63,905 crore, but by January 16, it had dropped to Tk 6,56,940 crore, meaning that investors have lost this amount from their investments.
Although authorities have announced various initiatives, investors have not seen any real impact. Some individuals and companies have been fined for irregularities and fraud, and actions have been taken against several companies. There have also been promises of reforms in the market. Despite these assurances, the stock market has not recovered, and investors are losing their capital every day.
Economic Advisor Dr. Salehuddin Ahmed held a meeting with the officials of the Bangladesh Securities and Exchange Commission (BSEC). Subsequently, the stock market experienced bullish momentum for a brief period. Stakeholders believe that decisions about the market must be made collectively. They feel that only long-term plans will not hit the mark.
DSE Chairman Mominul Islam said that without restoring investors’ confidence, all reforms would fail. He pointed out that the stock market has been greatly manipulated and has fallen behind over the last 15 years, while stock markets in other countries have advanced.
He emphasized that all stakeholders in the country are working to advance our local bourse market.
"We are moving forward with both long-term and short-term strategies. The outcomes of our long-term plans will take time to materialize. It’s similar to constructing the foundation of a building—though it may not be immediately visible, the most crucial work occurs during the foundation phase, laying the groundwork for future success," he remarked.
DSE Brokers Association of Bangladesh President Saiful Islam suggested forming a fact-finding committee to identify the irregularities of the past 15 years. He mentioned that the extent of fraud and injustice in the market is not fully exposed and needs to be documented.
He believes that the regulatory body, BSEC, must use its full authority for market development, but it is dependent on the ministry. This reliance will not help restore confidence in the market or stabilize it.
He emphasized that while the commission has been vested with full authority, it remains paralyzed without clear direction from higher authorities. Such a system undermines the potential for a stable and functioning stock market.
Translated & edited by Fariha Nowshin Chinika
