Finance minister AHM Mustafa Kamal on Wednesday said that there was no similarity between the stock market in Bangladesh and those in other countries.
The stock markets in other countries do not witness any investors’ demonstration if the markets drop to bottom, Mustafa Kamal told reporters after chairing meetings of the cabinet committee on economic affairs and national purchases at the secretariat in Dhaka.
‘But in Bangladesh, demonstrators jibe at the regulators and even vandalise cars on the streets,’ he said.
Mustafa Kamal iterated that he found no reflection of the country’s growing economy in the share market although it was accepted globally that the stronger economy had a stronger share market.
DSEX, the key index of the Dhaka Stock Exchange, dropped by 932.71 points in 2019 to end at 4,452.93 points on Monday with the DSE market capitalisation losing around Tk 47,744 crore in the year.The index had plunged by 858.88 points in the previous year. Foreign investment flights from Bangladesh stock market continued for last two years.
The net foreign sales were Tk 488 crore in 2019 after the investors had withdrawn Tk 593 crore in the previous year against the backdrop of volatility in the country’s financial sector amid increased non-performing loans, high interest rate and pressure on exchange rate.
Replying to a question what should be done to revive the ailing market, Mustafa Kamal said as the finance minister his responsibility was to assist the regulators and establish good governance.
He claimed that he had been discharging his responsibility since his taking charge of the finance ministry.He also claimed that regulations improved on the share market in last one year.
The finance minister said that the government would be tough for introducing the lending rate at nine per cent and deposit rate at six per cent from the new and extended deadline of April 1.
The government had to set the new deadline two days before expiring of the previous deadline of January 1 amid pressure from the banks owners.Mustafa Kamal said as per the January 1 deadline, the banks were supposed to set the lending rate at nine per cent for the manufacturing sector.
He said prime minister Sheikh Hasina at a meeting with the bank owners on Sunday observed that the ultimate success of the single-digit interest rate would not come unless the rate was introduced for all sectors.
As the rate now will be applicable to all sectors, the bankers at a meeting with him on Monday requested for deferring the deadline for three months.
He said that the country must lower the interest rate for boosting industrialisation and decrease the amount of non-performing loans.
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