The capital market sank to the position of December 5 of 2016 due to lack of confidence and liquidity crisis. But from that position the capital market suddenly flashed back with hope. Due to special initiatives of Bangladesh Bank (BB) the capital market is showing some bright prospect after a continuous price fall of last 8 months, observed by the market concerned people.
On Sunday and Monday (Sept.22 & 23) the main capital market of the country Dhaka Stock Exchange (DSE) has shown an increase of 154 points. Side by side of the increase of the indicators the prices of the most companies have increased with the increase of transactions. Due to this the investors have got back their lost capital amounting to taka 10 thousand 288 crore 88 lakh and 84 thousand.
However the investors are still frustrated and scared. They said that if the price suddenly increases it does not mean that it has come to the right position. Rather good governance should be restored in the capital market. All defects must be rectified.
They said that measures shall have to be taken against the persons involved with manipulations, corruptions and irregularities. They should be given exemplary punishment then the investors will feel safe as told by the investor of Rupali Investment Securities M. Saiful Akhand.
In a meeting held recently between Finance Minister and BB governor, the BB governor announced that he will take all necessary measures for the interest of capital market. In the light of his direction on Sunday (Sept.22) the BB has taken initiative to give financial assistance through Repo to tide over liquidity crisis.
Department of Off- Sight Supervision of BB has issued a circular in this context. This has helped to become the market vibrant.
Under this facility the bank can invest in its own portfolio directly or can invest through the portfolio of the subsidiary company and for this object can grant loan to the subsidiary company.
To receive the liquidity money the bank for investing in its own portfolio or investing through the portfolio of the subsidiary company a new BO account shall have to be opened. The liquidity facility shall have to be taken from the excess liquidity of the banks either through Treasury bond bills or bill Repo.
The liquidity facility will be given keeping 5 percent margins. Primarily though the validity of Repo is 28 days but depending on successful use it can be extended up to maximum six months. For this kind Repo no auction will be required and its rate of interest will be 6 percent.
Due to this during last two days the main indicator has increased to 5 thousand points from 4836 points. The transaction has stood to 5 hundred crore from 3 hundred crore. The prices of the shares of big capital companies including Grameen Phone has increased. Owing to this the market capital has reached to Taka 3 lakh 79 thousand 919 crore from 3 lakh 68 thousand 967 crore. Similar boosting took place in Chattogram Stock Exchange (CSE).
About the over all situation, DSE Director Rakibur Rahman said the main problem in the stock market is liquidity crisis. We welcome the decision of BB for taking this measure to overcome the liquidity crisis in the market. But for the sake of capital market the BB must continue this step.
Rakibur Rahman called upon the General Insurance and Life Insurance corporations, Sonali bank, Janata bank and Agrani bank to invest in share market as it is the right time for investment.