Dhaka, Bangladesh (BBN)– The Dhaka Stock Exchange (DSE) sees that the country’s capital market is stable and investors have also confidence to the market.
The premier bourse also observed that investments in the capital market are being affected due to negative comments of some quarters.
The opinions came at a press briefing held at its office in the capital Dhaka on Thursday following some recent comments regarding the lack of investors’ ‘confidence’ in the market.
Md. Shakil Rizvi, former DSE president and current director, said there is no specific proof of recent negative comments reading the lack of investors’ confidence.
“There will be ups and downs in the speculative markets and the irregularities, if any, should be addressed,” Mr. Rizvi noted.
Raising question about the standard of measuring investors’ confidence, he said the share index does not matter if the companies have positive earnings.
“The market capitalisation could not be raised if there was no confidence in the market. Presently, the tendency of long term investments is more than that of day to day trading,” he observed.
In 2015, the market capitalisation stood at above BDT 3.15 trillion, which is 31 per cent higher than the market capitalisation of 2012, according to Abdul Matin Patwary, the DSE’s chief financial officer (CFO).
Mr. Patwary also acting managing director of DSE said: “The number of listed companies has also rose 18 per cent in 2015. So, it’s confusing and not based on actual information that long term investments are not being made in the stock market.”
The demutualisation of the stock exchanges is one of the major successes of the securities regulator, he added.
Among others, Dr. M Kaykobad, an independent director of DSE and another independent director Md. Ruhul Amin also spoke on the occasion.