Chief adviser to sit with stakeholders on Sunday to address capital market crisis

Chief Adviser Muhammad Yunus will sit with stakeholders of the country's capital market, which has been experiencing prolonged volatility and causing significant financial losses for general investors, on Sunday to address the ongoing crisis and determine a way forward.

In light of the ongoing crisis, the government is now taking high-level initiatives to stabilise the market and restore investor confidence, officials say.

The high-level meeting titled "Development and Strengthening of the Capital Market" is scheduled to be held at the State Guest House Jamuna at 12pm on Sunday with the chief adviser presiding over.

Key attendees will include the chief adviser's special assistant, the finance adviser, the secretary of the Financial Institutions Division and the chairman of the Bangladesh Securities and Exchange Commission (BSEC).

The Dhaka Stock Exchange (DSE) has suffered from a persistent downtrend for months, leaving investors grappling with heavy losses. Although political changes in July-August 2024 raised hopes for a market rebound, no tangible improvement has been observed even after nine months.

Since the interim government took charge and Khondoker Rashed Maqsood assumed office as the current BSEC chairman, the market has become increasingly stagnant.

Many investors and market stakeholders have been blaming his "ineffective leadership and poor policy" decisions for the deteriorating situation. Despite ongoing political and economic uncertainty, he has failed to implement proactive or effective measures to support the market, they say.

Most of the chairman's decisions over the past nine months are believed to have adversely impacted the market, say the stakeholders. This has led to a growing lack of confidence and dissatisfaction among stakeholders.

As the market continued to decline, investor frustration has reached new heights. Angry investors began demanding the removal of the BSEC chairman and direct intervention from the chief adviser.

They also recently submitted a memorandum to Prof Yunus seeking urgent action.

According to market insiders, investors have been demanding the chairman's resignation, accusing him of lacking sufficient understanding of capital markets and failing to restore investor trust.

Even some former BSEC chairmen and key stakeholders have publicly expressed concern over his leadership.

Analysts have identified several root causes behind the current market crisis. Among them is the rise in gas prices, which is expected to increase production costs in various industries, further deepening investor uncertainty.

Additionally, institutional investor participation remains low, while retail investors continue to exit the market, further weakening overall market sentiment.

On 7 January, Finance Adviser Salehuddin Ahmed held a meeting with capital market stakeholders.

On 16 April, Anisuzzaman Chowdhury, special assistant to the chief adviser, visited the BSEC and exchanged views with relevant officials.

This direct intervention by the chief adviser is now seen as a reflection of the government's genuine intention to resolve the crisis, stakeholders say.

They added that this initiative could play a pivotal role in stabilising the capital market and rebuilding investor confidence.