Market suffers on evening rumours: BSEC chairman

Rumours about the removal of the floor price are affecting the country's stock market, according to Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Shibli Rubayat-ul-Islam. 

"With some positive news, when the market normalises a little, in the evening social media is buzzing with rumours of the floor price being lifted. And it is spread in such a way that some general investors believe these things," he said.  

"General investors get panicked and sell shares. None of us say anything, but people spread these rumours," he added on Tuesday at the Brokerage House Trust Regional Equity Limited's opening ceremony.

Professor Shibli Rubayat-ul-Islam said, "We are faring well in all aspects but there is a problem in the secondary market. But what are we to do because we don't trade."

He claimed that the stock market will improve starting next March, when dividend declarations from banks will start arriving.

"Our bond market is under the market exposure limit. It will soon be taken out of the exposure limit. Then, there will be an opportunity for banks to invest thousands of taka in the bond market," he added.

The chairman said that the business climate in Bangladesh is not like before. Everyone competes to grab a bigger share of the same market. Qualified people can earn more in Bangladesh than abroad.

He said the country's per capita income and gross domestic product (GDP) grow every year. Bangladesh's GDP is larger than that of half of the European countries and much larger than that of Malaysia.

The BSEC chairman said that one fear of investors is that the floor price will be withdrawn. Rumours are spreading in the market due to this fear.

"Even after a good day's work, the journalist brothers give news in the evening that ends the day's work," he deplored.

Tanya Sharmin, chief executive officer (CEO) of the Trust Regional Equity Limited, said, "Our goal is to work for the development of the capital market. We will work in accordance with all securities laws. Besides, we will aim from the beginning to increase the savings of the investors by keeping their investment safe without complying with all the guidelines of the regulatory agencies."

Arif Khan, vice chairman of Shanta Asset Management and former commissioner of BSEC, said that work should be done on how to do a distinctive stock brokerage in the capital market.

He thinks that work needs to be done to bring innovative products to the market.

Tarafder Md Ruhul Amin, chairman of Trust Regional Equity, said, "We have come into the brokerage business to support the stock market in various ways. We can start foreign trade in October. Still, there are some complications that we would like to discuss and resolve."