Regulator urges intermediaries' active participation to stabilise stock market

The securities regulator has requested market intermediaries such as merchant banks, brokerage firms, and asset managers to ensure their active participation in stabilising the stock market and easing the liquidity crisis.

During a meeting organised by the Bangladesh Securities and Exchange Commission (BSEC) on Monday, intermediaries emphasised the need for a combined effort to restore confidence among investors.

Present at the meeting were the managing director of the Dhaka Stock Exchange, the leaders of the DSE Brokerage Association and Bangladesh Merchant Bankers Association, and the top 10 brokerage houses.

To address the current crisis in the capital market, stakeholders have initially taken three measures: providing support to the market through dealer accounts of each institution, activating investments by engaging with bank treasury heads, and boosting mutual fund investments.

During the meeting, BSEC Commissioner Shaikh Shamsuddin Ahmed emphasised the need for capital market participants and brokers to actively engage with the market.

He highlighted that the regulatory body takes the opinions of market stakeholders seriously, with the objective of promoting the prosperity of the country's capital market by considering the input and advice of market stakeholders on various capital market matters.

The commissioner mentioned that BSEC will consider the viewpoints and recommendations of market stakeholders from this meeting to address the current state of the capital market.

With Bangladesh's economic situation and financial position improving, there is anticipation for the capital market to regain its vibrancy and strength shortly.

BSEC Executive Director Mohammad Rezaul Karim underscored the challenges of the capital market and outlined necessary actions.

He emphasised the need to boost investments from BSEC-registered institutions such as stock dealers, merchant banks, asset management companies, and mutual funds.

Additionally, he proposed organising a meeting with the heads of the treasuries of banks to discuss increasing bank investments.

Today's market

Stocks at the Dhaka Stock Exchange (DSE) snapped a five-day losing streak on Monday after the BSEC verbally asked market intermediaries to become active on the buy side.

The DSEX, the benchmark index of the DSE, rose 21 points to reach 5,674 on the day after losing more than 200 points during the previous five sessions.

Meanwhile, turnover at the country's premier bourse also jumped by 20% to Tk574 crore compared to the previous session.

Among the traded issues, 224 advanced, 112 declined, and 60 remained unchanged.