Big fund for share purchase | The Daily Star
12:00 AM, March 01, 2011 / LAST MODIFIED: 12:00 AM, March 01, 2011

Big fund for share purchase

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The Investment Corporation of Bangladesh (ICB) and six other state-owned enterprises yesterday decided to create a big fund to go for bulk buying of shares to contain the recent bearish trend in the stockmarket.
The decision came at a meeting between the ICB and senior officials of Sonali, Janata, Agrani and Rupali banks, Bangladesh Development Bank, and Sadharan Bima Corporation.
The state enterprises will use the fund in buying fundamental shares, whose price earning ratio is low and have big market capitalisation, said ICB Managing Director Fayekuzzaman.
The state enterprises have already made a list of such fundamental or quality shares, he added.
Private companies will also be able to take money from the fund to buy shares.
The government in February gave the ICB Tk 200 crore to go for big buying of shares, but the move failed to stabilise the market.
Market insiders said the fund was not enough.
The government should make a big fund to increase the buying power of the state enterprises, because most of them are faced with a credit crunch, they said.

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