Immediate steps should be taken to bring more well-performing companies to the capital market so that general investors can enrich their portfolio with better stocks, analysts said yesterday.
The stock market will be benefitted from the inclusion of more good stocks, they said at the opening ceremony of Bangladesh Capital Market Expo-2019 at Bangladesh Shilpakala Academy.
Online financial news portal arthosuchak.com organised the three-day exposition.
“The number of well-performing stocks is very limited in our stock market. So, a special initiative is needed to bring in such companies,” said Mashiur Rahman, prime minister's economic affairs adviser.
Investors will be benefitted if the number of good stocks rises, he said.
Many big corporate houses depend on bank loans for their financing needs but banks also have a limitation on lending money for long periods of time, Rahman said.
“In this case, the companies can go for initial public offerings to raise fund from the stock market. Stock market is a source of long-term financing, not banks.”
Investors should invest in well-performing stocks by analysing their potential to get a higher return, he said.
If anyone invests on a stock of low potential then s/he will not get good return even after sticking to it for a long period of time, he said.
“Don't panic on any rumour,” said M Khairul Hossain, chairman of the Bangladesh Securities and Exchange Commission (BSEC).
The government is not going to make it mandatory for stock investors to keep tax identification numbers, he said. “If the government wanted to form such rule, it would have discussed it with us.”
Hossain expressed his hope that the reforms recently brought in by the stock market regulator would help the market gain momentum in the next three years.
“The Small Capital Board will increase the potential for our small and medium companies as well as tech companies. For instance, Facebook and Google have become giant companies now from such small companies,” he added. Shameem Ahsan, president of the Venture Capital and Private Equity Association of Bangladesh; Mohammed Nasir Uddin Chowdhury, president of Bangladesh Merchant Bankers Association, and Ziaur Rahman, editor of the news site, also spoke at the meeting.