Kamal ‘baffled’ by a lack of confidence in market

The stock market is suffering from a lack of confidence, according to Finance Minister AHM Mustafa Kamal.

"But why this lacking exists, I do not know," he said, adding that many people even called to inform him about their lack of confidence in this regard.

"For a sustainable economy, a strong stock market is necessary and so we want to make the market popular," Kamal said. "We want to provide anything that might be necessary for the wellbeing of the stock market."

The finance minister made these comments at a virtual seminar organised by the Dhaka Stock Exchange yesterday.

"We provided more support to the capital market than what the stakeholders sought in the last budget."

For instance, people were allowed to invest their undisclosed income while cash dividends were encouraged.

Companies provide stock dividend for one or two years to help expand their businesses.

However, many companies have provided stock dividends year after year in a bid to increase their reserves instead of giving cash dividends, Kamal said, adding that most of this was misused.

"So we gave incentives for cash dividends."

Kamal also urged people to come forward if they have any effective recommendations for the betterment of the stock market.

Sometimes a vested group of people cheat investors but digitalisation and information technology can protect small investors' interests, said Prof Shibli Rubayat Ul Islam, chairman of the Bangladesh Securities and Exchange Commission.

"So, we are focusing on it," he said, adding that the pandemic also led to the realisation that digitalisation is compulsory.

"With digitalisation, stock market gambling could also be curbed, so we are working on it in association with the World Bank," the chairman said.

The commission has also been working to enable the launching of multidimensional products.

"So we have approved many types of bonds."

Many of those bonds are going to be traded on the stock exchanges and foreign investors can invest in them as well.

"We are working to improve the situation of listed junk stocks too," the BSEC chairman added.

Salman F Rahman, the prime minister's private industry and investment adviser; Md Ashadul Islam, senior secretary to Financial Institutions Division of the Ministry of Finance; and Md Eunusur Rahman, chairman of the DSE, also spoke at the event.