Adviser stresses increased liquidity to beef up market
An increased flow of liquidity can bring back confidence among the stockmarket investors, Mashiur Rahman, economic affairs adviser to the prime minister, said yesterday.
He also asked the investors to properly follow the rules of the capital market.
“If the investors are ready to take risk and face volatility, they should stay in the market,” he said while speaking at the launch of Bangladesh Fund subscription at Hotel Radisson in the city.
The public subscription will be for Tk 3,500 crore, as Tk 1,500 crore has been contributed by the sponsors. Investment Corporation of Bangladesh (ICB) is the leading sponsor of the fund.
On behalf of AB Bank, Managing Director Khondker Fazle Rashid bought units worth Tk 20 crore and Deputy Managing Director Badrul H Khan bought units worth Tk 20 crore.
The adviser said investors have lost money as they ran after gossip instead of studying the capital market carefully. They should come up with long-term investment plan, he added.
Prof Khairul Hossain, chairman of the Securities and Exchange Commission, said the government has formed the fund to contain the downward trend in the market.
“We should increase institutional investment in the market to encourage retail investors as the number of retailers is huge,” he said.
The SEC is ready to give any waiver to the Bangladesh Fund to strengthen it, he said, adding that the government should do the same.
Fayekuzzaman, managing director of the ICB, said the main objective of the fund is to stabilise the market, supply liquidity and provide attractive dividend to the fund-holders by investing the proceeds in the capital and money market.
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