FE Report-January 31,2012 Tuesday
Syful Islam
The Ministry of Finance (MoF) is preparing a list of activities and decisions which leave a negative impact on the country's flagging stock market, officials said Monday.
Finance Minister A M A Muhith instructed the officials concerned last week to prepare a list of activities and actions, as the Securities and Exchange Commission (SEC) had drawn his attention towards the matter amid massive plunge of stock prices.
"A proper system has to be maintained in this regard (to discourage wholesale comments and inappropriate actions on stock market-related issues by individuals or institutions). First, we have to see if a list of the sensitive issues, which cause negative impact on the share market, can be prepared," Mr Muhith said.
"Later, the list can be consulted with the SEC, and made known to all the quarters concerned," the minister told the officials.
SEC chairman Dr M Khairul Hossain in a recent letter wrote to Mr Muhith: "The stock market is being considered as sensitive market globally. Bangladesh's stock market is not a different one."
"Furthermore, the market becomes unstable due to lack of knowledge and awareness about stocks on the part of a big number of investors. Bangladesh's stock market is presently passing through a tough time," he wrote.
Mr Hossain further informed the minister that the market experience different types of difficulties following varying comments and decisions by individuals and institutions.
The commission thinks that any individual or institution should take the SEC's opinion before making any comment or taking any decision on the stock market, he also wrote.
The Finance Minister recently declined to make any comment on the stock market issues, saying, "I won't say anything about the share market, since it may result further decline of the indices."
DGEN, the general index of the Dhaka Stock Exchange (DSE), has lost 1,065 points during the last 21 working days of the new calendar year, sparking protests by the aggrieved small investors.
Syful Islam
The Ministry of Finance (MoF) is preparing a list of activities and decisions which leave a negative impact on the country's flagging stock market, officials said Monday.
Finance Minister A M A Muhith instructed the officials concerned last week to prepare a list of activities and actions, as the Securities and Exchange Commission (SEC) had drawn his attention towards the matter amid massive plunge of stock prices.
"A proper system has to be maintained in this regard (to discourage wholesale comments and inappropriate actions on stock market-related issues by individuals or institutions). First, we have to see if a list of the sensitive issues, which cause negative impact on the share market, can be prepared," Mr Muhith said.
"Later, the list can be consulted with the SEC, and made known to all the quarters concerned," the minister told the officials.
SEC chairman Dr M Khairul Hossain in a recent letter wrote to Mr Muhith: "The stock market is being considered as sensitive market globally. Bangladesh's stock market is not a different one."
"Furthermore, the market becomes unstable due to lack of knowledge and awareness about stocks on the part of a big number of investors. Bangladesh's stock market is presently passing through a tough time," he wrote.
Mr Hossain further informed the minister that the market experience different types of difficulties following varying comments and decisions by individuals and institutions.
The commission thinks that any individual or institution should take the SEC's opinion before making any comment or taking any decision on the stock market, he also wrote.
The Finance Minister recently declined to make any comment on the stock market issues, saying, "I won't say anything about the share market, since it may result further decline of the indices."
DGEN, the general index of the Dhaka Stock Exchange (DSE), has lost 1,065 points during the last 21 working days of the new calendar year, sparking protests by the aggrieved small investors.
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