PM’s intervention sought to stabilize capital market through offloading SoE shares; DSE, CSE ask investors to invest carefully

By AKM Moinuddin

Dhaka, Oct 9 (UNB) – In the backdrop of overvaluation of shares in the capital market, the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) Saturday asked the investors to invest carefully, sensing unexpected disorder in capital market.
“Price is too high. A share of Tk 500 is being sold at Tk 3000 which gives bad signals. We urge investors to protect their investments being careful in making further investment,” DSE president Md Shakil Rizvi told journalists at a joint press conference in the city hotel.
Md Shakil Rizvi and Fakhor Uddin Ali Ahmed, Presidents of the DSE and CSE respectively, sought Prime Minister Sheikh Hasina’s intervention to stabilize the volatile capital market by immediately offloading shares of state-owned enterprises (SoEs).
“The market is currently facing crisis of ‘good shares’…no significant company offloaded shares in the market this year and shares of SoEs should immediately be offloaded to protect the market from crumbling,” DSE boss Rizvi said.
He urged the Finance, Industries and Commerce Ministers to take steps for offloading shares of 26 SoEs in the capital market to keep the market vibrant.
“As a short term solution to the prevailing crisis, the government can offload 49 percent shares of the already enlisted companies which have currently offloaded up to 20 percent shares,” Rizvi suggested.
He observed that the capital market maintained steady growth over the last two years but all the achievements might go in vain if timely steps are not taken.
CSE President Fakhor Uddin Ali Ahmed said: “We’re observing with concern that some shares are being overvalued even though their financial base is weak, at this stage investors will have to invest carefully and consciously.”
He said the inadequacy of shares in the market is the key reason behind this, and the government will have to take the responsibility if the capital market is thrown into any disarray.
“We need strong regulation to avert any disarray…Security Exchange Commission (SEC) should increase its workforce to ensure strong monitoring over the market,” the CSE president said.
He emphasized cooperation among the DSE, CSE and SEC to ensure a vibrant capital market and bring back discipline in trading.
Fakhor Uddin also urged the authorities concerned to simplify trading of the OTC (over the counter) market.
However, none of the presidents specified who are the players behind the volatile capital market but pledged to find out the people who are making DSE, CSE and SEC controversial.
They said they would remain alert so that no company having weak financial base can enter into the capital market by capitalizing on the current crisis.
DSE senior vice president M Nasir Uddin Chowdhury, vice president M Rafiqul Islam and board of directors of both the stock exchanges were present at the press conference.
END/UNB/