Friday, December 13, 2024

Probe ordered, trading resumes tomorrow

The government on Sunday asked the merchant banks to reinvest their profits made from the volatile share market in a bid to bring back normalcy to the capital market, trading on which had remained suspended for the past two days.
Trading on the capital market is scheduled to resume on Tuesday after the government decided to lift the circuit-breaker on index, temporarily suspend offloading of shares of two companies through book-building process, and form a body in the next 15 days to investigate into the market anomalies and submit its report within one month.
Finance minister Abul Maal Abdul Muhith, after a series of meetings with the stakeholders of the market, central bank representatives and government officials, disclosed the decisions at a briefing at the secretariat on Sunday evening.
He said the central bank would continue with its flexible stance on banks’ investment in the share market.
Muhith did not find the market free of risk yet but he also termed the market condition ‘not too bad’. He disagreed with the allegation that the Securities and Exchange Commission had failed to face the situation and that it required reconstitution.
‘We now have a tremendous ability to observe the market. We now have easy access to the information on who is transacting what. So, it is very much possible to stabilise the market. And I believe it will continue to be stable since we resume trading on Tuesday,’ he said.  
He said the finance ministry was considering introducing a buy-back system for share issuers, amending the age-old company law.
‘The overall price-earning ratio in the market is 23:1 and the index now stands at around 6,300 points. I do not think it is too high. The market fundamentals are good. And the fundamentals of markets in neighbouring countries are also similar,’ he said.
‘Trading will resume on Tuesday and the institutional buyers will be active in the market,’ he said.
Muhith rejected the notion that a huge amount of money was smuggled out of the market.
‘A nominal amount went out of the market and we would take action in this regard,’ he said but did not divulge the amount.
The minister observed that there was a lack of coordination among the central bank, the Securities and Exchange Commission, and the Office of the Registrar of Joint Stock Companies and Firms and emphasised increasing the frequency of meetings among them as ‘the market needs to be remodelled and a reform package needs to be introduced.’
He considered that the SEC advisory board needed to be strengthened and made more proactive. The board would be reconstituted in a couple of weeks.
Muhith also laid stress on putting an end to taking frequent ad hoc decisions by the market regulators.
He said the circuit-breakers in place for individual companies would continue but the index circuit-breaker would go as there was no software required to implement it in Bangladesh.
The minister urged the investors to be a littler more cautious. ‘It is not likely that an investment of Tk 10 would yield a profit of Tk 50. Many of the investors do not know the issues related to the capital market. I am sure many investors even do not know the face values of the shares they own.’  
Responding to a question whether there would be any measure to patronise the investors like many countries did during the global recession, Muhith said, ‘Our target is to protect the interests of investors. But it is tough to say right now what would be the measure.’ He however categorically ruled out any possibility of providing compensation.
Muhith said the cases filed after 1996 stock market scam could not be continued as no witness was found. ‘Next time, we will not require any witness. The records at the central depository of Bangladesh will be the witness.’ 
SEC chairman Ziaul Hoque Khandaker said the commission would not intervene in issuance of margin loans.
Earlier in the morning, Muhith had a breakfast meeting at the state guesthouse Padma with the stakeholders and experts to find a way out of the crisis. The meeting had continued till midday.
Prime minister’s advisers Mashiur Rahman and HT Imam, Bangladesh Bank governor Atiur Rahman, Bangladesh Publicly Listed Companies’ Association president and adviser to the AL president on private sector development Salman F Rahman, deputy governor of the central bank Ziaul Hasan Siddique, Bangladesh Krishi Bank chairman Khondker Ibrahim Khaled, Federation of Bangladesh Chambers of Commerce and Industry president AK Azad and its former chiefs Annisul Huq and Manjur Elahi, and former DSE chief Rakibur Rahman also took part in the meeting.
Later in the afternoon, Muhith held another round of meetings in his finance ministry office.
The minister held the series of meeting following the recent volatility in the capital market as panic-stricken investors went into heavy selling in a market suffering from a severe liquidity crisis.
The investors went for violent street protests last week after the general index of Dhaka Stock Exchange fell by 16 per cent over a week.

 

Via: New Age

Related News

BIDS study shows 28.24% of graduates from National University unemployed

News Desk : dhakamirror.com A recent study conducted by the Bangladesh Institute of Development Studies reveals that 28.24% of graduates from colleges affiliated with the National University remain unemployed. Moreover, a majority of the ones who secure employment are primarily engaged in low-paying jobs, the study further revealed. The study titled, “Understanding unemployment among college ... Read more

Begum Rokeya Day observed with call for women’s equality

News Desk : dhakamirror.com Begum Rokeya Day was observed on Monday across the country with a call for ensuring equality of women in every sector. The country marks December 9 as Begum Rokeya Day commemorating birth and death anniversaries of Begum Rokeya Sakhawat Hossain on the same day. Begum Rokeya, considered as a pioneer of ... Read more

Saudi mega projects push demand for Bangladeshi workers as other markets shrink

Kamran Siddiqui Saudi Arabia hired 83,733 Bangladeshi workers last month, marking the highest number of overseas employment in a single country in 35 months, driven by ongoing mega projects which indicate a further boost in demand for Bangladeshi labour. While overseas employment in Saudi Arabia is surging, the demand for Bangladeshi workers in other labour ... Read more

Bangladesh’s civic space broadened: report

News Desk : dhakamirror.com Civic space condition improved in Bangladesh due to steps taken by the interim government, said the People Power Under Attack 2024 report. The CIVICUS Monitor, a research consortium led by global civil society alliance CIVICUS that track civic space, unveiled the new report on Wednesday, said a press release. Bangladesh stayed ... Read more

Drastic fall in Bangladesh-India flights amid visa restrictions

Tanzil Rahaman The number of flights on different routes between Bangladesh and India has drastically fallen amid passenger shortages as the Indian government had imposed visa restrictions. The flights of Biman Bangladesh Airlines and US Bangla Airlines have halved after the fall of Sheikh Hasina government on August 5 amid a student-led mass uprising, according ... Read more

Bangladesh committed to sweeping labour reforms: Yunus tells US delegation

News Desk : dhakamirror.com The interim government is committed to carrying out sweeping labour reforms in an effort to attract more foreign buyers to the country, Chief Adviser Professor Muhammad Yunus told a visiting delegation from the United States. The chief adviser made the comments at his office in Dhaka’s Tejgaon when a United States ... Read more

Health ministry prohibits drug company reps from entering hospitals

News Desk : dhakamirror.com In order to improve hospital services and make sure appropriate treatment for those hurt during the Anti-Discrimination Student Movement, the Ministry of Health has issued 10 directives. One of these directives prohibits representatives of pharmaceutical companies from entering hospitals. A directive signed by the deputy secretary of the Health Service Department, ... Read more

Over 20 injured in clash between Polytechnic, Butex students

News Desk : dhakamirror.com A clash occurred on Sunday evening in Tejgaon in the capital city of Dhaka, resulting in injuries to around 20 to 25 people. The incident involved students from the Bangladesh University of Textiles and Dhaka Polytechnic Institute. The clash broke out at about 9:00pm on Sunday at Aziz Hall of BUTEX ... Read more

Ex-chief justice Ruhul Amin dies

News Desk : dhakamirror.com Former Chief Justice Ruhul Amin died early Sunday morning at the age of 83 due to health issues related to aging. The chief justice’s office said in a condolence message that his passing occurred around 4:30 am while he was receiving treatment at the Combined Military Hospital in Dhaka. Namaz-e janaza ... Read more

Well-marked low over Bay may intensify further

News Desk : dhakamirror.com The Bangladesh Meteorological Department (BMD) reported that a well-marked low-pressure area over the southeast Bay of Bengal and nearby Equatorial Indian Ocean is still present. This weather system is likely to strengthen further, according to BMD’s morning update. The bulletin indicates that the weather will likely be dry with some clouds ... Read more

Dhaka – Benapole train service, passing over Padma Bridge to start on December 2

News Desk : dhakamirror.com Train services on the Dhaka-Benapole route via the Padma Bridge will start on December 2. Padma Rail Link Project Director Md Afzal Hossain said it on Thursday (November 22). He said, “We are hopeful about the official start of passenger train services on the Dhaka-Benapole section via the Padma Bridge from ... Read more

475 killed in road crashes across Bangladesh in October: report

News Desk : dhakamirror.com At least 475 people were killed and 815 others were injured in 452 road crashes across Bangladesh in October, said a report published by the Passenger Welfare Association of Bangladesh on Saturday. During the time, 34.31 per cent or 163 people were killed and 29.32 per cent or 239 more were ... Read more

Three IUT students lost lives as picnic bus becomes electrified

News Desk : dhakamirror.com Three students of the Islamic University of Technology (IUT) died by electrocution and around 60 were left injured after a bus taking them to a picnic came into contact with an overhead bare electric wire in Gazipur’s Sreepur today (23 November) at 10:30am. The deceased are – Mozammel Hossain Naim, 24, ... Read more

Khaleda joins Armed Forces Day event after 12 years

News Desk : dhakamirror.com Bangladesh Nationalist Party chairperson and former prime minister Khaleda Zia on Thursday attended the Armed Forces Day reception programme at Senakunja after 12 years. Chief adviser to the interim government Muhammad Yunus exchanged greetings with Khaleda Zia at the reception programme at Dhaka Cantonment. Khaleda last attended the Armed Forces Day ... Read more

AMM Nasir Uddin made CEC

News Desk : dhakamirror.com Former secretary AMM Nasir Uddin has been appointed as the new chief election commissioner. President Muhammed Shahabuddin appointed him and other election commissioners on Thursday, a day after the EC search committee submitted the shortlist containing 10 names for those posts. Other members of the commission are former additional secretary Md ... Read more

JU student lost life after being hit by battery-run rickshaw on campus

News Desk : dhakamirror.com A first-year student of Jahangirnagar University died after she was hit by a battery-powered rickshaw on campus yesterday evening. Afsana Karim was a student of marketing and a resident of Begum Khaleda Zia Hall. Her parents live in Sherpur. In security camera footage, Afsana was seen walking near the arts building ... Read more

Education must foster creativity : Professor Yunus

News Desk : dhakamirror.com Chief Adviser Dr Muhammad Yunus said on Wednesday (20 November) that Bangladesh’s education system must foster creativity to create a generation of entrepreneurs. “We should reform the education system in a way that it creates a generation of entrepreneurs. We need education, which helps students become creative people. Our young people ... Read more

World Day of Remembrance for Road Traffic Victims observed

News Desk : dhakamirror.com World Day of Remembrance for Road Traffic Victims was observed in Bangladesh on Sunday as elsewhere in the world. To mark the day, different government and non-government organisations held different programmes on the day. The day is commemorated on the third Sunday of November each year. Dhaka North City Corporation on ... Read more

Chief Adviser opens waiting lounge at Dhaka airport

News Desk : dhakamirror.com Dr. Muhammad Yunus has opened a new waiting lounge for expatriate workers and their families at Hazrat Shahjalal International Airport in Dhaka. The lounge was inaugurated after his return from the COP29 climate conference in Baku, Azerbaijan. Dr. Yunus mentioned that he had previously opened a lounge for expatriate workers before ... Read more

Saudi Arabia opens doors to nurses from Bangladesh in landmark move

There are only a few dozen clinicians among nearly 30 lakh Bangladeshi expatriates in Saudi Arabia Kamran Siddiqui Highlights Saudi Arabia has begun recruiting Bangladeshi nurses, marking a significant milestone in overseas employment, as the Gulf nation traditionally employs lower-wage, less-skilled workers from the country. The recruitment process, targeting an initial intake of 500 nurses, ... Read more