Turmoil fails to impact markets

The current political turmoil has not impacted on the stock markets, but deeper problems persists, analysts and investors say.

Md Muniruzzaman, managing director of IDLC Investment, told bdnews24.com, “Current political turbulence has no immediate impact on capital market.”

Yawer Sayeed, CEO of AIMS of Bangladesh Ltd, an asset management company, told bdnews24.com, “There was selling pressure earlier in the market. Institutional investors took advantage of that and purchased shares from the market, so trading went up in the market.”

Dhaka stock exchange statistics indicate trade in the capital market touched rock bottom at Tk 1.37 billion on Dec 11 last year from a peak of Tk 4.22 billion . But it started to improve from Jan 6 and touched Tk 4.05 billion on Jan 13, despite the nationwide blockade starting from Jan 5.

Retail investor Ruhul Amin Akhand told bdnews24.com: “I don’t think current political turmoil has any influence in the market, but the main problem is, Bangladesh Securities and Exchange Commission (BSEC) failing to protect the basic rights of the investor"

"The share holders are unable to participate in the companies' AGMs, directors pass resolutions with the vote of their own selected people. Even the investors are not getting the financial statements which they must get. That's why people are losing faith on the market. ”

Dhaka University Accounting Department Professor Mizanur Rahman told bdnews24.com, “The problem is basic governance, stock exchanges have become de-mutualised but are yet to be transparent, there are many IPOs passed by the BSEC, which are now being traded below the issue price.”

Retail investor Abdul Motin Choudhury, who has invested in the market for past for 6 years, told bdnews24.com: “The new software of Dhaka stock exchange is very clumsy. We have trouble following the market. But, the current political turmoil is not bothering us.”

Another investor Monowar Hossain told bdnews24.com: “Companies are minimizing their cost by not providing us the financial statement. That worries us."

He said the market has picked up despite the blockade.

AIMS' Yawer Sayeed told bdnews24.com:”The economy is not doing well doing for the last two to three years. Employment has dropped and low investment has become a major problem for the stock market of Bangladesh.”

Investor Abdul Motin Choudhury blamed the stock market woes on the BSEC.