Do not get swayed by stock market rumours: PM

Prime Minister Sheikh Hasina has asked people not to get carried away by market rumours and instead invest in companies which earn enough to give good returns.

Speaking at the launch of a financial investment literacy programme, the prime minister said: “I would like small investors to invest in companies listed on the stock market, based on their financial statements.”

“Do not trust stray rumours. Sometimes, when investors lose money on the stock market after reckless gambles, they blame the government, or the finance minister. We hope that does not happen,” she said.

The prime minister launched the Bangladesh Securities and Exchange Commission’s nationwide programme to educate people on stock market investment on Sunday.

“Bangalis get carried away by rumours,” she said. “We can be so carried away that we end up losing everything. I believe financial investment education is necessary for this reason.”

The prime minister also expressed her hope that the initiative would reduce the risk of investment.

Hasina also launched the site financialliteracybd.com at the event.

There are approximately 3 million investors in the Bangladesh Stock Market. Most of them arey small investors.

The prime minister expressed her belief that a strong stock market was necessary for the country’s development.

“The stock market is gradually playing an ever more important role in Bangladesh’s development,” said Hasina. “We must appreciate the degree to which the increase of economic growth in various sectors of the economy, in industry and infrastructure, depends on the capital market providing long-term investment.”

The government will continue to support the development of the capital market, the prime minister said.

The prime minister also spoke of several other government initiatives to help the stock market, including the continuation of a special incentive package to protect the interests of small investors, the formation a special speedy trial court in Dhaka for stock market-related cases, a Tk 9 billion fund to help small investors, instituting a 20 percent quota for small investors in IPO sales and the passing of a financial act to maintain the transparency and reliability of stock market information.

BSEC Chairman Dr M Khairul Hossain also spoke at the event and asked for the prime minister’s help in ensuring that multinational companies could be listed on the stock market.

“None of the multinational companies will conduct business on the stock market without being listed,” he said.

Special guest Finance Minister Abul Maal Abdul Muhith promised to look into the matter.

“Given what our economy has achieved recently, I think we can probably put a little pressure on multinational firms to invest in our country,” he said.