Dhaka:The capital market in Bangladesh is witnessing a resurgence, marked by a 17.05 percent increase in the Dhaka Stock Exchange's (DSE) average daily turnover last week. This improvement follows two critical policy decisions aimed at revitalizing the market the reopening of suspended beneficiary owner (BO) accounts and the extension of the deadline for banks to utilize special funds for stock market investments.
According to Bangladesh Sangbad Sangstha, these initiatives have sparked renewed optimism among investors. The DSE recorded a significant rise in trading activity, with the average daily turnover reaching Tk 526.79 crore last week, up from Tk 450.08 crore the previous week.
Market insiders attribute the improved investor confidence and increased market liquidity to these government decisions. The reactivation of suspended BO accounts, in particular, has been a catalyst for the recent market rally. DSE Managing Director Nuzhat Anwar noted that the anticipation surrounding the reopening of these accounts has positively influenced investor sentiment, despite the lack of detailed official communication on the matter.
Saiful Islam, President of the Dhaka Stock Exchange Brokers Association of Bangladesh, emphasized that the two policy changes have encouraged investment and increased market turnover. He highlighted the potential for further trading activity if all eligible suspended BO accounts are reactivated.
The extension of banks' special investment fund deadlines until December 31, 2027, offers banks more time to invest in the capital market. Market insiders believe that increased participation by banks, as major institutional investors, can stabilize the market during downturns by absorbing selling pressure.
Md Azam Khan, CEO of Anwar Securities, acknowledged the positive expectations generated by these decisions but stressed the need for additional measures to ensure sustainable market development. He called for promoting the listing of fundamentally strong companies, enhancing transparency and accountability, and preventing market manipulation.
Both market insiders and leaders agree that effective implementation of these initiatives, coupled with greater investor participation, could further enhance trading and investment activities. They underscore the importance of transparency and good governance for the sustainable growth of the country's capital market.