The main capital market of the country has been in a long-term recession and the index and transactions are gradually going down. Investors transact in the capital market through brokerage houses. These organizations mainly earn from commissions on transactions, but currently 90 percent of brokerage houses have to count operational losses. In this situation, the owners of the brokerage houses feel that this situation will not change if the initiative is not taken to increase the market transactions by listing the shares of big and good companies.
Officials of the brokerage house said that in the existing situation, the companies are struggling to pay the salaries of the employees. Although everything is increasing with the passage of time, the transactions in the capital market are decreasing. Currently, due to rising interest rates, the institutions are incurring additional expenses. Recently the owner of a brokerage house took money from the funds of his other business to meet the salary and other expenses of the employees. Many private companies do not have that capability. The current situation in the capital markets does not seem to be getting out of the way anytime soon. They think that if this situation is prolonged, there is a fear that many brokerage houses will be closed.
A review of the capital market situation shows that at the end of 2022, the DSEX index decreased by 8.14 percent to 6,207 points compared to the previous year. The next year, the index increased by only 64 percent to 6,247 points. On January 1 of this year, the DSEX index was at 6,243 points. Last Thursday, the index stood at 5,355 points.
In 2022, the average daily transaction on DSE was Tk 960 crore, which is 45 percent less than the previous year. In 2023, the average daily transaction on the exchange decreased by 40 percent to Tk 578 crore. There was some upward trend in the transaction and index at the beginning of this year, but since last March, the transaction volume has been decreasing gradually with few exceptions.
Officials said that since the Russia-Ukraine war, there has been a recession in the capital market for more than two years. During one and a half years, due to the floor price, the transaction in the market was stopped. On the one hand, due to reduced transactions, the companies have to count losses. On the other hand, brokerage houses have to pay taxes even if they make losses. Due to this, the institutions are under more financial pressure. In this situation, it is reasonable to change the existing structure and tax those companies that can make a profit. On the other hand, those who are suffering losses should be relieved of their debts.
