Although the stock market is a source of long-term financing, it is hampered by various limitations. Local and foreign investors are losing interest in this. As a result, the stock market of the country lags behind the global index in terms of market capitalization. Analysts say that if the overall economy is not stable, investment in the stock market will not increase.
Although the stock market plays an important role in the economy, the country’s capital market is being disrupted due to various irregularities and inefficiencies. Although a well-organized stock market is essential for industrialization and economic development, it is yet to develop.
The ratio of market capitalization to GDP in the country’s stock market is now below 8 percent. In neighboring India, this rate is 120 percent.
According to statistics, the country’s stock market has dropped 5 steps to the 42nd place in the global ranking. The New York Stock Exchange is the first in the world in terms of market capitalization. National Stock Exchange of India, ranked 6th, has a market capitalization of $5.62 trillion. On the other hand, the current market capitalization of Dhaka Stock Exchange is around 6.5 lakh crore rupees. About the stock market situation, BSEC former chairman Farooq Ahmed Siddiqui told the media that if the stability of the country is maintained properly, the economy of Bangladesh will also reach such a level in two to three years. When there will be a lot of investment in the private sector.’Stock brokerage
He said that the size of the market did not increase due to the decrease in the interest of those who collect and provide capital from the share market. The former chairman blames the overall economic instability for this.
Farooq Ahmed Siddiqui said, “Be it domestic capital or foreign capital, why would they want to run after them?” So if there is good governance in Bangladesh, there will be investment, investment will benefit the currency market, the stock market will both benefit.
The stock market of Bangladesh has been stuck in the circle of liquidity crisis for the last 15 years. The country’s stock market index and market capital also fell drastically due to continuous decline. A task force has been formed to eliminate it.
Professor Al Amin, a member of the task force, told the media that we are working to bring those who have been suffering for a long time to a place of trust as soon as possible. He said, the biggest crisis in our stock market is the crisis of confidence. Then there is the liquidity crisis.
Professor Al Amin said that if the accountability of the institutions working in the development and control of the stock market is not ensured, the path to long-term financing does not seem to be smooth.
