Although the Investment Corporation of Bangladesh (ICB) is assigned to deliver role help making the capital market stable and dynamic, it is now offloading shares it bought previously. The investment capacity of the interest-bearing ICB has been shrunk as it bought share with high cost loan from various institutions.
Shares worth Tk 638.43 crore have been sold by ICB during last 11 days against buying shares worth Tk 198.48 crore. Shares were bought at 26.7 per cent during the period, but 63.12 per cent were sold by ICB.
“When there is hope of overcoming the epidemic, it is pulling the capital market back by selling shares.” Aminul Haque, a share trader said.
The sale of ICB’s continued shares may not be desirable just when the capital market is on the rise after the Corona epidemic recedes. Instead, the ICB’s responsibility is to increase investment to stabilize the market, but instead it is selling the opposite shares, Mr Haque claimed.
In post-Corona capital markets, transactions have begun to pick up speed with the efforts of stakeholders, including regulators. With the big rise in the price index, there is also a jump in transactions. DSE’s transactions and indices also rose sharply on last couple of weeks.
Sources said that the capital market gained momentum in August after the slowdown in transactions after the opening. The transaction has gained momentum as investors continue to buy new shares. The ICB is selling its shares when investors start coming to the capital market with new investments.
Abul Hossain, MD of the ICB, said at an event on the impact and recovery of coronavirus in the capital market on July 18, “The ICB has been investing since the beginning of the 2010 collapse. It has invested in supporting the stock market without thinking about his own business. However, by 2020, the ICB has lost its investment capacity. He also said that the Prime Minister had promised to increase the investment capacity of the ICB. Now the interest rate on loans taken by the ICB should be reduced to increase the capacity, ”he said, an attempt was made to contact him on Wednesday but he did not pick up the phone.
Former chairman of the Bangladesh Securities and Exchange Commission and former adviser to the caretaker government AB Mirza Azizul Islam said, “The capital market has risen for several days in a row. One reason may be that the market has sold to stabilize. Again other investors have sold to make a profit. There is no reason for it to be unusual. The situation is normal. The capital market is advancing. There is no reason to worry. ”