The recent drop in the stock market is due to confidence crisis and standard initial public offer is essential to over the crisis, Dhaka Stock Exchange Brokers' Association (DBA) president Shakil Rizvi has said.
At a press conference at DSE office on Tuesday, Shakil Rizvi demanded that IPOs of quality companies should be approved so that the investors get better dividends and does not lose their money.
He said that the stakeholders put emphasis on the quality IPO to recover confidence over the market.
At the press conference, Bangladesh Merchant Bankers’ Association (BMBA) demanded approval for raising capital through bond to support the market, and bring quality companies in the market to boost investors’ confidence.
The DBA president said: “If good companies did not apply for the IPO, we must look for them and continue our efforts to bring them in the market.”
The DBA also demanded that a copy of draft IPO prospectus of companies should be sent to DBA so that it could detect anomalies and inform the market regulator.
The DBA also urged for approval of scrips netting, opening new branch or booths for brokerage houses and amendment to the book building method.
BMBA president Nasir Uddin Chowdhury requested that the wings of bank and non-bank financial institutions, merchant banks and brokerage houses should be allowed to raise capital through issuing bond.
Nasir also urged the Bangladesh Bank not to include those bonds in their capital market investment exposure limit.
Shakil Rizvi said that the recent drop in the shares of the country was a matter of confidence crisis and standard IPO would solve it.
He said that if the Dhaka Stock Exchange played a strong role, good IPOs would come and DSE must play a strong role in bringing good quality companies to protect investors' interest.
In the last two months, DSEX, the benchmark index of the Dhaka Stock Exchange, shed 482.58 points. During this period, the prime bourse market capitalization lost Tk18329 crore. Yesterday the capitalization stood at Tk397329crore, which was Tk4,15,658 crore on February 3.
On Tuesday, DSE saw the broad index losing 53.48 points. At the end of the day, the index closed red at 5318.75 levels with 1.00% decrease from the previous day while the market turnover declined by 12.46%.
Meanwhile, the Chittagong Stock Exchange's (CSE) All Share Price Index fell by 165 points at closing.
