Capitalization fell by Tk 22,000 crore in a week
The common investor is the scapegoat of the internal crisis of the capital market regulator Bangladesh Securities and Exchange Commission (BSEC). The losses are increasing day by day. Many are selling shares at a loss. In the last seven months, 52,000 investors have emptied their portfolios by selling all the shares in their accounts at a loss.
Most of the market participants do not trust the current leadership of BSEC. LankaBangla Securities, the leading brokerage house in the country’s stock market, conducted this survey called ‘Bangladesh Capital Market Sentiment Survey-2025’. This information was recently revealed in the results of this survey. In such a situation, the conflict between the chairman and commissioners and the employees of the commission has come to light. This has further exacerbated the crisis of trust among domestic and foreign investors.
The chairman and members of the commission are in a face-to-face situation with the officers and employees of BSEC. The officials and employees are on strike demanding the resignation of the commission’s chairman and members, claiming that they are incompetent and inefficient. They demand that skilled and qualified people be appointed to the commission, excluding the commission led by Khandaker Rashed Maqsood. Later, at 3 pm on Thursday, the chairman came to his office under tight security and said that the commission will not bow to any unfair pressure. The commission’s stance against corruption will be stronger in the future. Then, when attention was drawn to this issue, Financial Advisor Dr. Salehuddin Ahmed said, “I have nothing to do with that. The BSEC chairman is there, he will see to it. He has been given all the responsibilities.” Investors’ disappointment increased further with such statements by the government. They said that the country’s stock market is basically without guardians now. An investor named Zakiul Ahsan said that investors are the scapegoats for the whims of the regulatory body. Along with investors, the Bangladesh Merchant Bankers Association (BMBA) and the stock brokers’ organization DSE Brokers Association of Bangladesh (DBA) have expressed concern. At the same time, the two organizations have also sought a quick solution to the issue.
Experts said that no one is paying attention to solving the main problems of the market. When the one who sits in the chair, he is busy implementing his own agenda. Year after year, no good company is being listed in the stock market. Major questions are being raised about the quality and transparency of the companies that are being listed. There is manipulation in the stock market but no measures are being taken to prevent manipulation from a responsible level. Although government companies are considered relatively good stocks, in the last two years, government loans have been converted into shares in several government companies without any acceptable process. This has reduced the earnings per share of these companies. Due to the lack of good governance, investors have lost confidence in this market and they are leaving the market.
The market’s throat is cut off by margin loans. Arbitrary margin loans are also creating a major crisis in the stock market. When the stock market is rising, margin lending enhances the upward trend, but it has an even greater negative impact during a decline. Investors who bought shares on margin lending during a decline in prices lose their entire investment in a ‘force sale’. Although margin lending has been called for control for many years, no effective measures have been taken to control it.
Now, a situation has arisen where many investors are selling shares at a loss and withdrawing their investments. Although investors can sell their shares and exit, brokerage houses and related institutions are unable to close their businesses. As the stock market transactions are gradually decreasing, all institutions have lost business. Brokerage house officials also expressed their anger that they have to sell their invested shares to pay salaries and allowances to their employees in order to somehow sustain the institution.
In such a situation, the conflict between the officials and the commission formed in the BSEC is pushing the market into a more difficult situation. In addition to the lack of internal governance in the stock market, they believe that the overall economic situation of the country and the crisis in the financial market are also deepening the ongoing stock market crisis.
Market situation: Trading ended last week with a decline in the indices on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). During the period under discussion, the market capitalization on the DSE and CSE decreased by 21,960 crore 79 lakh taka. Over the week, the main index of the DSE, DSEX, decreased by 43.34 points or 0.83 percent to 5,203 points. On the last working day of the outgoing week, the market capitalization stood at 6,82,147 crore 54 lakh taka. On the last working day of the previous week, the market capitalization of the DSE was 6,95,364 crore 20 lakh taka. That is, the market capital decreased by 13,216 crore 66 lakh taka over the week.
The market capitalization of the other capital market, Chittagong Stock Exchange (CSE), stood at Tk 6,96,469.11 crore in the outgoing week. And on the last working day of the previous week, the market capitalization of CSE was Tk 7,52,213.25 crore. The market capitalization decreased by Tk 8,744.13 crore in the week.
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