Stock market shows recovery as investors back: DSE chairman

Dhaka Stock Exchange chairman Mominul Islam speaking at a discussion at the Dhaka Chamber of Commerce and Industry (DCCI) office on the development of Bangladesh’s capital market on Tuesday.

Chairman of the Dhaka Stock Exchange (DSE) Mominul Islam on Tuesday described the country’s stock market outlook as encouraging, saying that the market has begun to recover as investors are gradually returning.

Mominul made the remarks during a discussion at the Dhaka Chamber of Commerce and Industry (DCCI) office on the development of Bangladesh’s capital market, SME company listings, investor confidence, the introduction of new financial products and financing for startups and small and medium enterprises (SMEs).

He praised the interim government for taking unprecedented steps to support the capital market.

Measures in the current budget, including reductions in turnover tax, merchant bank taxes and adjustments in corporate tax rates between listed and unlisted companies, have strengthened market activity, he said.

Mominul also noted that the Bangladesh Securities and Exchange Commission (BSEC) has become more proactive, restoring market discipline through initiatives such as resolving issues related to CC account interest and reducing BO account renewal fees.

These measures, along with limiting unwarranted interventions, have boosted investor confidence.

“Investors are coming back to the market, and institutional investors are becoming more active. We are also digitizing the IPO process and working to bring strong companies to the market quickly through a green channel,” Mominul said.

He called for closer collaboration between DSE and DCCI to enhance economic growth and strengthen the stock market in a sustainable way, emphasizing the need to develop the bond market alongside the equity market.

During the session, DCCI President Taskeen Ahmed stressed the importance of increasing SME participation in the capital market and boosting investor confidence.

He suggested both long-term and short-term strategies, including revising the dual taxation system and diversifying financial products.

Highlighting the significant contribution of SMEs to the economy, Taskeen noted that only 360 out of more than 200,000 companies in RJSC are listed, emphasizing the need for greater focus on listing government and multinational companies as well.

“We need to enhance SME participation in the stock market and focus on building investor confidence. SMEs contribute significantly to the economy, and the capital market has enormous potential to attract investment from these enterprises,” Taskeen said.

Taskeen also pointed out that Bangladesh’s market capitalization to GDP ratio remains below 20 percent, compared with 40–50 percent in similar economies.

He highlighted the potential of the SME sector, which constitutes around 75 percent of the private sector, noting that the capital market could attract substantial investment from these enterprises.

Both DSE and DCCI agreed to organise separate programs in the near future to facilitate SME listings on the SME Board and the Alternative Trading Board (ATB), further strengthening the market’s role in the country’s economic development. - UNB