No need to panic over latest market dip: BSEC chairman

Professor Shibli Rubayat Ul Islam, chairman of the Bangladesh Securities Exchange Commission (BSEC), has said that ongoing volatility in the capital market is not that severe and urged investors not to panic over it.

The chairman of the market regulator in an interview with a private TV channel on Saturday said the Russia-Ukraine war is shaping world trade which is impacting the country’s capital market.

Prof Islam advised investors to be “cautious” rather than panicked over global and domestic issues.

Although the DSEX — the broad-based index of the premier bourse — is sluggish right now, it is still hovering around 6,000 mark, he mentioned and noted that it is not as severe as some may make it to be.

He also attributed the current downbeat market to the liquidity crisis, unstable currency exchange rate and rising inflation.

The wobbly exchange rate has made many foreign investors withdraw their funds from the market, the chairman said, adding that the central bank is finding it hard to manage liquidity because of the weakening value of the taka.

He said that investors and the media should shift their focus away from the secondary market towards primary, private, bond, SME markets and dividends.

The chairman said the market regulator will be strongly monitoring dealer accounts of institutional investors to keep stable liquidity.

When asked, Prof Islam disagreed to suspend IPOs until the market gets stable and said the process is an integral part of bourses and it helps businesses expand.

Prof Islam ended the interview by praising Prime Minister Sheikh Hasina for facilitating the market to grow.

“The PM wants a stable and growing market and provided the bourses with all facilities to this end,” he said.