Focus on listing of more cos with good fundamentals

Capital market experts have called for the listing of more companies with good fundamentals in order to minimise investment risks and enhance the depth of the market.

They also suggested initiating a special move to encourage such companies to go public.

The experts made the call at the inaugural ceremony of the three-day Bangladesh Capital Market Expo-2019 that began at the Bangladesh Shilpakala Academy in the city on Thursday.

Dr Mashiur Rahman, the economic affairs adviser to the Prime Minister, attended the programme as the chief guest.

"The number of well-performing stocks is very limited in the country's stock market. A special initiative is required to bring such companies to the capital market," he said.

The investors would be benefitted much if more companies having good fundamentals have their shares listed on the stock exchanges, he added.

"Many big corporate entities depend on bank loans for their financing needs, but banks have also limitations regarding long-term loans."

Mr Mashiur also said the companies should raise their capital through Initial Public Offering (IPO). "The stock market, not the banks, is the source of long-term financing."

Md Shakil Rizvi, president of the DSE Brokers' Association, said investors should invest in stocks considering their potentials to reduce investment risks.

"An investor may not be able to get good return from his investment made in a company having less potential even after waiting for a long time," said Mr. Rizvi, also a former president of the Dhaka Stock Exchange (DSE).

Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Prof M Khairul Hossain said investors should not be panicked over any rumour.

Ruling out the possibility of making it mandatory for investors to have Tax Identification Numbers (TINs), he said, "The government will talk to us before taking any such measures."

The BSEC chairman also said the market would get a momentum within the next three years as they brought about many reforms in different areas.

"The upcoming small-cap board will open up a new potential for our small and medium companies and the IT companies as well," he added.

Arthosuchak.com, an online news portal, organised the Bangladesh Capital Market Expo-2019.

Shameem Ahsan, president of the Venture Capital and Private Equity Association of Bangladesh, Mohammed Nasir Uddin Chowdhury, president of the Bangladesh Merchant Bankers Association, and Ziaur Rahman, editor of the arthosuchak.com, also spoke at the inaugural ceremony.

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