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Revitalising capital market

Banks, power cos to make huge investments


Published : 09 Feb 2020 09:02 PM | Updated : 05 Sep 2020 09:54 AM

In a bid to revitalise the country’s nose-dive share market, four state-owned banks and seven power companies have expressed their interest to make further investment.
Finance Minister AHM Mustafa Kamal came up with this announcement at a meeting at Bangladesh Secretariat in the city on Sunday.
The Minister held a crucial meeting with the high officials of state-owned commercial banks, Bangladesh Bank and other stakeholders in order to discuss that how and in what way the capital market can be revitalised.

“The four state-owned commercial banks--Bangladesh Development Bank Limited, Agrani, Janata and Sonali banks will float 25 percent shares in the capital marker,” said Finance Minister Mustafa Kamal.

However, he added that Sonali Bank needs some time to float share in the capital market while Rupali Bank’s share will be increased from 10 percent to 25 percent.

Bangladesh Bank Governor Fazle Kabir, Finance Division Secretary Abdur Rauf Talukdar and Financial Institution Division Secretary M Ashadul Islam and M Khairul Hossain, Chairman Bangladesh Securities and Exchange Commission and chairmen and directors of all state-owned banks were present among others.

Finance Minister said, “We are going to introduce another five government companies to be listed in the capital market soon to strengthen the capital market.”

“Besides,” the Minister said, “We will increase shares of 2 government companies which have already been listed in the stock market.
The five new government companies and two existing companies are North West Power Generation Company, Electricity Generation Company of Bangladesh Limited (EGCB), Ashuganj Power Station Company Limited, B-R Powergen Limited (BRPL), Gas Transmission Company Limited, Titas Gas Transmission and Distribution Company Limited (TGTDCL) and Power Grid Company of Bangladesh.

AHM Mustafa Kamal said, “We need more institutional investment to build strong capital market.”
He said, “The government wants to revive capital market as early as possible. That is why, we will take all market supportive measures within this year.”

Earlier, Prime Minister gave six-point directives including listing more multinational companies, profitable state-owned enterprises (SoEs) for strengthening the stock market by bring back investors’ confidence while attending a meeting with Khairul Hossain, the chairman of Bangladesh Securities and Exchange Commission and government policymakers.
They discussed introducing many more plans, including short- and long-term, to build strong capital market.
The stock market recently has been witnessing a downward trend in the last two years. As a result, the investors are gradually losing confidence to inject new funds into the market.