Bangladesh Stock Market eyes good potential in 2009
Says SEC Chairman in CSE’s Seminar at Cox’s Bazar

Cox’s Bazar, January 24, 2009: Chittagong Stock Exchange and one of its leading brokers Meenhar Securities Ltd. have jointly organized a seminar today at Cox’s Bazar for the local investors titled “Bangladesh Stock Market Challenges and Opportunities”. The seminar has organized on the occasion of CSE Members’ Conference 2009 held at Cox’s Bazar on 23rd January, 2009 at a local hotel where all the members from Dhaka, Chittagong and Sylhet were assembled to uphold fellowship among the CSE Members.

Chairman Faruq Ahmad Siddiqi, Executive Director. Anwarul Kabir Bhuiyan were present from Securities and Exchange Commission. Prof Abu Ahmed, Pro Vice Chancellor of South East University and Director of CSE presented key note paper on the seminar topic. President Nasiruddin Ahmed Chowdhury, Former President and Chairman Meenhar Securities Ltd. Habibullah Khan, Vice Presidents Fakhor Uddin Ali Ahmed, Directors ASM Shahidullah, Bijan Chokraborty, MKM Mohiuddin, Mohammad Fakhruddin, Md. Siddiqur Rahman, Tareq Kamal, Md. Sarwar-E-Alam were present from Chittagong Stock Exchange.

SEC Chairman as a Chief Guest while addressing his remarks said, “The new government has taken seriously the developments of the stock market, a good potential ahead Bangladesh Stock Market.” The SEC Chief hoped that the stock market see further growth in the near future with off-loading of shares from government-owned entities under different sectors and also from telecommunication sector. He called upon the stock exchanges and other market players to create enabling environment so that big non-listed companies go public to end the growing mismatch between demand and supply of shares. The SEC chairman in his address said Meenhar Securities Ltd. and other brokers will create a healthy competition in the securities market. Terming the year 2008 as a golden period of securities market, he said the supply of quality shares should be ensured to sustain the growing trends of the market. He said still the size of Bangladesh market is small in compare with other countries and 62 percent shares of the total market is owned by a few companies. He said with the entry of telecommunication shares and other government-owned company shares in the securities market, the depth will be enhanced within current year. He called upon the non-listed companies to float shares in the securities market. He said with the growth of the securities market, country’s job market will also be expanded.

Professor Abu Ahmed, Pro-Vice Chancellor of East West University while presenting his keynote paper said, “the country could arrange adequate funds from ever expanding capital market for implementing big projects without borrowing money accepting unfavourable conditions from the donars.” He opined that Bangladesh does not need to privatise the public sector organisations for the purposes but could easily benefit immensely by only off-loading certain portion of their shares through the capital market. Prof Abu Ahmed said the country’s growing capital market could be an ideal and alternative source for organising necessary funds for implementing huge development projects rather than depending on foreign donors aid agencies. In this context, he said, we have scopes to pump up adequate money from the capital market to execute the project to turn the existing Dhaka-Chittagong highway into 4-lanes and make Bangladesh Biman profitable by purchasing required aircrafts for its fleet instead of borrowing money from foreign sources with high interest and tougher conditions.
CSE President in his speech said that Chittagong Stock Exchange has paved the way for spreading its trading network at the divisional level of the country to reach the investment facility at the remote areas. Local Investors in Cox’s Bazar has got ample opportunity in mobilizing their hard earned money to Share Market and able to change their social life. He said, “A thorough knowledge on the stock market can ensure participation of more and more investors in the securities market and there is no alternative of a vibrant capital market to develop the country’s economy through spontaneous participation of investors.” He said, “It is possible to establish big Industrial units through small capital owned by small investors of the securities market. Besides capital gain is also possible when the stock prices rise.”

Mr. Habibullah Khan former President of CSE underscored the need for appointing Financial Analysts to ensure transparency and financial security for the investors in the securities market. He underscored the need for compliance of rules and regulations of the securities market through strict monitoring and surveillance. He said Securities and Exchange Commission should immediately withdraw the new guideline for opening a branch office by a member, due to this new rule many members although they have capability to flourish our stock market in different remote areas but they failed to do so.

Mr. Fakhor Uddin Ali Ahmed Vice President of CSE has made vote of thanks while Mr. AB Siddique addressed of welcome in the seminar.

AKM Shahroze Alam
Deputy Manager
Corporate Development