DSE, investors protest Muhith's stockmarket remark
The Dhaka Stock Exchange and small investors yesterday protested the finance minister's comment that the stockmarket is an 'evil market'.
“It's an evil market. I won't comment on it,” said Finance Minister AMA Muhith, on Monday in parliament, during the passage of the supplementary budget for the outgoing fiscal year.
But Muhith did not explain why it is an evil market.
The minister made the comment three days after he proposed the budget for fiscal 2012-13.
Reacting to Muhith's remark, DSE President Rakibur Rahman said: “It seems that the honorable finance minister has grown impatient."
It remains to be seen whether the incentives announced by Muhith for the stockmarket are being implemented, Rahman said.
The stockmarket is a sensitive market, so any negative comment will influence the market negatively, Rahman said.
During his speech, Muhith had also mentioned that there would be no great impact on the economy if he did not give much attention to the stockmarket.
Referring to the observation, the DSE chief commented, "Economic development will never be possible if the stockmarket is ignored."
The DSE chief urged the minister to consider the stockmarket as an alternative source of funds to develop infrastructure and undertake development projects.
Speaking on investments made by banks in the stockmarket, Rahman said the investments are below 2 percent of the banks' liabilities.
Presently, commercial banks are allowed to invest 10 percent of their liabilities, according to Bangladesh Bank directive.
Ahmed Rashid, senior vice-president of DSE, also protested Muhith's comment that he said might transmit bad signals to the economy.
Small investors, under the banner of Bangladesh Share Investors' Association (BSIA), also protested the minister's remark.
They staged a demonstration in front of DSE and shouted slogans against Muhith.
Mizanur Rashid Chowdhury, president of BSIA, said: “The minister's comment has upset us, as he is our guardian.”
The Daily Star/Bangladesh/ 13th June 2012