Mustafa wonders why economic growth not reflected in share market

Staff Correspondent | Published: 00:00, Jul 19,2019

 
 

Finance minister AHM Mustafa Kamal on Thursday said that they were trying to put the country’s share market on a strong footing and could not understand why the country’s economic progress was not reflected in the stock market.

‘The country’s economic progress lauded globally should have an impact on the stock market,’ he said while talking to reporters at his secretariat office in Dhaka.

His comments came against the backdrop of Dhaka stocks crash-landing to a 30-month low on July 16 as panic-stricken investors continued selling shares over People’s Leasing and Financial Services liquidation move.

Mustafa Kamal, who arrived in the capital from a fortnight overseas tour on Wednesday, said the number of small-scale investors at the country’s stock market was high compared with the number of large investors.

The number should be balanced for achieving vibrancy in the market, he said.

He, however, said there was presently no much volatility at the share market.

Since ups and downs are common at the share market globally, Mustafa Kamal said long-term investors would never be losers.

He said they had already given incentives for the share market investors in the budget.

A number of taxes from the dividend income were withdrawn while the ceiling on tax rebate was raised to Tk 50,000 from Tk 25,000.

He said that they still needed to work on the share market as thousands of people were engaged in stock business.

Mustafa Kamal also focused on the others issues like national budget and former BASIC Bank chairman Sheikh Abdul Hye Bacchu.

He said they were mulling over holding discussion with stakeholders to review the implementation of budget.

Responsibility for the scams occurred before his tenure should not fall on him, he said as he was answering to a question how the issue of Bacchu would be addressed.

The former BASIC Bank chairman has been a prime suspect of distributing shady loans worth over Tk 6,000 crore during his tenure between 2009 and 2014 that almost pushed the once profit-making state-owned bank into bankruptcy.

But the Anti-Corruption Commission is yet to bring any specific charge against Bacchu.

Mustafa Kamal succeeded AMA Muhith as finance minister in January this year.     

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