Thursday, 23 September, 2021

Encouraging gains in stock market

Encouraging gains in stock market

The stock market is where investors connect to buy and sell investments, most commonly, stocks, which are shares of ownership in a company.A vibrant stock market plays a crucial role in promoting the growth and development of the economy as well as the country’s industrialisation. It largely depends on domestic savings and the inflow of foreign capital to thrive. But, because of coronavirus and some other reasons, the country’s economic growth did not accelerate as per previous record.What is most shocking is that the stock market flopped in different times hindering capital accumulation, the essential component of capital market development.

However, the government did not stop for a single moment; rather it was relentlessly working for development of the capital market as an institution. It has adopted timely measures to develop the market accordingly. While announcing the budget, the finance minister allowed whitening the black money. At that time, critics criticised the government decision. But, now, it has yielded a positive result. Investment of a portion of black money has created a rush in the stock market. The latest development has improved the confidence in the stock market and the investors have been flocking there in greater numbers.

Moreover, small investors have returned back to stocks for low deposit rates in banks due to their low interests. Some decisions of Bangladesh Securities and Exchange Commission (BSEC) have also encouraged them to invest in the capital markets, pushing up the index to a considerable extent.

As per a directive issued by the BSEC, the listed companies have initiated moves to transfer unpaid or unclaimed dividends and non-refunded IPO subscription funds to the capital market stabilisation fund. For almost two months in a row, the share price of most of the companies in this sector has turned around. The strong gains of the stock market should have to be maintained in the coming days also. As to why, the authorities concerned should do the needful to preserve the interests of the investors. It is essential for steady growth of the national economy.