FE Report (January 23, 2011)
In a desperate bid to restore the investors' confidence in the jittery share market the finance minister is going to sit with various stakeholders including the SEC, the DSE, brokerage firms, and merchant bankers today (Sunday).
"The stakeholders have been called to attend the meeting to discuss the ways for overcoming the current crisis, and to submit proposals on restoring confidence among the investor," said a high official of finance ministry.
"Finance ministry has realised that without the institutional investors' intervention confidence cannot be restored in the capital market," he added.
According to a source in the DSE, the premium bourse's authority is going to submit a set of proposals to restore the general investors' confidence.
The proposals will include withdrawal of the recently-introduced index circuit breaker system, and ensuring the institutional investors' participation in the market.
"Many of the scripts have seen major correction during the last one month. With their corrected prices shares of many companies have now come to an attractive level to buy. So it is very natural that there will be plenty of buyers when the market opens next time," said a director of the DSE board.
He said the market needs to follow its own course, and imposing circuit breaker can not be a solution. He also said, "If you stop trading, how will the buyers offer price to buy shares?"
Earlier on Friday, Finance Minister Abul Maal Abdul Muhith admitted that some improper steps, taken by the government and the securities regulator, were responsible for the market's collapse.
He said restoring confidence among the general investors is the utmost priority of the government. Immediate steps are needed to stabilise the capital market.
"The stakeholders have been called to attend the meeting to discuss the ways for overcoming the current crisis, and to submit proposals on restoring confidence among the investor," said a high official of finance ministry.
"Finance ministry has realised that without the institutional investors' intervention confidence cannot be restored in the capital market," he added.
According to a source in the DSE, the premium bourse's authority is going to submit a set of proposals to restore the general investors' confidence.
The proposals will include withdrawal of the recently-introduced index circuit breaker system, and ensuring the institutional investors' participation in the market.
"Many of the scripts have seen major correction during the last one month. With their corrected prices shares of many companies have now come to an attractive level to buy. So it is very natural that there will be plenty of buyers when the market opens next time," said a director of the DSE board.
He said the market needs to follow its own course, and imposing circuit breaker can not be a solution. He also said, "If you stop trading, how will the buyers offer price to buy shares?"
Earlier on Friday, Finance Minister Abul Maal Abdul Muhith admitted that some improper steps, taken by the government and the securities regulator, were responsible for the market's collapse.
He said restoring confidence among the general investors is the utmost priority of the government. Immediate steps are needed to stabilise the capital market.
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