85% traders don’t have minimum investment knowledge: Survey

About 85 per cent of respondents said a majority of 84.8 percent of the respondent feel most of the traders do not have the minimum financial qualification to take a knowledge-based investment decision.

The survey, conducted by LankaBangla Securities, one of the top brokerage firms, looked at investors’ sentiment on the Bangladesh capital market sentiment. It received 100 responses from different people on nine questions.

This is online survey conducted from January 1, 2022, to February 7, 2022.

More than 44 per cent of the participants replied to a question how they would rate the corporate governance of local companies in 2021 which they said corporate governance of local companies in 2021 was below average followed by 32.3 percent of the participant feeling it was average

While 79.6 percent of the participants feel that introduction of internet trading has boosted transaction volume in the stock market.

And 15.2 per cent of the respondents say the investors take most of the trading decisions based on their return requirement and risk appetite.

The survey showed 53.8 per cent of participants feel that the level of integrity in the local capital market was moderate in the year 2021 followed by 23.7 percent who think it was below average.

And 57 per cent of participants feel that the integrity of the market will be about the same in 2022.

Around 36.3 percent are in favor of improved transparency of financial reporting and other corporate disclosure which they feel is most needed to help improve investors’ trust and market integrity in 2022.

About a question related to the regulator’s limitations, 63 per cent of the respondents replied that BSEC still has capacity constraints as a regulator. And 17.40 per cent of participants did not make any comments about the question.

Of the respondents, 0.8 per cent was from foreign investors, 3 per cent from investment banks, 3.5 per cent from organizations’ MDs and CEOs, 30 per cent from retail stock trading, 20 per cent from service holders, 29 per cent from stock trading executives and 6.8 per cent from students.