No decision on resumption of trading from May 10

Although the board of directors of the Dhaka Stock Exchange (DSE) took a policy decision to start trading in the stock market from May 10, the authorities concerned are yet to give a final nod in this regard.

DSE was to send a letter to the Bangladesh Securities and Exchange Commission (BSEC), but no letter reached the commission till Monday noon.

DSE sources said they are ready to launch trading anytime if the government wants.

The board of directors of DSE, the country's main stock exchange, took a policy decision to launch trading in the stock market at an unofficial board meeting held online on Thursday, said DSE sources.

If the coronavirus situation does not deteriorate further, trading activities can start from May 10, the meeting decided.

A DSE director, who was present at the meeting, said the stock market is the main source of income for millions of people.

However, due to the government-announced lockdown caused by coronavirus pandemic, the market has been closed since March 26. As a result, brokerage houses and small investors are the most affected by the closure of the trading.

These companies have no income as the trading is closed, but they have to pay salaries to their employees, he said.  

On the other hand, the director said, small investors are suffering from the financial crisis since the trading is closed due to the lockdown. 

In addition, mistrust is being created among foreign investors due to the closure of transactions.

Taking all these into consideration, a policy decision was taken to launch trading, the DSE director added.

In this regard, Minhaz Mannan Emon, one of the directors of DSE, told The Business Post that it is not easy to start trading in the stock market due to holidays announced by the government.

DSE took a decision keeping in mind the needs of investors and stakeholders, he said, adding that trading can start from the May 10 if the government allows.

Asked, BSEC spokesperson and Executive Director Saifur Rahman said, "The managing director of DSE informed me about the matter over the phone."

“They said they would submit a letter, but we have not yet received any letter in this regard,” he said.

After receiving the document, he said, BSEC would forward the letter to the concerned government authorities for permission.  

He further said that the issue of launching trading in the stock market is basically a decision of the BSEC itself.

During the ongoing holidays, some sectors have been reopened as per decision of the government.

Though the stock market does not fall into the emergency services, we will act as per the decision of the government, he added.

Capital market expert Professor Abu Ahmed said, "Even though there is a general holiday all over the country, banking activities are limited."

Since the stock market is intimately involved in banking activities, trading in the stock market can be initiated in line with the bank's transaction time, he opined.  

However, investors do not need to go to the brokerage houses now even if the trading is launched, he pointed out.

Instead, he advised trading shares online at home.

/sr/at