Bangladesh:SEC’s outgoing chief stresses more textile companies’ listing

The outgoing chairman of Securities and Exchange Commission yesterday stressed more textile companies’ listing to get a better reflection of the country’s real economy in the stock market.

“The real economy is not reflected in our stock market, as representation of textile sector, which is the most vibrant section of the economy, is very low,” Faruq Ahmad Siddiqi said in his farewell address at Dhaka Stock Exchange.

He also pointed to the scarcity of industrial sector shares in the stock market.

Presently, textile shares occupy only 2.69 percent of the total market capitalisation on the premier bourse, according to DSE statistics. The industrial or manufacturing sector shares account for around 20 percent of the total market capitalisation.

The bank shares occupy the highest 38.39 percent of the DSE’s market capitalisation, which represents the aggregate value of a company or stock.

Yesterday was the last working day for Siddiqi, the career bureaucrat who joined the SEC as chairman on March 16, 2006 on a three-year term.

Commenting on the highest-ever turnover, which was recorded yesterday, Siddiqi said the day is not too far when the DSE will witness a Tk 1,000 crore turnover.

He said only one percent of household savings is invested in the stock market. “It means the market has the opportunity to be more bigger. Just it needs to ensure the supply of shares.”

Emphasising investors’ awareness programme by market stakeholders, he said the stock market is not a place for gambling. “It’s a place for investment.”

The outgoing chairman also requested the journalists, who regularly write on stock market, to play a responsible role through their news writing to develop the market further.

The DSE members at the farewell said the Bangladesh stock market has witnessed tremendous growth during Siddiqi’s tenure. They said Siddiqi acted as a facilitator not as a regulator.

The market capitalisation to GDP ratio was less than 8 percent in 2006, which stood around 20 percent this year.

DSE President Rakibur Rahman, Senior Vice President Saiful Islam, Vice President Shakil Rizvi, former senior vice-president Ahmad Rashid Lali, members Anwar Hossain and Shahudul Haque Bulbul and Chief Executive Officer AFM Shariful Islam spoke on the occasion.

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Source:The Daily Star,Dhaka