Our Managing Director, Mr. Md. Ashequr Rahman's article on the The Business Standard. This is Part 1 of the series.
During this pandemic, central banks from around the world, including ours, have taken massive steps to ensure liquidity in the money markets. With the stock market closed, I will argue, certain liquidity was taken off the table. This is the first part of a two-part series
In the beginning of January 2020, reports from China started coming out of a new virus infecting people at an alarming rate. Initially it was mostly touted as something similar to a new strain of influenza with very low mortality rates.
Fast forward to March 2020 and more than half the world has gone into an unprecedented lockdown. The general populous was forced to learn new terminologies such as social distancing, flatten the curve, pandemic, PPE, frontline workers etc.
Our Chairman, the honorable Mr. Md. Rakibur Rahman, gives his remarks regarding the opening of the Stock Market after 2 months. The Stock Market was closed for two months due to Government lockdown over Covid-19. Our Chairman has been instrumental in reopening the Stock Market as he has been lobbying from the first day of closure.
Our Chairman, the honorable Mr. Md. Rakibur Rahman, making an open call to the regulators to allow the temporary suspension of interest on margin accounts since the Stock Markets have been closed for 2 months due to Government enforced shutdown.
Our Chairman, the honorable Mr. Md. Rakibur Rahman, speaking to the Daily Star regarding the current status of the equity brokerage industry.
Most stock brokers have been incurring losses for many years owing to low turnover in the market and a lack of product diversity. This led many stock brokers to lay off many of their executives to cut cost during the years while the remuneration of the officials has not increased significantly. The top 100 brokers are logging profits whereas at least 150 stock brokers are incurring loss, according to a top official of a stock broker.
Rakibur Rahman, one of the directors of the Dhaka Stock Exchange (DSE), said many stock brokers are in a tight position and their condition would not improve until the turnover of the stock market rises.
Daily turnover on the DSE averaged Tk 534 crore so far this year, slightly down from Tk 552.03 crore from last year and much lower than Tk 874.83 crore in 2017, data from the bourse’s showed.
“If the stock brokers remain weak, the market will not be strong,” Rahman said, urging the regulator to keep alive the stock brokers by increasing turnover. Rahman, also the managing director of Midway Securities, recommends bringing good stocks to the market and following the rules and regulations strictly to boost the turnover. The stock brokers will face further competition as the regulator is set to open the licencing of brokerage houses after many years.
Mr. Md. Rakibur Rahman, Chairman of Midway Securities Ltd., offering his views on the recent National Budget 2019-20.
"বোনাস ও রিজার্ভে করের সংশোধনী প্রস্তাবকে স্বাগত জানিয়েছেন ঢাকা স্টক এক্সচেঞ্জের (ডিএসই) পরিচালক ও সাবেক প্রেসিডেন্ট মো: রকিবুর রহমান। তিনি এই প্রস্তাবকে পুঁজিবাজারের জন্য যুগান্তকারী হিসেবে অভিহিত করে বলেছেন, এর ফলে বিনিয়োগকারীরা আবার বাজারমুখী হবেন।
রকিবুর রহমান বলেন, এতদিন যেসব অসাধু কোম্পানি বিনিয়োগকারীদেরকে বোনাসের নামে শুধু কাগজ ধরিয়ে দিত, সেগুলো এখন একটু চাপে পড়বে। তারা বিনিয়োগকারীদেরকে নগদ লভ্যাংশ দিতে বাধ্য হবে। কিন্তু ভালো কোম্পানিগুলোর উপর এর কোনো নেতিবাচক প্রভাব পড়বে না।