‘Speculators’ creating share market chaos’

Finance Minister AMA Muhith on Sunday once again blamed ‘speculators’ for destabilising the capital market.
Speaking to journalists after a meeting on ways to improve the capital market, he said ‘speculators’ were creating chaos in the market.
Journalists asked him whether he was uneasy with the current share market condition at the end of the fourth year of the government’s five-year tenure.
“I don’t have any uneasiness about this. Capital market does not have big relations with economy. Capital market is the place to build capital, fluctuation in index in this market is immaterial,” Muhith replied.
He believes the market became ‘stronger’ during the four years of the government in terms of raising capital.
Asked whether people will invest in the market if their trust is not won, Muhith said, “Investors are coming. It is those speculators who are creating the chaos.”
Muhith had dubbed investors ‘speculators’ as the capital market became unstable in 2011, drawing flak.
His comment using the word ‘rubbish’ about the market also drew came in for scathing criticism.
He admitted his comment on at least one occasion was not right when he, after the Hall-Mark loan scam was revealed, said the money stolen away through illegal means was not a big deal given the size of the economy.
More recently, his comment that the decision of the BNP-led 18-Party opposition alliance to enforce nationwide daylong shutdown protesting fuel oil price hike was the one of a ‘lunatic’ threw him into all sorts of discussion once again.
According to Muhith, the meeting discussed issues relating to disbursement of the second phase of $300 million the Asian Development Bank had pledged for improving the share market conditions.
“What were supposed to have been done have been done in the first phase.”
He said the ADB asked the government for amending the Bank Companies Act and issues relating to demutualisation.
“The Bank Companies Act will be placed in the next parliament session. Work relating to demutualisation is going on.”
Asked what would be the investment limit for banks in the share market, Muhith said, “The law will be amended incorporating the provision of allowing banks to invest 40 percent of its capital. The limit will be reduced to 25 percent in the next three years.”
Currently, the banks can invest 10 percent of its capital in the market.
“The current investment limit is good enough,” Muhith said.
(Source: bdnews24.com)

Leave a Reply