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Stock market investors must know risks: Kamal

'Inflation still under control'


FE REPORT | October 28, 2021 00:00:00


A H M Mustafa Kamal

Finance Minister A H M Mustafa Kamal on Wednesday advised the people to be cautious while investing in stocks because of the fluctuating nature of the capital market.

The government cannot be held responsible, if investors fail to play by the rules and suffer loss, he added.

"The market goes up and down every day. So it's a very sensitive area. We have to keep it in mind," the minister told the newsmen after a virtual meeting of the Cabinet Committee on Government Purchase on Wednesday.

Mr Kamal made the remarks when his attention was drawn to the free fall of share prices in the last few days. Small investors staged protest in front of the Dhaka Stock Exchange building at Motijheel on Monday amid steep fall of share prices.

"When you come to make profit, you have to keep in mind the risk factors also. If you come to make huge profit only, that may not happen," said the minister.

He opined that the government's responsibility is to provide required support to the stock market, and the government has been doing that.

The minister also said the pillar of a stock market is economy of the country. The stock market becomes strong when the economy becomes strong. There is no other method to boost the market.

"Everyone should come to the market knowing the pros and cons," he said, adding that people who are involved in the market know about these. They have come to the market knowing all these.

The government is doing whatever it needs to do, and the market is given budgetary support for its betterment.

On a question about offloading shares of good state-owned companies in the share market, Mr Kamal replied that a move had been taken to this regard, but it did not advance because of many reasons.

"We took such a decision to support the market, as the market goes down in absence of good shares."

But latter it was found that adequate shares were there, and their prices were good. So, the shares were not offloaded.

Asked about the US dollar price hike and its impact on inflation, the minister opined that inflation remained within the limit that the government had presumed.

"Overall inflation has not increased," Mr Kamal said, adding that the government constantly reviews the rate.

He agreed that the prices of food grains are increasing along with the prices of fuel oils.

The minister further said the dollar price is not fixed, and its ups and downs depend on supply and demand. "When demand increases and supply scarcity creates, the price goes up."

Regarding a recent recommendation of the International Monetary Fund (IMF) on market-based intervention of dollar price, the minister mentioned that presently the intervention is being done like in the past.

He opined that the IMF can give suggestion as a development partner, but it cannot instruct the government what to do or not to do.

In some countries the currency rate is fixed, which is not same in the case of Bangladesh, he added.

The purchase committee meeting approved five proposals, including procurement of fertilisers from Qatar, Saudi Arabia and Karnaphuli Fertiliser Company Limited, along with buying two helicopters from Russia.

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