Muhith rules out artificial bubble in stock market

Finance Minister AMA Muhith said Thursday the scope of creating artificial bubble in the stock market has almost gone due to various reforms carried out by the government.
"The ups and downs in the stock market always remain. The economy faces trouble when there is a big fall in the market. But the legal reforms carried out recently have almost wiped out the scope of creating artificial bubble in the market," the minister said at a dividend handover ceremony of the Investment Corporation of Bangladesh at the ministry's conference room.
"I can't say that the scope of creating artificial bubble is completely over. It may take some more years," Mr Muhith added.
On the occasion, the ICB chairman and managing director handed over a cheque of Tk 512.578 million to the minister as dividend of the government's share in the ICB.
The government owns 27 per cent or 1,13,90,625 shares of the ICB.
Mr Muhith said there was no stock market in the country in the past. "My personal opinion is it was a fatka (speculative) bazar. Bangladesh has got a stock market now as it has gone through various reforms during the last five years. It needs to be protected."
He said the ICB was formed for the development of stock market. "The ICB has to monitor to keep well the behaviour of the market."
The minister said the stock market is responsible for generating capital. "Here banks do it which is not their responsibility."
Corporation chairman Dr Mojib Uddin Ahamed in the meeting said the ICB has now turned a strong organisation and has been playing due role for economic development of the country.
He said the ICB's profit is increasing every year. "This year we gave additional Tk 60 million as profit to the government compared to previous year."
ICB managing director Md. Fayekuzzaman said the Corporation has taken some measures including product diversification for development of stock market.
He requested the minister to give administrative authority of Tk 9.0 billion stock market refinance scheme to the ICB which is now being administered by the central bank.
He also sought assistance from the government to form a 'market-making fund'.
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