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Stock market across the world is a very sensitive place. Increase or decrease in prices of stocks is a natural process of this market. There is a need to have the definite rules for the parameter of price. Let's take for example the fact that if the price of the product increases substantially, there should be the reason for its decline too.
The stock market in Bangladesh is well-organised now compared to any time in the past. After the collapse of the country's stock market in 1996 and 2010, various policies have been adopted for market development. Demutuali-sation and Financial Reporting Act are two important propositions among a lot of reform initiatives. Sensitive market affects other sectors also. Hence the policymakers here have to identify that information and it is good not to provide some information at the field level.
Currently, the issue of strategic partnership is affecting the market in the form of a slowdown. It is absolutely unusual for the market to be depressed on this issue.
Bangladesh has good relations with both the big countries namely India and China. So the issue as to which country should be the partner of the Bangladesh stock market is with the regulatory bodies to decide. The market is going on in a demutualised regulatory platform. There will be more new initiatives related to this. So there is no reason to worry about it at all.
It is found that the market behaves unusually ahead of monetary policy and budget, and also during political unrest.
Of late, there was a marked decline in the market in the beginning of February 2018. For instance, the DSE Prime Index witnessed a single-day decline of 133 points. It was the highest single-day fall. Market experts think this happened due to a rumour.
It is high time to work on market governance. Bangladesh's economy is now well positioned. The country hopes to attain middle-income status by 2021 and developed country status by 2041. In this situation, share market development is a must.
Due to demutualisation, Bangladesh is now on the international stock market platform. In this context, regulators have to work on two issues. First, enhancing transparency and accountability inside the market and second, promoting financial literacy and training for building stakeholders awareness.
Last but not least, there should be a significant control on the board regardless of the strategic partner. It must be consistent with the Global Exchange.
Md. Toufique Hossain is a development professional.