Investing in the Stock Market - Interview with CES Director Sajid Amit

The Director of Center for Enterprise and Society (CES), Sajid Amit, shares some invaluable opinion about the share market of Bangladesh, during the recent CES training on Technical Analysis. 

Part 1:

In Part 1 of the interview, he emphasizes how the risky feature of the sector should not be taken lightly by the middle and the lower-middle class to invest in the stock market, without Investor-Literacy and adequate information. The potential of the Stock Market in the economy is undeniable according to him, since investment in real-estate is not a affordable substitute for the citizens. 

Below is Part 1 of the two-part interview:

Part 2:

In Part 2 of the interview, Sajid Amit talks about the characteristic of the Bangladeshi stock market.

He explains capital market efficiency in Bangladesh and in the US explaining how they fall in the spectrum of weak to strong form.

The Director emphasized the value of financial journalism, which was inaccurate previously. So a multi-faceted awareness training program should be designed, including financial journalists, traders and researchers.

Speaking about IPOs, in-comparison with India, the big companies and locally operating MNCs are not listed in our stock market. Along with introducing their IPOs, big banks should also invest.

With these strategies in place, the development in Bangladesh would be quicker than in other countries and the future of Stock market, according to Sajid Amit, looks promising.

Below is Part 2 of the two-part interview:

Apparel sector impacts on recent terrorism

Moody’s: Terror attack has long impact on Bangladesh economy
Global credit-rating agency Moody's Investor Service proposed in a recent analysis about the impact of terrorism that has been plaguing Bangladesh. The agency generally has "political risks", factored into govenrment bond rating calculation and so far the nation's vulnerability has been moderate. This is subject to change in the wake of recent developments.

The Agency, particularly focused on the investor confidence and external payments standing, through diminutive foreign direct investments, especially towards the main forerunner, garments exports. This sector and textile, contribute to over 80% of total export share. Both of these are vital for growth and are stimulated by FDI. 

Overseas investment challenges

FBCCI wants freedom in overseas investment by local entrepreneurs
Investors have been called upon to invest abroad, to eventually utilize and boost our current foreign exchange reserves of US$28 bn. For such, the current account needs to be converted so that investors can invest outside the country.


Further, loan default problems, promotion of corporate governance, proper enforcement of laws and consumer rights and bankruptcy, and promotion of a culture of self control by chambers and  associations as challenging for the private sectors integrity.

More about the fight for transparency and dealing with corruption in the private sector can be found in the news link covering a seminar with the FBCCI, NBR, JICA nad NIS.

Industrial policy helping FDI

Foreign investors to get wider benefits in new industrial policy

A new refreshed Industrial Policy for 2016 is set to contain specific incentives for foreign investors to re-think Bangladesh as a lucrative and investor friendly business oriented economy. One-stop-service, country-specific economic zones, industrial parks, green business incentives will all be made available for foreign investors in a bid to revive the economy to international players.

Investment a target to be achieved

Raising private investment a major challenge: MCCI

To pursue the economic growth target of 7% it is widely known that private investment growth is extremely essential for the country. Currently it is just hovering around 28%, substantially below the target of 35%.

Local and Global investors are interested in their initiatives, given the country backs them up with three things. They are:

• political stability
• easy availability of reasonably priced utilities and infrastructure
• accessible credit at low interest

Since political clout in 2013, investors have been restructuring slow. They have significant complains regarding various processes, which the government needs to address. The agriculture and service sectors are improving, but needs support for sustainability.

Read more in the link to find out how the investment climate is harnessing currently in Bangladesh.

WB Economist speaks for Bangladesh

Bangladesh poised to be the next Asian Tiger

Bangladesh is a country on the "threshold of doing very well", said Kaushik Basu, the chief economist of World Bank who is currently on visit to this country. He also added of the possibility of Bangladesh becoming the "new Asian Tiger". He lauded the progress of several economic indicators namely per capita income, foreign direct investment and foreign exchange reserves; social  indicators are the significant poverty and mortality rate improvements. Mr. Basu furthermore highlighted pathways for improvement: infrastructure, ease of doing business, business ethos and providing training to workers.