Industries still shunning capital market: Tamim
Saturday, 28 June 2008

The chief adviser's special assistant M Tamim says industries are still shunning the capital market despite its huge liquidity inflow.

"Industries are still dependant on banks for capital," the special aide said Thursday at a projection meeting on Titas Gas Transmission and Distribution Company ahead of its listing on the capital market, organised by Dhaka Stock Exchange.

The state-owned company is going to offload shares worth Tk 215 crore on the capital market by direct listing. Trading will start on July 2.

Tamim said the government's move to offload Titas shares came to make the capital market more strong.

He however expressed concern over what he said was uncontrolled growth of the market. "Uncontrolled growth creates the collapse of the body."

On Titas's direct listing, the chief adviser's special assistant said it was so far the highest investment in the capital market.

"The listing will create more accountability within the organisation."

Securities and Exchange Commission chairman Faruq Ahmad Siddiqi said the listing came at a time when the market was in need of liquidity.

"As investors took interest in the market, demand and supply have found themselves in a mismatch. So issues are overpriced and the market is facing risks. The listing will ease the problems," he said.

Dhaka Stock Exchange's chief executive Salahuddin Ahmed urged Tamim for arrangements to enlist Bangladesh Petroleum Exploration and Production Company.

"BAPEX cannot run explorations due to a shortage of funds. I would ask the government to take steps so that the company can raise capital from the market."

Power secretary Mohammed Mohsin, DSE president Abdul Haque also spoke.

Comments Add New
Write comment
  We don't publish your mail. See privacy policy.
Please input the anti-spam code that you can read in the image.