When a country showcases its potential to attract investors, it should not forget to include its equity market
The Bangladesh Investment Summit 2025, organised by the government earlier this month, has been the topic of a lot of conversations amongst local and foreign investors.
However, stock market stakeholders believe that addressing the bourse’s issues at the summit could have had a greater impact.
The Bangladesh Investment Development Authority (Bida) claims that the summit was focused on primary investors, reasoning that the investment criteria of secondary investors are different, which is why they were not included in the event.
However, this notion brushes aside the fact that the stock market is an important component of an economy, offering fundraising options and exit opportunities for entrepreneurs.
Moreover, an economy solely dependent on bank loan-based financing cannot develop beyond a certain point, which is why the stock market bears mammoth importance, according to stakeholders in the stock market.
When a country showcases its potential to attract investors, it should not forget to include its equity market.
Although the stock market is not in tune with the country’s economic development, it can play a crucial role after due reforms, according to Minhaz Mannan Emon, a director of the Dhaka Stock Exchange.
According to the investment authority, hundreds of foreign investors were present at the investment summit. Entrepreneurs and economists are praising Bida’s efforts in creating hype amongst investors.
However, there was no dedicated session on the stock market to present its current situation and showcase opportunities, he said.
Despite many criticisms, the Bangladesh stock market still offers shares of quite a few good companies. At the same time, entrepreneurs can raise funds from the market, Emon added.
Once, the Bangladesh Securities and Exchange Commission (BSEC) organised roadshows to attract investors, which drew a lot of criticism. Later, Bida took part in roadshows in several countries, he added.
It is not the task of the BSEC alone to organise roadshows or investment summits. So, Bida should have included a session dedicated to stock market investors, said Emon.
Organising an investment summit devoid of the stock market proves again that it is not in sync with the country’s economic growth, and neither is the government paying proper attention, he said.
The summit’s agenda was tailored to highlight sectors with immediate investment opportunities and growth potential, he said.
Saiful Islam, president of the DSE Brokers Association (DBA), echoed those sentiments.
The stock market is an important part of the economy, and it provides opportunities to offload shares. Yet, it could not secure a place in the investment summit, he said.
He believes it will be difficult to draw foreign investment without developing the capital market.
“But we failed to get a slot to inform investors of the market’s potential.”
However, responding to a query at a press briefing after the summit, Chowdhury Ashik Mahmud Bin Harun, executive chairman of Bida, said, “From one point of view, the market capitalisation of the stock market is very low compared to the GDP of Bangladesh. The second thing is that this year’s initial focus was on primary investors.
“On the other hand, the criteria, focus, and due diligence involved in secondary market investments are significantly different. Decisions are taken considering indicators disclosed by the DSE,” he said.
“If we want to target secondary investors, the programme should be independent. If we mix both primary and secondary investors, it will not be fruitful.”