Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 115 Fri. September 17, 2004  
   
Business


Stocks riding on interest rate cut on savings instruments
CSE president tells investors


Interest rate cut on different types of government savings instruments has generated renewed interest among small investors who are now switching to capital market, said Chittagong Stock Exchange (CSE) President Habibullah Khan.

He said such rate cuts coupled with reduction of interest rate on deposits of commercial banks have helped spur investments in primary and secondary markets.

Khan made the observation while addressing a gathering of Trust Bank clients who were participating in a CSE seminar on "Investors' awareness programme" at CSE Conference Hall, Chittagong yesterday.

The CSE president said: "Such a good turnout of Trust Bank clients despite the inclement weather reflects investors' interest in stock trading."

He said CSE-30 index comprising blue-chip stocks, posted a 490-point gain in the last month from 2181.13 points on August 3 to 2671.62 points on September 2.

According to a press statement, the CSE president also cautioned Trust Bank clients to be very careful prior to investing as stock trading involves both risk and good return. "Therefore, clients should look into the fundamentals of a company prior to making an investment decision."

He said there is a bright scope for increasing capital market's contribution to GDP through a consistent policy.

CSE president said netting system helps in generating market liquidity. "But unfortunately we see a shift in policy with the Securities and Exchange Commission deciding to withdraw netting facility from CSE, depriving investors from access to market liquidity."

He urged the government to improve investment climate by following consistent policy to spur investment in the country.

Wali-ul-Maroof Matin, chief executive officer of CSE, explained the services offered by the bourse and company matrixes by presenting slides.

He also gave a brief history of CSE and its contribution towards investment generation in the country.