Bangladesh’s stock market has seen little growth in recent years. Listing strong companies like Nestlé and Unilever could help boost confidence and market activity.
The interim government has given in principle approval to list profitable state owned enterprises and multinational companies with government ownership on the stock market. The move aims to deepen the capital market and rebuild investor confidence.
In the first phase, 10 profitable companies are being considered. These include Karnaphuli Gas Distribution Company, Karnaphuli Fertiliser Company, North West Power Generation Company, Paschimanchal Gas Company, Sylhet Gas Fields, Syngenta Bangladesh, Unilever Bangladesh, Synovia Pharma, Novartis Bangladesh and Nestlé Bangladesh.
The decision was taken at a meeting at the Secretariat on January 7, chaired by Finance Adviser Salehuddin Ahmed. He said discussions on listing such companies had happened before, but this time the process has moved further as ministries and companies have shown interest.
According to the plan, state owned companies can be directly listed, while multinational companies will need approval from their global boards. The finance adviser said the stock market is now more compliant with rules, making it the right time to bring strong companies to the market.
Multinational companies should not avoid listing in Bangladesh. He pointed out that companies like Nestlé and Unilever are listed in many other countries. He added that incentives could be offered to encourage listing, while higher taxes could be considered if companies refuse.
ICB Chairman Abu Ahmed
This is a positive step for reviving Bangladesh’s stock market. Globally, strong stock markets power strong economies. India’s BSE and NSE are clear examples of how a growing capital market pulls in foreign investment. Bangladesh often struggles with foreign reserve pressure, and a healthier stock market can help ease that stress. If done right, listing quality companies could support reserves, boost confidence and help stabilize the wider economy.
Figure: Bangladesh Stock Mkt. Index Throughout The Years (Candlestick Chart)
– Opinion | Daily ScrollDown
*SEOS – State Owned Enterprises & MNCs – Multi National Companies
Source: The Business Standard