FROM PAGE B1

The new commission scrapped the floor price shortly after assuming office, triggering a brief rally that pushed the index past 6,000 points. However, it soon began to slide again as the reality of weak corporate performance took hold.

The daily average turnover of the DSE has also suffered, falling by 30 percent year-on-year to Tk 462 crore, according to DSE data.

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), pointed to the long-standing irregularities plaguing the market.

“The current state of the market is the result of years of corruption and disorder,” Islam said. “Protecting investors’ money was a key responsibility that was neglected. It has been a fundamental failure on the part of all stakeholders, from regulators to brokers.”

He added that the poor return on equities compared with other asset classes has further dented confidence.

“Treasury bonds and bills offer 11 to 12 percent, but stock market returns are much lower. In fact, many people have made losses. The low returns show a lack of governance, accountability, and an adverse macroeconomic backdrop.”

The DBA president commented that many investors opened BO accounts solely to apply for IPOs, but with no new offers, their interest waned. “So, we are losing investors.”

So far, 309 listed firms, including banks, have released their financial reports for the January–March quarter.

Of these, 177 reported lower profits compared with the same period last year, with combined earnings down 25 percent. Among them, 27 companies slid into losses despite having been profitable a year earlier, a sign of the tough business environment.

“Now the market is full of rotten apples,” Islam said. “If we want to make it attractive again, we need to bring in a higher number of good apples.”

Md Abul Kalam, spokesperson for the Bangladesh Securities and Exchange Commission (BSEC), acknowledged that the current valuation rules are the main reason for the lack of IPOs in FY25.

“The BSEC is working on amending the rules as part of its reform agenda,” he said. “We hope that good companies will feel encouraged to come to the market once this is done.”

The regulator has tightened its oversight of compliance, rejecting IPOs from companies that failed to meet standards, Kalam added. “Issue managers do not even dare submit questionable proposals now, as the commission takes compliance very seriously.”