Staff Correspondent:
After a prolonged downturn, the country's stock market has shown signs of recovery this week. The benchmark index has been on an upward trend for three consecutive trading days, with daily turnover surpassing Tk 4 billion.
Analysts and brokerage houses attribute this positive movement to increased participation from institutional investors. With recent restrictions lifted, 13 funds managed by Race Management are more active in the market.
Reports indicate that several mutual funds and financial institutions, after a period of dormancy, have begun actively investing again. They are particularly focusing on large-cap, fundamentally strong stocks, triggering fresh buying pressure in the market.
Shamim Reza, a senior executive at Globe Securities, noted, "Institutional investments in large-cap stocks are on the rise. Companies like Grameenphone, Square Pharma, BRAC Bank, and Renata are experiencing stable buying pressure. Grameenphone recently announced its dividend record date, prompting retail investors to sell off shares. Typically, this leads to a price drop, but institutional investors are stepping in, which is a positive sign for the market."
Raihan, Head of Trades at another brokerage firm, echoed similar sentiments: "Race Management, a key institutional investor, had been inactive for quite some time. We have learned that, following regulatory approval, their mutual funds have resumed trading. There is a growing buzz in the brokerage community that Race Management has re-entered the market, which is an encouraging signal for investors."
Mamunur Rashid, head of Compliance of the Race Management, confirmed the development: "The Bangladesh Securities and Exchange Commission (BSEC) has lifted restrictions on our funds, allowing us to resume operations. For over 15 years, Race Management has been managing funds, distributing approximately Tk 18 billion in dividends to over 100,000 investors. All our assets are securely held by neutral custodians. As we continue our operations, we expect to increase investments in the market and deliver strong returns for investors."
Discussing the state of the mutual fund industry, Dr. Mazharul Islam, head of Regulatory Affairs at the Association of Asset Management Companies and Mutual Funds (AAMCMF), remarked, "Since 2023, under Shibli Rubaiyat's leadership, the mutual fund industry has faced extensive inspections and inquiries, resulting in nearly 70% of funds becoming inactive. This disrupted the natural flow of the market and harmed investors. We are now actively working with regulators to resolve these issues."
Market analysts believe that as institutional participation increases, stability will return to the stock market, helping rebuild investor confidence.