Bangladesh is currently in a cross road with pragmatic changes that are shaping up the many part of the economy. In line with the global economic landscape together with the recent changes that took place in the country which will offer a wider array of opportunities for the investors to avail which will not be available for a longer period of time.
Ride on the volatility for a better tomorrow 
The rest of the year 2024, would be a roller coaster ride for many. Changes in regulatory framework with monetary tightening to tame the general price levels in the economy will be more costly to do business and eventually may lead to weaker corporate earnings in the September quarter and quarters to follow. However, silver line will appear in the Banking sector earnings with the thicker spreads and will surely negate the possible adversities of lower earnings to a greater extent in the equity market.
At the same time advanced economies already started easing out their tightening cycles led by the US and closely followed by the other developed economies. It is still very early to say that the global econo- my is preparing for a soft landing or a hard landing by browsing through the macroeconomic indicators. However, sluggish real estate market in China and rising non-farm payroll figures in US reflects a bleak global economic outlook for the years 2025 & beyond.
When Bangladesh in a tightening cycle & the global economies are soft paddling their interest rates, will create a rare opportunity for those who are interested In investing in Fixed income securities in Bangladesh .If the macro stability can be achieved in the country that will attract more foreign investors to the capital market specially in fixed income securities at this juncture.
If geo-political uncertainties spreading through the gulf region and prolong conflicts in resourceful nation like in Ukraine and Russia, will continue to create an imbalance in resource distribution in the world. This could drive the global commodity prices higher and greater challenges to the global supply chain.
Ray of Hope
As a current tightening cycle will reach it's peak in the near future, along with the tighter liquidity and the flexible exchange rate regime can provide a much needed stability to the Bangladesh economy in the medium to long run. This will eventually spur the downward momentum of interest rate in six to twelve months time horizon.
The recent removal of floor price and the adjustment of the downward circuit breaker from 3% to 10% have resulted in an improvement of the liquidity in the equity market and the turnover. Much needed macro stability will entice the investors back to the capital market within a midterm horizon and more importantly proactive approach has to be initiated to ride the wave comfortably.
Like in the past when global interest rates are heading south, emerging market will attract more capital market invest- ments. This is a time tested phenomenon and considering the current equity market valuations, Bangladesh will be a choice for risk takers who are eagerly looking for attractive arbitrage opportunities.
Commercial Bank of Ceylon PLC, a bank with a unblemished legacy of 100 years of existence with over 20 years presence in Bangladesh provides a fully fledged Custodial Service window for the investors who are keen to invest in capital market including Equities, Treasury Bills and Bonds, and any other listed Corporate Debt Securities that are available in Bangladesh.
Retrospective to the above developments, we invite everyone to enjoy the ride with new tyres though it could be bumpy at the beginning of this new journey but surely you will enjoy the ride with greater satisfactions and benefits.
