Stock investors must be comfortable with artificial intelligence: Mustafa Jabbar

Stock investors must be efficient in use of artificial intelligence (AI), which will provide them with suggestions on the buying and selling of shares in future, Posts and Telecommunications Minister Mustafa Jabbar said on Thursday.

"There is no alternative to technology in order to move the country forward. Internet and artificial intelligence are very important in this regard," he said. He was speaking at a seminar on "Role of Technology and ESG (Environmental, social and governance) Analytics in Sustainable Financing".

The Association of Asset Management Companies and Mutual Funds organised the discussion on the occasion of World Investor Week.

The telecom minister said if investors do not learn the use of artificial intelligence, they will lag behind in share trading in the days to come. "Because, in the future, it will tell you which shares will go up or down", he said.

"If you want to know from me the name of the most important asset, my answer will be data. If you don't have data, your progress is zero," he added.

Mustafa Jabbar said at present, investors decide on the purchase of shares on the basis of graph charts. But in the future, they will have to make their investment decisions through depending on data only. 

"If you are not prepared for that situation or do not have the skills, then the times will be difficult for you," he alerted investors.

The minister said the Bangladesh Securities and Exchange Commission (BSEC) will have to act as a data hub, adding, "Otherwise, we will not be in a position to move with the world. You have to adapt to modern technology."  

"We have been working with bandwidth since 2008. In 2006, 1GB of the internet would cost Tk27,000. Now we have made the internet available in 98% of the country. As many as 12 crore customers are using the internet in the country."

BSEC Commissioner Mizanur Rahman said the size of the country's mutual fund sector is widening rapidly. Two years ago, the total asset value of the sector was Tk10,000 crore. Currently, it has increased to Tk15,000 crore.

"If transparency and accountability are ensured, it will be possible to raise the total size of the mutual fund sector to Tk1 lakh crore within the next few years," he hoped.

He said there were some disorders in the mutual fund sector even a few years ago. Although the size of mutual funds in 2020 was Tk10,000 crore, in reality, their asset value was Tk7,000 crore. Asset management companies invested recklessly in equities. The situation has improved a lot as a result of intensive monitoring.

Earlier, foreign investors focused on human rights and good governance. But now they are talking about climate risks, the commissioner said.

Hasan Imam, president of the Association of Asset Management Companies and Mutual Funds, said although neighbouring countries, including India, have received a sizable amount of green finance, Bangladesh is far behind in this regard.

"Opportunities remain as the sectors of sustainable development in Bangladesh are not ready in that way. Therefore, more branding of BSEC's roadshows in different countries can play a big role," he added.

He called upon stakeholders to push the mutual fund industry forward with more incentives.

BSEC commissioners Shaikh Shamsuddin Ahmed and Rumana Islam also spoke on the occasion.

Azad Chowdhury, chief executive officer and managing partner of AIM STEPs, was the keynote speaker at the seminar. 

He also emphasised the significance of data in order to go forward for sustainable finance in the capital market.