Global economic fallout unlikely to hurt Bangladesh capital market
Piyas Roy
October 13, 2008
Recent global fallout is unlikely to hurt Bangladesh capital market, said Dhaka Stock Exchange Chief Executive Officer Salahuddin Ahmed Khan in a press briefing on October 11st .
He said the financial and banking sectors in Europe,
While global financial markets are facing the crisis due to their strong link to US markets,
“
He said the present volume of foreign investment in our market is less than three percent of total market capitalisation.
Besides, as there is no capital account convertibility, Bangladeshi companies cannot directly invest abroad and hence there is no fear of our financial institutions or banking sector to be hurt by the global crisis.
The DSE chief executive made the observations while addressing a press briefing at DSE yesterday (Sunday). The press briefing was also attended among others by Executive Director of the Securities and Exchange Commission (SEC) Farhad Alam, DSE Chief Operating Officer AFM Shariful Islam, Chief Financial Officer Satipati Moitra.
In this situation if any investor unnecessarily gets panicked by the events in the west, it will cause undesirable loss to them. As it is being observed, the smaller individuals are getting scared without properly analyzing the situations while smart investors are taking this as an opportunity, the CEO said
He finally cautioned the investors to be cautious in making their investments. “It is always advisable that investment should be based on fundamentals and not on ill motivated rumors. Such rumors lead fundamentally strong shares to be overpriced and risky.”
The market will suffer only if investors go through psychological pressure resort to panic sale which is witnessed in the
The DSE CEO said there are some selective sectors of shares still under-priced where there is scope for further investments.
