Sunny days are returning to the stock market?


The stock market of the country is indicating to return to good days after the bad times. Out of the 12 trading days after Eid, trading is upward in 10 working days. In this, the market capitalization of Dhaka Stock Exchange (DSE) has increased by about Tk 40 thousand crores. However, the market capitalization of DSE decreased by more than Tk 1 lakh 26 thousand crore due to three months of continuous price fall before Eid. As a result, investors are still facing huge losses.

Concerned people believe that the stock market is on the upward trend after Eid due to some reasons. They say the market will gradually firm up if there is no undue intervention from regulators and no major negative news for the economy. However, investors are not very satisfied with the rising market after Eid.

They say that the market has indicated a turnaround several times before. But in reality the market is stuck in a downward spiral. As a result, recruiters made new investments in the hope that the market would move higher and suffered further losses. Even though the market is slightly up after Eid, most of the investors are still in big losses. In some institutions, 50-60 percent of investors are still in losses.

Although there was a continuous fall in the stock market before Eid, the reason for the upward trend after Eid is said by the market people, there is a rumor that the obstacles in the investment of government officials in the stock market are being removed. At the same time, funds deposited in Techno Drug’s initial public offering (IPO) applications have returned as BO to investors. That money is now being invested in the market.

They say that due to the continuous fall in prices, the share price of all the sector organizations in the market has decreased at an abnormal rate. Share prices of good companies are now undervalued. It is normal for the market to turn around from now on.

The market has moved to a point from which the market will turn itself around. What we see now is the market trying to turn around on its own strength. It is our expectation that the market will turn around at some point through ups and downs. DBA President Saiful Islam

According to the market review, the main price index of DSE was 6 thousand 215 points on March 3. And the market capital was 7 lakh 57 thousand 39 crores. After that, the main price of DSE fell to 5 thousand and 70 points on June 11, when the stock market fell into a continuous decline. And the market capital decreased to 6 lakh 30 thousand 670 crore taka. That is, the main price index of DSE fell by 1 thousand 145 points and the market capitalization fell by 1 crore 26 thousand 369 rupees.

Out of the 12 trading days after Eid till now (July 7), the share market trend is upward in 10 working days. In this, the main price of DSE increased by 441 points to 5 thousand 558 points. And the market capital increased by 39 thousand 616 crores to 6 lakh 73 thousand 209 crores.

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An investor named Mizanur Rahman said, “Even though the stock market is up after Eid, ordinary investors like me are still in big losses.” I am in profit on only one of the stocks in my portfolio. Loss on all others. Out of these, I lost 63 percent in one, 50 percent in one, and 49 percent in one. Besides, four lost more than 30 percent and one lost 21 percent and one 18 percent. I don’t know if I can get out of this loss. No need for profit, I’m happy to get real money back.’

Sunny days are returning to the stock market?

He said, ‘There was a chance for the market to improve several times even before this. But after being upward for a few days, the price has fallen again. Overall, the trend of falling prices in the market is high for several years. As a result, it is not possible to have much confidence in the market.’

Another investor named Jewel said, ‘It is not yet time to say that the market has turned around. Investors need at least two months of continuous upward movement to recover from losses. It is difficult to say whether it will be possible in reality. However, if the market is good for two to three weeks, confidence will return among investors.

When asked about this situation in the stock market, DSE director Richard D’Rosario told Jago News, “There are several reasons behind the current movement in the market. The price would automatically bounce back from where it was coming down, naturally. But two things have had a big impact.’

There is money in the market. If there is no intervention, the automatic market will be fine. Because investors don’t want any kind of intervention. Once a trend is formed, it should be allowed to continue. BMBA former president Chayedur Rahman

One of these is the news that the restrictions on investment by government officials will be lifted. Besides, techno drug IPOs saw huge demand, which was market money. That money is already coming to the house. Those who applied for the IPO with market money, are again investing in the secondary market. This has affected the market.’

He said, ‘Prices always influence the market. If the buyer gets it at a suitable price, he will buy it. Will sell if the price is higher. That’s the rule. But the market has gone through a bad period, and it is time to pass the bad period. The market went down a lot.

President of DSE Brokers Association (DBA) Saiful Islam told Jago News, ‘We have come to say that it is an unusual price drop after the continuous price drop for many days. There was no rational reason for that and the market moved to a point where the market would turn itself around. What we see now is the market trying to turn around on its own strength. It is our expectation that the market will turn around at some point through ups and downs.

What causes the market to rotate? When asked, he said, “Good share prices in the market have moved to a place that we think is fundamentally attractive.” What we call fundamentally callable shares. The perception among investors is that the stock is now too cheap to buy. This is called turning the market around on its own strength. That is what we are looking at now.’

Although the market is bullish, investors are still not fully confident and there is ambivalence among investors. When speaking like this, the DBA president said, ‘It is normal to have it. Because we are going through a long stretch. Investors experience in our market is not very sweet. So we are not saying that there will not be a negative tone. To cut it, trust must be restored. That confidence will take a while to come.’

Former President of Bangladesh Merchant Bankers Association (BMBA) Chhaydur Rahman told Jago News, ‘Every year there is a tension regarding the budget. This year there was a lot of confusion regarding Capital Gains Tax. It had a negative aspect. But later investors realized that this will not hamper common investors. This tax is absolutely for those who are big investors. Investors understand this, it is a positive aspect.

‘Undisclosed money investment opportunity is given. Moreover, the market is going down a lot now, where else will it go below. As such, a place of trust has been created among the investors. The market is on the bottom line. That’s why we think the participation of investors has increased.

Sunny days are returning to the stock market?

He said, there is money in the market. If there is no intervention, the automatic market will be fine. Because investors don’t want any kind of intervention. Once a trend is formed, it should be allowed to continue. After many ups and downs we are now seeing a positive sign. We think the market will run on its own strength if there is no interference at this pace. Now the market is at the bottom, there is nowhere to go.’

However, the market capitalization is less than 83 thousand crore rupees

On March 3, the market capitalization of DSE was Tk 7 lakh 57 thousand 39 crore. Now that market capitalization stands at 6 lakh 73 thousand 209 crores. That is, compared to March 3, the market capital is currently 83 thousand 830 crores less.

The main indicator is low points

On March 3, the main price index of DSE was 6 thousand 215 points. Currently DSE main price is at 5 thousand 558 points. That is, compared to March 3, the main price index of DSE is still 657 points lower.

Closed 14 thousand B.O

According to the information of Central Depository Bangladesh Limited (CDBL), on March 3, the BO account of investors in the stock market was 17 lakh 85 thousand 276. On June 4, it decreased to 17 lakh 71 thousand 125. According to this, the BO account has decreased by 14 thousand 151.

Foreigners are leaving the capital market

According to CDBL data, currently there are 52 thousand 567 BO accounts in the name of foreign and expatriate investors. On March 3, there were 55 thousand 379 BO accounts in the name of foreign and expatriate investors. That is, BO accounts in the name of foreign and expatriate investors decreased by 2 thousand 812 in four months.

MAS/ASA/GKS