Dhaka, Bangladesh (BBN)- Both Dhaka and Chittagong stock exchanges on Saturday rang the warning bell saying the market was getting overpriced every day, which might erode the people’s investment and dent its future growth as well.
They also urged the government to take emergency steps for offloading state-owned enterprises (SoEs) within a month to save the market and to appease the investors’ strong appetite for shares.
The share market has been experiencing bull-run over the last two years, prompting the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) to alert the investors.
On Thursday, the benchmark index of the prime bourse reached its highest level at 7,480 points. The single-day turnover also hit record BDT 28.01 billion.
They said a dearth of new shares is the main reason for the current bullish trend, as the demand for shares is on the rise, and the supply cannot match the huge demand.
“We seek the prime minister’s intervention to avert any disaster,” DSE President Shakil Rizvisaid while addressing a press conference jointly organized by DSE and CSE.
He also said the government should offload its stakes in the companies already-listed on the exchanges.
The CSE President Fakhor Uddin Ali Ahmed extended all out support to the Exchange Commission (SEC) on behalf of the bourses, saying no challenge should affect the regulator’s moves, taken for the sake of the capital market.
The CSE president also said the illegal business, which is being carried out by some vested quarters in the name of private placement, must be prevented.
BBN/SSR/AD-10Oct10-1:20 am (BST)
