Dhaka, Bangladesh (BBN) – Bangladesh’s investors have been advised to invest cautionary in the stock market for avoiding financial risk.
The Dhaka Stock Exchange, the country’s prime bourse, on Thursday urged investors only to invest money in stock market from surplus capital in their hand and not to invest any money by taking loans or selling properties.
“Without acquiring proper knowledge, information and experience regarding different aspects and matters of the capital market, one should not invest in the stock market,” Rakibur Rahman, a senior director of the DSE, said while speaking at a press briefing organised by the DSE at its headquarters in Dhaka.
“One should not come to the market by selling their belongings like land, gold or taking loan as the capital market is also a risky market,” he explained.
He also said that people should invest in stocks only if they have extra money.
Terming the current market trend normal, he said there was a mismatch with the country’s economic growth and the capital market trend. “After five years, the size of the capital market is growing in accordance with the pace of the country’s economic growth”.
Against a backdrop of a continuous rise in the index and turnover, some experts expressed their concern over the present market situation as the market is advancing without any correction.
The capital market regulator –Bangladesh Securities and Exchange Commission (BSEC)– also held a meeting on Monday last with the capital market stakeholders, including representatives from DSE, CSE, Brokers Association of Bangladesh, Bangladesh Merchant Bankers Association and Asset Management Company, asking them to strictly follow the rules and regulations so that the market can ‘avoid any abnormal movement’.
The turnover on the DSE crossed BDT 20 billion-mark on Tuesday last for the first time in the last six years while DSE key index reached a record high of 5,575.47 points on that day since its inception on January 28, 2013.
“The DSE had the capability to manage the current condition of the market,” KAM Majedur Rahman, managing director of the DSE and senior banker, noted.