Dhaka Stock Exchange Director Rakibur Rahman has once again cautioned individual investors not to risk it all in the capital market like selling off property or borrowing large amounts of money, reports bdnews24.com
With the market riding on a high, both in terms of transaction volumes and indices, enthusiastic retail investors are making a beeline for brokerage houses to make the most of the bounty days.
There is fear that most of them are gambling on the stock market by putting everything on the line.
Apprehending a repeat of 2010, when a market crash led people to lose their all and triggered paralysing protests in Motijheel business hub demanding government intervention, even the prime minister recently advised people not to make a mad dash with investments.
Speaking at press meet, Rakibur clarified, “There is no need to borrow money, or sell your sister’s jewellery, or the cow to invest.”
Investment at stock market needs to be made out of disposable money available after meeting all expenses, he advised.
He explained, “Investment in stock market is subject to risks and one must invest only after gathering sufficient information about the company in which the investment is to be made.”
Speaking about the recent developments in the market, he said “there is no reason for worry”.
Commenting about the recent market revival, he observed the market continued to plummet almost as proportionately as the country’s economy developed over the last few years.
“However in the same period, there have been several reforms in the stock market. This has resulted in a renewed confidence of local and foreign investors. Investors have transacted shares on a daily basis. This has led to both transaction and market index to rise.”
Responding to a question, he said the higher echelons of the government have come to realise the importance of stock market to the economy.
Comparing the condition of Bangladesh with India, he pointed out that whereas the stock market accounts for 70 percent of India’s economic health, it contributes a measly 19 percent here.
To take the economy forward, the stock market also has to be ‘taken forward’, he said.