Market watchers worried<\/strong>
\nDhaka stocks continued their rally on Thursday, sparked by relentless flow of fresh funds, taking the benchmark index closer to 5400-mark.
\nMarket analysts said the market is witnessing a frenzy in trading by new investors, which is reminiscent of 1996 bubble and bust.
\nThey said a lingering bullish market has attracted an army of investors with large funds. “The share prices are rising in almost every session and the\u00a0trend might blow out of proportion in absence of fresh listing. The market depth is low in comparison with volume of money pouring into the market,” said one analyst.
\nThe benchmark DSE General Index (DGEN) set records with a rise of 79.73 points or 1.50 per cent to close at 5390.48, lifted by Grameenphone, banks and insurers.
\nIt started the year at 4568.40.
\nBroader All-shares Price Index (DSI) gained 64.10 points or 1.46 per cent to 4442.66, while DSE 20 comprising blue chip index surged by 43.29 points or 1.46 per cent to 3007.79.
\nThe turnover continued to smash its records as it stood at Tk 15.82 billion, showing an increase of more than 4.0 per cent over the previous session’s Tk 15.17 billion.
\n“This is nothing but greed. People are getting crazy,” said Salahuddin Ahmed Khan, professor of finance at Dhaka University.
\n“Investors come, invest and take profits as the share prices are skyrocketing without fundamentals, which is a ominous sign,” he said. “Lower bank deposit interest rate might also have lured the investors into the market,” said Khan, who was ex-chief executive officer of the Dhaka Stock Exchange (DSE).
\nSince the start of the year the index has risen more than 18 per cent as a relentless flow of funds has fuelled the share prices.
\n“Everyday, huge fresh fund is entering the market,” said Abdul Awal, managing director of the Multi Securities and Services Ltd. “Market needs more shares immediately. Or else, it might see ‘bubble and bust’, he said.
\nRejecting the assumption that undisclosed money is entering the market, Awal, also treasurer of the Bangladesh Merchant Banker Association, said, “Undisclosed money is yet to enter the market. But it is expected to come in March-April,” he said.
\nIn the budget for 2009-10, the government gave opportunity for undisclosed money holder to whiten by investing in the stock market for one year. Such advantage will expire in June.
\nGrameenphone, the telecom giant, sector gained 5.06 per cent to close at Tk 272.10. Majority of banks rose as the sector gained by 0.88 per cent. Among significant gainers, City Bank nudged 4.85 per cent higher.
\nPharmaceuticals sector gained 1.20 per cent with Square Pharma, the country’s top drug producer, moved up 2.82 per cent.
\nNon-banking financial institution (NBFI) sector fell 0.72 per cent and mutual funds 1.17 per cent.
\nEnergy sector ended mixed on the day. All the companies in the cement sector excepting Padma Cement closed in the positive territory and majority of the insurers gained.<\/p>\n

Courtesy of The Financial Express<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Market watchers worried Dhaka stocks continued their rally on Thursday, sparked by relentless flow of fresh funds, taking the benchmark index closer to 5400-mark. Market analysts said the market is witnessing a frenzy in trading by new investors, which is reminiscent of 1996 bubble and bust. They said a lingering bullish market has attracted an … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[4],"tags":[],"yoast_head":"\n