Foreign investors in Bangladesh's stock market are selling shares en masse as the local currency's depreciation against the US dollar coupled with various policy changes over the past few years has lowered their confidence in securing adequate returns.
Some listed companies do not regularly publish their financial data on their website and so, investors struggle to analyse and take decisions, said Shaikh Shamsuddin Ahmed, a commissioner of the Bangladesh Securities and Exchange Commission (BSEC).
No matter how hard the government tries to give a message that Bangladesh would not face a Sri Lanka like crisis, edgy stock market investors don't seem to be in the mood to listen.
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Stock rally carries on
Star Business Report
Star Business Report
The stock market continued to rise for a sixth day yesterday, sans the two-day weekend, while turnover almost doubled thanks to an increase in the participation of investors despite a deterioration of the coronavirus pandemic.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), surged by 71 points, or 1.34 per cent, to stand at 5,421.78 yesterday.
Turnover, another important indicator of the market, rose 87 per cent to Tk 1,299 crore.
The scope to make easy money is the most important and biggest reason for the Bangladesh market rally, which is also common in stock markets around the world, said Md Moniruzzaman, managing director of IDLC Investments.