Approval of new IPOs are blamed behind market correction


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Approval of new IPOs are blamed behind market correction

The stock market, which has been plagued by corruption and the coronavirus, has come to a standstill again after some improvement in the initiative of BSEC chairman Professor Shibli Rubayat Ul Islam.  Professor Shibli Rubayat Ul Islam has been appointed by the government as the new chairman of the Bangladesh Securities and Exchange Commission (BSEC), the stock market regulator on May 17.

Stock market investors are signaling new IPO approvals behind the market’s stagnation. Investors say so many new IPOs will actually keep the market on the back foot again before the market situation improves. According to sources, the DSE index has increased by 1000 points in the last four months, but the prices of companies with good fundamentals have not increased much.

In most cases, the share price of the weak category of the Z category has risen for no apparent reason.  Among the shares that have risen in price have risen are shares that have not been able to hold AGMs year after year and companies that have no operations. There are companies on the price list even though the number of shares is very low.

Seeing these trends, BSEC has asked about two dozen companies in the last two months to find out the reason for the rise in their share price. Almost all the companies have answered but there is no reasonable reason to increase the share price of the company. Professor Shibli Rubayat Ul Islam Commission has approved IPOs of companies like Walton and Express Insurance and IPOs like Robi and Associate Oxygen are in the pipeline.

In addition to these IPO approvals, many financial institutions have approved bonds to raise money from the market.






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