Opinion “Common-man market analysis” : Issuing more IPO is risky for the market

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Opinion “Common-man market analysis” : Issuing more IPO is risky for the market

The capital market in Bangladesh has witnessed some changes and developments after the coronavirus pandemic sweeps several new issues. The new commission took responsibility bring some changes in laws and regulations as well as enhanced monitoring which helped progress the market a bit. But unfortunately despite the commission’s had positive intention to bring dynamism into the market it yielded little progress. Some innovations or issues have been added to the market since it opened after the market opened:

  1. The first development into the business was that the pharma sector has made the best profit in the Corona situation: but the market could not capitalize it properly.
  2. Z category companies will be reformed – the commission launched few drive resulted a huge hype in price of poorly performed Z category shares from in all sectors,
  3. Information and steps of implementing the BSEC regulation of mandatory holding minimum 2% share individually and 30% all together will be implemented at any cost – it also helped push the market a little bit.
  4. A news spread across board that the non-banking sector will be reformed – this information helped go forward the finance sector.
  5. Mutual fund will be reformed – this sector has also moved on the issue.
  6. Everyone knows better than me that there is nothing to say about insurance.

More or less all the scripts have played well since the market opened, But the problem was that most of the scripts in most of the sectors did not get back their lost value except for the insurance sector, And many have not been able to make as much profit as they need by investing in new funds, so there is a lot of talks on Facebook.

On the one hand, they are right (the market did not recover in the sense it was supposed to recover,

What has happened in other markets is that they had a market up trend even before Corona and have recovered very easily during Corona which is the opposite in our market.

On the other hand, their negative activities are unfortunate because something good and bad happened after Corona.

Now to bring the market back to life:

  1. Policymakers need to add innovation of thoughts, which will play a role in attracting investors.
  2. DSE hotspot should be stopped (website, apps service development, stop unnecessary queries, etc.)
  3. Slow down IPO, not giving permission for the time being without reputed company.
  4. From the point of view of propaganda, we have to advertise different aspects of the capital market,
  5. For now, there is a floor price for capital security,

Only here people need to understand how people can make more profit from dividend gain than bank deposits, then new investors and money will come to the market.

. Mutual funds, like other countries, need to promote themselves through advertisements and adapt to good returns.

I personally believe:

The new commission panel is very dynamic and proactive, They are thinking of innovation to increase market activity and will be able to do something in the future in the interest of the country, in the interest of their own reputation.

Bmirrorhttps://bmirror.net/
businessmirror20@gmail.com

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