Investing Wisely: Lowering Risk with Low PE Ratios

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Investing Wisely: Lowering Risk with Low PE Ratios

As a result of the long-term decline in the country’s capital market, the price of many shares has fallen below the actual price. In this case, the share price of the fundamental company has fallen significantly. As a result, the overall price-earnings ratio (PE) of the country’s main capital market, the Dhaka Stock Exchange (DSE), has further decreased. Experts believe that this has reduced investment risk in the market.

According to sources, in the past week (November 24 to November 28), the overall price-earnings ratio (PE ratio) of the main stock market, the Dhaka Stock Exchange (DSE), has decreased by 1.24 percent or 0.12 points.

According to market analysts, the lower the PE ratio in the capital market, the lower the investment risk. In addition, if the PE ratio increases, the investment risk increases. However, the PE ratio has decreased further in the past week, and investment in shares is in a risk-free position due to a decrease in the PE ratio.

The DSE’s PE ratio for the current week is 9.51 points. The DSE’s PE ratio for the previous week was 9.63 points.

Sector-wise PE ratio analysis shows that the mutual fund sector is at 3.25 points, the power and energy sector is at 5.29 points, the banking sector is at 6.43 points, the services and housing sector is at 10.51 points, the engineering sector is at 10.92 points, the textile sector is at 10.99 points, the pharmaceutical and chemical sector is at 11.12 points, the telecommunications sector is at 12.60 points, the financial sector is at 12.69 points, the insurance sector is at 13.51 points, the food and related sectors are at 13.76 points, the cement sector is at 14.27 points, the miscellaneous sectors are at 16.92 points, the information technology sector is at 18.94 points, the paper and printing sector is at 25.4 points, the leather sector is at 35.65 points, the travel and leisure sector is at 61.94 points, the jute sector is at 77.89 points and the ceramics sector is at 83.4 points.

 

This information was obtained from the Dhaka Stock Exchange (DSE).

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