Bangladesh is going to see a growth decline due to slowdown in economic activities and disruption of global supply chains during the pandemic. This situation might have a lingering impact on the country's capital market which is still in infancy where mainly shares of companies are bought and sold. Only a few mutual funds and bonds don't make the market vibrant. However, with new leadership in the regulatory body, changes and new initiatives are expected.
Day traders having cash are most likely not to jump into the bandwagon to buy shares in search of quick profits. Therefore, share prices may remain more or less stable for a while and this presents an opportunity for institutional and high net worth investors to have a close look into their portfolios. The potential of stable prices may help portfolio managers in planning redesigning of pathways for their assets under management.
After the 2010 crash, the stock market has been suffering a lot in terms of declining prices and low turnover. So, certainly, investors are in fear of further losses after the stock market opens following a long break. However, careful judgment, prudent decisions and well-timed actions may help fetch the best from any circumstances. After all, it's up to the investors whether to act like a bull or bear.
Tanzina Ahmed Choudhury
A financial sector professional
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