New forum urges small investors not to sell shares
FE Report | Sunday, 27 February 2011
FE Report
Leaders of the Bangladesh General Investors Forum (BGIF) have alleged Saturday a number of big traders are spreading rumours and misguiding retail investors to dump their shares at throwaway prices. The newly-created forum, which claims to uphold small investors' interest, also urged the country's more than two New forum million small investors to have faith in the market, which its leaders hoped would bounce back in time. "Eventually we won't be losers if we keep our shares in our hands at the present market situation. We should wait before making any hasty decisions," Yakub Ali Khandaker, the president of BGIF, said. Yakub was speaking at a round-table discussion on the "present state of capital market" in the capital. He said some rogue traders were spreading rumour in a pre-planned way that the benchmark DSE general index (DGEN) will nose-dive to 3000 points - almost half of the present figure. "A group of unscrupulous investors are deliberately feeding confusion in the market. They are buying small investors' shares at cut-throat prices by cashing in on the situation," Yakub said. He said the country's economy is on a sound footing and there are no major financial or political setbacks in sight that can push the stock market to a miserable condition. Leaders of the forum urged the government to identify the vested-quarters in order to stabilise the market. "The authorised representatives of brokerage firms and the officials of merchant banks are advising their clients to sell their shares," Ahsan Habib, a small investor, said. He said the state-owned Investment Corporation of Bangladesh (ICB) can restore confidence of retail investors by buying big volume of shares everyday. Another investor, Mr. Bulbul, said a committee should be formed to monitor the investment and activities of institutional investors in the market. The country has 3.3 million share accounts holders, according to the CDBL, the company that keeps electronic data of the investors. More than two million of them are retail investors, it said.
Leaders of the Bangladesh General Investors Forum (BGIF) have alleged Saturday a number of big traders are spreading rumours and misguiding retail investors to dump their shares at throwaway prices. The newly-created forum, which claims to uphold small investors' interest, also urged the country's more than two New forum million small investors to have faith in the market, which its leaders hoped would bounce back in time. "Eventually we won't be losers if we keep our shares in our hands at the present market situation. We should wait before making any hasty decisions," Yakub Ali Khandaker, the president of BGIF, said. Yakub was speaking at a round-table discussion on the "present state of capital market" in the capital. He said some rogue traders were spreading rumour in a pre-planned way that the benchmark DSE general index (DGEN) will nose-dive to 3000 points - almost half of the present figure. "A group of unscrupulous investors are deliberately feeding confusion in the market. They are buying small investors' shares at cut-throat prices by cashing in on the situation," Yakub said. He said the country's economy is on a sound footing and there are no major financial or political setbacks in sight that can push the stock market to a miserable condition. Leaders of the forum urged the government to identify the vested-quarters in order to stabilise the market. "The authorised representatives of brokerage firms and the officials of merchant banks are advising their clients to sell their shares," Ahsan Habib, a small investor, said. He said the state-owned Investment Corporation of Bangladesh (ICB) can restore confidence of retail investors by buying big volume of shares everyday. Another investor, Mr. Bulbul, said a committee should be formed to monitor the investment and activities of institutional investors in the market. The country has 3.3 million share accounts holders, according to the CDBL, the company that keeps electronic data of the investors. More than two million of them are retail investors, it said.