The stock market witnessed a bullish trading last month because institutional investors were active. The institutional investors are now observing the whole situation. I hope the market situation will be normal after few days.
Advocate Hasan Mahmud Biplob, Capital Market Analyst, said at an interview with ETV's presenter Rajib Zaman Wednesday.
The following is the details of the interview.
* How do you evaluate the market situation after a writ was filed against the Securities and Exchange Commission's (SEC) rule which now awaits court verdict.
# It is good for the investors that court did not issue stay order on SEC rule. So, sponsor-directors are bound to purchase the set 2 percent shares if they want to remain sponsor-directors of their respective companies. The court decided to hear all the claims at a time. I hope the verdict will come in favour of nearly 3.5 million investors.
* Panic among the investors is normal in this situation but do we expect positive behaviour from the investors' side?
# Most of the investors passed nearly two years in a deep crisis due to market debacle. So, it is very natural for them to be worried if they hear any turmoil or unwanted news though the market remains positive. Still some of the investors are counting losses and they are trying to overcome the situation by selling/buying their existing shares.
* Why did a writ was filed at the dead end of the scheduled time?
# It was done just to destabilise the stock market. Some vested quarters have come forward and filed the writs, which is illogical. I request the sponsor-directors - please buy back your shares which you sold at high prices and help the market stabilise. If the market is good, you will also be in a good position. DSE has records of those who sold their holdings and were responsible for market debacle.
* How can a sponsor-director become a company director without holding a single share?
# Actually, there is no written guideline in this regard. A sponsor-director can be a director of a company by holding 5,000 or 10,000 shares of a company arranged through a company memorandum. But there was no such binding for Independent Directors.