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A workshop in Dhaka has highlighted looming concerns in the capital market, despite a recent uptick in transactions and the renewed investor confidence over the past week.
The workshop was hosted on Monday at Paltan’s Economic Reporters’ Forum auditorium.
Speaking at the event titled “Capital Market Restructuring and Realities,” DSE Brokers Association (DBA) President Saiful Islam warned that the lack of new company listings for over a year could lead to the formation of another "bubble" within the next year.
A capital market bubble occurs when asset prices -- stocks or bonds -- inflate far beyond their true value, fuelled by investor hype rather than economic fundamentals.
“Without a new supply of quality shares, there is a strong possibility of a crisis in the future,” he warned.
He also urged the regulatory authorities to avoid listing politically-backed or low-quality companies.