Capital Market situation: Nothing to worry as of yet
Tasmiah Nuhiya Ahmed of DOT
 The interest rate on deposits in the country’s banking sector is now the lowest. In such a situation, many are withdrawing money from banks and investing in the stock market. This stock market has turned around after the collapse of 2010. Not only that, this turnaround has created multiple records as well as the rise of the stock market. The record-breaking market capitalization and price index reached even higher levels last week. The main price index has spread by 6,000 points, which is the highest in the history of this index, reports Bangla Tribune .
 Besides, the market capitalization of Dhaka Stock Exchange (DSE), the country’s main stock exchange, has risen to over Tk 50,000 crore in the last six weeks. In the last week, it has increased to over Tk 22,000 crore.
 Caretaker government’s former financial adviser, AB Mirza Azizul Islam said that “there is still nothing to worry about the rise of the capital market. However, the share prices of several companies have been overvalued. Investors need to be careful about these before investing”.
 “In a word, there is nothing to worry about the stock market at the moment. The market index has risen, it is good for the market. And if the index increases, the capital will increase. Overall, the situation has not been very worrying so far. However, some weak stock prices are rising, it needs to be examined”, he added.
 “This is the advice for investors not to buy shares in a hurry. Price-to-earnings ratio (PE ratio) is one of the tools for risk assessment when investing in the stock market. The lower the PE of an organization, the lower the investment risk in that organization. In general, investments in companies with a PE of 10-15 are largely risk-free”, he further stated, the Bangla Tribune report further states.