Present situation of share market

Our share market experienced a totally new kind of development in the trading. It watched both sides of a coin within two trading days. On January 10,2011 we saw a huge selling pressure and a record fall 600 points in the general index of Dhaka stock exchange within just 50 minutes of trading. Again next day we find the other side of the coin when almost no seller was found in case of most of the shares. The den which was 5367.11 points on January 10, 2010, increased 6249.35 on the same date this year. But in a days gap market index soared to 7512.09. The percentage change in one year stood at 39.9 from 16.40 within two consecutive trading days. In 2010 institutional investors especially some banks and non bank financial institutions showed their investment characteristics like general investors. Over last two years the profit of most of the bank and financial institutions became two or three times more than that of the previous years. This profit growth was attributed to profit earned form investment in shares. Thus many banks and financial institutions concentrated on share business instead of investing in their core banking activities. In early December 2010 when general index reached the record 8700 points many analysis expressed their concern about the overvaluation and syndicate price hike. But that time our general investors were over inspired by the gain from the market. It was seen that most regulatory devotions failed to show down the unending market rally. In vesting people became more dependent on rumors than fundamentals of the issue traded on the bounders-es. Insider traders turned out to be big gainers. Now it is becoming clear to us that there are many other factors that have bought the capital market on the verge of a collapse. Many of us started blaming the regulators. It is a matter of great regret that the sec the central bank and other shares holders are also blaming to each other. This ultimately proves the lack of coordination among them in policy making and policy implementation.