Bangladesh’s stock market is not overvalued: BSEC chairman

Bangladesh's stock market is not overvalued because it did not soar as fast as the economy rose over the years, said Prof Shibli Rubayat Ul Islam, chairman of Bangladesh Securities and Exchange Commission (BSEC).

His comments came in a programme that the BSEC organised today to launch the World Investor Week 2021, an initiative of the International Organisation of Securities Commission.

It was held at the BSEC's own office in the capital.

"Some people are saying that the stock market is overvalued but they do not realise the reality of the economy and our stock market," he said.

They made such comments seeing the rise of the benchmark index of the Dhaka Stock Exchange in the last one year, he said.

"But the stock market did not soar as fast as our gross domestic product and per capita income. They cannot be compared such a way."

They can take into account the market's price earnings ratio, which is still lucrative, Islam said, adding that the regulator is trying to diversify the stock market products.

"We are trying to ensure good corporate governance in the market too," he added.

BSEC Commissioners Prof Shaikh Shamsuddin Ahmed and Prof Mizanur Rahman also spoke.