Mirza Aziz asks stock investors not to trade with loans

People should not go for stock investment with credit as investors who traded with loan suffered huge losses, especially during the market debacle early last year, said a former caretaker government adviser yesterday.
AB Mirza Azizul Islam, a former finance adviser, said an investor should consider three aspects -- how much profit can be obtained from the investment, how much risks are there, and how easily the invested amount can be brought back.
He spoke at a “capital market orientation programme for electronic media representatives” organised by the Dhaka Stock Exchange.
“An investment can be made after considering all these aspects,” said Islam, also a former chairman of the Securities and Exchange Commission.
An investor should also analyse the company profile and its net asset value, earnings-per share, management, business area and credit rating before making an investment decision.
Faruq Ahmad Siddiqi, another former chairman of the SEC, said a group of unscrupulous people always try to take benefit from the market by spreading rumours.
He said the Padma bridge issue can put an impact on the country's overall economy, but not on the stockmarket.
But rumours about the Padma bridge issue recently gripped the market, he said.
“The Padma bridge issue should not put any impact on the market right now. It can influence the market only after the completion of the project,” Siddiqi said.
It was also seen that the share prices of the companies with strong fundamentals are not increasing in line with the rise in the prices of companies with weak fundamentals, he said.
He asked the journalists to have a clear knowledge about the stockmarket. "Everyone should know about initial public offering, price fixation, rights issue, share premium and rules about price sensitive information," he said.
If one has adequate knowledge about these, it will be easy to identify the market manipulative attempts, he added.
DSE President Rakibur Rahman, Senior Vice-president Ahmad Rashid and Chief Executive Officer Musharraf M Hussain also spoke.