Bangladesh is a developing country. Stock Market was recently sabotaged by Influential ( political ties) & Corrupt (S.E.C. Personnel) Political Leaders and Securities Product Handlers ( RACE: Asset management Company headed by Dr. Hasan Imam among others) . The Stock Exchange (DSE) lost ~50% of its points. And now with the leadership of Finance Minister M.A Muhit, Govt is pouring in 5000 Crore ($714.2 MM) Taka into DSE without sighting how they plan to recover the money in the long run. This Madness is called “Bangladesh Fund”… fund managed by Investment Corporation of Bangladesh (ICB).
From Financial Express of May 5th:
“The ICB is the sponsor of the fund and other seven state-owned enterprises are the joint sponsors. The joint sponsors are: Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Development Bank, Sadharan Bima Corporation and Jibon Bima Corporation.
The ICB has contributed Tk 5 billion to the fund and the joint sponsors are supposed to contribute Tk 10 billion in total.
The source said, meanwhile, the fund manager of Bangladesh Fund has designed a guideline to invest its fund. As per the guideline, the fund manager will purchase the shares of the companies whose price earning (P/E) ratios are not above 20. The fund, however, would invest in stocks of banks and leasing companies having P/E ratios up to 10 and 15 respectively. “
