DBA President Saiful expresses concern over a possible ‘bubble’ forming in the capital market

A workshop held in Dhaka has brought to light growing concerns about the capital market, despite a recent rise in transactions and a rebound in investor confidence over the past week.

The event, titled “Capital Market Restructuring and Realities,” took place on Monday at the Economic Reporters’ Forum auditorium in Paltan.

Speaking at the workshop, DSE Brokers Association (DBA) President Saiful Islam cautioned that the absence of new company listings for more than a year could trigger the formation of another capital market "bubble" within the next year.

A capital market bubble arises when stock or bond prices soar well beyond their intrinsic value, driven more by investor speculation than by economic fundamentals.

“If quality shares are not introduced into the market, there’s a serious risk of a future crisis,” he warned, urging regulators to refrain from listing politically connected or poor-quality firms.