“Undervalued Bangladeshi blue chip stocks offer investment opportunity”
Due to the depreciation of the Taka, foreign investors have been selling Bangladeshi stocks and as they mainly deal in large-cap stocks with strong fundamentals, blue-chip stocks are suffering from oversupply in stock exchanges, a manager said. assets Mohammad Emran Hasan.
As soon as the sale of foreigners comes to an end, blue-chip stocks should recover from the current depressed price level, believes Emran Hasan, the managing director (CEO) of Shanta Asset Management Ltd – an asset management company of new generation managing over Tk 200 crore capital market funds.
“Prices of many blue chip stocks are depressed these days, despite companies growing,” he said on The Business Standard’s capital market show TBS Money on Saturday.
In the midst of high inflation, the wealth of savers may gradually erode as fixed income investment tools underperform actual inflation and investing part of savings in the stock market may drive up one’s wealth. long-term wealth, he said.
“Stock market investing should be done with the right approach and in a disciplined and informed manner to avoid the even greater risk of losing too much,” the asset manager said.
Starting small and continuing to learn how to prepare for calculated risk-taking that has the potential to generate huge returns over the years should be the approach any saver can take, Emran said.
And those who are unlikely to invest the time and effort to learn should turn to reliable investment professionals to manage their money, instead of making mistakes such as sheepfolding, making decisions about investing based on fear and greed and repeating the same mistakes in the market. , he said.
Universally, the stock index is not always predictable, but the factors that push the market up or down are traceable, he said, adding that with the exception of bubble periods, one can gradually build up a position in fundamentally sound businesses for wealth creation.
The asset manager advised against selling good stocks during short-term market declines and taking the opportunity to buy after sharp corrections.
The winning habit requires overcoming one’s fear and greed which comes through continuous exercise as an investor, said Emran Hasan, adding that he thinks that is why tomorrow is always the right time to start trading.
When too many people lacking expertise or qualification dare to continue advising the market in social life, historically this tends to be a good time to take advantage of market rallies, while the best time to buy good stocks is when people barely like to talk about the stock market, he cited the lessons of Peter Lynch, a legendary Wall Street fund manager.
The Bangladesh stock market does not appear to be at any time right now, he added.