The New Nation - Internet Edition

The daily New Nation reported Tuesday, "The general price index of the day rellied 70.61 points or 2.51 per cent to 2873.22, the highest level the bourse has ever recorded. The DSI or all-share price index surged 116.81 points or 5 per cent to hit its highest at 2449.15".

The report has also assigned reasons for this rise of the share price index. It is because, amongst others, of the delayed decision of Saudi Price Bandar Bin Mohamed Abdul Rahman Al Saud to buy the state owned Rupali Bank within November. The decision was pending for a long time.

May be, the investors are thinking that it may be a good catch for them to trade on Rubali Bank paper (share). But to me, it seems that it may be a missed opportunity in the long run as we did experience in 1996 (during Sk Hasina's primership).

It is because as a NCB, Rupali Bank does not inherient a good track record as evident from its Balance Sheet. It was (and still it is) not a healthy financial institution in terms of assets-liabilities (including equity margin) ratio. Basing on past experiences it may be inferred that Rupali Bank may not do any magic overnight.

If everythings run well then the bank's financial strength (or status) may improve after a reasonable period of time, say 4-5 years, but not in the immediate future days or months.

What worries me much is the presence of some institutionalised market manipulators about whom some rocking stories came in the newspapers late last month.

All this reminds me of the days of 1996-97 when only a comple of persons gained enourmoursly and made their fortunes and many more suffered immensely and lost even the last buck.

It is time for SEC to watch the scenario with very keen eyes.

Nazle Noman

Bannani, Dhaka.