Finance minister AMA Muhith on Sunday said a meet the press function organised by the Economic Reporters Forum, “The capital market is not overheated but may be too much bullish”
It is a common view of market observers that the capital market is now overheated as share values being enormously overpriced beyond the company fundamentals.
Besides stock market, the Finance Minister also gave an overview of the state of the economy covering growth, inflation, foreign trade, domestic production and investment.
To keep the capital market stable, about 25 to 26 state-run enterprises would be in the market within next three months, said the finance minister, adding that the matter is under active consideration of the prime minister.
According to Muhith, there was no possibility for another scam in the share market like the one in 1996. ‘The market is much wider now.’
He observed that investment of ‘black-money’ and savings funds in the capital market prompted the recent sharp rise in share prices in the market.