Tue 24 Jun 2008
Bangladesh makes it to top of Motley Fool list of top performing stock market with a whopping 126% return. But when economic activity is in freeze, business houses are stalled, consumer prices are through the roof, and banks are reporting liquidity crisis, does the Stock Market bubble w/ insane PE ratios represent another 1/11 market distortion? Meanwhile, what of “middle income rich” buzzword. Everyone’s using it. ADB Chief, Army Chief, AL Chief.
ADB chief predicts double digit growth for Bangladesh and highlights its prospect into turning into a middle income country by 2020. Not that I have high cofidence in our ADB hujurain’s prediction. But nevertheless its good publicity for Bangladesh.
She is in sync with the army chief as well. One of the most regular feature of Gen Moeen’s speeches is this reference of 2020.
“We want to carve a place as a middle-income country in the world by 2020″
It seems like he has company in Shaikh Hasina on this wish as well.
In reply to a question from the workers, Hasina said, “I’ve no reservation about anyone. I want to work together with all to build Bangladesh so that it can be a middle-income country by 2020.”
Bangladesh has made it to Motley Fool list. Now the next question is which of our leaders will make the December-fool list?
June 24th, 2008 at 8:34 am
Interesting comments. It would be good to know the basis of their optimism, as people like Hua Du are on the ground.
In the meantime, there is this. Fashion giant Zara forces closure of Dhaka garments factory. Money quote from their CSR head: If the guy wants to be our partner for the future he has to close this factory because it’s like a gangrene.
June 24th, 2008 at 4:05 pm
A staggering 126% of growth will not sustain, as the growth is mainly because of speculation, implying no fundamental or intrinsic value.
The growth rate for any developed and stable stock market should not be more than 6-7% above the risk free rate.
Having said that, the fundamental valuation will get better in Bangladesh as more and more private equity firms start investing in private/public companies. Potential investors, however, may become wary of the December Fools making a fool out of the entire economy in 2009!
June 25th, 2008 at 2:27 pm
As an individual with very little understanding of bechakina and orthovidya, I find this whole thing incredible. Mind boggling.
Middle-income country by 2020? Well, I hope I’m still alive by then, and with the help of advanced technology have 2020 vision to see things better.
I genuinely remain optimistic.
June 25th, 2008 at 8:18 pm
A thought-provoking idea:
http://www.thedailystar.net/story.php?nid=42851
June 26th, 2008 at 8:27 am
4. we will put up Durreen’s piece for discussion tomorrow. thanks