Dhaka Stock Exchange
DSE launches new data center for uninterrupted transactions on stock market
Dhaka Stock Exchange (DSE), the main stock market of Bangladesh on Sunday launched a new data center to ensure automated and uninterrupted transactions.
The DSE authorities have claimed it is a state-of-the-art data center with 106 racks, a press release said.
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The data center has already achieved ANSI/TIA-942, Rated-3 (Design and Construction) international standard certification, DSE said.
Rated-3 data centers have multiple paths to keep power, cooling, and other systems updated and running without taking them offline. As a result, equipment/devices can be removed/replaced/maintained on a planned basis without disrupting application operations, said the DSE.
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On November 12, the DSE announced that trading activities have been launched from the new data center at DSE Tower in Nikunja. It further stated that trading activities are being conducted successfully through the new data center since its commissioning.
According to DSE, the new data center has been equipped with state-of-the-art servers, network components, storage, and electrical equipment. By launching this state-of-the-art data center, DSE has ensured a highly reliable and modern trading platform for the benefit of investors and all stakeholders.
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DSE Chairman Professor Dr. Hafiz Muhammad Hasan Babu, Director Rubaba Daula, Managing Director Dr. ATM Tariquzzaman, Chief Operating Officer M. Saifur Rahman Majumder, Acting Chief Technology Officer Tariqul Islam, among others, were present in the opening transaction ceremony.
Small investors’ woes in capital market unlikely to end before national polls: Analysts
Small investors in the stock market are frustrated as their wait for a good time gets delayed by the Bangladesh’s ongoing political unrest.
The political impasse over who should oversee the upcoming national polls is thwarting the stock market’s recovery from Covid-19 pandemic and the Ukraine-Russia war.
The small investors’ shares are stuck on the floor price (minimum sale rate) and overall economic downfall. This has been painful for many unfortunate small investors of the capital markets, according to market analysts.
Policymakers and the Bangladesh Securities and Exchange Commission (BSEC) paint a rosy picture for small investors saying that stock markets will rebound with enlistment of new companies and injection of big investments. But the situation for the small investors seems to be hopeless.
Read: Economy buffeted by political unrest amid declining forex reserves: Analysts
A large number of shareholders have remained stuck with their investment in the capital market for over a decade amid fading hopes.
“No one, not even the regulator or stock market authorities pay heed to their screams,” Abdul Latif, a grocery owner and one of the affected investors, told UNB in a broken voice. He said he invested Tk13 lakh in 2011 to buy shares of different companies listed in Dhaka Stock Exchange (DSE).
After graduation in 1998 Latif found no suitable job and then started a small business in the Motjheel area in 2002 with support from his father-in-law. He made a good profit in the business and invested money in the share market.
In 2010 Latif invested around Tk13 lakh of which 5 lakh was his own and 8 lakh borrowed from relatives. All of his investment was stuck in shares of different companies due to a big scam in the capital market in 2011.
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Like Latif, thousands of investors lost their hard-earned capital in 2011, and after that, some were able to gain part of the capita. But most of them left the capital market losing nearly all investment.
Many of such investors are still in the market hoping for a rebound in the DSE, but without any good news.
There is no sign of lifting the floor price before the next election. However, economists say that people do not have confidence in the market. BSEC advises investors to be patient until the general election is held by January next.
Dr ABM Mirza Azizul Islam, an economist and a former adviser of a caretaker government, told UNB that there has been a crisis in investors' confidence in the stock market for a long time.
“To this are added various economic crises, the international situation, and everything including elections and national politics,” he said.
Read: Despite challenges, govt hoping to restore economy’s pre-Covid momentum in current fiscal
As a result, first of all, steps should be taken to eliminate the trust crisis. In this case, trust should be ensured by establishing good governance, he said.
That is, the investors have to be given the assurance that if someone steals their money through manipulation, they will be prosecuted. Besides, the supply of good shares should be increased. Through these two steps, it is possible to eliminate the market problem. But it is not easy at all, said Dr Azizul Islam.
Dr Abu Ahmed, former professor of Dhaka University’s Economics Department, said there are two crises in the market: one on the demand side and the other in investor confidence.
On the supply side, the problem is that there are fewer good companies. As a result, it is a win-win situation for manipulation and syndicates, he said.
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All in all, the stock market is currently in an unstable condition and gradually the situation is getting worse. The passage from here is very difficult, he said.
According to market insiders, the stock market situation is in a dire. The situation is not improving due to political uncertainty ahead of national elections, increases in commodity prices, and various international issues.
The market has lost its importance to the government as well. For those who are not directly involved with government policymakers, the stock market is a source of irritation.
Their thinking is like this - if there is no stock market, there will be no problem in the country. For these reasons, the government wants to hold the market with floor prices until the next national election. This brings an opportunity for syndicates blessed by the regulatory body to be controlling the market, the market insiders said. They spoke on condition of anonymity.
BSEC Chairman Professor Shibli Rubayat Ul Islam told UNB in this regard that the global situation is not in the hands of the regulator or the government. Investors should beware of investing with any company depending on rumours.
He also said due to a lack of financial literacy, people are sometimes investing in weak shares with an expectation of big profit which is not the right way of investment.
Read: BSEC sits with stock market stakeholders Thursday after drastic fall of share prices
DSE gets new managing director
Former executive director of capital market regulator Bangladesh Securities and Exchange Commission, Dr ATM Tariquzzaman, joined the Dhaka Stock Exchange as its new managing director on Sunday.
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The BSEC approved his appointment on August 8. He was appointed as MD of DSE for the next three years after the resignation of Tariq Amin Bhuiyan.
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Tariq Amin Bhuiyan submitted his resignation on 23 August 2022. Before this, professors Swapan Kumar Bala (late), KAM Majedur Rahman, and Kazi Chanaul Haque worked as MD of DSE.
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DSE urges tax exemption on earned interest in bond market
The Dhaka Stock Exchange (DSE) on Tuesday urged the government to consider its 6-point proposal on the budget for the fiscal year 2023-24, to encourage investment.
DSE Board of Directors Chairman, Professor Hafiz Hasan Babu made the call from a 'post-budget press conference' at a hotel in the capital on Tuesday.
The proposals are tax-exemption for earned interest on bonds, to reduce the tax gap between listed and non-listed companies to 10 percent, reduce VAT from 15 percent to 10 percent for companies in the capital market, reduce the tax gap to 10 percent for stock exchange SME companies, and reduce tax at source on broker houses’ transactions.
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In a written speech at the press conference, DSE Chairman said that currently, the size of the corporate bond market is very small which creates limitations in the capital market as well as in the financial market.
Also Read: DSE market capitalisation increased by Tk4.5 lakh crore in 2022
“A well-functioning bond market can help the economy in several ways. Exemption of tax on interest in all types of bonds would encourage creating a strong bond market," he said.
DSE market capitalisation increased by Tk4.5 lakh crore in 2022
The market capitalisation of the Dhaka Stock Exchange (DSE) increased by Tk4.47 lakh crore in the outgoing year 2022, as the 250 treasury bonds started trading in the DSE.
Although the index and the share price of most of the companies fell, the market value of 250 treasury bonds and Islamic Sukuk bonds started trading in the capital market for the first time in the DSE.
DSE data shows DSE started trading in 2022 with a market capitalization of Tk 3.14 lakh crore. Then on October 10, 2022, 250 government securities were listed on DSE. The market cap stood around Tk7.73 lakh crore. The market cap slightly decreased to Tk7.61 lakh crore at the end of the year.
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Among the transaction, the trade volume of the block market was Tk14253.19 crore, which is 6.4 percent of the total transaction. This ratio was 3.97 percent of the total transaction in the previous year. The transactions in the block market have increased compared to the previous year (2021).
The investors in the capital market passed another year, along with frustration and uncertainty in the capital market due to the global recession, which erupted from the Covid-19 pandemic and the Ukraine-Russia war.
Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubayat –Ul-Islam told UNB that the regulator is working to improve the market situation through diversified products.
Read more: DSE share trading between 10am and 2:30pm from tomorrow
“But the global situation, which is beyond our control, has created uncertainty in several sectors including capital market,” he said.
DSE share trading between 10am and 2:30pm from tomorrow
Share trading of Dhaka Stock Exchange (DSE) will be held as per the new office schedule – from 10am to 2:30pm – from Tuesday, an official notification said.
The Deputy General Manager of DSE, Shafiqur Rahman, told UNB that as per the directive of the Bangladesh Securities and Exchange Commission (BSEC), the new trading schedule will be in effect from Tuesday.
The BSEC instruction stated that from November 15, 2022, share trading will start at 10am and will continue till 2:30pm. There will be a 10-minute post-closing session. All trading will have to be completed by 2:30pm. There will also be a pre-opening session from 9:55am to 10pm.
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Meanwhile, along with the transaction of DSE, the official time schedule has also changed. On Tuesday, the official function will start at 9am and continue till 4:30pm.
The Chittagong Stock Exchange (CSE) will also follow the same time scheduled for trading.
Read more: Shakib’s company involved in share manipulation, DSE investigation finds
Tk 2829 crore: What capital market investors lost in a week
Capital market investors in Bangladesh suffered losses amounting to Tk2829.94 crore last week (Sep 25-29), according to the weekly market transactions.
Of the total five working days, the market saw three days of decline and two days of rises in the index.
Both trades and indexes were during the week. Share prices of most of the traded companies also fell. As a result, the market capital of investors has decreased by Tk2829 crores.
Read: Shakib’s company involved in share manipulation, DSE investigation finds
Shares and units of 386 companies were traded in Dhaka Stock Exchange (DSE), the main capital market of the country. Of them, 61 companies' share prices increased, 173 decreased, and 152 were unchanged.
The DSE index fell by 51 points to 6,512 points in the week as the share prices of most companies fell. Among the other two indexes of DSE and DSES (Bangladesh Dhaka Stock Exchange Broad Index (DSEX) including value, chart, profile and other market data ) decreased by 17 points to 1419 points and the DS-30 index decreased by 35 points to 2330 points compared to the previous week.
Bangladesh Market capitalization (capital) decreased by Tk 2829.94 crore in the week due to a decrease in index and price. But in the previous week, the capital had increased by Tk2617.42 crore.
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The market capital of Bangladesh at the beginning of the week was Tk 522763.99 crore. After trading on Thursday, the last working day of the week, the capital stood at Tk 519 914.04 crore. The capital decreased by 54 percent.
The main DSE index fell by 51 points to 6,512 points in the outgoing week as the share prices of most companies fell. Among the other two indices of DSE, the DSES index decreased by 17 points to 1 419 points and DS-30 index decreased by 35 points to 2330 points compared to the previous week.
Investors lose Tk 10,261 crore at DSE in one week
Investors have lost their capital amounting to Tk 10,261 crore in the Dhaka Stock Exchange (DSE) over the last week with the share prices witnessing a downtrend.
According to a market review, the main index of the Dhaka Stock Exchange Index (DSEX), the country's main bourse, shed 167.4 points to 7,076 points during the October 17-21 period.
Among the other two DSE indexes, the DSES (Shariah Index) index shed 49 points to 1,518 points and the DS-30 (blue chip index) index lost 19 points to 2,699 points.
The prices of 31 shares, out of those of 382 companies, marked a rise in the DSE during the one-week period. Besides, the share prices of 338 companies declined and the share prices of nine companies remained unchanged.
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Of the 362 companies traded during the last week, the prices of 124 companies marked a rise. Besides, the share prices of 231 companies declined and that of 23 companies remained unchanged.
The market capitalization of DSE has come down from Tk 10,261.56 crore to Tk 5,69,851.24 crore last week (3rd week in Oct) due to the fall in the prices of the shares of most of the companies. The total transaction volume of the market was Tk 5,80,112.81 crore in the second week of October.
Capital market to follow banking sector's ‘lead’ in operating during lockdown
The capital market will continue its operation in the interest of investors in any situation during the Covid-19 pandemic if the banking activities continue.
The Bangladesh Securities and Exchange Commission (BSEC) said this against the backdrop of the government’s preparation for imposing full lockdown from April 14 next.
A notice posted on the official website of the BSEC said: "[The] capital market will continue operation at [in] the interest of investors in any situation during the pandemic of Covid-19 if the banking activities continue."
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It said all the transactions in the capital market will continue in the interest of investors and urged the investors not to pay heed to any rumor.
According to sources at the BSEC, if the banks remain open during the lockdown, the capital market will also remain open. This instruction has been given to two stock exchanges -- Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).
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They said the commission has instructed the DSE to keep the capital market open if banks are open. The capital market will operate utilising smaller shifts and work-from-home facilities.
Earlier, from March 26 to May 31 last year, transactions in the capital market were closed due to the outbreak of Coronavirus pandemic.
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Just 1 in 20 of the women , who currently make up 18 percent of directors on the boards of listed companies in Bangladesh, are independent directors .