stock market
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.
Stock exchanges should allow more access for vetting IPOs, said DSE Managing Director
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.
DSE gets new managing director
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.
DSE, BGMEA join forces to support RMG enterprises in capital market
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.
Read: Govt aims to collect 11.2% of GDP in taxes by FY 2025-26
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.
Read: Country’s first electrical testing laboratory on the cards
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
Stock market gained over Tk 10,185 crore capital last week
The stock market has passed the 4th week of the current month with a capital gain of Tk 10,185 crore in four days, data analysis of the capital market has revealed.
The capital of Dhaka Stock Exchange (DSE) was Tk 7.56 lakh crore at the beginning of trading on the first working day of last week. On the last day, after transaction on Thursday (January 26, 2023), the capital stood at Tk 7.67 lakh crores.
In other words, the capital has increased by Tk 10185 crore. It increased by Tk 2149 crore in the previous week. The investors' capital increased in the market for two consecutive weeks.
In the past week (January 22 to 26), trading was done on five working days. The first trading day marked a fall in the index, followed by four consecutive trading days during which the index rose from Monday to Thursday.
Also Read: BSEC forms Shariah Advisory Council for stock market
During this period, a total of 387 shares and units were traded in DSE. Among them, 63 companies' share prices increased, those of 119 decreased and 205 unchanged.
Among the companies traded in the previous week, 114 rose, 68 fell and 205 remained unchanged. The number of companies reducing prices has increased compared to the previous week.
However, the main index of DSE increased by 30 points from the previous week to 6,296 points in the outgoing week as the share prices of several companies increased.
Among the other two indexes of DSE, the DSES index increased by 6 points to 1,374 points and the DS-30 index increased by 22 points to 2,230 points from the previous week.
Read More: ‘Greed for short-term gains ruining investors’ confidence in stock markets’
Although the index has increased, the volume of transactions has decreased. In the last week, the total transaction in DSE was Tk 3050 crores, which was traded in the previous week for Tk 3850 crore. That is, Tk 800 crore worth of transactions have decreased; as a percentage it has decreased by 20.78 percent.
The Chittagong Stock Exchange (CSE), another capital market of the country, was also traded in the same condition.
In the last week, the overall index of CSE increased by 89 points to 18565 points. Tk 63.19 crores were traded during this time, which was traded in the previous week for Tk 104.55 crore.
Among the traded companies, the share prices of 61 companies increased, 83 decreased and 134 remained unchanged.
Read More: Finance minister directs regulators to boost investment in stock market
‘Greed for short-term gains ruining investors’ confidence in stock markets’
BSEC Member Abdul Halim said on Monday that the stock exchange regulator was working to punish any willful wrongdoing for short-term gains by brokerage houses, which are injecting distrust among the investors.
He said that many small investors have been affected by two incidents in stock markets in 1996 and 2010. Since then, rules and regulations have been reformed, and punitive action has been taken, he said, adding that the Bangladesh Securities and Exchange Commission (BSEC) has been working to gain the investors’ confidence back.
“Despite such effort, some malpractices remain among the brokerage houses as they are committing suicidal activities for short-term gains,” he said..
Halim made the statement while he spoke at a virtual discussion on the share market on Monday as part of the observance of the World Investor Week.
The BSEC commissioner gave an example, saying that in 2015 the DSE team visited a brokerage house and found irregularities. The Board of Directors of the company had gaven loans to their relatives, officers and employees, violating rules.
“It gave margin loans to purchase 'Z' category shares, and those who do not have money in the code got the opportunity to buy shares. They also gave loans to those people who did not have a contract with their brokerage house,” Halim said.
“They (owners of the brokerage house) thought we didn't know much about law,” he said.
Read: Takes 6-12 months to identify a share market manipulator in existing system: BSEC Chairman
After discovering faults, they said that it was a mistake, he said, adding that they want another chance to correct them.
But, he said, many other brokerage houses have also been committing similar ‘mistakes’.
He said some houses even bought and sold shares before depositing the cheques of the investors.
“Share trading has been done through different accounts of the same person just for increasing commission,” he said.
He said some brokerage houses even mortgaged the customer's money in the bank and loans have been taken against it.
Such houses provide false information to investors while they even do not care about giving incorrect information to regulators.
He warned that the people who deal with technology should also be honest.
According to the World Bank's 2021 report, the contribution of the country's capital market to the GDP is 27 per cent, and the size of our GDP is a little more than $416 billion. The GDP is expected to cross $600 billion by 2025 if the trend of growth continues, the projection said.
The capital market will be a sector worth $300 billion or Tk30 lakh crore by then if things are on the right track, it said.
DSE Chairman Yunusur Rahman presided over the discussion while Acting Managing Director of DSE Saifur Rahman Majumder moderated the program.
Share Market Investment Guide: How to Invest in Stocks in Bangladesh
Investing in the stock market or share market is one of the most popular ways to increase wealth in the modern age. However, investing in the stock market can be difficult, especially if you are a new investor. So, if you are a beginner, the best way you can start is by gaining experience. The share market is a volatile and risky investment, so do your research before making any decisions. Here is what you need to know about investing in the stock market in Bangladesh.
Types of Stock Market
There are two types of markets in which you can invest - primary and secondary. Let’s take a look at the investment process in both these markets.
Primary Market
The primary stock market refers to the main market where companies sell their shares to the public. The main goals of the primary stock market are to provide a means for investors to buy public shares and to provide information about company performance. If you want to invest in the primary market, you have to invest in an IPO (Initial Public Offering).
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It is the process through which a private company offers its shares to the public for the first time and becomes a public company. Through the IPO, the company involved provides its name on the stock market as an Initial Public Offering. A company owned by shareholders lets you know the basics of ownership and sells you some part of the company.
Secondary Market
The secondary stock market refers to a market where stocks that have been sold by their original owners are traded between investors. The secondary market is important because it allows small investors to buy and sell shares of companies that they may not be able to get access to through the primary market. To invest in the secondary market, you will need a BO (Beneficiary Owner’s) account.
Opening a BO Account
To invest in the stock market in Bangladesh, you need to open a BO account in a broker house. A BO account is like a bank account, but you can open it at a broker’s house. You can deposit and withdraw money in your BO account just like a bank account.
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However, there is no need to keep the minimum deposit. You will then decide whether you want to invest in the primary market (IPO) or the secondary market (buy/sell shares). Nowadays, it is easy to open a BO account, deposit money, and buy and sell shares online using different broker’s websites.
To open a BO account, you will need to go through some steps.
A person can open two BO accounts in one name. One is an individual account; the other is a joint account. Bangladeshi applicants must have an account with any bank in Bangladesh. Nonresident applicants must have an FC or NRB account in Bangladesh.
Read Making Investment Decisions: Factors to consider when investing money
Upon choosing a brokerage house, you can open a BO account online using the broker’s website or the ways they provide to you. Fill out the form properly. Essential documents/information you will need are a photo of the applicant, a copy of the National Identity Card (NID) of the applicant, joint applicant and nominee (scan/photo), nominee’s picture, copy of the bank check (scan/photo) and picture of the second applicant in case of the joint account. Depending on the broker, you will need to pay Tk. 500- Tk. 2000 while opening a BO account.
According to the new rules, to apply for an IPO, an investor must have a minimum mature share of Tk. 20,000 in his BO account number. Shares will be allotted proportionally instead of the IPO lottery. In that case, an investor can deposit Tk. 10,000 for a share.
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How to Buy and Sell Stocks in Bangladesh?
You can buy and sell stocks by showing up in person at the brokerage office, calling the broker, or initiating a trade via the DSE mobile app. Brokerage houses typically charge a commission anywhere between .25% and .50 % for each transaction. So, if you buy Tk. 1000 stock, the brokerage will charge you Tk. 2.5 if the rate is .25%.
However, if you want to trade via DSE mobile app, you will have to register via the brokerage house. Despite being required monthly paid subscription the app has waved the fees due to the Covid 19 last year.
What Beginners Should Consider before Investing in Share Market
If you are interested in starting investing but don’t know where to start, these five tips can help.
Know Your Goals
Before you invest in the stock market, you will need to know your goals. What are you hoping to achieve by investing in the stock market? Do you want to make money? Are you looking to make some investments to fund your retirement? Or do you just want to learn about the stock market?
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Understand How the Stock Market Works
You will need to understand how the stock market works before you invest. You will need to understand what the stock market is, what it does, and what it isn’t. You will also need to understand how it affects the economy and what are the risk factors.
Learn How to Invest
Once you know how the stock market works, you can start learning how to invest. There are lots of different strategies to invest in the stock market, and it can be a bit confusing. You will want to learn about the different types of investments you can make and what they do.
Read Simon Sinek’s Golden Circle: Concept, Significance, Practice, Examples
Start Small
You will want to start small when you invest in the stock market. Start with a small amount of money, and keep your investments low. You can always increase your investment later on.
Be Patient
You will need to be patient when you invest in the stock market. It can take a while for your investments to grow, and it can be frustrating if they don’t. You will need to stay patient and be willing to wait for your investments to grow.
Final Words
Investing in the stock market can be a lucrative venture, but it is important to do your research and have a plan in place. Before investing in stocks, you should know the associated risks. Moreover, you should think ahead and stay prepared for potential stock market crashes. In this article, we have discussed a guideline for beginners to invest in the share market of Bangladesh. Hope it helps!
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World stocks lower after Fed confirms rate hike plans
Major global stock markets were mostly lower Thursday after notes from the Federal Reserve’s latest meeting confirmed expectations of more interest rate hikes but held no surprises to rattle investors.
London, Tokyo, Hong Kong and Sydney declined. Frankfurt and Shanghai gained. Oil prices rose.
Investors are uneasy over the impact of interest rate hikes in the United States and other Western economies to cool surging inflation. Wednesday’s Fed release showed board members support 0.5-percentage-point hikes at their next two meetings. That will weigh on economic activity but already was factored into stock prices.
There were no “hawkish or dovish surprises” or mentions of a bigger increase, Anderson Alves of ActivTrades said in a report.
In early trading, the FTSE 100 in London lost 0.1% to 7,516.42 while Frankfurt’s DAX gained 0.4% to 14,057.88. The CAC in Paris advanced 0.3% to 6,320.42.
On Wall Street, the future for the benchmark S&P 500 index was off 0.1% and that for the Dow Jones Industrial Average was little-changed.
Also Read: Asian stock markets higher after Wall St sinks further
On Wednesday, the S&P 500 index rose 0.9% after from this month’s Fed meeting showed board members agreed half-point rate hikes “would likely be appropriate.” That would be double the usual margin of increases.
In Asia, the Shanghai Composite Index gained 0.5% to 3,123.11 while the Nikkei 225 in Tokyo lost 0.3% to 26,604.84. The Hang Seng in Hong Kong sank 0.3% to 20,116.20.
The Kospi in Seoul declined 0.2% to 2,612.45 after the South Korean central bank raised its benchmark interest rate by 0.25 percentage points to 1.75%.
“With price pressures set to remain elevated in the near term, we expect the Bank to continue hiking in quick succession over the coming months,” Alex Holmes of Capital Economics said in a report.
Sydney’s S&P-ASX 200 ended 0.7% lower at 7,105.90.
India’s Sensex gained 0.8% to 54,173.63. New Zealand declined while Southeast Asian markets rose.
Investors also are worried about the impact of Russia’s February invasion of Ukraine and an unexpectedly sharp Chinese economic slowdown.
They hope the Fed can cool inflation that is running at a four-decade high without tipping the biggest global economy into recession.
The Fed raised its key interest rate by 0.5 percentage points at its May meeting in its most aggressive move in two decades. It indicated more hikes were to come.
The S&P 500 is coming off of a seven-week series of declines that came close to ending the bull market for stocks that began in March 2020.
In energy markets, benchmark U.S. crude 70 cents to $111.03 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price basis for international oils, gained 43 cents to $111.55 per barrel in London.
Stock market witness a massive fall on Sunday after Russia attacks Ukraine
Dhaka stocks exchange (DSE) witnessed a massive price fall on Sunday amid a rush of selling pressure due to global tension rising after the Russian invasion of Ukraine.
The benchmark index of the DSE fell 163 points, or 2.38 per cent, to 6,676 at the end of the exchange on Sunday, the lowest in the last 2 months.
Analysis of the daily exchange situation shows that at the beginning of the week, 365 companies or 96 per cent stock fell. The investors’ participation in the stock saw a dried up position with the day’s turnover stood at Tk 916.28 crore.
Also read: Whitening black money: Stock exchanges ask NBR to continue it in stock market
The Chittagong Stock Exchange (CSE) also witnessed a fall or eroded on Sunday. A total of 304 companies’ shares traded on the day of which 284 dropped prices, only 9 gained and 11 remained unchanged. The CSE lost 490 point (2.45 per cent) to 19500.
The country's capital market passed the 3rd week in February on a one-day rise and a three-day downward trend. During this week's trading, the index and the share price of most companies was downward.
As a result, the capital of the country's main capital market DSE investors lost their capital in the 3rd week, the same situation was seen in the transactions of Chittagong Stock Exchange (CSE).
According to the DSE data, during the week (February 20-24), the transaction on the DSE was Tk398.79. The previous week's transaction was Tk5 98.12 crore. In other words, the transaction decreased by Tk1989.23 crore during the week, which means stock price decreased by 33.17 per cent.
Also read: Stock markets continue to fall on the third day Tuesday
Of the 392 stocks and units traded on the DSE in the fourth week of February, 73 rose, 296 declined and 16 remained unchanged. Shares of five companies were not traded.
Whitening black money: Stock exchanges ask NBR to continue it in stock market
The country’s stock exchanges and merchant bankers want the National Board of Revenue to continue with the provision of whitening black money by investing in stock market with 5 per cent penalty in the upcoming budget for FY22-23.
This concession should be allowed without any question, said the members of Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and Bangladesh Merchant Bankers Association (BMBA) in their pre-budget discussion with NBR officials here on Tuesday.
They said that if this opportunity is continued, the capital market will be strengthened and the revenue of the government will increase.
Besides, money laundering from the country will also be decreased if the opportunity continues.
Taxpaying professionals will be able to invest their legally earned undisclosed money in the capital market, they said.
“I think this will reduce the risk of money laundering as the government's revenue increases,” said an official of DSE.
READ: Restaurant owners want reduction in VAT & NBR’s one-stop service
In order to further expand the capital market, it has also been proposed to reduce the corporate tax rate difference between listed and non-listed companies to at least 10 per cent and to give tax exemption to encourage SME companies to enter the capital market.
At present, the corporate tax rate of listed companies is 22.5 per cent while for non-listed companies is 30 per cent.
READ: Even government entities press NBR for tax exemption: NBR Chairman
However, tax rates for banks, insurance, financial institutions, telecom and tobacco companies are specifically fixed out of these rates.
Businesses urge BSEC to enlist goof companies in stock market
Business leaders have urged Bangladesh Security and Exchange Commission (BSEC) to enlist well-performing companies in the capital market.
They also demanded realization of tax with proper execution of tax difference between listed and non-listed companies to encourage companies listing the share markets.
The demand came during a courtesy call on the BSEC Chairman Professor Shibli Rubayat-Ul-Islam at its headquarter in Agargaon by a group of business people led by president of Dhaka Chamber of Commerce & Industry (DCCI) Rizwan Rahman on Sunday.
Also read: Meeting between FID, BB, BSEC fails to settle issues on share market investment
Discussion with the BSEC Chairman the DCCI President revealed that Bangladesh will need to invest (USD) $ 608 billion from 2016 -2040 in the infrastructure sector.
The current trend indicates that Bangladesh will be able to meet USD 417 billion investment in the infrastructure sector leaving a financing gap of $192 billion from 2016 to 2040, said a report of the ‘Global Infrastructure Hub’.
“The capital market can play a key role to reduce the investment gap in Bangladesh as the market has a huge potential to recover CMSMEs financing gap through encouraging businesses to source long-term capital reducing dependence on banks and NBFIs,” said Rizwan.
Also read: BSEC finds involvement of 9 companies in share price manipulation
The DSE SME platform needs to be effectively operationalized as well as listing rules for SME Platform needs to be relaxed, he said.
The businesses also urged to create a vibrant secondary bond market, priority needs to be given implementing enabling policy to develop market infrastructure, simplification of the bond issuance process, tax incentives for both issuer and investors, and credible credit rating by the national as well as international credit rating agencies.
No money from stimulus package enters stock market: Finance Minister
Finance Minister AHM Mustafa Kamal has said that remittances and undisclosed money have gone to the country’s stock market.
“But no money from government’s stimulus package went to the stock market”, he said while briefing reporters after the meeting of the Cabinet Committee on Public Purchase on Wednesday.
He made the remarks responding to a question regarding the media report that huge amount of money from stimulus package was diverted to the stock market by a section of business.
The government had provided financial support to different sectors under stimulus package to revive business from the shock of the Covid-19 effects.
Read: Finance Minister wonders why people moving to Europe risking lives
Kamal also defended the government’s position saying that remittance is absolutely owned by the senders.
“If any remittance earner or anybody after whitening the undisclosed money invests in the capital market, the government has nothing to do. This is their own choices where to invest their money in legal way”, he said.
He also said that the government has no plan to increase the current rate of incentives from 2 per cent on remittances.
He said declining trend of inward remittance in July will have no big impact on the economy.
Read: Corruption hurts me as it does others: Finance Minister
Replying to another question on the World Bank’s proposal on Rohingya rehabilitation the finance minister said he had no idea about the matter.
“If any suggestion comes from the World Bank with due merit to consider, concerned ministries would consider it. But if the suggestion does not carry any merit, they would not consider”, he said.