The Dhaka Stock Exchange (DSE) index dropped by 52.98 points within the first hour of trading on Sunday, reflecting a downturn in Bangladesh's main capital market. During this initial hour, trading volume reached Tk 71.2 crore. A total of 375 companies participated, with 248 experiencing price declines, 80 showing gains, and 47 remaining unchanged. Read: DSE index hits four-month low amid investor concerns The primary DSE index, DSEX, fell by 52.98 points to stand at 5,061.61. The DSES Shariah index saw a 12.91-point decrease, settling at 1,131.09, while the DS30 index, tracking blue-chip stocks, dropped by 18.40 points to 1,860.77.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondoker Rashed Maqsood emphasized on Wednesday that the country’s capital market should be the primary source of long-term financing for investment in Bangladesh's economic future. He stressed the need for collaboration and transparency between the regulatory body and the Dhaka Stock Exchange (DSE), signaling a shift towards a more participatory approach. Chinese firm to invest $5.85 million in Adamjee EPZ “Everyone has a significant role to play in achieving this goal,” Maqsood said during a discussion with the DSE's board of directors. “The BSEC will only intervene in policy matters, ensuring that the relationship between BSEC and DSE remains participatory, transparent, and fair.” The meeting took place at the DSE boardroom, where Maqsood outlined that the BSEC aims to foster a fair and structured approach in its dealings with the stock exchange, rather than imposing unilateral decisions or acting outside the legal framework. All RMG factories except 3 open in Savar, Ashulia, Gazipur The discussion was attended by several high-ranking officials, including BSEC Commissioners Mohsin Chowdhury, Ali Akbar, and Farzana Lalarukh. Leading the DSE delegation was Chairman Mominul Islam, accompanied by members of the DSE Board of Directors.

Bonds are used by issuers to raise money from the capital market. In layman's terms, bonds are essentially instruments of debt created between the lender and the borrower. During certain economic situations, there might be a need for capital generation. As a result, it's normal to see a host of bonds being circulated in the market.  But how do you know which bond is right for you? What factors should you consider before investing in a certain bond? Let’s find out.  Types of Bonds  There are several ways to classify bonds. The most common ones are based on issuer, maturity, interest payment structure, and features. Let’s look at the different bonds under each basis.  Based on Issuer  Treasury Bonds  Treasury bonds are issued by the central bank directly on behalf of the government. For short-term investments, an alternative to treasury bonds can be treasury bills.  Read more: How to Buy Stocks: 10 Key Factors to Check Municipal Bonds  Countries with provincial and local government structures may issue municipal bonds based on the government entity. It works the same way as treasury bonds. Agency Bonds Agency bonds are issued by government-affiliated or controlled entities. For example, a government-sponsored enterprise like Biman can issue bonds to raise capital to improve its infrastructure and service.  Investment Grade Bonds  Investment-grade bonds are issued by entities with high credit ratings. Typically the coupon rate for such bonds is low and the investment is more secure.  Junk Bonds  These bonds are issued by companies with low credit ratings and high default probabilities. The returns from these bonds are high whereas the overall investment is less secured.  Supranational Bonds  These types of bonds are issued by international entities like investment banks and the World Bank. The denomination of these bonds is not geographically limited.  Read more: Premortem Analysis: How to Anticipate Failure Based on Maturity  Short Term Bonds Short-term bonds usually have a maturity of less than three years. Treasury bills also fall under the short-term bond structure.  Medium Term Bonds Medium-term bonds have a maturity period between 4 to 10 years.  Long Term Bonds Long-term bonds usually have a maturity period of over 10 years. It also includes perpetual bonds.  Read more: How to Buy Bangladesh Government Treasury Bond: Everything You Need to Know Based on the Interest Payment Structure  Fixed-Rate Bonds  Fixed-rate bonds usually have a fixed coupon rate throughout the maturity period of the bond. For example, the Bangladesh Government Treasury Bond is a fixed-rate bond.  Floating-Rate Bonds  Floating-rate bonds can fluctuate compared to a benchmark rate set at the start of bond sales. Here, the coupon rate varies during the lifetime of the bond.  Zero-Coupon Bonds  These types of bonds do not pay any periodic interest rate. Instead, these bonds are sold at a discount and the investor gets back the face value of the investment upon maturity.  Read more: Gold vs Diamond: Which Should You Choose for Investment? Based on Features  Convertible Bonds Bonds that can be transformed into predetermined shares of the borrowing entity.  Callable Bonds Bonds that can be redeemed by the issuer before it reaches maturity.  Puttable Bonds Bonds that can be sold by the investor to the issuer at a predetermined price before maturity.  Read more: Shares vs Bonds: What is the Ideal Investment Opportunity Perpetual Bonds Bonds that do not have any maturity date.  Inflation-Adjusted Bonds Bonds whose coupon rate and the principal are adjusted per the inflation rate. Sukuk Bonds issued in line with the Islamic laws.  Read more: How to Raise Angel Investment for Startups in Bangladesh

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

Commerce Minister Tipu Munshi today said that both financial literacy and good business organizations are must to boost investment in the capital market. The stock market is a crucial sector for the country’s economy, so knowledgeable investors can drive the capital market to be sustainable, he said. The minister said this while speaking as the chief guest at the inaugural session of the Arthosuchak Capital Market Expo-2023, held at Institute of Diploma Engineers’ Bangladesh (IDEB) in Dhaka. Tipu Munshi said that more than 50 percent of money is taken from the capital market in developed economies. “We don’t have that situation in our country. Loans are taken from banks, which is creating several problems in the banking sector. If even 50 percent of the money came from the capital market, business and trade in our country are bound to improve,” the minister said. A group with vest interest is cleverly defining the country’s political and economic development – spreading rumours and lies and trying to mislead people, the minister said. Read more: BSEC working to enhance financial literacy for capital market investors: Prof Shibli “The country has progressed so much, and they say, it is not right. But they can no longer deny the visible improvement. Those who are doing this, they do not want development of this country,” Munshi said. Professor Shibli Rubayat-Ul-Islam, chairman of BSEC, attend the function as special guest, while Ziaur Rahman, editor of Arthya Suchak presided over the program. Chairman of Dhaka Stock Exchange (DSE) Md Eunusur Rahman, Chittagong Stock Exchange (CSE) Chairman Asif Ibrahim, Bangladesh Publicly Listed Companies Association (BAPLC) President Anis Ud Dowla, Bangladesh Merchant Bankers Association (BMBA) President Sayedur Rahman and Dhaka Brokers Association (DBA) President Richard De Rosario, among other, spoke in the function. Read more: IMF for capacity building of capital market in Bangladesh

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. Read more: Shakib’s company involved in share manipulation, DSE investigation finds 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.

The chairman of the Bangladesh Security and Exchange Commission (BSEC) Prof Shibli Rubayat-Ul-Islam has said that the capital market regulator is working to enhance the public's financial literacy so they can invest consciously and profitably. To this effect, the BSEC is cooperating with the Ministry of Education and the National Curriculum and Textbook Board (NCTB) to include a chapter on the capital market in the secondary and higher secondary levels textbooks. Talking to UNB, Prof Shibli acknowledged that sometimes people are being influenced to invest their hard-earned money or chasing misinformation.  "If they can become financially literate, then no one can cheat them," he said. Read more: Under, over-invoicing to stop if commodity exchange is launched: BSEC Chairman With a nationwide average of 24.6 percent, the financial literacy score in Bangladesh is still quite low, according to a recent survey by the Bangladesh Bureau of Statistics and Brac Business School. Respondents with an educational qualification below SSC, people aged over 50, self-employed people, Dhaka natives, housewives, and farmers have the lowest scores, according to the 2022 survey report. The BSEC is working to introduce real estate investment trust, or REIT, Pink, and Orange bonds in the capital markets by 2023. Through Pink bonds, small entrepreneurs can collect money for investment while SMEs and large entrepreneurs can collect money through Orange bonds.  Both the coloured bonds will be introduced to encourage women investors as well as empowering them in the financial sector, Prof Shibli said. Read more: Visiting IMF team will meet BSEC to discuss capital market on Nov 7 Besides, the BSEC has a special bond plan for the garment and textile sector so that the entrepreneurs can collect money from the capital market to expand their business. At the same time the investors will encourage investment in this secured sector, he said. Prof Shibli said the country’s development projects cannot be completed depending on revenue only - project-based infrastructure bonds and municipal bonds for fund collection from the stock market would be a diversified funding scope for development. If the project authority provides dividends of around 12-13 percent, then people will invest money in the project-based bond market instead of depositing their money in FDRs and saving certificates, he said. He said Bangladesh’s investment demand is over USD $800 billion for infrastructure and other service sector development in line with LDC graduation, which will not be possible to collect from domestic sources. But a large portion is possible through the capital market. Read more: Takes 6-12 months to identify a share market manipulator in existing system: BSEC Chairman Replying to a question he said that investors who have the patience to invest in the capital market and who want to secure investment scope should invest in the bond market and get greater dividends than their returns from IDFs and saving certificates. Mutual funds, Treasury bonds’ and others are trading in the capital markets, where anyone or ordinary people can invest money. He said that the mutual funds are providing dividends of around 10 to 20 percent  during the last 10/12 years. "Those who have financial knowledge can invest in secondary share trading, and try to gain profit. They should prefer bonds and mutual funds," the BSEC chairman said. The regulator has pushed through dozens of reforms in the capital market, from imposing company audit systems and towards accountability of brokerage houses during his tenure. As a result, the capital market will be  well-positioned in the future. Read More: Financial literacy: BICM reduces master's program fees by 50% “We just planted the seed, from which the tree or plant will be visible within the next few years,” Prof Shibli said.

Visiting the delegation of the International Monetary Fund (IMF) in a meeting on Monday (November 07, 2022) suggested the capacity building of the Bangladesh Securities and Exchange Commission (BSEC) to act in a way so that people from various backgrounds are included in the market. BSEC’s executive director and spokesperson Razaul Karim told UNB that in the scheduled meeting the IMF team suggested product diversification in the stock market to ensure the involvement of the people from all parts of the society. Read more: IMF team attends BERC presentation on setting power, gas tariffs They (IMF) want to know details about the commodity exchange market, real estate, and other sectors' enrollment in the share markets. The IMF will support both technological upgradation and human resource development of the capital market so that the market can act maintaining the global standard, he said. Rahul Anand, IMF Mission Chief to Bangladesh, led a seven-member delegation of the IMF while Professor Shibli Rubayat-Ul-Islam, Chairman of BSEC, along with the members of BSEC took part in the discussion. Read more: IMF’s conditions for loan: TIB watchful about “discriminatory implications” Earlier, the IMF team met for discussion with the finance ministry, Bangladesh Bank, Bangladesh Bureau of Statistics, Power Division, Bangladesh Energy Regulatory Commission, and Bangladesh Garment Manufacturers and Exporters Association (BGMEA). As part of the ongoing discussion on Monday, the IMF team met with the top management of BSEC and gave some suggestions to develop the capacity of the regulator. The delegation of the Washington-based global lender started visiting Bangladesh on October 26, to discuss and realise the economic situation as the country sought a $4.5 billion loan as budgetary support. Read more: Bangladesh doesn’t need to borrow from IMF if dignity is sacrificed: FBCCI President Bangladesh so far never seeks such a big loan from a global lender. The wave of the Covid-19 pandemic and the Russia-Ukraine war have affected the country’s foreign exchange reserves. As a result, Bangladesh ministry of finance officially applied to the IMF for $4.5 billion loan in July this year.

The International Monetary Fund (IMF) will sit in a meeting with the Bangladesh Securities and Exchange Commission (BSEC) on November 7 to discuss issues including the current status of the capital market and the imposition of floor prices. Bond market development, risk management and control, compliance infrastructure and enforcement measures in the market will also be discussed in the meeting, according to officials involved with the process. Read more: Bangladesh Bank will go slow in calculating reserves following IMF formula BSEC spokesperson Mohammad Rezaul Karim told UNB on Monday that the regulator is making all preparations for the meeting. BSEC Chairman Shibli Rubaiyat-ul-Islam, Commissioners, and Executive Officers will be present in the meeting, he said. To prevent the ongoing fall in prices, the BSEC floor price system was imposed on the capital market on July 28 this year. Although its market is on the rise, two-thirds of the companies listed in the capital market are currently stuck at the floor price. Investors are not able to buy and sell shares of these companies despite their desire. Read more: Talks for loan with IMF satisfactory, says central bank spokesman As a result, the capital market transactions are continuously decreasing. A delegation of the global lender IMF from Washington arrived in Dhaka on October 26 to discuss a $4.5 billion loan sought by Bangladesh amid dwindling foreign currency reserves.

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. Read Strengthened capital market to drive growth: Finance Minister 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.