Share market
DSE trading ends with upward trend on Sunday
The Dhaka Stock Exchange (DSE) ended Sunday's trading with an upward trend.
The DSE's broad index increased by a record 73.43 points to 5178.86 points, compared to 5105.43 points in the previous (Thursday) trading session.
The shariah-based DSES index increased by 12.40 points to 1152.45 points, and the DS30 blue-chip index was up by 26.42 points to settle at 1908.32 points.
DSE index gains 30.88 points as 211 stocks rise in early trading
The stock market trading saw pace in the day as most of the stocks lost their prices in the previous session. The small investors in the previous session were trying to sell their stocks in fear of losing price.
A total of 10.28 crore shares and units changed hands through 100962 transactions, seeing a decrease compared to the previous session of 11.34 crore shares, whose transaction number was 102838.
A total of Tk 304.1 crore shares and bonds were traded in the DSE on Sunday, which is Tk 47 crore less than the previous session on Thursday.
Out of the 390 issues (companies) traded, 232 advanced, 89 declined and 69 remained unchanged at the DSE.
The port city bourse, CSE, also settled on an upward trend of trading. The All Share Price Index (CASPI) increased by 129.85 points and settled at 14304 points.
On the CSE, 166 companies participated in trading. Of them, 87 companies recorded price gains, 47 companies saw declines, and 32 companies remained unchanged.
At the CSE shares and units of 25.4 akh were changed hands through 1261 transactions on Sunday. The value of trading shares and units is Tk 5.7 crores, which was Tk 4.27 crore on the previous day (Thursday).
6 days ago
Stock market: Trading ends on downtrend; index falls by 42.33 points
The Dhaka Stock Exchange (DSE) concluded Wednesday's trading session with a decline, as share prices of 291 companies dropped amid selling pressure from small investors.
The benchmark DSE broad index, DSEX, fell by 42.33 points, closing at 5,124.49, down from 5,166.83 points in the previous session on Tuesday. The shariah-compliant DSES index dropped by 12.43 points to 1,142.10, while the DS30 blue-chip index decreased by 14.19 points, ending the day at 1,889.42.
DSE benchmark index drops by 10.71 points as 171 companies’ price fell in 1 hours
Trading activity slowed considerably, with a total of 12.45 crore shares and units changing hands through 116,982 transactions—down from 16.32 crore shares in 131,043 transactions the previous day. The total trade value stood at Tk 304.2 crore, marking a Tk 80 crore decrease from Tuesday.
Market analysts attributed the downward trend to heightened selling pressure as small investors, worried about potential losses, rushed to offload their holdings.
Out of 399 issues traded on the DSE, 291 companies recorded declines, 50 advanced, and 58 remained unchanged.
The overall sentiment extended to the port city bourse, the Chittagong Stock Exchange (CSE), where the All Share Price Index (CASPI) dropped by 75.36 points, settling at 14,364.44.
DSE ends Tuesday’s trading on downtrend, transactions hit Tk 383 crore
On the CSE, 195 companies participated in trading. Among them, 40 saw price increases, 119 recorded declines, and 36 remained unchanged. A total of 22.79 lakh shares and units were traded through 1,555 transactions, with a total turnover of Tk 4.79 crore—significantly lower than Tuesday's Tk 6.97 crore.
DSE index rises by 25.24 points in early trading; Tk 97.2 crore traded in first hour
1 week ago
DSE gains 17.65 points amid declining trading volume
The Dhaka Stock Exchange (DSE) saw its key index edge up by 17.65 points on Wednesday, despite a sharp decline in trading volume compared to the previous session.
The benchmark DSEX index closed at 5,316.07 points, while the Shariah-based DSES index rose by 1.95 points to 1,184.95. Meanwhile, the DS30 blue-chip index gained 2.10 points, ending the day at 1,972.20.
However, trading volume at the DSE fell significantly. Shares and mutual funds worth Tk 479.8 crore changed hands, down by Tk 97.8 crore from Tuesday’s Tk 577.6 crore. A total of 13.17 crore shares and units were traded through 1,161,189 transactions.
Out of the 394 companies that participated in Wednesday’s trading, the prices of 152 stocks rose, 175 declined, and 67 remained unchanged.
At the Chittagong Stock Exchange (CSE), the CASPI index inched up by just 0.18 points to close at 14,781.32. The day’s transactions at the CSE were notably sluggish, with a turnover of Tk 4.36 crore—far lower than Tuesday’s Tk 12.62 crore.
A total of 195 companies were traded on the CSE, with 69 stocks gaining, 94 declining, and 32 remaining unchanged. Overall, 18.76 lakh shares and units were traded through 2,162 transactions.
1 month ago
Stock market slumps as DSEX hits 3-month low, most companies see price drops
Stocks in Dhaka saw a sharp decline last week, with the DSEX falling below 5,300 for the first time in three months as anxious investors sold off to prevent further portfolio losses.
The market remained dominated by sellers throughout the week, extending its losing streak for the fourth consecutive week.
The market started the week in free fall, hitting session lows across all four days as retail investors, in particular, engaged in panic selling.
The main index of the Dhaka Stock Exchange (DSE), DSEX, finally settled at 5,258, down over 164 points or 3.03 percent from the previous week. The DSEX has lost 476 points in the last four weeks.
Read more: Small investors’ woes in stock market not over yet
Investors concerned continued to shed their holdings after noting that heavy-weight issues, including mutational companies, continued to fall in the past few weeks, putting further pressure on indices.
Investors preferred to trim their equity exposures and adopted a wait-and-see approach amid uncertainties surrounding earnings declarations for June-ending companies.
Macroeconomic and regulatory uncertainties also acted as negative catalysts that ignited the selling spree, allowing the bears to retain control for a prolonged period.
DSEX, the broad index of the Dhaka Stock Exchange, lost 164.1 points, or 3.0 percent, to settle at 5,258 points. Investors' participation in the market continued to fall by 13.3 percent to TK 3,180 million as compared to TK 3,667 million in the previous week.
Read more: BSEC Chairman urges stakeholder cooperation for stock market reforms
Investors were primarily active in the banking sector (20.4%), followed by the pharmaceutical sector (16.5%) and the IT sector (11.3%). Sectors closed in the red, with the services sector (-8.8%) experiencing the largest decline.
Five large-cap stocks such Islami Bank, Brac Bank, British American Tobacco, Renata and Beacon Pharma together accounted for one-fourth of the index's decline during the week, according to EBL Securities.
This week, Tk 52 billion was wiped out from the market capitalization of the DSE, which now stands at Tk 6,691 billion. Over the past four consecutive weeks, the market capitalisation has declined by a total of Tk 242 billion.
The market capitalisation is calculated by multiplying a company’s total number of outstanding shares by its current market price.
Read more: Share Market Investment Guide: How to Invest in Stocks in Bangladesh
The blue-chip DS30 index, a group of 30 prominent companies, also lost 54 points to close at 1,930 while the DSES index, which represents Shariah-based companies, shed 32 points to 1,174.
2 months ago
Small investors’ woes in stock market not over yet
Small investors in Bangladesh’s stock market remain trapped, with their woes persisting due to a lack of confidence, weak governance and economic instability, despite assurances from regulators of an eventual market rebound, according to experts.
“No one, not even the regulator or stock market authorities, pays heed to our screams,” said Saiful Islam, a grocery owner and one of the affected investors,” in a broken voice while talking to UNB regarding the capital market.
Saiful invested Tk 14 lakh in 2010 to buy shares of different companies listed in the Dhaka Stock Exchange (DSE).
Dhaka stocks drop in early trading today
After graduating in 2004, Saiful found no suitable job and then started a small business in the Motijheel area in 2007 with support from his father-in-law.
He made a good profit in the business and invested the money in the share market.
In 2010, Saiful invested around Tk 14 lakh, of which Tk 6 lakh was his own and Tk 8 lakh he borrowed from relatives. All of his investment was stuck in shares of different companies due to a major scam in the capital market in 2011.
Like Saiful, thousands of investors lost their hard-earned capital in 2011, and after that, some were able to regain part of their capital. However, most of them left the capital market, losing nearly all their investment.
Many such investors are still in the market, hoping for a rebound in the DSE, but without any good news.
DSEX drops by 43 points as prices of 288 companies fall, Chittagong Stock Exchange follows suit
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. The BSEC advises investors to remain patient.
Analysts say that the small investors’ woes in the capital market are unlikely to end before the national election as their wait for a good time is prolonged by Bangladesh’s recent ‘instability’.
The small investors’ shares were once stuck at the floor price (minimum sale rate) due to the overall economic downturn. The floor price barrier ended after the change in government in Bangladesh.
However, the prices of most companies' shares have not increased to the desired level for small investors.
Dhaka Stock Exchange sees early week gains
This has been painful for many unfortunate small investors in 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 the stock markets will rebound with the enlistment of new companies and the injection of large investments. However, the situation for small investors seems hopeless.
A large number of shareholders have been stuck with their investments in the capital market for over a decade amid fading hopes.
Experts' Analysis
Dr ABM Mirza Azizul Islam, an economist and former adviser of a caretaker government, told UNB that there has been a crisis of confidence among investors 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. 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 added.
Dhaka Stock Exchange slips below 5,400-point as Islami Bank shares plummet nearly 10%
“That means investors have to be assured 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 solve the market problem. But it is not easy at all,” said Dr Azizul Islam.
Dr Abu Ahmed, Chairman of the Investment Corporation of Bangladesh (ICB) and 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, he said, the problem is that there are fewer good companies. As a result, it is a win-win situation for manipulation and syndicates. “All in all, the stock market is currently in an unstable condition and the situation is gradually getting worse. The passage from here is very difficult,” he said.
Ahmed also noted that people are sometimes investing in weak shares with the expectation of a big profit, which is not the right way of investing due to a lack of financial literacy.
Read mnore: Share Market Investment Guide: How to Invest in Stocks in Bangladesh
2 months ago
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
1 year ago
Banks’ additional investment term in share market extended for a year
The Ministry of Finance has extended the tenure of banks’ additional investment in the capital market for another year.
The Financial Institutions Division of the ministry extended the deadline till December 31, 2023.
Last Monday, the Deputy Secretary of the Financial Institutions Division of the Ministry of Finance issued the notification. The notification was sent to Bangladesh Bank yesterday.
Read more: Despite central bank's green light, banks shy to invest in capital market
Time has been given till December 31, 2023 to bring down the additional investment of banks including BDBL in the share market (collectively or individually in the case of holding shares of other companies) to the prescribed limit as stated in the Bank Companies Act, 1991.
Besides, in the case of holding the shares of other companies within that extended period, in the case of holding the shares of any company collectively or individually, the over-investing banks cannot increase the respective investment (in the ratio) based on August 31, 2022 in any order.
2 years ago
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).
Read Accelerating Asia Invests in Three Bangladeshi Startups
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.
Read B’Yeah: Shaping up the Youth Entrepreneurship Prospects in Bangladesh
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?
Read Neuromarketing: How brands psychologically manipulate the consumers
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!
Read How to Choose the Right Business Idea?
2 years ago
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.
Read: Tk 850-crore revolving fund for capital market in the offing
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.
3 years ago
BSEC finds involvement of 9 companies in share price manipulation
The probe committee, formed by the Bangladesh Security and Exchange Commission, has primarily found the involvement of nine companies in the recent share market price manipulation.
“Further investigation is underway. The matter is thoroughly being scrutinized, and the people concerned will be called to be present before the investigation committee, if necessary,” said BSEC spokesperson Mohammad Rezaul Karim on Saturday.
Also read: Insider trading: BSEC probes Dominage Steel for 'unusual' stock movement
According to the BSEC, the companies are: Fu-Wang Ceramics Industry Ltd, Beacon Pharmaceuticals Limited and Anwar Galvanizing Limited in the engineering sector; Paper Processing & Packaging Ltd, National Feed Mill Ltd, Dhaka Dying, GBB Power Limited in the energy sector, and Emerald Oil Industries Ltd and Bangladesh National Insurance.
3 years ago