Stocks
Lack of financial education among traders lead to market volatility: LankaBangla Survey
The current market volatility is due to a generally low level of financial education among traders, herd instinct, and poor certification requirements for trading eligibility, according to 88% respondents in a recent sentiment survey.
The Bangladesh Capital Market Sentiment Survey 2024 by the top-tier brokerage firm LankaBangla Securities also found the impact of financial projections through equity research publications, where the majority believes it will improve investment decision-making in the market under strict supervision of the regulator.
The flagship annual survey at its 12th continuation had over a hundred participants from various backgrounds, including investment bankers, managing directors, chief executive officers (CEOs), brokerage executives, service holders, retail investors, businessmen and students.
According to the survey, 37% of respondents perceived the capital market’s performance in 2023 as bad, with factors such as floor price, declining investor confidence, and fear of manipulation contributing to this sentiment. Some blamed the lack of regulatory reforms, the taka’s depreciation and the liquidity crisis for the situation. However, 5% said 2023 was very good.
A weak regulatory framework and lack of confidence would pose the biggest risks in 2024, followed by high-interest rates, a lack of good stocks, increased foreign sell-off, decreased liquidity flow, and interventions through frequent policy changes by different regulatory stakeholders, survey respondents anticipated.
While determining the biggest risks to the Bangladesh economy in 2024, the respondents ranked inflation and the crisis in the banking sector higher than global economic conditions, the war in Ukraine, weak exports, low remittances, energy crisis, and currency depreciation. Nearly half of the respondents categorically asked for more supportive policies by the central bank.
Over 56% believed inflation will increase in 2024, while 50% fear that local currency will depreciate further.
Respondents also offered suggestions for economic improvement, including export diversification, trade treaties, rational tax structures, tax authority reform, and the use of technology to detect tax evasion. However, they cautioned regarding higher interest rates, slower private credit growth, current account deficit, and weaker credit rating.
The survey said majority respondents feel brokerage professionals are not qualified enough to recommend stocks to buy and sell, and equity research reports by analysts help make better investments.
Two-thirds of respondents expressed dissatisfaction with the level of corporate governance, and nearly one-third considered it average in Bangladesh. Fifty-eight percent of respondents agreed that the Bangladesh Securities and Exchange Commission faces capacity constraints.
According to the survey, at the end of 2024, the stock market may remain moderately bullish, except for a majority. Gold and equity are being perceived as the most lucrative asset classes, where investors are looking most for pharmaceuticals, IT, insurance, food and allied and bank stocks.
However, questions regarding how much of the existing capacity the regulator is using in the interest of a higher integrity market were not a part of the survey.
Major General Mohammad Quamruzzaman (retd) has stepped down from his role as an independent director of the board of the Dhaka Stock Exchange, citing personal reasons.
He also served as a member of the DSE’s Nomination and Remuneration Committee (NRC).
Quamruzzaman was appointed to the DSE board on 1 September 2024, following the fall of the Awami League-led government. After serving for nearly one year and nine months, he submitted his resignation on Saturday (24 May).
Speaking to Quamruzzaman confirmed his resignation, saying, “Yes, I have resigned as an independent director for personal reasons.”
Md Shafiqur Rahman, Deputy General Manager of Public Relations and Publications at the DSE, said Quamruzzaman submitted a resignation letter mentioning personal reasons behind his decision.
“The DSE board will now take a decision regarding the resignation,” Shafiqur Rahman said.
He also indicated that Quamruzzaman may be planning to join another company, which could have influenced his decision to resign.
Earlier, another independent director of the DSE board, Shahnaz Sultana, also resigned from her position. She was likewise a member of the NRC.
According to the DSE annual report, Shahnaz Sultana is the CEO and Chief Consultant of FINS Alliance Risk Advisory and Consultancy and has served as the Founder and Chairperson of the WE Global Women Foundation since 2020.
The Bangladesh Securities and Exchange Commission (BSEC) has today approved appointment of Ms. Nuzhat Anwar as the new Managing Director of Dhaka Stock Exchange PLC. (DSE).
Ms. Nuzhat Anwar brings over two decades of experience in financial markets, banking, and development finance. Prior to her appointment, she worked at the International Finance Corporation (IFC), the private sector arm of the World Bank Group, where she held multiple senior leadership roles across Africa and South Asia. Her positions included Resident Representative for Liberia and Sierra Leone, Senior Country Officer for Bangladesh covering Bangladesh, Bhutan, and Nepal, and acting Cluster Manager during the COVID-19 pandemic and the subsequent transition period.
Ms. Anwar also served as an IFC Country Officer in Botswana and Namibia, where she played a key role in establishing IFC’s presence in Gaborone and advancing a sustainable investment program, including IFC’s first investment in Botswana. She offers deep expertise in capital management, treasury and liquidity, transaction services, portfolio optimization, and market advocacy. Earlier in her career, she spent 16 years with Citibank Bangladesh and Standard Chartered Bank Bangladesh in various senior management roles.
Ms. Anwar holds a Master’s degree in Commerce (Finance) from the University of Dhaka.
On her appointment as the Managing Director of DSE, the Chairman of the Board of DSE Mr. Mominul Islam said, “We are pleased to receive the approval of BSEC for appointment of Ms. Anwar as the new Managing Director. Over the last one year the NRC and Board of have worked hard to recruit a competent leader as the MD of DSE. We are confident that Ms. Anwar, with her excellent leadership trait, vast experience in the financial sector in home and abroad and deep passion for transformation in the Capital Market of the Country, is the right candidate to lead DSE in the days ahead. Now, we will complete the internal processes to onboard Ms. Anwar at soonest.”
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
