Stocks
Women’s Participation Key to Stock Market Growth: BSEC Chief
The growth of Bangladesh’s stock market will accelerate with more female investors participating alongside their male counterparts, stated Professor Shibli Rubayat-Ul-Islam, Chairman of the Bangladesh Securities and Exchange Commission (BSEC). He emphasized that women can play a significant role in the country’s economic development by becoming active in the financial market.
Speaking at the “Women in the Stock Market and Golden Jubilee of Independence Awards 2023” event held at the Pan Pacific Sonargaon Hotel in Dhaka on Wednesday evening, he highlighted the potential of women in smart investment from savings. He said that as more women enter the stock market, the greater the market’s growth will be, positively impacting the overall economy.
The BSEC Chairman also remarked that the combined strength of the money market and capital market is essential for a country’s economic progress. He reiterated the need for short to mid-term business activities to be financed through the money market, while long-term investments should be facilitated by the capital market.
The ceremony was presided over by BSEC Chairman Shibli Rubayat Ul Islam, with special guests including State Minister for Finance Wasika Ayesha Khan and Secretary of the Financial Institutions Division of the Ministry of Finance Abdur Rahman Khan. Additionally, BSEC Commissioners Sheikh Shamsuddin Ahmed, Abdul Halim, Rumana Islam, and ATM Tariquzzaman were in attendance.
Dhaka Stock Exchange DSE, Bourse on the first working day of the week, 23th June, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.
486 crore 74 lakh taka shares were traded on this day. 33 crore 80 lakh more tradings were done in DSE today compared to the previous workday, June 20th, Shares worth Tk 452 crores 94 lakh shares were traded last time, Thursday
The benchmark DSEX increased 3.00 points or 5,247 The Shariah-based index DSES added 0.59 points or 1,146, and the blue-chip index DS30 gained by 2.02 points or 1,877.
Of the issues traded, 111 advanced, 232 declined and 55 remained unchanged.
Salvo Chemical Industry Limited ranked top gainer on DSE, the share price increased by Tk 4.20 paisa or 10.00 percent. On this day, the share was last traded at Tk 46.20 paisa.
Northern Jute Manufacturing Co. Limited ranked top loser on the DSE, the share price dropped by Tk 3.70 paisa or 3.00 percent. On this day, the share was last traded at Tk 120.00 paisa.
DSE topped on trade is Sea Pearl Beach Resort & Spa Limited 20 crore 82 lakh takas of company shares have been traded.
A total of 59 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 15 lakh 63 thousand 615 shares of the companies were traded. The financial value of which is 44 crore 94 lakh taka.
By June 20 this year, approximately 102,000 beneficiary owners’ (BO) accounts were emptied, and market capitalization plummeted by Tk 1.37 lakh crore due to prolonged poor returns, frustrating investors and prompting them to exit the market.
Data from the Central Depository Bangladesh Limited (CDBL) reveals that in the six months leading up to June 20, the total number of BO accounts with zero share balance surged by 34% to 398,000, while BO accounts with share balances fell by 91,651 to 1.312 million.
During this period, the benchmark index DSEX of the Dhaka Stock Exchange (DSE) dropped over 1,000 points, closing at 5,244, while the blue-chip index DS30 fell by 218 points, settling at 1,875. The market capitalization at DSE also declined by over 17%, ending at Tk 6.43 lakh crore on June 20.
Rising interest rates, taxes on individual investors’ capital gains from listed securities, and a severe confidence crisis due to regulatory interventions are collectively impacting stock market performance, according to stockbrokers and market experts.
The capital market has been grappling with economic uncertainty, exacerbated by the Russia-Ukraine war. In response to the crisis, the Bangladesh Securities and Exchange Commission (BSEC) imposed a floor price in 2022 to prevent a freefall in share prices. Despite lifting the restriction after more than two years, the bearish trend persisted. Consequently, BSEC reintroduced protective measures, including reducing the circuit breaker limit from 10% to 3%.
Abu Ahmed, former economics professor at the University of Dhaka, explained that unprecedentedly high interest rates, especially on treasury bonds, have driven large investors to shift their funds from the stock market to bonds. “With treasury bond rates steady at around 12%, it’s a risk-free, preferred choice for many investors,” he said. This shift has resulted in a fund crisis in the market, he added.
Ahmed also highlighted a decline in the number of reputable companies entering the market and underperformance in key sectors like banks, insurance, non-bank financial institutions, and manufacturing companies. He pointed out that a lack of good governance and long-term policy support has eroded investor confidence. Additionally, the government is withdrawing previously granted investment benefits.
Md Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), stated in a June 11 press conference that factors such as the absence of high-quality initial public offerings (IPOs), governance issues among stakeholders, and the proposed capital gains tax are diminishing investor confidence. He urged the government to withdraw the capital gains tax, asserting that it exacerbates an already bleak market.
Finance Minister AH Mahmood Ali proposed a 15% tax on individual investors’ capital gains exceeding Tk 50 lakh from listed securities in the upcoming fiscal year budget, amid a market downturn. However, Abu Hena Md Rahmatul Muneem, chairman of the National Board of Revenue, argued in a post-budget press conference that taxation was not the root cause of the market’s issues, citing that long-standing tax incentives had not spurred market growth.
Despite these challenges, the benchmark index of the DSE has risen over the last four trading sessions, recovering 174 points to close at 5,244 last Thursday. Stockbrokers attribute this uptick to investor optimism about a potential rationalization of the capital gains tax proposal and a concessional salvage fund for the state-owned Investment Corporation of Bangladesh (ICB).
EBL Securities noted in their daily market commentary that rumors about the possible withdrawal of the proposed capital gains tax have instilled some confidence among cautious investors.
Dhaka Stock Exchange DSE, Bourse on the last working day of the week, 20th June, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.
452 crore 94 lakh taka shares were traded on this day. 206 crore 50 lakh more tradings were done in DSE today compared to the previous workday, June 19th, Shares worth Tk 246 crores 44 lakh shares were traded last time, Wednesday
The benchmark DSEX increased 82.74 points or 5,244 The Shariah-based index DSES added 24.78 points or 1,146, and the blue-chip index DS30 gained by 31.34 points or 1,875.
Of the issues traded, 288 advanced, 55 declined and 50 remained unchanged.
Linde Bangladesh Limited ranked top gainer on DSE, the share price increased by Tk 424.10 paisa or 43.04 percent. On this day, the share was last traded at Tk 1409.40 paisa.
Global Heavy Chemicals Limited ranked top loser on the DSE, the share price dropped by Tk 1.20 paisa or 3.00 percent. On this day, the share was last traded at Tk 38.90 paisa.
DSE topped on trade is Asiatic Laboratories Limited 14 crore 63 lakh takas of company shares have been traded.
A total of 45 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 71 lakh 39 thousand 978 shares of the companies were traded. The financial value of which is 113 crore 38 lakh taka.
