Bangladesh Stock Market

Bangladesh Stock Market

  • By rakibul

  • 22 Oct, 2019

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The stock market is referred to a collection of markets and exchanges where shares of publicly held companies are issued, bought and sold. These activities are conducted through institutionalized formal exchanges or over-the-counter (OTC) market places. A set of rules and regulations are defined for these operations by the Bangladesh Securities Exchange Commission (BSEC), a body which also functions in monitoring the market. A country can have multiple stock trading venues to allow transactions in stocks and other forms of securities. Although in general stock exchange is a subset of the stock market the terms stock market and stock exchange are used interchangeably.

Bangladesh stock market or Bangladesh share market has two exchanges; Dhaka Stock Exchange Limited (DSE) located at Motijheel, Dhaka and Chittagong Stock Exchange Limited (CSE) located at Agrabad commercial area, Chottogram. The Dhaka Stock Exchange limited (https://www.dsebd.org/index.php) was established on 28 April, 1954 as East Pakistan Stock Exchange and later the name was changed to “Dacca Stock Exchange Ltd” on 13th May 1964. At the time of incorporation the authorized capital of the Exchange was RS. 3,00,000 divided into 150 shares of RS. 2000.

Dhaka Stock Exchange Ltd (DSE) begun its functioning under the index – Dhaka Stock Index (DSI) since the beginning. A change in index was brought in the 2001 when two new indices DSE-20 Index (in January 2001) and DSE General Index (DGEN) was introduced on 27th November 2001.  Under DGEN index the number of shares are calculated in total. However, DSE closed the index DSE-20 and planned to close DGEN index. Two new indices DSE Broad Index & DSE 30 Index (DS30) bas

Dhaka_stock_exchange
Dhaka_stock_exchange

ed on free-float adjusted and S&P methodology respectively on 27 January 2013 was started. In free-float adjusted shares, shares are owned by public, institutes and foreign investors. This lock-free adjusted index, DSEX, is the main index of Dhaka Stock Exchange. DGEN continued and officially closed on 31 July 2013 with the index standing at 4342.31. DSEX is the broad index of the Exchange (Benchmark Index) which reflects around 97% of total market capitalization while DS30 is constructed of 30 leading companies which can be said as investable index of the Exchange. It is also known as the bluechip Index. DS30 reflects around 51% of the total market capitalization. DSE Shariah Index (DSES) was introduced on 20 January, 2014 which serves as a Shariah Complaint broad market benchmark in the Bangladesh Capital Market. At present (latest update 21 May 2019) the DSEX Broad Index, DS30 and DSEX Shariah is at 5,419.9 points, 1,967.21 points and 1,275.45 points respectively while latest market capitalization of all listed securities stood at tk. 4,119.65 billion. DSE inaugurated two divisional offices at Chottogram, DSE Chittagong Office on 22nd November 2007 and Sylhet, DSE Sylhet Office on 30th March 2008.

Chittagong Stock Exchange (CSE) started its journey on 10th October 1995 in Chittagong City with 12 Board members and a vision to aspire a Global Standard Transaction Place of Securities and Financial Product in Bangladesh. The second stock exchange of Bangladesh received its permission from Bangladesh Securities Exchange Commission on 12 February 1995. CSE as the first bourse introduced automated and online trading system in Bangladesh on June 1998 and introduction of real time Internet Trading Service- first time in Bangladesh on 30th May 2004. It has also introduced Trade Settlement through EFTN and Next Generation Trading System (NGTS).

Chittagong Stock Exchange (CSE) (https://www.cse.com.bd/index.php) has five indices running of which indexes; CASPI-CSE overall share Index, CSE-30 Index and CSCX Index were introduced from the beginning while CSE Shariah Index (CSI) and CSE-50 benchmark index

Chittagong_Stock_Exchange_Limited
Chittagong Stock Exchange Limited

(CSE-50) were launched on October 2014. The Shariah compliant stocks (CSI) represents 48.6% of the total market capitalisation and around 41.35% of float-adjusted market capitalisation of the CSE listed companies. CSE 50 index includes top 50 companies listed with CSE on the basis of their market capital, liquidity position and financial viability.

According to latest update ( May 21, 2019) the indices CSE50,  CSE30 , CSCX, CASPI and CSI  stands at 1165.8450, 13998.3155, 9690.3271, 16007.4276 and 1046.3593 points respectively.

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