Dhaka/Chittagong Stock Exchange News

[TIslam]

Originally Posted by samaruf

What I don't get is why do a lot of these "foolish" people put all their eggs in one basket? I was reading reports of people putting all their savings(one guy invested 10 crores!) in the market and now lost a bulk of it. Some are blaming the finance minister for encouraging people to put money in the market

To invest one's entire life savings in the stock market is beyond stupid. Greed got the better of that person.

I have come to accept that violence is a natural tendency in our country for every damn grievance. It's got nothing to do with wealth or education. People just get a high from breaking private and public property.

We ought not to accept such attitude and tendencies, rather rail against such behavior. The government and the civil society, i.e. parents, educators, mentors, are simply failing in their job to bring up tomorrow's citizens properly.

[samaruf]

That last post was my 1000th post. No wonder my wrist hurts

[beer51]

Bangladesh stock market recovers after heavy fall
Car driver being assaulted by protesting investors in Dhaka Angry investors vented their anger on Monday outside the Dhaka Stock Exchange
Continue reading the main story
Related stories

* Bangladesh clashes as shares dive
* Bangladesh riot over stock slide

Shares on the Dhaka Stock Exchange in Bangladesh recovered strongly on Tuesday after weeks of heavy falls.

Stocks ended the day up by more than 15% following government pressure on the country's financial authorities to stabilise the market.

However, some analysts warned that the rebound might be short-lived.

On Monday police used tear gas and baton charged investors who had attacked government buildings in protest at collapsing share prices.

Trading on the Dhaka Stock Exchange index was halted after it fell by 660 points, or 9.25%, in less than an hour.

It was the biggest one-day fall in its 55-year history.

It is estimated that more than three million people - many of them small-scale individual investors - lost money because of the plunging share prices.

The rising value of stocks in recent years has attracted millions of investors in Bangladesh.

Shares have become a popular investment for ordinary people, often providing higher returns than bank deposits and savings.

Bangladesh might be one of Asia's poorest countries, but its two stock markets have soared in recent years on the rising value of its mobile telephone companies and other firms.

But over the past few weeks more and more investors have been selling up, amid rumours that large institutional investors had pulled their money out after making large profits.

The BBC's Moazzem Hossain says that Tuesday's recovery followed government pressure on the country's financial authorities to stabilise the market.

But our correspondent says that recent market volatility is unlikely to disappear because the confidence of small investors has been shaken and they doubt how long the gains can last - especially when many believe share prices are hugely overvalued.

There are also concerns about the financial health of many Bangladeshi banks - because they are heavily exposed to the market.

Fearing further widespread protests, the government on Monday took measures to increase the money supply in the market.

They relaxed rules for the banks and for individual investors so that they could borrow more money against shares.
http://www.bbc.co.uk/news/business-12162039

[King Nothing]

The market is back up again. The DSE runs on rumours and insider information there is no doubt abt it. The market falls 600 points in 50 minutes one day and then there is an astronomical rise the next day. Very fishy!

[British-Bangladeshi]

DSE index crosses 5,000 points

With a buying spree going on in the capital market, the benchmark general index of the country’s premier bourse crossed 5,000 points Thursday.

The general index of Dhaka Stock Index (DGEN) gained 90 points to reach 5,029 at 12:55pm when this report was filed.

Earlier on January 15, the DGEN closed at 5,031 points.

Of the issues traded, prices of 202 issues increased, 35 declined while 15 remained unchanged.

Total 95,539 issues were traded and Tk 421 crore changed hands.

On Tuesday, the index gained 75 points to reach 4,939.

News Source:
The Daily Star

[British-Bangladeshi]

Goldman Sachs Invests in Bangladesh Stock Bubble

by Tom McGregor

The investment firm, Goldman Sachs is financing a stock market bubble in the Bangladesh Stock Exchange and will soon cash out for some mighty profits that may spark a potentially devastating crash of stock exchanges in Asia.
According to the Asia Times, “money is gurgling back into the Bangladesh stock markets, driving up overall share prices by 50% last month. The jump, encouraged by strong economic growth, comes in the absence of substantial regulatory changes that would prevent a repeat of Dhaka’s 2010 market bubble and subsequent collapse.”

In February, foreign cash played a significant role accounting for $18.8 million of stock purchases, which is an increase of 28% from the prior month. The Dhaka general stock index has surged 50% in the four weeks to March 3, when it reached 5,428 points.

Muhammad Saifuddin, managing director of IDLC Securities Ltd., disclosed that his company helped Goldman Sachs invest in Bangladesh recently.

Asia Times quotes Saifuddin as saying that, “the economy, which has maintained around 6% GDP (gross domestic product) growth, attracts foreign investors. Political stability, improvements in power and infrastructure, macroeconomic equilibrium and foreign investor-friendly policies also influenced foreign investment in the capital market.”

News Source:
Asia Times

[British-Bangladeshi]

Capital market now in good position

Finance Minister AMA Muhith on Thursday said the capital market is now in a ‘good position’ despite turmoil over the last one year.

“Despite chaotic situation in the share market in the last one year, I think, the capital market is now in a good position,” he said while addressing a dividend transfer ceremony of the Investment Corporation of Bangladesh (ICB) held at the conference room of the Ministry of Finance.

The Finance Minister said two entities –- the Securities & Exchange Commission (SEC) and the ICB –- made valuable contributions towards putting the stock market back to the good position as they had reformed some rules and regulations.

On the fluctuation of stocks, Muhith said he is not that much unhappy about it and added that it happens because those who are in the capital market are immature and they lack the capability to sustain over there.

The Finance Minister said a process is underway for the demutualisation of stocks which would be a very important thing as the share market is now in an incestuous situation. “When there will be the demutualisation… there would be much more transparency.”

Meanwhile, the ICB handed over a cheque for Tk 10, 12, 50,000 to the government as cash dividend for the fiscal year 2010-11. ICB chairman Dr SM Mahfuzur Rahman formally handed over the cheque to Finance Minister AMA Muhith.

As against holding 67,50,000 shares of the ICB, the government also gained 35 percent bonus shares from the ICB totalling 23,62,500 bonus shares amounting to Tk 381.54 crore.

Bank and Financial Institutions Division Secretary Shafiqur Rahman Patwari, Additional Secretary Amalendu Mukherjee, ICB managing director M Fayequzzaman and high officials of the Finance Ministry and ICB were, among others, present on the occasion.

News Source:
UNB

[British-Bangladeshi]

Stocks remain upbeat; turnover on surge

Greater participation by investors with fresh funds gave a further boost to the country’s twin bourses on Monday, registering a Tk 990 crore turnover at Dhaka bourse.

Banking sector was the top mover at the Dhaka Stock Exchange (DSE) that led the day’s gain. All the listed banks except ICB Islamic Bank Limited showed a significant gain.

The benchmark index of the DSE, DGEN, closed at 5182.57 with a gain of 60.34 points or 1.17 percent. The key index gained 131.90 points on Sunday but lost 48 points on Thursday.

The single-day turnover of the premier bourse was Tk 813 crore, Tk 933 crore Tk 821 crore on Sunday, Thursday and Wednesday respectively that stood at Tk 990 today. The DSE turnover was Tk 1051 crore on November 23.

Of the issues traded at the DSE, 128 advanced, 127 declined and 10 remained unchanged.

Similarly, the key index of Chittagong Stock Exchange, CSCX, showed a gain of 170.81 points to close at 9649.10. The CSE bourse gained 225.78 points to close at 7478.28 on Sunday. It, however, lost 131.05 points on Thursday.

Of the issues traded at the CSE, 115 advanced, 73 suffered losses and 11 remained unchanged.

The CSE turnover climbed to Tk 91.73 crore which was Tk 68.96 on Sunday and Tk 84.53 crore on Thursday. The turnover was Tk 82.50 crore on Wednesday.

News Source:
UNB

[British-Bangladeshi]

DSE launches online trading in 10 weeks
MSA-Plus software to be used

The Dhaka Stock Exchange (DSE) is going to introduce online trading within the next 10 weeks using MSA-Plus software, officials said Monday.

Meanwhile, the DSE has set a six-month timeframe to transfer the omnibus accounts into a single-client account for smooth running of MSA-Plus software.

Earlier, on March 20, the DSE suspended "MSA-Plus Go Live Programme" following the complexity that lingered over the use of omnibus accounts by merchant banks for share transactions.

An omnibus account is a specific kind of stock-holding account that involves multiple investors.

Under the MSA-Plus system, every investor would require a separate BO account to participate in share trading, and the transaction will not be possible through omnibus accounts.

The decision came at a meeting with the Bangladesh Merchant Bankers Association (BMBA) and the DSE held at the DSE board room Monday evening.

"We are going to launch online trading within next 10 weeks as we have reached a solution after having wide discussions with merchant banks' leaders," said DSE president Rakibur Rahman after the meeting.

MSA-Plus software was supposed to be introduced on March 25, but it has been postponed due to omnibus account complexities, he said.

He also said the omnibus account complication would be resolved within next six months.

A 14-member committee has been formed headed by ICB MD Fayekuzzaman to review the legal, technical, financial and operational aspects.

"I am assigned to resolve omnibus account problems and it would be resolved within six months," said Mr Fayekuzzaman.

Mohammad A Hafiz, president of BMBA said, "We will extend full assistance to resolve omnibus account complications."

DSE senior vice president Ahmad Rashd Lali and vice president Md Shahjahan were also present at the meeting.

News Source:
Financial Express

[British-Bangladeshi]

DSE to take part in London capital market fair in May

The country's capital market will attract significant investment, both in primary and secondary markets, from the non-resident Bangladeshis (NRBs) and foreign investors in the coming months, the NRBs living in the UK said.
London-based CurryLife Events, which is part of the CurryLife Magazine Group in the UK, will arrange a three-day fair in London from May 27 in a bid to encourage NRBs to invest their surplus money in the capital market.

The fair, titled 'Bangladesh Capital Market Fair-2012', will be held at London Muslim Centre (Whitechapel road), organiser of the fair Sayed Belal Ahmed told UNB over phone on Friday.

When contacted, Dhaka Stock Exchange (DSE) president M Rakibur Rahman said they would participate in the fair and will encourage the Bangladeshis living in the UK to invest in the country's capital market. "I'll lead a delegation from the DSE. We'll encourage the NRBs to invest both in primary and secondary market. We want their active participation… it will bring foreign currency for the country too," he said.

Rakibur Rahman added: "At the same time, we need to work to bring good shares in the market so that they can invest in primary market."
Asked about the details, organizer Belal Ahmed said the fair would be the biggest event outside of Bangladesh showcasing purely Bangladesh potential for investment.

"The fair with seminars, demonstrations, product launches and exclusive offers, would allow participants to gain vital business contacts in the UK from companies and individuals that have a genuine business interest in the Bangladesh capital market."
Replying to another question, he said they also invited Chittagong Stock Exchange (CSE) and the Securities and Exchange Commission (SEC). "They (CSE and SEC) are yet to confirm their participation but many members of the CSE are interested to participate."

He said stockbrokers and merchant banks from Bangladesh with clean track record and credibility will showcase their products and services in the UK.
"We expect many Bangladeshis from other European countries, including Italy, France, Germany, the Netherlands and Spain," Belal said adding that the online trading opportunity beginning from June will help increase investors' participation in the Bangladesh's stock market.

The three-day fair is expected to attract over 10,000 visitors and a significant number of them will open BO (beneficiary owners) accounts to invest in the capital market, the organisers said.

News Source:
UNB

[British-Bangladeshi]

Nitol Ins approves 8.0pc stock, 5.0pc cash dividends

Nitol Insurance Company Limited approved 8.0 per cent stock and 5.0 per cent cash dividends for the shareholders for the year 2011.

The approval was given in the 13th annual general meeting (AGM) of the company at Trust Milonayaton, Old Airport Road in the city Wednesday, according to a press release.

Nitol Insurance Company Limited (NICL) Chairman and founder Chairman AKM Monirul Hoque presided over the meeting.

NICL Vice Chairman Anowar Husain, Director Zobair Humayun Khandaker and Managing Director SM Mahbubul Karim were present in the meeting.

A large number of shareholders of the company attended the meeting and took part in the discussion, the release added.

News Source:
Financial Express

[British-Bangladeshi]

DSE hails incentives proposed in new budget to boost stock market

Appreciating the proposals regarding the country’s capital market, Dhaka Stock Exchange (DSE) president M Rakibur Rahman on Saturday said the incentives proposed in the new national budget will help expedite industrialization in the country through strengthening the market.

“We welcome the government for giving special importance to the capital market in the proposed budget. We hope it’ll help expedite industrialization through expanding the market,” he said while addressing a press conference at the DSE Bhaban in the city.

Describing the incentives proposed by the Finance Minister for the 2012-13 fiscal, Rakibur Rahman said they have seen reflection of the investors’ desire in the proposed budget. “It shows there is no lack of sincerity for the development of the capital market.”

He also thanked the government for keeping intact all the incentives that had been provided in the outgoing fiscal year including the opportunity to invest undisclosed money in the capital market.

In his budget speech in Parliament on Thursday, Finance Minister AMA Muhith proposed some new incentives, including tax exemption on dividend income up to Tk 5,000, to help the capital market investors to recoup their huge losses to some extent.

Apart from the new incentives, Muhith assured that the incentives that had been provided in the outgoing fiscal would be kept intact for the coming fiscal (2012-2013) in a bid to strengthen the capital market and maintain its stability.

The Finance Minister proposed to reduce the income tax rate of merchant banks from 42.5 to 37.5 percent. Besides, if any company transfers 20 percent of its paid up capital through Initial Public Offering (IPO) to capital the market, it will enjoy 10 percent tax rebate on its payable tax in the relevant year.

The dividend income on share trading up to Tk 5,000 will be exempted from tax, which is now added to the main income of an individual and the tax is calculated on the total amount.

Muhith supported the government initiative to bring the mobile phone companies in the capital market by 10% tax redemption if they invest in the market.

The DSE president said that the draft of a law on Financial Reporting has been finalized and will be in place formally in the coming fiscal. ‘It’ll help maintain stability in the capital market.”

He also informed that an initiative has been taken to set up a special court to quickly resolve the cases related to the share market.

Meanwhile, the government has taken initiative to ensure transparency and accountability in trading through establishing state-of-the-art surveillance software.

DSE senior vice president Ahmed Rashid Lali, chief executive officer Dr Musharraf M Hussain, chief financial officer Shuvra Kanti Choudhury, and directors Ahasanul Islam and Khwaja Ghulam Rasul were, among others, present.

News Source:
UNB

[British-Bangladeshi]

DSE upgrades listing rules

The Dhaka Stock Exchange (DSE) has moved to upgrade the listing regulations in line with international standards to make the market more it more transparent and effective.

A nine-member committee, headed by DSE president Rakibur Rahman, has been formed to bring changes in the existing rules and regulations. “The existing regulations need to make time-befitting,” Rahman told the Independent.

“We want to make it more effective and more transparent,” he said.
After amendment, DSE will seek approval from the Securities and Exchange Commission.

The DSE team recently visited India, Philippine and Shanghai to glean more knowledge about the listing rules.

Listing means admission of securities to dealings on a recognised stock exchange. The securities may be of any public limited company, quasi governmental and other financial institutions and corporations.

The objectives of listing are mainly to provide liquidity to securities, mobilise savings for economic development, protect interest of investors by ensuring full disclosures.

Under the existing rules, a company intended to list submits information and documents to the DSE. After scrutinising it, DSE recommends to the SEC for initial public offerings (IPO) approval.

DSE also opposed allowing the companies to invest IPO money in their subsidiaries.

In May this year, the SEC said companies that will raise capital through IPO will be able to invest the proceeds in their subsidiaries and associated firms.
IPO is a process to issue shares to the public to raise capital to expand and run business of a company more efficiently.

“We oppose it as we think it is not rational as the regulator does not oversee the subsidiary firms,” Rahman said.

The DSE will write to the SEC to revoke its decision for the greater interest of shareholders of a listed company who will remain in dark about the balance sheet of its subsidiary firm, he said.

News Source:
The Independent