...BANGLADESH STOCK MARKET GROWING? KEY INDICATORS BASED ASSESSMENT M Khokan Bepari Assistant Professor Department of Cooperation and Marketing Faculty of Agricultural Economics & Rural Sociology Bangladesh Agricultural University, Mymensingh-2202, Bangladesh Phone: +88 01716601759 khokan552@yahoo.com Dr. Abu Mollik Senior Lecturer and Finance Discipline Leader School of Commerce and Marketing Division of Business and Informatics Central Queensland University abumollik@yahoo.com.au Abstract This paper focuses on the growth of Bangladesh stock market over time. The market trends in terms of market capitalization, market liquidity, market concentration, number of listings, volatility in the market index and foreign portfolio investment were considered. The study finds that key indicators are significantly correlated. Stock market growth index is constructed considering market capitalization ratio; turn over ratio, value traded to GDP ratio and volatility in market index. The findings of the study suggest that although Bangladesh stock market is growing over time, the growth has not yet assumed any stable and obvious trend. We conclude that Bangladesh stock market is still at an early stage of its growth path with a small market size relative to GDP and is characterized by poor liquidity and high market concentration. Introduction Demirguc-Kunt and Levine (1996), Singh (1997) and Levine and Zervos (1998) find that stock market growth plays an...
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...BANGLADESH STOCK MARKET GROWING? KEY INDICATORS BASED ASSESSMENT M Khokan Bepari Assistant Professor Department of Cooperation and Marketing Faculty of Agricultural Economics & Rural Sociology Bangladesh Agricultural University, Mymensingh-2202, Bangladesh Phone: +88 01716601759 khokan552@yahoo.com Dr. Abu Mollik Senior Lecturer and Finance Discipline Leader School of Commerce and Marketing Division of Business and Informatics Central Queensland University abumollik@yahoo.com.au Abstract This paper focuses on the growth of Bangladesh stock market over time. The market trends in terms of market capitalization, market liquidity, market concentration, number of listings, volatility in the market index and foreign portfolio investment were considered. The study finds that key indicators are significantly correlated. Stock market growth index is constructed considering market capitalization ratio; turn over ratio, value traded to GDP ratio and volatility in market index. The findings of the study suggest that although Bangladesh stock market is growing over time, the growth has not yet assumed any stable and obvious trend. We conclude that Bangladesh stock market is still at an early stage of its growth path with a small market size relative to GDP and is characterized by poor liquidity and high market concentration. Introduction Demirguc-Kunt and Levine (1996), Singh (1997) and Levine and Zervos (1998) find that stock market growth plays an...
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...ADMINISTRATION & ECONOMICS Identifying the Critical Issues of Stock Market: A Study on Dhaka Stock Exchange (DSE) Md. Moniruzzaman Sarker1*, Nusrat Nargis2* 1 2 Senior Lecturer, School of Business & Economics, United International University, Bangladesh. Senior Lecturer, Department of Business Administration, Daffodil International University, Bangladesh. *Corresponding author’s email: mrajib.sarker@gmail.com, mishu_fin@yahoo.com Article History Received: 19-05-2012 Accepted: 13-06-2012 Available online: 31-07-2012 ABSTRACT Bangladeshi Stock Market has experienced a big crash twice from its inception. In 1996, the market was crashed because of speculative bubble whereas; it was an asset bubble in the year 2011. The stock price was overvalued this time. Price was inflated about 500-700 percent compare to the face value. DGEN Index climbed at point 8918.51 on December 05, 2010 which signaled a steeper bubble. Our study postulates the present scenario of Bangladesh Stock Market through various quantitative and qualitative data which are extracted from the secondary sources. Quantitative data are gathered from the web site of Dhaka Stock Exchange and other qualitative data are collected from published research journals, newspapers, websites etc. This study has revealed that, Gap between the Demand and Supply of stock, extraordinary over pricing of stock, market manipulation, lack of knowledge about the stock market mechanism among the general investors, price distortion, inefficient...
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...Bangladesh Capital Market Brief History of Capital Market: • Concepts started in USA at Wall Street in 1653. • It came to South Asia in 1890. • The origin of Stock Market in Bangladesh goes back to 28th April 1954 named East Pakistan Stock Exchange association at Narayangonj. Later it was s renamed East Pakistan Stock Exchange Ltd and Trading was started in 1956. History of Bangladesh Capital Market: • East Pakistan Stock Exchange transferred in Dhaka in 1958. • In 1964 it was renamed as Dhaka Stock Exchange Ltd. • In 1976 Dhaka Stock Exchange Ltd started its operation with a bit different version. • Securities & Exchange Commission (SEC) was established in 1994 to enhance the efficiency of country’s capital market. • A big wing of Bangladesh capital market, Chittagong Stock Exchange (CSE) incorporated in 1995. Our Capital Market Products: • Shares • Debentures • Mutual Funds • Bonds • Derivates • Future & Options Capital Market Players: • Investors • Private Limited Company • Stock Exchange (DSE & CSE) • Brokers & Dealers • Merchant Banks • Securities and Exchange Commission (SEC) • Central Depository Bangladesh Limited (CDBL) Bangladesh Capital Market: Capital market is the market for securities, where companies and governments can raise long term funds. It is a market where money is lent for periods longer than a year. Capital market includes the stock market & the...
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...Limited Bangladesh Capital Market Brief History of Capital Market: * Concepts started in USA at Wall Street in 1653. * It came to South Asia in 1890. * The origin of Stock Market in Bangladesh goes back to 28th April 1954 named East Pakistan Stock Exchange association at Narayangonj. Later it was s renamed East Pakistan Stock Exchange Ltd and Trading was started in 1956. History of Bangladesh Capital Market: * East Pakistan Stock Exchange transferred in Dhaka in 1958. * In 1964 it was renamed as Dhaka Stock Exchange Ltd. * In 1976 Dhaka Stock Exchange Ltd started its operation with a bit different version. * Securities & Exchange Commission (SEC) was established in 1994 to enhance the efficiency of country’s capital market. * A big wing of Bangladesh capital market, Chittagong Stock Exchange (CSE) incorporated in 1995. Our Capital Market Products: * Shares * Debentures * Mutual Funds * Bonds * Derivates * Future & Options Capital Market Players: * Investors * Private Limited Company * Stock Exchange (DSE & CSE) * Brokers & Dealers * Merchant Banks * Securities and Exchange Commission (SEC) * Central Depository Bangladesh Limited (CDBL) Bangladesh Capital Market: Capital market is the market for securities, where companies and governments can raise long term funds. It is a market where money is lent for periods longer than a year. Capital market includes the stock market &...
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...Recent trend of stock market Abstract This report examines the recent bullish uptrend of stock market. Last few months the stock market is claiming upward very quickly. Sadden inject of huge money has created a huge demand of shares in stock market. But the supply of shares has not matched with the demand side recipe. Because of demand-supply mismatch value of many shares has become overpriced and bullish trend is supposed to persist. Everyday peoples are coming to stock market for earning profit. But it is not a safe time to invest in stock market. Introduction: Stock market is an important part of financial system .It is one of the important avenues for channeling fund to entrepreneurs from public savings .stock market of Bangladesh is a growing market .There are two stock exchange in Bangladesh .one is Dhaka stock exchange and other is Chittagong stock exchange .Recent few years stock market of Bangladesh is growing rapidly .It is a very good sign for entire economy. Generally strong stock market performance is associated with strong economic fundamentals, and one should be pleased with the outcome. A strong stock market is much needed for economic growth. But from the beginning of the year 2010 the stock market is showing very bullish trend. There is an inflow of huge cash in stock market. So the demand of share is very high. But supply of the share was insufficient over the year. It has created an imbalance situation of demand and supply in stock market. As a result...
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...A long term value opportunity BAT Bangladesh overview (Ticker: BATBC BD BDT) BAT Bangladesh (“BATBC”), which is a 65.9% owned subsidiary of British American Tobacco and has a market cap of $431m, is the leading tobacco company in Bangladesh, with 50% market share, dominating the premium and medium price segments of the tobacco market (where it holds 75% market share). The brand portfolio of BAT Bangladesh includes Benson & Hedges, John Player Gold Leaf, Pall Mall, Capstan, Star, Scissors, Bristol, Pilot and Hollywood. BATBC engages in the production and distribution of cigarettes (89% of sales) and in tobacco leaf export (11% of sales). Interestingly Bangladesh is among the 20 largest global producers of tobacco with c. $1.8bn of production in 2011. BATBC plays a key role in the economy since it is the largest private sector tax payer of the country, collecting ~$650m for the government in 2011 (including supplementary duty, value added tax and other taxes). This represents 2/3 of total tax collections from cigarettes industry in Bangladesh). In 2011 BATBC achieved $329m of net sales and $36m of net income. The company has no debt and holds $10m of cash. BATBC employs ~1,200 people directly and about 50,000 people indirectly as farmers, distributors and local suppliers. BATBC production capacity has recently been increased to 30bn sticks. Tobacco Market in Bangladesh According to the Global Adult Tobacco Survey: Bangladesh 2009, 23.0% of adult aged 15 years or above...
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...CHITTAGONG STOCK EXCHANGE: BACKGROUND : “Founder members of the proposed Chittagong Stock Exchange approached the Bangladesh Government in January 1995 and obtained the permission of the Securities and Exchange Commission on February 12, 1995 for establishing the country's second stock exchange. The Exchange comprised of twelve Board members, presided by Mr. Amir Khosru Mahmud Chowdhury (MP) and run by an independent secretariat from the very first day of its inception. CSE was formally opened by then Hon'ble Prime Minister of Bangladesh on November 4, 1995.” MISSION: The mission of the CSE is “to create on effective, efficient and transparent market of international standard to save and invest in Bangladesh in order to facilitate the competent entrepreneur to raise capital and accelerate industrial growth for overall benefit of the economy.” The Chittagong Stock Exchange believes that a dynamic, automated, transparent stock exchange is needed in Bangladesh. It works towards an effective, efficient and transparent market of international standard to serve and invest in Bangladesh in order to facilitate the competent entrepreneurs to raise capital and accelerate industrial growth for overall benefit of the economy and keep pace with the global advancements. VISION: The visions of CSE are as follows: a) To develop a strong platform for raising capital b) To provide an investment opportunities for the investor c) To develop a corporate culture through...
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...Department of Finance Faculty of Business Studies University of Dhaka TITLE OF THE STUDY: BANGLADESH STOCK MARKET PROBLEMS AND PROSPECTS Course Title: Course Code: Submitted to Department of Finance University of Dhaka Submitted by Section “A” BBA 16th Batch Department of Finance University of Dhaka Date of Submission: ------------------------------------------------- about us… Sl No. | Name | Id | 1 | | | 2 | | | 3 | | | 4 | | | 5 | | | 6 | | | 7 | Md. Sanowar Hossain | 16-175 | 8 | | | 9 | Md. Mahbubur Rahman Khan | 16-263 | TABLE OF CONTENTS Topic Page No. Introduction 7 – 8 Stock & how it can be Traded 7 Stock Exchange 7 Broker 7 Listed and Unlisted Company 7 SEC 8 Important Definitions & Terminologies 8 – 10 Face Value, Market Value 8 Market Lot 8 EPS 8 Price Earning Ratio 9 Dividend, Stock Dividend 9 Right Issue 9 Dividend Yield 9 Circuit Breaker, LTP 10 Volume 10 High Price, Low Price 10 Trade 10 52 Weeks Range 10 IPO 10 Stock Placement & Market Analyses 10 – 11 Private Placement 10 Technical Analysis 11 Fundamental Analysis...
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...1.0 Introduction Capital Market mainly refers to the Stock and Share market of the country. When banking system cannot totally meet up the need for funds to the market economy, capital market stands up to supplement it. Companies and the government can raise funds for long-term investments via the capital market. The capital market includes the stock market, the bond market, and the primary market. Securities trading on organized capital markets are monitored by the government; new issues are approved by authorities of financial supervision and monitored by participating banks. Thus, organized capital markets are able to guarantee sound investment opportunities. This paper reveals the various aspects of the Capital Market in Bangladesh. 1.1 Objectives Capital market, being an essential element of today’s economy, demands an intensive and special attention. The objective of this study is to look into every aspect of Bangladesh capital market and identify its various pros and cons along with some recommendations to overcome the existing problems. The specific objectives of this study are: _ To give an overall idea about the capital market-its structures, functions, importance, etc. _ To identify the current situations of our capital market of Bangladesh. _ To compare the relative conditions of Bangladesh capital market to other countries of the world. _ To sort out the problems associated with our capital market. _ To suggest some practicable solutions to these...
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...CONTEXT 1.0 Introduction Capital Market mainly refers to the Stock and Share market of the country. When banking system cannot totally meet up the need for funds to the market economy, capital market stands up to supplement it. Companies and the government can raise funds for long-term investments via the capital market. The capital market includes the stock market, the bond market, and the primary market. Securities trading on organized capital markets are monitored by the government; new issues are approved by authorities of financial supervision and monitored by participating banks. Thus, organized capital markets are able to guarantee sound investment opportunities. This paper reveals the various aspects of the Capital Market in Bangladesh. 1.1 Objectives Capital market, being an essential element of today’s economy, demands an intensive and special attention. The objective of this study is to look into every aspect of Bangladesh capital market and identify its various pros and cons along with some recommendations to overcome the existing problems. The specific objectives of this study are: To give an overall idea about the capital market-its structures, functions, importance, etc. To identify the current situations of our capital market of Bangladesh. To compare the relative conditions of Bangladesh capital market to other countries of the world. To sort out the problems associated with our capital market. To suggest some practicable solutions to these problems...
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...or subscribing to securities as manager-consultant, advisor or rendering corporate advisory services in relation to such issue management. In the words of Skully A Merchant Bank could be best defined as a financial institution conducting money market activities and lending, underwriting and financial advice, and INVESTMENTservices whose organization is characterized by a high proportion of professional staff able to able to approach problems in an innovative manner and to make and implement decisions rapidly. A merchant bank differs from a regular investment bank as it generally deals in the commercial banking requirements of international finance as well as stock underwriting and long-term corporate loans. A merchant bank is known as a wholesale bank and isn't used by the general public. Most merchant banks deal with large corporations as well as with other merchant banks, large financial institutions and, sometimes, various governments around the world. Merchant banks are not like ordinary bank where individuals can open up accounts by making deposits. At birth, Bangladesh inherited an interest based banking system, which was introduced here earlier when the country was a part of British Colony. Since its inception Bangladesh saw a new trend in banking both at home and...
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...Introduction: The stock market of Bangladesh is considered to be one of the emerging markets in the context of the global financial system. The market has immense potentials for country’s industrialization, development of infrastructure in particular and economic growth in general. The government and the Securities and Exchange Commission (SEC) have undertaken a good number of initiatives to meet Bangladesh's development financing requirements with a particular focus on developing long term infrastructure financing and strengthening financial stability through promotion of capital market. In this regard formulation of a Master Plan is of crucial importance. Stock markets or Stock exchanges play an important role in the modern capitalized economy by providing the strength to nation's economic infrastructure. Now the stock market is one of the most important sources for companies to raise capital. Stock market allows businesses to raise additional capital for expansion by transferring the ownership of the company. It provides individuals the opportunity to invest in corporations. The size of the world stock market was estimated at about $36.6 trillion at the beginning of October 2008. In Bangladesh, there are two stock exchanges, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE), DSE was setup on April 28, 1954 that started formal trading in 1956. In 1995, CSE was setup. However, in its fifty-eight year’s history the stock market of Bangladesh crashed two times...
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...Abstract: As Bangladesh is a developing country, the corporate culture is growing very slightly in our country. One of the important aspects of a corporation is its "Dividend Policy" that affects the financial structure, flow of funds, liquidity, price of stocks, and shareholder's satisfaction. This paper attempts to determine how the British American Tobacco Bangladesh Company Ltd. (BATBC) uses its dividend policy to increase the value of the firm and the impact of dividend policy on its stock price. We tried to illustrate and analyze net income, earning per share, cash dividend, stock dividend, dividend payout ratio and right share for empirical analysis of dividend distribution of British American Tobacco Bangladesh. The expectations of dividends by shareholders helps them determine the share value, therefore, dividend policy is a significant decision taken by the financial managers of any company. 1.2 Introduction: Dividend Policy is concerned with taking a decision regarding paying cash dividend in the present or paying an increased dividend at a later stage. The firm could also pay in the form of stock dividends which unlike cash dividends do not provide liquidity to the investors; however, it ensures capital gains to the stockholders. The expectations of dividends by shareholders helps them determine the share value, therefore, dividend policy is a significant decision taken by the financial managers of any company. British American Tobacco Bangladesh Company Ltd...
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...Company set up its first sales depot at Armanitola in Dhaka. After the partition of India in 1947, our company was established in 1949. It then became Bangladesh Tobacco Company Limited in 1972 immediately after Bangladesh’s independence. In 1998, the Company changed its name and identity to British American Tobacco Bangladesh Company Ltd. Our shareholders We were one of the first companies listed on Dhaka and Chittagong stock exchanges. The British American Tobacco Group holds 65.91% of the shares in British American Tobacco Bangladesh. Other shareholders are the Investment Corporation of Bangladesh, Shadharan Bima Corporation, Bangladesh Shilpa Rin Shangstha, Government of People’s Republic of Bangladesh, Sena Kalyan Shangstha and other members of the public. Our contributions British American Tobacco Bangladesh is one of the largest multinational companies in Bangladesh. Consequently, we are also the largest private sector tax payer in Bangladesh. In 2010, we contributed Tk 46.27 billion in the form of Supplementary Duty, Value Added Tax (VAT) and other taxes to the national exchequer. Over time, we have successfully established ourselves as the company contributing to economic, social and human resource development. We continue to move forward to deliver higher promises. Our beliefs At British American Tobacco Bangladesh, we strive to be a responsible company wherever we operate - that may be to our shareholders, employees, business partners or any other relevant internal...
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