Bangladesh capital market tops in world with bullish trend
Country's capital market has become a lucrative place for local and foreign investors and secured top ranked across the world following the supportive initiatives of the government.
DSEX, the prime index on the Dhaka Stock Exchange (DSE) hit 12-month high in the last week ending on September 10.
In August, Bangladesh has ranked top position in the capital market's trading growth index among the other countries amid coronavirus pandemic, according to BRAC EPL Stock Brokerage in Bangladesh and the Bloomberg, a US base news agency.
According to the two reports of the two agencies, the stock market in Bangladesh rose by 15.80 percent in August.
It was followed by Vietnam (10.40 percent), Romania (7.40 percent), Egypt (7.20 percent), Cambodia (7.20 percent), US (7.20 percent), Bahrain (7 percent), Japan (6.60 percent) Saudi Arabia (6.50 percent) and Peru (6.10 percent).
On the other hand, the growth of Pakistan, Sri Lanka and India are 4.70 percent, 4 percent and 2.70 percent respectively.
However, the DSEX has increased by 1,050 points or 25 percent in the past 12 consecutive weeks to stand at 5011.29 points.
Besides, the DSE market-cap also rose by Tk 685 billion to Tk 3789.42 billion during the period under review.
Meanwhile, the port city bourse, the Chittagong Stock Exchange (CSE), also saw a positive trend during the time with its selective category index (CSCX) gaining around 1784 points to close at almost 8,602 points.
Market analysts said the capital market regulator's strict stance on ensuring mandatory shareholding, and exemplary punishment handed out to offenders worked well to rebuild investors' confidence in the market.
The securities regulator's latest stance on ensuring mandatory 2 percent shareholding by each director and 30 percent shareholding jointly had a positive impact on the stock prices, they said.
After taking over in May, the new Bangladesh Securities and Exchange Commission (BSEC) chairman Shibli Rubaiyat held meetings with top officials of the Ministry of Finance, Bangladesh Bank and NBR.
The regulator took various initiatives to bring back investors and entrepreneurs to the market, he also said.
There is no alternative but revival of the stock market to accelerate the economy, he added.
As part of the move, the new chairman reopened the stock market, which had been closed due to the coronavirus pandemic, by contacting the top level of the government, he said.
During the pandemic, the stock markets all over the world remained open, but it was closed only in Bangladesh, he mentioned.
The market reopened on May 31 after shutdown for more than two months, he said, adding that commercial banks were urged to return to invest in the stock market to attract investors.
Ahsanur Rahman, BRAC EPL Stock Brokerage House Acting Chief Executive Officer (CEO), said, "After checking the data of different stock markets of the world, it has been seen that the capital market of Bangladesh has done the best in the world last August."
"At this time, the capital market of Bangladesh has risen 15.60 percent. No other country's stock market has risen like this at this time," he added.
Besides, IPO applications of several poor companies have been rejected on ensuring good IPOs has been built confidence among investors to inject funds into the market, he mentioned.