Last 30 Days DSI Index Graph Last 30 Days DSE Index Graph
DSI Daily Index Graph DSE Daily Index Graph
Inward remittances need to be aggressively promoted
Inward remittances have become an important component of the Bangladesh’s economy over the years. Bangladesh is among the top ten recipients of remittances in the world. Remittance as a percentage of GDP has increased from 6% in FY2004 to 11.4% in FY2010. Remittance inflow has been the backbone, providing support to the international reserves of the country. Historically, most of the remittance inflow comes from the Middle East and overall, the remittance from the Middle East constitutes about 66% of total remittancereceived by the country.
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Recent Budget Announcement
Bangladesh FM has recently unveiled a Taka 163,589 crore (US$22 billion) budget for the financial year 2011-2012 last month aiming a record high 7 per cent growth and to increase spending on key sectors by nearly a third to tackle its acute power shortage, poverty and inflation.
Finance Minister Abul Maal Abdul Muhith announced the budget with a focus on employment generation, proposing a 23 per cent higher outlay for the next financial year, which is up by Taka 31,589 crore over the actual outlay of Taka 132,000 crore of the outgoing fiscal. Simultaneously the inflation was also expected to ease slightly to 7.5 per cent against a revised target of 8 percent this year as price spiral of food strained government finances by amplifying its already huge subsidy bill.
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Dividends Collection is much safer Investment in volatile market
After a runaway rally in the last calendar year, stock market in Bangladesh has finally witnessed a pause over the past few months with some volatility. After sustaining an upward momentum, the stock markets have refused to move upwards in a straight line, and are showing signs of choppiness over the past several weeks. While one of the reason why the benchmark indices have taken some profit taking over the past few weeks includes the spiraling crude oil prices and a shift in focus of investors towards precious commodities, there are some investors, still betting on stocks, which could offer healthy returns even in times, when market takes time to consolidate near current levels before a decisive breakout.
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New IPOs Activities So Far For This Year
The current year has turned out to be a mixed year so far for the IPO’s launched in Bangladesh over the past five and a half months. An aggregate of seven public issues have so far been thrown open for the public for subscription in the current year. While at least three of these issues have been offered at a premium, the other four IPO’s have come out so far at par. Out of the seven IPOs so far floated in the primary market till today in the current year, four of these issues have come out from new companies including Salvo Chemical Industries, M.I. Cement Factory, Baraktullah Electro Dynamics Ltd and MJL Bangladesh Ltd.
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The Book Building Method’s Affect At Bangladesh Stock Market
It is the process of determining the price at which an Initial Public Offering is offered. The book is filled with the range of prices that investors indicate they are willing to pay per share, and when the book gets closed on the closing of primary issue, the issue price is determined by an underwriter or merchant banker by analyzing these values. It is the solicitation of tentative interest from likely institutional and individual investors by the investment banking syndicate of a new security issue before the offering has been approved by the Securities and Exchange Commission.....leave your comments
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Where Mutual Funds Stay After A Decade
Even as the stock markets have started maturing of age over the past one decade, the growth of mutual fund in Bangladesh has been slow. Only recently there has been a rush for new funds. Many banks and financial institutions continue to in the queue with proposals for their funds. Mutual fund is a fund under a trust. Investment in mutual fund is ideal for investors who do not want to take risk because the fund is managed professionally and the collective investment is diversified....leave your comments
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A Few Milestones in DSE in 2010
The Bangladesh capital market continued to rally handsomely in 2010 even though U.S and European market had to recover from recession effect. The market capitalization to GDP ratio has been increased over the year from 30% to 50%. DSE General Index (DGEN) has gained its peak at 8,918.51 point in December 5, 2010 and the lowest value was at 4,568.40 point.
Over the year, DGEN increased 82.78% and reached at 8,290.41 point at the end of the year. The total market capitalization of all shares and debentures (excluding t-bills and t-bonds) of the listed securities at the end of December, 2010 also stood higher at USD 49.4 billion, indicating a gain of 84 percent which was higher than USD 26.8 billion at the end of December, 2009.
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US for govt talks with Yunus ..share your opinions.
The United States yesterday called for a dialogue between Prof Muhammad Yunus and Bangladesh government to reach a solution to the dispute over the status of the Nobel laureate in the Grameen Bank he founded.
I do believe that a compromise is possible and I am encouraging dialogue between the parties to find a mutually acceptable solution,'' Robert Blake, US assistant secretary of state for South and Central Asian Affairs, told a news conference at the American Club in Dhaka...Leave your comments
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Local Bangladesh Business News
Dhaka to trim its 'sensitive list' under SAFTA pact
FE Report :Syful Islam
Bangladesh is working on downsizing the sensitive list by 246 items for the least developed countries (LDCs) and 248 ones for the non-LDCs under the SAFTA (South Asian Free Trade Area) pact, trade officials said.
"We have in principle decided to shorten the sensitive list. But everything will depend on negotiations and approaches taken by other members of the regional trade bloc at a meeting to be held in Nepal this month," a Ministry of Commerce (MoC) official told the FE Thursday seeking anonymity.
Read More Microcredit and Lamia Karim's 'Women in Debt in Bangladesh'
FE Report :
Taj Hashmi in the first part of his two-part review
A report by the Government of Bengal in the 1930s revealed that a poor peasant from Mymensingh district in eastern Bengal (Bangladesh since 1971) had told a land revenue official in 1929: "My father, Sir, was born in debt, grew in debt and died in debt. I have inherited my father's debt and my son will inherit mine." Following the introduction of microcredit, glorified as microfinance by its local and international promoters, if the situation has improved with regard to the lot of the rural masses in Bangladesh, especially poor women, is an important question today.
Read More NBR to scrutinise tax exemption facilities’
FE Report :Doulot Akter Mala
The revenue board has decided to review the country's international agreements in a bid to reduce the gross tax exemption facilities.
The board feels that the facilities that have been in place without proper assessment are causing substantial amount of revenue loss to the government.
The decision came after the board detected the existence of tax exemption provisions in different international agreements that were incorporated without prior approval of the National Board of Revenue (NBR), a senior revenue board official told the FE.
Read More Emerging economies shouldn't rely on dollar’
FE Report :
JACKSON HOLE, August 28 (Reuters): Emerging economies should find other ways to buffer themselves from global crises than stockpiling U.S. government debt, a prominent economist argued on Saturday.
U.S. Treasuries and the debt of other advanced nations may be liquid, but it is far from safe, Cornell University professor Eswar Prasad said in a paper presented to a group of central bankers gathered here.
Read More Benefits of bandwidth charge cut bypass internet users
FE Report :Jamal Uddin
Internet users of the country are not benefiting from the cutback on bandwidth charges while service providers say it has "little impact" on their maintenance costs.
The present government slashed the bandwidth charge of per Mbps for the third time from Tk 12,000 to Tk 10,000 in order to expand internet penetration and spread the network to the grassroots level.
It first brought down the prices to Tk 17,400 from Tk 28,000 in January 2009 when it swept to power in an absolute majority.
Sale of merchandise including clothing across the country during the last leg of holy month of Ramadan is expected to touch to Tk 100 billion, according to shop owners.
"On an average, the daily sale of essential commodities including new clothes, food items and household utensils has reached around Tk 10 billion since the 20th Ramadan," said General Secretary of Bangladesh Dokan Malik Samity (Shop Owners' Association) S. A. Qader Kiron said.
This year's sale is lower compared to the last year, he said, citing bad weather and price hike of the products.
Mr Kiron said that although devaluation of local currency against US Dollar pushed up the prices, the people's purchasing capacity hasn't increased.
He said incessant rain over the last week and the dilapidated condition of roads prevented shoppers from crowding the shopping outlets.
Read More Insurance regulator abolishes 'discounts' to big clients
FE Report :Jasim Uddin Haroon
In a bold move, the insurance regulator has suspended the provision for giving 'discounts' to big corporate bodies.
The measure is expected to help strengthen the financial position of the non-life insurance companies, some insiders observed.
Many general insurance companies have been struggling to survive in the face of fast rising rates of discounts on premiums under pressure from big insurance clients, sources said.
Industry insiders said the new decision by the regulator on its proper implementation, will ensure additional premium earnings to the tune of around Tk 15 billion annually for the non-life insurance companies.
Read More Insurance regulator abolishes 'discounts' to big clients
FE Report :Jasim Uddin Haroon
In a bold move, the insurance regulator has suspended the provision for giving 'discounts' to big corporate bodies.
The measure is expected to help strengthen the financial position of the non-life insurance companies, some insiders observed.
Many general insurance companies have been struggling to survive in the face of fast rising rates of discounts on premiums under pressure from big insurance clients, sources said.
Industry insiders said the new decision by the regulator on its proper implementation, will ensure additional premium earnings to the tune of around Tk 15 billion annually for the non-life insurance companies.
Accurate and reliable statistics is vital in effective decision making, be it for power sector, population census or any other issue and whether it be undertaken by government or non-government organisation. Actually accurate data are the eyes of administration of any country and faulty data simply influence wrong decision-making. But, many a time, data in our country lack credibility.
A solid performance and increase overall with all three DSE indices rising for the week.
The All Share Price Index (DSI) increased by 2.21% to close to 6,877. The DGEN also increased,
though by a slightly better margin of 2.25% to close 8,290. The blue-chip top 20 stocks faired much
better though with a massive 4.91% gain on the week to close at 5,204 points.
By market cap, the companies on the exchange saw a rise of 1.16%, a more than doubling of the rise of 0.53% as observed last week.
The advance-decline activity for the week rose threefold. 153 issues advanced compared to 53 last week, whilst only 97 declining as compared to 193 last week.
All three indices of the Dhaka Stock Exchange (DSE) were down this week by over -4%.
The All Share Price Index (DSI) decreased by -4.36% to close to 6,807. The DGEN also decreased by
the same -4.36% margin to close to 8,206. The top 20 blue-chip stocks represented by the DS20 faired
slightly worse with a -4.65% decline to close at 4,885.
By market cap, the companies on the exchange saw a modest rise by a 0.53% as compared to the -
3.65% wiping out of their values last week.
T
he advance-decline activity for the week rose modestly from last week though. Only 53 issues
advanced compared to 40 last week and 193 declining as compared to 204 last week.
T
hus overall for the week we see a mixed picture of low performance yet a slight rise in market cap
and yet improvement in the advance-decline ratio - the market is still rather volatile.
I
f we look at the 5-day market cap graph in figure 6, we observe how activity peaked mid-week
and then tapered off reducing some of the gains made.
How to minimize risk
As you are new to investing and getting ready to invest in the stock market then keep in mind that there is a large element of risk involved unless you reduce risks and exposure with care. A significant part of the risk comes from not knowing—the necessary knowledge of stock market, and the experience in investing.
A lack of knowledge and experience constitutes the greatest risk for new investors but that can be managed toward gradual diminishing with a power that comes
from extensive knowledge, and understanding. The more familiar you are with stock market-how it works, factors that affect stock value, materials you need to
read every day , understanding thoroughly the balance sheet, the better you can navigate and shoot close to investment goals- that will only be direction of
profit maximizing. The same knowledge that enables you to grow your wealth also enables you to minimize your risk.
Read More
How to Invest Like Peter Lynch Kabir Ahmed
In a previous blog, we have discussed thoroughly the inevitable risk, so far, in the stock market that comes from a lack of knowledge. For that
reason risk is contextual, that is depending on a degree of knowledge and also understanding many factors like quantitative, qualitative that are
based on under-lying values of a company and psychological movements of shares. The risk needs to be measured and minimized through a learning process,
implementing trading evaluation process and varieties of trading strategies.
Read More
