FE Report
A leading trade body has said the capital market's vibrancy will largely depend on stable political environment throughout the year.
In its October-December economic review, released Saturday, the Metropolitan Chamber of Commerce and Industry, Dhaka said while efforts were made to shore up the capital market in the past three years, it "… still remains stagnant as investors' confidence is yet to be restored."
The review said the capital market was stable in the first half of 2014 while the last half saw a struggle between "bulls and bears" as it tries to find to find a direction.
"The capital market eventually ended in positive territory," the review said.
It said, benchmark index--DSEX-- started the year with 4,266.55 points and closed at 4,864.96 point on 30 December, the last trading day of 2014, gaining 14.03 per cent on Dhaka Stock Exchange (DSE).
The DSEX rose to 5,334.42 points on October 12, 2014 and the highest turnover value of Tk 12.88 billion was observed on September 18, 2014.
On the other hand, the blue chip indices-- DS30, and Shariah compliant, DSES-- also returned 23 per cent and 22 per cent respectively, during the year.
The daily turnover, the most important indicator of the market, stood at Tk.4.99 billion on average, up 24.75 per cent year-on-year, according to the review.
"The market capitalisation rose 23.09 per cent to Tk.3,259.24 billion at the end of the year compared with the previous year while the ratio of DSE market capitalisation to GDP was 24.12 in 2014 against 25.51 in 2013," said the review of MCCI prepared based on the data available on the premier bourse.
A total of 17 new securities, which were listed with the DSE in 2014, raised an aggregate amount of fund worth around Tk.10.0 billion through initial public offerings (IPO).
"Nevertheless, the market is still stagnant as investors' confidence is yet to be restored despite the broad index ending the year on a positive note," the MCCI said.
Referring to foreign portfolio investment on the DSE, the MCCI said foreign investment marked a significant jump in 2014 compared to 2013 as foreign fund managers considered the market lucrative for long-term investment due to low prices of fundamentally strong stocks.
"Net investment by foreign investors in 2014 stood at Tk.26.20 billion, which was Tk.19.43 billion in 2013, registering 34.8 percent rise over the year."
According to MCCI review, the turnover made by foreign investors increased to Tk.62.05 billion in 2014 from Tk.33.62 billion in the previous year.
Mentioning the DSE data, the MCCI said, "Foreign investors bought shares worth Tk.44.06 billion in 2014 compared to Tk.26.52 billion in 2013, while they sold stocks worth Tk.17.98 billion in 2014 compared to Tk.7.09 billion in 2013.
A leading trade body has said the capital market's vibrancy will largely depend on stable political environment throughout the year.
In its October-December economic review, released Saturday, the Metropolitan Chamber of Commerce and Industry, Dhaka said while efforts were made to shore up the capital market in the past three years, it "… still remains stagnant as investors' confidence is yet to be restored."
The review said the capital market was stable in the first half of 2014 while the last half saw a struggle between "bulls and bears" as it tries to find to find a direction.
"The capital market eventually ended in positive territory," the review said.
It said, benchmark index--DSEX-- started the year with 4,266.55 points and closed at 4,864.96 point on 30 December, the last trading day of 2014, gaining 14.03 per cent on Dhaka Stock Exchange (DSE).
The DSEX rose to 5,334.42 points on October 12, 2014 and the highest turnover value of Tk 12.88 billion was observed on September 18, 2014.
On the other hand, the blue chip indices-- DS30, and Shariah compliant, DSES-- also returned 23 per cent and 22 per cent respectively, during the year.
The daily turnover, the most important indicator of the market, stood at Tk.4.99 billion on average, up 24.75 per cent year-on-year, according to the review.
"The market capitalisation rose 23.09 per cent to Tk.3,259.24 billion at the end of the year compared with the previous year while the ratio of DSE market capitalisation to GDP was 24.12 in 2014 against 25.51 in 2013," said the review of MCCI prepared based on the data available on the premier bourse.
A total of 17 new securities, which were listed with the DSE in 2014, raised an aggregate amount of fund worth around Tk.10.0 billion through initial public offerings (IPO).
"Nevertheless, the market is still stagnant as investors' confidence is yet to be restored despite the broad index ending the year on a positive note," the MCCI said.
Referring to foreign portfolio investment on the DSE, the MCCI said foreign investment marked a significant jump in 2014 compared to 2013 as foreign fund managers considered the market lucrative for long-term investment due to low prices of fundamentally strong stocks.
"Net investment by foreign investors in 2014 stood at Tk.26.20 billion, which was Tk.19.43 billion in 2013, registering 34.8 percent rise over the year."
According to MCCI review, the turnover made by foreign investors increased to Tk.62.05 billion in 2014 from Tk.33.62 billion in the previous year.
Mentioning the DSE data, the MCCI said, "Foreign investors bought shares worth Tk.44.06 billion in 2014 compared to Tk.26.52 billion in 2013, while they sold stocks worth Tk.17.98 billion in 2014 compared to Tk.7.09 billion in 2013.
"
mufazzal.fe@gmail.com
mufazzal.fe@gmail.com
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