1 / 20

Capital Market in Bangladesh Background of the Market

Capital Market in Bangladesh Background of the Market. DSE, the first stock exchange of the land was incorporated on April 28, 1954 , while the second stock exchange – CSE was established in 1995 After independence of Bangladesh, trading activities started in August 1976.

didier
Download Presentation

Capital Market in Bangladesh Background of the Market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Capital Market in BangladeshBackground of the Market DSE, the first stock exchange of the land was incorporated on April 28, 1954, while the second stock exchange – CSE was established in 1995 • After independence of Bangladesh, trading activities started in August 1976. • From1998 automated screen based trading was introduced by both the exchanges through LAN and WAN connectivity and HP non stop trading platform is providing basic architecture.

  2. Capital Market in BangladeshCorporate Structures of the Exchanges • The Stock Exchanges are registered as Public Limited Companies under companies Act. • Presently DSE has 234 outstanding shares (members) while CSE has 140 shares outstanding. • The exchanges are Self Regulatory Organizations and their activities are regulated by - Articles of Association - Own set of Rules, Regulations and Bye-laws - Securities and Exchange Ordinance 1969 - Securities and Exchange Rules 1987 - Other relevant laws.

  3. Capital Market in BangladeshBasic Markets • Public Market : For general trading • Spot Market : For pre-book closer trading • Block Market : For bulk volume trading • Odd lot Market : For odd lot trading Trading Session Trading at DSE is performed through a non-stop platform in followingsessions : Continuous Trading hours : 10.00 AM to 2.00 PM Trading day : Sunday To Thursday.

  4. Capital Market in Bangladesh SETTLEMENT & CLEARANCE SYSTEM Primarily Settlement Period is T+1 and T+3 Days : • All the trades are cleared and settled, as per Settlement of Stock Exchange Transactions Regulations 1998. • From January 24, 2004 CDS system started functioning & transactions of all demated Securities are settled and registered through CDS • A central clearing company is under process to ensure efficient financial settlement

  5. Capital Market in BangladeshMarket Standard and Requirements • Disclosure Requirements by the Listed Companies • Yearly Audited Financial Statement within four months of the year end. • Half-yearly Un-audited financial statements within one month of the first half-year end. • Price Sensitive disclosures • It is mandatory to follow in preparation of the accounts • International Accounting Standard (IAS) • International Standards for Auditing (ISA) • Corporate Governance • All the listed companies are required to adopt the Corporate Governance Guidelines issued by SEC and required by Listing Regulation

  6. Capital Market in Bangladesh Featured by: LowRatio of Market Capitalization to GDP Source: IMF World Economic Outlook & Website of Stock Exchanges of Respective Countries.

  7. All Securities are Distributed in 16 Sectors : 1. Banks 2. Investment 3. Engineering 4. Food & Allied Products 5. Fuel & Power 6. Jute 7. Textile 8. Pharmaceuticals & Chemicals 9. Paper & Printing 10. Services & Real Estate 11. Cement 12. IT 13. Tannary Industries 14. Ceramic Industry 15. Insurance 16.. Miscellaneous Total Issued Capital of all listed Securities US $ 2.24 bn Market Capitalization of all listed Securities US $ 5.96 bn Capital Market in BangladeshBasic Market Statistics LISTED SECURITIESAs on April, 2007 => Companies : 258 ( A – 142 , B - 29, G-1, N-7, Z - 86) => Mutual Funds : 14 => Debentures : 08 => Govt.T. Bond : 42

  8. No. Market Cap Tk. in mn % of total Market cap Particulars Securities under the CDBL IPO (upcoming) 153 343,315 83.21 Companies under the CDBL 111 268,654 80.39 3 --- --- Capital Market in BangladeshCOMPANIES UNDER CDS Multinational & Joint Venture Companies Listed

  9. Capital Market in Bangladesh5 YEARS MARKET PERFORMANCE (DSE only)

  10. Capital Market in Bangladesh Sectoral Market Capitalization as of April 2007

  11. Capital Market in BangladeshSectoral Turnover during 2006

  12. Capital Market in BangladeshWeighted AverageSectoral P/E during April, 2007

  13. Capital Market in Bangladesh Dividend of Listed Companies over the Years by Sector

  14. Capital Market in Bangladesh

  15. Capital Market in BangladeshStatistics of IPO Subscription

  16. Capital Market in Bangladesh DIRECTLISTING Provisions

  17. Capital Market in BangladeshFuture Prospects • The capital market in Bangladesh yet far from its real potentials. From present stage, the major future events that will change the market are highlighted as: • Within 3 to 6 months 8 large profitable government enterprises are going to be listed under Direct Listing Method adding value worth another 1 billion Dollar. • The Telecom Giants in Bangladesh are finalizing their offers for IPO in the market. • Power and energy sectors demand for capital is 5 to 10 billion dollar within short time to meet the immediate needs of 5000 MW power demand. (Contd.)

  18. Capital Market in BangladeshFuture Prospects (contd.) • A deep sea port requiring 1 billion dollar is going to start with a policy decision that it will also be listed. • The Pharmaceutical sector and API enjoying WTO benefit is growing sharply. • Textile sector as backward linkage to thriving export oriented garments industries is booming. • Export oriented food processing industry needs huge capital and technical capacity to meet the growing standards in global market for marine food, fruits and poultry. • IT sector with our talented developers, yet to demonstrate the massive potentials of software industry of the country.

  19. Capital Market in BangladeshFuture Programs for Further Development Active market of government, municipal and corporate bonds beside the corporate bonds to create alternative investment. All securities to be brought under CDS within 2 years. All major infrastructure companies, specially those in power, telecommunication and energy sector are to be listed ensure to broaden the market depth with at least US$ 15 billion market cap by 2009 having daily average turnover from current level of average of 10 to 15 million dollar to a level of 70 to 100 million dollar 2 years. To strengthen merchant banks’ capacity to be more active. Ensuring speedy disposal of decisions for market operation. Ensuring greater degree of transparency in financial disclosure and management structure for better corporate governance.

More Related