The prime index of Dhaka Stock Exchange (DSE) has increased by 1,144 points hitting a record growth of about30 percent in the last 13 consecutive weeks.
The DSE main reserve also rose by Tk 75200crore to stand at Tk 3,85,633 crore during the period.
The share prices of prime index on the Dhaka Stock Exchange (DSE) are gradually increasing hitting a 12-month high a week ago.
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 report.
According to published reports, 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.
Meanwhile, the port city bourse, the Chittagong Stock Exchange (CSE), also saw a positive growth during the same period with its selective category index (CSCX) gaining around 1938 points to close at almost 8,602 8756.91 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.
Besides, the country’s economy has turned around, which has seriously affected due to Coronavirus pandemic to build investors’ trust in the market, they mentioned.
The Asian Development Bank's projection that Bangladesh's economy is expected to grow at a rate of 6.8 per cent in the current fiscal year, recovering from the severe adverse impact of Covid-19 pandemic, also boosted investors' confidence, they added.
After taking over in May, the new Bangladesh Securities and Exchange Commission (BSEC) Chairman,ShibliRubaiyat held meetings with top officials of the Ministry of Finance, Bangladesh Bank and NBR.
He talked to stock market-related parties as well, a senior official of the BSEC said.
The regulator took various initiatives to bring back investors and entrepreneurs to invest in the market, he added.
There is no alternative to reforming the stock market to accelerate the economy, Rubaiyatunderscored.
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 officials of the government, he said.
During the rogue virus 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, commercial banks were urged to return to invest in the stock market to attract investors.
AhsanurRahman, BRAC EPL Stock Brokerage House Acting Chief Executive Officer (CEO), said, “After checking the data of different stock markets of the world, it was noticed 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 during this period,”he added.
Among many strict measures to discipline the stock markets were rejecting IPO applications of several poor performing companies.
Eminent economist and market expert Prof Abu Ahmed told Bangladesh Post, “The market has gone down a lot and has significantly risen from there.”
In this case, regulatory measures have played a crucial role for boosting the confidence of the stock investors, which geared up the index and turnover in recent times, he mentioned.
