A 14-per cent gain in the benchmark index of the Dhaka Stock Exchange in the just concluded year was not significant enough considering the increase in the number of tradable securities at the bourse in the period, capital market experts said. The DSEX advanced by 14 per cent over the year to finish at 4,865 points on December 30 last year from 4,266.55 points on December 30 in 2013, while the number of tradable securities rose by 13 per cent in last year, a DSE data showed.
‘The situation indicates that the recovery of the capital market in last year was not that significant,’ M Baki Khalili, a Dhaka University finance department teacher, told New Age on Friday.
The market had witnessed sharp fall during 2011-12 after the 2010-11 market crash. But the market started to recover from 2013.
Former Bangladesh Securities and Exchange Commission chairman Farook Ahmed Siddiki told New Age that the capital market last year recovered marginally and some short of stability was there.
‘If we consider the scale of market fall in the years following the crash, the rise in indices of the bourse last year was not that significant,’ Mohammad Musa, professor (school of business) at United International University, told New Age.
The indices might have recovered some ground due to increased share prices of some large capitalised companies, he said.
According to the DSE data, the number of tradable shares and securities listed with the DSE was 4,393 crore as on December 30, 2013 which increased to 4,969 crore as on December 30, 2014.
As per the DSE data, 17 companies raised Tk 1,980 crore through issuing initial public offerings, while nine raised Tk 998 crore by offering rights shares in 2014.
In 2013, six companies raised Tk 1,803 crore through rights offers and 12 companies Tk 830 crore through IPOs.
Last year 144 companies raised Tk 2,959 crore by offering 295 crore bonus shares, while 152 listed companies raised Tk 3,141 crore from the capital market by issuing 314 crore bonus shares in 2013.
The price earning ratio of all the listed companies increased to 17.77 per cent on December 30, 2014 which was 17.17 per cent in the previous year.
The then key index of the DSE, DGEN, after the market bubble during the year 2009-2010 crash-landed from 8,918.51 points reached on December 5, 2010 to 7,572.61 points on January 30, 2011.
The worst-ever stock crash in the country’s history had wiped out even the initial capital investment made by thousands of investors.
The aftershock of the market crash of late 2010 had continued throughout the following years where the DGEN had lost 3,032 points in 2011 and 1,038 points in 2012.
The DGEN hit the lowest ebb on January 4, 2013 at 3,383.23 points since November 15, 2009.
The Dhaka bourse introduced new general index, DSEX, on January 28, 2013 replacing the old one. The DSEX hit its lowest value at 3,438.90 points on April 30, 2013 and reached its highest at 4,439.60 points on November 20 in the year.
-With New Age input
