National, Front Page

Capital market reaches new heights

Published : 30 Dec 2021 10:17 PM

The country's capital market has reached new heights during this year despite the Covid-19 pandemic, experts said.

The country's capital market is better than at any time in the past, now the capital market has become a good place for investments, the experts said.

Despite the negative impact of corona on the overall economy, the country's capital market is showing signs of recovery, they mentioned.

The government’s time-befitting measures have facilitated the country’s capital market to turn around in building confidence among the people to invest in it, they further said.

The stocks witnessed an upward trend for a long time due to positive regulatory initiatives to put fresh funds on stocks as well as rising Beneficiary Owners (BO) accounts in the capital market.

Professor Abu Ahmed, capital market analyst, and an eminent economist, told Bangladesh Post, “The country's capital market is better than ever before."

He said, “People’s interest in the capital market has increased due to tightening investment in savings certificates and lower interest rates on bank deposits.” 

Investment in the capital market is increasing, especially as there are fewer opportunities for alternative investment, he said adding that investor confidence has begun to return after the new commission took charge and its various positive steps. 

“As part of its move, new investors are entering the market every day and BO accounts are increasing. As a result, transactions and market capitalization in the capital market are increasing,” he mentioned.

The capital market now draws the attention of investors as a big sector, it is the great success of the capital market, he added.

“The government should immediately prepare the ground quite well to bring in some good companies in 2022 in order to undertake a drive to develop a long-term financing capital market,” Ahmed mentioned.

He suggested investing in companies that are continuing to make good profits over the last few years with business-successful organizations, and efficient management authorities, when considering investing in the capital market.

“As a result, investors have to invest by carefully monitoring the progress. Otherwise, we have to face the risk,” Ahmed said, adding that the government should create a concrete policy to support the capital market.

Meanwhile, the DSE Broad Index (DSEX), the main price index of the Dhaka Stock Exchange, rose by 1354.59 points or 25.08 percent, to 6,756.66 points in 2021. 

In 2021, the DSEX rose to a high of 7368 points and a low of 5044.99 points. The journey of this index started on January 28, 2013, with 4,090.47 points.

The DSE30 Index, comprising blue chips, increased 568 points or 28.95 percent to close at 2532.58 in 2021 and the DSE Shariah Index (DSES) went up 189 points or 15.22 percent to close at 1,431.

Market capitalization of the DSE went up by 20.96 percent or Tk 93.966 crore to Tk 5,42,000 crore in 2021.

Before the lockdown imposed by the government, this fund declined by 6.28 percent or Tk 29749.91 crore to Tk 443345.80 crore on April 4 from Tk 473095.70 on March 4.

In 2021, the market capitalization reached a new high of Tk 5,86,000 crore and the minimum was Tk 4,43,000 crore.

A total of 15 companies have offloaded primary shares worth Tk 16.58 billion in the just-the concluded year 2021, the highest amount in more than a decade, amid virus-induced sluggish economic activities.

In 2020, it was only eight companies to be listed in the DSE and these companies have offloaded primary shares worth Tk 9.85 billion.