A good year for the capital market

The country’s Dhaka and Chattogram stock exchanges ended the year with their broad indices gaining a quarter as better-than-expected economic and corporate performance and low interest rates attracted a larger base of investors to equities. .

DSEX, the general index of the Dhaka Stock Exchange (DSE), closed the year at 6,756 points on December 30, the last trading day of 2021, and the annual gains of 25% came after the global performance of the ‘index in the second half of the previous year.

The blue-chip DS30 index achieved nearly 29% annual gains while the DSES Sharia-Compliant Securities Index gained 15.22%.

As in 2021, the DSE saw its historically high market capitalization and by year-end it was up almost 21% to bring the market value of all listed companies to over 18% of the country’s GDP.

DSE’s average daily turnover increased to over Tk 1,475 crore from Tk 649 crore the previous year, it was a good year for the capital market, DSE said in his press release.

The primary market was much more dynamic in 2021, as fundraising through Initial Public Offerings (IPOs) increased dramatically, fixed income issuance saw its much needed take-off, small businesses have got their separate platform in the stock exchanges and reform in the way people profit from primary stocks.

In 2020, eight companies collectively raised Tk 986 crore in shares through their IPOs. In 2021, total fundraising jumped more than 60%, as 14 successful IPOs were launched this year.

However, the lack of reputable companies on the newcomer list has frustrated many observers this year.

The real breakthrough came in the debt instruments market as regulators were determined to establish a vibrant fixed income market that could reduce the pressure on the country’s banking system to fund long-term projects with their funds. deposit funds mainly collected in the short or medium term. .

Fixed Income – Various bonds and the first-ever private sector Sukuk, worth around Tk 12,000 crore, gained Bangladesh Securities and Exchange Commission approval this year.

Bonds attract a diverse range of issuers, including major non-governmental organizations, as they find a practical and winning solution for financing their activities.

DSE Managing Director Tarique Amin Bhuiyan said the past year has also been a good one in terms of market progress and product development tasks, the results of which would be seen in the coming days.

The capital market‘s over-reliance on equities began to wane in 2021, which would provide investors with a better opportunity to better diversify their portfolios.

However, the main task of making treasury bills tradable on the stock exchanges is still pending as it was planned to be done in the previous year.

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