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Chambers of commerce

Encouraging Stock Market Outlook in Bangladesh

Strategic Insights

— 1 min read

Chairman of the Dhaka Stock Exchange (DSE) Mominul Islam expressed a positive outlook for the country's stock market, citing a gradual recovery as investors return to the market. The market has seen increased activity, with the DSE gaining 46 points and the Chittagong Stock Exchange (CSE) up 57 points in early trade. Key stakeholders, including the interim government and the Bangladesh Securities and Exchange Commission (BSEC), have taken steps to support the capital market, reducing taxes and promoting market discipline.

Key Takeaways:

  • Mominul Islam, Chairman of the Dhaka Stock Exchange, described the country's stock market outlook as encouraging, with investors gradually returning to the market.
  • The market has begun to recover, with the DSE gaining 46 points and the CSE up 57 points in early trade.
  • The interim government has taken unprecedented steps to support the capital market, including reductions in turnover tax, merchant bank taxes, and adjustments in corporate tax rates.
  • The Bangladesh Securities and Exchange Commission (BSEC) has become more proactive, restoring market discipline through initiatives such as resolving issues related to CC account interest and reducing BO account renewal fees.
  • DSE and DCCI agreed to organize separate programs to facilitate SME listings on the SME Board and the Alternative Trading Board (ATB).
  • SMEs contribute significantly to the economy, with around 75 percent of the private sector composed of small and medium enterprises.
  • Bangladesh's market capitalization to GDP ratio remains below 20 percent, compared with 40-50 percent in similar economies.

Statistics:

  • DSE gained 46 points in early trade.
  • CSE up 57 points in early trade.
  • Only 360 out of more than 200,000 companies in RJSC are listed.
  • SME sector constitutes around 75 percent of the private sector.
  • Bangladesh's market capitalization to GDP ratio is below 20 percent.
  • Estimated market capitalization of SME sector.

Sources:

  • [Chairman of the Dhaka Stock Exchange (DSE) Mominul Islam]
  • [Dhaka Chamber of Commerce and Industry (DCCI) office]
  • [Bangladesh Securities and Exchange Commission (BSEC)]

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