The Dhaka Stock Exchange broad Index topped the list of top performing markets in the global capital market in August after Bangladesh’s economic activity began in the post-lockdown period. The index rose 15.6 percent during the month of August, according to a report by BRAC EPL and Bloomberg .
Originally, the reconstituted commission headed by Shibli Rubaiyat-ul-Islam started its work last May. Since its inception, the Commission has implemented many capital market friendly initiatives. Due to the positive decision of BSEC, the capital market started to turn around. New hope has returned to life in the sluggish capital market. The capital market has been recovering for the last three months due to various steps taken by the commission. Falling interest rates have also played a role in boosting investment in the market. As a result, with the participation of local investors, the transaction has exceeded thousands of crores of Tk, experts explained.
Since June this year, the DSE main price index has risen 963 points or 24 percent. At this time, the main index of DSE increased by 6 points or 15.6 percent.
Entrepreneurs-managers of listed companies are jointly required to hold at least 30 per cent shareholding, giving less than two per cent shareholding to their own companies, as well as restructuring weak-based ‘Z’ category companies in a major overhaul. Plays the biggest role in return.
Regarding the identification of the best performing market in the world in August, BSEC chairman Prof Shibli Rubaiyat-ul-Islam said, ‘There is a manpower crisis in BSEC. We are doing a lot of work with less manpower. Hopefully a good news will boost our enthusiasm and confidence. In the days ahead, we will be able to work with more energy. This success is the result of our teamwork. Due to such position in the capital market, our teamwork will be stronger and the country’s economy will go much further.
The top performing portfolio stock in August was Bangladeshi pharmaceutical company. The review found that from 2016 until the beginning of the corona transition in the country, the capital market was in a continuous decline. At that time, the main index of DSE lost 42 percent from 6254 points to 3603 points on March 17 this year. Later, the situation in the capital market began to improve after the commission headed by Shibli Rubaiyat began its work. The government and Bangladesh Bank also came forward with the help of the capital market.
Shibli Rubaiyat’s commission took effective initiative in reorganizing the board of Z category company which has not paid any loss or dividend for years. Entrepreneurs and current directors of companies in the Z Group are prohibited from selling, buying, transferring and pledging their shares without the approval of the regulatory body. Companies belonging to the Z group were asked to reconstitute the board within 45 working days.
Failure to do so, the current directors and entrepreneurs will not be able to remain as directors of any other listed company and capital market intermediary company. Initiatives were also taken to ensure good governance of the company in the ‘Z’ group by reorganizing the board through the appointment of special auditors and observers by the commission. In addition to ensuring the annual general meeting, all types of shareholder meetings are required to be facilitated on e-voting digital platforms.
The commission maintained the floor price in spite of various pressures. Due to all such steps of the new commission, the market has recovered. At this time, the amount of foreign share sales also decreased. Besides, policy support was also given to the capital market by the government and Bangladesh Bank.