present performance of stock market /abdul motaleb shobuj

Present performance of Stock Market

Investment Analysis & Portfolio Management

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What is a Stock?Stocks are issued by companies in order to raise capitals and are bought by investors in order to acquire a portion of the company.

For example, if a company has 2000 shares of stock outstanding and a person owns 50 of them, then he/she owns 2.5% of the company.

Most stock also provides voting rights, which give shareholders a proportional vote in certain corporate decisions

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What is Stock market?A stock market is a place where the stocks and securities of various companies are traded.

“Stock exchange” - means anybody of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.

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Why Stock Prices Rises ?

1. Demand and supply2. Bank rate3. Speculative pressure4. Actions of underwriters and

other financial institutions5. Change in company’s board of

directors

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Sub-Markets of Capital Market

Primary Market

SecondaryMarket

Capital Market

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Sub-Markets of Capital Market (cont.)

• The Primary MarketThe primary market deals with newly issued securities and is responsible for generating new long-term capital.

• The secondary MarketThe secondary market handles the trading of previously-issued securities, and must remain highly liquid in nature because most of the securities are sold by investors.

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SEC Regulating the CSE and DSE

SEC

DSECSE

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Bullish Trend

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Bearish Trend

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Line Chart

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Bar Chart

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Japanese Candlestick Charts

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Index Graph of Last 30 days from 04-06-2015 to 04-07-2015 Last month X index shows thatHighest value: 4617.70227Lowest value: 4453.36798

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Index Graph of Last 1 Year from 04-07-2014 to 04-07-2015

Last one year X index shows thatHighest value: 5334.03742Lowest value: 3959.73776

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Index Graph of Last 30 days from 04-06-2015 to 04-07-2015

Last one month of S index shows thatHighest value: 1122.02781Lowest value: 1087.49399

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Index Graph for a Period from Launching Date 20-01-2014 to 04-07-2015 

Last one year S index shows thatHighest value: 1248.77631Lowest value: 973.45392

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Impact Of EconomyThere is a negative impact in economy. Stock market is not stable and there is unsecured for investment. Ultimately people won’t invest and investment will be decrease. By less invest production will be decrease and unemployment will be increases. When unemployment increases automatically inflation will be increases. Finally, economy won’t run smoothly.

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SUMMARYAll of this abidance prove that the present performance of stock market is not constraint there sometime upward and sometime downward. Main reason of the Bull & Bear market for unorganized capital market, where all of data of the companies are not given accurate and create fake balance sheet for share price up. Another reason is that in the Stock Market Company and organization are so little the investors have no chance to choose more than one.

Our capital market is an emerging market. In the world there are two markets which showed almost 100% growth rate, one is stock exchange of china and another is Dhaka stock exchange. But we were not able to keep this pace. However capital market of Bangladesh has been developing by the effort of different related parties along with SEC. if everything is going on the right track we hope that we will have a very strong capital market in recent future. As a result economic development will be achieved.

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Capital Market Development Program in Bangladesh

Strengthening market regulation and supervisionDeveloping the capital market infrastructureModernizing capital market support facilitiesIncreasing the limited supply of securities in the marketDeveloping institutional sources of demand for securities in the market and Improving policy coordination.

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Suggestions To Improve The Activities Of DSE

To force the listed companies to publish their annual reports with actual and proper information that can ensure the interests of investors.

To introduce automated monitoring system that may control price manipulation, malpractices and inside trading.

To introduce full computerized system for settlement of transactions.

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Suggestions To Improve The Activities Of DSE

(cont.)To force the listed companies to declare and pay regular dividends through conducting Annual General Meeting.

To take remedial action against the issues of fake certificates.

Banks, insurance companies and other financial institutions should be encouraged deal in share business directly.

To punish the member brokers for breaching of contract.

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Thank You Everybody