The Dhaka Stock Exchange’s (DSE) key index has shown a mixed performance in the first half of the year 2023, though its six-month return was much lower than those in peer countries Sri Lanka and India, and also in Vietnam, and the USA.
The DSEX, the benchmark index of the DSE, in the January-June period of 2023, rose 137.3 points to close at 6,344, indicating a 2.20 per cent index return in the period.
Meanwhile, the return on the US key index USA S&P 500 was 15.90 per cent, followed by 11.40 per cent on Vietnam’s VNI 30, 11.10 per cent on Sri Lankan CE All-Share index, and 6.40 per cent on India’s BSE Sensex in the first half this year.
Bangladesh, however, fared better than Pakistan, the UK, and Indonesia in terms of index returns during the period.
The return on the Pakistani key index – Karachi100 – was 2.2 per cent, while it was 1.10 per cent on the UK’s FTSE100, and 2.80 per cent negative on Indonesian IDX Composite index, as per a half-yearly global capital market review conducted by Green Delta Dragon Asset Management Company.
The broad indices of most markets generated comparatively higher returns, driven by the improving situation of macroeconomic indicators, and the reverse trend of the US Fed rate, the review said.
After experiencing a turbulent year in 2022, Bangladesh’s stock market has shown a mixed performance throughout the period (January-June 2023), and the broad index closed in green territory at the end of June.
However, DS30, the blue-chip index of the Dhaka bourse, dropped by 2.5 points or 0.1 per cent during the period to close at 2,192.8 points at the end of June this year. Gainers outstripped losers at the capital bourse of Bangladesh during the period.
At least 190 stocks generated profits in the period under review, while 108 stocks incurred losses, and the rest 95 stocks remained unchanged despite the ongoing macroeconomic challenges, especially liquidity shortages in the banking sector, and rising bank deposit rates, thanks to the floor price.
Investors were mostly concentrated on small-cap stocks that dominated large-cap stocks throughout the first half of 2023; however, many large-cap stocks also delivered good dividend yields during the period, Green Delta Dragon Asset Management Company review stated.
Overall, investors’ participation had been satisfactory during the period, and the DSE’s daily average turnover remained above Tk 600 crore during the period despite the prevailing floor price regime keeping a large number of stocks illiquid.
The first half of 2023 saw the listing of only two IPOs under the fixed price method, compared to four in the same period of 2022.
Midland Bank’s IPO saw 26 per cent of its shares unsubscribed, reflecting investors’ lack of confidence in the banking sector due mainly to the poor performance of Global Islami Bank in the last year. However, the IPO of Trust Islami Life Insurance Limited registered a 670 per cent return on the price.
