Rare phenomena in stock market

Rare incidents occurred on Monday (August 10th) at the Dhaka Stock Exchange (DSE), the country's main stock exchange. Although the DSE price index declined last, the market capitalization increased, which is rarely seen in the stock market.

Usually the market capitalization decreases with the fall of the index and the market capitalization increases with the rise of the index. But Monday was an exception.

The main index of DSE, DSEX decreased by 12 points but capitalization increased by Tk 282.47 crore.

It is seen that the DSEX index fell from 4545.15 on Sunday to 4533.06 points at the end of Monday's trading. In contrast, the market capitalization of 3 lakh 45 thousand 134 crore 39 lakh taka went on to touch 3 lakh 45 thousand taka mark.

There is a possibility of such exceptions occurring in the calculation of the index on the basis of free float (normally salable) shares. For example, Grameenphone is a big company in the stock market. The free float share of this company is only 10 percent with a paid up capital of 1692.57crore taka. This 10 percent share is taken into account in calculating the index. However, 100% of the market capitalization is taken into account. That is why exceptions to market capitalization with the index have the potential to occur.

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