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The DGEN index on the Dhaka Stock Exchange has grown at an impressive CAGR including a tremendous growth in the last calendar year, making it one of the best performing markets in the world. Turnover levels in the both exchanges has however improved significantly and trading activity has seen a strong and sustained growth momentum over the last few years assisted on the supply side with several new IPOs particularly with large state enterprises and large mobile firms. The stock market continues to be dominated by active local retail participation along with strong domestic institutional participation, primarily being local commercial and merchant banks and foreign institutional investors. The market capitalization (of DSE) to GDP ratio is only 50.8% at the end of 2010 while it was 20.19 % at the end of 2008. Expected listing of large cap companies list over the next years will help the capital market to further grow. In terms of risk and return among emerging markets, Bangladeshs risk-return trade-off is very attractive. All along, strong investor protection combined with favorable policy has made the stock market more lucrative to investors in recent years. By enhancing market stability, resilience & liquidity and making the market more vibrant, new Mutual funds sponsored by financial institutions is expected to increase the market depth and introduction of Futures market through derivative instruments in near future will make the stock market more versatile and dynamic. LankaBangla Securities Limited (LBSL) is one of the leading equity brokers in the country with a diverse clientele of institutions, high net worth individuals, foreign funds and retail investors. The company has over time become the largest stock broking company in the country having developed a strong team of highly skilled and experienced professionals. LankaBangla Securities Limited has curved out a distinctive position among stock exchanges in the country in respect of knowledge and experience. It sets up in house training facility backed by own resource persons and research team which has now emerged as one of the leading facilities in securities market. The team of professionals has sound knowledge over financial sector and capital market with long time experience. The trainers team has participated many training programs, forums, seminars abroad and conducted several workshops.

Abstract: Background and Problem Discussion: Financial scholars have been conducting studies of dividend policy for several decades; but different researchers have come to different conclusions. Financial economists have come to different conclusion about factors determining dividend policy and effect of dividend policies on common stock price. A general question may arise in the mind of the shareholders that the corporate dividend policy affects the value of their stocks. So, in addition to the theory of dividend policy, it is necessary to discuss the empirical evidence on the dividend payment practices of the corporations and their possible impacts on common stock prices. Empirical testing of dividend policy may focus on whether the determinants carry information in pricing the common stocks and whether the dividends are the only determinants serving as signals in conveying information about the current and future earnings of the corporation. Purpose: The present study will strives on the relative importance of dividends, retained earnings, and other determinants in the explanation of stock prices in Bangladesh with particular stock price of the companies associated with Dhaka Stock Exchange (henceforth DSE), an emerging capital market of Bangladesh. The prime objective of this study is to study determinants of market share price and to examine their functional relationships with the market price of common stocks trades in DSE. Method: Applied several pre-reviewed models to examine the dynamic relations between stock price and different financial variables. Data for selected companies listed in DSE for the period from 2000 to 2006 were collected from the annual reports of the respective companies, daily price quotation of DSE. Theory: Different related theories like, dividend theory, information contents, theory of information asymmetry, signalling theory, clientele effect theory were discussed to explain the basic concepts that is used to analyze the results. Different related models are also discussed to determine the appropriate model for my study. Analysis: I have used different models to explain the dynamic relationships of market price of common stocks with the determinants of market share price like dividends, retained earnings, lagged price earnings ratio and market price of previous year. Conclusion: The results of the empirical analysis evidences that dividends, retained earnings and other determinants have dynamic relationship with market share price. Findings also suggest that the overall impact of dividend on stock prices is comparatively better that that of retained earnings and expected dividends play an important role in the determination of stock prices whatever determinants, like lagged price earnings ratio or lagged price, are considered. Local time: 21:05:07 New York: 10:05:07 UTC/GMT: 15:05:07 Bangladesh: 21:05:07 Personal Portfolio Trading Community Education Tech Analysis

y Trading

ose: 22.09.11 ) Rangpur Dairy & Food Products Limited ( Subscription Open: 11.09.11, Close: 15.09.11 ) LR Global Bangladesh Mutual Fund One ( Subscr

& P 500 Index

InsCode

DSE's Most Active Stocks

Price chg.[%] Trade Volume Value [lc]

UNITEDAIR SIBL ALARABANK

23.10 24.90 35.40

7655 6614000 158.550 2.94% 2245 3847750 98.692 1.96% 2390 2744250 99.511 0.56% 1869 2433000 79.968 3.66% 1901 2102000 88.656 5.14%

MERCANBANK 31.50 FUWANGCER SPCERAMICS 40.60

40.20 5.51% 2906 1867500 77.333 DSE Daily Index Graph

ays DSE Index Graph

DSI Daily Index Graph

y promoted nt component of the Bangladeshs economy over the years. Bangladesh is among the top emittance as a percentage of GDP has increased from 6% in FY2004 to 11.4% in ckbone, providing support to the international reserves of the country. Historically, most ddle East and overall, the remittance from the Middle East constitutes about 66% of total your comments click here to read this article

a 163,589 crore (US$22 billion) budget for the financial year 2011-2012 last month o increase spending on key sectors by nearly a third to tackle its acute power shortage, l Maal Abdul Muhith announced the budget with a focus on employment generation,

next financial year, which is up by Taka 31,589 crore over the actual outlay of Taka neously the inflation was also expected to ease slightly to 7.5 per cent against a revised food strained government finances by amplifying its already huge subsidy bill. ....leave le

ment in volatile market ar, stock market in Bangladesh has finally witnessed a pause over the past few months ward momentum, the stock markets have refused to move upwards in a straight line, and st several weeks. While one of the reason why the benchmark indices have taken some es the spiraling crude oil prices and a shift in focus of investors towards precious betting on stocks, which could offer healthy returns even in times, when market takes e a decisive breakout. ....leave your comments click here to read this article

r d year so far for the IPOs launched in Bangladesh over the past five and a half months. far been thrown open for the public for subscription in the current year. While at least remium, the other four IPOs have come out so far at par. Out of the seven IPOs so far e current year, four of these issues have come out from new companies including Salvo Baraktullah Electro Dynamics Ltd and MJL Bangladesh Ltd. ....leave your comments

angladesh Stock Market which an Initial Public Offering is offered. The book is filled with the range of prices that share, and when the book gets closed on the closing of primary issue, the issue price is anker by analyzing these values. It is the solicitation of tentative interest from likely nvestment banking syndicate of a new security issue before the offering has been ommission.....leave your comments click here to read this article

e ring of age over the past one decade, the growth of mutual fund in Bangladesh has been new funds. Many banks and financial institutions continue to in the queue with und under a trust. Investment in mutual fund is ideal for investors who do not want to sionally and the collective investment is diversified....leave your comments click here

rally handsomely in 2010 even though U.S and European market had to recover from o GDP ratio has been increased over the year from 30% to 50%. DSE General Index nt in December 5, 2010 and the lowest value was at 4,568.40 point. Over the year, DGEN oint at the end of the year. The total market capitalization of all shares and debentures ecurities at the end of December, 2010 also stood higher at USD 49.4 billion, indicating USD 26.8 billion at the end of December, 2009. . ....Leave your comments click here to opinions.

ogue between Prof Muhammad Yunus and Bangladesh government to reach a solution to ate in the Grameen Bank he founded. I do believe that a compromise is possible and I s to find a mutually acceptable solution,'' Robert Blake, US assistant secretary of state for s conference at the American Club in Dhaka...Leave your comments click here to read

Local Bangladesh Business News

ist by 246 items for the least developed countries (LDCs) and 248 ones for the non-LDCs under the fficials said. "We have in principle decided to shorten the sensitive list. But everything will depend bers of the regional trade bloc at a meeting to be held in Nepal this month," a Ministry of Commerce mity.

in Bangladesh'

report by the Government of Bengal in the 1930s revealed that a poor peasant from Mymensingh ad told a land revenue official in 1929: "My father, Sir, was born in debt, grew in debt and died in ill inherit mine." Following the introduction of microcredit, glorified as microfinance by its local and d with regard to the lot of the rural masses in Bangladesh, especially poor women, is an important

y's international agreements in a bid to reduce the gross tax exemption facilities. The board feels that assessment are causing substantial amount of revenue loss to the government. The decision came on provisions in different international agreements that were incorporated without prior approval of nue board official told the FE.

economies should find other ways to buffer themselves from global crises than stockpiling U.S. Saturday. U.S. Treasuries and the debt of other advanced nations may be liquid, but it is far from d in a paper presented to a group of central bankers gathered here.

users

the cutback on bandwidth charges while service providers say it has "little impact" on their the bandwidth charge of per Mbps for the third time from Tk 12,000 to Tk 10,000 in order to expand assroots level. It first brought down the prices to Tk 17,400 from Tk 28,000 in January 2009 when it

ountry during the last leg of holy month of Ramadan is expected to touch to Tk 100 billion, according sential commodities including new clothes, food items and household utensils has reached around Tk cretary of Bangladesh Dokan Malik Samity (Shop Owners' Association) S. A. Qader Kiron said. e said, citing bad weather and price hike of the products. Mr Kiron said that although devaluation of es, the people's purchasing capacity hasn't increased. He said incessant rain over the last week and the om crowding the shopping outlets.

ents

ed the provision for giving 'discounts' to big corporate bodies. The measure is expected to help rance companies, some insiders observed. Many general insurance companies have been struggling on premiums under pressure from big insurance clients, sources said. Industry insiders said the new on, will ensure additional premium earnings to the tune of around Tk 15 billion annually for the non-

ents

ed the provision for giving 'discounts' to big corporate bodies. The measure is expected to help rance companies, some insiders observed. Many general insurance companies have been struggling on premiums under pressure from big insurance clients, sources said. Industry insiders said the new on, will ensure additional premium earnings to the tune of around Tk 15 billion annually for the non-

ecision making, be it for power sector, population census or any other issue and whether it be nisation. Actually accurate data are the eyes of administration of any country and faulty data simply , data in our country lack credibility.

Articles

Market Commentary Dec 26th to Dec 30th.

2nd to Jan 6th) Please click here to view this full article in pdf format? 26th to Dec 30th) Please click here to view this full article in pdf format? 26th to Dec 30th) Please click here to view this full article in pdf format?

all three DSE indices rising for the week. 2.21% to close to 6,877. The DGEN also increased, though by a slightly better margin of 2.25% to ch better though with a massive 4.91% gain on the week to close at 5,204 points. e saw a rise of 1.16%, a more than doubling of the rise of 0.53% as observed last week. threefold. 153 issues advanced compared to 53 last week, whilst only 97 declining as compared

ek with strong gains by ... more Overview

of Capital Markets ( Dec 19th to Dec

format? (DSE) were down this week by over -4%. -4.36% to close to 6,807. The DGEN also decreased by the same -4.36% margin to close to 8,206. 20 faired slightly worse with a -4.65% decline to close at 4,885. e saw a modest rise by a 0.53% as compared to the - 3.65% wiping out of their values last week.

modestly from last week though. Only 53 issues advanced compared to 40 last week and 193

e of low performance yet a slight rise in market cap and yet improvement in the advance-decline

ure 6, we observe how activity peaked mid-week and then tapered off reducing some of the gains

Market Commentary

dy to invest in the stock market then keep in mind that there is a large element of risk re with care. A significant part of the risk comes from not knowingthe necessary nce in investing. A lack of knowledge and experience constitutes the greatest risk for rd gradual diminishing with a power that comes from extensive knowledge, and ith stock market-how it works, factors that affect stock value, materials you need to read lance sheet, the better you can navigate and shoot close to investment goals- that will same knowledge that enables you to grow your wealth also enables you to minimize

ughly the inevitable risk, so far, in the stock market that comes from a lack of l, that is depending on a degree of knowledge and also understanding many factors like der-lying values of a company and psychological movements of shares. The risk needs rning process, implementing trading evaluation process and varieties of trading

World Business News

nding the payroll tax cut for workers, and they both agree that the cost of the sewhere in the budget.

ho can afford it anymore? Young Americans are delaying key adult milestones because

nefits in the next few weeks, millions of jobless Americans will find themselves without

in November, but that might not bode ill for the entire holiday season.

an to cut taxes.

timistic th, could 2012 be the year the U.S. economy finally snaps out of its funk? Despite the to think so, among them President Obama (whose electoral prospects are dim unless

on closing any more post offices or mail facilities until May 15, 2012, to allow ervice.

ally create as part of the payroll-tax cut debate, and Congressional Republicans say it would

nator vote to block confirmation of a director to run the Consumer Financial Protection he reign of Soviet dictator Joseph Stalin.

arket has improved slightly, but said the economy's immediate future remains on pins

deral Open Market Committee meeting released Dec. 13, 2011.

off than their parents, but some still believe their own personal American Dream is in

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VOL 18 NO -97 REGD NO DA 1589 | Dhaka, Sunday February 13 2011

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Capital market in Bangladesh: Concept and formation

Md Noor Solaiman (Jewel) Capital market is a mechanism to flow fund from the hands of small savers (individuals and institutions) at low costs to those entrepreneurs who do need fund to start business or to business. In the other words, capital market mechanism gives a part ownership of big companies/corporations to small savers like you and me. In simple term, it is a globally accepted scheme to share ownership of economic development with general public. History of capital market: Capital market started in USA at Wall Street in 1653. 1t came to Mumbai, the commercial capital of India around 1890. However, investment in shares boomed in late 1970s. It took many years to come to the land, now comprising Bangladesh. The origin of stock market in Bangladesh goes back to April 28, 1954 when a stock exchange was formed under the name East Pakistan Stock Exchange Association at Narayanganj. Trading started in 1956. It was renamed East Pakistan Stock Exchange Ltd. Transferred to Dhaka in 1958 and again renamed Dhaka Stock Exchange Ltd in 1964. Trading remained suspended during the Liberation War in 1971. The Dhaka Stock Exchange resumed operation in 1976 with nine listed companies as against 452 today. Capital market in Bangladesh got momentum with the establishment of Securities and Exchange Commission in 1994. A big wing was added to the capital market with the incorporation of Chittagong Stock Exchange on April 1, 1995. Operation of CSE started on October 10, 1995. However, there was a market crash in November 1996. Thousands of investors lost their capital and ran away from the capital market. At that time there was trading floor at both the stock exchanges. Trades were conducted through cry-out system. A high powered enquiry committee was constituted to investigate the cause of the market crash, to suggest remedial actions to avoid such crash in future. Cry-out system of trading was replaced by automated trading system under LAN. Virtually capital market facilities are now expandable to all big cities. The CSE has offered internet trading facility to get excess even from outside the country. The DSE will operate the service soon. The Asian Development Bank granted aid to strength the SEC capacity to become a pro-active regulator and facilitator. Now, we are institutionally better equipped to become a vibrant capital market. Product of capital market: a) Shares, b) Debentures, c) Mutual funds, d) Bonds, e) Derivatives, f) Future and options. Players of capital market: a) Investors, b) PLCs, C) Stock Exchanges, d) Brokers and Dealers, e) Merchant banks, f) Securities and Exchange Commission, g) CDBL. Operation of capital market: Each and every step of capital market operation is regulated. Regulations may come from SEC, Stock Exchanges and CDBL under Securities Act. Parameters used to measure size of capital market: a) Number of listed companies, b) Number of securities, C) Size of market capitalisation, d) Index, e) Daily trade volume, f) GSP ratio to market capitalisation,

Efficiency indicators of capital market: a) PE multiple, b) Dividend yield, c) Liquidity, d) Visible presence of regulators, e) Exit route regulation for sick PLC. CSE role in Bangladesh capital market development: Automation, On-line trading, SAFE, Securities Institute, International Seminar, Investors training etc. Future action plan for vibrant capital market in Bangladesh: a) Strengthen SEC, b) Capital Market Education: at school, college and university levels, c) Training of Directors of PLC, Regulator and Broker house officials etc, d) Certification system for certain level of officials, e) Introduction of new Products, f) Incentives for listing with Stock Exchange, g) New pricing mechanism for IPO, h) Appropriate fiscal measures, i) Fully automated settlement system, j) Separate bench at High Court. The Economist Intelligence Unit: The Economist Intelligence Unit is the world's foremost provider of country, industry and management analysis. Founded in 1946 the Economist Intelligence Unit of The Economist magazine is now a leading research and advisory firm with more than 40 offices worldwide. For nearly 60 years, the Economist Intelligence Unit has delivered vital business intelligence to influential decision-makers around the world. The Economist's international reach and unfettered independence make it the most trusted and valuable resource for international companies, financial institutions, universities and government agencies. Its mission is to provide executives with authoritative analysis and forecasts to make informed global decisions. Institutional investor: Institutional Investor is a leading international business-to-business publisher, focused primarily on international finance. It publishes magazines, newsletters and journals as well as research, directories, books and maps. It also runs conferences, seminars and training courses and, is a provider of electronic business information through its capital market databases and emerging markets information service. The DIFC: The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services. In just under two years, over 400 firms have registered with the DIFC which operates in an open environment complemented with world-class regulations and standards. The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. A brief overview of the Tokyo Stock Exchange: The Tokyo Stock Exchange (TES), located in Tokyo, Japan, is the second largest Stock Exchange in the world based on money volume just behind the New York Stock Exchange. The TSE provides a market for Securities and Exchange. The major function of the Exchange is to provide a market place,

monitor trading and supervise trading participants. The Exchange was established May 15, 1878. By 1920s when Japan experienced rampant growth in its economy, trading stock over bonds, gold and silver currencies become the norm. The Exchange was shut down in 1945 and reopened 1949 under the guidance of the Americans after World War II. The TSE accounts 90.6 per cent of all securities transaction in Japan dwarfing its rivals, the Osaka Stock Exchange 4.2 per cent and Nagoya Stock Exchange 0.1 per cent. Stock listed on the Exchange is divided into three sections. The first section, for large companies; the second section for mid-sized companies and the mother section, for high growth start up companies. Proclaimed as the fairest, most liquid, and fasted growing market in Japan. Stock Market in India: Indian stock markets are one of the most dynamic and efficient stock markets in Asia. In terms of the makeup and overall dynamics, the Indian stock markets are at par with international standards. The two national exchanges operating in India are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). These exchanges are well equipped with electronic trading platforms and handle large volume of transactions on a daily basis. Company Security Profiles: The information provided here will help investors and traders of Indian stocks, bonds and debentures. This section will provide useful information on the large, mid-sized and small capitalisation companies which are listed under the BSE and NSE. Conclusion: In today's world, if you rely on fundamental analysis, brokers advise, share price information, newspaper articles or business channels for your investing or trading decisions, you are asking for a painful experience in the markets. Whether you are a first time investor, a seasoned pro, an "in and out" day trader or a long term investor the Dhaka Stock Exchange Ltd, Chittagong Stock Exchange Ltd, StockBangladesh.com and Securities and Exchange Commission will provide you with the necessary information you need for maximum profits and success in today's dynamic markets. The methods used to analyse securities and make investment decisions fall into two very broad categories: fundamental analysis and technical analysis. Fundamental analysis involves analysing the characteristics of a company in order to estimate its value. Technical analysis takes a completely different approach; it doesn't care one bit about the "value" of a company or a commodity. Technicians (sometimes called chartists) are only interested in the price movements in the market. Despite all the fancy and exotic tools it employs, technical analysis really just studies

supply and demand in a market in an attempt to determine what direction, or trend, will continue in the future. In other words, technical analysis attempts to understand the emotions in the market by studying the market itself, as opposed to its components. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better investor. The writer is a Senior Executive Officer (Brokerage Division) The Premier Bank Ltd. O.R. Nizam Road Branch, Chittagong

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