Retailers trade at Dhaka Stock Exchange office. BBN file photo

Dhaka, Bangladesh (BBN)– Bangladesh’s capital market passed an eventful quarter for the first three months of this fiscal year (FY) as all three indices and market cap of the Dhaka Stock Exchange (DSE) touched the record high.

DSEX, the benchmark index of DSE, rose 437 points or 7.73 percent during the July-September period of the FY 2017-18.

The two other indices — the DS30 index, comprising blue chips and the DSE Shariah Index (DSES) — also followed the suit to reach at 2,178 points and 1,346 points, adding 94 points and 49 points respectively during the July-September quarter of the current fiscal year.

The total market capitalization of the DSE also increased BDT 298 billion as the DSE market cap stood at BDT 4,099 billion at the end of September, from BDT 3,801 billion on June 30, 2017.

The total market capitalization of the DSE reached all-time high at BDT 4,142 billion on September 17.

However, the DSEX, which replaced the DGEN in four-and-a-half-year back, reached at 6,240 points on September 17, the highest level since its inception in January 2013.

The DS30 index, comprising blue chips also reached its higher level at 2,226 points on September 17 since its introduction in January 2013.

The DSE Shariah Index (DSES) also reached at its highest level at 1,391 points since its inception in January 2014.

A new company – BBS Cables was listed in the capital market during the quarter. Thus the total number of listed securities increased to 343 at the end of the first quarter (Q1) of the FY 18.

The average price earnings (PE) ratio of DSE increased to 16.31 at end of September 2017 compared to 15.75 at the end of June 2017 as prices of stocks increased.

The daily average turnover on the DSE increased significantly to BDT 9.78 billion in the Q1 of the current FY.

The banking sector dominated the turnover chart in August and September of 2017. In August, banking sector grabbed 25.83 percent of DSE’s total turnover.

In September captured 40.80 percent turnover. In July, 2017, banking sector contributed 15.65 percent transaction.

The sector-wise DSE data showed that market capitalization improved in banks, telecommunication and pharmaceuticals & chemicals during the July-September quarter.

The banking sector’s market cap increased to 20.58 percent at the end of July-September quarter from 17.3 percent in April-June quarter of the previous fiscal year.

During the July-September 2017, investment on share purchase by the foreign and non-resident Bangladeshi (NRB) investors reduced to BDT 16.16 billion from BDT 17.30 billion in April-June period of 2017.

At the same time, total shares sales by foreign and non-resident Bangladeshi investors increased BDT 12.11 billion from BDT 11.10 billion in the previous quarter.

As a result, net investment of foreign and non-resident Bangladeshi investors during July-September quarter lessened to BDT 4.07 billion as compared to BDT 6.20 billion in April-June quarter of the current fiscal year.

Market capitalization to GDP ratio of DSE was 17.64 percent in August 2017 which is still the lowest compared with some selected capital markets of Asian countries.

The ratio for Indian (91.68 percent), Pakistan (30.49 percent) and Sri Lanka (23.24 percent) were higher than that of Bangladesh.