The capital market showed notable progress during 2008. The monthly average price index at the Dhaka Stock Exchange (DSE) showed an upward trend along with substantial improvement of turnover value. The monthly average of all share price index (DSI) DSEG, and DSE20 increased buy 55.1 percent, 49.6 percent, and 39.6 percent respectively in June 2008 over June 2007. The daily average turnover stood at Tk. 2.3 billion in the year 2008 against Tk. 0.7 billion in the year 2007 showing a healthy growth of 223.4 percent. The increased market turnover in 2008 was largely contributed by trading of shares of banks, insurance companies, mutual funds, and power sector companies. At the end of 2008, market capitalization at DSE was 17.8 percent of the country’s GDP compared with 16.1 percent in June 2007. However, volatility in the stock market seems to have magnified recently, which needs careful investigation and monitoring by the stock market regulators. |