Mon 15 Oct 2007
I don’t follow Dhaka Stock Exchange (DSE) daily like I follow the US market. DSE remarkably had a good run at least in the last decade and maybe a little longer from what I gather from my periodic observation and news sources.
In Dhaka , I still remember getting started with the stock market but not with much experience in trading but more about knowing the companies that offered shares to public. I still remember buying shares of Bangladesh Thai Aluminum (BTI) when it went public and I was just a little boy at that time. Just hearing about everybody talking about using Thai Aluminum windows and doors in the newly built houses and seeing the start of the apartment construction boom, I just knew that this would be a profitable venture and it was.
Lately, I am seeing more and more news and reviews of Dhaka Stock Market in various internationally renowned sources. Most of these have positive and encouraging messages that hold promise of emerging international investment in our country’s private sector. Last week’s news on readymade garment export falling 25% in the first quarter was depressing, but this latest write-up in Bloomberg reports our surging stock market is up 66% this year and at its 10-year high, relieving some of the worries. Though the raging bull of Bangladesh Stock Market positioned itself second in Asia this year after China, it feels awkward to have anything beyond a cautiously optimistic outlook of the economy considering the “temporary” political condition (a.k.a. CTG) and the impending unknowns beyond that.
Here is the link of the article from Bloomberg: http://www.bloomberg.com/apps/news?pid=20601109&sid=ajYCq0jTs6Fo&refer=home
October 15th, 2007 at 8:13 pm
well Trust Bank had a big IPO because you know who is in power. Thailand’s number one bank is now Thai Military Bank after the coup took place. All that glitters is not gold.
October 15th, 2007 at 10:43 pm
This is certainly a good news.
Hope to see a Bangladesh fund trading in the US markets in near future.
October 16th, 2007 at 3:52 am
Optimistic thought on Bangladehi stocks trading in the US market. Beximco has got to be close to get to that level given the executive’s decision to float shares here. I think we will most likely see investments in Bangladesh from stock traders here through some funds like the ishares, South Asia index fund or something similar. Regardless, it would be awsome to see a Bangladeshi company trading in the US market.
October 16th, 2007 at 3:29 pm
Interesting story, I’m guessing the analyses showed up on some market valuation screen. Nevertheless, its probably not too good an idea to pooh pooh it immediately as some sort of fool’s gold. After all, quite a lot of money has been made in Thailand. Even in July-August 07.
I agree with one of the Fund managers in the story, the market is just not big enough to warrant the big funds coming in. Of course, to put it in perspective, smart hedge fund managers in India talk of capping assets to around USD 200-300 million. So, on small total dollar value allocations, it might be worth a much closer look at some of the names.
If someone has the stomach for the volatility and has a compelling enough high conviction investment case, more power to them. I think you can make money here, though I wouldn’t bet the house on anything. Caveats though:
1. It’s rife with insider trading, so you’ll probably get front run like crazy
2. Mind the free-float
3. There’s no shorting or hedging allowed, so you’re taking beta, currency, inflation, and country risk like there is no tomorrow.
October 18th, 2007 at 12:15 pm
#1 kapedkrusader
Does one company’s large IPO carry a significant change in a particular stock exchange market? Is it feasible that Trust Bank’s IPO will make the market value almost double(from USD 8 billion to USD 15 billion)?
April 27th, 2008 at 6:32 am
It is interesting to see so many people are investing in dhaka stock exchange nowadays. Recently through web searching I came across a website named http://www.stocktaka.com . I was amazed to see a technical Analysis trading system developed for bangladeshi stock market. Technical Analysis is a new concept adopted by Americans not more than 10 years ago. There are two basic theories of trading. The first theory is fundamental analysis, the study of external factors that affect the supply and demand of a particular market. Fundamental analysis pays attention to factors like weather, government policies, domestic and foreign political and economic events, price-earnings ratios, and balance sheets. By monitoring supply and demand factors, or “fundamentals” for a particular market, it is supposedly possible to predict a change in market conditions before that change has been reflected in the price of the market.
Technical Analysis is based on price. Trend followers form the group of technical traders that use this type of analysis. Instead of trying to predict a market direction, their strategy is to react to the market’s movements whenever they occur. Trend followers respond to what has happened rather than anticipating what will happen. They strive to keep their strategies based on statistically validated trading rules. This enables them to focus on the market and not get emotionally involved.
Stocktaka.com is able to give buy signals according to technical analysis thus helping swing traders make good profit in their portfolio.
A must see site for all investors in Bangladesh.