3. General Information
Official Name: The People's Republic of Bangladesh
Geographical location South Asia
Political system: Parliamentary democracy
Capital name: Dhaka (Metropolitan Area 1528 sq.km)
Time zone: GMT + 6 hours
Major cities: Dhaka, Chittagong, Khulna, Rajshahi, Sylhet, Barisal, Rangpur
Principal rivers:
Padma, Meghna, Jamuna, Brahmaputra, Teesta, Surma and
Karnaphuli.(total 310 rivers including tributaries).
Principal industries: Readymade garments, pharmaceuticals, cements, garment
accessories, chemicals, fertilizers, newsprint, leather and
leather goods, paper, sugar, jute, ship building.
Principal exports: Readymade garments, frozen foods (shrimps), leather, leather
products, jute, jute products, tea, ceramic, textile fabrics,
home textile, chemical product, light engineering products
including bi-cycle.
Alliance Financial Services Limited
4. Geography
Boundary: North - India (West Bengal Meghalaya)
West - India (West Bengal)
East- India (Tripura & Assam) & Myanmar
South - Bay of Bengal
Area: 56,977 sq. miles or 147,570 sq. km.
Territorial water: 12 nautical miles Territorial Sea, 200 nautical miles Economic
Zone.
Principal seasonal crops
and fruits:
Paddy, jute, wheat, tobacco, pulses, oil seeds, spices,
vegetables, jack-fruit, banana, mango, coconut, pineapple etc.
Natural resources: Natural gas, coal, lime, white clay, granite, glass sand.
Alliance Financial Services Limited
5. National Demographics
Total population (million) 156.59
Population Growth Rate 1.22 %
Population Density (per sq km) 1,203 Person
Life expectancy (Year) 70.7
Adult literacy rate 58.79 % (15 years +)
Alliance Financial Services Limited
Source: http://data.worldbank.org/indicator
Source: http://www.theglobaleconomy.com/Bangladesh/Literacy_rate
6. National Demographics
Total population (million) 156.59
Population Growth Rate 1.22 %
Population Density (per sq km) 1,203 Person
Life expectancy (Year) 70.7
Adult literacy rate 58.79 % (15 years +)
Alliance Financial Services Limited
Source: http://data.worldbank.org/indicator
Source: http://www.theglobaleconomy.com/Bangladesh/Literacy_rate
8. Against the backdrop of the global economic slowdown,
the Bangladesh economy has performed strongly over
the past few years.
Despite the fallout from the Euro debt crisis still
contributing to an uncertain environment, the
Bangladesh economy has pursued accommodative
monetary and fiscal policies.
Alliance Financial Services Limited
9. Agriculture is one of the prime sectors of Bangladesh‘s
economy.
About 80 percent of the total population lives in rural
areas, with 70 percent of them employed in agriculture.
Agriculture contributes about 20 percent to the
country's GDP, about 15 percent of which is contributed
by the crop sector alone.
Food security, employment creation and poverty
alleviation are closely related with the development of
agriculture.
Besides, there is another issue on achievement of self-
sufficiency in food production within 2013.
Alliance Financial Services Limited
10. Reason/C
ountry
2009 2010 2011 2012 2013 2014 2015 E 2016 E
World -0.009 5.379 4.169 3.404 3.408 3.389 3.451 3.759
Advances
Economies -3.422 3.072 1.692 1.224 1.366 1.805 2.363 2.416
E & D
Economies 3.08 7.384 6.24 5.16 4.997 4.59 4.261 4.737
E & D
Asia 7.467 9.556 7.714 6.78 7.039 6.799 6.644 6.419
Bangladesh 5.315 6.03 6.494 6.259 6.066 6.108 6.306 6.758
China 9.214 10.41 9.3 7.763 7.751 7.364 6.762 6.3
India 8.48 10.26 6.638 5.081 6.899 7.168 7.46 7.468
Pakistan 0.36 2.58 3.62 3.84 3.70 4.14 4.30 4.70
Vietnam 5.40 6.42 6.24 5.25 5.42 5.98 6.00 5.80
Source: IMF World Economic Outlook April 2015
Alliance Financial Services Limited
11. Alliance Financial Services Limited
Compared to the global average, Bangladesh has
witnessed higher GDP growth rates.
Despite a fall in world output during the
immediate aftermath of the financial crisis in
2009, Bangladesh has consistently exceeded
growth rates of 6% per cent since 2010.
Moreover, Bangladesh has achieved average
growth rates and is projected to remain close to
the developing countries' averages in 2015 and
2016.
13. Alliance Financial Services Limited
Bangladesh has experienced a moderate rate of
inflation under double digit throughout last
decade except FY 2011. The rate of inflation of
Bangladesh has started to reduce after reached
very high levels during FY 2011.
According to IMF World Economic Outlook April
2015, inflation of Bangladesh will decline and
stabilise around single-digit at the end of this
year through a combination of restrained fiscal
and monetary policies along with an easing of
supply constraints over time.
14. Alliance Financial Services Limited
Foreign currency reserves of Bangladesh have stood at $23.05
billion as on March, 2015
Data Source: Bangladesh Bank
15. Alliance Financial Services Limited
Wage earner’s remittance flow of the country have stood at $1.24
billion during the month January, 2015
Data Source: Bangladesh Bank
16. Alliance Financial Services Limited
According to IMF World Economic Outlook per capita GDP of
Bangladesh will be reached at US $ 1,387 on the year 2016.
Source: IMF World Economic Outlook April 2015
17. Alliance Financial Services Limited
Goldman Sachs investment bank and economist
Jim O'Neill in a research paper identified –
Bangladesh, Egypt, Indonesia, Iran, Mexico,
Nigeria, Pakistan, Philippines, Turkey, South
Korea, and Vietnam – as N-11 (Next Eleven
Countries) due to having a high potential of
becoming, along with the BRICs, the world's
largest economies in the 21st century.
The criteria that Goldman Sachs used were
macroeconomic stability, political maturity,
openness of trade and investment policies, and
the quality of education.
18. Alliance Financial Services Limited
The long-term economic outlook of Bangladesh will be
positive.
GDP size of Bangladesh will be almost double within year
2025 and will reach from US$ 110.61 billion (2011) to
US$ 1,466 billion (2050) according to Goldman Sachs.
19. Alliance Financial Services Limited
GDP per capital of the country will also increase almost
same rate.
According to Goldman Sachs GDP per capital of
Bangladesh will be reached at US$ 790 on year 2020
whereas actual GDP have already reached at US$ 1,172
on the year 2014, which indicate actual position of the
country much better than Goldman Sachs forecasting.
21. Bangladesh Securities and Exchange Commission (BSEC)
was established on 8th June, 1993 as the regulator of the
country’s capital market.
BSEC achieved IOSCO 'A‘ membership on December 22,
2013.
DSE, the first stock exchange of the land was
incorporated on April 28, 1954, while the second stock
exchange – CSE was established in 1995.
After independence of Bangladesh, trading activities
started in August 1976.
Alliance Financial Services Limited
22. From 1998 automated screen based trading was
introduced by both the exchanges through LAN and WAN
connectivity and HP non stop trading platform is providing
basic architecture.
Central Depository Bangladesh Limited was incorporated
on August 2000 for recording and maintaining securities
accounts and registering transfer of securities; changing
the ownership without any physical movement.
Alliance Financial Services Limited
23. The Stock Exchanges are registered as Public Limited
Companies under companies Act.
Ownership of Stock Exchanges demutualize from the trading
right during 2013
Presently DSE has 250 TREC holders while CSE has 146 TREC
holders.
The exchanges are Self Regulatory Organizations and their
activities are regulated by
- Articles of Association
- Own set of Rules, Regulations and Bye-laws
- Exchanges Demutualization Act 2013
- Securities and Exchange Ordinance 1969
- Securities and Exchange Rules 1987
- Other relevant laws.
Alliance Financial Services Limited
24. Public Market : For general trading
Spot Market : For pre-book closer trading
Block Market : For bulk volume trading
Odd lot Market : For odd lot trading
Trading Session
Trading at DSE & CSE is performed through a non-
stop platform in following sessions :
Continuous Trading Hours : 10.30 AM to 2.30 PM
Trading Day : Sunday To Thursday
Alliance Financial Services Limited
25. Primarily Settlement Period is T+1 and T+2 Days
All the trades are cleared and settled, as per
Settlement of Stock Exchange Transactions Regulations
1998.
From January 24, 2004 Central Depository System
(CDS) started functioning & transactions of all demated
Securities are settled and registered through CDS
A central clearing company is under process to ensure
efficient financial settlement
Alliance Financial Services Limited
26. Disclosure Requirements by the Listed Companies:
Yearly Audited Financial Statement (FS) within four months of the
year end.
Half-yearly & 3rd
Quarterly Un-audited FS within one month of the
first half-year end.
1st
Quarterly Un-audited FS within 45 days of the end of respective
quarter.
Price Sensitive Disclosures
Preparation of the FS mandatory to company with:
International Accounting Standard (IAS)
International Standards for Auditing (ISA)
Corporate Governance:
All the listed companies are required to adopt the Corporate
Governance Guidelines issued by SEC and required by Listing
Regulation
Alliance Financial Services Limited
27. Country M.Cap
(US $ bn)
GDP
(US $ bn)
M.Cap
to GDP ratio
Bangladesh ( DSE) 40.17 185.415 21.66%
India (BSE) 1,664.02 2,049.50 81.19%
Pakistan (Karachi SE) 72.70 250.13 29.06%
Sri Lanka (CSE) 22.61 74.588 30.31%
Alliance Financial Services Limited
Source: IMF World Economic Outlook & Website of Stock Exchanges of Respective Countries.
28. LISTED SECURITIES (As on April, 2015)
Companies : 280 (A– 224, B- 16, N-6, Z- 34)
Mutual Funds : 41
Debentures : 8
Corporate Bond : 2
Govt. T. Bond : 221
All Securities are Distributed in 22 Sectors:
1. Banks 2. Cement 3. Ceramic Sector 4. Corporate Bond 5.
Debenture 6. Engineering 7. Financial Institutions 8. Food &
Allied 9. Fuel & Power 10. Insurance 11. IT Sector 12. Jute
13. Miscellaneous 14. Mutual Funds 15. Paper & Printing 16.
Pharmaceuticals & Chemicals 17. Services & Real Estate 18.
Tannery Industries 19. Telecommunication 20. Textile 21.
Travel & Leisure 22. Treasury Bond
Alliance Financial Services Limited
