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Abstract- The stock market plays an important role in economic development of Bangladesh. It
transfers the fund from surplus units to deficit units for investment. The main purpose of the study
is to examine the significance of stock market in economic development of Bangladesh. The
study has used only secondary data. The secondary data are collected only relevant to study
such as market capitalization, stock turnover, number of listed securities and companies, stock
index, GDP for measuring economic development during the period of 2003- 2013. The main
reason to consider the certain period is the availability of data. The study has used some
statistical measures of means, growth rate,andRatio of total market capital to GDP method. This
study revealed that stock markets have made substantial contribution in economic development
of Bangladesh. The study seems to carry an enormous academic value since a few studies have
been undertaken in this area.
2015. Manjurul Alam Mazumder. This is a research/review paper, distributed under the terms of the Creative Commons
Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/), permitting all non-commercial
use, distribution, and reproduction in any medium, provided the original work is properly cited.
I. Introduction
Year
45
2015
Year
2015
Stock Market and Economic Development in Bangladesh: A Case Study of Chittagong Stock Exchange
46
a) About CSE
b) Indices
i. CSE30
Stock Market and Economic Development in Bangladesh: A Case Study of Chittagong Stock Exchange
2015
Year
117
159
141 150
165
177
205
188 195 198
213
227
238
217 225
241
255
269
47
61
Stock Market and Economic Development in Bangladesh: A Case Study of Chittagong Stock Exchange
Year
2015
14880.37
13826.94
9572.67
2012
2013
2011
2015
1 Global Journals Inc. (US)
CSE-30 Index
13202.94
10839.28
8377.36
2010
12854.8
11021.98
8175.6
2009
23448.99
20988.17
15156.37
13801.38
10306.87
8560.05
48
CSE-X index
Stock Market and Economic Development in Bangladesh: A Case Study of Chittagong Stock Exchange
Sector
Index
2013
Life Insurance
102218.47
98375.34
124880.73
(3.76)
26.94
General Insurance
11675.85
8978.52
9135.30
(23.10)
1.75
4131.89
3308.72
3646.20
(19.92
10.20
Pharma&Chemicals
15856.2
14206.86
18050.36
(10.40)
27.05
7660.66
6094.49
9041.37
(20.44)
48.35
Cement
3446.34
3837.81
4294.44
11.36
11.90
4429.12
4821.48
6405.86
(25.01)
32.86
49
4317.63
3445.34
5283.05
(20.19)
53.34
3305.39
3548.61
2925.28
7.36
(17.57)
10
1783.92
977.48
1383.45
(45.21
41.53
11
Energy
8738.66
8702.14
9890.80
(0.42)
13.66
12
Mutual Funds
5526.33
5443.53
4833.91
(1.50)
(11.20)
13
Bank
59775.75
43801.42
37597.31
(26.72)
(14.16)
14
Ceramic
729.8
545.36
535.56
(25.27)
(1.80)
15
ICT
8221.34
7128.97
8039.11
(13.29)
12.77
16
28801.83
23464.85
23028.06
(18.53)
(1.86)
17
Telecommunication
989.74
1104.68
1341.85
11.61
21.47
18
Miscellaneous
6858.11
6752.03
6306.06
(1.55)
(6.60)
2015
Year
2012
%
Change
20122013
2011
%
Change
20112012
Stock Market and Economic Development in Bangladesh: A Case Study of Chittagong Stock Exchange
Stock Dividend
268
Cash&Stock Dividend
Total
236
202
195
Year
2015
158
50
100
82
53
78
64
53
72
70
87
97
2009
2010
64
52
30
23
2008
10098
2722
15
2011
2012
2013
Year
Listed
securities
(IPO)
Issued Capital
(Mn Tk.)
Market
Capitalization
(Million Tk.)
Turnover
(Mn Tk.)
Price
Index*
2002
185
31079.9
60467.7
13586.1
1841.14
2003
199
10
41967.6
85312.3
6688.6
1642.78
2004
195
46978.7
215010.8
17551.3
3597.70
2005
210
16
55519.3
219942.8
14042.7
3378.68
2006
213
69378.4
270510.7
15893.1
3724.39
2007
227
13
89173.9
612580.02
52590.3
7657.06
2008
238
121603.2
807684.03
99803.7
8692.75
2009
217
18
155124.9
1470807.05
162562.6
13181.37
2010
232
206774.00
2241768.00
217112.09
23449.0
2011
241
13
285791.25
1934029.95
186337.01
14880.37
2012
255
16
389544.7
1784461.8
116905.11
12854.80
2013
269
14
437513.6
2023361.4
99038.1
13202.95
*All share price index is calculated on weighted average method from 24 November, 2001.
*All share price index is calculated on General Share Price Index (excluding Z group) by withdrawing weighted
averageMethod from 9 December,2003.
The index base was 1000 for CSE From the year 2000. Previously it was 100.
2015
1 Global Journals Inc. (US)
Stock Market and Economic Development in Bangladesh: A Case Study of Chittagong Stock Exchange
Year
2015
51
Stock Market and Economic Development in Bangladesh: A Case Study of Chittagong Stock Exchange
Year
2015
52
Particulars
2008
2009
2010
2011
2012
2013
Market Days
New Listing
No. of Securities
% Changes
Annual Turnover(BDT Mn)
238
15
238
3.93
10074705
244
16
217
(8.82)
16201931
244
23
225
3.69
34092930
235
14
241
7.11
18633654
238
14
255
5.81
11690522
238
17
269
5.49
9903754
% Changes
Daily
Average
Turnover(BDT Mn)
% Changes
Number
of
Shares
Traded(`000)
% Changes
Number of Contracts
% Changes
Market Cap.(MnTk)
% Changes
CASPI
CSE-30
CSCx
Number of Company
Declared Cash Dividend
Number of Company
Declared Stock Dividend
92.37
423.30
60.82
664
110.43
1397.30
(45.34)
792.92
(37.26)
491.20
(15.28)
416.12
91.63
972811
56.86
1338780
110.44
2129129
(43.25)
2518282.47
(38.05)
2863509.68
(15.28)
2763476.06
49.15
2805138
79.09
807875
31.75
869.75
7566.95
5680.59
82
37.62
4403202
56.97
1470807
82.06
13181.38
10306.87
8560.05
78
59.04
7415220
68.41
2983929
102.88
23448.99
20988.17
15156.37
72
18.28
6059995
(18.28)
1972423
(33.90)
14880.37
13826.94
9572.67
70
13.71
4375574
(27.80)
1784461
(9.53)
12854.80
11021.98
8175.60
87
(3.49)
3896618
(10.95)
2023261
13.38
13202.94
10833.28
8377.36
27
53
64
100
100
97
22
23
53
30
98
52
15
Number of Company
Declared Cash & Stock
Dividend
2008
2009
2010
2011
2012
2013
Operating
income
124885616
191046083
279130352
227056343
212565076
154704104
Other
Income
64877717
87154367
226862093
368026996
439015114
526943090
Total Income
189763333
278218450
505982445
595083339
651580190
681647194
Operating
Expenses
61859317
86662956
122166207
146945839
153852680
236804807
2015
1 Global Journals Inc. (US)
6644434
10125834
14311626
40935149
46883874
53307883
Total
Expenditure
68503751
96788790
136477833
187880988
200736554
290112690
Excess Income
over
Expenditure
Total Reserves
& Funds
121259582
181429660
369504612
407202351
450843636
391534504
722894478
2017435249
3780639861
4186442212
4637285848
257152837
Investment in
FDR
405000000
1687500000
2005000000
2830000000
3450000000
3775000000
Paid-up Capital
405000000
41100000
43800000
44400000
44400000
6345248400
No. of
Employees
68
73
84
98
97
96
VI.
Conclusion
53
Year
Depreciation&
Amortization
2015
Stock Market and Economic Development in Bangladesh: A Case Study of Chittagong Stock Exchange
Year
2015
Stock Market and Economic Development in Bangladesh: A Case Study of Chittagong Stock Exchange
54
2015
1 Global Journals Inc. (US)