Stock market capitalization to cross $15b next year

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Refayet Ullah Mirdha
The Chief Executive Officer (CEO) of the premier Dhaka Stock Exchange (DSE) Limited, Salahuddin Ahmed Khan, said the total market capitalisation of the stock market will cross US$ 15 billion in the next year.
He said the floatation of Initial Public Offerings (IPOs) by some local, multinational and public companies will boost the market capitalisation significantly.
"Bangladesh's stock market value will double to more than $15 billion next year, boosted by initial public offerings of state companies and private companies such as telephone operators," he said.
Talking to the FE, Khan said the trend of supply growth of issues on the DSE clearly indicates that the total market capitalisation of the DSE will cross more than $ 15 billion next year.
On Monday last, the total market capitalisation increased to $8.521 billion from (Tk 588.2 billion) from the previous day's $8.507 billion (Tk 587.328 billion).
The total turnover on the DSE Monday last again crossed the Tk 2.0 billion-mark after a 35-day gap triggered by a decision of Securities and Exchange Commission's (SEC) to revert the top five issues' trading to "public market" from the "spot market".
On Sunday last, DSE's benchmark DSE General Index (DGEN) crossed another new milestone at 61.637 points in one day's trading in the history of this bourse.
"The market is gaining momentum because of investors' confidence and we hope the stock market will further rise with the floatation of shares by big companies under telecommunications, power, state-owned enterprises, oil and gas sectors," said a senior official of the DSE.
Khan said the state-owned gas company Titas Gas is going to float IPOs in the last part of the current year or first part of the next year.
"The process of floating the IPOs by the Titas has already started. If this state-owned company is listed on the DSE, it will boost the market capitalisation significantly," Khan said.
He said Titas Gas Transmission and Distribution Company Limited will float shares worth Tk 3.0 billion, Khan said.
The Dhaka Stock Exchange Index has risen 57 per cent this year, making it one of the Asia's best-performing benchmarks.
As per the recent suggestions of the Investment Corporation of Bangladesh (ICB) the finance ministry has been currently working for direct listing of the 11 profit making state-owned companies, sources said.
Individuals opened 355,000 share-trading accounts with brokerages in the last six months, taking the country's total to 1.43 million, Khan said.