Chittagong Stock Exchange (CSE) reported an 11% year-on-year drop in net profit for fiscal year 2022–23, with net profit declining to Tk34 crore and earnings per share at Tk0.54 compared to Tk38 crore and Tk0.61 in the previous fiscal year. This decline is attributed to the floor price mechanism imposed by the Bangladesh Securities and Exchange Commission (BSEC) in July 2022 to stabilize the stock market.
The floor price has resulted in reduced trading activity, causing a significant decrease in transaction-based income for CSE. Additionally, a decrease in listing fees and a lower number of companies receiving regulatory approval for IPOs in FY23 have contributed to the decline in profitability.
Despite the decrease in profit, CSE has proposed a 5% cash dividend for its shareholders in FY23, indicating its commitment to providing returns to investors. This situation highlights the challenges faced by stock exchanges when regulatory measures impact trading activity, emphasizing the importance of finding a balance between market stability and facilitating liquidity to sustain profitability.