Stock Market Faces Challenges Despite Initial Growth and Optimism

Industry: Financial, Stock Brokerage
Company: Dhaka Stock Exchange (DSE)
Company Intelligence Tag: Business Insights

The stock market in Bangladesh took 15 months to recover from the initial impact of the COVID-19 pandemic and reach new price highs. The introduction of floor prices, along with stimulus measures and limited investment opportunities, attracted fresh investments and led to a faster growth rate compared to other Asian countries. However, the majority of listed securities remained confined to the floor, and the market faces challenges in regaining normal functioning. Some positive signs, such as increased purchase volumes by foreign investors and a recent rise in daily market turnover, have brought back optimism. But concerns about a power crisis, currency devaluation, and the performance of local businesses continue to impact stocks. Despite a rise in the number of securities trading above the floor price, significant liquidity is needed for large-cap and blue-chip companies to participate actively. Also make stock market breaking free from the floor price remains uncertain.

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