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Capital Market Scenario: October 2012 till April 18, 2013

Secondary Market Scenario


DSE scenario at a glance during October 01, 2012 to April 18, 2013
Total Trading Days

Secondary market continued declining trend that was


started during December 2010. DGEN started the
period with a value of 4,589.34 and lost 881.85 points
to close at 3,707.49. The deviation between highest
and lowest point of DGEN during the period is 1,096
which dictates the significant volatility during the
period. Investors Participation in the secondary
market remained low despite all the efforts. The
average daily turnover during the period is only
2,814.21 million.
Being a news driven market turnover did rise during
some periods mainly due to some market related
news. During the period, market saw an uptrend at the
end of January primarily because of investors
optimism regarding corporate declarations. As
investors went in a buying mode, turnover and index
stated to climb. But as investors started profit taking,
the market started falling at the mid of February. At
April 01, 2013 DGEN stood at 3,610.43 which have
risen to 3,707.49 on April 18, 2013.

Daily Average Turnover (BDT mn)

131
2,814.21

Highest Turnover During The Period (October 03, 2012)

10,448.33

Lowest Turnover During The Period (January 21, 2013)

1,015.72

Beginning Value of DGEN

4,589.34

Ending Value of DGEN

3,707.49

Highest Value of DGEN (October 02, 2013)

4,706.43

Lowest Value of DGEN (April 01, 2013)

3,610.43

Primary Market Scenario


During the period, the prices of two approved IPOs were revised downward due to current market situation. The
Commission approved revising the market price of Summit Purbanchal Power Company Limited to BDT 40 from
BDT 45 and Argon Denims Limited to BDT 35 from BDT 44. The commission also postponed the IPO application
of Apollo Ispat Limited. During the Period BSEC approved IPO application of five companies (typed bold in the
table below). Primary market activity during the period is as followsPrimary Market Activity during October 2012 to April 18,2013
A.

Name of Company
No. of shares
Companies that raised capital through IPO and got listed

Price per share

IPO size

Envoy Textiles Limited

30,000,000

30

900,000,000

Sunlife Insurance Company Limited

12,000,000

10

120,000,000

Summit Purbanchol Power Co. Limited

30,000,000

40

1,200,000,000

Argon Denims Limited

30,000,000

35

1,050,000,000

Premier Cement Mills Limited


Golden Harvest Agro Industries Limited

12,000,000

22

264,000,000

30,000,000

25

750,000,000

Global Heavy Chemicals Limited


Orion Pharma Limited

12,000,000

20

240,000,000

40,000,000

60

2,400,000,000

6
7
8

Subtotal
B.
1

6,924,000,000

Companies that raised capital through IPO and waiting for listing
Bengal Windsor Thermoplastic Limited
16,000,000

25

Subtotal
C.

400,000,000
400,000,000

Companies waiting for raising capital through IPO

Family Tex (BD) Limited

Central Pharmaceutical Limited


Subtotal
Total

The sluggish condition of secondary capital market


also affected the primary capital market. As DGEN
declined, valuation in the primary market also declined
due to lower P/E ratio. During the period BSEC
followed valuation methods based on weighted
average earnings per share and net asset value per
share. For determining valuation based on weighted
average EPS, last 3 months average of market P/E or
sector P/E quoted in Dhaka Stock Exchange,
whichever is lower has been considered. After
determining the valuation based on these methods,
the final price of the shares were fixed based on
qualitative justification of BSEC. But recently BSEC is
considering the average of NAV and weighted
average earnings based value as the justified price for
IPO.
Please note that there is no written rule in this matter.
BSEC approves the valuation purely based on

34,000,000

10

340,000,000

1400000

10

14,000,000
354,000,000
7,678,000,000

conservative approach and based on the market


scenario.