All information regarding Dhaka Stock Exchange (DSE), from now on. will be available on the internet as the bourse is going to formally introduce its web-site today.
Dr. S A Malek. Political Advisor to the Prime Minister, will inaugurate the system at a simple ceremony at the DSE building. Finance secretary Akbar All Khan will also be present at the function as special guest.
They will also inaugurate the renovated new office of DSE. The office at Motijheel has been renovated at a cost of around Tk 50 lakh.
DSE Chairman Raklbur Rahman hoped that the new system would attract more investment in the country’s capita] market.
“With the introduction of DSE web-site, the country's capital market will enter the global information network." he said while talking to The Daily Star last night.
"Anyone from anywhere in the world will be able to know about DSE trading Just by pressing a key of his computer set, the chairman said.
Raklb also informed the Daily Star that the computer-based on-line trading on DSE would be launched on the 13th of this month. "The DSE has completed all necessary preparations in this regard and Finance Minister SAMS Kibria will inaugurate the on-line trading system at a function at Hotel Sonargaon on Thursday next." he said.
Meanwhile, the major market indicators of the DSE marked further declines last
week. Its All Share Price Index slipped by around 4 points to 667.32 on Thursday from 671.10 of the previous week.
Market capitalisation of the bourse also suffered by Tk 34 crore closing at Tk 6001.91 crore from 6035.88 crore.
On the other hand, the market indicators at Chittagong Stock Exchange (CSE) experienced a slight rise over the week. The CSE All Securities Price Index rose to 279.44 from 278.63 of the previous week.
The market capitalisation of the bourse increased by Tk 14.45 crore and closed at Tk 4876.94 crore from Tk 4862.37 crore.
The continuous bearish mood in the market, has thrown most of the DSE brokerage houses in a bad position.
"We have our backs against the wall We are on the verge of being bankrupt." said a leading share broker and owner of a security house.
The broker who is one of top ten volume leaders in the market said: "Our capital and savings have been dried up and we are even facing difficulties in paying salaries to our staff."
Many brokers said that their earnings had decreased drastically due to a dull market since late 1996. It is very hard for them to survive on the maximum one per cent commission on the amount of buying and selling orders, they said.
They further said that earnings from under writing of new issues also declined, as the Securities and Exchange Commission (SEC) has become very cautious in giving permission to newcomers.
"Earlier, on an average, I used to execute orders for shares and debentures worth Tk 10 to 12 lakh every day. The amount has now come down to TK two to three lakh”, said another DSE member and owner of a leading securities firm. Requesting anonymity, he said that he remains at a break-even point if the average amount of dally transaction is around Tk 10 lakh.
He further added that during the share market upheaval in 1996, the average transaction of the leading securities houses had surged up to Tk 40 to 50 lakh per day.
Recently, the DSE All Share Price Index, the barometer of the share prices, slipped down to 550 points from the highest position of 3.600 points In November. 1996. Whereas the price index is now fluctuating in between six to seven hundred points.
These days, the dally DSE turnover hovers around Tk 2 to 2.5 crore, down from over Tk 25 crore during booming period.
Out of total 195 DSE members. around 140 have opened brokerage firms and are running their business regularly on the Dhaka Stock Exchange.
A Dhaka University teacher and expert on share market said that stock business In our country was yet to become a lucrative one. because of the slow Industrialisation process. The upheaval in 1996 was an ab-nonnal situation and it did not reflect the actual picture of the local industries." ne noted.
The industrial sector is being cornered by foreign goods and facing an uneven competi-
tion with' multinational com-eanies. The prospect of share usiness in the country Is not very bright, the teacher said.
On the other hand, delay in the computerisation process added to the miseries of the DSE brokers as the Chittagong Stock Exchange (CSE). the second bourse of the country was much ahead in this regard.
The CSE started its computer-based on-line trading system almost a month back, this drove away a huge number of our customers who used to trade through DSE brokerage farms.
The CSE has opened a number of centres in the capital from where clients can sell and buy shares through computer servers.
"A significant number of Dhaka-based Investors prefer those centres for executing their orders." said a DSE member in a frustrating mood.
He. however, hopes that the clients would come back after the introduction of the on-line trading system In DSE.
It will cost every brokerage house around Tk 3 to 5 lakh to go for on-line trading system excluding other renovation expenditures.
Though the brokers a little enthusiastic as the automated trading system is going to be started.
"What will we do with computer if the market does not go up?" a broker wanted to know.
Computerisation is one of the ingredients of bringing transparency in the market out that Is not all." "We need to restore people's confidence. And that can only bring the market onto the right path? he said.