The Dhaka and Chittagong Stock Exchanges saw a important decline in earnings from their core companies — share transaction prices — in the 2023-24 fiscal year, attributed to power market volatility dampened trading activities and earnings generation.
In consequence, each bourses witnessed a decline of their win earnings.
The Dhaka Stock Change (DSE), the premier bourse, saw its profitability tumble to a three-year low in FY24, reporting a earnings of Tk61 crore, the bottom since FY21.
As a result, the exchange reduced its dividend price to shareholders to three.3%, down from 4% in FY23. Earnings per share (EPS) also reduced to Tk0.34 in FY24, when compared with Tk0.44 the old year.
DSE
At some stage in the pandemic, when the capital market skilled important erosion because of classy promote-offs, the DSE managed to post a earnings of Tk27 crore.
In the following year, stocks bounced abet as some predominant traders grew to change into active, leading to a important spike in alternate volumes.
It has posted 318% snarl in earnings for FY21 as its sensible every day turnover jumped to Tk1031 crore from Tk384 crore.
In FY22, its earnings snarl persevered to Tk124 crore riding on the healthy turnover. In that year, its every day sensible turnover jumped to Tk1,327 crore.
In FY24, the total turnover on the DSE was Tk1,49,864 crore, with an sensible turnover of Tk621 crore.
In FY23, turnover stood at Tk1,91,087 crore, with an sensible turnover of Tk792 crore.
As turnover declined at some stage in FY24, the DSE’s earnings from transaction prices, its core industry, fell by over 20% to Tk74 crore.
The DSE earns 0.025% of the traded price of stocks as share transaction prices, recoverable from each the buyer and seller.
For any single block alternate, floor crossing, and provide versus price (DVP) transactions with a traded price of Tk50 lakh or more, the transaction price is 0.0125% of the traded price. The transaction price for bonds is Tk50 per alternate.
In the interim, its pastime earnings from Mounted Deposit Receipts (FDRs) in loads of banks elevated to Tk77 crore in FY24, up from Tk68 crore in the old year.
Sattique Ahmed Shah, chief financial officer (CFO) and performing managing director of DSE, suggested TBS, “Market volatility, the national election, held in January 2024, and political unrest since July saved the capital market underperforming all year lengthy. These components enormously reduced trading volumes, which, in turn, resulted in a decline in the DSE’s predominant earnings from share transactions.”
“Secondly, foreign forex fluctuations elevated costs for foreign payments. The DSE needed to pay in greenbacks to NASDAQ for its services, raising prices further,” he said.
Sattique also smartly-known that the establishment of a brand original files centre contributed to elevated costs. Nonetheless, elevated pastime rates hold boosted earnings from FDRs.
CSE
The Chittagong Stock Change (CSE) reported an 11% tumble in its earnings from operations to Tk31.63 crore and an 8% decline in win earnings to Tk31.71 crore in FY24.
It reported a loss from its operations of Tk10.50 crore, when compared with a earnings from operations of Tk5.38 crore in FY23.
No subject the decline in win earnings, the CSE proposed a 5% money dividend for its shareholders in FY24, up from 4% in the old fiscal year.
Fragment transaction earnings on the CSE reasonably fell to Tk7.50 crore while itemizing earnings from listed companies elevated to Tk22.34 crore in FY24, when compared with Tk7.52 crore and Tk21.62 crore, respectively, in the old fiscal years.
Its finance earnings — from FDRs, treasury payments, and nil-coupon bonds — rose by 31% to Tk47 crore in FY24. The CSE has Tk168 crore invested in FDRs, Tk222.77 crore in treasury payments, and Tk28.61 crore in zero-coupon bonds.
Basically based fully totally on its annual document for FY24, the total number of listed securities on CSE stood at 623 on the finish of June 2024.
From July 2023 to June 2024, a total of 1,891.72 million shares were traded, when compared with 1,642.44 million shares from July 2022 to June 2023, representing a 15.18% develop from the old year.
In FY24, the total turnover price of traded shares was Tk74.78 billion, which was 23.28% elevated than the earlier year. The market capitalisation of the CSE stood at Tk6,915.76 billion on the finish of June 2024, the document reads.
