DSE net income shoots up 84pc on booming market

Kayes M Sohel

Net income of the Dhaka Stock Exchange (DSE) nearly doubled in the year to June 2009 as market boomed with influx of new investors, officials said Thursday.

The country's prime bourse made Tk 658.06 million as net income in 2008-09 fiscal year, up 84 per cent from Tk 358.44 million in 2007-08.

Two-thirds of the revenue were generated from the bourse's 238 members who must pay 0.025 per cent of their turnover - locally known as laga charge - to the DSE.

Officials said the profit was boosted by a two-fold increase in the market's daily stock turnover. Shares worth average Tk6.05 billion was transacted daily in 2008-9 - a 114 per cent increase from a year back.

"Although the main indices ended flat in 2008-9, a big increase in share transaction helped the bourse make hefty profit," said A Hanif Bhuiyan, a director of DSE.

The bourse earned Tk 120 million as levies on share transaction, up by more than 61 per cent over the previous year, he said, adding the DSE collects three taka from each share transaction.

Transactions fees must be paid by the members for executing trades, either for themselves or for their clients, he said.

During 2008-2009, annual turnover of securities at DSE stood at Tk 893.79 billion against Tk 543.29 billion of 2007-08, posting a 64.52 per cent rise.

More than 5757 million securities were transacted during the year, up 53.09 per cent from a year earlier.

Income from listing fees shot up 27.44 per cent to Tk 65.22 million from Tk 51.18 million. Listing fees are paid by companies for floating their shares on the market.

The DSE saw listing of 17 new companies with paid up capital of Tk 18068.84 million during the year. In 2007-8, 13 companies with paid-up capital of Tk7264.96 were listed.

DSE General Index - the main gauge of the market -- stood at 3010.26 on June 30, 2009, the last day of the fiscal year, against 3000.50, clocking a flat-rise of 0.33 per cent from June 30, 2009.

However, market capitalisation of the DSE jumped more than 85 per cent to Tk 1.90 trillion. The amount now made up 31 per cent of the country's gross domestic product (GDP).

The DSE also added 115 new brokerage houses, taking the total number to 387 - many of whom are now based in district towns, luring thousands of new investors to the market.