Forma # 1.ai - ICAB

Table 12: Return to Investment in the Capital Market for Over One Year
Type of Benefit FY2007 08 FY2008 09 FY2009 10
No of
companies
Cumulave
share (%)
No of
companies
Cumulave
share (%)
No of
companies
Cumulave
share (%)
Right share 0 3 1 25 22
50% and Above 23 12 30 14 20 41
40% 49% 5 15 12 20 2 43
30% 39% 34 34 40 37 9 51
20% 29% 36 55 38 54 18 67
10% 19% 56 86 80 90 21 87
1% 9% 14 94 11 95 7 93
No dividend 10 100 11 100 7 100
Total companies held AGM 178 225 109
Total Number of Listed
companies
271 282 243
Source: CPD Esmates, 2010.
Short‐term return on trading
appears to be much higher as is
revealed from the estimation of
capital gains of DSE 20 and Z
category shares (Table 13).
Although the return on a number
of shares was negative which
indicates the related risks
associated with short‐term trading
of shares, on average return to
blue chips and Z‐category shares
was considerably high. This may
be true for other categories of
shares. Low risk with high return
in case of short term trading has
acted as a ‘pull factor’ and has
encouraged investors (mostly
small investors) to divert funds
from other sources to the stock
market.
Table 13: Potenal Capital Gain on Different Categories of Shares
Year FY2007 08 FY2008 09 FY2009 10
Category Highest Average Lowest Highest Average Lowest Highest Average Lowest
DSE20 345.98 93.58 21.51 99.39 11.78 31.85 184.32 48.73 25.85
Z
category
371.43 100.3 6.82 330.77 78.68 34.87 2198.73 341.1 29.93
Source: CPD esmates, 2010.
Note: Potential capital gain of DSE 20 and shares of Z category is the difference between share prices of the
first day and closing day of trading in the fiscal year.
24
January - March 2011
The Bangladesh Accountant