Chittagong Stock Chittagong Stock ExchangeExchange

WelcomeWelcometoto

Mohammed Kamal Uddin JalalManager, Market Development

Chittagong Stock Exchange is aNon-Profit Organization.

Public Limited company by guarantee.

The Mission“To create an effective, efficient and transparent market atmosphere of International standard to save and invest in Bangladesh in order to facilitate the competent entrepreneurs to raise fund and accelerate industrial growth for overall benefit of the economy.”

ObjectivesDevelop a strong platform for entrepreneurs raising capital; Provide an investment opportunity for small and large investors; Develop a transparent market thereby ensuring investor's interest; Provide a fully automated trading system with most modern amenities to ensure: quick, easy, accurate transactions and easily accessible to all; Attract non resident Bangladeshis to invest in Bangladesh stock market; Attract foreign institutional investors to invest in Bangladesh; Collect, preserve and disseminate data and information on stock exchange; Develop professional service culture through mandatory corporate membership;Maintain a research cell for analyzing status of the market and economy.

Brief Introduction to Chittagong Stock Exchange

CSE started operations in 1995 with Cry out Trading System.

Order and Trade Confirmation Diagram

Central Trading Server

InvestorInvestor

Investor

Broker’s Terminal

Broker’s Terminal

Broker’s Terminal

SylhetDhaka

Chittagong

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order

orderTrade

order

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Confirmation

Confirmation

Confirmation

Trade

Trade

In 2004, CSE Introduced Internet Trading System.

After 2 years, in 1998 it switched to Automated Trading System for the first time in Bangladesh.

What is CSE for?CSE is a market place where securities are bought and

sold by/through the members of the Exchange.

Tell me why I should invest in the stock market

Your own benefit (major benefits)

Gain from IPOEarn Cash and Stock DividendCapital GainGet Tax exemptionOwnership of a company

Benefit of the Nation (major benefits)

IndustrializationInfrastructure developmentGDP growthPer Capita IncomeStandard of livingEmploymentAsset Distribution

Broker/Dealer

CSE

Primary Market

Secondary Market

Commercial Banks

InvestorInvestor

Investor

LISTING

SEC

Investor

Merchant Banks

How transactions are executed?

Order and Trade Confirmation Diagram

Central Trading Server

InvestorInvestor

Investor

Broker’s Terminal

Broker’s Terminal

Broker’s Terminal

SylhetDhaka

Chittagong

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order

orderTrade

order

order

order

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Confirmation

Confirmation

Confirmation

Trade

Trade

Janata Bank & CSE

Satellite d ish

CSE DHAKA Office

CTG Office

Brokers’ Terminal (Ctg)

WorkstationModem

CloudCTGPSTN

Brokers’ Terminal (Sylhet)

WorkstationModem

Brokers’ Terminal (Dhaka)Workstation

Modem

CloudSylhet PSTN

Satellite

TC3 Satellite

Satellite dish

VSATIBM AS/400

Disk Arra y

ServerCloud

DHAKAPSTN

CSE Trading Network

Trading PeriodPre-opening Session: 09.40 - 09.55

Opening Session: 9.55 - 10.00

Continuous Trading Session: 10.00-14.15

Closing Session: 14.15 - 14.20

Close Price Trading Session: 14.20 - 14.30

Post Closing Session: 14.30 - 15.15

Category of listed securities

A, B, G & N Categories Z Categories

Clearing & Settlement Cycle

(Day wise)

T+0

Sun Mon Tue Wed Thu Fri Sat Sun Mon

Trading Day

Broker / Dealers deposit share and / or Cheque Stock Exchange verifies /

transport Certificates and cheques

Brokers /Dealers receive

Investors get shares/ Cheque

T+2T+1T+1 T+3 T+4 T+5 T+6 T+7

Tue

holidayholiday

Internet Trading System

Internet Trading System (ITS)

May be you are an executive, a teacher, a student, an entrepreneur, a housewife. All of you remain busy at your own jobs, you don’t have enough time to go and trade in the broker’s office. ….Don’t worry, stock market investment is still possible for you.

No matter where you are staying right now, stock market is not away from you. It is now available everywhere in the globe.

All you have to do is just browse -

www.bangladeshstockmarket.com

Placing Buy/Sell order through ITS

Janata Bank & CSE

Exchange Network

Web/Mail Servers

CSE Trading Server

Investor from Japan

Investor from London

Investor from Dubai

Internet www.bangladeshstockmarket.com

Investor from NY

Investor from KSA

Products in the Market

As on 15 April 2009

Listed Securities: 244

Equity (Share) : 226 Mutual Funds : 17 Corporate Bond : 1

Issued Capital : Tk. 135.95 Billion Market Capital: Tk. 754.79 Billion

CSE Milestones 12th Feb 1995:

Bangladesh Government approved CSE 1st April, 1995:

Incorporated as a limited company 10th October 1995

Floor Trading Started 1st January 1996:

became corresponding member of World Federation of Exchanges (Formerly FIBV)

2nd June 1998: Automated Trading on WAN starts

16th January 2000 Convened SAFE

26th January, 2004 Central Depository Bangladesh Ltd. (CDBL) opened

30th May, 2004 Internet Trading Service (ITS) introduced

4th July, 2004 Over-the-Counter (OTC) market opened

61

117

141150

159 165

177 184196

198210 213

230241 244

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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009(upto 15

Apr)

Listed Securities

De-listed Securities2002 1

2003 Nil2004 62005 22006 62007 Nil2008 Nil2009 Nil

Market Capital1997 55,832.00

1998 41,382.00 1999 36,542.00 2000 57,760.03 2001 56,363.53 2002 60,467.72 2003 85,439.85 2004 215,010.77 2005 220,352.80 2006 270,510.702007 612,479.20 2008 810,469.00

2009 (15Apr) 754,790.50

Market Cap Mln Taka

Market Cap to GDPYear M/Cap to GDP2002 2.15%2003 2.80%2004 6.07%2005 5.61%2006 6.44%

2007 11% 2008 14.32% 2009 15.5%(app)

Turnover (BDT)Year Turnover2000 12,933,804,850.25 2001 14,948,679,666.25 2002 13,586,143,819.75 2003 6,719,300,508.40 2004 14,807,755,943.40 2005 14,041,990,559.80 2006 16,530,000,000.00

2007 52,363,148,495.00

Daily Highest Turnover Daily Highest Turnover in CSE in CSE BDT 109 CroreBDT 109 Croreon 16 October 2008on 16 October 2008

2008 100,747,000,000.00

Indices In CSE

• All Share Price Index

• CSE-30 Index

• CSCX

• Sector Index

Approach followed for construction of CSE

IndicesThere are many different ways of constructing an index. Value-weighted method may be considered as a most appropriate method than others. The computation of a value-weighted index is similar to that of a Laspayres index. The only index the CSE has been maintaining since 10th October 1995 is a ALL SHARE PRICE INDEX using Chained Paasche method. It faces question of clarity. This index was subject to unusual ups and downs and without a distinct base value. So, in need of a clean slate CSE introduced new indices from 1 January 2000 using the Laspayers Method. We have studied index of a number of bourses and found that the Laspayers Method to calculate index is regarded as the most transparent and scientific method.

Today’s Market Capital

Today’s Index = ------------------------------------------------- x Previous day’s Index Previous day’s Market Capital

Factors considered for construction of CSE indicesAll Share Price Index

Inactive stocks not being traded for consecutive six months will not be considered in the calculation.

Mutual Funds and Debt securities will not be considered in calculating index.

A newly listed scrip will be included in the index after five consecutive trading days.

Only normal trades should be considered in calculating index.

All share price index will be calculated only once in a day – after the trading hour in the on line system.

No changes in number of shares will be allowed during VECTOR session.

Index committee will review the index – its criteria, performance, calculation method after every six month.

Index Base Date is 30th December 1999

Base Day index 1000

Factors considered for construction of CSE indicesCSE-30 Selective Index

BASIC CRITERIA

1. Must be listed with the Chittagong Stock Exchange. 2. In case of IPO/New Issue, this should be on listing either with DSE or CSE for a minimum period of 2 years or remained in Commercial Production for the minimum same period prior to its listing. 3. Companies that did not hold their Annual General Meetings regularly will not be considered. 4. Minimum market capitalization must be Tk. 200 million. 5. Must have at least 20% free floating share capital. Free floating share capital shall mean the share capital which will exclude Govt's holding (other than ICB), Sponsors/Directors & their Associates' holding plus other locked-in portions. 6. Must have positive revenue reserve/ retained earnings. 7. Must be traded for at least 20% days in trading. 8. Paid dividend in any of the last 2 years. 9. Company having negative Earning Per Share (EPS) for last two consecutive years will not be considered. 10. Company falling under settlement category 'Z' will not be considered. 11. Financial Institution falling under the problem list of Bangladesh Bank will not be considered provided such information is available from an acceptable source. 12. Company failing to pay the listing fees and/or penalty imposed under the Listing Regulations of CSE for a period of 2 years will not be considered. 13. At least one company from each sector will be taken in the index if the scrip satisfies the above criteria and achieves the minimum point as evaluated on the basis of the following Selection Criteria

Factors considered for construction ofCSE indices

SELECTION CRITERIA1. Higher Net Assets Value (NAV) per share2. Higher rate of Earning Per Share (EPS)3. Higher rate of dividend 4. Higher rate of free floating in equity 5. Larger number of shareholders 6. Higher liquidity in terms of trading day 7. Higher percentage of market cap in terms of Paid-up Capital 8. Longer duration of continuous remaining in the CSE-30 Index

9. Regular payment of listing fees

Factors considered for construction of CSE indices

Conditions to be followed while forming the selective Index:Only the active scrips will be considered for calculating the index. Mutual Funds and Debt securities will not be considered in this index. Only normal public market trades will be considered. Selective Index will be refreshed after 3 minutes time interval during online trade. At the time of update the Selective Index will consider the Weighted Average Price for each constituent stock. (Example annexed) No changes in number of shares will be allowed during the business sessions. Index committee will review the index – its criteria, performance, calculation method after every six month. Index Base Date is 30th December 1999 Base Day index is set to be 1000

Factors considered for construction of CSE indices

CSE Selective Categories Index - CSCX

Chittagong Stock Exchange (CSE) launched a new index named CSCX (CSE Selective Categories' Index) comprised A, B & G category companies from 14th February 2004 to replace the earlier CSE Trade Volume Weighted Index.

The Base Date of this index is 15th April 2001 (when A, B & Z category were introduced) and Base Value is set to 1000.

The new index includes all but not the Z category companies. This also excludes the companies/scrips which are debt securities, mutual funds, suspended for indifinte period and non-traded for preceding six months of review meeting. The index will be reviewed in the Index Committee Meeting after every six months like other two indices of CSE.

This index will be disseminated on line to all the Brokers' Work Stations (BWSs) during trading sessions and after every three minutes the index value will be refreshed.

According to the said bases of this index the value of the index on 11th February 2004 stands at 1165.3754.

CSE indices 2008-2009

CSE indices movement 2008-2009

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CASPI CSE-30 CSCX

CSE’s on going development programme

• Enhancement of regional Co-operation

• Training Institute • Invite private companies

to go public• Market Development

Programs• Introduce Derivatives in the market

SAFE Members Colombo Stock Exchange Chittagong Stock Exchange Dhaka Stock Exchange Islamabad Stock Exchange Karachi Stock Exchange Lahore Stock Exchange Mauritius Stock Exchange National Stock Exchange of India Nepal Stock Exchange OTC Exchange of India Royal Securities Exchange of Bhutan The Stock Exchange, Mumbai

CSE Help-CenterInvestors Information Cell (IIC)

Chittagong Stock Exchange has set up a dedicated Cell for investors.You can easily reach the Cell for any sort of information regardingStock market.

You can get help from this Cell over telephone, Fax, E-mail, correspondenceor visiting physically.

CSE Building1080, SK. Mujib Road, Agrabad C/A, Chittagong

Tele: 88 031 726972 (Direct), 88 031 714632-3, 720871-3 (Ext 128)Fax: 88 031 714101

Email: iic@csebd.comkuj@csebd.com

Website: www.csebd.com

Thank you for attending with patience and we invite you all -

Please know the market, get in and help yourself and your beloved motherland towards strong economic

growth. Bcoz,

A strong capital market is good for you and good for Bangladesh.

Thank you