Market Of Bangladesh Research Articles

Efficiency and Volatility of the Stock Market in Bangladesh: A Macroeconometric Analysis

Abstract. This study investigates the weak form efficiency of Efficient Market Hypothesis (EMH) employing Autocorrelation test, Runs test and Unit Root tests, and the nature of volatility characteristics of stock returns applying GARCH family models in Bangladesh stock market using daily all share price index return data of Dhaka Stock Exchange (DSE) from 02 January 1993 to 27 January 2013. This studyalso examines the semi-strong form of the EMH of DSE based on macroeconomic variable version of the Arbitrage Pricing Theory (APT) applying Cointegration tests, Vector Error Correction Model (VECM) and Granger causality tests, and the volatility of the DSE returns in response to the volatility of the macroeconomic variables employing GARCH family models using monthly data from January 2001 to December 2012.In addition, the short run and long run relationships between macroeconomic variables and aggregate stock prices in Bangladesh have also been determined. Employing both nonparametric tests (Runs test and Phillips-Perron test) and parametric tests (Autocorrelation test and Augmented Dickey-fuller test), this study finds that the DSE of Bangladesh is not weak form efficient. Taking the outcome of VAR models into account, it is found that all selected macroeconomic variables do significantly explain the stock prices of the Bangladesh stock market. As a consequence, it may be concluded that the Bangladesh stock market is not efficient in the semi-strong form of EMH. Results of the estimated MA(1 ) -GARCH(1,1) and MA(1 )- EGARCH(1,1 ) models reveal that stock market returns of Bangladesh exhibit leptokurtosis, volatility clustering and leverage effect. Results of six GARCH-S models indicate that thevolatility of DSE return is significantly influenced by the volatility of macroeconomic variables, such as, exchange rate, broad money supplyandstock returns of India. Keywords. Efficient market hypothesis, Stock prices, Vector error correction model, GARCH family models, Volatility. JEL. C58, E44, F36, G10, G14.

Real Estate Market in Bangladesh: Development and Current Practice

Real estate products in Bangladesh are real time demand fulfillment in the market toward the total socio-economic development of Bangladesh. The sector is directly contributing to the GDP through creating shelter, developing unused land, helping other businesses to grow, attracting local and foreign investment and generating employment. High population density coupled with land scarcity and lack of social security enhanced the development of the sector over the time. Since the induction of the industry in 70s and the boom in 90s by April 2009 the sector has 524 REHAB affiliated member companies while lots of others do business informally. But the market is quite concentrated and 10-15 companies hold around 95% of the total market shares. This study examines what factors influenced the development of the sector along with a focus on how the sector performs. The empirical data has been collected from 220 customers, 15 real estate experts and 20 real estate professionals in Dhaka and its outskirts. The study shows that only 29% of customers are happy with the quality of real estate products and 87% of the customers think that government should intervene into the market to set up a proper framework for the sector.

Contagion Effects on Stock Market of Bangladesh

Due to increased globalization and economic integration in the global economy, contagion effects have been considered an important matter for the investors and policymakers. In the wake of the global financial crisis of September 2008, Islamic financial products were thrust into the spotlight as alternatives to the shaken conventional equity markets. The objective of this study is to discover the Islamic stock market dynamics of Bangladesh with the global Islamic stock markets such as Saudi Arabia, UAE, Kuwait, Europe, UK and Japan. For understanding long run relationship or the theoretical relationships among the Islamic stock market and short run co-movements among Islamic stocks, Johansen co-integration test and Vector Error Correction model (VECM) have been applied respectively. Furthermore, the investigation on short run dynamics is also carried through Impulse Response Function (IRF) analyses. The study found that the Japanese Islamic Stock market is affected to changes in other Islamic stock markets while Kuwait stock market is the leader in the sense it affects other stock market greatly. Bangladeshi Islamic stock market is found to be marginally affecting other stock markets but not as strong as Kuwait. Global Islamic stock market seems to have very little impact to Bangladesh Islamic stock market. The evidence of co-integration and short run dynamics help a diversification benefit may be derived from the cross boarder investment. The empirical evidence of co-integration and short run dynamic relationship found in this study will help investors in making efficient investment decisions and also enhance their understanding of market behavior.

Macroeconomic and Institutional Determinants of Capital Market Performance in Bangladesh: A Case of Dhaka Stock Exchange

Capital market has been playing a vital role by managing fund and capital of corporation through its operations. There are many factors within capital market and outside of it, which are influencing the performance and development for functioning properly a business domain. It helps the corporations to source their capital and perform based on their business operation. In this way, capital market performance highly related to the macroeconomic factors along with its internal factors. This paper examines the institutional and macroeconomic determinants of stock market performance using data in the last 20 years starting from 1995 to 2015. In this paper, Gross Domestic Product (GDP), Consumer Price Index (CPI), inflation rate and Foreign Direct Investment (FDI) inflows were used as the proxy of macroeconomic determinants, whereas market capitalization, total issued capital and market turnover of Dhaka Stock Exchange were the proxy of institutional determinants of capital market performance. To identify the determinants and their significance in capital market development, both descriptive and inferential statistics are used. Descriptive statistics shows the trends and characteristics of the variables, while inferential statistics reveals the strengths of independent variable to influence the dependent variable. In the findings, both institutional and macroeconomic variable significantly influence the capital market performance. Categorically, CPI and GDP as macroeconomic determinants and Total Market Capitalization as institutional determinant found significant based on their coefficient value in the ordinary least square multiple regression analysis. These findings may become a useful input to design policies and strategies for stabilizing and stimulating the capital market in Bangladesh, especially, Dhaka Stock Exchange (DSE).

Stock Market Investors’ Guide to Corporate Dividend Policy: Evidence from Pharmaceuticals and Chemicals Industries in Bangladesh

Dividend policy has been an important component in the arena of financial literature and providing evidence that dividend payout decisions are affected by various factors. Numerous studies have been conducted so far on corporate dividend policy in Bangladesh. The pharmaceuticals and chemicals industries of Bangladesh offer a lot of investment panorama for the retail investors. This research has been an endeavor to determine the factors affecting the dividend policy of these promising industries, and guide the investment decisions of the equity investors. In this attempt, this study is also a unique one to incorporate the chemicals industry along with the pharmaceuticals industry as both the industries constitute the 'pharmaceuticals and chemicals sector' listed in the stock market of Bangladesh. The study is a quantitative one based on secondary data. It comprises of different statistical analyses such as descriptive statistics, correlation matrix and multiple linear regression analysis, etc. Firm size, growth, liquidity, profitability, last year's dividend and P/E ratio are used as dependent variables. Besides, ownership structure, firm age, market share, and risk are used as control variables. The study explores that firm size has significant negative and last year’s dividend has significant positive relationship with dividend payout. However, dividend payout does not depend on firm growth, liquidity, profitability and P/E ratio of a firm. The research outcome may have important implications for the improvement of investors' perceptions, which may assist them in their investment decisions in the researched industries. Certainly more work lies ahead to add to explanations for why some of the factors affect the dividend policy of the industries, while others have no significant impact thereon.

Eastern Housing Limited—Marketing Strategies of Real Estate Company in Bangladesh

This is an analysis for the management case of Eastern Housing Limited (EHL), Bangladesh. The premise of the case is that EHL having enjoyed market leadership of nearly 40 years has now started facing heat in the real estate market of Bangladesh. EHL has lost its leading position to East West Property Development Pvt. Ltd (EWPDL) which commands 30 per cent market share in the year 2015, whereas EHL holds approximately 20 per cent market share, inclusive of sales across different offerings in the real estate market. The reported compound annual growth rate (CAGR) of EHL (12.77 per cent) in the year 2015, however is much better than the industry (real estate renting and business services) CAGR of 4.4 per cent. But the upcoming years are going to be tough for EHL as competition is likely to intensify. The immediate focus of EHL is how to increase the market share though in long-run EHL wants to sustain and consolidate its position in the market. The analysis starts with situation analysis and ends with recommending future course of action for short-term vis-a-vis long-term perspectives.

Pharmaceutical Plastic Packaging Market in Bangladesh: A Study on Demand-Supply Scenario and Strategic Imperatives for Local Enterprises

Pharmaceutical packaging is highly sophisticated industry as quality and safety issues are of utmost priority. Use of advanced technology and high grade plastic materials for pharmaceutical packaging is essence of the market success. In Bangladesh, 30 local pharmaceuticals plastic packaging material producers are capturing almost 70% of the local market while the rest (30%) that require extremely high-tech processing is import dependent. Nevertheless, some local plastic companies are setting up world-class dedicated plant for pharmaceutical plastic packaging, while some pharmaceutical companies such as Square and Acme are extending their facility into backward value segment of the plastic packaging industry. This study strives to determine the market size, major players of the industry–both from supply and demand sides–along with individual contribution in terms of value. It also outlines strategic imperatives for growth and competitiveness of the enterprises involved in the industry.

Application of Mobile Phone in Agricultural Marketing in Bangladesh

Application of Mobile Phone in Agricultural Marketing in Bangladesh

Quality Evaluation of Some Selected Commercial Honey Products Available in the Market of Bangladesh

Quality Evaluation of Some Selected Commercial Honey Products Available in the Market of Bangladesh

Quality of Raw Milk Available at Different Markets of Bangladesh

Quality of Raw Milk Available at Different Markets of Bangladesh

Fostering the Use of Digital Marketing in Bangladesh: Challenges and Opportunities

Fostering the Use of Digital Marketing in Bangladesh: Challenges and Opportunities

Bangladeshi consumers' purchasing intention towards organic meat

The study investigates how consumers' psychological interpretation about organic meat's attributes stimulates their intention to purchase the meat in Bangladesh. The study included 320 selected organic data points, which have been analysed through Cronbach's alpha, test of normality, EFA, confirmatory factor analysis (CFA) and SEM to find valid result. The study finds that, apart from general attributes such as health benefits, verbal recommendations, purchase convenience and availability, which are important, statistically significant and positively affect consumers' intention to purchase the meat, consumers' cognitive and affirmative interpretation of organic meat's price does not statistically affect the consumers' intention to purchase the meat. The study also suggests that consumers' age, gender, number of children and regular habit of purchasing organic meat enhance them toward the intention to purchase the meat. Considering the empirical findings, stakeholders can select the appropriate marketing strategies for the development of the organic meat market in Bangladesh.

In Vitro Dissolution Study and Assay of Diclofenac Sodium from Marketed Solid Dosage form in Bangladesh

The aim of this study is to determine the potency of drug available in our market in Bangladesh. Diclofenac Sodium is a potent Non-Steroidal Anti-Inflammatory Drug (NSAID) and that are widely used and it is an Over the Counter (OTC) drug in Bangladesh. Potency determination was performed to evaluate that the marketed sample comply with the declared specification or not. In vitro Dissolution study was performed to see that if potency is high but the drug is not bioavailable. Hardness is also checked to see that whether it interfere with the dissolution which ultimately effect the bioavailability. In this present study a simple, cost effective and spectrophotometric method for the potency determination of marketed Diclofenac Sodium tablets is used. Four samples were randomly collected from the market and coded as D01, D02, D03 and D04 and the potency determined are 99.30%, 103.38%, 98.22% and 102.16% respectively. Hardness and in vitro dissolution of the above four brands of Diclofenac Sodium tablets were also studied and reported in the paper. After 1 h Dissolution release of DO1, D02, D03 and D04 are 94.16%, 93.97%, 96.94% and 98.5% respectively. From all of the studies it seems that the samples were collected complies with the BP and USP requirements.

Bangladeshi consumers' purchasing intention towards organic meat

The study investigates how consumers' psychological interpretation about organic meat's attributes stimulates their intention to purchase the meat in Bangladesh. The study included 320 selected organic data points, which have been analysed through Cronbach's alpha, test of normality, EFA, confirmatory factor analysis (CFA) and SEM to find valid result. The study finds that, apart from general attributes such as health benefits, verbal recommendations, purchase convenience and availability, which are important, statistically significant and positively affect consumers' intention to purchase the meat, consumers' cognitive and affirmative interpretation of organic meat's price does not statistically affect the consumers' intention to purchase the meat. The study also suggests that consumers' age, gender, number of children and regular habit of purchasing organic meat enhance them toward the intention to purchase the meat. Considering the empirical findings, stakeholders can select the appropriate marketing strategies for the development of the organic meat market in Bangladesh.

Investigation of Biogas Generation from the Waste of a Vegetable and Cattle Market of Bangladesh

The results of a study on the type and quantity of solid wastes generated in a rural vegetable and cattle market, and biogas generation from the waste are presented in this paper. The market wastes were collected; individual items were separated and measured on both normal days and haat days. During a normal day, it was found that very insignificant amount of waste was generated. But on a haat day, a large amount of wastes was found to be generated. On average, the amount of easily biodegradable waste was 589 kg out of the total waste of 1004 kg on a haat day. Cow dung, fish waste, ginger, cursed lobe, guava, and banana leaf were the major biodegradable wastes. Other biodegradable wastes were goat dropping, bitter melon, pointed gourd, dhundul and brinjal. The total solids (TS) and volatile solids (VS) of the biodegradable portion of the market waste were determined and were found to be 17.94% and 13.87% respectively. Laboratory experiments were run in order to generate biogas in anaerobic digesters using the same composition of the market waste. They were placed in a large closed chamber and room heaters were used to maintain the temperature of the chamber at a constant value. Two types of experiments (batch and daily feed) were carried out in two phases. In the first phase of the experiments, 500 g and 750 g waste were added in 2.5 L digesters separately and inoculum was added to make the effective volume of 2.1 L for each digester. The experiments were operated for 46 days (hydraulic retention time – HRT) and the average temperature was found to be 34.7°C. In the second phase of the experiments, one single chamber reactor was initially fed with 750 g waste having the effective volume of 2.2 L. Another double chamber (two digesters connected in series) reactor was initially fed with 750 g waste having the effective volume of 2.7 L. Then a mixture of daily feed of 18.75 g waste and required volume of water was fed after dispensing equal volume of slurry from the reactor. The experiments were run for 40 days and the average temperature was 35.1°C. The results of the 1st phase of experiments revealed that the daily biogas generation rate was 0.273 and 0.389 m3/kg of VS added for the organic loading rate (OLR) of 0.83 and 1.24 g VS/L/d respectively for 40 days retention time. The results of the 2nd phase of experments revealed that for HRT of 40 days, the rate of biogas producton was 0.244 and 0.30 m3/kg of VS added for the

Performance Evaluation of Bangladeshi Mutual Fund: An Analysis of Monthly Return Based on Net Asset Value

The popularity of mutual fund investing among private investors has grown dramatically all over the world during last 40 years. Therefore, the research in mutual fund has increased significantly. Despite this huge demand of mutual fund investing, only a few researches on mutual fund have been conducted in Bangladesh. In this paper an attempt is made to evaluate the performance of 15 close-ends Bangladeshi mutual funds traded in DSE (Dhaka stock exchange) based on monthly net asset value. For this purpose the methodologies employed in this study are risk adjusted performance measures suggested by Jensen, Treynor, and Sharpe widely known as Jensen alpha, Treynor ratio, Sharpe ratio. DSEX index has used as a proxy for benchmark index. The study found that over the research period (from 2013 to 2017) 12 out of 15 funds got superior return compared to benchmark index return. In addition to, diversification, market timing and selectivity skill of fund managers are tested with help of co-efficient of determination (R2), quadratic regression of Treynor and Mazuy and Fama decomposition model respectively. The paper found that 9 out of 15 funds are well diversified and have reduced its unique risk. Finally this paper has revealed no statistically significant timing skill but moderate level of selectivity in mutual fund market of Bangladesh.

Investigation of the Phytoconstituents and Bioactivity of Various Parts of Wild Type and Cultivated <i>Phyllanthus emblica</i> L.

Phyllanthus emblica L. belonging to the family Euphorbiaceae is a common medicinal plant in Bangladesh. In order to evaluate the phytoconstituents and bioactivity of various parts of P. emblica, both the wild type (i.e., small) and cultivated (i.e., big) fruits were collected from the local market of Bangladesh and six ethanolic extracts were prepared from various parts of the collected fruits for this current study. A comparative analysis of the phytochemical compositions and various bioactivities especially antibacterial, antifungal, and antioxidant activity of the six ethanolic extracts were accomplished. The qualitative phytochemical analysis of plant extracts revealed the presence of large amounts of proteins, carbohydrates, phenolic compounds, glycosides, alkaloids, coumarins, flavonoids, tannins, saponins and resins etc. The maximum antioxidant activity was observed for wild type P. emblica seed extracts and the minimum activity was observed for cultivated flesh extracts. Moreover, among the samples the wild type P. emblica extracts have excellent amount of total phenol contents and the highest free radical scavenging activity. It is also found that P. emblica samples were active against both gram-positive (i.e., B. subtilis) and gram-negative (i.e., E. coli, and S. typhi) bacteria. The highest antibacterial activity was achieved in the wild type P. emblica seed extracts against both pathogenic (S. typhi) and non-pathogenic bacterial strains (E. coli, and B. subtilis). These samples showed almost no activity against Fusarium sp. fungus.

A Study on Accounting Ratios to Determine Change in Market Share Price of Dhaka Stock Exchange With Reference to Commercial Banks of Bangladesh

The share market in Bangladesh has seen a major turmoil in 2010-2011. The reasons behind it are believed to be several and investigation is still going on. The paper aims to determine if change in company market share price could have been predicted by the financial indicators of the company. The study focuses on the private commercial banks in Bangladesh as it is a growing industry playing a significant role in the capital market of the nation. In Bangladesh, there are 30 private commercial banks listed in the Dhaka Stock Exchange. Of them, 23 banks are selected for the study on the basis of data availability for the ten-year period of January 2005 to December 2014. Accounting ratios indicating bank profitability, efficiency, risk, liquidity, and asset quality are chosen as bank financial indicators. Statistical tools as multivariate regression and correlation have been used on the 230 bank-year observations. Multi-collinearity among the final indicators has also been tested. It is seen that selective accounting ratios can be fine determinants of share price change in the financial market of Bangladesh.

Can Mutual Funds Outguess the Market: Evidence from Bangladesh?

This study principally analyzes the fund managers’ ability to outguess the market in Bangladesh. We perform the investigation on weekly data of 25 mutual funds for the period of May 16, 2010 to April 28, 2016. To serve our objective, we tested both selection and market timing skills of the fund managers. We have used six measures; average return, Sharpe ratio, Treynor ratio, Information ratio, Jensen’s alpha and M square; to confirm the selection skill of fund managers and found no selection skill persistent to most of the fund managers (excluding Aims 1st M.F, ICB AMCL 2nd NRB M.F. and 6th ICB M.F.). In addition, the negative values of alpha indicate that fund managers become not only failed to add value to their portfolio, but also pool wrong assets which hurt the return resulting negative profit. On the other hand, we have employed two popular methodologies; Treynor and Mazuy [24] and Henriksson and Merton [10]; to test the market timing skill of fund managers and found no market timing skill persistent to the fund managers. Thus, with a little exception, we can conclude that fund managers have no ability to outguess the market in Bangladesh.

Key success factors creating values in Marketing: a study on Instant-Food-Products (IFPs) marketing in Bangladesh

The concern as a marketer is to determine the key success factors that create value for products to the consumers in Bangladeshi market with regard to selected IFPs. Doing business based on value delivered gives companies the means to get an equitable return for their efforts. This study focusing on three IFTs such as Noodles, Biscuits & C'alces, and Chip, has attempted to determine the key success factors that create value for these products to the customers and retailers. Factors are then thoroughly scanned in terms of their merits and weights on the basis of findings from consumers' and retailers' survey. Finally the higher weighted factors have been considered as the key success factors that create va lue for the IFPs in Bangladeshi market. Study reveals an interesting finding that price is not the most important factor that consumers firstly prioritize in order to buy a brand of instant food product, rather taste and quality is the priority that consumers first consider. Moreover, in addition to taste and quality, packaging, price, advertising and availability of the product have been found to be the most important key success factors for instant food product marketing in Bangladesh. As the economy moves forward living styles with consumption pattern are becoming diverse. The criteria of choosing an instant food product, therefore, have been greatly different and factor dependent Marketers need to pay more attention on marketing strategy formation with regard to taste & quality, packaging and advertising as well as product innovation.Key words: key-success-factors, value creation, instant-food products, Introduction