Dhaka Stock Exchange

Pharmaceuticals and Banking Lead Growth

Allocate 35–40% of your portfolio to pharmaceutical and banking stocks. Beximco Pharma (DSE: BXPHARMA) reported 22% YoY revenue growth in Q3 2023, while Eastern Bank (DSE: EBL) maintains a steady dividend yield of 7.2%.

Key Metrics to Prioritize

• Price-to-earnings (P/E) ratios below 15 for undervalued stocks
• Debt-to-equity ratios under 0.8x in manufacturing sectors
• Dividend payout consistency (>5 years)

Regulatory and Liquidity Considerations

Foreign Investor Quotas

Non-resident investors face a 25% ownership cap in most listed companies. Exceptions include Grameenphone (DSE: GP), allowing up to 45% foreign holding due to its $2.1B market cap.

Transaction Cost Analysis

1. Brokerage fees: 0.50% for trades under ৳500,000
2. Stamp duty: 0.05% on sell-side transactions
3. Closing auction sessions contribute 12–15% of daily volume

Technical Alert: Monitor the DSEX index’s 50-day moving average (6,214 points as of October 2023). A sustained break below 6,000 could signal short-term bearish momentum.

Data source: DSE quarterly liquidity report, October 2023.

Identifying High-Potential Stocks on the DSE: Tools and Data Sources for Market Analysis

Leverage the DSE Market Data Portal for real-time access to stock prices, indices, and historical trading volumes. Combine this with financial statement analysis from company disclosures on the Dhaka Stock Exchange website to assess profitability (e.g., EPS growth above 15% quarterly) and debt-to-equity ratios (target below 1.5).

Toolkit essentials:

• Screening platforms: Use LankaBangla Stock Screener or EBL Securities Research to filter stocks by P/E ratio (aim for 10–20x), dividend yield (≥3%), and sector performance.
• Sector focus: Textiles, pharmaceuticals, and banking stocks contributed 68% of DSE’s 2023 trade volume; track quarterly revenue growth in these industries.
• Technical indicators: Apply Moving Average Convergence Divergence (MACD) or Relative Strength Index (RSI) charts via TradingView, integrated with DSE data feeds.

Monitor BSEC announcements for regulatory shifts impacting stock valuations, such as margin rule changes or IPO approvals. Cross-verify data with third-party platforms like DSE Talk Pro or StockBangladesh forums to gauge retail investor sentiment on specific stocks.

Key data sources:

• Quarterly reports: Analyze cash flow statements and management commentaries from corporate websites like Square Pharmaceuticals or Beximco Pharma.
• Macro indicators: GDP growth rates (6.12% in Q1 2024) and inflation trends (9.5% as of May 2024) from Bangladesh Bank’s publications.
• Institutional activity: Track block trade data through DSE’s weekly summaries to identify stocks with increasing institutional holdings.

Validate findings using broker research reports from firms such as BRAC EPL or IDLC Investments, which often highlight undervalued stocks with strong ESG scores or expansion plans. Pair this with price-volume analysis to confirm breakout patterns before entering positions.