Determining the Growth Pattern of Securities Market in Bangladesh: A Case of Dhaka Stock Exchange Limited

Abstract

This study aims to identify the growth pattern and evaluation of performance of Bangladesh stock market over the time period of 2001- 2010. The study is undertaken based on the regression analysis and Kerl Pearson's Correlation Coefficient between the selected indicators of the market. The indicators used to determine the growth pattern and performance in terms of market capitalization, listed securities, issued capital, annual turnover, volatility in the market index. The findings of the study reveal that key indicators of the market growth are significantly correlated with each other. The findings of our study indicate that the Bangladesh's stock market is growing in terms of market capitalization to GDP, turn over ratio, value traded to GDP and number of listed companies. It is also found that the growth over the study period is not stable and has not been growing with any specific pattern yet. Considering the analysis authors of the paper conclude that Bangladesh stock market is still at a pioneering stage of its growth with a small market size relative to GDP and is characterized by poor market performance with highly volatile index movement.