This market actually traces its origins back to the incorporation of the East Pakistan Forex market watch Exchange Association Ltd in 1954. Actual trading did not begin until 1956.
In May of 1964, the name Dhaka Stock Exchange was adopted. Trade was halted in 1971 and resumed in Bangladesh 5 years later. The market experienced a crash in 1996 when bullish investors forced stock prices to rise well beyond their actual value and created a bubble that burst. The same thing has happened again in 2010. From 2003 to March 2010, this market has experienced steady growth in market capitalisation and share prices. On the surface, this looks like a positive factor.
To a certain extent, this is true. The market fundamentals have remained solid with steady growth until February of 2010. Then, the market began to experience a sudden surge in stock prices and market capitalisation that was not supported by the fundamentals. A portion of this can be blamed on an exaggerated increase in the market index that resulted from the addition of Grameen Phone IPO. However, this only explains a small portion of the surge. An analysis of market trends in graphic form shows that the CSE has not been subject to as many major drops in prices as the larger markets.
In fact, the leading index used to measure the performance of stocks on this market, the All Shares Price Index, shows that this market has enjoyed an almost steady climb over the past year. The CSE is currently at an all time high with the graph trend showing that it has more climbing to do before it tops out and drops off slightly. The current increase over last year is approximately 126 percent. This is growth that is unparalleled in any of the other world stock markets. Investors who are looking for rapid growth of their portfolios would be more than happy to see growth potential like this in any market. This platform provides an ideal environment for traders of all experience levels.