1.

1: Introduction

The stock market history of Bangladesh refers back to 28 April, 1954

when the East Pakistan Stock Exchange Association Ltd. was
established. Formal trading began on the bourse in 1956. The trading
was suspended during the liberation war of Bangladesh in 1971.
Operation resumed again in the 1976 with the change in government
policy. During 1976, there were only 9 listed companies with total paid
up capital of Tk.0 .138 billion and market capitalization of Tk. 0 .147
billion which was 0.138 % of GDP. Since then the stock exchange
continued its journey of growth. The second stock exchange of the
country, the Chittagong Stock Exchange (CSE) was established in
December 1995. In order to control operation of the stock exchanges
and trading of stocks of listed companies, the government of
Bangladesh established the Securities and Exchange Commission of
Bangladesh on 8th June, 1993 under the Securities and Exchange
Commission Act, 1993 .The mission of the SEC is to protect the
interests of securities investors, develop and maintain fair, transparent
and efficient securities markets, ensure proper issuance of securities
and compliance with securities laws.

From the inception the stock market of the country was growing in a
slow pace. There was a large surge in the stock market in the summer
and fall of 1996 evidenced by a 197.43%, 372.30% and 370.51%
increase in the market capitalization, total annual turnover and daily
average turnover respectively in DSE and 506.63%, 210.2% and
615.15% increase in the market capitalization, total annual turnover
and daily average turnover in CSE. DSE general index grew from 832 in
January 1 1996 to 3567 in November 14, 1996 while that of CSE grew
from 409.4 in 1995 to 1157.9 in 1996. The market, however, crashed
in December of 1996 and the index started to decline significantly
since then with the index assuming a value of 507.33 as of November
of 1999, a cumulative decline of 83.44% from 1996 to 1999 with the
annual rate of 27.82%, and has yet to fully recover. Investors’
confidence was significantly damaged because of excessive
speculations, allegedly aggravated by widespread irregular activities.
The government of Bangladesh undertook the Capital Market
Development Program (CMDP) supported by the ADB on 20 November
1997. The CMDP aimed at

(i) Strengthening market regulation and supervision,

(ii) Developing the stock market infrastructure,
(iii) Modernizing stock market support facilities,
(iv) Increasing the limited supply of securities in the market,
(v) Developing institutional sources of demand for securities in
the market, and
(vi) Improving policy coordination.

The policy matrix of the CMDP included 95 program measures. Central

Depository Bangladesh Limited (CDBL) was incorporated as a public
limited company on 20th August 2000 to operate and maintain the
Central Depository System (CDS) of Electronic Book Entry, recording
and maintaining securities accounts and registering transfer of
securities; changing the ownership without any physical movement or
endorsement of certificates and execution of transfer instruments, as
well as various other investor services including providing a platform
for the secondary market trading of Treasury Bills and Government
Bonds issued by the Bangladesh Bank. CDBL went live with the
Electronic Treasury Bills registry of Bangladesh Bank on 20th October,
2003 and thereafter started equity market operations on 24th January,
2004. It was set up to facilitate the computerized delivery and
settlement of securities and eliminate to the extent possible, the paper
work involved in handling the transactions and that would ensure risk-
free and cost-effective settlement. Before establishment of CDBL, the
delivery, settlement and transfer procedures were handled manually
and were plagued by lengthy delays, risks of damage, loss, forgeries,
duplication and considerable investment in time and capital. Besides,
both the CSE (July 1998) and the DSE (August 1998) have automatic
trading services. By having automated trading system and a central
depository in place, the credibility of the country's Stock Exchanges in
the eyes of the prospective foreign investors are expected to grow
stronger and boost investment activities in the country's stock
markets. Contrastingly, foreign portfolio investment, never more than
$200 million, has virtually disappeared form the stock market of
Bangladesh.
 1.2: Objectives of the Study

The prime purpose of the study is to fulfill the academic requirements

of BBA program. Another important purpose of the study is to evaluate
the performance of some stocks contrasting through value and growth
categories. As the Bangladesh capital market is growing rapidly in
recent years but the existence of any guideline for the investors is
totally absent, so keeping this in mind, I have tried to make this paper
a meaningful one for the investors as well as for the people who are
involved in this market.

The key objectives of the study can be depicted as follows:

 To present an overview of the country’s capital market focusing

on CSE.

 To evaluate the activities of CSE.

 Defining growth and value stocks.

 To evaluate the present market in terms of value stock & growth

stock.

 To draw some pros and cons about

  To evaluate the best option between value stock & growth stock.

1.3: Methodology of study

In order to complete my term paper I have visited Chittagong Stock

Exchange Limited. Mr. Mohammed Shahidullah, Assistant Manager,
Market Regulation Department, helped me a lot with much information
and proper guidance about CSE’s enriched library. Besides this, the
website of CSE helped me a lot with many statistical data and analysis.

I collect data from primary and secondary sources:

a) Primary data collected through:

* Questionnaire.

* Observation

* Conduction of conversation.

b) Secondary data collected through:

* Different books

* Different websites.

* Some publications on capital market.

 1.4: Scope & Limitation of the study

Any research work needs high degree of involvement regarding

collection of information, literature review & analysis of data. In this
study, I tried my best to collect the related information within the time
constrains, analyzed and compared the data being with the limitation.

However I have found the following limitations of the study:

• The objective of the study was to evaluate the present market in

terms of value stock & growth stock. But it was very difficult to
achieve within this limited span of time.

• Discussion about the performance growth and value stocks is a

vast subject, but only some selected areas are covered in the
term paper.

• In this country, a huge part of the market is dependant on rumor.

So, it was quite difficult for me to analyze the market trend.

• It was not possible to collect adequate data relating value stock

& growth stock.
 • Because of the code of conduct, it was not possible to get much
information about the market from CSE personnel.

2.1: Definition of Value Stock

Value stock is a stock that tends to trade at a lower price relative to

it's fundamentals (i.e. dividends, earnings, sales, etc.) and thus
considered undervalued by a value investor. Common characteristics
of such stocks include a high dividend yield, low price-to-book ratio
and/or low price-to-earnings ratio.

Value investing is an investment paradigm that derives from the

ideas on investment and speculation that Ben Graham & David
Dodd began teaching at Columbia Business School in 1928 and
subsequently developed in their 1934 text “Security Analysis”.
Although value investing has taken many forms since its inception, it
generally involves buying securities whose shares appear underpriced
by some form(s) of fundamental analysis. As examples, such securities
may be stock in public companies that trade at discounts to book
value or tangible book value, have high dividend yields, have
low price-to-earning multiples or have low price-to-book ratios.
 2.2: Value Investing Performance

Performance, value strategies

Value investing has proven to be a successful investment strategy.
There are several ways to evaluate its success. One way is to examine
the performance of simple value strategies, such as buying low PE
ratio stocks, low price-to-cash-flow ratio stocks, or low price-to-book
ratio stocks. Numerous academics have published studies investigating
the effects of buying value stocks. These studies have consistently
found that value stocks outperform growth stocks and the market as a
whole

Performance, value investors

Another way to examine the performance of value investing strategies
is to examine the investing performance of well-known value investors.
Simply examining the performance of the best known value investors
would not be instructive, because investors do not become well known
unless they are successful. This introduces a selection bias. A better
way to investigate the performance of a group of value investors was
suggested by Warren Buffett, in his May 17, 1984 speech that was
published as ‘The Superinvestors of Graham-and-Doddsville’. In this
speech, Buffett examined the performance of those investors who
worked at Graham-Newman Corporation and were thus most
influenced by Benjamin Graham. Buffett's conclusion is identical to that
of the academic research on simple value investing strategies--value
investing is, on average, successful in the long run.

During about a 25-year period (1965-90), published research and

articles in leading journals of the value type were few. Warren Buffett
once commented, "You couldn't advance in a finance department in
this country unless you taught that the world was flat”.

Value investing guru: Warren Buffett

The modern day guru of value investing is Warren Buffett, though he

dislikes the value/growth dichotomy and seems to have no single
straightforward valuation formula. Buffett is one of the most celebrated
and successful investors in the world and the returns on his
investments over the past three decades have outperformed indexes
of the US stock market. How has he done it?

Benjamin Graham wrote that 'investing is most intelligent when it is

most businesslike', words that encapsulate Buffett's philosophy that
the successful investor should buy a business rather than a stock. This
means being able to answer three basic questions:

1) Is the business simple and understandable?

2) Does it have a consistent operating history?

3) And does it have favorable long-term prospects?

Buffett has made most of his money out of sectors he knows

intimately, such as media and financial services, and he rarely invests
outside this 'circle of competence'. Knowing the industries, he can then
look closely and critically at a company's market standing, earnings
potential and management skills to evaluate whether he should invest
in its stock.

Buffett buys companies that he likes and understands, 'good

businesses' in which he can get to know the management and judge
their actions in the context of his own experience. 'I am a better
investor because I am a businessman and a better businessman
because I am an investor', he says.

Is management rational in its financial, operational and capital

expenditure policies? Is it candid with the shareholders about
performance and does it actively aim to maximize returns to
shareholders? And does it resist the institutional imperative to act in its
own interests rather than those of the shareholders? Buffett contends
that these are all essential questions to ask before investing in a
company. And even when proven talented new management comes
into a weak company looking to turn it around, you still need to be
careful. As Buffett quips, 'when a company with a reputation for
incompetence meets a new management with a reputation for
competence, it is the reputation of the company that is likely to remain
intact.'

It is clear that Buffett's investments have often been more a judgment

of the people running a company than the numbers. Nevertheless,
there are some powerful and fundamental financial tenets underlying
his evaluation of businesses. They include a focus on the measure of
return on equity rather than earnings per share, a search for
companies with high profit margins, and a check that, for every dollar
retained, a company has created at least one dollar of market value. In
addition, Buffett calculates 'owner earnings', a company's net income
plus depreciation, depletion and amortization, less capital expenditure
and any additional working capital.
Using these measures and the company's price quoted on the stock
market, Buffett can answer two final questions about a potential
purchase: what is the value of the business? And can it be purchased
at a significant discount to its value? The critical factor in a successful
investment, he contends, is determining the 'intrinsic value' of a
business and paying a fair or bargain price for it. Opportunities arise
when the market forces down the price of a good business or when
investor indifference allows a superior business to be priced at half of
its intrinsic value.

One principle that is central to Buffett's business analysis is that it

does not matter what the overall stock market is doing. You should
certainly be psychologically and financially ready for the market's
inevitable volatility, and well prepared to see your holdings decline
perhaps 50% in value without becoming panic-stricken. But you must
also remember that the market is unpredictable and manic depressive
at times wildly excited or unreasonably depressed. Good businesses
will not suffer from those moods over the long-term.

Similarly, Buffett would argue, there is no point in worrying about the

economy and the impact that boom, recession, depression and
recovery might have on your portfolio. Again you need to be prepared
for the worst: 'Noah did not start building the Ark when it was raining.'
But at the same time, you should be investing only in businesses that
can be profitable in all economic environments, concentrating your
analysis on the current and potential occupants of your portfolio rather
than trying to make macroeconomic forecasts.

Buffett is equally belligerent about how many different stocks the ideal
portfolio should hold the degree to which it should follow the principle
of diversification. He is of the opinion that a portfolio should generally
be concentrated on a limited number of businesses which the investor
can get to know really well. Otherwise, returning to the Old Testament
theme, 'one buys two of everything and in the end owns a zoo'.
Berkshire's short list of equity assets reflects this view.

Buffett also believes that the best way to outperform the herd over the
long-term is to avoid excessive trading of stocks and to reinvest
dividends in order to compound gains. Indeed, Berkshire itself has not
paid its shareholders a dividend since 1967. In times when many fund
managers are constantly changing their portfolio, shifting in and out of
a wide variety of stocks and incurring heavy dealing costs, a buy and
hold strategy can be highly successful.

The important characteristic of such a strategy is that you do not need

a lot of good ideas to do well. Brokers are always looking to encourage
trading activity in your account. But just a few good decisions made
and adhered to are as likely to give you the returns you are seeking, if
not better. Buffett thinks the key is patience: 'lethargy bordering on
sloth remains the cornerstone of our investment style'.

And you do not have to be an expert at corporate valuation to benefit

from this style of investing. The main thing is to understand the
businesses you own or plan to buy. That information can easily be
gleaned through their annual reports, the relevant business and
financial press and a host of other corporate data, much of which is
easily available via the internet.
 2.3: Criticism

Value investment tends to work best when the market as a whole is

low. There are few guaranteed bargains when the market is highly
priced, and with a strongly rising market, growth stocks often rise
faster then value stocks. So the late 1990s, with a upward trend
market in the United States and elsewhere, have been grim times for
most kinds of value investors. Years of poor performance are eroding
the long-term case for value stocks.

In the United States, for example, the S&P 500 beat the Dow Jones
Average by eight percentage points in both 1997 and 1998. The Dow
has been hit by downgrades from fading industrial and consumer
stocks, such as Boeing and Coke, while technology stocks, notably
Microsoft, have supported the S&P. Economic conditions seem to be
powerfully against value investing with falling long-term interest rates
increasing the present value of growing revenue streams compared
with static ones.

Furthermore, because value stocks tend to be weaker companies in

cyclical industries, they are especially vulnerable to an economic
slowdown. The assumption that the great companies will always
survive and demonstrate their true value, which underlies the classic
Graham view of investing, may no longer be true. These days, many
leaders of the world's dominant corporations fear that in just a few
years time, their 'lunch will be eaten' by competitors they have not yet
heard of.

Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. LLC

comments: 'Value stocks have been bid up to a level where they may
not even have an appropriate risk premium far less an excess return.
For value investing has always had a hidden but serious risk: the sixty
year flood. The so-called price/book effect (and the small stock effect)
sound like a free lunch, but in 1929-33, 20% of all companies went
bankrupt. They were not the large high quality blue chips but small
'cheap stocks' with low price/book ratios. To add insult to injury, the
data indicates that the best growth managers add more to growth than
the best value managers can add to value, probably because the
fundamentals and the prices are more dynamic for growth stocks.'

An issue with buying shares in a downward market trend is that

despite appearing undervalued at one time, prices can still drop along
with the market. Conversely, an issue with not buying shares in
an upward market trend is that despite appearing overvalued at one
time, prices can still rise along with the market.

Another issue is the method of calculating the "intrinsic value". Two

investors can analyze the same information and reach different
conclusions regarding the intrinsic value of the company. There is no
systematic or standard way to value a stock.
 2.4: Definition of Growth Stock

Growth stocks represent companies that have demonstrated better-

than-average gains in earnings in recent years and are expected to
continue delivering high levels of profit growth. While earnings of some
companies may be depressed during periods of slower economic
growth, growth companies may potentially continue to achieve high
earnings growth regardless of economic conditions. "Emerging" growth
companies are those that have the potential to achieve high earnings
growth, but have not established a history of strong earnings growth.

Growth stocks are those that represent rapid growth. They generally
offer higher returns on the stock investments made. However, with
those higher returns also come higher risks. A stock's value with
growth stocks is usually determined on potential. Growth for small
companies is general a yearly return of at least 10%, and for larger
companies, it should be around 7%. Some stocks have even higher
returns in sectors that have higher potential. When incorporating
growth stocks in your portfolio, it might be a good idea to set a
reasonable level at which you will sell. This can help you earn a profit
and get out before a downtrend market destroys the value of the
stock.

2.5: Defining features of Value & Growth Stocks

Growth Stocks

• Higher priced than broader market

• High earnings growth records

• More volatile than broader market

Value Stocks

• Lower priced than broader market

• Currently priced below similar companies in industry

• Carry somewhat less risk than broader market

 2.6: Growth and Value Stocks Are Complementary

Following a specific investment style, such as growth or value, provides

investment managers with guidelines for choosing stocks. Growth fund
managers look for high-quality, successful companies that have posted
strong performance and are expected to continue to do well, though
there are no guarantees. Investors are willing to pay high price-to-
earnings multiples for these stocks in expectation of selling them at
even higher prices as the companies continue to grow. The risk in
buying a given growth stock is that its lofty price could fall sharply on
any negative news about the company, particularly if earnings
disappoint Wall Street.

Value fund managers look for companies that have fallen out of favor
but still have good fundamentals. They buy these stocks at bargain
prices below the stocks’ average historic levels or below the current
levels in their industry groups. Many value investors believe that a
majority of value stocks are created due to investors’ overreacting to
negative events. The idea behind value investing is that stocks of good
companies will bounce back in time when the true value is recognized
by other investors. But this recognition of value may take time to
emerge and, in some cases, may never materialize.

Which strategy — growth or value — is likely to produce higher returns

over the long term? The battle between growth and value investing
has been going on for years, with each side offering statistics to
support its arguments. Some studies show that value investing has
outperformed growth over extended periods of time on a value-
adjusted basis. Value investors argue that a short-term focus can often
push stock prices to low levels, which creates great buying
opportunities for value investors.

Combining Growth and Value

For many mutual fund investors, however, there may not be an

absolute advantage to any single approach to investing over a
long period of time. Instead of choosing only one approach,
individual investors may strive for the best-possible returns with
the minimum risk by combining growth and value investing. This
approach allows investors to potentially gain throughout
economic cycles in which the general market situations favor
either the growth or value investment style. For example, value
stocks, often stocks of cyclical industries, tend to do well early in
an economic recovery; growth stocks, on the other hand, tend to
lead bull markets, which are normally fueled by falling interest
rates and increased company earnings. Also, because the two
groups of stocks tend not to move in the same direction or to the
same extent, investors can enhance return potential and reduce
risk by combining the two approaches.
 Points to Remember

1. Growth and value are two approaches, or "styles," of investing

in stocks.
2. Portfolio managers use an investment style to describe their
rules for selecting securities.
3. Value investors seek stocks that are priced near or below the
value of the company’s assets. Growth investors seek
companies that are growing earnings rapidly.
4. Because they take time to turn around, value stocks may be
more suited to longer-term investors and may carry more risk
of price fluctuation than growth stocks.

Individual investors who purchase mutual funds can combine the

two investment styles to help lower risk.

3.1: Chittagong Stock Exchange (CSE)

The Chittagong Stock Exchange (CSE) is a not-for-profit organization,

formed and registered with the registrar Joint Stock Companies and
Firms in Bangladesh on April 1, 1995 as a public company limited by
guarantee with an Authorized capital of 150,000,000 divided into 500
shares of Tk. 300’000 each. The Exchange members are not its
beneficiaries since they are not involved in profit sharing and taking
dividend. All its surpluses are spent on the development of capital
market in the country. The principal activities of the Exchange are to
conduct, regulate and control the trade. Starting from a rental building,
the exchange currently owns a two-storey building measuring 28,000
sft. It is the second stock exchange of Bangladesh that started its
journey with the aim of offering the investors a transparent and
efficient capital market. On October 10, 1995 CSE introduced a fully
automated screen based trading system replacing the obsolete setup
enabling its trade operations from three major cities in Bangladesh.

In the backdrop of a strong desire to institute a dynamic, automated

and a transparent Stock Exchange in the country, seventy reputed
business personalities under the leadership of the founder president
Amir Khosru Mahmud Chowdury, were chosen to establish and run the
exchange. Only 30 securities were listed on the first day trade when
market capitalization stood at US$0.2 Billion. Now CSE is facilitating
investors through a fully automated exchange with screen based
trading facility on countrywide communication networks. CSE started
online trading system on the 30th may 2004. CSE offers buying and
selling and dealing in shares securities, bonds, debentures, govt.
papers and any other instruments through brokers and dealers. It is
also involved in disseminating information to investors by publishing
monthly portfolio and other necessary publications. The exchange is
also involved in research and development activities pertaining to
capital market.

MISSION

The Chittagong Stock Exchange believes that a dynamic,

automated, transparent stock exchange is needed in
Bangladesh. It works towards an effective, efficient and
transparent market of international standard to serve and invest
in Bangladesh in order to facilitate the competent entrepreneurs
to raise capital and accelerate industrial growth for overall
benefit of the economy and keep pace with the global
advancements.

OBJECTIVES
• Develop a strong platform for entrepreneurs raising capital;

• Provide a fully automated trading system with most modern

amenities to ensure: quick, easy, accurate transactions and
easily accessible to all;

• Undertake any business relating to the Stock Exchange, such as

a clearing house, securities depository center or similar
activities;

• Develop a professional service culture through mandatory

corporate membership;

• Provide an investment opportunity for small and large investors;

• Attract non-resident Bangladeshis to invest in Bangladesh stock

market;

• Collect preserve and disseminate data and information on stock

exchange;

• Develop a research cell for analyzing status of the market and

economy.

3.2: CSE at a glance

• Type of organization : A Not-for-profit public limited

• Authorized capital
• Paid up capital
• Number of members
bodies
• No. of listed companies
• No. of listed Mutual funds
company by guarantee.
: TK. 150 Millions
: TK. 38.7 Millions ($0.72 millions)
: 129, all members are corporate
: 234
: 26
 • No. of listed Debentures : 02
• CSE all share Index : 12935.7627 (as on
08/09/10)
• CSE-30 Index : 15741.5925 (as on
08/09/10)
• Market capital : TK. 2,546,850,069,349.75 (as on
08/09/10)
• Trading days : Sunday to Thursday.
• Trading procedure : Automated Trading System.
• On line trading system : 30th may, 2004.

Regulatory Structure Overview

Organization Structure
Milestones:

12th February : 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 (Former FIVB)
2nd June 1998 : First bourse to automate the nationwide trading
system
1999 : Established CSE Investor Protection Fund
16th January 2000 : Convened SAFE
26th January 2004 : Sponsored Central Depository Bangladesh
Ltd. (CDBL)
30th May 2004 : Internet Trading Service opened
4th July 2004 : Over- the-Counter market opened

3.3: Chittagong Stock Exchange (CSE) Trading Regulations

In exercise of the powers conferred by section 34(1) of the Securities
and Exchange Ordinance, 1969, Chittagong Stock Exchange Limited
makes with the prior approval of the Securities and Exchange
Commission the following Regulations: -

I. Preliminary

1. Short title and extent of applicability:

1.1. These Regulations may be called the ‘Chittagong Stock

Exchange Trading Regulations, 1998’.
1.2. These Regulations shall apply to all members of Chittagong
Stock Exchange Ltd. and their authorized representatives who
are entitled to trade under these regulations of Chittagong Stock
Exchange Limited.
In these Regulations, unless there is anything repugnant in the
subject or context:
1.3. ‘CSE’ and ‘Exchange’ mean the Chittagong Stock Exchange
Limited;
1.4. ‘Trading day’ means any day on which the exchange is kept
open for trading;
1.5. ‘CEO’ means the Chief Executive Officer of the Exchange;
1.6. ‘Clearing House’ means the clearing house of CSE;
1.7. ‘Board’ means the Board of Directors of the Exchange;
1.8. ‘SEC’ and ‘Commission’ mean the Securities and Exchange
Commission.
1.9. ‘Trading System’ means computerized system which
receives orders from eligible members of CSE and their
authorized representatives, scrutinizes, sorts, executes orders
and broadcasts market scenario to members and any other
persons authorized by the CSE connected to it under these
Regulations;
 1.10. ‘Tick price’ means the smallest change that is possible to
be made to a price of a particular security;
1.11. ‘Price Band’ means rate plus/minus (+/-) deviation
percentage and/or amount thereof;
1.12. ‘BBO’ means the Best Bid and Offer prevailing in the
market at any particular point of time;
1.13. ‘Price Limit’ means the range of price if any, prescribed by
the concerned authority within which trade in a listed or
permitted security shall take place;
1.14. ‘MWS’ means the Member’s workstation;
1.15. ‘Member’ means member of CSE who is registered as the
Stock-broker/Stock-dealer by the Securities and Exchange
Commission under the Securities and Exchange Commission
(Stock Dealers, Stock Brokers and Authorized Representatives)
Regulations, 1994;
1.16. ‘Net limit’ means sell minus buy or buy minus sell or only
sell upto the limit or only buy up to the limit as prescribed by
authorities concerned.

II. Eligibility for Trading

A member shall be eligible to trade in Chittagong Stock

Exchange, when:

1. It becomes the member of CSE Clearing House;

2. It obtains Dealership / Brokerage License from the
Securities and Exchange Commission (SEC);
2. It is not otherwise barred by CSE or SEC.

III. Trading period

Trading may be conducted on every trading day as per the time

decided by CSE.
Trading period shall be divided into the following sessions:

1. Pre-opening session:
During this session order entry, deletion/modification of limit
orders are only permitted. Execution of orders shall not be done
during this session. The previous day’s closing price and index
will be available to the dealers/brokers during this session.

2. Opening session:
During this session matching of orders shall be done at opening
price. The opening price shall be calculated based on the orders
entered into the system during the pre-opening session, as well
as the pending orders of the previous trading day session. The
opening price of a security shall be the price at which maximum
number of securities is matched.

In the event of there being no trade for certain securities, then

the last closing price for the security shall be made the opening
price for the day.

No order entry shall be permitted during this session.

3. Continuous Trading session:

During this session order entry, deletion/modification of orders
can be provided. Orders shall be executed during this session
and if an order can not be executed in whole or in part, then it
will be stored as an unfilled order.

Unfilled orders from the pre-opening session shall be carried

forward with time stamp to this session.
4. Closing session:
During this session the system stops receiving orders. The
closing price for a security shall be determined as per the
weighted average price of all the trades in the last 30(thirty)
minutes before the closing session. If there is no trade during the
above specified time, the weighted average price of maximum
50 (fifty) number of trades preceding the above 30(thirty)
minutes shall be taken for determination of closing price. If there
has been no trade in the security during the continuous trading
session the opening price of the security shall be treated as the
closing price.

Pending orders executable at closing price and orders ‘match at

closing price’ shall be executed in this session. All other pending
orders shall be carried forward to the Close Price Trading
Session.

5. Close Price Trading Session:

During this session, the system will accept only ‘match at closing
price’ order. This type of orders and all executable pending
orders shall be executed in this Session at closing price. If any
‘match at closing price’ order is not executed in whole or in part,
it will be removed from the system automatically and all other
pending orders except the expired ones shall be carried forward
to the following Trading Day.

6. Post closing session:

During this session the system will provide access to trading
members to make enquiries, verify, and down load the daily
transaction details.
IV. Extending or Curtailing Business Hours
The CEO in Committee, a Committee comprising of the CEO, the
Company Secretary of CSE and the relevant Departmental Heads
of CSE may extend, curtail or change the trading hours, including
the session timings if the situation warrants so and such changes
will be intimated to the members and others concerned by
broadcast through the CSE trading network.

V. Holidays
The market shall be closed on the following days, namely, all
bank holidays declared under the Negotiable Instrument Act,
1881 and on such other days as the Board may consider it
desirable to observe as holidays provided that these days be
notified in advance other than on extreme exigencies or force
majure.

VI. Order Types

The various types of orders may be as follows:

1. Limit Order
A Limit Order is the order in which the buying price or selling
price for a certain quantity of particular security is specified. If
the full quantity of the order is not executed immediately then
the unfilled part of a limit order is stored in the order book of the
system until it is matched or its duration expires. A member
may have multiple orders for the same security at the same
time. Limit Order will be in the following categories.
 1.1. Good Till Cancelled (GTC): A GTC order is the order
that remains in the system for a period not exceeding one
calendar week or the member cancels it.
1.2. Good For Day (GFD): A GFD is the order which is valid
for the day on which it is entered. If the order is not
matched during the day, the order gets cancelled
automatically at the end of the trading day.

1.3. Good Till Date (GTD): A GTD order allows the member
to specify the number of days not exceeding one calendar
week for which the order shall stay in the stay in the
system. At the end of this period the order shall be deleted
from the system.

2. Market order
Market Order is an order to buy or sell a certain quantity of
particular security at the best price or prices prevailing in the
market at that point of time.

Market Orders will be in the following categories:

2.1 Full Fill or Kill (FOK): A FOK order is the order that
will match for a trade at the Market Price only if the total
quantity is available.
2.2 Partial Fill Rest Kill (PFRK): A PFRK order is the
order that will match for a trade at the Market Price for the
quantity available in the market. The balance quantity, if
any, will be deleted from the system.
2.3 Partial Fill Rest Convert (PFRC): A PFRC order is
the order that will match for a trade at the market price for
the quantity available in the market. The balance quantity,
 if any, will be converted to a Limit Order at the last traded
price.
2.4 Minimum Fill: An order in which the minimum
quantity must be filled.
Only one of the above market order types shall be applicable for
a single market order. The member shall choose the market
order type when entering the order itself.

3 Market order protection

Market order protection is a protection applied to market orders
to ensure that these are not executed at undesired prices. The
market order protection will ensure that the trade price for
market orders shall be within a certain price band (depending on
the market order protection value). The market order protection
value (which will be supplied by the member, when the market
order is entered) will be an absolute money value, as
appropriate. For a market buy order it will be relative to the BBO
offer price and for a market sell order it would be relative to the
BBO bid price.

4. Drip Feed Order

A Drip Feed Order is an order in which the member has the
option to specify a replenish quantity along with the total order
quantity. Only the replenish quantity is revealed to the market.
The quantity gets replenished only when the previous quantity
has got traded and every time the quantity gets replenished, the
visible quantity gets a new time stamp. The system will treat the
drip feed order as multiple limit orders.

5 Stop Loss Order

A Stop Loss Order allows the member to place an order which
gets activated only when the market price of the relevant
security reaches or crosses trigger price. Until then the order is
maintained in a separate book which shall not be a part of the
mainstream matching process. As soon as the BBO reaches the
trigger price, the Stop Loss order is converted to a Limit order at
the trigger price plus/minus the Protection Value (supplied from
the MWS). In case of Buy order the limit price will be equal to
Order Rate plus Protection Value and in case of Sell order the
limit price will be equal to Order Rate less Protection Value.

A stop loss order can be modified or deleted until it is not

converted to a limit order.

6. Match at Closing Price Order

A ‘Match at Closing Price’ Order allows the Member to specify
order to be executed at Closing Price.

7. Spot Order
Members shall be allowed to carry out spot order on CSE system
arising out of closure of book or closure of the renunciation
period of listed Companies.

A spot order is traded against another spot order only.

8. Odd Lot Order

Any share quantity, which is not a market lot or multiple of
market lots shall be called Odd Lot. While matching the system
would match orders only if the quantity (odd) of the order is fully
satisfied by one of the opposite order.
 9. Bulk lot order
Bulk lot orders are multiple of market lot orders which contain
multiple numbers of certificates. This type of order automatically
carries the ‘all or none’ condition. Each of the Bulk lot order shall
match with equal quantity and best price.

The minimum amount for a bid of bulk lot for a certain security
shall be Tk 0.5 (point five) million at market price unless
otherwise fixed by the Board time to time with the approval of
the SEC.

10. Big Lot Order

Big lots are multiple of market lots inscribed in one single
certificate. This type of order automatically carries the ‘all or
none’ condition. Each of the big lot order shall match with equal
quantity and equal or better price.

VII. Auction Order

1. Auction Session
Auction session may be conducted simultaneously with trading
session or in a separate session.

2. Auction Order
Auction Order shall be an order entered by CSE. Before the start
of the Auction Session, CSE will enter all its auction orders. The
Exchange will specify a rate with price brand for each security
when putting the auction order. The auction orders entered by
CSE cannot be modified or deleted once the auction session has
started.
 At the end of auction session, allotment of bid/offer will be made
by CSE at best price. All non- allotted orders are removed from
the system at the end of the Auction Session.
A member, who is a defaulter for any order entered by the Stock
Exchange, will not be allowed to place solicitor orders in that
security.
Provided however that all bid for Odd lot, Bulk lot and Big lot
shall be entered in the system stating quantity and name of the
security with price per share. The bid shall be accepted in the
system during the continuous trading session only. The duration
of these orders will be same as applicable for limit orders.

Spot order, Odd lot order, Bulk order, Big Lot order and Auction
Order will not be considered for BBO formation and closing price
calculation. This type of trade will not also affect the calculation
of average price, high and low price, last traded price and
quantity and all share price index for the securities.

VII. Transaction Charge

A transaction charge shall be charged and collected by CSE from
the members concerned upon execution of all orders as specified
by the CSE.

VIII. Order Validation

1. The member shall give the following information for order
entry:
1.1. Order type
1.2 Security ID/Code
1.3 Buy/Sell Indicator
1.4 Quantity
1.5 Price, GTC/ GTD/ GFD, if limit order
 1.5 Client Code
1.6 Market Order protection, FOK/ PFRK/ PFRC, if market
order total quantity & replenish Quantity if Drip Feed
Order, Order Retention/ Duration, if limit order, drip feed
order and stop loss order.
2. The member has to indicate whether the order is on behalf of
a client or not. If the client code is not entered then the order
shall be treated as the trader’s own order.

3. All prices entered into the system, which shall be a

multiple of tick price for that security. Tick price in the system
will be different for different securities and will be a security
dependent parameter in the system.

The member shall enter at least single market lot or multiple

thereof except the Odd Lot.

IX. Order Acceptance

An order that passes the validation checks will be accepted by the
Exchange system and will be forwarded to the execution system.
Accepted orders will contain an Exchange allocated unique order ID
which is to be used for all future references to the order. Each order
will be given a particular time stamp by the system upon acceptance.
Modified orders will also be time stamped again and will be assigned
fresh order IDs.

X. Order Modification or Cancellation

1 Amend Order
The price, volume, retention & client ID of an order can be changed
prior to execution, or for any unexecuted portion of an order
On every modification the order will carry a new time stamp and a new
order ID.

2. Cancellation of Order
Orders can be cancelled at any point prior to execution. All orders shall
be automatically deleted from the system once their time condition
has expired.

XII. Order Matching

During the trading day the system will match orders with existing
opposite type of orders which have the best price. Waiting orders are
required to be matched in the following sequence:
1) Best Price
2) Within Price, by time priority
The best buy order will match with the best sell order. The best buy
order for a seller is the one with highest price and the best sell order
for a buyer is the one with lowest price. An order may match partially
with another order resulting in multiple trades.

XII. Suspension of Trading

The CEO in Committee of CSE will have the authority to suspend
trading of specific securities, trading by specific members or permit the
resumption of trading activities in the security by the member from the
terminal. The matter however shall be informed to the SEC
immediately within the trading day.

XII. Automatic Monitoring

1. The system shall automatically enforce the price limit
regulations/orders.
It will allow for the variation of the security price with reference
to previous day’s weighted average price. The system will reject
any orders which are outside the price limits set under the price
limit regulations/ orders.
2. The size of every security shall be specified by the system as
limits for each security. Any order with quantity breaching these
limits shall be rejected.
3. CSE shall determine the net limit for every member .If a
member exceeds net limit at any point of time such member
shall be suspended automatically. The limits may be changed by
CSE time to time.
4. CSE shall specify the minimum price change steps (tick price)
that can be made for each order entered into the system. The
tick prices will have absolute values and will not vary with
security price. Any change in the tick price will be made and
entered before the system starts.
 3.4: Growth Stocks & Value Stocks in CSE

As an investor in stocks, what do experts mean when they say 'stocks

are cheap or expensive'? Everyone involved in share market often hear
this in connection with a story on whether it is a good (or bad) time to
buy or sell.

Often, they are referring to the PE (price earnings ratio) of stocks. This
metric tells you how much, investors are willing to pay for the earnings
a company produces. In general, the higher the PE, the more
'expensive' a stock.

If there is one number that people look at than more any other it is the
Price to Earnings Ratio (P/E). The P/E is one of those numbers that
investors throw around with great authority as if it told the whole story.
Of course, it doesn’t tell the whole story (if it did, we wouldn’t need all
the other numbers.)

The P/E looks at the relationship between the stock price and the
company’s earnings. The P/E is the most popular metric of stock
analysis, although it is far from the only one you should consider.

One can calculate the P/E by taking the share price and dividing it by
the company’s EPS.

P/E = Stock Price / EPS

For example, a company with a share price of Tk. 40 and an EPS of 8

would have a P/E of 5 (Tk. 40 / 8 = 5).
What does P/E tell you?
The P/E gives us an idea of what the market is willing to pay for the
company’s earnings. The higher the P/E the more the market is willing
to pay for the company’s earnings. Some investors read a high P/E as
an overpriced stock and that may be the case, however it can also
indicate the market has high hopes for this stock’s future and has bid
up the price.

Conversely, a low P/E may indicate a “vote of no confidence” by the

market or it could mean this is a sleeper that the market has
overlooked. Known as value stocks, many investors made their
fortunes spotting these “diamonds in the rough” before the rest of the
market discovered their true worth.

What is the “right” P/E?

There is no correct answer to this question, because part of the answer
depends on your willingness to pay for earnings. The more you are
willing to pay, which means you believe the company has good long
term prospects over and above its current position, the higher the
“right” P/E is for that particular stock in your decision-making process.
Another investor may not see the same value and think your “right”
P/E is all wrong.

For analyzing the performance of Growth and Value stocks in

Chittagong Stock Exchange (CSE), here, I have considered P/E ratios
for measuring the performance of the shares for suggesting a better
portfolio one may have.
Before analyzing, it needs a better understanding of these two types of
stocks.

Although there are no hard and fast definitions of growth and value
stocks, most investors agree on some general criteria that defines
these two terms.
When it comes to actually labeling individual stocks as either value or
growth, there can be some disagreement for those companies near the
edge of either definition.

Growth and value aren’t the only two methods of investing, but they
are a way investors make a cut at stocks for investing purposes.
Historically, there have been periods such as the late 1990s when
growth stocks have done well and other periods when value stocks
outperformed. Your best bet is to hold both for true diversification.

The idea of growth investing is to focus on a stock that is growing with

potential for continued growth while value investing seeks stocks that
the market has under priced and have the potential for an increase
when the market corrects the price.

Growth Defined
Growth stocks have some common characteristics, although individual
investors may tweak the numbers for their own purposes. Here are
some of the indicators:
Strong growth rate – both historic and projected forward. Historically,
you want to see smaller companies with a 10%+ growth rate for the
past five years and larger companies with 5% - 7%. You might want
these same rates and more for projected five-year growth rates. Big
companies will not grow as fast (normally) as small companies, so you
need to make some accommodation.
 • Strong Return on Equity. How does the company’s return on
equity (ROE) compare with the industry and its five-year
average?
• What about earnings per share (EPS)? Especially look at pre-tax
profit margins. Is the company translating sales into earnings? Is
management controlling costs? Pre-tax margins should exceed
the past five-year average and the industry average.
• What is the projected stock price? Can this stock double in price
in five years? Analysts make these projections based on the
business model and market position of the company.

If the stock meets or roughly meets these criteria, you are probably
looking at a growth stock. However, you need to use some judgment
and common sense.

A stock may not meet all of the criteria above, but could still be a
growth stock. For example, it may not have the operating history for a
five-year look, but occupy a significant place in a rapidly growing new
industry.

Value Stocks
Value stocks are not cheap stocks, although one of the places you can
look for candidates is on the list of stocks that have hit 52-week lows.

Investors like to think of value stocks as bargains. The market has

under valued the stock for a variety of reasons and the investor hopes
to get in before the market corrects the price.
Here are some characteristics of a value stock:
 • The price earnings ratio (P/E) should be in the bottom 10% of all
companies.
• A price to earning growth ration (PEG) should be less than 1,
which indicates the company is undervalued.
• There should be at least as much equity as debt.
• Current assets at twice current liabilities.
• Share price at tangible book value or less.
Some investors use more criteria, but these will get you started in
identifying value stocks.

A truly diversified portfolio has both value and growth stocks. If you
find only one kind in your holdings, consider the benefits of
diversification. If you are just starting out, plan your investments with a
good mix of value and growth stocks.

P/E ratios of the companies enlisted with CSE:

EPS as Per Updated P/E Ratio

Financial EPS Based P/E Ratio
Un-Audited Based on
Scrip Year Annualized on Last Close Based on
Company Name Accounts Last
Code EPS Audited Price Annualized
Quart. Half Quart. Audited
From To Accounts EPS
1 Year 3 Accounts
ABBNK AB BANK LIMITED Jan Dec 0.00 70.39 0.00 140.78 106.61 1218.50 8.66 11.43
ADVANCED CHEMICAL
ACI Jan Dec 0.00 2.34 0.00 4.68 28.48 393.20 84.02 13.81
INDUSTRIES
ACI FORMULATIONS
ACIFL Jan Dec 0.00 1.55 0.00 3.10 5.30 167.90 54.16 31.68
LIMITED
AFTAB AUTOMOBILES
AFAUT Sep Aug 0.00 0.00 10.41 13.88 7.22 577.10 41.58 79.93
LIMITED
AGNI AGNI SYSTEMS LIMITED Jul Jun 0.00 0.00 1.18 1.57 1.45 75.20 47.90 51.86
AL-ARAFAH ISLAMI
AIBL Jan Dec 0.00 3.40 0.00 6.80 3.67 103.70 15.25 28.26
BANK LTD.
ALLTEX INDUSTRIES
ALTEX Jul Jun 0.00 0.00 -15.27 -20.36 -12.20 154.50 N/A N/A
LIMITED
AMBEE
AMBPH PHARMACEUTICALS Jan Dec 0.00 0.86 0.00 1.72 3.45 334.30 194.36 96.90
LIMITED
AGRICULTURAL
AMCL Jul Jun 0.00 0.00 39.74 52.99 49.96 1900.25 35.86 38.04
MARKETING CO LTD
ANGAL ANWAR GALVANIZING Jul Jun 0.00 0.00 -2.23 -2.97 -7.20 480.00 N/A N/A
 LIMITED
ANLYMA YARN DYEING
ANLYN Jul Jun 0.00 0.00 0.61 0.81 0.48 221.25 273.15 460.94
LIMITED
ASIA PACIFIC GEN INS
APGI Jan Dec 0.00 7.42 0.00 14.84 8.37 590.50 39.79 70.55
CO LTD
APXFD APEX FOODS LIMITED Jul Jun 0.00 0.00 0.00 0.00 15.01 1064.75 0.00 70.94
APEX ADELCHI
APXFW Jan Dec 0.00 44.85 0.00 89.70 188.03 2900.00 32.33 15.42
FOOTWEAR LIMITED
APEX SPINNING &
APXSP Apr Mar 4.52 0.00 0.00 18.08 15.62 842.00 46.57 53.91
KNITTING MILLS
APEX TANNERY
APXTN Jul Jun 0.00 0.00 0.00 0.00 93.74 1674.00 0.00 17.86
LIMITED
APEX WEAVING &
APXWV Jul Jun 0.00 0.00 -42.38 -56.51 -51.13 166.75 N/A N/A
FINISHING MILLS
ARAMIT CEMENT
ARACM Jan Dec 0.00 25.13 0.00 50.26 43.35 1527.50 30.39 35.24
LIMITED
ARMIT ARAMIT LIMITED Jan Dec 0.00 7.77 0.00 15.54 13.80 571.50 36.78 41.41
ASIA INSURANCE
ASIAI Jan Dec 0.00 17.02 0.00 34.04 21.92 936.50 27.51 42.72
LIMITED
ALPHA TOBACCO MFG.
ATMC Oct Sep 0.00 0.00 0.00 0.00 -56.09 26.40 0.00 -0.47
CO. LTD
AZPIP AZIZ PIPES LIMITED Jan Dec 0.00 5.20 0.00 10.40 6.20 490.00 47.12 79.03
BANGS BANGAS LIMITED Jul Jun 0.00 0.00 19.69 26.25 17.02 2060.00 78.48 121.03
BASIA BANK ASIA LIMITED Jan Dec 0.00 34.85 0.00 69.70 44.20 632.50 9.07 14.31
BATA SHOE COMPANY
BATA Jan Dec 0.00 14.27 0.00 28.54 32.85 764.00 26.77 23.26
(BD) LIMITED
BRITISH AMERICAN
BATBC Jan Dec 0.00 25.71 0.00 51.42 34.48 679.10 13.21 19.70
TOBACCO BD CO
BAY LEASING &
BAYLI Jan Dec 0.00 20.62 0.00 41.24 25.59 1680.50 40.75 65.67
INVESTMENT LTD.
BANGLADESH
BDAUT Jul Jun 0.00 0.00 3.22 4.29 6.17 376.00 87.65 60.94
AUTOCARS LIMITED
BDCOM ONLINE
BDCOM Jul Jun 0.00 0.00 1.12 1.49 0.86 62.30 41.81 72.44
LIMITED
BD FINANCE &
BDFIN Jan Dec 0.00 25.33 0.00 50.66 21.93 1308.50 25.83 59.67
INVESTMENT CO LTD
BANGLADESH LAMPS
BDLMP Jan Dec 0.00 32.12 0.00 64.24 81.17 2800.00 43.59 34.50
LIMITED
BD.THAI ALUMINIUM
BDTHI Jan Dec 0.00 13.73 0.00 27.46 21.16 1055.00 38.42 49.86
LIMITED
BEACON
BEACON PHARMACEUTICALS Jul Jun 0.00 0.00 0.09 0.12 0.08 85.70 714.17 1071.25
LTD.
BERGER PAINTS
BERGR Jan Dec 0.00 17.77 0.00 35.54 25.00 1000.00 28.14 40.00
BANGLADESH LTD
BD GENERAL
BGIC Jan Dec 0.00 8.99 0.00 17.98 9.25 675.50 37.57 73.03
INSURANCE COMPANY
BHL BEACH HATCHERY LTD. Jan Dec 0.00 2.03 0.00 4.06 1.53 90.20 22.22 58.95
BD INDUSTRIAL
BIFC Jan Dec 0.00 13.38 0.00 26.76 28.03 855.00 31.95 30.50
FINANCE CO. LTD
BOC BOC BANGLADESH Jan Dec 0.00 21.79 0.00 43.58 40.08 734.30 16.85 18.32
 LIMITED
BRACB BRAC BANK LIMITED Jan Dec 0.00 30.82 0.00 61.64 51.30 731.00 11.86 14.25
BD SHIPPING
BSC Jul Jun 0.00 0.00 -92.28 -123.04 -51.30 3613.75 N/A N/A
CORPORATION LTD
BSRMS BSRM STEELS LIMITED Jan Dec 0.00 32.98 0.00 65.96 34.43 2279.75 34.56 66.21
BD WELDING
BWEL Jan Dec 0.00 0.89 0.00 1.78 1.01 161.50 90.73 159.90
ELECTRODES LIMITED
BXLTD BEXIMCO LIMITED Jan Dec 0.00 21.25 0.00 42.50 19.39 322.60 7.59 16.64
BEXIMCO
BXPH PHARMACEUTICALS Jan Dec 0.00 2.52 0.00 5.04 2.98 149.50 29.66 50.17
LTD
BEXIMCO SYNTHETICS
BXSYN Jan Dec 0.00 1.07 0.00 2.14 1.96 388.75 181.66 198.34
LIMITED
BXTX BEXTEX LIMITED Jan Dec 0.00 2.02 0.00 4.04 2.00 83.60 20.69 41.80
CITY GENERAL
CGIC Jan Dec 0.00 11.37 0.00 22.74 13.56 875.25 38.49 64.55
INSURANCE CO. LTD
CENTRAL INSURANCE
CIC Jan Dec 0.00 17.33 0.00 34.66 22.51 774.00 22.33 34.38
COMPANY LTD
CONFIDENCE CEMENT
CNFCM Jan Dec 0.00 39.42 0.00 78.84 43.98 2021.75 25.64 45.97
LIMITED
CONTINENTAL
CONTI Jan Dec 0.00 11.40 0.00 22.80 16.54 623.25 27.34 37.68
INSURANCE LIMITED
THE CITY BANK
CTBNK Jan Dec 0.00 18.61 0.00 37.22 20.84 742.00 19.94 35.60
LIMITED
CTG VEGETABLE OIL
CVOIL Jul Jun 0.00 0.00 -1.31 -1.75 -24.38 1354.25 N/A N/A
INDS LTD
DELTA BRAC HOUSING
DBH Jul Jun 0.00 0.00 53.00 70.67 57.94 2618.25 37.05 45.19
FIN. CORP.
DAFFODIL COMPUTERS
DCL Jul Jun 0.00 0.00 0.32 0.43 0.31 45.10 104.88 145.48
LIMITED
THE DACCA DYEING &
DDMFG Jul Jun 0.00 0.00 0.39 0.52 0.65 67.10 129.04 103.23
MFG CO LTD
DELTA LIFE INSURANCE
DELI Jan Dec 0.00 0.00 0.00 0.00 0.00 24105.80 0.00 0.00
COMPANY
DHAKA ELECTRIC
DESCO Jul Jun 0.00 0.00 66.11 88.15 100.35 2732.00 30.99 27.22
SUPPLY CO. LTD.
DHAKA INSURANCE
DHAKI Jan Dec 0.00 14.38 0.00 28.76 57.57 1105.00 38.42 19.19
LTD.
DHBNK DHAKA BANK LIMITED Jan Dec 0.00 3.01 0.00 6.02 3.61 55.00 9.14 15.24
DHFSH DHAKA FISHERIES LTD Jul Jun 0.00 0.00 -25.90 -34.53 -24.16 330.00 N/A N/A
DELTA SPINNERS
DLSP Jul Jun 0.00 0.00 6.34 8.45 8.37 640.00 75.74 76.46
LIMITED
DUTCH-BANGLA BANK
DUBBL Jan Dec 0.00 53.50 0.00 107.00 56.89 1851.75 17.31 32.55
LIMITED
DULAMIA COTTON
DUCOT Jul Jun 0.00 0.00 -24.73 -32.97 -39.19 101.50 N/A N/A
SPINNING MILLS
EASTERN INSURANCE
EASTI Jan Dec 0.00 21.02 0.00 42.04 24.24 1420.00 33.78 58.58
COMPANY LTD
EASTERN BANK
EBL Jan Dec 0.00 3.62 0.00 7.24 4.98 69.70 9.63 14.00
LIMITED
EHL EASTERN HOUSING Aug Jul 0.00 0.00 8.91 11.88 18.28 1680.50 141.46 91.93
 LIMITED
EASTLAND INSURANCE
ELNDI Jan Dec 0.00 23.57 0.00 47.14 32.20 1100.00 23.33 34.16
COMPANY LTD
EASTERN CABLES
ESTCB Jul Jun 0.00 0.00 0.91 1.21 0.78 732.50 605.37 939.10
LIMITED
EXPORT IMPORT BANK
EXIMB Jan Dec 0.00 1.83 0.00 3.66 3.70 70.60 19.29 19.08
OF BD LTD
FIDELITY ASSETS & SEC.
FAS Jan Dec 0.00 12.87 0.00 25.74 19.05 815.50 31.68 42.81
CO. LTD
FEDERAL INSURANCE
FEDI Jan Dec 0.00 0.78 0.00 1.56 1.16 130.80 83.85 112.76
COMPANY LTD
FAREAST ISLAMI LIFE
FILIC Jan Dec 0.00 0.00 0.00 0.00 0.00 385.30 0.00 0.00
INSURANCE
FINFD FINE FOODS LIMITED Jul Jun 0.00 0.00 1.75 2.33 0.84 109.80 47.12 130.71
FIRST LEASE FIN & INV.
FLIL Jan Dec 0.00 17.58 0.00 35.16 25.88 1158.25 32.94 44.75
LTD.
FIRST SECURITY ISLAMI
FSBNK Jan Dec 0.00 9.76 0.00 19.52 12.91 326.50 16.73 25.29
BANK LTD
FU-WANG CERAMIC
FWCR Jul Jun 0.00 0.00 5.63 7.51 0.77 430.50 57.32 559.09
INDUSTRY LTD
FU-WANG FOODS
FWFD Jul Jun 0.00 0.00 0.97 1.29 1.07 72.50 56.20 67.76
LIMITED
GREEN DELTA
GDI Jan Dec 0.00 46.78 0.00 93.56 56.99 1942.00 20.76 34.08
INSURANCE COMPANY
GRAMEENPHONE
GP Jan Dec 0.00 3.58 0.00 7.16 12.08 248.60 34.72 20.58
LIMITED
GQ BALL PEN
GQBAL Jan Dec 0.00 3.31 0.00 6.62 9.55 254.10 38.38 26.61
INDUSTRIES LIMITED
GSON GOLDEN SON LIMITED Jan Dec 0.00 2.01 0.00 4.02 0.96 104.10 25.90 108.44
GULFD GULF FOODS LIMITED Jul Jun 0.00 0.00 -7.78 -10.37 -3.01 169.00 N/A N/A
HEIDELBERG CEMENT
HBCM Jan Dec 0.00 106.40 0.00 212.80 150.59 3408.50 16.02 22.63
BANGLADESH L
HAKKANI PULP & PAPER
HPPML Jul Jun 0.00 0.00 0.26 0.35 1.65 68.00 194.29 41.21
MILLS LTD
H.R.TEXTILE MILLS
HRTEX Oct Sep 0.00 0.00 7.51 10.01 12.54 500.00 49.95 39.87
LIMITED
THE IBN SINA
IBNSN Jan Dec 0.00 19.18 0.00 38.36 45.59 1440.00 37.54 31.59
PHARMACEUTICALS
INVESTMENT CORP OF
ICB Jul Jun 0.00 0.00 0.00 0.00 106.52 4950.00 0.00 46.47
BANGLADESH
IDLC IDLC FINANCE LIMITED Jan Dec 0.00 122.66 0.00 245.32 136.98 4196.75 17.11 30.64
INTL FINANCE INV &
IFIC Jan Dec 0.00 26.32 0.00 52.64 41.27 1114.75 21.18 27.01
COMM BANK
ISLAMI INSURANCE
IINSB Jan Dec 0.00 6.01 0.00 12.02 7.36 469.25 39.04 63.76
BANGLADESH LTD
INT'L LEASING &
ILFSL Jan Dec 0.00 44.58 0.00 89.16 40.28 1892.25 21.22 46.98
FINANCIAL SERV
IMAM BUTTON
IMBUT Jul Jun 0.00 0.00 -8.17 -10.89 3.16 368.50 N/A 116.61
INDUSTRIES LTD
INTECH ONLINE
IOL Jan Dec 0.00 0.27 0.00 0.54 0.36 42.30 78.33 117.50
LIMITED
 IPDC OF BANGLADESH
IPDC Jan Dec 0.00 2.28 0.00 4.56 12.84 538.25 118.04 41.92
LIMITED
ISLAMI BANK
ISBNK Jan Dec 0.00 36.53 0.00 73.06 45.91 576.25 7.89 12.55
BANGLADESH LIMITED
ISLAMIC
ISFIL FINANCE&INVESTMENT Jan Dec 0.00 8.55 0.00 17.10 23.70 703.00 41.11 29.66
LTD
INFORMATION
ISN Jan Dec 0.00 0.45 0.00 0.90 1.07 46.90 52.11 43.83
SERVICES NETWORK L
JAGO CORPORATION
JAGO Jan Dec 0.00 -24.99 0.00 -49.98 -1.57 45.75 N/A N/A
LIMITED
JANATA INSURANCE
JANI Jan Dec 0.00 10.53 0.00 21.06 11.13 1382.50 65.65 124.21
COMPANY LTD
JMI-BANGLA COMPANY
JBCL Jan Dec 0.00 7.53 0.00 15.06 15.82 317.50 21.08 20.07
LIMITED
JMBNK JAMUNA BANK LIMITED Jan Dec 0.00 1.81 0.00 3.62 4.14 59.30 16.38 14.32
JAMUNA OIL COMPANY
JMOIL Jul Jun 0.00 5.74 0.00 11.48 9.32 420.80 36.66 45.15
LIMITED
KAY & QUE
K&Q Jan Dec 0.00 -0.31 0.00 -0.62 2.53 440.00 N/A 173.91
(BANGLADESH) LTD
KEYA DETERGENT
KDGNT Jul Jun 0.00 0.00 2.69 3.59 2.40 116.30 32.40 48.46
LIMITED
KEYA COSMETICS
KECOS Jul Jun 0.00 0.00 4.98 6.64 3.01 135.10 20.35 44.88
LIMITED
KOHINOOR CHEMICAL
KOHCH Jul Jun 0.00 41.52 0.00 83.04 76.69 3100.00 37.33 40.42
CO (BD) LTD
KHULNA POWER
KPCL Jan Dec 0.00 1.31 0.00 2.62 2.43 140.10 53.47 57.65
COMPANY LIMITED
LIBRA INFUSIONS
LBINF Jul Jun 0.00 0.00 28.95 38.60 34.93 2608.25 67.57 74.67
LIMITED
LEGACY FOOTWEAR
LFL Jan Dec 0.00 0.69 0.00 1.38 0.73 56.00 40.58 76.71
LIMITED
LANKABANGLA
LNKBF Jan Dec 0.00 15.62 0.00 31.24 14.00 510.90 16.35 36.49
FINANCE LIMITED
LAFARGE SURMA
LSCM Jan Dec 0.00 4.06 0.00 8.12 10.04 718.50 88.49 71.56
CEMENT LIMITED
MAKSONS SPINNING
MAKSP Oct Sep 0.00 0.00 1.44 1.92 0.48 72.60 37.81 151.25
MILLS LIMITED
MALEK SPINNING MILLS
MALSP Jul Jun 0.00 0.00 0.96 1.28 1.15 88.80 69.38 77.22
LTD.
MERCANTILE BANK
MCBNK Jan Dec 0.00 12.82 0.00 25.64 30.67 386.00 15.05 12.59
LIMITED
METRO SPINNING
METSP Jul Jun 0.00 0.00 3.07 4.09 0.75 94.10 23.01 125.47
LIMITED
MIDAS FINANCING
MFL Jul Jun 0.00 0.00 0.00 0.00 42.34 1900.00 0.00 44.87
LIMITED
MEGHNA CEMENT
MGHCM Jan Dec 0.00 4.90 0.00 9.80 5.87 2809.25 286.66 478.58
MILLS LIMITED
MERCANTILE
MIC Jan Dec 0.00 14.05 0.00 28.10 16.41 827.25 29.44 50.41
INSURANCE CO.LTD.
MIRACLE INDUSTRIES
MIRCL Jul Jun 0.00 0.00 -0.69 -0.92 -0.69 47.10 N/A N/A
LIMITED
 MITHUN KNITTING AND
MITHN Jul Jun 0.00 0.00 12.28 16.37 17.79 663.00 40.50 37.27
DYEING
MEGHNA LIFE
MLI Jan Dec 0.00 0.00 0.00 0.00 0.00 3231.00 0.00 0.00
INSURANCE CO.LTD.
MONNO CERAMIC
MNCR Jul Jun 0.00 0.00 0.90 1.20 0.76 610.25 508.54 802.96
INDUSTRIES LTD
MONNO FABRICS
MNFAB Jan Dec 0.00 -13.66 0.00 -27.32 -19.55 124.25 N/A N/A
LIMITED
MEGHNA PETROLEUM
MPL Jul Jun 0.00 4.30 0.00 8.60 8.24 263.40 30.63 31.97
LIMITED
MARICO BANGLADESH
MRICO Oct Sep 0.00 0.00 12.96 17.28 14.95 670.00 38.77 44.82
LIMITED
MUTUAL TRUST BANK
MTBNK Jan Dec 0.00 22.38 0.00 44.76 38.72 461.00 10.30 11.91
LIMITED
NATIONAL LIFE
NALI Jan Dec 0.00 0.00 0.00 0.00 0.00 7218.25 0.00 0.00
INSURANCE CO.LTD
NATIONAL BANK
NBL Jan Dec 0.00 48.87 0.00 97.74 47.19 809.75 8.28 17.16
LIMITED
NCCBL N C C BANK LIMITED Jan Dec 0.00 24.29 0.00 48.58 38.20 456.50 9.40 11.95
NORTHERN GENERAL
NGIC Jan Dec 0.00 11.09 0.00 22.18 11.59 630.00 28.40 54.36
INSURANCE CO.
NATIONAL HOUSING
NHFIL Jan Dec 0.00 15.39 0.00 30.78 20.21 1058.00 34.37 52.35
FIN.&INV. LTD
NILOY CEMENT
NILCM Jul Jun 0.00 0.00 1.38 1.84 0.18 340.75 185.19 1893.06
INDUSTRIES LTD
NITOL INSURANCE
NITI Jan Dec 0.00 14.26 0.00 28.52 24.66 680.00 23.84 27.58
COMPANY LTD
NATIONAL POLYMER
NPOLY Jul Jun 0.00 0.00 16.60 22.13 31.24 1065.75 48.16 34.11
IND LTD
NATIONAL TEA
NTC Jan Dec 0.00 -13.31 0.00 -26.62 156.78 3775.00 N/A 24.08
COMPANY LIMITED
NVCNG NAVANA CNG LIMITED Apr Mar 1.69 0.00 0.00 6.76 6.68 223.10 33.00 33.40
OBL ONE BANK LIMITED Jan Dec 0.00 50.60 0.00 101.20 35.32 709.00 7.01 20.07
OCEAN CONTAINERS
OCL Jan Dec 0.00 1.46 0.00 2.92 3.39 156.00 53.42 46.02
LTD.
OLYMPIC INDUSTRIES
OLIND Jul Jun 0.00 0.00 49.78 66.37 55.48 2600.00 39.17 46.86
LIMITED
ORION INFUSION
ORINF Jul Jun 0.00 0.00 11.08 14.77 12.87 746.00 50.51 57.96
LIMITED
PADMA CEMENT
PADCM Oct Sep 0.00 0.00 -1.25 -1.67 -1.46 25.20 N/A N/A
LIMITED
PADMA OIL COMPANY
PDOIL Jul Jun 0.00 0.00 10.02 13.36 46.07 999.60 74.82 21.70
LIMITED
PEOPLES INSURANCE
PEOPI Jan Dec 0.00 5.93 0.00 11.86 15.08 699.75 59.00 46.40
COMPANY LTD
PRIME FINANCE &
PFIL Jan Dec 0.00 1.12 0.00 2.24 7.57 404.40 180.54 53.42
INVESTMENT LTD
POWER GRID COMPANY
PGCB Jul Jun 0.00 0.00 29.33 39.11 42.39 1035.50 26.48 24.43
OF BD LTD.
PHOENIX FINANCE &
PHFIN Jan Dec 0.00 24.74 0.00 49.48 28.40 1499.50 30.31 52.80
INVESTMENTS
PHOI PHOENIX INSURANCE Jan Dec 5.19 0.00 0.00 20.76 24.83 759.75 36.60 30.60
 COMPANY LTD
PRIME INSURANCE
PICL Jan Dec 0.00 17.70 0.00 35.40 23.90 707.25 19.98 29.59
COMPANY LTD
PIONEER INSURANCE
PINS Jan Dec 0.00 30.44 0.00 60.88 43.36 1200.00 19.71 27.68
COMPANY LTD
PEOPLE'S LEASING &
PLFSL Jan Dec 0.00 4.02 0.00 8.04 3.56 172.70 21.48 48.51
FIN'L SERV.
PRAGATI LIFE
PLI Jan Dec 0.00 0.00 0.00 0.00 0.00 3260.00 0.00 0.00
INSURANCE LTD.
POPULAR LIFE
PLICL Jan Dec 0.00 0.00 0.00 0.00 0.00 5204.00 0.00 0.00
INSURANCE CO.LTD.
PMBNK PRIME BANK LIMITED Jan Dec 0.00 26.02 0.00 52.04 48.88 577.75 11.10 11.82
PRIME ISLAMI LIFE
PMILI Jan Dec 0.00 0.00 0.00 0.00 0.00 3230.25 0.00 0.00
INSURANCE
PARAMOUNT
PMNTI Jan Dec 0.00 5.52 0.00 11.04 11.01 435.00 39.40 39.51
INSURANCE CO. LTD
PRAGATI INSURANCE
PRAGI Jan Dec 0.00 16.67 0.00 33.34 26.12 1575.75 47.26 60.33
LIMITED
PREMIER LEASING &
PRLSG Jan Dec 0.00 10.05 0.00 20.10 16.98 715.00 35.57 42.11
FINANCE LTD
THE PREMIER BANK
PRMRB Jan Dec 0.00 1.63 0.00 3.26 3.73 50.80 15.58 13.62
LIMITED
PROGRESSIVE LIFE INS.
PROLI Jan Dec 0.00 0.00 0.00 0.00 0.00 2450.00 0.00 0.00
CO. LTD
PRIME TEXTILE
PRTEX Jul Jun 0.00 0.00 13.04 17.39 10.59 622.50 35.80 58.78
SPINNING MILLS
PROVATI INSURANCE
PRVTI Jan Dec 0.00 7.50 0.00 15.00 10.33 486.25 32.42 47.07
CO. LTD.
PUBNK PUBALI BANK LIMITED Jan Dec 0.00 34.37 0.00 68.74 42.11 710.50 10.34 16.87
QUASEM DRYCELLS
QUSDR Jul Jun 0.00 0.00 1.39 1.85 1.34 76.70 41.46 57.24
LIMITED
RAHIMA FOOD
RAHFD Jul Jun 0.00 0.00 4.16 5.55 3.03 585.00 105.41 193.07
CORPORATION LTD
R.A.K. CERAMICS
RAKCR Jan Dec 0.00 1.53 0.00 3.06 1.42 207.20 67.71 145.92
(BANGLADESH) LTD.
RECKITT BENCKISER
RECKT Jan Dec 0.00 17.36 0.00 34.72 41.90 1110.00 31.97 26.49
(BD) LIMITED
RELIANCE INSURANCE
RELI Jan Dec 0.00 32.69 0.00 65.38 39.36 1410.00 21.57 35.82
LTD
REPUBLIC INSURANCE
REPIC Jan Dec 0.00 12.31 0.00 24.62 14.88 561.00 22.79 37.70
COMPANY LTD
R.N SPINNING MILLS
RNSP Jan Dec 0.00 1.91 0.00 3.82 1.12 76.70 20.08 68.48
LTD.
RANGPUR FOUNDRY
RPFDL Jan Dec 0.00 1.76 0.00 3.52 2.19 140.10 39.80 63.97
LTD
RUBNK RUPALI BANK LIMITED Jan Dec 0.00 64.84 0.00 129.68 133.48 1680.00 12.95 12.59
RUPALI LIFE
RULIC Jan Dec 0.00 0.00 0.00 0.00 0.00 2420.00 0.00 0.00
INSURANCE CO. LTD.
RUPALI INSURANCE
RUPI Jan Dec 0.00 19.02 0.00 38.04 24.50 1080.00 28.39 44.08
COMPANY LTD
S. ALAM COLD ROLLED
SACRS Oct Sep 0.00 0.00 10.67 14.23 13.03 833.25 58.56 63.95
STEELS LTD
 SAFKO SPINNING MILLS
SAFKO Jan Dec 0.00 -9.80 0.00 -19.60 -29.83 260.00 N/A N/A
LTD
SANDHANI LIFE
SALI Jan Dec 0.00 0.00 0.00 0.00 0.00 3412.25 0.00 0.00
INSURANCE CO.LTD
SINOBANGLA
SBIL Nov Oct 0.00 0.00 0.60 0.80 0.56 55.80 69.75 99.64
INDUSTRIES LIMITED
SONAR BANGLA
SBINS Jan Dec 0.00 8.48 0.00 16.96 10.58 452.75 26.70 42.79
INSURANCE LTD.
STANDARD BANK
SBL Jan Dec 0.00 21.71 0.00 43.42 24.09 394.00 9.07 16.36
LIMITED
SOUTHEAST BANK
SEBNK Jan Dec 0.00 10.06 0.00 20.12 26.98 380.50 18.91 14.10
LIMITED
SONARGAON TEXTILES
SGTEX Jan Dec 0.00 8.96 0.00 17.92 9.51 605.00 33.76 63.62
LIMITED
SOCIAL ISLAMI BANK
SIBNK Jan Dec 0.00 0.52 0.00 1.04 1.44 35.20 33.85 24.44
LIMITED
SAIHAM TEXTILE MILLS
SIHAM Jul Jun 0.00 0.00 8.30 11.07 11.52 913.50 82.52 79.30
LTD
SINGER BANGLADESH
SINGR Jan Dec 0.00 90.83 0.00 181.66 176.83 7626.50 41.98 43.13
LIMITED
SHAHJALAL ISLAMI
SJIB Jan Dec 0.00 26.11 0.00 52.22 31.26 465.75 8.92 14.90
BANK LTD.
SAMATA LEATHER
SLCL Jul Jun 0.00 0.00 -2.68 -3.57 -2.13 236.75 N/A N/A
COMPLEX LTD
SAMORITA HOSPITAL
SMHOS Jul Jun 0.00 0.00 28.42 37.89 27.30 1270.00 33.52 46.52
LIMITED
SUMMIT POWER
SMTP Jan Dec 0.00 1.85 0.00 3.70 2.31 142.60 38.54 61.73
LIMITED
SHINEPUKUR CERAMICS
SPCER Jan Dec 0.00 1.36 0.00 2.72 1.78 76.70 28.20 43.09
LIMITED
SUMMIT ALLIANCE
SPORT Jan Dec 0.00 11.53 0.00 23.06 3.67 242.00 10.49 65.94
PORT LIMITED
SQUARE
SQPH PHARMACEUTICALS Apr Mar 36.81 0.00 0.00 147.24 106.43 3073.00 20.87 28.87
LIMITED
SQUARE TEXTILES
SQTEX Jan Dec 0.00 4.05 0.00 8.10 4.35 210.30 25.96 48.34
LIMITED
STANDARD CERAMIC
STDCR Jul Jun 0.00 0.00 6.34 8.45 -4.88 366.75 43.40 N/A
INDS LIMITED
STANDARD INSURANCE
STDI Jan Dec 0.00 7.14 0.00 14.28 13.36 461.00 32.28 34.51
LIMITED
TAKAFUL ISLAMI
TAKII Jan Dec 0.00 16.66 0.00 33.32 22.00 758.00 22.75 34.45
INSURANCE LTD.
TALLU SPINNING MILLS
TALLU Jul Jun 0.00 0.00 -2.43 -3.24 -10.89 216.00 N/A N/A
LIMITED
THERAPEUTICS
TBL Jan Dec 0.00 -2.31 0.00 -4.62 -5.60 475.00 N/A N/A
(BANGLADESH) LTD
TITAS GAS TRANS.&
TGAS Jul Jun 0.00 0.00 53.50 71.33 63.67 1088.00 15.25 17.09
DIST. CO LTD
TRSTB TRUST BANK LIMITED Jan Dec 0.00 29.67 0.00 59.34 27.55 524.25 8.83 19.03
UBL UTTARA BANK LIMITED Jan Dec 0.00 33.13 0.00 66.26 46.13 1090.25 16.45 23.63
UCAP UNION CAPITAL Jan Dec 0.00 3.12 0.00 6.24 2.97 160.20 25.67 53.94
 LIMITED
UNITED COMMERCIAL
UCBL Jan Dec 0.00 28.45 0.00 56.90 32.06 1328.50 23.35 41.44
BANK LTD.
UTTARA FINANCE&
UFIL Jan Dec 0.00 9.41 0.00 18.82 12.51 384.90 20.45 30.77
INVESTMENT LTD
USMANIA GLASS SHEET
UGLAS Jul Jun 0.00 0.00 18.62 24.83 88.01 2255.00 90.82 25.62
FAC LTD
UNITED AIRWAYS (BD)
UTDAIR Jul Jun 0.00 0.00 1.41 1.88 2.21 444.00 236.17 200.90
LTD.
As on 16-Sep-2010

From above chart, we can see the P/E ratios of all the companies for
last one year.

In the above chart, we can see that P/E ratios of most of the banks,
insurance and leasing companies are below 30. And P/E ratios of most
of the manufacturing companies, textile, utility and power sector are
more than 30 in average.