Market Cap to GDP ratio continues to be favorable at 24%
Despite the stellar returns this yr, one can anticipate respectable returns in equities in Bangladesh ~ 20% in native foreign money, comparatively talking. Top shopper manufacturers supply 30% – 50% ROE with nice money movement, statistically low cost multiples.
Low crude will hold the BDT/USD foreign money equation secure (largest elephant in rising market investing). Large immigrant inhabitants and remittance, an added bonus.
Market is steadily turning into a various one with 547 listed corporations — 17 new IPO in 2014, more likely to appeal to overseas funding.
Banking might rebound this yr, largest weight which didn’t carry out in 2014,
Biggest 5 giant caps didn’t fail to compound
IPOs not for buyers (solely merchants)
Dhaka inventory trade additionally launched new buying and selling software program on trade on 11th of December 2014 in collaboration with NASDAQ OMX, launched T+2 ( as an alternative of T+three) decreasing the cycle.
Corporate profitability to extend in 2015 on again of low inflation, improve Govt. worker salaries, low oil enter worth. The nation is a fertile floor for multibagger alternatives.
Disclosure: Invested in shares mentioned. Views are private notions and don’t symbolize any organisation or firm. I’m not an funding adviser. Investment in inventory market can (and lots of a occasions do) end result in lack of principal capital.
SOURCE: Long Term Equities – Read whole story here.