In a surprising development in Bangladesh’s capital markets, the Chattogram Stock Exchange (CSE) has reported a higher market capitalization than the Dhaka Stock Exchange (DSE), despite having fewer listed companies. As of August 2025, the CSE’s market cap stood at Tk 7,325 billion, surpassing the DSE’s Tk 7,146 billion, even though the DSE lists 370 companies compared to the CSE’s 331. This anomaly has raised questions among market analysts and investors. One possible explanation is that the CSE includes securities from its Alternative Trading Board (ATB) and Small and Medium Enterprises (SME) board in its market cap calculations, whereas the DSE calculates market capitalization for its main board separately from these boards. This difference in calculation methods could account for the disparity in reported market caps. Even though the CSE’s total value is bigger, it doesn’t actually have more companies with very high stock prices than the DSE. For instance, the stock price of Square Pharmaceuticals was slightly higher on the CSE than on the DSE, but the difference was minimal. Similarly, other blue-chip stocks like Marico Bangladesh and Beximco Pharmaceuticals showed negligible price variations between the two exchanges. The discrepancy in market capitalization figures has implications for investors and policymakers. Analysts suggest that market caps should be calculated and displayed separately for each board to provide a clearer picture of the market’s structure. Md. Ashequr Rahman, Managing Director of Midway Securities, emphasized the importance of transparency in market cap reporting. Furthermore, the inclusion of debt securities in market cap calculations significantly impacts the DSE’s reported market value. Without accounting for debt securities, the DSE’s market cap would be reduced to Tk 3,692 billion, highlighting the substantial role of debt instruments in the exchange’s overall valuation. The situation underscores the need for standardized practices in calculating and reporting market capitalization across different boards and exchanges. Such standardization would enhance comparability and provide investors with more accurate information to make informed decisions. In conclusion, while the Chattogram bourse’s higher market capitalization may initially appear impressive, it is essential to consider the methodologies behind these figures. A more nuanced understanding reveals that the apparent superiority of the CSE’s market cap is influenced by differences in calculation methods and the inclusion of various securities. Moving forward, adopting consistent and transparent reporting standards will be crucial for the integrity and development of Bangladesh’s capital markets.
