Zephan BeckIn a remarkable shift, the Dhaka Stock Exchange (DSE) reported a significant 26% rise in stock trades executed via mobile apps in 2024. This surge in mobile app transactions reached a value of Tk21,299 crore, making up 14.33% of the total market turnover. Just a year earlier in 2023, these trades stood at Tk16,848 crore, accounting for 11.94% of the turnover.
The increased reliance on mobile apps for trading came amid a backdrop of political uncertainty and market turbulence. The nation witnessed a tumultuous year marked by a national election, significant political changes, and leadership shifts at the stock market regulatory body. Investors faced challenges as the value of portfolios declined sharply due to market instability.
Throughout 2024, the DSEX, the primary index of the DSE, experienced a decrease of 16.49%, closing the year at 5,216 points. The DS30 and DSE Shariah indices also saw declines of 7.36% and 14.31%, settling at 1,939 and 1,168 points, respectively.
Notably, the number of trading days was reduced, with the market open for 235 days compared to 244 days the previous year. Despite this, total turnover increased by 5.38% to Tk1,48,639 crore.
Interestingly, the number of mobile app users saw a decline of 7%, dropping to 30,433 by the end of 2024. Changes in app usage fees, which were introduced in mid-2023, might have influenced this decline, with a monthly charge of Tk125 imposed from January 2024.
Investors Turn to Mobile Trading Amid Dhaka Stock Exchange Turbulence
The landscape of stock trading in Bangladesh is evolving rapidly, with mobile trading soaring to new heights even amidst a challenging economic and political climate. The Dhaka Stock Exchange (DSE) reported a remarkable 26% uptick in stock trades executed through mobile apps in 2024, reaching a value of Tk21,299 crore. This increase signifies a notable shift in investor preferences towards digital platforms, forming 14.33% of the total market turnover.
Insights into the Rise of Mobile Trading
The significant growth in mobile app trading is taking place against a backdrop of political uncertainty and market turbulence. The year was marked by national elections, substantial political shifts, and changes in the leadership of stock market regulatory bodies. These factors contributed to a volatile market, and investor confidence was tested with a sharp decline in portfolio values.
Market Dynamics and Mobile Apps
Despite the reduction in the number of trading days from 244 to 235, due to the political climate, the total market turnover increased by 5.38%, reaching Tk1,48,639 crore. Mobile trading apps have become a lifeline for investors seeking agility and immediate access to the stock market, indicating a trend towards more tech-savvy trading practices.
Limitations and Fees
An intriguing contrast to the surge in mobile trades is the 7% decline in the number of mobile app users, which dropped to 30,433 by the end of 2024. The introduction of new app usage fees likely contributed to this decline. Starting January 2024, users were required to pay Tk125 monthly, influencing investor decisions regarding app utilization.
Market Downturns and Challenges
The DSE faced a challenging year as reflected in the performance of its indices. The DSEX, the primary index, fell by 16.49% to close the year at 5,216 points. Additionally, the DS30 and the DSE Shariah indices recorded decreases of 7.36% and 14.31%, closing at 1,939 and 1,168 points, respectively.
Predictions and Future Trends
Looking forward, the shift towards mobile trading apps signifies a potential trend towards digital transformation in the stock trading realm. Despite the economic and political challenges, the appetite for mobile trading is likely to continue growing as investors seek more flexible and efficient ways to manage their investments.
Conclusion
As Bangladesh navigates through political and economic changes, investors are increasingly leaning on technology to navigate turbulent market conditions. The rise in mobile app trading highlights a critical trend in the evolution of stock market practices, paving the way for innovations in financial technology.
For more information, you can visit the official websites of the Dhaka Stock Exchange and market analytics platforms researching these emerging trends.
