CSE organizes training on “Equity Research”

Chittagong Stock Exchange, the 2nd dynamic bourse of the country has arranged a training program on “Comprehensive Equity Research” today at its premises in Chittagong for the Authorized Representatives, investors and different professions in Chittagong. A total of 50 participants from 30 broker offices attended the training. Mr. AKM Shahroze Alam, Head of Training and Awareness Department inaugurated the training program and said that CSE from its inception has given utmost importance to educate the investors, stock brokers’ officials for the greater interest of Bangladesh Stock Market development. He said that CSE will arrange in 2016 series of training and awareness program across the country to tap its potential. Our responsibility is to educate the investors and ultimately investor has to utilize their analytical cse(1)skill while investing. He requested participants to trade in CSE and use its state of the art trading engine.

Mr. Asif Khan, CFA, an equity analyst of Exotix Partners, a London based boutique investment and a speaker of the training said that experienced professionals working in the capital market can help relate theory with practice with clear and precise examples. They can also clear up any myths regarding investing that are prevalent in the market. The three trainers between them have total experience of close to 20 years.

Another speaker Mr. Shaikh Malik AL – Razi, head of Research of IDLC Investments Limited (IDLCIL) while saying on his topics said that Fundamental Analysis develops expectations about stock prices’ future direction based on rigorous analysis of historical facts and careful construction of assumptions of future performance. This has been considered the starting point and cornerstone of investment analysis for over centuries across all markets in developed and developing countries alike. An understanding of Fundamental Analysis would enable investors to formulate their portfolio on a solid footing.

Mr. Md. Mahfuzur Rahman, Head of Research of LankaBangla Securities Ltd (LBSL), the last speaker of the session said that Bangladesh stock market is quite inefficient and retail investor driven. Most of the investors frequently lose their money due to inadequate knowledge about equity investment. Basic knowledge on equity research will equip them with the understanding of pros and cons in their investment decision making, rather than being associated with speculation.

At the daylong training program the participants have gained knowledge on Quantitative & Qualitative Analysis, Top-Down & Bottom-Up Approach, Economic Analysis, Industry Analysis, Porter’s five forces model, Company Analysis- How companies create value, Financial statement analysis – Top line growth, margin expansion, leverage, working capital management, Operating/Non-Operating Income, Return on Capital vs. Cost of Capital, What is the price of anything?, Does fundamental analysis really work?, 3 types of valuation, Cash flow/Income based, Relative valuation, Asset based, Global commodity price trend -our benefit and cost, Global economy trend and our affiliation, Capital market trend and recent developments, Sector analysis: Opportunities and risk of investment in following sectors, Bank,Non-Bank financial institutions, Pharmaceuticals,Telecom,,FMCG, Cement, Construction materials, Power generation, Power distribution, Fuel distribution, Gas distribution, Textile. Same training will also be organized by the bourse in Dhaka on 27th Feb and in Sylhet on 29th Feb at its conference room.