The Chittagong Stock Exchange (CSE) had the opportunity to play a pivotal role in Bangladesh’s economy as the capital market of the country’s commercial hub. However, it is now steadily losing its position, contributing only 5-6 percent of the country’s total stock market transactions, with an average daily turnover of just BDT 150 million over the past year. This figure ranks among the lowest in the world. It is rare in the world for a stock exchange to have such low trading volumes.
An analysis of the CSE’s performance over the last five fiscal years shows that the exchange’s average daily transaction crossed BDT 500 million only once. In FY 2019–20, the figure stood at BDT 261 million, which rose to BDT 473 million in FY 2020–21 and peaked at BDT 503 million in FY 2021–22. However, the following fiscal years saw a sharp decline: BDT 252 million in FY 2022–23 and BDT 310 million in FY 2023–24. The latest data for FY 2024–25 shows a further drop, with average daily transactions amounting to BDT 170 million.
The World Federation of Exchanges (WFE) acts as an association of stock exchanges and clearing houses worldwide. According to its data, the Colombo Stock Exchange (CSE) in Sri Lanka recorded the lowest daily transaction in the Asia-Pacific region in 2024— $6 million. During the same period, the Dhaka Stock Exchange (DSE) posted an average daily transaction of $54.1 million. Although the WFE database does not include CSE data, the exchange’s FY 2024–25 average of BDT 170 million translates to $1.42 million per day (at an exchange rate of BDT 118.92 per USD). These figures position the CSE at the bottom among Asia-Pacific exchanges. For comparison, Vietnam’s Ho Chi Minh Stock Exchange (HOSE) recorded an average daily turnover of $651 million, while the Pakistan Stock Exchange (PSX) stood at $80.6 million. Even beyond Asia-Pacific, the Tunis Stock Exchange (BVMT) in Africa’s volatile country, Tunisia, also had an average daily turnover of $2.2 million. At the same time, Kenya’s Nairobi Securities Exchange (NSE) saw an average daily transaction of $3.2 million, the Namibian Stock Exchange (NSX) $1.5 million, and the Nigerian Stock Exchange (NSE) $6.2 million.
Major (Retd.) Emdadul Islam, a shareholder director of CSE, told Bonik Barta, “For several reasons, CSE has failed to establish its footing as a competitive exchange. Everything in Bangladesh is centered around the capital, which has left CSE overlooked. Apart from this, Internal conflicts have also hindered its development. In terms of equity and transaction volume, CSE’s situation is dire. I doubt any other exchange has such a low transaction. We even showed interest in merging with the DSE, but they did not respond positively at the time.”
Outlining a few plans to revive the exchange, He added, “We are now trying to pull CSE back from the brink by introducing new products such as derivatives and commodities instead of equity. We have already received approval to launch a commodity exchange, and we expect trading to begin very soon. Through this, we are trying to make a turnaround. You could say that the commodity exchange is now the ray of hope for CSE.”
Two decades ago, the Chittagong Stock Exchange (CSE) accounted for about 15–16 percent of the country’s total market transactions. But over time, its share in daily transactions has continued to decline. As of the end of October 2025, the exchange’s average daily transaction stood at BDT 151 million, while the Dhaka Stock Exchange (DSE) recorded BDT 5.16 billion. This means that CSE currently contributes only around 3 percent of Bangladesh’s total stock market activity. The exchange’s position has now reached such a low point that it faces an existential crisis. In the meantime, some of the stakeholders have suggested having one exchange instead of two, considering the reality of the market. In this case, they have also suggested merging the CSE with the DSE.
The revenue generated from CSE’s core operations is not enough to cover its operating expenses. The exchange largely depends on interest income from Fixed Deposit Receipt (FDR) to sustain its operations. In FY 2024–25, the CSE reported an operating loss of BDT 146 million, compared to BDT 106 million in the previous fiscal year. Despite the operating losses, interest income helped CSE post a net profit of BDT 287 million after tax in FY 2024-25, slightly down from BDT 317 million in the previous fiscal year. The mandatory dual listing requirement imposed by the regulator is the only reason that companies are listed on the CSE. The stakeholders believe that a few companies would have chosen to list on the exchange without this compulsion.
BRAC EPL Stock Brokerage is a member of both stock exchanges. Saiful Islam, director of the organization, told Bonik Barta, “Reviewing the current reality of the market and the limited scope of the business sector, it is worth considering whether maintaining two separate stock exchanges is necessary. The regulator could review the matter, keeping in mind the need for better market discipline.”
CSE began its journey in 1995. The exchange currently has a paid-up capital of over BDT 6.34 billion, with 40 percent of its shares held by existing shareholders. In July 2025, the CSE’s board decided to seek regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) to list 35 percent of its shares on the Dhaka Stock Exchange (DSE). As of September 2025, a total of 331 companies, 37 mutual funds, 16 bonds, and 235 treasury bonds were listed on the exchange. In addition, the CSE’s SME platform featured 19 listed companies during the same period. As of Tuesday (November 11), the market capitalization of the CSE stood at BDT 6.9 trillion.