Effect of interest rate on stock market performance in Bangladesh

Abstract

This report consist three chapter explaining my experience, company overview and capital market analysis. The first chapter is about the general internship experience and other information. I had an internship in Research and Investment Division at CBIL, where I participated in gathering market data, analyzing companies, monitoring portfolios, observing macro economic data and in operational activities dealing with the capital market. The second chapter covers the background, services of Community Bank Investment Limited. Based on the financial data of the company in the past five years, the ratio analysis, trend analysis and cash flow analysis have been carried out to analyze the financial performance. Analytical tools used for the evaluation of the competitive position of CBIL in the capital market industry. In the last chapter the relationship between stock market return and interest rate change in Bangladesh is measured through regression analysis. It is a study of the relationship between macroeconomic variables, namely the change in interest rates and the performance of the stock market and investors' behavior. Studies have been conducted by me on the relationship between interest rates and the DSEX index to measure the performance through various statistical and financial interpretations.