Analysis of Dhaka Stock Market Data for Explaining the Stock Market Behavior: Before and After 2010 Market Fall

A stable stock market is necessary to attract quality investors in a stock market. It is also necessary to understand the characteristics of the stocks of different companies to make a logical decision by the investors about that stock. Bangladesh has a long history in the stock market and faced two major market crash in 1996 and 2010. The behavioral differences of some of the stocks, before and after the 2010 crash in Dhaka Stock Exchange (DSE), are investigated in this paper. Data of some selective companies from DSE for the period 2000-2015 are used. Descriptive statistical measures and cluster analysis methods are used to examine the characteristics of the stocks and to identify groups according to their characteristics, respectively. It has been found that, the market showed a better stability over different market indicators after the 2010 crash.