Dhaka stocks buoyed by China partnership

Stocks have recovered significantly following news that the Dhaka Stock Exchange would form partnership with two Chinese bourses -- Shenzhen and Shanghai.

The partnership raised stocks and transactions on Sunday after several consecutive days of decline in the wake of the Bangladesh Bank monetary policy announcement.

The Dhaka bourse broad index DSEX rose 128 points, or 2.15 percent. The Chittagong Stock Exchange overall index CASPI gained 400 points.

The DSE board of directors accepted the proposal put forward by the Chinese bourses on Saturday.

DSE Director Rakibur Rahman

“We felt the proposal put forward by the Shenzhen Stock Exchange and Shanghai Stock Exchange was the most acceptable on financial and technical grounds,” DSE Director Rakibur Rahman told bdnews24.com on Sunday. “We accepted the proposal unanimously.”

Rahman believes the upward movement in the stock market was due to the decision to form the partnership.

“The decision will take the Bangladesh stock market to the international level and bring in significant foreign investment. Domestic investment will naturally increase in line with foreign investment.”

“The market will improve overall. Bangladesh’s stock market will become a strong international market. This news has excited investors and improved the market.”

The decision will be finalised following the approval of the Bangladesh Securities Exchange Commission (BSEC) regulatory body.

The process should be completed within the coming three or four months, Rahman said.