Dhaka shares make strong recovery

Car driver being assaulted by protesting investors in DhakaAngry investors vented their anger on Monday outside the Dhaka Stock Exchange
Related stories

Shares on the Dhaka Stock Exchange in Bangladesh recovered strongly on Tuesday after weeks of heavy falls.

Stocks ended the day up by more than 15% following government pressure on the country’s financial authorities to stabilise the market.

However, some analysts warned that the rebound might be short-lived.

On Monday police used tear gas and baton charged investors who had attacked government buildings in protest at collapsing share prices.

Trading on the Dhaka Stock Exchange index was halted after it fell by 660 points, or 9.25%, in less than an hour.

It was the biggest one-day fall in its 55-year history.

It is estimated that more than three million people – many of them small-scale individual investors – lost money because of the plunging share prices.

The rising value of stocks in recent years has attracted millions of investors in Bangladesh.

Shares have become a popular investment for ordinary people, often providing higher returns than bank deposits and savings.

The BBC’s Mark Dummett says that Bangladesh might be one of Asia’s poorest countries, but its two stock markets have soared in recent years on the rising value of its mobile telephone companies and other firms.

But over the past few weeks more and more investors have been selling up, amid rumours that large institutional investors had pulled their money out after making large profits.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Leave a Reply

Your email address will not be published. Required fields are marked *