Home / Financial Services/ Bangladesh plans mass privatisations to cool stock market

Bangladesh plans mass privatisations to cool stock market


Comments / {{hitsCtrl.values.hits}} Views / Sunday, 14 November 2010 21:31

Facebook

DHAKA: (AFP) - Bangladesh will offload stakes in dozens of state-owned enterprises as part of a major government effort to cool down the country’s overheated stock exchange, its finance minister said last week.

Eight state-owned firms, including major energy and power firms, which are already listed will be made to sell more shares, while 24 wholly state-owned firms will be taken public this year, A.M.A. Muhith told AFP.

The moves aim to help the Dhaka Stock Exchange (DSE) soak up excess demand for stocks, which analysts say has pushed valuations to unsustainable levels.

Muhith said the government has eased rules for issuing new shares to encourage the 24 state-owned companies to list.

The DSE, which is up 70 percent since the start of the year, crossed the record 8,000-point mark during trading on Sunday before falling 12 points to close at 7,988 on profit taking. It closed at 7,974 on Monday.

Titas, the country’s largest gas distribution company, electricity giant Desco, mobile phone company Teletalk and national flag carrier Biman Air top the list of companies to be listed this year, the DSE said.

“It’s the biggest bonanza for the country’s share market in decades,” DSE director Rakibur Rahman told AFP, adding that the last time the government took similar steps was in 1988, when eight small state-owned enterprises were listed.

“It will stabilise the market by narrowing the dangerous demand and supply gap,” he said.

The sale of stakes in the eight main companies will raise up to 600 million dollars, with listing of the additional 24 companies likely to net some 850 million dollars, he said.

The DSE has been the top performing share market in the region since 2007. Its benchmark DGEN index has risen nearly 200% since January 2009.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Come, let us build!

Friday, 26 April 2019

It was the best of times; it was the worst of times. Best because Sri Lanka was united in what it did well: being at peace, on an extended sabbatical, pursuing the absence of conflict – even mindlessly – and enjoying the fruit of island life. Wor


Black Easter

Friday, 26 April 2019

To Sri Lankan Christians, Easter this year was a day of God where demons reigned. It can be considered an unfortunate day in which the country was plunged again into the uncivilised wretchedness that prevailed in the country during the violent confli


Explaining Sri Lanka’s new Emergency Regulations on ‘publication’

Friday, 26 April 2019

Sri Lanka’s President issued a new set of Emergency Regulations on 22 April. This note explains the contents of Emergency Regulation 15, which concerns the ‘control of publications’, and certain other regulations relevant to publication. There


A secular public space is essential for the safety and wellbeing of all

Friday, 26 April 2019

The heart is heavy and the pen is slow. The environment is thick with the shared sorrow of many. Pain and suffering caused by deaths of hundreds and maiming of more on Easter of 2019 will linger for the rest of our lives. But life must go on and we m


Columnists More