Header - Bangladesh.

Bangladesh

With over 160 million people, a young and cheap labour force and a strategic location between India and China -- two of largest engines of global economic growth over the past decade -- Bangladesh maintains strong prospects for extended economic growth. The extent of Bangladesh's growth will largely depend on its leaders' ability to improve economic and diplomatic ties among its neighbours. Completion of a highly anticipated Indo-Bangladeshi free-trade agreement will help spur Bangladesh's already surging garment, pharmaceutical and software industries. Bangladesh has also begun to construct large infrastructure projects, such as electrical power plants, to address domestic and regional energy needs. In addition, with 50% of its workforce in the service sector, Bangladesh has the potential to become an offshore centre for outsourcing, which would help to further diversify its economy.

Bangladesh - GDP Growth Rate (%)
Bangladesh GDP Growth (%)
Source: IMF
Bangladesh - DSE 30 Index
Bangladesh-DSC General Index
Source: Bloomberg

Stock Market:

Bangladesh holds two separate stock exchanges, the Dhaka Stock Exchange (DSE - established on 28th April 1954) and the Chittagong Stock Exchange (CSE - established on 12th February 1995).

The history of the Dhaka Stock Exchange (DSE) dates back to 1952 when the local government deemed it necessary to establish a stock exchange because Pakistani shares and securities were prohibited from being bought or sold on the Calcutta Stock Exchange (CSE) in India. Up until this point, Pakistani securities had been trading quite profitably on the CSE and had no need to establish their own stock exchange department. In response to the prohibition the Provincial Industrial Advisory Council made the decision to establish a stock exchange in Eastern Pakistan.

Initially it was suggested that instead of creating an independent stock exchange, a branch of the Karachi Stock Exchange be opened in Dhaka. However this proposal was very unpopular with representatives from East Pakistan who felt that it was necessary to create a completely new stock exchange in Dhaka. This is what eventually happened with different members of the stock exchange purchasing membership cards at the price of RS.2000. There were two proposed locations for the stock exchange, Dhaka and Chittagong, but in the end it was decided that Dhaka was the most suitable location. An organizing committee was established to further set up the DSE and invitations were sent out to determine what sort of interest there would be. The response was overwhelming and on the 7th of July 1953 a meeting was held with roughly 100 interested persons attending. Of these, eight men were selected to promote the stock exchange the DSE was officially formed shortly afterwards. The DSE was moved to its current location in 1959.

The DSE was first incorporated as East Pakistan Stock Exchange Association Ltd on 28th April 1954 and started formal trading in 1956. It was renamed as East Pakistan Stock Exchange Ltd on 23rd June 1962. Again renamed as Dacca Stock Exchange Ltd on 14th May 1964. After the liberation war in 1971 the trading was discontinued for five years. In 1976 trading restarted in Bangladesh, on 16th September 1986 the DSE was started. The automated trading was initiated on 10th August 1998 and started on 1st January 2001. A Central Securities Depository System was initiated on 24th January 2004.

Founder members of the proposed Chittagong Stock Exchange approached the Bangladesh Government in January 1995 and obtained the permission of the Securities and Exchange Commission on 12th February 1995 for establishing the country's second stock exchange. The CSE started trading on 10th October 1995 by using “cry-out” trading which was replaced by an automated trading system in June 1998. The CSE became a demutualized exchange on 21st November 2013.

The DSE has a total of 356 listed companies with a market capitalization of USD 54.5 billion as of February 2025. The CSE hosts 333 companies and has a market capitalization of USD 47.3 billion as of February 2025. The trading week is from Sunday to Thursday.

Useful Links

Dhaka Stock Exchange website - www.dsebd.org

Chittagong Stock Exchange website - www.cse.com.bd

BANGLADESH

Population: 163m

5 Year average GDP Growth: 6.4%

Population of working age: 90m

  • Growing middle-class with a young demographic
  • Increasing urbanization
  • Strategically located between India and China
  • Growing pharmaceutical, software and garment industries
Country