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Bloomberg
Bangladesh stocks headed for the biggest gain in 17 months after lenders were allowed to borrow from the central bank to invest in equities.
Bangladesh Bank allowed commercial banks to borrow at 6 percent using repurchase agreements, it said in a statement. The DSE Broad Index jumped as much as 2.3 percent in Dhaka, set for the biggest jump since April 1, 2018.
Authorities in the South Asia nation are trying to revive the equity market, which has declined 18 percent since the year’s high in January making it Asia’s worst-performing benchmark after Pakistan.
The Bangladesh central bank said the repo agreements will be initially valid for 28 days and can be extended for six months. Banks will have to invest the funds only in their own portfolios and will be allowed to give the money to their subsidiaries to boost investments in stocks.
Brac Bank Ltd, the nation’s biggest by market value, rose 3.2 percent, Premier Bank
Ltd added 8.5 percent, while Islami Bank Bangladesh advanced 4.2 percent.