Dow Jones SAFE index at DSE, CSE soon

FE Team | Published: March 02, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

Dow Jones SAFE Bangladesh index is likely to be launched in Dhaka and Chittagong Stock Exchanges within three to six months, reports bdnews24.com A few Bangladeshi fund managers had expressed their interest to float the index, secretary general of South Asia Federation of Exchanges (SAFE) Aftab Ahmed said in an interview with the news agency on Tuesday. "Dow Jones will appoint a fund manager on business and commercial considerations and the same will be listed with the Dhaka and Chittagong exchanges," the SAFE secretary general said. SAFE, in collaboration with Dow Jones in 2009, launched Dow Jones SAFE 100 index, where 13 Bangladeshi companies have been incorporated. The fund manager would raise funds from the market and buy shares of the companies it would select from a list of 13, he added. "The fund manager may select all the 13 companies or any other one for investment purposes." The 13 Bangladeshi companies include BATBC, Dutch Bangla Bank, Titas Gas, Uttara Bank, Pubali Bank, AB Bank, National Bank Ltd, Prime Bank, Beximco Pharma and PGCB. SAFE will provide technical support to the fund managers. "A Dow Jones executive visited Bangladesh this week to discuss the issue with the interested parties," Ahmed said. About his experience of SAFE index elsewhere, he said Pakistan had launched a similar type of index comprising 15 companies. "These 15 companies are also included in Dow Jones SAFE 100 index." These companies are 'blue chips of the blue chips' and they would yield better profits than the normal market returns, he added. About the domestic market, Ahmed said it was overheated and had, therefore, been witnessing bubbles. He stressed the importance of reforming the market and continuous engagement with investors. SAFE is trying to facilitate cross-border transactions but it is facing challenges, he added. "We need to open up financial sector to allow cross-border transactions, but political commitment is needed to make this thing happen," Ahmed observed added. Cross-border trade would give the investors an opportunity to invest in the market where they would get the maximum return, he said.