Business

Bangladesh eyes $700m fund to help steady stock market

Investors protest in front of the Dhaka stock exchange
Image caption The riots raised questions over the ability of investors to absorb market losses

Bangladesh will set up a $700m (£432m) investment fund in a bid to stabilise the country's stock market.

It will be backed by eight state-run financial institutions, according to the Investment Corporation of Bangladesh.

The move is the latest in a series of efforts by the government to try and cut market volatility.

Investors have rioted over the past few months as the Dhaka stock exchange lost more than 40%, or $16bn, in value.

Before the decline, the Dhaka index was one of the best performing in the world.

It rose 80% in 2010, hitting a record high of 8,918.51 on 5 December.

The strong returns prompted millions of Bangladeshis to invest in the stock market.

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