Union Capital Limited, a non-bank financial institution, has recommended no dividend for the financial year ended 31 December 2025, as the company continues to grapple with mounting losses and a deeply negative net asset value.

According to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (20 May), the company posted a consolidated net loss after tax of approximately Tk42.50 crore for the year.

Following the announcement, its share price slipped 2.08% to Tk4.70 on the premier bourse.

The company's consolidated earnings per share (EPS) for 2025 stood at negative Tk2.46 — an improvement from the negative Tk11.99 recorded in 2024.

Management attributed the narrower loss primarily to reduced provision requirements for loans and advances, higher recoveries from written-off clients, and lower operating expenses through cost control measures.

Despite the improvement in EPS, the consolidated net asset value (NAV) per share deteriorated further to negative Tk65.49, from negative Tk63.02 a year earlier.

The overall loss was largely driven by a decline in net interest income, investment income, and fee and commission earnings.

In the first quarter of 2026 (January–March), Union Capital reported a consolidated net loss after tax of Tk16.31 crore. Quarterly consolidated EPS fell sharply to negative Tk0.95, from negative Tk0.07 in the same period last year. The company said the decline was driven by lower interest income and reduced provision releases stemming from weaker recoveries against non-performing loans.

As of 31 March 2026, the consolidated NAV per share stood at negative Tk66.43, while net operating cash flow per share remained negative at Tk0.61.

The company has scheduled its Annual General Meeting for 29 July 2026, with the record date for entitlement set for 22 June, when shareholders will review the annual performance alongside other agenda items.

In a major move to attract more foreign investment into the country's struggling stock market, Bangladesh Bank has eliminated the requirement for an auditor's certificate for every transaction made by non-resident investors.

Under the new directive issued today (20 May), the central bank has streamlined the tax collection process for Non-Resident Investor Taka Accounts (NITA), allowing for the immediate credit of sale proceeds and automated tax withholding by banks.

Previously, foreign investors were required to obtain a certificate from a chartered accountant for every single trade to determine capital gains tax before funds could be reinvested or sent abroad. This practice frequently caused significant delays, increased compliance costs, and discouraged active trading.

According to the central bank's circular, authorised dealer (AD) banks will now ensure the deduction or withholding of applicable taxes on capital gains directly from the sale proceeds of shares or securities held by non-resident investors. These proceeds will be credited directly to the respective NITA for eventual payment to the government exchequer prior to repatriation.

Speaking to The Business Standard, a senior official from Bangladesh Bank said under the previous system, non-resident investors used to buy stock market shares, and selling them would yield profits.

"After deducting taxes from these profits, the remaining amount was credited to their accounts. In other words, profits were deposited only after tax deduction. Many had raised objections to this method because the entire process – including tax calculations and obtaining certificates – took nearly 15 days," the official said.

He further mentioned that under the newly introduced rules, the amount can be credited to the account immediately upon selling the shares.

"However, when repatriating funds outside Bangladesh, the capital gains tax and the actual profit made from the share sale must be kept separate, allowing the remaining balance to be repatriated. This ensures the account is credited instantly, enabling the investor to reinvest in shares right away if they wish. If depositing funds into the account takes 30 days, it delays their reinvestment in the stock market. Now, reinvesting will take much less time, which serves as an incentive to attract foreign investment into the country."

The official added that Bangladesh Bank granted this approval in response to an application from the Dhaka Stock Exchange (DSE).

Misbah Uddin Affan Yusuf, managing director and CEO of City Brokerage Limited, told TBS that this was a long-standing barrier for international participants.

"Previously, even for small transactions, clients had to manually collect a CA certificate and submit it to their custodian bank. While large institutional investors could manage this through big firms like KPMG, it was a nightmare for smaller investors," Yusuf explained.

"This lengthy process essentially prevented foreign investors from trading freely. Now, the bank handles the 15% capital gains tax calculation and issues the certificate only at the time of repatriation. This is a massive relief that allows for seamless trading," he added.

Saiful Islam, president of the DSE Brokers Association (DBA), hailed the move as a "fundamental change" for the market.

"DSE and DBA have written to the central bank multiple times since the introduction of the capital gains tax, urging them to simplify NITA transactions. Finally, this issue has been resolved. It removes the hurdles for the free entry and exit of foreign capital, which is vital for market liquidity," he said.

The balances in a NITA can be used to purchase listed shares and IPOs. These balances, along with dividends and sale proceeds, are freely remittable abroad in equivalent foreign exchange, provided the applicable taxes have been withheld by the handling bank as per the new simplified rules, he added.

How NITA works for foreign investors

According to the Foreign Exchange Guideline of Bangladesh Bank, Non-Resident Bangladeshis (NRBs) and foreign individuals can invest in the local capital market using freely convertible foreign currency remitted from abroad through formal banking channels.

To begin investing, an investor needs two accounts: a Foreign Currency (FC) account for inward and outward remittances, and a NITA for converting that foreign currency into Taka to buy securities. These must be opened with an Authorized Dealer bank in Bangladesh.

The benchmark indices of the Dhaka Stock Exchange (DSE) posted a slight gain today (19 May), snapping a two-session losing streak in a modest market recovery.

The gains, however, lacked conviction. Trading activity remained subdued as investor participation stayed low, with many market players continuing to exercise caution amid a weak short-term trend. Restrained buying interest prevented any broad-based rally from taking shape.

The DSEX rose 8 points to close at 5,212. The blue-chip DS30 index added 2 points to settle at 1,970, while the Shariah-based DSES index edged up 3 points to 1,059.

Advancers outnumbered decliners — 181 issues gained against 138 that fell, with 74 stocks ending unchanged. Market turnover, however, slipped 6.89% to Tk676 crore from Tk726 crore in the previous session.

In its daily market review, EBL Securities noted that the bourse traded largely flat as investors' selectively accumulated large-cap stocks, though participation remained muted amid persistent caution over near-term market momentum. Indices held in positive territory throughout the session on resilient bargain-hunting interest.

Trading volumes were also weighed down by investors trimming leveraged positions and managing liquidity ahead of upcoming festival holidays, the brokerage added.

Market indices remained firmly in positive territory, with resilient bargain-hunting interest throughout the session.

However, trading activity stayed relatively subdued amid sustained cautious sentiment, while paring back exposure from leveraged positions and liquidity considerations ahead of upcoming festival holidays also somewhat weighed on the market's overall turnover.

On the sectoral front, Pharmaceuticals led turnover with a 16.9% share, followed by General Insurance at 13.6% and Banking at 11.4%. Among sector performances, Ceramic and Jute each rose 1.9%, and Services gained 1.3%. On the downside, Mutual Funds fell 0.8%, Food declined 0.6%, and Life Insurance dropped 0.5%.

At the Chattogram Stock Exchange (CSE), the market also closed in the green. The Selective Categories' Index (CSCX) gained 23.0 points, while the All Share Price Index (CASPI) rose 31.1 points.

Listed companies in Bangladesh may soon have to overhaul their boards under rules that would limit independent director tenures, bar executives from holding dual roles and give the securities regulator direct power to remove directors.
The changes have been proposed in the draft “Bangladesh Securities and Exchange Commission (Corporate Governance) Rules, 2026” published by the commission for stakeholder feedback recently.
The draft, open for comments until May 31, would replace the existing corporate governance code with a more comprehensive rule-based framework, tightening oversight over board composition, executive appointments, subsidiary operations and documentation requirements.

INDEPENDENT DIRECTORS
Some of the major proposed changes relate to independent directors.

The draft states that an independent director can serve a maximum of two consecutive three-year terms, after which a three-year gap is required before reappointment.

The post of independent directors cannot remain vacant for more than 90 days, it also states.

The BSEC has also proposed giving itself direct authority to directly remove independent directors found to pose “a risk to the future of the company.”

The commission may make a pool of eligible candidates for independent director positions, with remuneration governed by board-approved policy and specified in appointment letters, according to the draft.

Independent directors must have at least 12 years of cumulative experience across business, corporate, government offices, academic or professional fields. However, female independent directors would need at least eight years.

BOARD AND TOP MANAGEMENT

The draft rules require that boards include at least one female director – a directive the BSEC has been pushing for years.

In a bid to strengthen separation of powers, the proposed rules mandate that the chairman and managing director or CEO must be different individuals .The chairman must also be elected from among non-executive directors.

Any director of a stock exchange, depository, central counterparty, stockbroker, stock dealer or merchant banker — except an independent director representing a holding company — would be ineligible to serve on the board of a listed company.

Under the proposed rules, a CEO or managing director of a listed company cannot simultaneously hold the same position at another listed company.

The posts of CEO, company secretary, chief financial officer (CFO) and head of internal audit and compliance must each be held by separate individuals. In addition, none of them can hold executive positions at another company concurrently, though the commission may allow CFOs or company secretaries to serve within group companies under certain conditions.

The draft rules also state that no top executive can be removed without board approval and immediate disclosure to the commission and stock exchanges.

AUDIT COMMITTEE AND GOVERNANCE

The audit committee must meet at least four times a year and include at least one financially literate independent director with a minimum of 10 years of accounting or financial management experience.

The BSEC has further proposed stronger documentation requirements for board and shareholder meetings.

The draft rules state that companies must preserve board and shareholder meeting minutes permanently, record online participation details and formally document dissenting opinions. Directors whose objections are not recorded in minutes can file complaints with the commission within 30 days.

All listed companies must arrange governance programmes for directors within one year of the rules taking effect. Newly appointed directors may also be required to complete certification programmes from institutions recognised by the commission.

The new rules will apply to all companies with ordinary shares listed on the main board, the SME board and alternative trading board of the stock exchanges, as well as any public interest entity.

SUBSIDIARIES

The rules propose tighter oversight of subsidiary companies as well.

At least one independent director from the holding company — preferably the chairman of the audit committee — would have to sit on the board of the subsidiary company.

Holding company boards and audit committees would also be required to review subsidiary affairs, investments and inter-company transactions.

The regulator will review the feedback before finalising the framework.

Rather than strengthening the capital market, the government is playing its habitual game of relying on banks for business financing.

This is evident in the central bank's latest decision to expand the single borrower exposure limit from 15 per cent to 25 per cent of a bank's capital.

The suspension of the effectiveness of the previous 15 per cent limit until June 2028 is feared to discourage new listings of companies from large conglomerates.

"The expansion of the exposure limit is a repetition of the same mistake that led to a systematic damage to the financial ecosystem," said Md. Ashequr Rahman, managing director of Midway Securities.

Long-term financing through banks has continued over the years against short-term deposits, which has proved to be disastrous for the banking sector after a substantial amount of loans turned sour.

Before the last national election, key representatives of the BNP said they, if voted to power, would prioritise the capital market instead of the money market in financing.

In November last year, BNP leader Amir Khosru Mahmud Chowdhury, the incumbent finance minister, said at the Bangladesh Economic Summit that the party would put emphasis on energizing the capital market to lessen pressure on banks.Bangladesh travel guide

"We don't want to go to banks that are overused. We want to make the capital market vibrant and we're very serious about it," said Mr Chowdhury at the time.

The ruling party's election manifesto also included plans for the development of the capital market.

"All political parties spoke about a free economy, but eventually they preferred a managed economy after assuming office," said Mr Rahman while speaking with The FE over the phone on the latest policy of the Bangladesh Bank.

The change has been brought apparently to ease financial stress of the borrowers amid economic volatility.

With the high non-performing loan (NPL) ratio, however, the banks will face mounting pressure.

The overall banking sector's NPL ratio stood at over 30 per cent in December last year and deposits grew at a rate of 11.28 per cent year-on-year in February this year.

The deposit growth has not created enough room for fresh lending.

A lender having a 30 per cent NPL ratio means it has to serve purposes worth Tk 100 by Tk 70.

On receipt of fresh deposits worth Tk 11.28, the bank will be able to do the same job with Tk 81.28. Still, there is a shortfall of Tk 18.72. Besides, fresh deposits come with fresh interest liability.Global economy overview

The bank would have been in a better situation in terms of liquidity and for fresh lending had the deposit growth been at least equivalent to the NPL ratio.

In a situation like this, the expansion of the single borrower's exposure limit is not conducive to creating a healthy financial ecosystem.

Mr Rahman, of Midway Securities, said the BB decision is aimed at easing financial stress of business groups but they will borrow money from banks to execute long-term plans. "Will the central bank be able to restore the previous 15 per cent limit after two years?"

In the pre-budget meeting held between the National Board of Revenue (NBR) and stakeholders of the capital market, it was discussed that the companies that would exhaust a certain limit of credit must go to the capital market to raise more capital and that money could be raised through both equity and debt instruments.

After the promise of prioritising the capital market by the government and subsequent discussions in this regard with the revenue board, the central bank expanded the single borrower exposure limit.

Stakeholders of the capital market said both the securities regulator and the central bank are regulatory bodies. But the central bank enjoys the authority to take decisions without consulting other regulators.

On the other hand, since its inception in 1993, the Bangladesh Securities and Exchange Commission (BSEC) has failed to establish its importance before the government and other regulatory bodies.

Alongside the failure of the BSEC, stock exchanges and professional bodies of the capital market have also been unable to play any role in bringing good companies, which heavily rely on bank financing, to the secondary market.

The Dhaka Stock Exchange (DSE) and BRAC EPL Investments today (18 May) signed an agreement to facilitate subscription of the Sajida Orange Zero-Coupon Bond to mobilise capital specifically for women-focused economic empowerment and gender-inclusive development through the bourse's Electronic Subscription System (ESS).

The subscription process began on 18 May and will continue until 23 May, allowing eligible investors to participate through the DSE platform.

The bond, issued by development organisation Sajida Foundation, received approval from the Bangladesh Securities and Exchange Commission in March this year to raise Tk158.5 crore through private placement.

Designed as a social impact financing instrument, the zero-coupon bond aims to fund women-focused economic empowerment initiatives and expand access to inclusive financing.

According to the DSE, Tk75.73 crore of the total bond value has been allocated for eligible investors through the subscription process.

Speaking at the signing ceremony held at the DSE headquarters, Managing Director Nuzhat Anwar said innovative and inclusive financing structures are essential for leveraging Bangladesh's demographic dividend.

She said thematic instruments such as orange bonds are opening new avenues for alternative financing in the capital market.

BRAC EPL Investments Chief Executive Officer Syed Rashed Hossain said the Sajida Orange Bond is laying the groundwork for an internationally aligned thematic bond market in Bangladesh.

He said the initiative would help create a strong impact investment platform capable of attracting both local and foreign investors by combining financial returns with measurable social impact.

He also expressed hope that the successful launch of the bond through the DSE platform would encourage more thematic bond issuances in the future.

Deputy CEO of Sajida Foundation Md Fazlul Hoque, described the Orange Zero-Coupon Bond as a significant initiative for women's empowerment.

He said Sajida Foundation has been working for over 30 years to support women through employment generation, income enhancement and financial inclusion programmes.

Under the allocation plan, around 32% of the raised funds will be used for SME financing and employment generation, 20% for housing-related initiatives, and nearly 40% for agriculture and food security projects.

The remaining funds will support microfinance operations, programme implementation and technology-driven financial inclusion initiatives.

Senior officials from DSE, Sajida Foundation and BRAC EPL Investments were present at the signing ceremony.

The Dhaka Stock Exchange has announced an updated schedule for its office and trading operations in line with the government-declared Eid-ul-Adha holiday period.

According to the announcement, the DSE will continue its regular office and trading activities on Saturday, 23 May and Sunday, 24 May following normal trading hours.

The exchange will then remain closed from 25 to 31 May due to the official Eid-ul-Adha holidays.

Normal trading and office operations will resume on 1 June.

Dhaka Stock Exchange and Swisscontact Bangladesh have signed a memorandum of understanding (MoU) to promote sustainable and inclusive economic development through Bangladesh’s capital market system, with a special focus on SMEs and sustainable financing instruments.

The agreement was signed on Saturday at the DSE premises by Managing Director Nuzhat Anwar and Swisscontact Bangladesh Country Director Helal Hossain in the presence of senior officials from both organisations.Geographic Reference

Under the partnership, the two organisations will jointly work to strengthen SME access to capital markets, improve corporate governance and compliance standards, and promote sustainable financing initiatives in Bangladesh.

The collaboration will focus on strategic sectors including ready-made garments (RMG), healthcare and agriculture, while also supporting initiatives related to environmental, social and governance (ESG) practices, sustainability reporting, financial inclusion, climate resilience, entrepreneurship development, trade facilitation and skill enhancement, says a press release.

Speaking at the signing ceremony, Ms Anwar said the initiative was implemented quickly through strong coordination and clear planning between the two institutions.

“This initiative has been materialised within a short period because of mutual coordination and a shared vision,” she said.Bangladesh trade analysis

She noted that small and medium enterprises require extensive support in capacity building, governance practices and regulatory compliance to enhance their participation in the capital market.

“SMEs are one of the key drivers of the economy, but many of them still lack the institutional preparedness required to access long-term financing from the capital market,” Ms Anwar said.

She added that the partnership would help create a stronger ecosystem for SMEs by offering training, advisory services and awareness programmes aimed at improving financial literacy and governance standards.

Mr Hossain of Swisscontact Bangladesh said SMEs remain a vital pillar of Bangladesh’s economy, although they continue to face challenges in financing, competitiveness and compliance.

“In the current economic context, creating opportunities for SMEs to raise alternative financing and equity-based capital is extremely important,” he said.Global economy forecast

He expressed optimism that the collaboration with DSE would help promising SMEs gain access to the capital market and reduce their dependence on traditional bank financing.

According to officials, the partnership will also facilitate joint capacity-building programmes, incubation support, workshops and advisory services to encourage wider participation in the capital market ecosystem.

The two organisations will additionally cooperate in developing sustainable financing products, including green bonds, sustainability-linked bonds, sukuk and blended-finance models to support environmentally and socially responsible investments.

Market analysts say the collaboration comes at a time when Bangladesh’s capital market is seeking to diversify financing sources and deepen participation from SMEs and sustainable enterprises.

They believe the initiative could help strengthen the country’s sustainable finance framework and support long-term economic resilience through broader access to capital market financing.

Stocks opened the week on a negative note as renewed selling pressure dragged down key indices on the Dhaka Stock Exchange (DSE) today (17 May), reversing gains from the previous three sessions amid the absence of strong market catalysts.

The benchmark DSEX index plunged 19 points to settle at 5,226, while the blue-chip DS30 index declined 11 points to close at 1,970.

Market breadth remained negative, with 228 issues declining compared to 119 advancing and 45 remaining unchanged, reflecting a broadly bearish sentiment among investors.

Turnover also took a hit, dropping by 13% to Tk868 crore, indicating reduced participation as cautious investors opted to stay on the sidelines.

According to EBL Securities PLC, the market retraced into correction territory after a brief recovery phase, as sustained selling in major stocks continued to weigh on overall sentiment.

The session began on a relatively stable note, with indices hovering near the flatline in early trading. However, as the day progressed, selling pressure intensified across large-cap stocks, pushing the market into negative territory and extending the weakness observed toward the close of the previous session, it added.

Market analysts pointed to the lack of a decisive trigger to sustain the recent upward momentum in the selective stocks, leading investors to book profits and adopt a more defensive stance.

Heavyweight stocks such as Beximco Pharmaceuticals, Eastern Bank, BAT Bangladesh, NCC Bank and City Bank emerged as major index draggers, contributing significantly to the day's decline.

On the sectoral front, pharmaceuticals dominated turnover, accounting for 14.5% of total market activity, followed by general insurance at 14.2% and engineering at 12.7%.

Despite this activity, most sectors posted negative returns. Services suffered the steepest decline, falling 2.0%, followed by IT, which dropped 1.2%, and life insurance, which lost 1.1%.

In contrast, a few sectors managed modest gains, with non-bank financial institutions rising 4.2%, jute advancing 0.8%, and travel edging up 0.5%.

Among individual stocks, NCC Bank, Bangladesh National Insurance, Dominage Steel, Asiatic Laboratories and Techno Drugs topped the turnover chart, reflecting active investor participation in these counters.

The day's top gainers included Global Heavy Chemicals, which surged 10%, followed by Investment Corporation of Bangladesh, National Feed Mill, SK Trims, and Appollo Ispat, all posting notable gains of over 9%.

On the losing side, Apex Spinning led the decline with an 8.72% drop, followed by Apex Tannery, GSPO Finance, Peoples Leasing and Fareast Finance, all registering significant losses.

Meanwhile, the Chittagong Stock Exchange (CSE) also ended in the red. The CSCX index fell 33 points to 9,031, while the broader CASPI index declined 39 points to settle at 14,675. Turnover at the port city bourse stood at Tk32 crore, mirroring the subdued trading activity seen in Dhaka.

The government is planning to form a capital market reform commission to bring transparency and restore investor confidence, according to officials at the Ministry of Finance.

The decision was taken at a recent budget-related meeting. It forms part of the ruling BNP’s broader commitment to reviving the capital market, which featured in the party’s election manifesto.

Ministry officials said the commission will work toward overall market reform, with the government also planning to focus on building a stronger bond and equity market.

Besides, the government is also planning to take steps towards ensuring the use of blockchain technology, create an investment gateway for non-resident Bangladeshis, and attract greater foreign investment.

The meeting was informed that Dhaka Stock Exchange’s (DSE) market capitalisation has dropped by Tk 33,000 crore, or 4.4 percent, between January 2024 and February 2026.

The bourse’s benchmark index, the DSEX, fell from 6,153 to 5,600 points in the same period.

The move follows reform efforts under the interim government, which had formed a five-member taskforce to recommend changes to the stock market.

The taskforce, after extensive stakeholder consultation, proposed amendments to several securities rules, many of which the Bangladesh Securities and Exchange Commission (BSEC) has since adopted.

In a successor note before leaving office, former finance adviser Salehuddin Ahmed said the BSEC was restructured after the interim government assumed office, and an external investigation committee was formed to look into 12 irregularities from the previous regime.

A taskforce was also formed that worked on reforming three major rules regarding margin loans, mutual funds and public offering issuance, he added.

Apart from these, another committee was formed to strengthen the BSEC and improve the capital market which also submitted a report including recommendations.

The recommendations were sent to relevant ministries to implement, Ahmed added in the note.

This year has so far brought no relief to listed multinational companies (MNCs), with earnings declining in the first quarter compared to the same period last year as inflation has not let up.

Persistently high inflation, squeezing consumer demand, and rising operating costs due to increases in the costs of raw materials and energy have complicated the business environment for foreign firms operating in Bangladesh.Business strategy consulting

This is the backdrop to subdued economic activity. Sluggishness in business has been deepening since the political changeover in August 2024, while inflationary pressure has continued to erode consumers' purchasing power and corporate profitability, according to market analysts.

During the January-March quarter, things turned worse amid geopolitical tensions surrounding the US-Israel conflict involving Iran, which disrupted global energy supply chains.

Inflation hovered around 9 per cent during the quarter, and analysts warned that price pressures may persist in the coming months due to continuing global uncertainties, supply disruptions and elevated import costs.

Of the 13 multinational firms listed on the stock market, 11 have so far disclosed first-quarter financial results for 2026. Only four of these companies posted profit growth, while four others reported profit declines ranging from 12 per cent to 34 per cent.

Two other companies remained in the red due to heavy debt burdens, and one slipped into fresh losses.Economic trend analysis

Aggregate profits of the 11 firms fell 6 per cent year-on-year to Tk 12.20 billion in January-March this year, while combined revenue declined 4 per cent year-on-year to Tk 103 billion, according to company disclosures.

Marico Bangladesh and Berger Paints follow the April-March accounting year.

Md Akramul Alam, head of research at Royal Capital, said that apart from macroeconomic challenges, tight monetary and fiscal measures adopted by the Bangladesh Bank following the political transition had dampened economic activities.

Private sector credit growth remained weak at around 6 per cent early this year, reflecting poor business confidence and tighter lending conditions.

Mir Ariful Islam, managing director and CEO of Sandhani Asset Management, said multinational companies failed to achieve meaningful revenue growth at a time when consumers had little disposable income.

"Consumers cut back on discretionary spending as essential goods became more expensive," he said, adding that many companies were unable to pass rising costs on to consumers due to weakened purchasing power.

As multinational firms operate across diverse sectors, the reasons behind profit erosion vary from company to company.Politics

Higher finance costs heavily affected firms carrying large debt burdens, while reduced government spending under the Annual Development Programme adversely affected cement manufacturers.

Singer Bangladesh, for example, saw its losses widen 66 per cent year-on-year to Tk 578 million in the January-March quarter due mainly to a 41 per cent surge in finance costs linked to heavy borrowings.

The company attributed the weak performance to sluggish demand in the consumer electronics market, where domestic sales were hurt by inflation, geopolitical tensions, the national election and an extended Eid holiday.

Singer is also facing intensifying competition from local manufacturers such as Walton Group and Vision Electronics, alongside imported brands.

BAT Bangladesh posted a 34 per cent decline in profit to Tk 2.10 billion as lower sales and rising finance costs hit earnings. Net revenue plunged 23 per cent during the quarter through March.

The cigarette maker's domestic sales dropped 21 per cent, while leaf exports fell 23 per cent in the first quarter this year compared to the same quarter last year.Financial literacy course

Meanwhile, reduced government spending under the Annual Development Programme adversely affected cement manufacturers, according to Mr Alam. The overall construction sector remained under pressure due to high inflation and weaker infrastructure activity during the quarter.

Heidelberg Materials Bangladesh slipped into a loss of Tk 50 million in the March quarter, compared with a profit of Tk 197 million a year earlier, after sales dropped 16 per cent.

The company said higher prices of key raw materials squeezed margins, while intense competition prevented it from fully passing additional costs on to customers.

Another cement maker, LafargeHolcim Bangladesh, reported a 19 per cent year-on-year decline in profit to Tk 1.12 billion in the quarter as sales fell 6 per cent amid elevated inflation, tighter private sector credit and slower public infrastructure spending.

Rising energy costs linked to the Middle East crisis and persistent inflationary pressures reduced profitability, although operational efficiency and strict cost discipline helped cement makers preserve margins.Economic trend analysis

"Despite a challenging landscape defined by persistent inflation and higher energy costs, we remain committed to resilience through innovation and operational excellence," said Iqbal Chowdhury, chief executive officer of LafargeHolcim.

Fast-moving consumer goods companies also struggled with low sales as households prioritised essential food spending over discretionary purchases.

Unilever Consumer Care reported a 12 per cent year-on-year decline in profit, while Reckitt Benckiser Bangladesh posted a 28 per cent drop in earnings during the quarter compared to the corresponding period last year.

Masud Khan, chairman of Unilever Consumer Care, attributed the weaker business performance to macroeconomic and seasonal factors.

"A depressed economy, the national election and Ramadan all contributed to pressure on sales and margins," he said.

However, Bangladesh's two leading telecom operators managed to post profit growth through cost efficiency and stronger data revenue.Business strategy consulting

Grameenphone recorded revenue of Tk 37.6 billion in the January-March quarter, down 2 per cent year-on-year. Despite lower revenue, net profit rose 4.4 per cent due to improved cost management and lower finance costs.

Yasir Azman, chief executive officer of Grameenphone, said the company maintained stable financial and operational performance despite external challenges.

Robi Axiata posted an 86 per cent surge in profits, supported by strong revenue growth and disciplined cost management.

Ziad Shatara, managing director and CEO of Robi, said higher revenue was driven by robust growth in data usage and increasing numbers of 4G users.

Linde Bangladesh also reported a 36 per cent growth in profit, driven by higher sales and an 18 per cent decline in operating expenses following the divestment of its subsidiary last year.

Similarly, Bata Shoe posted marginal profit growth, supported mainly by Eid-centric seasonal sales, although overall retail demand remained weak.

Mr Ariful Islam of Sandhani Asset Management warned that corporate profits could remain under pressure over the next two quarters due to the ongoing energy crisis stemming from Middle East tensions.Financial literacy course

"Macroeconomic improvement and restoration of consumer confidence are crucial for business recovery in the coming months," said Mr Alam of Royal Capital.

The country's premier bourse witnessed a fluctuating trading week, as the benchmark index managed to edge higher and snap a persistent losing streak, supported by mid-week bargain hunting.

Although the broad index posted marginal gains, the market remained defined by a tug-of-war between cautious investor sentiment and opportunistic buying.

The benchmark DSEX of the Dhaka Stock Exchange (DSE) rose by 11 points to settle at 5,245. However, the blue-chip DS30 index moved in the opposite direction, shedding 19 points to close the week at 1,981, reflecting continued pressure on large-cap stocks.

Market participation showed signs of resilience, with average daily turnover increasing 6% to Tk879 crore.

According to a weekly market review by EBL Securities, trading lacked a clear directional catalyst, leaving investors to navigate persistent uncertainty.

The week began on a weak note, extending the previous losing streak across the first two sessions amid broad-based selling pressure. Investors largely stayed on the sidelines, closely tracking domestic policy signals and geopolitical developments, including ceasefire negotiations in the Middle East.

Amid the cautious environment, trading activity was largely concentrated in small-cap and momentum-driven stocks. Mutual funds also saw notable interest following recent sector-specific regulatory directives, the report noted.

In contrast, blue-chip counters remained under pressure for most of the week as institutional selling continued. However, sentiment improved from the third session onward, as bargain hunters accumulated oversold large-cap stocks after five consecutive sessions of decline. The recovery was further supported by quarterly earnings disclosures and expectations of potential policy changes, EBL Securities added.

Sector-wise, general insurance dominated turnover, accounting for 13.7%, followed by engineering and textile sectors.

Weekly returns remained mixed. The jute sector led gainers with a 6% rise, followed by information technology (4.5%) and financial institutions (4%). On the other hand, services recorded the steepest decline at 2%, while cement and telecommunications also ended lower.

Among individual stocks, RD Food emerged as the week's top gainer, surging 35.6%. VFS Thread, Apex Tannery, and Meghna Pet also posted strong gains.

Conversely, non-bank financial institutions dominated the losers' list, with International Leasing, Peoples Leasing, and FAS Finance each falling 18.2%.

In terms of liquidity, Monno Ceramic, Dominage Steel, and NCC Bank were among the most actively traded stocks.

By week's end, market breadth remained positive, with 205 issues advancing against 145 declines, though analysts said overall sentiment remained cautiously positioned

The Dhaka Stock Exchange (DSE) witnessed a massive retreat by international investors in April, as a combination of escalating global geopolitical tensions and persistent domestic structural hurdles triggered a wave of heavy selling.

Data from the premier bourse revealed a stark imbalance in foreign participation, with overseas investors offloading shares worth Tk124.14 crore while injecting only a meagre Tk12.06 crore into the market.

This lopsided trade reflects a deepening sense of caution among global fund managers, who appear to be scaling back their exposure to frontier markets in favour of safer havens amidst a volatile international landscape, according to the market insiders.

The overall participation of foreign investors saw a dramatic contraction during the month. Total foreign turnover in April stood at Tk136.2 crore, which was exactly 50% lower than the turnover recorded in March.

This decline in trading volume suggests that foreign institutional investors are not only selling off their positions but are also hesitant to engage in fresh buying, leading to a significant reduction in market liquidity, said insiders.

As per DSE data, foreign investment held in 130 listed companies, out of which foreign investments trimmed in 19 companies, while increases in 14 firms. Foreign participation remained unchanged in 97 firms.

According to the Central Depository of Bangladesh Limited, the number of non-resident beneficiary owner accounts stood at 43,242 as of mid-May.

The sell-off was most pronounced in fundamentally strong, large-cap companies that have traditionally been the darlings of foreign portfolios. Square Pharmaceuticals, often considered a blue-chip anchor for the market, saw the highest volume of foreign exit, with sales amounting to Tk40.72 crore. Consequently, foreign shareholding in the pharmaceutical giant dropped from 15.33% in March to 15.11% in April. BRAC Bank followed a similar trend, with foreign investors trimming their stakes by Tk37 crore, bringing their holding down to 36.22% from 36.48%.

Other major firms such as Renata, British American Tobacco Bangladesh, Marico, and Grameenphone also experienced notable foreign outflows, reflecting a broader trend of profit-taking or risk-mitigation by international funds.

In a few extreme cases, foreign investors opted for a complete exit from certain entities. During April, international fund managers liquidated their entire remaining holdings in Ring Shine Textile and Premier Bank. Conversely, the market saw a rare entry as foreign investors picked up stakes in Bangladesh National Insurance for the first time.

On the buying side, BSRM Steels emerged as the only significant beneficiary of foreign interest, attracting Tk9.50 crore in purchases and raising its foreign shareholding from 0.25% to 0.60%. Minor increases were also noted in BSRM Limited, Prime Bank, and Envoy Textile, though these were insufficient to offset the overall exodus of capital.

Market experts and researchers attribute this sharp decline to a complex mix of external and internal factors.

A senior researcher at a leading brokerage firm noted that while there was high optimism following the national elections and the formation of a new government, the expected surge in foreign investment failed to materialise. Instead, the market was blindsided by the sudden escalation of conflict in the Middle East involving the United States, Israel, and Iran. This geopolitical instability has sent shockwaves through global energy markets, creating a climate of economic uncertainty that is particularly damaging for energy-import-dependent nations like Bangladesh.

For global investors, the risk of inflation and energy insecurity in Bangladesh, exacerbated by these international conflicts, has made the domestic equity market appear increasingly risky. These external pressures have compounded long-standing domestic issues that continue to weigh on the market's attractiveness.

Analysts emphasised that the scarcity of high-quality, well-governed firms forces foreign investors to concentrate their holdings in a very small number of stocks. When sentiment shifts, as it did in April, this concentration leads to rapid and heavy sell-offs that the local market often struggles to absorb.

Furthermore, the prevalence of "junk stocks" and companies with poor corporate governance continues to deter professional fund managers. Issues surrounding transparency, inconsistent financial reporting, and weak regulatory enforcement remain significant barriers to attracting long-term institutional capital, said a managing director of a brokerage firm.

Structural hurdles, including a complex capital gains tax regime and ongoing difficulties in the repatriation of funds, also remain cited as deterrents. While the government and regulators have introduced some policy measures to address these bottlenecks, market participants argue that the impact of such reforms has yet to be felt on the ground, he added.

According to the DSE officials, the persistent foreign sell-off serves as a wake-up call for the country's capital market regulators. As foreign investors shift their stakes from top-tier firms like City Bank, Southeast Bank, Beximco Pharma, and IDLC Finance into defensive positions or out of the country entirely, the pressure on the DSEX benchmark index continues to mount.

The Bangladesh Securities and Exchange Commission (Bangladesh Securities and Exchange Commission) has published a draft of sweeping new corporate governance rules that introduce stricter oversight and tighter controls on listed companies, with a focus on strengthening transparency, accountability and investor protection in the capital market.

The proposed framework marks a shift from the existing corporate governance code issued in 2018 by significantly tightening board composition requirements, expanding independence standards, and imposing stricter eligibility and shareholding rules for directors and key executives.

It also introduces enhanced restrictions on cross-directorships between listed companies and major market infrastructure institutions such as exchanges, depositories, clearing entities, brokers and merchant banks.

According to the draft, the new rules will apply to all companies with ordinary shares listed on the main board, SME board and alternative trading board (ATB) of the stock exchanges, as well as any public interest entity.

The draft, released today (14 May), has been opened for stakeholder feedback until 31 May. The regulator said it will review the comments before finalising the framework for implementation.

Board structure and shareholding requirements

Under the proposed framework, the board of directors of a listed company must consist of no fewer than five and no more than 20 members. For SME-listed companies, the ceiling will be 10 directors. Each board will be required to include at least one female director.

All sponsor-directors – excluding independent directors – must collectively hold at least 30% of a company's paid-up capital. Each director will be required to hold a minimum of 2% of shares, while nominated directors must hold at least 5%.

Independent directors and eligibility rules

The proposed rules increase the minimum requirement for independent directors. At least three directors, or one-third of the total board, whichever is higher, must be independent. This marks a shift from the existing requirement, which mandates at least one-fifth of the board to be independent directors.

The draft bars individuals who are currently directors of stock exchanges, depositories, central counterparty institutions, stock brokers, stock dealers, or merchant banks from serving as directors of listed companies. The only exception is where they are appointed as independent directors representing a holding company.

Senior management structure and compliance

Every listed company must appoint a managing director (MD) or chief executive officer (CEO), a company secretary (CS), a chief financial officer (CFO), and a head of internal audit and compliance (HIAC).

The draft specifies that individuals holding these positions will not be allowed to serve in executive roles in any other company simultaneously. However, the CFO or company secretary may hold the same position in another company within the same group – listed or unlisted – subject to prior approval from the Commission, for cost efficiency or technical expertise reasons.

In addition, the MD, CEO, CS, CFO, and HIAC cannot be removed from their positions without board approval. Any such decision must also be immediately disclosed to both the Commission and the stock exchanges.

The Commission said the proposed rules are designed to modernise corporate governance practices in Bangladesh's capital market and ensure stronger accountability across listed entities.

United Finance PLC has reported a strong start to the 2026 financial year, with its net profit after tax surging by 31% during the first quarter of the year ending 31 March.

According to the company's financial results released today (13 May), the non-bank financial institution earned a net profit of Tk0.75 crore in the January-March period, up from the corresponding period of the previous year. This growth was largely attributed to improved operational efficiency and a steady expansion across its core business segments.

The significant bottom-line growth pushed the company's earnings per share (EPS) to Tk0.04 for the three months, compared to Tk0.03 in the first quarter of 2025. The company's net asset value (NAV) per share also saw a modest improvement, rising to Tk17.94 from Tk17.90 recorded at the end of the previous year.

Contacted, Mohammed Abul Ahsan, acting managing director of the firm, said that the results reflect the positive momentum built across the organisation.

He noted that the 31% surge in net profit, combined with healthy growth in both the loan portfolio and deposit base, reaffirms the strength of the company's diversified business model.

Ahsan added that the firm remains focused on delivering sustainable returns to its shareholders while maintaining excellence in customer service.

Eastern Bank PLC (EBL) posted a 28% year-on-year rise in consolidated net profit in the first quarter of 2026, driven by higher investment income and strong foreign exchange earnings, says a press release.

According to the bank's January-March financial statement, consolidated profit after tax rose to Tk199 crore from Tk155 crore in the same period last year.

Consolidated earnings per share increased to Tk1.24 from Tk0.97 a year earlier, while net asset value per share rose to Tk32.75 from Tk26.41.

EBL Managing Director Hassan O Rashid said the bank delivered resilient performance despite slower private sector credit growth.

"We continue to remain focused on maintaining strong asset quality, liquidity and capital strength while ensuring superior financial result for our shareholders." he added.

The bank's standalone non-performing loan ratio stood at 2.80%, almost unchanged from 2.79% a year earlier and well below the industry average.

EBL's standalone capital-to-risk weighted assets ratio was 16.71%, higher than the regulatory requirement of 12.5%.

By the end of March 2026, deposits grew 20% year-on-year to Tk56,207 crore, while standalone total assets rose to Tk76,961 crore.

Islami Bank Bangladesh reported that it incurred a loss of Tk288 crore in the January-March quarter of 2026.

According to the bank's price sensitive statement, its consolidated loss per share was Tk1.79 in the first quarter.

The bank said, it incurred the loss mainly due lower interest earnings, higher deposit cost and rising non performing loan.

BRAC Bank reported that its consolidated net profit jumped by 44% to reach Tk695.68 in the January-March quarter of 2026.

According the bank's price sensitive statement, its consolidated earnings per share was Tk2.90 in the first quarter, which was Tk2.02 during the same quarter a year ago.

The bank said, net profit was driven by higher interest income as well as investment income. Moreover, robust performances fron the subsidiaries companies also helped to post such profit growth during the quarter compared to the previous year.

The country's premier bourse returned to a positive trajectory on Tuesday as the benchmark index snapped a five-day losing streak, supported by a significant surge in trading activity.

Market turnover at the Dhaka Stock Exchange (DSE) crossed the prestigious Tk1,000 crore mark for the first time in recent weeks, jumping by 54% to reach Tk1,101 crore.

While broad-based bargain hunting played a role in the recovery, the massive turnover was largely driven by a single heavyweight transaction in the block market, where shares of BRAC Bank worth Tk335 crore changed hands.

The benchmark DSEX index rose by 24 points to settle the session at 5,229. The blue-chip DS30 index followed a similar path, gaining 4 points to close at 1,989.

The day's trading reflected a shift in investor sentiment as opportunistic buyers moved in to accumulate fundamentally strong scrips that had become undervalued during the previous week's persistent decline, according to the market insiders.

Market breadth turned positive as well, with 188 issues advancing, 138 declining, and 67 remaining unchanged on the DSE floor.

According to the daily market review by EBL Securities, the capital bourse staged a modest recovery yesterday after five consecutive losing sessions. The market opened on a firm footing and maintained positive momentum throughout the day. Although the rebound offered some relief to the market's weakened sentiment, analysts said investors remain cautious amid concerns over potential policy developments and evolving geopolitical tensions in the Middle East.

The banking sector dominated the day's proceedings, accounting for a staggering 36% of the total turnover, primarily due to the high-value block trades. This was followed by the engineering sector with 11% and the pharmaceutical sector with 9.7% of the total trading volume.

In terms of returns, the jute sector led the gainers with a 2.5% increase, while services and information technology also posted gains of 1.6% and 1.2%, respectively.

On the other hand, the mutual fund sector faced the steepest correction of 2.2%, while the paper and tannery sectors also saw marginal declines.

Among individual performers, RD Food and Rahima Food topped the gainers' list, both surging by over 9.9%. Other notable gainers included Islami Commercial Insurance, Prime Textile, and VFS Thread.

Conversely, Meghna Pet emerged as the top loser, shedding 6.20% of its value, followed by Monno Ceramic and several mutual funds.

Monno Ceramic also featured prominently in the turnover chart alongside Dominage Steel, Acme Pesticide, Asiatic Laboratories, and NCC Bank.

The positive sentiment extended to the Chittagong Stock Exchange (CSE) as well, where the key indices settled in green territory. The selective categories' index (CSCX) gained 25 points, while the all share price index (CASPI) rose by 41 points.

BRAC Bank's second subordinated bond started trading on the Alternative Trading Board (ATB) platform of the Dhaka Stock Exchange (DSE) today (12 May), marking another step in the country's bond market expansion.

The "BRAC Bank 2nd Subordinated Bond" was listed following the signing of a listing agreement between the bank and DSE at the stock exchange's office in Dhaka today.

DSE Managing Director Nuzhat Anwar and BRAC Bank Managing Director and CEO Tareq Refayet Ullah attended the signing ceremony along with senior officials from both organisations.

Trading of the bond commenced under the "P" category on the ATB platform with the trading code "BBL2NDSB" and scrip code "55008".

BRAC EPL Investments Limited acted as the lead arranger of the bond, while UCB Investment Limited served as the trustee.

According to DSE data, the Tk700 crore bond carries a face value and minimum investment of Tk10 lakh per unit. The non-convertible, fully redeemable, unsecured subordinated bond offers a floating coupon rate of 12.59% per annum, payable semi-annually.

Issued on 11 March 2024, the bond currently has a remaining tenure of around four years and 10 months. Repayment will begin annually from the end of the third year from the issue date, specifically on 11 March each year. The DSE approved the listing on 20 April 2026.

The stock exchange has also imposed special circuit breaker rules for the initial trading sessions. A 4% circuit breaker will apply during the first two trading days. On the first day, the limit will be determined based on the present value calculated using at least a 10% annual discount rate, while the second day will use the reference price.

Trading will remain suspended on the third trading day before the regular 5% circuit breaker rule takes effect from the fourth trading day.

Market insiders said the bond would strengthen BRAC Bank's long-term capital base, as subordinated bonds are considered part of regulatory capital and help maintain the capital adequacy ratio required by regulators.

They added that the listing reflects growing interest among banks in raising long-term funds through the capital market instead of relying solely on deposits and conventional borrowing.

DSE's Alternative Trading Board was introduced to facilitate trading of bonds, sukuk, exchange-traded funds (ETFs), alternative investment funds and other non-equity securities, aiming to diversify investment products and support long-term financing in Bangladesh's capital market.

Analysts said the expansion of the corporate bond market through the ATB platform would create more fixed-income investment opportunities for investors and help deepen the country's capital market.