Sonali Aansh Industries PLC has been elevated to the "A" category from the junk "Z" category by the Dhaka Stock Exchange after completing the distribution of a 15% cash dividend to shareholders for the financial year ended 30 June 2025.

According to a DSE notification issued today (12 July), the company successfully disbursed the declared dividend, prompting the bourse to restore its status to the regular trading category with effect from the same day.

The company's share price rose 3.45% to Tk224.7 following the announcement.

Under the DSE's listing regulations, companies are placed in the "A" category if they comply with key regulatory requirements, including holding annual general meetings (AGMs) on time and declaring and distributing the required dividends.

On the other hand, companies are classified under the "Z" category for failing to meet one or more listing requirements, such as not holding AGMs, failing to declare or distribute dividends, remaining non-operational for a prolonged period, or violating other regulatory obligations.

Market analysts said Sonali Aansh's return to the "A" category marks a positive step in terms of regulatory compliance. The company will regain the benefits associated with a regular trading category, and subject to meeting other eligibility criteria, its shares may once again qualify for margin loan facilities. The reclassification is also expected to improve investor confidence and enhance the stock's trading liquidity.

However, analysts cautioned that investment decisions should not be based solely on a company's trading category. Investors should also consider its earnings, cash flows, financial strength and long-term business prospects.

According to the company's latest unaudited financial statements, earnings per share (EPS) stood at Tk1.97 for the January-March quarter of 2026, compared with Tk1.81 in the same period a year earlier.

For the first nine months of fiscal 2025-26, EPS rose to Tk5.62 from Tk5.23 in the corresponding period of the previous fiscal year.

Meanwhile, net asset value per share jumped to Tk234.34 as of 31 March 2026 from Tk32.81 as of 30 June 2025. The company attributed the sharp increase to the revaluation of its assets carried out up to 31 December 2025.

A company's trading category is considered an important indicator for investors as it reflects its level of compliance with regulatory requirements, corporate governance standards and shareholder obligations. The DSE regularly reviews the compliance status of listed companies and revises their trading categories accordingly.

Analysts said regulators have recently tightened oversight of listed companies, particularly regarding dividend distribution, corporate disclosures and investor protection. As a result, companies that fulfil their regulatory obligations on time are increasingly being restored to higher trading categories.

Bangladesh's stock market extended its rally today (12 July), the first trading day of the week, as investor optimism over regulatory reforms and the government's commitment to developing the capital market remained strong.

Driven by robust buying pressure, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) gained 45 points to close at 5,849. Daily turnover also crossed the Tk1,600 crore mark for the first time in nearly two years, reaching Tk1,669 crore.

Turnover increased by around 16.9% compared with the previous trading session. Market participants attributed the rise to growing demand for fundamentally strong stocks trading at attractive valuations, alongside expectations of market reforms.

Buying interest was particularly strong in banking and insurance stocks from the opening bell. The blue-chip DS30 index rose 22 points to 2,200, while the DSES, which tracks Shariah-compliant companies, also ended the day in positive territory.

Of the 392 listed companies and mutual funds traded on the DSE, 199 advanced, 156 declined, and 37 remained unchanged.

The Chittagong Stock Exchange (CSE) also maintained its positive momentum. The CSCX index gained 66.8 points, while the broader CASPI index advanced 77.4 points. Strong buying in banks, insurers and other large-cap stocks helped the market close higher.

In its daily market review, brokerage firm EBL Securities said investor confidence, supported by regulatory and political commitments to capital market reforms, generated broad-based buying across sectors.

Although some profit-taking emerged during the session, fresh buying quickly absorbed the selling pressure, allowing the market to retain most of its gains and extend its upward trend, the brokerage said.

According to EBL Securities, the banking sector accounted for the largest share of turnover at 12.8%, followed by textiles (12.6%) and general insurance (12.4%).

In terms of price movement, the general insurance sector was the most active, contributing 16.9% of total traded value, followed by textiles (12.2%) and engineering (8.7%).

The mutual fund sector posted the biggest gain, rising 3.7%. The life insurance index climbed 3.2%, while the jute sector advanced 2.9%.

On the downside, the information technology (IT) sector recorded the steepest decline, falling 1.8%. The miscellaneous sector lost 0.5%, while the travel and leisure sector slipped 0.3%.

Lovello Ice Cream topped the turnover chart, followed by Bangladesh Shipping Corporation, Malek Spinning, Eastern Housing, and ITC.

Among the top gainers, Union Insurance rose 9.82%, followed by Meghna Insurance (9.78%), Sandhani Insurance (9.57%), EBL First Mutual Fund (9.52%), and MBL First Mutual Fund (9.52%).

On the losing side, Apollo Ispat Complex fell 9.37%, matching the decline of Zaheentex Industries. Intech lost 9.31%, Shurwid Industries dropped 8.95%, and AFC Agro Biotech declined 8.86%.

During the trading session, rumours that several long-suspended listed companies might be delisted created temporary volatility in the market.

The Bangladesh Securities and Exchange Commission (BSEC) later dismissed the reports as completely baseless and misleading in a press release.

The regulator clarified it had not taken any decision to immediately delist companies that have remained out of production or commercial operations for a prolonged period.

However, the commission urged investors to exercise extreme caution when investing in companies that have remained inactive for a long time and whose going concern status is under serious threat. It also advised investors not to make investment decisions based on rumours or incomplete information.

The Dhaka Stock Exchange has finalised its semi-annual rebalancing of the DS30 index, the premier "elite club" of investable stocks on the country's main bourse.

In the latest review, steel giant BSRM Limited, pharmaceutical leader The Acme Laboratories Limited, and the state-owned Power Grid Company of Bangladesh Limited have secured their positions among the top 30 stocks. These new entrants will replace Kohinoor Chemicals, Unique Hotel and Resorts, and the multinational industrial gas supplier Linde Bangladesh Limited.

The reshuffle, which is scheduled to take effect from 19 July, is based on a rigorous index methodology developed in 2013 in collaboration with S&P Dow Jones Indices, said the DSE in a press release today (12 July).

The rebalancing is conducted twice a year to ensure that the index accurately reflects the most liquid and fundamentally sound companies available to investors, according to the DSE.

Market insiders noted that the DS30 serves as a critical benchmark for both domestic and foreign institutional investors, helping them identify the most reliable "investable" scrips in an often-volatile market.

To qualify for the DS30 index, a company must meet several stringent criteria. These include maintaining a minimum free-float market capitalisation of Tk50 crore and an average daily turnover of at least Tk50 lakh over the preceding three months. For companies already residing within the index, the turnover requirement is slightly relaxed to Tk30 lakh to maintain stability.

Furthermore, any candidate for the blue-chip index must have posted a positive net profit over the latest 12-month period. To ensure sectoral diversity, the DSE also limits the number of companies from a single sector to a maximum of five.

How non-compliant firms placed in DS30

The presence of certain non-compliant firms in the DS30 list has raised concerns among market participants regarding the integrity of the index.

For instance, Fine Foods Limited remains a member of the DS30 despite its sponsors and directors holding only 13.92% of the company's shares – far below the regulatory mandate of 30% for all listed firms.

Similarly, LankaBangla Finance has retained its spot in the elite club despite a significant lack of financial transparency. The non-bank financial institution has not published any financial statements since September 2025, leaving investors in the dark regarding its performance for the full year of 2025 and the first two quarters of 2026.

A managing director of a prominent brokerage firm told TBS that while investors traditionally trust the blue-chip index, the inclusion of companies with poor track records or compliance failures can be misleading.

He pointed out that this lack of qualitative screening is a primary reason why many professional fund managers choose not to follow the DS30 index strictly when building their portfolios.

He argued that an index meant to represent the best of the market should not harbour companies that flout basic listing and transparency regulations.

Responding to these criticisms, a senior officer of the DSE, speaking on condition of anonymity, explained that the bourse is currently bound by the mathematical model provided by S&P Dow Jones.

According to him, if a company meets the market cap, turnover, and profitability numbers defined in the 2013 methodology, the system automatically includes them.

He noted that the current methodology does not provide a specific timeframe for quarterly earnings valuations, which allows a firm like LankaBangla Finance to remain in the index based on historical data.

However, he revealed that the DSE is aware of these loopholes and is considering consulting with stakeholders to modify the index rules to incorporate stricter compliance and corporate governance standards in the future.

The DS30 index, which launched with a base value of 1,000 points in 2013, remains the most-watched indicator of large-cap performance in Bangladesh.

The Bangladesh Securities and Exchange Commission (BSEC) plans to overhaul listing rules to attract large, well-governed companies to the stock market by allowing them to list through direct listing after selling just 10% of their shares.

BSEC Chairman Masud Khan announced the plan today (9 July) at the "CMJF Talk" organised by the Capital Market Journalists' Forum (CMJF) in Dhaka.

Currently, only state-owned enterprises can use the direct listing mechanism, and they must float at least 25% of their shares. Masud said the rules would be amended within the next three months so that eligible private companies, including firms such as Unilever Bangladesh and Incepta Pharmaceuticals, can list by offloading only 10% of their shares.

He said the move is intended to address one of the biggest barriers to attracting quality companies to the capital market.

"The current IPO process is lengthy and cumbersome. Entrepreneurs have to submit stacks of documents and wait one and a half to two years for approval. As a result, many good companies prefer bank financing over raising funds from the stock market," he said.

The BSEC is simplifying the IPO and Public Issue Rules to make fundraising through the market faster and more efficient while maintaining regulatory oversight.

To strengthen market surveillance, the commission has delegated greater authority to the Dhaka Stock Exchange (DSE). The exchange will now be able to take immediate action against abnormal price movements and suspected market manipulation without waiting for prior approval from the BSEC. It has also been given the authority to determine circuit breakers.

The regulator is also considering suspending trading in companies that have remained non-operational for a prolonged period to improve market quality.

Highlighting the importance of institutional investment, Masud said the BSEC plans to introduce a certification system for financial advisers to help retail investors make informed investment decisions. The Mutual Fund Rules are also being revised to encourage greater participation by institutional investors.

On enforcement, he said legal reforms are underway to ensure stricter punishment for market manipulators.

"The previous commission imposed fines worth Tk1,500 crore, but only Tk33 lakh could be recovered because of legal complications," he said. The government is considering establishing special court benches for capital market cases and allowing the BSEC to file cases directly with capital market tribunals.

The BSEC is also working with Bangladesh Bank to reduce the securities settlement cycle from T+2 to T+1. Plans are also in place to strengthen the bond market by allowing bonds to be listed on the main board instead of the Alternative Trading Board, while preparations are underway to introduce a derivatives market.

The commission chairman said discussions with the finance ministry on reducing taxes on dividend income, easing restrictions on mutual fund investments and providing tax exemptions for zero-coupon bonds have been positive.

Responding to questions on recent layoffs at the DSE, he said staffing decisions are an internal matter for the exchange, though issues involving dismissed BSEC employees would be resolved this month.

The event was chaired by CMJF President Monir Hossain and moderated by General Secretary Ahsan Habib Russell.

Although 360 companies are listed on the Dhaka Stock Exchange (DSE), just 10 account for nearly 40 percent of its total market capitalisation, showing the limited depth of the local capital market.

Analysts say the concentration leaves investors with relatively few quality stocks, discourages institutional participation and keeps the market small compared with regional peers.

Grameenphone, the country’s largest listed company, alone accounts for almost one-tenth of the DSE’s total market capitalisation of Tk 360,895 crore. It is followed by Square Pharmaceuticals and Robi Axiata. Together, the three companies make up about one-fifth of the market value.

Market capitalisation is calculated by multiplying a company’s share price by its outstanding shares. The combined value of all listed companies represents the total market capitalisation of the exchange.

Majority-owned by Norway’s Telenor, Grameenphone ended fiscal year 2025-26 with a market value of Tk 35,053 crore. It had 135 crore outstanding shares, while its stock closed the year at Tk 259.

According to DSE data, Square Pharmaceuticals ranks second with a market capitalisation of Tk 19,856 crore, followed by Robi Axiata at Tk 17,075 crore. BRAC Bank, Walton Hi-Tech Industries, British American Tobacco Bangladesh, Marico Bangladesh, United Power Generation, Berger Paints and LafargeHolcim Bangladesh complete the top 10.

“This shows that the market has a lower number of giant companies,” said Saiful Islam, president of the DSE Brokers Association (DBA). “When the market does not have enough good and big companies, investors do not feel interested in coming here.”

Weak investor participation is reflected in the sharp fall in beneficiary owner (BO) accounts, which dropped to 16.75 lakh at the end of fiscal year 2025-26 from 31.53 lakh on July 1, 2016.

Saiful said the market needed more large, fundamentally strong companies and suggested direct listing could be considered to bring some of them onto the exchange.

The shrinking pool of highly valued companies has become more visible after the removal of the floor price mechanism.

Beximco, which had a market value of Tk 10,385 crore only a few months ago while its share price remained fixed under the floor price, has since seen its valuation fall to Tk 2,763 crore as the stock declined sharply.

After the political changeover in August 2024, the company faced a series of setbacks. Its factories remained closed, it has not published financial statements for the past two years, and its share price dropped to Tk 28 on Thursday last week from Tk 110 two months earlier.
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FEW HIGH-VALUE COMPANIES

Shahidul Islam, chief executive officer of VIPB Asset Management, said Bangladesh simply has too few companies capable of achieving large market valuations.

“There are a few large business groups, but the number of truly large companies is limited,” he said.

According to him, multinational firms such as Standard Chartered, HSBC and MetLife could each have exceeded Tk 10,000 crore in market value had they operated as locally listed companies instead of branches. Unilever and several local banks also have similar potential.

Bangladesh has only five listed companies with market capitalisation exceeding $1 billion. Grameenphone is valued at $2.84 billion, followed by Square Pharmaceuticals at $1.61 billion, Robi Axiata at $1.38 billion, BRAC Bank at $1.23 billion and Walton Hi-Tech Industries at $1.08 billion.

By comparison, Pakistan’s largest listed company Oil & Gas Development Company has a market capitalisation of $5.17 billion. Six Pakistani companies are valued above $2 billion and nine exceed $1 billion.

Shahidul said many Bangladeshi businesses have failed to build sustainable, profit-driven enterprises. “One of the main reasons is that many businesses in Bangladesh are not run primarily to generate sustainable profits but rather to facilitate rent-seeking and asset extraction.”

“The banking sector, for example, should have produced several banks with valuations of this scale. Instead, widespread looting and capital flight have prevented them from reaching that level.”

“A company valuation is fundamentally based on its future profit potential. Therefore, if a company cannot generate strong and sustainable earnings, it will never achieve a high valuation,” he said.

He said highly valued companies usually shared several characteristics, including strong business fundamentals, genuine profitability, sound corporate governance, quality products and services, and a consistent ability to create value for shareholders.

“Unfortunately, many companies in Bangladesh lack this fundamental business mindset and good intentions. As a result, they fail to command high valuations.”

He also said many companies underreported profits to reduce tax liabilities, contributing both to Bangladesh’s exceptionally low tax-to-GDP ratio and its low market capitalisation-to-GDP ratio.

LARGE FIRMS REMAIN OFF THE MARKET

Prof Abu Ahmed, chairman of the Investment Corporation of Bangladesh (ICB), said Bangladesh’s largest companies remain much smaller than those in comparable economies.

“Leaving aside international comparisons, the gap is massive even when compared to our neighbours. For instance, compared to any of the top ten companies in India, our large companies are only a quarter of their size.”

“Even the pharmaceutical companies in Sri Lanka or Pakistan are much larger than ours,” he added. “Among the companies in our country, only Grameenphone might come close in size to similar telecom companies in Pakistan or Sri Lanka.”

Prof Ahmed said it is natural for the top 10 companies to account for around 40 percent of market capitalisation. However, the broader problem is the shortage of large listed companies.

“It is quite natural, nothing unusual at all, for the top ten companies in our market to contribute 40 percent of the total market share. In fact, this is a good thing in one aspect; at least these large companies adhere to rules and regulations and regularly pay out dividends, which works in favour of general investors.”

He said Bangladesh has several large and successful businesses that have chosen to remain outside the stock market.

He cited Unilever and Incepta as examples.

“A multinational company like Unilever is two to three times larger than others, and a pharmaceutical company like Incepta ranks second in terms of turnover, yet they are not on the stock exchange. It is vital for these kinds of good, large companies to enter the capital market.”

“One of the major limitations of our economy is that, to this day, not a single company from Bangladesh has become globally known. To change this scenario, our promising companies must not only maintain high quality but also grow significantly in size,” Ahmed concluded.

The stock market regulator is set to suspend trading in shares of non-operational companies as part of a broader market reform aimed at protecting investors and improving market integrity, said its new chief.

"There is no other market in the world where shares of closed companies continue to be traded," said Masud Khan, chairman of the Bangladesh Securities and Exchange Commission (BSEC), as the chief guest at the CMJF Talk, organised by the Capital Market Journalists' Forum (CMJF) at the CMJF Auditorium in the capital on Thursday.

"In many countries, [share] trading is automatically halted if a company's production remains suspended for three consecutive months." In Bangladesh, many companies have remained non-operational for 10-20 years but their shares are still transacted on the bourses.

The BSEC chairman said the commission had already delegated greater regulatory authority to the Dhaka Stock Exchange (DSE), enabling it to take real-time action against abnormal price movements and suspicious trading without seeking prior approval from the regulator.

Previously, the DSE needed approval from the BSEC before any action, creating scope for irregularities to continue for longer periods.

"We have empowered the stock exchanges to take immediate action and also given them the authority to determine circuit breakers. Such deregulation is essential for a more efficient market," Mr Khan said.

Meanwhile, the DSE on Thursday suspended trading of shares of two more closed companies-Usmania Glass Factory and Meghna Pet Industries-after detecting abnormal price surges.

Presently, the number of closed companies is 34.

The BSEC chief also outlined plans to introduce day netting for selected quality stocks to improve liquidity and attract more investors to the secondary market.

He said the proposal for introducing day netting had recently been submitted by the DSE Brokers Association. However, the facility cannot be implemented for all listed securities under the current market conditions.

"We are considering introducing day netting initially for quality companies. The facility may begin with around 30 fundamentally strong stocks," Mr Khan said.

The BSEC chief also described the revival of the mutual fund industry as one of his top priorities, saying a strong mutual fund sector is essential for the development of the country's capital market.

"Retail investors often lack the expertise to identify fundamentally sound companies. We want to encourage them to invest through professionally managed mutual funds," he said.

To improve investment decisions, the regulator plans to introduce an internationally benchmarked certification programme for financial advisers while revising the Mutual Fund Rules.

To strengthen oversight of brokerage houses, the BSEC will classify brokers into three risk categories-low, medium and high risk.

Brokerage firms labelled as highly risky will be subject to surprise inspections, the BSEC chief said, adding that investor approval through mobile phone or email before share transactions would be made mandatory to strengthen investor protection.

Responding to a question on bringing multinational and large domestic corporations to the stock market, Mr Khan said the BSEC will amend the rules to allow private companies to be directly listed.

"If they still do not come to the market, despite using public money through bank loans, we will fix a ratio. Companies exceeding that threshold will be required to list in the public interest," Mr Khan added.

The BSEC is also reviewing the margin rules and public issue rules to make the market more investor-friendly.

The BSEC chairman said the existing margin loan regulations contain too many restrictions, making it difficult for investors to access leverage. A draft of the revised rules will be published next week, after which obtaining margin loans is expected to become much easier for good investors, Mr Khan added.

As part of broader market reforms, the securities regulator is also preparing to simplify the initial public offering (IPO) process and introduce a direct listing framework to encourage more fundamentally strong and reputable companies to enter the stock market.

Mr Khan said the existing IPO process discourages quality companies from going public because of lengthy approval procedures and excessive documentation.

"Companies have to wait nearly one-and-a-half years and submit piles of documents for an IPO. Bank financing is much quicker. We have to simplify the IPO process if we want fundamentally strong companies to come to the market," he said.

The regulator also plans to expand direct listing facilities. Under the proposed framework, private companies will be allowed to list by offloading only 10 per cent of their shares, compared with the existing provision under which only state-owned enterprises can directly list by offering at least 25 per cent of their shares.

To deepen the debt market, government and corporate bonds will be shifted from the Alternative Trading Board to the main board of the stock exchanges, while preparations are also underway to introduce derivatives trading.

The BSEC is also gearing up to install T+1 settlement, reducing the settlement cycle from T+2. Bangladesh Bank is currently working with the commission on the implementation framework.

To strengthen market surveillance, Mr Khan said an artificial intelligence (AI)-based monitoring system would be introduced within a year. The DSE has already been instructed to bring the necessary changes for the new surveillance platform.

Mr Khan acknowledged that enforcement has long been one of the weakest aspects of Bangladesh's capital market.

He said the BSEC is considering filing criminal cases instead of civil suits when taking action against market manipulation, irregularities and fraud to make enforcement more effective.

The BSEC chief said the previous commissions had imposed around Tk 15 billion in penalties, of which only about Tk 3.3 million was recovered because most cases remained pending with the courts.

To address the problem, the commission is pursuing legal reforms, including the establishment of a dedicated HC bench for capital market cases and authority to file cases directly with the capital market tribunal to ensure quicker punishment for offenders.

The BSEC chairman also defended the commission's decision to remove the floor prices of two stocks despite criticism, saying the move was necessary to restore normal market functioning.

Referring to the recent regulatory initiatives, Mr Khan said the regulator had intervened to prevent the delisting of Beximco Pharmaceuticals from the London Stock Exchange in order to protect Bangladesh's reputation in international capital markets.

Responding to a query on the dismissal of DSE employees, Mr Khan said recruitment and termination of the exchange's employees fall entirely under the authority of the stock exchange and that the BSEC has no role in such administrative decisions.

However, he expressed hope that issues relating to dismissed BSEC employees would be resolved within this month.

Reflecting on his appointment, Mr Khan said he had initially declined the position because many people warned him that almost everyone who had previously served at the BSEC had left office with a damaged reputation.

"I accepted the responsibility only after receiving assurances from the government's top leadership that I would have complete independence to carry out reforms."

CMJF President Md Munir Hossain presided over the event, while General Secretary Ahsan Habib conducted the programme.

The country's premier bourse orchestrated a robust rally last week as the benchmark index successfully reclaimed the psychological threshold of 5,800 points, marking its highest level in nearly two years.

Buoyed by high-level political commitments toward capital market development and the prospect of significant regulatory easing, an aggressive buying spree by investors added approximately Tk6,000 crore to the total market capitalisation of the Dhaka Stock Exchange (DSE), said market participants.

The DSEX, the broad index of the Dhaka bourse, gained 60 points or 1.04% over the five trading sessions to settle at 5,804. This is the first time the index has closed above this level since September 2024.The blue-chip segment also mirrored this upbeat sentiment, with the DS30 index – comprising fundamentally strong companies – advancing by 15 points to settle at 2,177.The week's trading reflected a dominant bullish sentiment, as 251 issues managed to post gains against 122 that declined, while 15 remained unchanged.The primary catalyst for this sustained upward momentum was a dual dose of optimism from the highest levels of government and the regulator. Investor conviction was significantly restored after Prime Minister Tarique Rahman unveiled a comprehensive 17-point capital market reform agenda in parliament. Market participants perceived this move as a definitive signal that the government is prioritising the stability and growth of the financial sector, according to the market insiders.

Simultaneously, sentiment was further bolstered by reports that the newly appointed Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Masud Khan, plans to overhaul and simplify margin loan regulations within the next fortnight. Investors expect these revisions to increase the liquidity flow and make trading more accessible for retail participants.

According to the weekly market review by EBL Securities, the indices maintained a positive trajectory for most of the week, despite a brief corrective phase mid-week. While a bout of profit-taking in recently appreciated blue-chip scrips caused a slight dip in the middle of the week, the downside was effectively checked by selective buying in momentum-driven stocks. Sentiment recovered fully in the final session as investors reacted positively to the reaffirmed policy commitments, allowing the index to finish the week higher.

Sheltech Brokerage Limited noted in its weekly review that the market's performance was largely shaped by this persistent buying interest. Although selling pressure intensified during the mid-week sessions as traders moved to lock in short-term gains, the resurgence of buyers following the prime minister's announcement and the BSEC Chairman's reform roadmap enabled the benchmark index to extend its winning streak.

The brokerage observed that while geopolitical uncertainties remain a background concern, the focus has shifted firmly toward domestic structural improvements.

Market participation remained healthy throughout the week, even though the daily average turnover saw a marginal decline of 3.49%, settling at Tk1,383 crore compared to the previous week's Tk1,433 crore.

Sector-wise participation showed that the textile sector was the most active, accounting for 18.3% of the total turnover, followed by general insurance at 11.9% and pharmaceuticals at 10.1%.

In terms of returns, the travel and leisure sector emerged as the top gainer with a 12.3% surge, followed by the jute sector at 6.3% and mutual funds at 5.6%.

In the individual scrip segment, Usmania Glass led the gainers' chart with a staggering 38.7% price appreciation, followed by Emerald Oil, which jumped 36.5%, and Renwick Jajneswar, which rose by 32.6%. Other notable performers included CAPM IBBL Mutual Fund and Phoenix Finance First Mutual Fund.

On the liquidity front, Malek Spinning, Beximco Pharmaceuticals, ITC, Beximco Limited, and BRAC Bank remained the most traded stocks, indicating sustained interest in both manufacturing and high-cap banking entities.

Conversely, the losers' list was dominated by several non-bank financial institutions and textile firms. FAS Finance faced the steepest decline, shedding 14.3% of its value, followed by Intech at 13.9% and Dulamia Cotton at 9.6%.

Small and medium enterprise owners in Dhanmondi and Mohammadpur have demanded key policy reforms, including extending trade license validity to five years, lowering real estate taxes, and easing import logistics - to mitigate the rising cost of doing business.

Local entrepreneurs raised concerns over domestic trade challenges and liquidity constraints at an exchange of views "Improving the Overall Local Business, Trade and Investment Environment" organised by the Dhaka Chamber of Commerce & Industry yesterday.
Dhaka Chamber President Taskeen Ahmed highlighted that administrative hurdles, ambiguous tax rules, energy shortages, and mandatory early shopping mall closures by 7pm are severely curbing sales turnover.

Praising Finance Act 2026 initiatives, he warned that high government bank borrowing risks crowding out private sector credit.

Jonayed Kabir Sohag, chief revenue officer of Dhaka South City Corporation, pledged zero tolerance against municipal service harassment.

Regarding security, Md Tareq Zubair, deputy commissioner (crime) at Dhaka Metropolitan Police, highlighted active drives against extortionists and ongoing AI-based traffic management expansion under a "Smart Policing, Smart City" initiative.

Tax officials noted supportive measures, including quarterly VAT returns to preserve working capital and extended tax exemptions for renewable power through 2035.

Participating entrepreneurs also urged policy support for digital marketing, tax cuts on real estate signing money, expedited container clearance at the Dhaka Inland Container Depot, and easier LC access for new ventures.

The event concluded with the chamber awarding membership certificates to 39 newly enrolled business establishments.

An inspection team from the Dhaka Stock Exchange (DSE) recently visited the factory premises of AFC Agro Biotech Limited only to find its production and operations completely shut down.

The premier bourse published this finding on its website on Thursday.

According to existing securities laws, listed companies are legally obligated to immediately inform their investors and the regulators if factory operations are suspended.

However, AFC Agro Biotech failed to provide any such material information to the stock exchange regarding its closure.

Following this production halt, the total number of non-operational listed firms on the DSE has risen to 34.

The agro-based bio-pharmaceuticals and bio-chemicals producer has been plagued by operational and financial delays. AFC Agro last published its financial statements for the 2021-22 fiscal year, during which its board recommended a meager 0.50% cash dividend.

For that fiscal year, its earnings per share (EPS) stood at Tk0.22, up from Tk0.15 in the previous year, while its net asset value per share (NAVPS) was recorded at Tk18.19 as of 30 June 2022. In the preceding 2020-21 fiscal year, the company paid a 0.50% cash dividend solely to general investors, excluding sponsor-directors.

Adding to the regulatory non-compliance, the company has also stopped submitting its mandatory monthly shareholding reports since March 2024. According to its last submitted report from February 2024, sponsor-directors hold a 27.84% stake, institutional investors own 34.11%, and general investors hold the remaining 38.05% of its 11.52 crore total shares.

The company's financial distress was evident earlier in 2020 when the Bangladesh Securities and Exchange Commission (BSEC) permitted AFC Agro to issue a Tk100 crore non-convertible zero-coupon bond to repay bank loans and secure working capital. However, BSEC sources revealed that the company completely failed to raise the funds due to a total lack of bond subscriptions.

Alarmingly, AFC Agro's sister concern, Active Fine Chemicals Limited, is facing an identical fate. A prior DSE investigation team found Active Fine's factory closed as well. Once celebrated as the country's pioneer local producer of active pharmaceutical ingredients (APIs) with immense potential for the booming drug sector, Active Fine Chemicals has been in a steady decline and has failed to publish any financial disclosures since March 2023.

Shares of Daffodil Computers PLC have surged more than 308% over the past five months despite weak financial performance and the absence of any price-sensitive information (PSI), raising concerns over the stock's valuation and trading pattern.

According to data from the Dhaka Stock Exchange (DSE), the company's share price climbed from Tk41.80 on 8 February to Tk170.60 on 9 July, marking a 308.13% gain during the period.

Despite the steep rally, Daffodil Computers did not disclose any PSI that could explain the price movement. The DSE sought explanations from the company twice over the unusual rise in its share price. On both occasions, the company said it had no undisclosed price-sensitive information.

The company's financial performance also offers little support for the sharp appreciation.

According to its unaudited financial statements for the January-March quarter of 2026, Daffodil Computers reported revenue of Tk9.43 crore and a net profit of Tk23 lakh. Earnings per share (EPS) stood at Tk0.05, while net asset value (NAV) per share was Tk13.41. The company attributed the earnings decline to lower sales during the quarter.

Even so, sustained buying interest continued to push the stock higher, driving its price-to-earnings (P/E) ratio to 511.8 – one of the highest among companies listed on the country's capital market.

A P/E ratio above 500 means investors are paying more than Tk500 for every Tk1 of the company's earnings, a level that market analysts say is difficult to justify unless there are strong expectations of exceptional future profit growth.

The company had earlier announced plans to issue 32.69 million ordinary shares at Tk15 each to repay a loan from Creative International and sought shareholder approval through an extraordinary general meeting (EGM).

However, on 21 May this year, the Bangladesh Securities and Exchange Commission (BSEC) declined to approve the proposed Tk49.04 crore share issuance.

In recent months, both the BSEC and the DSE have voiced concerns over sharp price increases in fundamentally weak stocks. The regulator has instructed the stock exchanges to strengthen market surveillance and investigate unusual trading activity where share prices rise significantly without any apparent reason.

Market analysts said Daffodil Computers' price movement appears disconnected from its financial fundamentals. They argued that, in the absence of any significant business development or material disclosure, such an extraordinary rally warrants closer regulatory scrutiny and raises concerns about possible market manipulation.

They also questioned why no visible regulatory action has been taken so far, noting that only the regulator can explain the absence of enforcement if irregularities are found.

Analysts advised investors not to chase rapidly rising stocks without assessing a company's earnings, asset value, financial health and long-term business prospects, warning that investments in heavily overvalued shares carry a high risk of significant losses.

The exodus of international capital from Bangladesh's premier bourse accelerated to an alarming pace in June, as foreign investors offloaded shares worth Tk358 crore – the largest monthly net sell-off so far this calendar year.

Despite recent attempts by the central bank to simplify tax repatriation procedures, global fund managers appear to be voting with their feet, driven by deep-seated concerns over regulatory interference and the shifting direction of the country's economic management, according to the stock market analysts.

Data from the Dhaka Stock Exchange (DSE) reveals a staggering imbalance in trade, with total foreign purchases amounting to a negligible Tk6 crore against the massive sell-volume, leaving the market's international participation at a historic low.

The June outflow almost doubled the Tk161 crore in foreign sales recorded in May and was nearly three times higher than the Tk124 crore seen in April.

This persistent retreat by overseas investors comes at a time when the market is struggling to find a stable footing, as the loss of institutional foreign support drains liquidity from high-quality, large-cap scrips.

According to the DSE, portfolio investment data show that while foreign funds maintain holdings in approximately 130 firms, they actively trimmed their stakes in 19 major companies during June, while showing marginal interest in only 15 others.

The brunt of the selling pressure was felt by the market's most prestigious blue-chip entities.

BRAC Bank, long a staple of international portfolios, witnessed the most significant exit, with foreign investors offloading shares valued at a massive Tk186 crore. This move saw their stake in the bank slide from 35.89% in May to 34.69% in June.

Telecommunications leader Grameenphone followed a similar path, recording Tk42 crore in foreign sales as its international holding dropped to a mere 0.33%.

Other defensive giants such as Square Pharmaceuticals, Marico Bangladesh, and Renata also faced heavy liquidations, with sell values reaching Tk35 crore, Tk23 crore, and Tk16 crore, respectively.

Even British American Tobacco (BAT) Bangladesh and Beximco Pharmaceuticals were not spared, seeing double-digit crore outflows as global funds recalibrated their exposure to the Bangladesh market.

In sharp contrast to the aggressive selling, the appetite for fresh investment remained remarkably thin.

While foreign investors increased their holdings in a handful of companies like Shasha Denims, ITC, and Premier Cement, the monetary value of these entries was insufficient to offset the broader exodus.

Shasha Denims attracted Tk1.24 crore in new foreign capital, while ITC and Premier Cement saw inflows of approximately Tk1.10 crore and Tk1 crore, respectively. Marginal increases were also noted in LafargeHolcim Bangladesh, IDLC Finance, and Jamuna Oil, though analysts described these as minor portfolio adjustments rather than a renewed vote of confidence in the market.

Market experts and industry leaders point to a growing disconnect between the regulator's intentions and investor perceptions.

Moniruzzaman, managing director of Prime Bank Securities and senior vice president of the DSE Brokers Association (DBA), provided a blunt assessment of the situation. He told The Business Standard that renowned global investment firms are increasingly dissatisfied with the performance and policy direction of the central bank.

He further said, "In particular, the way Governor Ahsan H Mansur was removed has raised concerns among foreign investors about the future direction of the country's economy."

He also criticised the Bangladesh Bank's recent directive requiring commercial banks to maintain paid-up capital of at least Tk2,000 crore to qualify for dividend declarations.

According to Moniruzzaman, the move effectively bypasses the globally recognised Basel III framework and penalises shareholders of otherwise healthy banks. Furthermore, the central bank's decision to cap the interest rate spread – the gap between deposit and lending rates – at a maximum of 4% is being viewed as a regressive step.

"This type of regulatory interference destroys the confidence of foreign investors," he observed. He warned that the central bank's current trajectory is moving the country toward what is known as a "command economy."

In such a system, the central government or regulator controls all major economic decisions, ignoring the fundamental market forces of supply and demand to dictate exactly what is produced and how it is priced.

For international fund managers who prioritise market-driven dynamics and transparency, the shift toward a command-style approach makes the Bangladesh equity market appear increasingly high-risk and unattractive.

The irony of the situation is that this massive sell-off occurred despite a landmark policy shift aimed at doing exactly the opposite.

On 20 May, the Bangladesh Bank issued a circular eliminating the long-standing requirement for an auditor's certificate for every single transaction made by non-resident investors.

Previously, foreign investors were forced to obtain a certificate from a chartered accountant for every trade to determine capital gains tax before funds could be reinvested or repatriated – a cumbersome process that caused significant delays and increased compliance costs.

Under the new rules, authorised dealer banks now handle the tax withholding directly from sale proceeds, allowing for immediate credit to Non-Resident Investor Taka Accounts (NITA).

Prime Minister Tarique Rahman on Wednesday unveiled a wide-ranging reform agenda to restore stability in the country’s stock market, rebuild investor confidence and bring to justice those responsible for market manipulation that left thousands of investors financially ruined.
Replying to a written question during the 21st sitting of the first budget session of the 13th Jatiya Sangsad, the prime minister said the government has a plan to identify all those responsible for the prolonged decline of the stock market and take legal action against them.

He said investigations into stock market scandals have already been conducted through the Anti-Corruption Commission (ACC), leading to the identification of several individuals and the filing of cases against them. Investigations are continuing to determine whether other individuals or institutions were involved.

The parliamentary sitting, chaired by Speaker Hafiz Uddin Ahmed, took up the question raised by lawmaker ABM Mosharraf Hossain on behalf of Khulna-4 MP SK Azizul Bari.

The prime minister said various experts, investors’ associations and investigative bodies had examined the reasons behind the persistent downturn of the capital market during the previous Bangladesh Awami League government.Stock Market Research

According to those findings, the principal causes included market manipulation and artificial price inflation or suppression, irregularities in initial public offerings (IPOs), bond issues and other securities, weak regulatory oversight, delayed enforcement actions, poor corporate governance, lack of transparency in financial reporting, limited participation by institutional investors, declining investor confidence, policy inconsistencies and the absence of an investor-friendly tax regime, he added.

He said the Bangladesh Securities and Exchange Commission (BSEC) has imposed fines amounting to Tk 14.97 billion on individuals and institutions involved in market manipulation, irregularities and corruption. Reports prepared by investigation committees identifying those responsible have also been forwarded to the ACC for further legal action.

The prime minister said the government is determined to restore stability in the capital market and strengthen investor confidence by promoting good governance, transparency, accountability, greater market depth through product diversification and wider investor education.

As part of that effort, he announced a series of priority programmes, saying that, “The government appointed a new BSEC chairman and three commissioners on June 4 to strengthen the regulator with experienced professionals. Soon after taking office, the new commission withdrew the long-standing floor price mechanism.”

The government will encourage profitable state-owned enterprises to list on the stock exchanges through direct share offloading, while creating opportunities for multinational corporations and other large-cap companies to do the same, the PM said.Investing

“It will also encourage fundamentally strong companies, including small and medium-sized enterprises (SMEs), to enter the capital market.”

“To curb market manipulation, legal protection and incentives will be introduced for whistleblowers reporting irregularities.”

“The government also plans to introduce a new policy for the enlistment of approved auditors and audit firms to strengthen the auditing of listed companies and market intermediaries.”

“Other initiatives include launching a Foreign Portfolio Investment (FPI) onboarding portal, reforming regulations in line with international standards, introducing a one-stop securities custodian service, reducing capital gains tax, abolishing double taxation on dividend income and digitalising the process of opening Beneficiary Owner (BO) accounts and repatriating investment capital.”

The government will amend securities laws to allow direct filing of cases before special capital market tribunals and establish both a Capital Market Reform Commission and a Special Investigation Commission to oversee reforms and investigate irregularities, the prime minister added.

The reform package also includes the use of blockchain technology to expand market infrastructure and investment products, the introduction of online and mobile-based BO account opening and trading through electronic Know Your Customer (e-KYC) services, investment-friendly tax reforms, banking and mobile financial services (MFS)-based BO account transactions, artificial intelligence-powered market surveillance, stronger corporate governance standards, enhanced investor protection measures, modernisation of securities laws and trading of government securities—including Treasury bonds, Treasury bills and government Sukuk—through the stock exchanges to broaden retail investor participation

Foreign portfolio investors (FPIs) are steadily pulling out funds from Bangladesh's equity market as they have been moving assets to developed markets amid persistent macroeconomic challenges stemming from geopolitical tensions.

Net investment by overseas investors in the 12 months to May this year stood at negative Tk 4.30 billion, meaning they sold more shares than they bought. Foreign investors purchased shares worth Tk 21.12 billion, while selling shares worth Tk 25.42 billion during the period, according to market data.

Market analysts said the sustained outflow reflects a cautious stance among foreign investors as uncertainty over global economic growth, geopolitical conflicts and relatively attractive returns in developed markets continue to weigh on investment decisions.

Md Akramul Alam, head of research at Royal Capital, said multiple factors, including persistent macroeconomic challenges and global factors, have driven the prolonged foreign fund outflow.

"The overall economic activity remained sluggish, while profitability of major listed companies, including multinational firms, stayed subdued due to high input costs," he said.

The private sector credit growth remained low at 4.98 per cent in May this year, reflecting weak business confidence and tighter lending conditions.

The prospect of a sharp recovery in private sector credit demand looked slim, and that discouraged fresh investments, said Mr Alam.

Moreover, the US-Israel war on Iran has already triggered volatility in global oil prices, raising concerns about inflation and broader economic spillovers in Bangladesh.

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

The trend is not unique to Bangladesh. Global fund managers withdrew a record US$137.36 billion from major Asian equity markets during the first half of 2026, marking the fastest six-month capital outflow from the region since at least 2010 after strong gains over the previous two years, according to international media reports.

The outflows reflect concerns over slowing global growth, geopolitical tensions across regions and volatile crude oil prices, reducing investors' appetite for frontier and emerging markets.

Countries including India, South Korea, Taiwan, Thailand, Indonesia, Malaysia, the Philippines and Vietnam have also witnessed foreign fund withdrawals, although the scale has varied across markets.

Analysts said one of the key drivers behind the shift is the relatively higher return available in the United States. Elevated US Treasury yields have encouraged many global investors to move funds into American government securities, which offer attractive returns with lower risk.

The strength of the US dollar has further reinforced the trend by making developed markets more attractive than emerging economies.

Mr Alam also pointed to a global transition in investment towards artificial intelligence-focused companies, reducing portfolio allocations to markets such as Bangladesh and India, which are perceived to be lagging in the AI-driven investment cycle.Economic Trend Analysis

"This trend could reverse once the AI trade, which appears to be in bubble territory, eventually cools off," he said.

Mir Ariful Islam, managing director and chief executive officer of Sandhani Asset Management, attributed the foreign fund outflow to weak investor confidence, a strong US dollar and instability in the financial sector.

When the local currency weakens, foreign investors incur losses as the value of their assets falls even when share prices remain unchanged.

Moreover, foreign investors typically seek a stable, predictable, and long-term policy environment to ensure the safety of their investments, he said.

The newly elected government has yet to present a clear economic roadmap, while the Middle East conflict has further increased global uncertainty.

"Foreign investors are likely to look for greater policy clarity and consistency before increasing their exposure to Bangladesh's equity market," Mr Islam told The FE over the phone.

When it comes to investing in stocks in Bangladesh, foreigners usually prefer multinational companies. Currently, they are not interested in putting their money into these companies either, owing to lower-than-expected earnings in recent quarters.

After a significant decline in annual profit in 2025, the aggregate profits of the 11 multinational companies fell 6 per cent year-on-year to Tk 12.20 billion in January-March this year, according to company disclosures.

BAT Bangladesh's profit nosedived to Tk 5.84 billion in 2025, the lowest since its listing, due to lower sales, higher excise duty, and one-off costs for its Dhaka factory closure.

The tobacco leader's first quarter profit also dropped 34 per cent year-on-year to Tk 2.10 billion through March this year.

As a result, BAT's foreign stake dropped from 3.73 per cent to 2.99 per cent between June last year and June this year.

Grameenphone, the largest stock in terms of market capitalisation, reported its lowest annual profit in 2025 in eight years. However, its first quarter profit grew 4.4 per cent through March this year.

In the meantime, foreign stakes in GP fell to 0.33 per cent in June this year from 0.98 per cent in June last year.

Among the local firms, Olympic Industries experienced a similar trend. Its foreign stake fell to 27.62 per cent in June this year from 34.2 per cent in June last year.

Despite persistent selling of foreign holdings, Mr Islam said the domestic stock market has remained resilient in recent months, supported by strong participation of local institutional and retail investors amid falling Treasury bond yields.

However, he said foreign investors are closely monitoring Bangladesh. "Portfolio investment may pick up again if macroeconomic indicators improve and geopolitical tensions ease."

Prime Minister Tarique Rahman has said the government will identify those responsible for the continued stock market downturn that caused losses to thousands of investors and bring them to justice.

The government is also determined to restore investor confidence through a fair investigation and trial of the irregularities and manipulations that happened during the Awami League regime, he said while responding to a question from Khulna-4 MP Sk Azizul Baree Helal during the budget session of the Jatiya Sangsad, with Speaker Hafiz Uddin Ahmad in the chair today (8 July).

Tarique said the Anti-Corruption Commission had already conducted investigations into allegations of capital market manipulation, leading to the identification of several suspects and the filing of cases against them.

Explaining the reasons behind the prolonged decline in the stock market during the Awami League's tenure, the prime minister said findings from experts, investor organisations and investigative agencies pointed to a range of structural weaknesses.

These include market manipulation, artificial inflation and suppression of share prices, irregularities in initial public offerings, bonds and other securities, weak regulatory oversight, poor corporate governance, lack of transparency in financial disclosures, limited participation by institutional investors, declining investor confidence, inconsistent policies and the absence of a capital market-friendly tax regime.

Tarique said the Bangladesh Securities and Exchange Commission has already imposed fines amounting to Tk1,497 crore on individuals and institutions found involved in market manipulation, irregularities and corruption.

He added that probe body reports had also been forwarded to the anti-graft commission for further legal action against those responsible.

The premier said a new securities and exchange commission has already been formed with the appointment of an experienced chairman and three commissioners. Following the formation, the long-standing floor price mechanism was withdrawn to improve market efficiency.

Tarique outlined a series of reform initiatives designed to deepen the capital market and make it more investor-friendly. These include facilitating the direct listing of profitable state-owned enterprises, multinational companies and fundamentally strong firms, encouraging small and medium-sized enterprises to raise funds from the market and introducing legal protection for whistleblowers who report market manipulation.

Replying to two separate questions on the defence, the premier said the government plans to spend nearly Tk86,000 crore over the next decade to modernise the Bangladesh Army as part of a broader initiative to strengthen national security.

The government also plans to significantly enhance the capabilities of the navy by acquiring modern frigates, corvettes, offshore patrol vessels and submarines, while fourth-generation multirole combat aircraft, attack helicopters, medium-range missile defence systems, anti-drone technology and electronic warfare systems will be procured for the air force.

Besides, a plan to develop a "Made in Bangladesh Defence Industry" through a national defence industrial policy has been taken, alongside the establishment of Defence Industrial Zones, he said.

Tarique said the implementation of these plans would enhance the army's overall combat capability. The programmes include acquiring new tanks and armoured fighting vehicles to improve ground warfare capability, alongside modern artillery rocket systems, anti-tank weapons, and short- and medium-range air defence systems to strengthen precision strike and air defence capabilities.

He also said that strategic and operational mobility will be improved by expanding the army's air assault capability, air transport capacity for troops and equipment, and riverine transport operations.

The Dhaka Stock Exchange has downgraded Intech Limited to the "Z" category - commonly known as the junk stock segment - following a regulatory directive after the company's accumulated losses wiped out its entire paid-up capital.

The regulatory move, effective from today (8 July), follows a mandatory policy by the Bangladesh Securities and Exchange Commission requiring companies with negative retained earnings exceeding their total paid-up capital to be shifted to the lowest trading tier.

The announcement triggered an immediate sell-off, causing Intech's share price to hit the lower circuit breaker, plunging 9.77% to close at Tk31.40. Under the BSEC (Margin) Rules 2025, stockbrokers and merchant bankers are now strictly prohibited from providing margin loan facilities to investors for purchasing Intech securities.

Capital erosion deepens financial distress

According to the company's unaudited financial statements for the first nine months of the fiscal 2025-26, Intech reported negative retained earnings of Tk33.58 crore during the July-March period, exceeding its paid-up capital of Tk31.32 crore.

The capital erosion pushed the company's net asset value (NAV) per share into negative territory at negative Tk0.72.

Its operating performance also deteriorated during the period. Revenue declined by 12% to Tk0.55 crore, while the company posted a net loss of Tk0.87 crore.

Years of weak performance

The downgrade marks the latest setback for the company following several years of financial difficulties.

Intech has reported recurring losses since 2020, including losses of Tk2.32 crore in FY23 and Tk1.18 crore in FY25. Although it returned to a modest profit of Tk0.50 crore in FY24 and declared a 0.20% cash dividend, the recovery proved short-lived.

In its audit report for FY25, the company's statutory auditor expressed "substantial doubt" about Intech's ability to continue as a going concern, citing negative shareholders' equity of Tk1.39 crore as evidence of severe financial weakness.

Management cites legacy issues

Listed on the stock exchanges in 2002, Intech restructured its board in November 2021 to include individuals associated with major business groups, including S Alam Group and KDS Group.

Responding to the auditor's observations, the current management said the company's financial problems stemmed from "fabricated and overstated assets" inherited from the administration before 2020.

The company said it had requested the BSEC to appoint a special audit to determine the full extent of the alleged irregularities and had restated its historical financial statements. It also said directors had been providing interest-free loans to support the business while pursuing new projects and operational improvements aimed at restoring profitability.

The benchmark index of the Dhaka Stock Exchange (DSE) extended its correction for a second consecutive session today (8 July) as investors continued to book profits in blue-chip stocks following their recent gains.

While selective buying interest in low-cap and momentum-driven stocks provided some support, it was insufficient to offset the selling pressure in heavyweight counters, leaving the market in negative territory at the close of the day, according to market insiders.

The broad DSEX index shed 11 points, or 0.19%, to settle the session at 5,770. The downturn was also evident in the blue-chip segment, where the DS30 index slipped by 12 points to finish at 2,169.

Market breadth remained skewed toward the bears, as 192 issues declined compared to 145 that managed to advance, while 56 scrips remained unchanged on the DSE floor.

According to the daily market review by EBL Securities, the indices opened under pressure as profit-taking weighed on investor sentiment from the outset. Although buying interest picked up in the second half of the session, largely driven by demand for attractively valued small-cap stocks, persistent selling in heavyweight constituents kept the benchmark index in the red.

The market's volatility underscores investors' cautious approach as they assess whether the recent rally can be sustained.

Market participation saw a notable contraction, with daily turnover on the DSE dropping by 17% to stand at Tk1,156 crore, compared to the previous session's volume.

On the sectoral front, the textile sector dominated trading activity, accounting for 21% of the day's total turnover. This was followed by general insurance at 9.6% and the engineering sector at 8.8%.

In terms of sectoral returns, the travel and leisure sector emerged as the top performer with a 2.8% gain, followed by information technology and textiles.

On the flip side, the financial institutions sector faced the steepest correction of 1.3%, while the cement and banking sectors also recorded notable price dips, acting as the primary drags on the index.

Individual stock performance was highlighted by Sea Pearl Beach Resort, which topped the gainers' list with a 10% price surge. Other significant gainers included Genex Infosys, Emerald Oil, and Sharp Industries.

On the losing end, Intech Limited hit the lower circuit breaker, shedding 9.77% of its value, while Fareast Finance and Familytex also featured among the top losers.

In terms of liquidity, Malek Spinning emerged as the most traded stock, followed by BRAC Bank, Sea Pearl Beach Resort, and IPDC Finance.

The bearish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) fell by 33 points to finish at 9,481. The broad CASPI index at the port city bourse ended 47 points lower at 15,485.

Turnover at the CSE also witnessed a decline of 13%, settling at Tk26.89 crore.

Appliance maker Singer Bangladesh's revenue was Tk670 crore in 2012, yielding a net profit of Tk49 crore. Thirteen years later, although its revenue surged to Tk2,133 crore, the company plunged into a staggering net loss of Tk225 crore. The downward course has continued into this year.

This raises a critical question: How did a former market giant dive so deep into the red, failing to pay a dividend from its 2025 earnings for the first time in its history? As the accumulated losses exceeded its capital, the Dhaka Stock Exchange (DSE) downgraded the company's shares to the junk "Z" category.

An analysis of the company's financial reports by The Business Standard reveals that Singer Bangladesh has been crippled by escalating borrowing costs that completely wiped out operational profits gained from higher sales.

The company, majority-owned by Turkish conglomerate Arcelik, and listed on the DSE, reported a net loss after tax of Tk225 crore for 2025, widening significantly from a loss of less than Tk50 crore a year ago.

Earnings per share dropped further into negative territory to Tk22.56 from negative Tk4.91 in 2024.

The losses came despite a 14.3% increase in full-year revenue to Tk2,133 crore, driven by the transition to production at its new manufacturing facility. Gross profit also rose to Tk516 crore, up from Tk471 crore a year earlier.

However, an intense financing burden crippled the company's bottom line, according to the annual report. Finance costs skyrocketed to Tk322 crore in 2025 from Tk143 crore the previous year, far more than the company's modest operating profit of Tk55 crore.

According to the company's annual report, Singer's reliance on short-term debt to fund its capital investment and operations triggered the liquidity strain. The company's secured short-term borrowings, including bank overdrafts, soared to Tk1,394 crore from Tk1,191 crore a year ago.

Singer utilised credit facilities from a consortium of commercial banks. Its short-term borrowings included Tk305 crore from Commercial Bank of Ceylon, Tk249 crore from Pubali Bank, including a Tk99 crore overdraft, Tk177 crore from Dutch-Bangla Bank and Tk100 crore from Prime Bank.

Direct interest payments on borrowings and leases swallowed up Tk264 crore in cash outflows during the year. Consequently, Singer's closing cash and cash equivalents position sat deep in negative territory at Tk1,328 crore, offset by bank overdrafts.

Net operating cash flow per share did provide a silver lining, recovering to a positive Tk14.56 per share from a negative Tk7.96 in the previous year on the back of stronger turnover collection.

The company's board did not immediately outline a restructuring plan for its short-term debt portfolio to combat high local interest rates, the company said in its annual report for 2025.

The report also said despite revenue growth in 2025, profitability remained under significant pressure. Elevated inflation and higher input costs limited gross profit growth to 4%, reaching nearly Tk516 crore.

Consequently, gross margin contracted from 27% to 24%, reflecting the company's constrained ability to fully pass on cost increases to consumers in a competitive market.

"Nevertheless, the gross margin remains broadly competitive within the industry, underscoring underlying pricing resilience," says the annual report.

On the dividend, the report said that due to the net loss experienced during the year and the increased leverage resulting from capital expenditures, the board has decided not to propose a dividend for 2025.

On the outlook, Singer Bangladesh said that despite near-term headwinds, it remains focused on long-term growth. The commissioning of its new manufacturing facility is expected to lower costs, increase localisation and improve product quality, while strengthening its product portfolio to better serve Bangladesh's growing middle-income consumers with rising purchasing power.

The Business Standard sought comments from Kazi Ashiqur Rahman, company secretary of Singer Bangladesh, but he neither responded to text messages nor answered repeated telephone calls.

Industry insiders say Singer Bangladesh's turnaround is being hampered by fierce competition from local manufacturers, particularly Walton and Pran-RFL.

According to a Walton official, the company now holds around 70% of the domestic refrigerator market, a segment in which Singer was once a dominant player. At the same time, Pran-RFL has been steadily expanding its presence in the home appliances market through an aggressive rollout of new retail outlets.

What Singer's Q1 financials reveal

Singer Bangladesh's total turnover edged up to Tk578 crore in the first quarter of 2026 from Tk559 crore a year earlier, according to its quarterly financial statement filed with the Dhaka Stock Exchange.

The growth was driven entirely by exports. While domestic revenue slipped marginally to Tk555 crore from Tk558 crore, export earnings reached Tk21.7 crore, compared with virtually nil in the corresponding period of 2025.

Despite the higher turnover, operating profit fell to Tk15.8 crore from Tk17.3 crore, as operating expenses rose to Tk127 crore from Tk119 crore.

The biggest drag, however, came from financing costs. Net finance costs surged nearly 60% year-on-year to Tk67 crore from Tk47 crore, while total finance expenses exceeded Tk72 crore due to the company's substantial borrowing requirements.

As a result, Singer's net loss widened to nearly Tk56 crore in the January-March quarter, compared with Tk35 crore a year earlier. Its loss per share also deepened to Tk5.60, from Tk3.50 in the same period last year.

The weak earnings further dented investor confidence. Yesterday, after the company disclosed its quarterly results, there were virtually no buyers for Singer shares on the DSE, reflecting bearish sentiment over its deteriorating financial performance.

The Bangladesh Securities and Exchange Commission (BSEC) has approved United Commercial Bank PLC (UCB) to raise Tk775.18 crore through a rights share offering, enabling the bank to meet the central bank's minimum paid-up capital requirement for dividend eligibility.

The approval came at the regulator's commission meeting yesterday, according to a BSEC press release.

Under the offer, UCB will issue 77.51 crore rights shares at a face value of Tk10 each, with shareholders entitled to one rights share for every two existing shares. The bank said the proceeds will be used to strengthen its capital base and support business operations.

The rights issue will increase UCB's paid-up capital from Tk1,550.37 crore to Tk2,326 crore, taking it above the Tk2,000 crore minimum threshold recently set by Bangladesh Bank for commercial banks seeking to declare dividends.

For the January-March quarter of 2026, UCB reported consolidated earnings per share (EPS) of Tk0.07, up from a restated Tk0.04 in the same period a year earlier. The bank attributed the improvement to stronger performance by its subsidiaries.

However, consolidated net operating cash flow per share (NOCFPS) fell to negative Tk4.22 from positive Tk6.98 a year earlier. According to the bank, the decline resulted from higher loan disbursements and investments relative to deposit growth, alongside lower net interest income.

As of 31 March 2026, UCB's consolidated net asset value (NAV) per share stood at Tk25.97.

At the same meeting, the BSEC also approved the draft prospectus of the Blue-Wealth First Stable Return Fund, an open-end mutual fund with an initial target size of Tk30 crore.

Its sponsor, Blue-Wealth Assets Limited, has contributed Tk3 crore, while the remaining Tk27 crore will be raised from general investors. The fund's unit price has been fixed at Tk10.

Blue-Wealth Assets Limited will serve as the fund manager, while Sandhani Life Insurance Company and Commercial Bank of Ceylon PLC will act as the trustee and custodian, respectively.

The total market capitalisation of the Dhaka Stock Exchange (DSE) crossed the Tk7 lakh crore mark today (6 July) for the first time in more than three months, signalling a continued recovery in investor confidence amid sustained gains in the country's stock market.

The market capitalisation of the country's premier bourse rose to over Tk7 lakh crore, the highest level since 16 March, when it stood at Tk7.06 lakh crore. The milestone comes as the benchmark DSEX index has extended its recent rally, supported by expectations of market-friendly regulatory reforms and a series of policy initiatives aimed at strengthening the capital market, according to analysts.

They said reclaiming the Tk7 lakh crore threshold carries strong psychological significance, reflecting a rebound in the overall value of listed companies as investors continue to accumulate fundamentally strong blue-chip and large-cap stocks after a prolonged bearish spell.

The DSEX advanced 12 points, or 0.22%, to close at 5,799 today, hovering just below the key 5,800-point resistance level. The blue-chip DS30 index also edged up one point to settle at 2,192.

Market breadth remained slightly positive, with 166 issues advancing, 155 declining and 71 remaining unchanged.

Despite the gains, trading activity moderated. Daily turnover declined 7% to Tk1,416 crore from the previous session, indicating some investors opted to book profits following the market's recent rally.

According to Sheltech Brokerage Limited's daily market review, selective buying in heavyweight and fundamentally strong stocks continued to drive the market higher.

The brokerage said optimism over recent policy measures aimed at deepening the capital market and improving transparency supported investor sentiment. Although profit-taking emerged midway through the trading session, sustained buying interest in selected large-cap stocks outweighed the selling pressure, allowing the benchmark index to extend its winning streak.

Sector-wise, the textile sector accounted for the largest share of turnover at 16.8%, followed by insurance at 12.67% and pharmaceuticals at 12.17%.

An analysis by BRAC EPL Stock Brokerage showed that most major sectors ended in positive territory. The fuel and power sector led the gains, rising 1.08%, followed by telecommunications, which added 0.63%, and food and allied, up 0.57%.

The non-bank financial institution (NBFI) sector was the day's worst performer, slipping 0.25% as investors remained cautious over the sector's ongoing liquidity concerns.

The positive momentum also extended to the Chittagong Stock Exchange (CSE). The Selective Categories' Index (CSCX) climbed 42 points to 9,488, while the All Share Price Index (CASPI) gained 73 points to close at 15,489. However, turnover at the port city bourse plunged 75% to Tk16.59 crore.

Uttara Finance and Investments Limited has r restated its 2019 financial statements, posting a consolidated net loss of Tk308 crore in place of an earlier reported profit after a Bangladesh Bank-ordered forensic audit uncovered widespread irregularities in the non-bank financial institution's accounts.

The revised financial statements, published through the Dhaka Stock Exchange (DSE) today (6 July), showed a consolidated loss per share (EPS) of Tk23.43, a restated net asset value (NAV) per share of Tk29.55 and net operating cash flow per share (NOCFPS) of Tk13.24 for the year ended 31 December 2019.

The restatement marks a sharp reversal from the original audited accounts, which had reported a consolidated net profit of Tk118 crore in 2019, up 14% from the previous year. Based on those results, the board had recommended a 15% cash dividend and a 5% stock dividend.

However, Bangladesh Bank later rejected the financial statements audited by SF Ahmed and Co after a special audit by KPMG Bangladesh uncovered discrepancies involving about Tk5,300 crore in the company's financial records.

The audit, conducted under the central bank's Resolution and Recovery Department (RRH), prompted the company to restate its financial statements in line with regulatory directives.

Uttara Finance also released revised financial statements for 2020 and 2021, showing continued financial deterioration.

For the year ended 31 December 2020, the company reported a consolidated loss per share of Tk35.98, while NAV per share turned negative at Tk9.26. Net operating cash flow per share stood at Tk12.04.

In 2021, it posted a consolidated loss per share of Tk23.48. NAV per share further declined to negative Tk32.74, while net operating cash flow per share fell to negative Tk20.38.

The company told the stock exchange that AGMs for 2020 and 2021 have become time-barred due to delays in finalising audited financial statements. It plans to seek High Court permission to hold the overdue AGMs after completing and auditing its pending financial statements for 2022-2025. Record dates and AGM schedules will be announced after court approval.

Following the financial irregularities, Bangladesh Bank dissolved the NBFI's sponsor-director board in 2022 and appointed a new board to restore governance, transparency and accountability.

The company remains in the "Z" category on the stock exchange for failing to hold annual general meetings within the stipulated timeframe.

As of June 2026, sponsors and directors held 44.44% of the company's shares, institutional investors 31.71%, foreign investors 7.82% and general investors 16.03%.