The Dhaka Stock Exchange (DSE) extended its losing streak for the third consecutive session yesterday (7 December) as cautious investors stayed on the sidelines amid persisting political uncertainty and fresh concerns over the decision to wind up nine non-bank financial institutions (NBFIs).

Amid these concerns, market turnover dropped by 26.37% to Tk268 crore, down from Tk364 crore in the previous session, marking the lowest daily turnover in the past six months. Previously, the last time turnover fell below this level was on 15 June this year, when transactions stood at Tk263.03 crore. Out of 387 traded issues, 110 advanced, 209 declined, and 68 remained unchanged.

The benchmark DSEX index declined by 14 points to close at 4,873, while the blue-chip DS30 index fell 6 points to settle at 1,886. The Shariah index DSES also shed 4 points, ending at 1,021.

Market insiders say that political uncertainty ahead of the national election schedule announcement has heavily influenced investor sentiment. Major brokerage houses are seeing higher net selling than net buying, reflecting weak confidence. Analysts also note that no short-term bullish sentiment is visible at this stage. Meanwhile, the Bangladesh Bank's recent decision to wind up nine NBFIs has further delivered a sharp blow to overall market sentiment.

According to insiders, the announcement sparked panic across the market, prompting many investors to rush to sell shares. Such a stringent regulatory move has frustrated general investors, who have already been facing losses for an extended period.

Market insiders also note that expectations surrounding the upcoming national elections could eventually boost investor sentiment, particularly after the election schedule is announced. Political clarity generally encourages stronger market participation, which can help stabilise and positively influence the market.

They add that after several consecutive weeks of price declines, the market has become significantly oversold. As a result, many fundamentally strong stocks are now being traded at undervalued levels. Some cautious but opportunity-driven investors are taking fresh positions in anticipation of potential future gains.

Observers also point out that the recent downturn was not driven solely by political uncertainty. The enforcement of new margin loan regulations forced many investors to sell their shares, intensifying the decline and adding further pressure on overall market prices.

Among the top gainers, International Leasing rose by 10.61%, followed by Shyampur Sugar by 10% and Zeal Bangla Sugar by 9.99%. On the losing side, FAS Finance dropped by 10%, Khulna Printing by 9.68%, and BD Thai Aluminium by 9.30%.

Orion Infusion, Khan Brothers PP Woven Bag, and Dominage Steel Building were the most actively traded stocks.

Most large-cap sectors posted negative performance. Fuel & Power experienced the highest loss at 0.87%, followed by Engineering (-0.53%), Pharmaceutical (-0.18%), NBFI (-0.18%), Bank (-0.18%), and Telecommunication (-0.10%). The only sector with a positive return was Food & Allied, which gained by 0.71%. Block trades contributed by 4.9% of the overall market turnover.

The Chittagong Stock Exchange (CSE) also closed lower, with the CSCX index dropping by 37 points to 8,436, and the CASPI index losing by 63 points to close at 13,685, reflecting negative sentiment across both major bourses.

The financial health of three state-owned oil companies – Jamuna Oil, Padma Oil, and Meghna Petroleum – has come under scrutiny after auditors raised serious concerns regarding the recoverability of a staggering Tk2,340 crore currently locked in FDRs with five recently merged banks.

The external auditors for these listed entities highlighted the precarious situation in their reports for the FY25, noting that despite the maturity of many of these deposits, the banks have failed to encash them due to a severe liquidity crisis.

The funds belonging to these blue-chip companies are trapped in First Security Islami Bank, Exim Bank, Global Islami Bank, Social Islami Bank, and Union Bank. These five lenders, which faced immense financial strain, have recently been merged into a single entity under the directive of the central bank.

According to the breakdown provided in the audit reports, Jamuna Oil has the highest exposure with a total of Tk1,460 crore stuck in these troubled institutions. Meghna Petroleum follows with Tk540 crore, while Padma Oil has Tk339 crore tied up.

These investments were generating interest at rates ranging from 10% to 12.5%, a lucrative stream of non-operating income that has now become a source of significant financial risk.

The financials were prepared by prominent auditing firms. Hoda Vasi Chowdhury and Co, alongside MM Rahman and Co, audited Jamuna. Hoque Bhattacharjee Das and Co, and Hussain Farhad and Co were responsible for Meghna, while MM Rahman and Co and Mahmud Sabuj and Co audited Padma.

In their respective reports, these auditors stated that the banks were merged due to a severe liquidity crisis following directives from the central bank. While the oil companies have recognised the accrued interest from these FDRs in their books, the principal amounts remain due as of 30 June 2025.

The auditors further disclosed that following the maturity dates of these FDRs, the three oil companies had formally issued letters to the respective banks demanding encashment of the investments. However, the banks failed to provide a positive response or release the funds, citing an acute shortage of liquidity.

Consequently, the auditors opined that considering the investment has fallen into a high-credit-risk category, the companies should recognise an allowance for credit loss in line with the International Financial Reporting Standard (IFRS).

Failure to do so could result in an overstatement of the companies' assets, they reported.

Breakdown of Tk2,340cr

Jamuna Oil's Tk1,460 crore exposure includes Tk720 crore in First Security Islami Bank, Tk432 crore in Global Islami Bank, Tk289.49 crore in Union Bank, and Tk18.64 crore in Social Islami Bank.

Besides, the company has Tk74 crore in Bangladesh Commerce Bank and Tk7 crore in National Bank, institutions that have also faced challenges.

Meghna's Tk540 crore comprises Tk211.73 crore in Global Islami Bank, Tk169 crore in First Security Islami Bank, and Tk159.42 crore in Union Bank. It also has an exposure of Tk7.50 crore in Padma Bank.

Padma's Tk339 crore includes Tk152 crore in Exim Bank, Tk79.53 crore in Global Islami Bank, Tk55.85 crore in Union Bank, Tk35.57 crore in First Security Islami Bank, and Tk16 crore in Social Islami Bank.

Like Jamuna, Padma Oil also has funds stuck in National Bank amounting to Tk6.04 crore.

State intervention key to recovery

Mohammad Jobaer Chowdhury, deputy general manager (finance) of Jamuna Oil, told The Business Standard that the situation is now dependent on state-level intervention.

He explained that since the government has taken responsibility for the five banks through the merger process, the company is waiting for a government decision to recover the funds kept in these institutions.

He noted that while the previous management made the decision to place FDRs in these specific banks, the current management has been taking initiatives to recover the funds, though these efforts have not yet yielded success.

The root cause of this massive exposure appears to be deeply entrenched in the political economy of the previous regime, added Jobaer Chowdhury.

A senior officer at Meghna Petroleum, speaking on condition of anonymity, said the company has recently formed a committee to recover the funds and is currently negotiating with relevant government concerns.

He said that after the fall of the previous government, the new management managed to recover a partial amount. He noted that their total FDR exposure was originally over Tk2,000 crore, but following quick initiatives by the current management, the amount was brought down to Tk500 crore.

The official shed light on the pressure faced by the state-run firms, alleging that the previous management kept these massive amounts in those specific banks following persuasion and lobbying from the ministry and the banks' owners.

He claimed that the then-secretary of the Ministry of Power, Energy, and Mineral Resources under the Awami League regime actively lobbied for these deposits. In such cases, the company had little choice but to comply to avoid conflict with high-level authorities.

Flaw in business model

Financial analysts have pointed out a fundamental weakness in the business model of these state-run giants.

According to their financial statements, these companies often generate more income from interest on FDRs than from their core business operations. Their primary mandate is to distribute fuel across the country, for which they earn a fixed margin set by the government per liter of fuel supplied.

However, the reliance on financial income has created a complacency regarding risk management.

A senior analyst at a leading brokerage firm commented that this situation has exposed the companies' weak corporate governance and inability to foresee financial vulnerabilities.

He argued that the management of those oil firms should have conducted a rigorous risk analysis much earlier, well before the banks reached the brink of collapse.

He warned that the liquidity position of the state-run oil firms might be squeezed owing to counterparty credit loss or these blocked funds, and income from bank deposits is likely to decline significantly in the future, impacting overall profitability and dividend-paying capacity.

Cenbank assures deposits protected

The five lenders have been legally amalgamated into a newly formed entity named Sommilito Islami Bank, which has commenced its operations.

Although the new bank has begun its journey with a fresh license, it has not yet fully finalised its corporate structure.

The new entity has been established with a paid-up capital of Tk35,000 crore. Of this amount, the government is providing Tk20,000 crore, while the remaining Tk15,000 crore is being raised through the conversion of deposits into shares.

Mohammad Ayub Miah has been appointed as the chairman of the new bank, and its head office is located at Sena Kalyan Bhaban in Dhaka's Motijheel.

Addressing the anxiety surrounding the merger, the Bangladesh Bank assured depositors that none of them will lose their money and that all deposits will remain fully protected.

The central bank stated that the new entity will become the country's largest state-owned Shariah-based bank. Under the Deposit Protection Ordinance, deposits up to Tk200,000 will be fully protected in the first phase, with payments to depositors expected soon after the merger is completed.

Oil prices firmed on Thursday after Ukrainian attacks on Russia's oil infrastructure signalled potential supply constraints, and stalled peace talks tempered expectations of a deal restoring Russian oil flows to global markets, though weak fundamentals kept gains limited.

Brent crude rose 41 cents, or 0.65 percent, to $63.08 at 0659 GMT, while US West Texas Intermediate rose 45 cents, or 0.76 percent, to $59.40.

Ukraine hit the Druzhba oil pipeline in Russia's central Tambov region, a Ukrainian military intelligence source said on Wednesday, the fifth attack on the pipeline that sends Russian oil to Hungary and Slovakia. The pipeline operator and Hungary's oil and gas company later said supplies were moving through the pipeline as normal.

"Ukraine's drone campaign against Russian refining infrastructure has shifted into a more sustained and strategically coordinated phase," consultancy Kpler said in a research report, adding that strikes now target refineries in repeated cycles, aiming to keep key assets from stabilising.

"This has pushed Russian refining throughput down to around 5 million barrels per day between September and November, a 335,000 bpd year-on-year decline, with gasoline hit hardest and gasoil output also materially weaker," the report added.

The perception that progress on a peace plan for Ukraine was stalling also supported prices, after US President Donald Trump's representatives emerged from peace talks with the Kremlin with no specific breakthroughs on ending the war. Trump said it was unclear what happens now.

"Crude will likely remain stuck in a narrow range while the Ukraine peace efforts grind on," said Vandana Hari, founder of oil market analysis provider Vanda Insights.

Previously, expectations of an end to the war had pressured prices lower, as traders anticipated a deal would involve ending sanctions on Russia and allow Russian oil back into an already oversupplied global market.

The central bank expects inflation to come down to 5 percent by the end of the current fiscal year, Bangladesh Bank Governor Ahsan H Mansur said today.

Speaking at an investment dialogue organised by the Bangladesh Investment Development Authority in Dhaka, Mansur said that inflation had peaked at over 12 percent in 2024, but recent trends indicate improvement.

"Food inflation has dropped to 7.3 percent, and overall inflation now stands at 8.2 percent. If this trajectory continues, we are on track to bring it down to 5 percent," he said.

Achieving the target is a prerequisite for easing the policy interest rate, which remains high to contain inflationary pressure.

"We cannot reduce interest rates unless real interest rates remain positive. Inflation control is the first step toward creating room for lower borrowing costs," he added.

The governor said effective inflation management will also help stabilise the exchange rate, strengthen investor confidence, and support long-term economic growth.

He said that abrupt administrative rate cuts would be counterproductive and could fuel renewed price instability.

"We are committed to a rule-based approach. Once inflation is sustainably below 7 percent, policy rates will adjust accordingly," he added.

The agriculture ministry has decided to provide an additional Tk110 crore in subsidies to protect the interests of potato growers. The government has cancelled its earlier decision to purchase 50,000 tonnes of potatoes, and instead the subsidy will be given directly to 20,32,000 potato farmers.

The current budget for FY2025-26 allocates Tk150 crore for potato farmers, and with the additional subsidy the total amount will rise to Tk260 crore.

The decision was taken on 6 November at a meeting at the agriculture ministry on reviewing the country's potato market situation.

According to ministry sources, subsidies for potato seed and fertiliser will come from the main budget allocation. The extra Tk110 crore will be transferred to farmers' mobile financial accounts, calculated on irrigation and labour costs per acre of potato cultivation.

In July and August, potato prices in the market dropped to Tk13-14 per kg, pushing growers towards losses. To prevent a further fall in prices or to offset farmers' losses, the government decided to buy 50,000 tonnes of potatoes and sell them at subsidised rates through the Trading Corporation of Bangladesh (TCB).

The Economic Affairs Committee, at its 22nd meeting in August, approved the purchase. A ministry press release on 27 August said the recent market price had fallen below production cost, harming farmers, and announced that the government would procure potatoes at Tk22 per kg. The potatoes were supposed to be released to the market through TCB in October-November.

However, neither the agriculture ministry nor TCB could ensure that such procurement would benefit genuine farmers.

At the 6 November meeting, TCB Chairman Brigadier General Mohammad Faisal Azad said it is difficult to identify which cold storages in which districts hold potatoes belonging to actual farmers. As a result, government procurement could negatively affect the market and society.

He also said that if potatoes are bought from cold storages at Tk22 per kg and sold from trucks, the cost would rise to Tk32 per kg. Selling these at Tk10 per kg would require Tk22 in subsidy per kg.

On this basis, Tk110 crore would be needed to buy and sell 50,000 tonnes of potatoes. The TCB chair proposed giving the Tk110 crore directly to farmers instead of procuring potatoes, saying this would benefit them more.

Officials present at the meeting supported the TCB chairman's proposal. Agriculture Secretary Mohammad Emdad Ullah Mian and Commerce Secretary Mahbubur Rahman also endorsed it and cancelled the procurement decision.

The commerce secretary said at the meeting that if the money can be sent directly to potato farmers, genuine growers will benefit instead of middlemen. Therefore, offsetting their losses through subsidies is better than buying and selling potatoes.

Following this, Agriculture Secretary Mohammad Emdad Ullah Mian instructed the Department of Agricultural Extension (DAE) to prepare a database of genuine potato growers. Based on this instruction, DAE has prepared and submitted a nationwide farmer list to the agriculture ministry.

The committee formed under the agriculture secretary to review potato prices and recommend actions has also approved the cash support proposal. The committee includes the finance secretary, commerce secretary and food secretary.

A senior DAE official, requesting anonymity, said the list includes mobile numbers of 20,32,363 potato farmers across the country. It also specifies which mobile financial service account each number is linked to, as well as the acreage under each farmer's cultivation.

A senior official at the agriculture ministry said the existing budget incentive provides subsidised potato seed and fertiliser. This year, cash will also be provided. The cash incentive will be based on irrigation and labour costs per acre.

He said, "The agriculture ministry has sent a letter to the finance ministry seeking subsidy funds. Once the finance ministry releases the funds, they will be transferred to farmers' mobile accounts."

According to ministry data, annual national demand for potatoes for household consumption and for producing chips and other potato-based foods is 104 lakh tonnes. In FY2024–25, the country produced 115 lakh tonnes.

This year, production costs varied between Tk14 and Tk17 per kg depending on region. Cold storage rent ranged between Tk6 and Tk6.30 per kg, and transport to cold storage cost Tk1–2 per kg. Altogether, total production and storage costs amounted to Tk20–25 per kg.

However, due to excess production, market prices were very low this year. In July and August, potatoes sold for Tk13–14 per kg. The agriculture ministry now fears farmers may be discouraged from planting potatoes next season.

According to DAE sources, as of 31 October, cold storages across the country held 6.83 lakh tonnes of table potatoes and 8.27 lakh tonnes of seed potatoes. Farmers also have some potatoes stored at home. New potatoes will start arriving in the market in full scale by February.

State-run Petrobangla has prioritised launching an onshore bidding round ahead of an offshore one to ramp up the country's overall natural gas output from local fields.

"We are now concentrating on inviting an international tender to carry out oil and gas exploration in onshore gas blocks, especially in hilly areas," Petrobangla chairman Md Rezanur Rahman has told The Financial Express.

Raising gas production from domestic fields has become essential amid dwindling output and rising demand across industries, power plants and other major consumers, he said.

"We are keen to float the tender soon for the onshore gas blocks," he added. "The bid round for offshore gas blocks will come later."

Lower investment requirements and shorter exploration periods in onshore blocks have prompted Petrobangla to prioritise the onshore round first, according to market insiders. Offshore exploration requires significantly higher investment and longer lead times, they added.

Bangladesh's offshore blocks also lack sufficient data for potential global oil and gas companies to make investment decisions, they said.

Sources noted that Bangladesh has not launched an onshore bid round for hydrocarbon exploration in the past 28 years.

The energy ministry is currently evaluating a draft of the Model Production Sharing Contract (MPSC) for the onshore bidding round, said the Petrobangla chairman.

Petrobangla prepared the draft and submitted it to the Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) for final approval, he added.

The terms have been made more attractive to international oil companies (IOCs) in line with recommendations from global consultant Wood Mackenzie.

Mr Rahman did not disclose the number of blocks to be offered or the expected pricing.

Sources said Petrobangla is also working on a draft MPSC for a separate offshore bidding round. Under the new MPSC for onshore blocks, the gas purchase price from IOCs will be linked to the dated Brent crude price on a three-month rolling average. The previous 1997 MPSC terms were linked to high sulphur fuel oil (HSFO) with a price floor and ceiling.

"We are working to fix the new formula so the price can be linked to around 8.0 per cent of the dated Brent crude, with a cap," said another Petrobangla official.

Based on the current Brent price of US$65 per tonne, the gas price is expected to be around $5.0 per million British thermal unit (MMBtu), he said.

This would make locally produced gas significantly cheaper -- about half the cost of LNG imported from the spot market and two-thirds of LNG imported under long-term contracts, industry insiders said.

Bangladesh currently pays around $11 per MMBTu for spot LNG and $7.5 per MMBTu under long-term deals.

If adopted, the new formula would make the gas price for onshore blocks nearly double the highest rate under existing model PSCs, which is $2.76 per MMBTu.

Chevron currently receives about $2.76 per MMBTu for its gas sold to Petrobangla, while KrisEnergy receives around $2.31 per MMBTu under HSFO-linked pricing.

Petrobangla also buys natural gas from three of its state-owned subsidiaries: Sylhet Gas Fields Ltd (SGFL) and Bangladesh Gas Fields Ltd (BGFCL) at Tk 28 per Mcf, and Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) at Tk 112 per Mcf.

The corporation has also narrowed down differences in exploration benefits to attract IOCs to the upcoming onshore round, the official added.

During the last onshore bidding round in 1997, four blocks -- Block 5, Block 7, Block 9 and Block 10 -- were awarded.

Currently, four IOCs have active PSCs, individually or jointly, for three shallow-water offshore blocks. Chevron is operating in three onshore fields under Blocks 12, 13 and 14, while KrisEnergy produces from the Bangora field under Block 9.

Petrobangla's most recent offshore bid round, which offered 24 sea blocks under the Model PSC 2023, saw no response from IOCs.

Bangladesh is currently importing lean LNG from RasGas of Qatar and Oman Trading International (OTI) under long-term contracts, as well as from several suppliers under spot arrangements, to meet rising demand.

The country's total gas supply is around 2,671 mmcfd -- including 892 mmcfd of re-gasified LNG -- against a demand exceeding 4,000 mmcfd, according to official data as of December 5 this year.

The government is discussing with the Asian Infrastructure Investment Bank (AIIB) a $400 million fund in budget support credit to advance policy and institutional reforms, focusing on climate adaptation in the urban and water sectors.

The programme aims to support the government in implementing critical policy and institutional reforms to promote sustainable water resources management and climate-smart urban service delivery.

The financing will come as a programmatic series of two sub-programmes, officials say.

A senior Finance Division official told The Financial Express Thursday the discussion with the AIIB was advancing, while the government ministries and departments concerned were scrutinising the conditions the bank had put forward.

"Our previous AIIB-funded reforms on climate resilience and inclusive development were very successful, and we are hopeful to get the fund for the new programme in a few months," he said.

Earlier, the China-led multilateral development bank gave a total of $800 million in two phases under the Climate Resilient Inclusive Development Programme to implement key policy reforms, which aimed to combat climate change and foster sustainable development.

The new loan programme focuses on climate-smart project planning, preparation and appraisal; enhancing policies and institutions for climate-smart urban service delivery and development; and improving water security and resilience to climate-related disasters.

It also focuses on immediate policy and institutional actions in each reform area, aligning with the short-term priorities of the government-led national climate plans, including the National Adaptation Plan (NAP) 2023-2050 and the Nationally Determined Contributions 2021 Update (NDC-U), with a particular focus on urban and water sectors.

The Finance Division; the Ministry of Environment, Forest and Climate Change; the Planning Commission; the Ministry of Local Government, Rural Development and Co-operatives; the Ministry of Water Resources; the Ministry of Housing and Public Works; and the Sustainable and Renewable Energy Development Authority (SREDA) will carry out the reforms under the programme.

The local government and water resources ministries will set up a project preparation facility to improve project selection and readiness; promote climate finance, including from the private sector; and coordinate among the relevant departments.

Also, under the programme, the Ministry of Planning will develop and roll out the updated Ministry Assessment Format (MAF) and Sector Appraisal Format for Technical Project Proposals (TPP/TAPP) and Revised Development Project Proposals (RDPP), embedding green climate resilient development (GCRD) principles, DRIP-based Disaster Impact Assessment (DIA), and climate-tagging.

It will also integrate the formats into PAMS/AMS with automated validation and submission control to ensure that all revised and technical projects incorporate climate and disaster risk considerations in accordance with the DPP.

Moreover, the Ministry of Planning will approve and operationalise the Disaster Impact Assessment (DIA) framework, as referenced in the MAF manual, to establish a standardised, evidence-based process for identifying, assessing, and mitigating disaster and climate risks in public investment projects.

The Advisory Council/Cabinet will approve the National Water Policy 2026, incorporating climate adaptation measures in alignment with the National Adaptation Plan.

Parliament will approve the Bangladesh Water Act, strengthening climate-resilient water governance.

The AIIB project summary says Bangladesh is the world's seventh most vulnerable country to climate hazards, with an average annual loss of about $3.0 billion.

"Climate change has posed disproportionate impacts to the vulnerable groups in the country, including women, whose livelihoods are increasingly affected," it says.

The damage from tropical cyclones in the country is estimated at between 1.5 per cent and 6.0 per cent of the Gross Domestic Product (GDP).

In case of severe flooding, the GDP could fall by as much as 9.0 per cent, it also says.

Bangladesh has a significant financing need to address the immediate and urgent intertwined challenges of climate change and development.

The Bangladesh Securities and Exchange Commission (BSEC) has begun looking into alleged loan irregularities at KHB Securities Limited.

Abul Kalam, spokesperson for the market watchdog, said the inquiry committee would determine whether any operational irregularities had been committed at the brokerage firm. The commission will take appropriate measures if any violation of securities rules is identified.

An earlier inspection at the brokerage firm detected some mismatches in its financial statements. On this basis, the inquiry committee was formed.

The three-member probe body will examine whether there were unsecured loans, unverified investments, and instances of non-compliance with corporate filing requirements.

The probe order issued by the BSEC has already been sent to the managing director and chief executive officer of KHB Securities.

The commission has particularly taken note of an allegation that KHB Securities received an unsecured loan of Tk 80 million from International Leasing & Financial Services Ltd (ILFSL) without any formal agreement, a violation entailing significant financial and regulatory risks.

During the previous government's tenure, the capital market saw hardly any disciplinary action against brokerage houses accused of violations. However, the newly reconstituted BSEC, under the leadership of Khandaker Rashed Maksud, has taken steps against brokers, particularly those with deficits in consolidated customer accounts.

The probe must be completed and a report submitted within 60 working days from the order issuance date-November 16.

The FE correspondent failed to reach the managing director of the brokerage house for comment by phone despite repeated calls.

US consumer pricing and sentiment reports released Friday pointed to lingering questions about affordability as the calendar moves towards the peak of the festive season.

The personal consumption expenditures (PCE) price index, the Federal Reserve's preferred data point for measuring inflation, rose to 2.8 percent on an annual basis in September from 2.7 percent in August.

When food and energy prices were excluded, prices also rose by 2.8 percent in September. However, that was below the 2.9 percent reading in August for the same benchmark.

The mixed report, delayed due to the US federal government shutdown, is the last major inflation reading before the Fed's rate decision next week.

The figures were largely in line with expectations, but included notable increases in some categories that have strained consumers. Durable goods like automobiles, appliances and furniture rose 1.4 percent from a year ago.

A separate report showed consumer sentiment rose in December to 53.3 from 51.0 in November, according to the University of Michigan.

However, consumers today have a diminished outlook for their expected personal income compared with early in 2025 and labor market expectations "remained relatively dismal," said survey director Joanne Hsu.

"Consumers see modest improvements from November on a few dimensions, but the overall tenor of views is broadly somber, as consumers continue to cite the burden of high prices," she said.

The data did not significantly move the US stock market on Friday. Stocks are up modestly for the week, due partly to expectations the Fed will cut interest rates next week.

The Fed has cut interest rates at its last two meetings following indications of a slowdown in the US employment market.

But the Fed has also kept an eye on inflation due to the risk that President Donald Trump's tariffs could reignite a major increase in prices.

EY-Parthenon Chief Economist Gregory Daco predicted the US central bank would cut rates as expected next week, but could face multiple dissents.

Fed Chair Jerome Powell will "persuade several hesitant policymakers to support a third consecutive 'risk management' rate cut, while signaling firmly that additional easing is unlikely before next spring absent a material weakening in economic conditions," Daco said in a note.

Friday's pricing data revealed a "gradual and uneven" tariff pass-through on goods, "exacerbating the affordability crisis," Daco said.

"While many businesses have absorbed cost pressures using pre-tariff inventories and narrower margins, these buffers are slowly eroding," said Daco, who expects rising inflation in late 2025 and early 2026, "further complicating the consumer outlook amid softening labor-market dynamics."

Gold prices rose on Friday as mounting expectations of a US Federal Reserve rate cut next week buoyed sentiment, while silver soared to a record high.

Spot gold was up 1 percent to $4,212.16 per ounce at 1:36 p.m. ET (1836 GMT), but was on track for a 0.4 percent weekly loss.

US gold futures for February delivery settled unchanged at $4,243 per ounce.

"The market is increasingly confident that the central bank is going to cut (rates) and in response to that, we've seen the US dollar weaken a little bit and that's accretive for gold," said Bart Melek, global head of commodity strategy at TD Securities.

US economic data showed the core Personal Consumption Expenditures (PCE) Price Index rose 0.3 percent in September, with the annual increase slowing to 2.8 percent from 2.9 percent in August.

This followed private payroll data revealing the sharpest decline in over two-and-a-half years last month. Dovish commentary from several Fed officials has further fueled expectations of monetary easing.

CME's FedWatch tool indicates an 87.2 percent probability of a 25-basis-point rate cut at the Fed's December 9-10 meeting.

Gold is projected to trade between $4,200 and $4,500 this year, and between $4,500 and $5,000 next year, depending on the Fed's decisions, said Alex Ebkarian, COO at Allegiance Gold.

Meanwhile, physical gold demand in India and China eased this week as buyers wait for a correction in spot prices.

Silver rose 2.6 percent to $58.59 an ounce, up 4 percent for the week, after touching a record $59.32 earlier.

"(Silver is) following the pathway of gold and many investors still believe that silver is quite cheap in relative terms," Melek said, citing structural deficits and rising demand for electrification as supportive factors.

The white metal has rallied 98 percent so far this year, fueled by supply deficits and its designation on the US critical minerals list.

Bangladesh's merchandise exports have declined for the fourth consecutive month, as the reciprocal tariff measures by the United States and a slump in global demand continue to weigh on the apparel sector, the backbone of the country's export industry.

According to latest data from the Export Promotion Bureau (EPB), November exports amounted to $3.89 billion, down 5.54 percent compared with $4.11 billion in the same month last year.

Garments, which account for over 80 percent of the national export earnings, remained the largest category, bringing in roughly $3.14 billion in November, a 4.8 percent decline from $3.30 billion recorded in the same month last year.

Despite a modest overall growth of 0.09 percent during July–November, amounting to $16.13 billion, the breakdown shows the knitwear segment fetched $8.85 billion and woven garments $7.27 billion, with knitwear falling 7 percent and woven garments slipping 3 percent in November compared with a year ago.

Industry leaders attribute the slump to reduced order volumes from major markets such as the European Union and the US, triggered by the newly applied reciprocal tariffs and global buyer caution.

First, US buyers have delayed placement of new orders following the increased tariffs on apparel imports, said Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem.

"As US tariffs have increased, buyers are now trying to shift part of the cost burden onto Bangladeshi garment manufacturers, which we simply cannot absorb," he explained.

Second, he said there is a notable shift in the EU market, where buyers are increasingly sourcing from lower-cost producers in China and India.

"Because Chinese and Indian manufacturers have slashed prices to reclaim orders lost from the US, EU buyers are turning to them for more competitive rates," Hatem added.

These twin pressures have created a tough environment for Bangladesh's garment exporters, Hatem noted, adding, "We expect this crisis to continue for at least the next three to four months."

He also said most buyers are placing only small, minimum-volume orders to keep their operations running.

Meanwhile, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan said the decline in garments export is largely owed to external market pressures and domestic challenges.

He said most competitor countries are witnessing similar declines, except Pakistan.

"Buyers in major markets changed their purchasing patterns earlier in the year," he noted, "as tariff concerns prompted many to stockpile basic items in July. Since these products can be stored for months, fresh orders have slowed."

Khan added that rising global prices have dampened consumer demand, further weakening apparel exports.

The BGMEA president also stated that several garment factories have already shut down and more may close in the coming months.

However, he said, "This will not necessarily cause a sharp fall in export earnings, as production is increasingly shifting toward larger and more efficient factories."

On prospects of export rising after Christmas, Khan said the Western holiday sales season is not a strong indicator for Bangladesh, since shipments for that period are completed by October or November.

"Although some rebound is possible, I expect limited improvement in new orders," he said.

He added that political uncertainty ahead of national elections has made buyers more cautious, reducing their willingness to place new orders in the near term.

Meanwhile, exports of plastic goods experienced a 15.5 percent fall to stand at $24.5 million compared to nearly $29 million in November 2024.

RN Paul, managing director of major plastic exporter RFL Group, however said the decline is largely owed to delays in shipment than a persisting issue.

"Our export performance fluctuates month to month. Sometimes we have three to four shipments going out in one month, and sometimes a shipment gets delayed, which was the case last month," Paul explained.

He clarified that the drop does not reflect a loss in demand. "Some of our shipments were delayed in the previous cycle and are now scheduled to go out this month. So, we expect an improvement in the coming weeks."

Paul expressed optimism that export volumes will rebound soon, attributing the temporary decline to logistical factors rather than weakening market fundamentals.

M Shahadat Hossain Sohel, managing director of Towel Tex Limited, linked the downturn to declining global demand, particularly in major markets like the United States and Canada. "Consumers are prioritising basic necessities and seeking the lowest prices. Luxury and fashion items are not selling."

He said Bangladesh's export sector is facing a significant decline amid worsening global economic conditions.

"In our terry towel exports, the decline is even steeper, around 40 percent," he said.

Sohel further remarked that the impact of global conflicts is now being overtaken by an "economic war."

Among other major sectors, leather and leather products recorded a 5.14 percent growth, reaching $99 million, up from last year's $94.15 million; agricultural goods, however, fell 24.68 percent to $82.78 million from $109.90 million; chemical products grew 8.35 percent to reach $30.49 million.

Bangladesh Railway's lucrative freight transportation sector is rapidly contracting, losing essential customers and revenue due to a severe shortage of functional locomotives.

Services have been drastically curtailed, despite high demand for the cost-effective and secure rail network.

Officials confirm that the number of container trains operating monthly from Chittagong Port, the country's main gateway for imports and exports, towards Dhaka has fallen by more than half – from over 120 to just 50-60.

Steep decline in services

According to Railway data, the number of total annual freight train services dropped sharply from 4,273 in the 2021-22 fiscal year to 3,387 in FY23, an annual reduction of 886 services. In the eleven months leading up to November this year, only 2,285 freight services operated, including 1,175 container trains and 881 fuel trains.

"While the passenger sector requires subsidies, freight transport is profitable," Md Shahidul Islam, joint director general (operations) of Bangladesh Railway, told TBS. "But the engine shortage forces us to cut down the number of trains. Moreover, if a passenger train engine breaks down, we often divert a freight train engine to complete the journey, increasing delivery times for goods."

Crisis of ageing fleet

The core of the problem lies in the railway's ageing fleet. Out of a total of 281 locomotives, over 90 remain inactive and unfit for service, with the majority having exceeded their operational lifespan, said officials. Frequent mechanical failures are becoming common.

The Eastern Zone, which handles over 95% of freight transport, is particularly hard hit, with 55 out of its 131 locomotives currently out of service.

The shortage is acutely felt at the Chittagong Goods Port Yard. Officials report that against a demand for 15 engines for oil, stone, and foodgrain transport, only 5-6 are regularly supplied. For container trains, the requirement is seven engines, but Chittagong Goods Port Yard often receives only one or two.

Consequences for industry

The crippling service has led to significant delays and cost increases for major industries.

Container serial waiting time has ballooned from two days to one week. Shamsuddin Ahmed Chowdhury, general secretary of the Container Shipping Association, confirmed that importers and exporters now incur extra port charges and suffer from delayed deliveries.

AKM Azad-ur Rahman, director (operation and transport) of the Bangladesh Petroleum Corporation, noted that despite rail being the safest and most economical way to transport fuel, "We are not receiving the desired service." Consequently, the transport of fuel by road tankers and waterways has increased, driving up costs.

Fertiliser supply via rail has been suspended for over a year due to the lack of locomotives and wagons, forcing companies like Shahjalal Fertiliser Company Limited to rely on expensive road transport.

Investment paradox

The news highlights a significant paradox: while Bangladesh Railway invested approximately Tk88,000 crore in 121 projects, building 948 km of new railway line between June 2009 and June 2024, only 40 new engines were purchased during this entire period.

Eastern Railway General Manager Mohammad Subuktogeen acknowledged the issue, noting that maintaining scheduled passenger services often means that freight trains are delayed. However, he stated that the railway is undertaking initiatives to repair existing engines and procure new ones through projects, which should eventually normalise freight services.

The country's capital market witnessed a sharp decline today (4 December), extending the losing streak for the second consecutive session as dominant selling pressure pushed the benchmark index further below the psychological threshold.

Investor sentiment remained dampened, reflected in the overwhelming number of declining issues compared to those that advanced.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), shed over 40 points to settle at 4,886, marking a significant erosion of equity value.

The downward trend was mirrored by the blue-chip index DS30, which encompasses the best-performing companies. The DS30 plunged by 6 points to settle at 1,891, indicating that even fundamentally strong stocks were not immune to the bearish wave.

Market participation also dwindled, signaling a lack of confidence among investors. Turnover on the premier bourse dropped by 10% to stand at Tk364 crore, down from the previous session. This contraction in trading volume suggests that buyers are staying on the sidelines, adopting a cautious "wait and see" approach amid prevailing economic and political uncertainties.

The market breadth was heavily skewed towards the negative territory. Out of the issues traded on the DSE floor, a staggering 307 companies witnessed price corrections. Only 34 issues managed to advance, while 44 remained unchanged.

Despite the overall gloom, a few stocks defied the market trend. Zeal Bangla Sugar topped the gainers' list, surging by 9.96%, followed closely by Bd Thai Food and Standard Ceramic, both of which rose by 9.86%. Phoenix Finance and National Bank also posted respectable gains of 8.33% and 6.45%, respectively.

On the other hand, the losers' chart was led by Tamijuddin Textile, which shed 12.74% of its value. Non-bank financial institutions faced significant pressure, with Premier Leasing and FAS Finance losing 10.14% and 10%, respectively. Summit Alliance Port and BD Welding also found themselves among the top losers.

In terms of trading activity, Simtex Industries emerged as the most traded stock, leading the turnover chart. It was followed by Bd Thai Food, Shahjibazar Power, Orion Infusion, and Summit Alliance Port, which saw significant hand-to-hand exchange of shares despite the bearish climate.

The port city bourse, the Chittagong Stock Exchange (CSE), also ended the week in the red. The CSCX index dropped by 69 points to close at 8,473, while the all-share price index CASPI ended 114 points lower at 13,747. Turnover at the CSE stood at Tk13.81 crore.

Life insurance policy lapses (when clients stop paying premiums, ending coverage) in Bangladesh rose to around 337,000 in July–September, up nearly 4% from the previous quarter — a trend analysts attribute to high inflation, falling incomes, and declining trust in insurers.

At the end of September, active life insurance policies stood at 6.811 million, while companies reported total claims of Tk5,986 crore, of which only Tk2,106 crore were settled. This means insurers failed to pay about 65% of claims, Tk3,881 crore, deepening the confidence crisis among policyholders.

Analysts said soaring inflation has increased household expenses, making it difficult for policyholders to pay premiums. While new policy sales are rising, retaining existing customers remains the sector's biggest challenge.

Weak claim settlements, delays in maturity payments, funds stuck in liquidity-stressed banks, mis-selling, agent switching, weak after-sales service, and limited digital renewal systems are all contributing to rising lapses, they said, adding that many policies are sold without aligning with customers' income capacity, making long-term continuation unsustainable.

Lack of professional agents major factor

SM Ibrahim Hossain, director of the Bangladesh Insurance Academy, told TBS that many policyholders move abroad after buying insurance and stop paying premiums, leading to lapses. Others purchase policies due to family or personal relationships, but after the first-year commissions, agents often lose contact with clients.

He noted that Bangladesh still lacks a professional insurance agent workforce, unlike neighbouring countries. Exceptions exist – for instance, at MetLife Bangladesh, many agents have maintained strong reputations for 30 to 40 years, exemplifying professionalism.

Hossain emphasised that timely claim settlement is key to restoring public trust, gradually reducing policy lapses when customers receive claims promptly and without hassle.

He further said that regulators should structure the commission in a way that ensures agents remain engaged with the policyholder throughout the entire policy term.

Currently, many agents stop monitoring the policy or keeping in touch with the customer after receiving the first-year commission, which often leads to policy lapses. If commissions or incentives are designed to encourage agents to maintain the policy until maturity, it would increase customer confidence and help reduce the rate of policy lapses, he added.

Claims, delays and mis-selling fuel lapses

Insurance expert SM Ziaul Hoque told TBS that when customers do not receive claims on time, they lose interest in buying insurance again. This negative experience spreads among families and communities, deepening distrust and accelerating lapses.

He also highlighted that many customers buy policies without fully understanding the terms, later realising they cannot afford regular premiums. Income shocks, such as job losses, business losses, or sudden household expenses, worsen the problem.

Ziaul Hoque stressed that insurers must assess customers' income, expenses, and long-term financial capacity at the time of sale. Selling high-premium policies beyond a customer's means leads to defaults, while keeping premiums within a sustainable limit ensures both protection for the customer and stability for the insurer.

Field-level realities

Ala Ahmad, CEO of MetLife Bangladesh, said, "When policies lapse, customers lose the safety net designed to protect them against unforeseen events. For insurers, lapses result in lost revenue and impact financial stability and customer relationships."

"Key reasons include a lack of awareness about regular premium payments and economic hardships. We have implemented initiatives such as proactive after-sales calls, SMS reminders, enhanced digital payment channels, and agent training to ensure customers remain fully protected," he said.

SM Nuruzzaman, CEO of Zenith Islami Life Insurance, said that the field situation is alarming. Many willing customers cannot continue policies due to high living costs and limited incomes, leaving no savings after household expenses. Delays in maturity claims or profit payments discourage customers from taking new policies, creating a sector-wide confidence crisis.

Nuruzzaman further noted that companies failing to settle claims on time damage even those insurers with good records, affecting the credibility of the entire sector. Consequently, new business growth slows, and existing policies face a higher risk of lapsing.

Hanif Bhuiya and Sajedul Islam are set to join the board of the Dhaka Stock Exchange (DSE) as shareholder directors, representing the bourse's primary shareholders for a three-year term.

The newly elected directors will assume their roles on 18 December at the DSE's annual general meeting (AGM) as existing directors will retire from the post.

Although the formal announcement has not yet been made, only two nominations were submitted for the two vacant posts – Hanif Bhuiya, managing director of Rapid Securities, and Sajedul Islam, managing director of Shyamol Equity Management.

As a result, no voting is required, since no other candidates contested the two seats.

According to the election schedule published by the DSE Election Commission, the voting date had initially been set for 15 December. The DSE also formed a three-member Election Commission to oversee the polls, chaired by Justice Md Abdus Samad, with Mohammad Ibrahim and Dr Md Zahirul Islam serving as members representing the shareholders.

The two directors will succeed Md Shakil Rizvi, managing director of Shakil Rizvi Stock, and Mohammad Shahjahan, managing director of Jahan Securities, whose three-year terms are set to expire in December.

The DSE board consists of 13 members under the demutualisation scheme, consisting of seven independent directors, four shareholder directors, one representative from the strategic investor category, and the managing director of the bourse as an ex-officio member.

HSBC Bangladesh will honour the country's top exporters today for their leadership and ongoing contributions in promoting Bangladesh globally and supporting sustainable growth.

The British multinational bank will present the HSBC Export Excellence Awards in four categories at a ceremony in a Dhaka hotel this evening. This is the ninth time HSBC is recognising Bangladesh's leading exporters.

The awards are supported by the Ministry of Commerce and the British High Commission in Dhaka.

Winners are selected based on their contribution to exports and the wider economy, as well as their performance in diversity, responsibility, sustainable business practices, governance, and compliance.

Commerce Adviser Sk Bashir Uddin is expected to present the awards, while British High Commissioner to Bangladesh Sarah Cooke and Bangladesh Bank Governor Ahsan H Mansur are likely to attend.

HSBC announced the awards in August and invited applications.

Commenting on the initiative, PRAN-RFL Group Chairman and CEO Ahsan Khan Chowdhury said, "Recognition motivates exporters to achieve more. We welcome this kind of challenge, where exporters compete to outperform each other globally. Such competition is healthy for the country's economic future."

PRAN-RFL Group received the HSBC Export Excellence Award in 2022.

Chowdhury added that recognition from a global trade bank encourages ambition, diversification, and innovation. The group exports at least 20 categories of products, including food, garments, footwear, and plastics, and shipped $550 million worth of goods last year.

To stabilise the domestic onion market, the government will allow imports on a limited scale from tomorrow (7 December).

Under the revised scheme, 50 import permits (IPs) will be issued each day, with each permit capped at 30 tonnes, said a press release issued by the agriculture ministry today (6 December).

According to the ministry, only importers who submitted IP applications after 1 August will be eligible to reapply, and each importer will be allowed to apply once.

Onion prices jump to Tk150 per kg in two days

The measure will remain in force until further notice, as part of ongoing efforts to control onion prices.

Onion prices have skyrocketed in recent weeks, leaving consumers reeling as the kitchen staple's cost surged to a staggering Tk150 per kilogram today.

Traders said limited supply has driven prices higher.

Consumers expressed frustration over the abrupt hike.

Buyers urged strict monitoring to stabilise the market, while experts warned that a lack of oversight will make the situation more volatile.

Government spending on subsidies and interest payments, considered a fiscal burden, rose 30 percent year-on-year to Tk 2.43 lakh crore in the fiscal year 2024-25.

In FY 2023-24, the expenditure stood at more than Tk 1.87 lakh crore.

Although the government's development expenditure declined significantly last year, interest payments and subsidies accounted for nearly 39 percent of the total budget.

Subsidy spending in FY25 rose by 49 percent to around Tk 1.08 lakh crore, up from Tk 72,841 crore in the previous fiscal year. Interest payments rose 17 percent to around Tk 1.34 lakh crore, compared with Tk 1.14 lakh crore in FY24.

A finance ministry official said the increase in subsidy spending reflected repayment of arrears from previous years in the power and fertiliser sectors.

Allocation for electricity subsidies, originally set at Tk 40,000 crore, was later raised to Tk 62,000 crore in the revised budget, according to the official.

Similarly, subsidies for fertiliser and fuel also increased.

Interest payments last year were almost on par with spending under the annual development programme.

According to Finance Division data, the government spent around Tk 1.16 lakh crore ($13.6 billion) on domestic loans, a 17 percent rise from Tk 99,606 crore in FY24.

Meanwhile, interest on foreign loans increased 25 percent to Tk 17,812 crore ($2.1 billion), up from Tk 14,984 crore in FY24. Most domestic borrowing comes from treasury bills and bonds issued to banks and non-bank investors. The cost of these borrowings has risen sharply, according to finance ministry data.

Bond yields, which were once around 8 percent, climbed above 10 percent in FY24 and further to between 11 percent and 13 percent in FY25, according to the ministry.

Interest payments surged after the Covid-19 pandemic, when the government borrowed heavily from foreign sources to support the economy. Obligations on these loans began immediately after disbursement.

Meanwhile, the sharp drop in development spending led to a slowdown in overall budget implementation.

Last year, budget implementation totalled around Tk 6.28 lakh crore, with development spending reaching around Tk 1.43 lakh crore.

In FY 2023-24, total implementation was Tk 6.11 lakh crore, including Tk 1.95 lakh crore under the ADP.

Genex Infosys PLC, a listed IT solutions provider, has recommended a 1% cash dividend exclusively for its general shareholders for the fiscal year 2024-25.

The decision was taken during a board meeting held on 4 December, according to the company's price-sensitive statement.

The company disclosed that out of its total 12.04 crore shares, general shareholders currently hold 8.42 crore shares. Consequently, the company will require Tk84 lakh to disburse the declared dividend.

To approve the dividend and the audited financial statements, the company has scheduled its annual general meeting (AGM) for 30 December, with the record date set for 21 December.

The declared dividend reflects a significant dip compared to the company's historical payouts.

Its highest dividend payout was recorded in FY21, when it distributed a 10% cash and 10% stock dividend.

In FY24, the company had declared a 3% cash dividend. However, a failure to disburse that amount within the stipulated time led to the company being downgraded to the 'Z' category on the stock exchange. The category was upgraded back to 'B' on 28 September this year only after the company cleared the overdue payments.

In terms of financial performance for the reported period, Genex Infosys saw its consolidated earnings per share (EPS) drop by 17% to Tk2.17. However, the consolidated net asset value (NAV) per share rose by 8.48% to stand at Tk22.11.

The company's shares closed 2.78% lower at Tk24.50 on the Dhaka Stock Exchange on Thursday (4 December). It currently has a market capitalisation of Tk295 crore and a price-to-earnings (P/E) ratio of 9.35 based on the audited financial statements of FY24.

Earlier on 17 September, the Bangladesh Securities and Exchange Commission (BSEC) imposed a total fine of Tk9.27 crore on the board of Genex Infosys for involvement in share price manipulation of Sonali Paper & Board Mills Ltd. Each of the nine directors, including independent ones, was fined Tk1.03 crore. Additionally, its subsidiary, Genex Infrastructure Ltd, was fined Tk2.55 crore for its role in the manipulation.

Amid a significant downturn in the capital market, where fundamentally strong stocks faced steep corrections, non-operational and loss-making companies surprisingly dominated the gainers' chart at the Dhaka Stock Exchange (DSE) last week.

This unusual rally of low-cap and junk stocks comes as the benchmark index suffered a sharp decline, indicating a surge in speculative activity rather than investment driven by actual business performance, according to market insiders.

Zeal Bangla Sugar Mills, a Z-category company with halted operations and historical losses, topped the weekly gainers' list with a staggering 60.32% return, closing at Tk132.10. It was followed by Bd Thai Food, a B-category firm, which rallied 57.55% to close at Tk16.70.

The list of top performers was almost entirely populated by companies with weak fundamentals. Bd Thai Aluminium rose 24.04%, while Standard Ceramic, another Z-category stock, jumped 17.66%.

Other struggling companies such as Khulna Printing and Packaging, BD Welding, and Tallu Spinning also made it into the top ten gainers. Data shows that most of these companies have no price-to-earnings ratio available due to continuous losses, yet they attracted massive buyer interest while blue-chip stocks fell.

In stark contrast to the rally of these weak companies, overall market sentiment remained grim. The benchmark index DSEX plunged 141 points, or 2.82%, to settle at 4,886, falling below the psychological 4,900 mark. The blue-chip DS30 index also shed 42 points, or 2.20%, to close at 1,891.

The bearish sentiment was widespread, with 325 issues declining against only 45 advancing, while 13 remained unchanged. Market participation also waned, with daily average turnover slipping 22% to Tk411 crore, while total market capitalisation eroded by Tk7,400 crore in a single week.

EBL Securities, in its weekly market review, observed that the bourse failed to sustain the recovery momentum of the prior two weeks. The brokerage noted that investor confidence was weighed down by concerns over political uncertainties and ongoing financial sector restructuring, prompting a cautious stance among market participants.

The week began with predominant selling pressure as investors remained on the sidelines, waiting for clearer signals on the country's political front. Although bargain hunters attempted a mid-week recovery, the momentum faded due to the absence of major positive triggers, EBL Securities noted.

All major sectors posted negative returns, with the services sector taking the biggest hit at 9.1%, followed by non-bank financial institutions and life insurance.

While junk stocks rallied, the financial sector faced severe corrections. Non-bank financial institutions (NBFIs) led the weekly losers' chart, driven by growing fears over liquidation risks.

International Leasing crashed 40%, followed closely by Fareast Finance and Premier Leasing, which lost 39% and 38% respectively, as investors scrambled to exit positions amid intensifying regulatory concerns.

In terms of trading activity, investors were mostly focused on the textile sector, which contributed 15% to total turnover, followed by the engineering and pharmaceuticals sectors.