Gold and silver hit record highs Monday while most equity markets fell after Donald Trump revived trade war fears by threatening several European nations with tariffs over their opposition to the United States buying Greenland.

The US president has fanned already-rising geopolitical tensions this month by insisting that Washington would take control of the North Atlantic island, citing national security needs.

And on Saturday, after talks failed to resolve "fundamental disagreement" over the Danish autonomous territory, he announced he would hit eight countries with fresh levies over their refusal to submit to his demands.

He said he would impose 10 percent tariffs on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland from February 1 -- rising to 25 percent from June 1 -- if they did not agree to the takeover.

The announcement drew an immediate response, with a joint statement from the countries saying: "Tariff threats undermine transatlantic relations and risk a dangerous downward spiral."

The move also threatened a trade deal signed between the United States and European Union last year, with German Foreign Minister Johann Wadephul telling ARD television: "I don't believe that this agreement is possible in the current situation."

Meanwhile, aides to French President Emmanuel Macron said he would ask the EU to activate a never-before-used "anti-coercion instrument" against Washington if Trump makes good on his threat.

This measure allows for curbing imports of goods and services into the EU, a market of 27 countries with a combined population of 450 million.

Bloomberg reported member states were discussing the possibility of retaliatory levies on €93 billion ($108 billion) of US goods.

The prospect of a trade war between the global economic heavyweights shook markets, with safe haven assets extending gains that had come on the back of Trump's threats against Iran last week and the US ouster of Venezuelan president Nicolas Maduro.

Gold, a key go-to in times of turmoil, hit a peak of $4,690.59, while silver struck $94.12.

On equity markets, Tokyo, Hong Kong, Shanghai, Sydney, Singapore and Wellington retreated, though there were gains in Seoul and Taipei.

European and US futures sank.

The dollar also retreated against its peers, with the euro, sterling and yen all higher.

"The next signpost is whether this moves from rhetoric to policy, and that is why the concrete dates matter," wrote Charu Chanana, chief investment strategist at Saxo Markets.

"On the European side, the decision path matters as much as the headline, because there is a difference between merely mentioning the anti-coercion instrument as a signal and formally pursuing it as action.

"Even if the immediate tariff threat gets negotiated down, the structural risk is that fragmentation keeps rising, with more politicised trade, more conditional supply chains, and higher policy risk for companies and investors."

There was little major reaction to data showing China's economy expanded five percent last year, in line with its target. However, growth in the final three months slowed sharply from the previous quarter.

Investors in Seoul and Taipei brushed off a warning from US Commerce Secretary Howard Lutnick that South Korean chipmakers and Taiwan firms not investing in the United States could be hit with 100 percent tariffs unless they boost output in the country.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: DOWN 1.0 percent at 53,412.88 (break)

Hong Kong - Hang Seng Index: DOWN 0.7 percent at 26,670.01

Shanghai - Composite: DOWN 0.1 percent at 4,099.23

Euro/dollar: UP at $1.1628 from $1.1604 on Friday

Pound/dollar: UP at $1.3397 from $1.3382

Dollar/yen: DOWN at 157.54 yen from 158.07 yen

Euro/pound: UP at 86.79 pence from 86.69 pence

West Texas Intermediate: UP 0.1 percent at $59.52 per barrel

Brent North Sea Crude: FLAT at $64.15 per barrel

New York - Dow: DOWN 0.2 percent at 49,359.33 (close)

London - FTSE 100: FLAT at 10,235.29 (close)

Advanced Chemical Industries (ACI) PLC, one of the largest conglomerates in Bangladesh, is set to expand its business footprint into the semiconductor and property sectors.

To operate in these new segments, the ACI board has decided to form two new subsidiaries – ACI Semiconductor Limited and ACI Properties Limited – at a board of directors' meeting held on Thursday.

An official of ACI told TBS, "We are hoping for bright prospects in both business segments in the future, which is why the management has decided to enter these segments by forming two subsidiaries of ACI PLC."

ACI Semiconductor Limited will have an authorised capital of Tk100 crore and a paid-up capital of Tk10 crore.

In the company, ACI will own 85% shares, which is subject to the approval of the concerned authority.

ACI Properties Limited will have an authorised capital of Tk100 crore and paid-up capital of Tk10 crore. In the company, ACI will hold 85% shares.

The official said the new business segment will enhance ACI's business portfolio.

According to its latest annual report for the 2024-25 fiscal year, ACI owns 17 subsidiaries and five joint ventures and associate companies operating across the country through its five diversified strategic business units – healthcare, consumer brands, agribusiness, motors and retail chains.

Its healthcare division delivers innovative and pharmaceutical products, the consumer brands division with its toiletries, home care, hygiene, electrical, salt, flour, foods, rice, edible oil, paints and international businesses.

ACI's agribusiness arm is the country's largest integrated platform in agriculture, livestock and fisheries, while ACI Motors is a leading player in farm mechanisation, motorcycles, commercial vehicles and construction equipment.

The retail chain division operates Shwapno, the largest retail network in Bangladesh, with more than 683 outlets nationwide, including 220 newly opened stores, serving over 1,00,000 customers daily.

ACI traces its origins to Imperial Chemical Industries, a British multinational that established operations in then East Pakistan. Following Bangladesh's independence, the business became ICI Bangladesh Manufacturers Limited before being acquired by its management in 1992 and renamed Advanced Chemical Industries (ACI) PLC.

Financial performance

For the financial year ended on 30 June 2025, ACI reported a marked performance improvement, with its consolidated loss narrowing significantly. The group posted a consolidated loss of Tk41.91 crore, or Tk7.40 per share, compared with Tk128.47 crore and Tk15.88 per share in the previous year.

Its consolidated revenue for FY25 stood at Tk13,790 crore, up from Tk12,431 crore in the previous fiscal year.

ACI's management attributed the improvement in profitability to steady revenue growth and stronger cost control.

During the year, the company achieved a 10.93% increase in consolidated revenue and a 15.42% rise in gross profit. The growth in gross profit outpaced operating expense growth, leading to higher operating profit despite challenging market conditions.

However, the company noted that higher borrowing costs partially offset the gains. The cost of borrowings increased during the year, driven by rising interest rates and additional funding requirements for working capital and strategic investments to support business expansion.

ACI's 25% cash dividend was approved by the shareholders in the annual general meeting (AGM) held on 28 December 2025.

In the first quarter of the current fiscal year, ACI reported a consolidated profit of Tk6.32 crore with an earnings per share (EPS) of Tk0.39, which was a consolidated loss of Tk46.91 crore and loss per share of Tk4.82 in the same time of the previous fiscal year.

Its consolidated revenue surged to Tk3,696 crore from Tk2,971 crore in Q1 of FY25.

The group achieved a 24.40% revenue growth, which was contributed to by a number of businesses as demonstrated in consolidated operating segments.

The Central Counterparty Bangladesh PLC (CCBL) was envisioned as the crown jewel of the capital market – a sophisticated, independent entity designed to modernise the clearing and settlement system, ensuring transparency and enabling the high-volume trading characteristic of advanced global bourses.

Incorporated in 2019 with significant fanfare, it was meant to segregate the settlement process from the stock exchanges, thereby reducing systemic risk.

Now, nearly seven years after its inception, the institution has transformed from a beacon of reform into a stagnant "white elephant," described by market participants as a costly burden that has failed to execute even its most basic functions.

Despite a substantial paid-up capital of Tk300 crore, the company has yet to begin operations. It remains trapped in perpetual inertia, lacking both the necessary software to run a clearing system and the mandatory registration from the Bangladesh Securities and Exchange Commission (BSEC) to conduct core business.

This failure has directly affected the Dhaka Stock Exchange (DSE), which continues to struggle under an aging settlement framework, preventing the market from achieving the speed, transparency, and transaction volume required for a modern economy.

Capital in limbo

Financial data reveals that CCBL has essentially operated as a fund management firm rather than a clearing house. Its office expenses are met through interest income from fixed deposit receipts (FDRs). The company maintains roughly Tk281 crore in FDRs across 14 banks. Alarmingly, Tk20 crore of this capital is held in the non-viable Exim Bank, alongside an additional Tk20 crore investment in Exim Bank bonds.

This exposure to a struggling financial institution has raised serious questions about the fiduciary responsibility of CCBL's management and board, according to market insiders.

Governance in Question

The governance structure of CCBL has become a subject of ridicule among market stakeholders. The company currently has a top-heavy board of 10 members, yet actual management is handled by a skeleton crew of only four officers.

Mominul Islam, chairman of the DSE, told The Business Standard that CCBL was established with what he calls "non-practical ambition." He said that since its 2019 incorporation, the company has remained non-functional, prompting DSE shareholders to fundamentally question its continued existence. As a primary investor, the DSE is no longer willing to wait for a miracle.

DSE voices frustration

To address these grievances, DSE leadership recently met with Anisuzzaman Chowdhury, special assistant to the chief adviser and chairman of the committee formed to strengthen the capital market. High-level government officials and BSEC representatives were present, where the DSE formally raised concerns regarding CCBL's inactivity.

According to Mominul, the government has requested precise recommendations on the entity's future. In response, the DSE is seeking legal counsel to determine whether the current CCBL structure is salvageable or has become a redundant obstacle.

Mominul further criticised the flawed process through which CCBL was created, comparing it unfavourably to international models.

He said in Sri Lanka, a clearing and settlement company was formed under the stock exchange's umbrella for an initial three-year period to ensure functionality before gaining independence. In Bangladesh, however, CCBL was pushed into independence without a functional foundation, resulting in unnecessary costs and a complete lack of progress.

Flawed design

The sentiment is echoed by Minhaz Mannan Emon, a shareholder director of the DSE, who argues that CCBL was designed incorrectly from the start. He said the board was populated by independent directors who lacked the technical expertise to run a highly specialised clearing and settlement business. This deficiency, he contends, is the primary reason CCBL could not secure regulatory registration in seven years.

Emon highlighted that the DSE invested Tk135 crore in the entity – money effectively belonging to brokerage houses. "Had this capital remained as an FDR under the DSE's control, it would have generated over Tk100 crore in interest over the last seven years. Instead, the DSE has watched its investment erode in a non-functional venture."

Stakeholders demand action

Frustration is compounded by CCBL management's failure to submit a viable action plan when requested by the BSEC last year. Market leaders like Emon now believe the DSE is more capable of running the clearing and settlement business independently. Calls for winding up CCBL are growing louder, as stakeholders refuse to continue "dumping money" into an institution lacking a roadmap.

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), said the 250 members of the DSE demanded full ownership of CCBL during the last annual general meeting.

In a formal letter, the brokers argued for a drastic reduction in CCBL's paid-up capital, calling the current Tk300 crore an excessive waste.

The DBA also called for immediate separation of management from the board and the recruitment of qualified professionals to replace the "ridiculous" setup of ten directors overseeing four employees.

Suspicious procurement

Adding to the controversy are allegations of suspicious procurement decisions. Sources indicate that a previous board planned to purchase clearing software from Tata Consultancy Services Limited (TCS) for a staggering $12 million.

The DSE raised concerns that the price was significantly above the market rate and posed potential security vulnerabilities to the country's critical technology infrastructure. The BSEC intervened to halt the procurement, yet the incident left lingering doubts about the entity's past decisions.

Ownership concerns

The ownership structure is also under scrutiny. While the DSE, Chittagong Stock Exchange (CSE), and Central Depository Bangladesh Limited (CDBL) hold the majority of shares, a significant portion is distributed among various banks, including National Bank, NCC Bank, and others.

Among these, Social Islami Bank and Global Islami Bank became non-viable due to massive irregularities and have since merged into Sammilito Bank. Market participants question why these banks, many with their own governance issues, were given stakes in a critical market utility like CCBL.

CCBL officials declined to comment to The Business Standard.

Mining bosses like BHP’s Mike Henry should, in theory, be digging right now. Copper prices have surged 50 percent over the past year, topping $13,000 per metric ton on the London Metal Exchange on Thursday — well above the $11,000 mark that typically justifies constructing new mines. The catch? Soaring prices rarely stick.

Much of copper’s recent record rally reflects temporary factors. Traders are stockpiling ahead of potential US tariffs due in June, while top producers such as Rio Tinto and Freeport-McMoRan have cut their production forecasts because of idiosyncratic problems at key sites. The resulting squeeze has proved enough to drive short-term prices higher, but it may not last. Richer margins encourage more collection and processing of recycled copper, boosting supply over time. Tariff fears also cut both ways: if US President Donald Trump backs off, prices could tumble fast.

Questionable demand is another reason to think prices may fall. China still consumes roughly half of global copper, but the mix of uses is changing. Clean energy and electric vehicles are gaining share: Wood Mackenzie and Bernstein analysis see them making up 12 percent and 9 perecent of global demand, respectively, by 2030, while traditional sources of demand like construction lose steam. The problem is that the newer Chinese sectors remain exposed to policy shifts, implying a slowdown if Beijing shifts its priorities or successfully ends the clean-car sector’s chronic overcapacity. Globally, a much-heralded data centre boom may only help a little: the sector will account for just 1 percent of copper demand by 2030, according to Wood Mackenzie.

That uncertainty helps explain why miners like Anglo American and Teck Resources, or Glencore and Rio Tinto, are chasing M&A instead of breaking ground on new copper sites. The world needs a new supply, but the economics are tight. To make developing a mine economically sustainable, copper prices would have to stay at $11,000, according to consultant Wood Mackenzie. Price forecasts by Morgan Stanley suggest that between now and 2030 it will average around $10,700.

This would leave no room for miners to make a profit on new sites. And the real breakeven number may be higher after factoring in other challenges like securing water and labour, as well as possible permitting delays that can stretch over a decade, according to Morgan Stanley strategist Amy Gower.

Meanwhile, Wood Mackenzie estimates that meeting forecast 2035 demand will require over $210 billion in investment. Yet total capital investment in copper mining from 2019 to 2025 amounted to only around $76 billion. About half of that came from Chinese miners, followed by Russians.

There’s a geographic shift happening, too. The next wave of supply is moving beyond Latin America and Central Africa into regions like Central Asia, where countries such as Kazakhstan are closer to Beijing. For global miners, record prices are welcome. But in copper, that’s not always enough to justify putting a shovel in the ground.

Three-month forward copper prices on the London Metal Exchange reached a record $13,310 per metric ton on January 15.

Oil prices settled higher on Friday as some investors covered short positions ahead of the three-day Martin Luther King holiday weekend in the US and lingering worries about a possible US military strike against Iran.

Brent crude settled at $64.13 a barrel up 37 cents or 0.58 percent. US West Texas Intermediate finished at $59.44 a barrel up 25 cents, or 0.42 percent.

Most of Friday’s gains seemed to be due to buying supply ahead of the long weekend, said John Kilduff, partner with Again Capital LLC.

“With that carrier strike group making the move to the (Persian) Gulf, it doesn’t seem likely anything will happen soon,” Flynn said.

The US Navy’s aircraft carrier USS Abraham Lincoln was expected to arrive in the Persian Gulf next week after operating in the South China Sea.

Weighing against those fears are potential supply increases from Venezuela, said Phil Flynn, senior analyst with Price Futures Group.

“The supply from Venezuela has not become the tidal wave that was expected,” Flynn said. “Buying today seems to be people not wanting to be caught short over the long weekend.”

Both benchmarks hit multi-month highs this week after protests flared up in Iran and US President Donald Trump signalled the potential for military strikes, but lost over 4 percent on Thursday as Trump said Tehran’s crackdown on the protesters was easing, allaying concerns of possible military action that could disrupt oil supplies.

“Above all, there are worries about a possible blockade of the Strait of Hormuz by Iran in the event of an escalation, through which around a quarter of seaborne oil supplies flow,” Commerzbank analysts said in a note.

“Should there be signs of a sustained easing on this front, developments in Venezuela are likely to return to the spotlight, with oil that was recently sanctioned or blocked gradually flowing onto the world market.”

Analysts expect higher supply this year, potentially creating a ceiling for the geopolitical risk premium on prices.

“Despite the steady drumbeat of geopolitical risks and macro speculation, the underlying balance still points to ample supply,” said Phillip Nova analyst Priyanka Sachdeva.

“Unless we see a genuine revival in Chinese demand or a meaningful bottleneck in physical barrel flows, oil looks range-bound, with Brent broadly hovering between $57 and $67.”

The country’s ready-made garment (RMG) exports to the European Union (EU) grew 7.65 percent to €18.05 billion (around $20 billion) during the January-November period of last year, compared with the same period in 2024, according to Eurostat, the EU’s official statistical office.

The rise follows a 15 percent increase in shipments to the United States, Bangladesh’s single largest market, during January-October last year amid the reciprocal tariffs.

The new US duties reshaped the apparel trade in the South Asian region, prompting countries with higher US tariffs to divert a large portion of shipments to Europe, often at more competitive prices. This shift intensified competition in the European garment market.

Despite the year-on-year gain, exports to the EU fell 10.87 percent month-on-month to €1.37 billion in November 2025 compared with November 2024. Eurostat data showed that while unit prices for garments fell 3.25 percent, export volumes rose 11.26 percent. Over the 12 months from November 2024, unit prices dropped 12.27 percent.

Bangladesh, the second-largest garment exporter to the EU, is narrowing the gap with China, the world’s largest exporter.

China shipped €24.42 billion worth of garments to the EU in the January-November period last year, up 6.55 percent year-on-year.

In total, the 27 EU member states imported a total of €82.94 billion worth of garments in the first 11 months of 2025, a 3.93 percent increase from the previous year.

Among Bangladesh’s competitors, Turkey’s exports fell 11.31 percent to €7.65 billion, India’s rose 8.31 percent to €4.24 billion, Cambodia’s grew 15.21 percent to €4.14 billion, and Vietnam’s increased 10.10 percent to €4.01 billion.

Pakistan’s shipments rose 10.46 percent to €3.54 billion, Morocco’s fell 0.18 percent to €2.52 billion, Sri Lanka’s grew 6.43 percent to €1.25 billion, and Indonesia’s rose 3.30 percent to €0.90 billion, according to data.

Local exporters have urged the government to intensify negotiations with the EU to secure GSP Plus status. Bangladesh’s current Generalised Scheme of Preferences (GSP) benefits under the Everything but Arms (EBA) initiative will expire in 2029.

The country is set to graduate from least developed country (LDC) status to a developing nation on November 24. The EU will maintain current GSP benefits for a transitional period of three years.

To qualify for GSP Plus, Bangladesh must comply with 32 international conventions covering human rights, labour standards, environmental protection, and good governance. GSP Plus would guarantee duty-free access to the EU market after graduation. Without it, Bangladesh could face tariffs of over 12 percent, potentially reducing competitiveness.

Studies suggest losing GSP Plus could cost Bangladesh roughly 14 percent of its exports in a year, equivalent to $8 billion. Currently, 73 percent of the country’s export earnings rely on GSP-related trade facilities, and Bangladesh alone enjoys 67 percent of the trade benefits available to all 44 LDCs.

Oil prices plunged on Thursday after fears over instability in Iran were eased by comments from US President Donald Trump.

West Texas Intermediate dropped 3.0 percent to $60.16 per barrel while Brent crude was down 2.93 percent to $64.57, after Trump said he had been told the killings of protesters in Iran had been halted.

In a surprise announcement at the White House, the US president added that he would "watch it and see" about threatened military action.

"They've said the killing has stopped and the executions won't take place -- there were supposed to be a lot of executions today and that the executions won't take place -- and we're going to find out," he said.

Trump had repeatedly talked in recent days about coming to the aid of the Iranian people over a crackdown on protests that rights groups say has left at least 3,428 people dead.

Concern that the situation could restrict supplies of crude had caused oil prices to rise around 1.5 percent on Wednesday.

"Oil prices dropped... on comments from US President Donald Trump that Iran would refrain from any further killing of protesters, watering down fears of a looming supply shock in energy markets," said Kyle Rodda of Capital.com.

Iran makes up three percent of global oil production, analyst Michael Wan of financial group MUFG noted this week.

Wan said Thursday that Trump's latest comments "come even as the United States has redeployed some personnel in Qatar and other American bases from ongoing geopolitical tensions and possible Iranian threats to target those locations".

Lease term and settling loans have emerged as challenges centring the shifting the authority of Savar Tannery Industrial Estate to the Bangladesh Export Processing Zones Authority (Bepza) from the Bangladesh Small and Cottage Industries Corporation (Bscic) over compliance.

The barriers include the lease term of land under the Bepza, how the loans taken from various banks and financial institutions during the Bscic period be settled, and how new charges are determined for the operation of the Central Effluent Treatment Plant (CETP).

Stakeholders involved in the industry said that several tannery owners in Savar have huge outstanding debts, amounting one thousand to one and a half thousand crore taka.

Before handing over to the industrial park Bepza, the tannery owners demanded special rescheduling benefits, including waiver of interest on these loans.

Ashik Chowdhury, executive chairman of Bangladesh Economic Zones Authority (Beza) and the Bangladesh Investment Development Authority (Bida), told The Business Standard, "A roadmap for the Savar Leather Industrial City has been prepared and submitted to the Ministry of Industries after discussions with stakeholders. Now, the Ministry of Industries will make the final decision on this matter."

Recently, the high-powered committee, formed by the government to prepare a roadmap regarding the control of the industrial park, has submitted a report with some recommendations.

The Savar Industrial Park was developed on 199.40 acres of land as part of a government initiative to relocate tanneries from Hazaribagh and curb environmental pollution, setting up a CETP on 17.30-acre of land with sewage treatment plants and dumping yards to treat 25,000 cubic metres of waste.

The construction work of the project was scheduled to be completed in 2005 after beginning two years back. However, the deadline was extended 12 times, and costs increased from Tk175 crore to Tk1,015 crore before it was formally completed in 2021.

According to sources at the government-formed committee, the CETP has been unable to treat more than 15,000 cubic metres of effluent per day due to shortages of skilled personnel and technical expertise. Solid waste management is another major concern, with large volumes of leather waste contributing to environmental pollution and loss of potential economic value.

To address these issues, the committee headed by Major General (retd) Md Nazrul Islam, executive member of Bepza, was formed in August last year.

Speaking to TBS, he said the most critical issue is the heavy debt burden on tannery units as many operators borrowed heavily but failed to achieve viable production, raising difficult questions about how the government should deal with liabilities of non-operational units.

Highlighting the importance of a strong and effective management structure, he said that a strong body is badly needed to govern such the estate.

Acknowledging complexities in completing the process, a committee member said balancing the interests of tannery owners, finished leather producers, and regulatory bodies are challenging, particularly given the unresolved debt and liability issues.

Leather Development Forum (LDF) Coordinator Taherul Islam said the Bepza management could significantly increase effluent treatment costs, potentially raising CETP charges from the current Tk40–60 per cubic metre to more than Tk200 per cubic metre.

Such an increase, he warned, would be commercially unviable for most tannery operators and highlighted legal complications arising from differences in land-leasing policies.

While Bscic provides 99-year lease deeds, Bepza generally offers 30-year rental agreements, which could create contractual and legal hurdles during any transition, he said.

Ferdaus Ara Begum, chief executive officer of Business Initiative Leading Development (BUILD), described the process as a positive step, citing Bepza's track record in managing export processing zones in Dhaka, Cumilla, and other regions.

She said Bepza is widely regarded as one of Bangladesh's most successful institutions, particularly in operating CETPs, and its experience could improve effluent management at Savar.

However, the BUILD chief executive cautioned that several structural and contractual issues need to be resolved.

Tannery workers decry wage non-implementation a year after declaration

Bscic Chairman Md Saiful Islam said the estate will be governed according to government decisions based on the committee's recommendations.

Md. Shakawat Ullah, senior vice chairman of the Bangladesh Tanners Association (BTA), told TBS that tannery owners have taken a 99-year lease from the BSCIC to construct facilities, and currently, about 141 units are in production there.

"During a discussion with us, it was informed that the industrial city will be considered a specialised industrial area and the industrial units will operate under the existing rules and regulations of Bscic. However, matters such as CETP and waste management may be handled through separate arrangements, for which a prescribed fee will be collected from the industrial owners," he claimed.

With the transfer of management, clarity is needed on whether this supply system, NBR-related issues, he said.

Regarding the loan-related challenges, Shakwat said that since 2017, many tannery owners have been unable to run their businesses normally, causing a huge burden of loans and interest.

He said that these issues have also been included in the set of recommendations and that later, discussions with the Ministry of Finance could be held to find solutions.

Three years after Saudi Red Sea Gateway Terminal (RSGT) took over the operation of the Patenga Container Terminal (PCT), the crucial port facility still cannot deliver as expected due largely to infrastructure shortfalls and operational weaknesses.

This comes out in a post-completion evaluation by the Implementation Monitoring and Evaluation Division (IMED).

The IMED said the Saudi firm has yet to install a full set of container-handling equipment at the terminal built by the Chattogram Port Authority (CPA), limiting its ability to handle the targeted number of containers.

An insufficient number of gantry cranes, only one jetty being fully operational instead of three, and the absence of an integrated automated system linking customs, security and port management are blamed by the IMED for the terminal's underperformance.

The evaluation found that both the Cost-Benefit Ratio (CBR) and Internal Rate of Return (IRR) fell short of targets set in the original and revised project documents.

Project documents projected a financial CBR of 1.18 and an economic CBR of 1.03, with financial and economic IRRs of 9.80% and 12.30% respectively. Actual outcomes, however, show a financial CBR of 1.02 and an economic CBR of 0.54, while financial and economic IRRs stand at 4.18% and 6.52%—well below expectations.

IMED noted that the terminal is currently handling around 2–2.4 lakh twenty-foot equivalent units (TEUs) annually, far below the original target of 4.5 lakh TEUs. The report said output could rise to as much as 8 lakh TEUs a year if backup areas were expanded, but warned that without rapid infrastructure upgrades, full automation and stronger operational coordination, the terminal is unlikely to achieve its potential.

While the master plan envisaged berthing three large container vessels simultaneously, only two jetties are functioning. One of these two jetties, built with a cantilever dolphin structure, cannot accommodate large container ships, further constraining capacity.

The report also said the main gate is not fully operational even three years after project completion, forcing container trucks to use an alternative gate beside the administration building, raising security concerns and causing traffic congestion.

Implemented by the CPA under the Ministry of Shipping, the project period was extended by 75%, from July 2017-December 2019 to December 2022, prompting IMED to question planning and execution capacity.

IMED found that several vehicles – including Pajero SUVs, motorcycles, pickup trucks, an ambulance, pilot boats and speedboats – were procured at higher costs than estimated in the revised project document, while firefighting vehicles included in the plan were not purchased. During physical inspection, the project director could not present any of the procured vehicles on site, raising concerns about transparency and oversight.

The report also highlighted foreign port visits by officials from the Ministry of Shipping, CPA and the Bangladesh Army's 24 Engineering Brigade to ports in Singapore, New Zealand and Australia. However, no individual or group "lessons learnt" reports were submitted, leaving unclear whether the knowledge gained was applied to the project.

However, the overall project cost fell significantly. The original DPP estimated the cost at Tk1,868.28 crore, which was reduced to Tk1,229.58 crore in the revised DPP, and ultimately declined to Tk1,147.97 crore upon completion.

The IMED report further stated that although the estimated cost of the completed project was reduced by 34.18%, the implementation period was extended by 75%. In the feasibility study report, the estimated cost of constructing the physical infrastructure of the Patenga Container Terminal (PCT) was proposed at Tk759.33 crore without any draft or master layout plan. Based on the feasibility study, the project proposal (DPP) was prepared, and under the revised DPP the project was implemented at a cost Tk357.76 crore higher than the original estimate, amounting to Tk1,117.09 crore. IMED sought an explanation from the implementing agency, the CPA, regarding the justification for this increased cost.

IMED recommended preparing an urgent, comprehensive, internationally standard master plan to modernise Chattogram Port, urging the Ministry of Shipping to consider both banks of the Karnaphuli River—Patenga and Anwara—in an integrated manner.

Project director Mizanur Rahman Sarkar told TBS that the IMED report had not yet reached him but said all documents would be provided if explanations were sought. He said the Bangladesh Army's 24 Engineer Construction Brigade carried out the main works after ministerial approval, with the port authority overseeing implementation.

He added that the operator is currently running at about 50% capacity and is expected to reach full capacity around 2027. Responding to observations on the main gate and dolphin jetty, he said the main gate is operational and that the dolphin jetty is intended for lighter vessels and liquid cargo carriers, not large container ships. He also noted that gateway and operational components fall under separate projects with different project directors.

With Ramadan fast approaching, Bangladesh's supply chain for essential food items is coming under strain as a severe shortage of lighterage vessels has stalled cargo discharge at Chattogram Port's outer anchorage, raising fears of shortages and price hikes during the fasting month.

Port data show that as of 15 January, 108 cargo vessels were waiting at the outer anchorage and the Kutubdia channel, carrying more than 45 lakh tonnes of cargo. Of these, 17 vessels were loaded with around 12 lakh tonnes of Ramadan-related food items, including wheat, maize, soybean, chickpeas, lentils and edible oil. Another five vessels were carrying more than 2 lakh tonnes of sugar, while seven were loaded with fertiliser, and 25 carrying cement clinkers.

Under normal conditions, a 50,000-tonne mother vessel can complete discharge within seven to 10 days using lighterage vessels that shuttle cargo to river ports and terminals. But the current shortage has pushed waiting times to 20-30 days, with some ships unable to unload at all for days at a time.

Demand outstrips supply

The impact is already visible. The Queen Trader, which arrived at Kutubdia on 8 January carrying 54,000 tonnes of wheat for Akij Flour Mill, RB Traders and Crown Traders, has managed to unload only 5,870 tonnes in the past five days – far below the normal daily rate of 7,000-8,000 tonnes. At this pace, port sources estimate, full discharge could take around 40 days.

The Water Transport Coordination Cell (WTCC) says demand for lighterage vessels is far outstripping supply. On 13 January, 104 lighterage vessels were required to serve 90 mother ships, but only about 50 could be allocated.

To prioritise food consignments, authorities have temporarily stopped allocating lighterage vessels to large companies that operate their own fleets. Even so, shortages persist. Ten government fertiliser vessels have been waiting for more than a week without any lighterage support, raising the risk of stock shortages at government warehouses and renewed pressure on the agricultural sector.

Port Authority monitoring situation

Shipping Adviser Brigadier General M Shakhawat Hossain said the authorities are aware of the crisis.

"The ministry and the port authorities are monitoring the situation. The Department of Shipping, the Chattogram Port Authority and other relevant agencies are working on the ground to locate the missing lighterage vessels. If any irregularities are found, strict action will be taken," he told The Business Standard.

Staggering daily demurrage

Traders and shipping agents warn that the delays could destabilise markets just as Ramadan-related demand peaks. Sarwar Hossain Sagar, president of the Bangladesh Ship Handling and Berth Operators Association, said unloading operations have slowed to a near standstill.

"A ship that should leave in 10 days is now waiting 25 to 30 days," he said. "Importers are paying $15,000 to $20,000 per ship per day in demurrage. When you multiply that across nearly 90 vessels, the cost becomes staggering."

Industry estimates put the combined daily demurrage bill at $1.6-2 million, a burden that importers say will inevitably be passed on to consumers through higher food prices.

"This is no longer just a port problem," said a major food importer, requesting anonymity. "Every extra day a ship waits offshore adds to our costs. Those costs ultimately hit the wholesale and retail markets."

Several factors

WTCC officials say the shortage is being driven by several overlapping factors. Dense fog in recent weeks has disrupted river navigation, while 631 lighterage vessels are currently stuck at 41 ghats across the country, including 51 vessels engaged in transporting government-imported fertiliser. Delays in fertiliser bagging, shortages of trucks and labour, and congestion at government warehouses have prevented these vessels from unloading and returning to service.

"Out of around 1,020 registered lighterage vessels, if more than 630 are stuck, a shortage is inevitable," said WTCC Convener Haji Shafi. "On top of that, another 200 to 300 vessels are away delivering cargo across the country."

He added that lighterage traffic has also increased on routes serving Mongla and Payra ports, as well as on Indian routes, further reducing availability for Chattogram.

Ship handlers blame mismanagement

Ship handlers, however, argue that mismanagement and rigid rules are making the situation worse. They allege that some lighterage vessels are being used as floating warehouses ahead of Ramadan and that allocation practices are too inflexible.

Khairul Alam Sujan, former director of the Bangladesh Shipping Agents' Association, said stricter monitoring is needed.

"Using lighterage vessels as warehouses must be stopped, and the shipping ministry should bring all stakeholders to the table. Otherwise, the country risks food shortages during Ramadan," he said.

Operators also criticised regulations that prevent the use of privately owned or factory-owned lighter vessels at the outer anchorage.
"There are many vessels owned by importers that are sitting idle," said Sarwar Hossain. "Emergency flexibility is needed so alternative vessels can be used for essential food cargo. That alone could significantly ease the congestion."

Ripple to be felt through entire economy

With Ramadan drawing closer, business leaders warn that any prolonged disruption at Chattogram could ripple through the entire economy, tightening supplies in wholesale markets and pushing up prices for basic food items.

Port users say the crisis has moved beyond routine congestion and now threatens national supply-chain stability, calling for urgent, coordinated intervention to clear the backlog and protect Ramadan supplies.

A recently published Bangladesh Bank (BB) report shows a significant rise in financial inclusion of the rural population, especially women, in several sectors, including agent banking, deposit, CMSME, and cooperatives.

The strong rural footprint of banking infrastructure reflects a strategic push to reach beyond urban centers, BB said in its Financial Inclusion Report Bangladesh 2024.

The report offers a comprehensive update on the country’s financial inclusion landscape as of December 2024. It states that the extensive network of financial players, emphasis on rural connectivity, and integration of mobile financial services (MFS) showcase a deep commitment to inclusivity.

Data from the report reveals that internet banking and point-of-sale services recorded strong growth during the year, reflecting Bangladesh’s strategic push towards a cash-light, digital-first economy.

Agent banking continued its rapid expansion, with total outlets rising to 21,248, of which 85.6 percent were located in rural areas. The segment now serves more than 2.4 crore accounts, holding deposits of Tk 41,900 crore.

Notably, female ownership in agent banking reached 50 percent, indicating progress in gender inclusion.

Financial access among underserved groups also improved through no-frill accounts, which stood at 3.10 crore by the end of 2024. Nearly 70 percent of these accounts were based in rural regions, highlighting ongoing efforts to bring low-income populations into the formal financial system.

Credit flow to small businesses remained robust, with CMSME (cottage, micro, small and medium enterprises) loan disbursement amounting to Tk 62,600 crore. A growing share of this lending went to cottage and micro enterprises, supporting grassroots economic activity.

The microfinance sector remains crucial for inclusive growth, with over 42 million accounts, daily loans and savings, primarily benefiting rural and low-income populations.

Microfinance has remained pertinent in enabling small-scale entrepreneurs, farmers, and women-led enterprises to access funds that support livelihood activities and contribute to local economies, the BB report adds.

Cooperatives remain vital for accelerating financial inclusion across rural and urban communities and have been serving over 1.25 crore members (32 lakh women).

Despite its progress, the cooperative sector still faces some challenges, including the presence of inactive cooperatives, limited manpower, and the need for stronger transparency in management, the report mentions.

Gender and youth inclusion showed steady gains. Female-owned deposit accounts increased from 5.07 crore to 5.5 crore, an 8.48 percent rise.

School banking programmes covered 43.8 lakh accounts, with rural areas accounting for 53.28 percent of the total, while female participation reached 49.02 percent.

As per the report, key achievements include substantial growth in digital financial services, with MFS transactions of Tk 164,000 crore in 2024, a 32.02 percent increase from the previous year and total MFS accounts rising by 8.3 percent to 238.6 million, complemented by 18.3 crore MFS agents.

The report noted progress under the National Financial Inclusion Strategy, with 69 percent of targets fully achieved and 28 percent partially met by December 2024, while stressing the need for stronger digital literacy, infrastructure and interoperability to sustain momentum.

President Donald Trump on Saturday vowed to implement a wave of increasing tariffs on European allies until the United States is allowed to buy Greenland, escalating a row over the future of Denmark's vast Arctic island.

In a post on Truth Social, Trump said additional 10% import tariffs would take effect on 1 February on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Great Britain — all already subject to tariffs imposed by Trump.

Those tariffs would increase to 25% on 1 June and would continue until a deal was reached for the US to purchase Greenland, Trump wrote.

TRUMP WANTS GREENLAND FOR SECURITY, MINERALS

The president has repeatedly said Greenland is vital to US security because of its strategic location and large mineral deposits, and has not ruled out using force to take it. European nations this week sent military personnel to the island at Denmark's request.

"These Countries, who are playing this very dangerous game, have put a level of risk in play that is not tenable or sustainable," Trump wrote.

"The United States of America is immediately open to negotiation with Denmark and/or any of these Countries that have put so much at risk, despite all that we have done for them, including maximum protection, over so many decades," he said.

Protesters in Denmark support Greenland after Trump's takeover threat

Protesters in Denmark and Greenland demonstrated on Saturday against Trump's demands and called for the territory to be left to determine its own future.

The countries named by Trump on Saturday have backed Denmark, warning that the US military seizure of a territory in NATO could collapse the military alliance that Washington leads. After the US president's social media post, Norway's top diplomat reiterated support for Denmark and said tariffs should not be part of Greenland discussions.

"There is broad agreement within NATO on the need to strengthen security in the Arctic, including in Greenland," Norway's Foreign Minister Espen Barth Eide said in a statement. "We do not think the question of tariffs belongs in this context."

Trump had floated the idea of tariffs over Greenland on Friday, without citing a legal basis for doing so.

TRADE DEALS UNDER THREAT?

Saturday's threat could derail tentative deals Trump struck last year with the European Union and Great Britain. The deals included baseline levies of 15% on imports from Europe and 10% on most British goods.

Europeans send troops to Greenland as Trump presses claim

Tariffs have become the US president's weapon of choice in seeking to compel American adversaries and allies alike to meet his strategic and economic demands.

Trump said this week he would put 25% tariffs on any country trading with Iran as that country suppressed anti-government protests, though there has been no official documentation from the White House of the policy on its website, nor information about the legal authority Trump would use.

The US Supreme Court has heard arguments on the legality of Trump's sweeping tariffs, and any decision by the top US judicial body would have major implications on the global economy and US presidential powers.

Citing threats from Russia and China, Trump has repeatedly insisted he will settle for nothing less than ownership of Greenland, an autonomous territory of Denmark. Leaders of both Denmark and Greenland have insisted the island is not for sale and does not want to be part of the United States.

Danish and other European officials have pointed out that as Greenland is part of NATO, it is already covered by the alliance's Article 5 collective security pact.

The US already has a military base, Pituffik Space Base, in Greenland, with around 200 troops, and can deploy as many more forces as it wants under a 1951 agreement.

That has led many European officials to conclude that Trump is motivated more by a desire to expand US territory than security concerns.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), lost 39 points last week (11-15 January) amid declining investor participation and selling pressure, with share prices of the majority of stocks falling and turnover shrinking.

Of the five trading sessions during the week, the index edged up in three sessions and fell in two, shedding 39 points or 0.80%, DSE data showed.

However, DSEX witnessed a jump of 88 points in the previous week (4–8 January) as investors focused on buying sector-specific stocks, largely blue-chip shares.

Last week, besides the declining indices – DS30, the blue-chip index by 2.22 points and DSES, the shariah index by 15 points – turnover fell to Tk1,900 crore week as overall market participation remained muted as most investors largely stayed on the sidelines with the daily average at Tk380 crore – down 20% from the previous.

Meanwhile, of the traded issues, prices of 93 stocks advanced, 268 declined, and 25 remained unchanged.

EBL Securities in its weekly market commentary said, "The capital bourse observed a weakening momentum after three consecutive weeks of recovery, as market sentiment turned cautious amid concerns over the ongoing domestic gas crisis and prevailing geopolitical tensions."

"The week opened on a dismal note, weighed down by broad-based selling in the first session as investors were rattled over emerging adversities."

"Although selective large-cap stocks saw tentative buying interest in subsequent sessions, it provided only limited support and was proven insufficient to offset the broadly subdued market trend. Meanwhile, investor participation was also shifted to the insurance sector owing to positive expectation over the recent sectoral developments, it noted.

Investors were mostly active in Pharma sector, followed by General Insurance and Bank.

Among the top turnover stocks, A-category shares – companies that pay dividends of over 10% – led the chart, while Z-category stocks dominated both the top gainers and top losers lists.

Of the top ten gainers, six were Z-category stocks, two A-category, and two B-category. Among the top ten losers, nine were Z-category stocks, with only one from the A category.

Alongside expanding the essential medicines list, the government is set to introduce a new pricing policy mandating pharmaceutical companies to ensure at least 25% of their annual sales from these essential drugs.

Under the new policy, companies that fail to meet the 25% threshold will be barred from seeking approval for new drugs, as applications will not be considered by the authorities.

The policy has been approved by the health ministry and is now awaiting gazette notification.

The government on 8 January announced the expansion of the National Essential Medicines List, adding 135 drugs and raising the total to 295, and said their prices will be fixed soon. It also announced that the National Medicine Pricing Policy 2025 has been finalised.

While officials describe the move as a major step towards improving access and affordability, pharmaceutical industry leaders have sharply criticised the policy, calling the mandatory supply requirement unrealistic and detached from market realities.

Manufacturers also allege that they were not meaningfully consulted during the formulation of either the expanded essential medicines list or the new pricing framework.

Industry representatives said that although their association submitted position papers and supporting documents to the pricing committee, these were not reflected in the final policy.

Infograph: TBS
Infograph: TBS

Why manufacturers avoid essential drugs

Dr Md Zakir Hossain, secretary general of the Bangladesh Association of Pharmaceutical Industries (BAPI), told The Business Standard that no pharmaceutical company in Bangladesh produces only essential medicines.

"Some companies produce just 5–10% essential drugs, while many newer firms produce none at all," he said. "Imposing a 25% requirement without revising prices would inevitably lead to financial losses or even factory closures."

He noted that the previous list of 117 essential medicines had remained largely unchanged for decades, with prices revised only twice in the last 32–33 years, making production commercially unviable.

"At current regulated prices, manufacturers incur heavy losses. This is why many companies avoid producing essential medicines," he said.

Dr Zakir warned that several saline manufacturers have already shut down due to compulsory pricing policies and pointed to regulatory bottlenecks in importing raw materials, which require multiple layers of approval. He added that companies have yet to receive official guidance on how the new pricing framework will be implemented.

Syed S Kaiser Kabir, chief executive officer and managing director of Renata, echoed similar concerns, describing the policy as disconnected from ground realities.

"The decision to mandate at least 25% of total production as essential medicines was taken without consulting the industry and bears no relation to the current market structure," he told The Business Standard.

"This reflects a command-economy mindset," he said. "If the government fixes prices below production costs, no company will manufacture the product. That is basic economics."

Questioning the demand assumptions, he added: "Where is the market for 25% of my total output to be essential drugs? Should companies manufacture excess products and stockpile them? No product can be produced without demand."

Abdul Muktadir, president of BAPI, said the health ministry had excluded industry stakeholders from the pricing process altogether.

"We were not consulted at any stage, and even now we do not know whether this policy will ultimately benefit or damage the pharmaceutical sector," he said.

Public health experts urge caution

Dr Md Abu Zafor Sadek, a pharmacist and former World Bank consultant, welcomed the expansion of the essential medicines list, calling it a positive step for public health. However, he cautioned that rigid price controls could undermine quality, disrupt supply continuity and discourage future investment.

He said collaborative pricing mechanisms, rather than unilateral price fixation, were more likely to serve patients effectively. On the proposed 25% production requirement, he added that business decisions tend to function best when guided by market demand rather than compulsion.

Government calls policy a 'landmark decision'

Announcing the updated essential medicines list on 8 January, Md Sayedur Rahman, special assistant to the chief adviser for the health ministry, said essential medicines address nearly 80% of common diseases.

He said price regulation of these medicines would directly improve affordability and availability for the majority of the population, describing the initiative as a "landmark decision".

According to him, a task force spent the past 14 months consulting manufacturers, researchers, international organisations and other stakeholders on the pricing framework.

"Not everyone agreed, and reaching full consensus is difficult," he said. "But the policy reflects broad-based consultation."

Once gazetted, all essential medicines will fall under price regulation, with no exceptions, he added.

'Win-win situation', says task force member

Syed Abdul Hamid, professor of health economics at Dhaka University and a member of the task force on the National Essential Medicines List, said prices of essential medicines were rarely adjusted after 1994, causing manufacturers to gradually abandon them.

"As companies shifted towards medicines with indicative prices, doctors prescribed those more frequently, forcing patients to buy relatively expensive alternatives," he said.

He argued that the new formula-based pricing system would bring essential medicines back into the market at affordable prices. By way of example, he said a drug that should have cost Tk2 was previously unavailable, forcing consumers to pay Tk10 for substitutes.

"Companies will still earn profits, but these will be regulated profits," he said, adding that the system would also curb aggressive marketing, as additional promotional costs could no longer be passed on to consumers.

"If implemented properly, this policy can create a win-win situation for both the public and the pharmaceutical industry," he said.

Cost-plus pricing for essential medicines

Under the new rules, essential medicines will be priced using a cost-plus benchmarking method to determine the maximum retail price (MRP), excluding VAT.

The government-nominated committee or the DGDA will set MRPs based on the cost of raw materials – including active pharmaceutical ingredients (API) and excipients – as well as primary packaging and class-based markups.

Primary packaging costs will be included as they come into direct contact with medicines, while secondary and tertiary packaging costs will be excluded to prevent unnecessary price escalation.

Reference pricing for non-essential medicines

For non-essential medicines, manufacturers will propose the MRP, subject to DGDA approval.

If seven or more companies produce a medicine, the median market price will be used as the benchmark under the Internal Reference Pricing system. If fewer than seven companies manufacture the drug, the lower of the internal or international reference price will apply.

In all cases, the approved MRP must remain within 15% of the benchmark price.

For imported finished medicines, prices will be set based on the C&F value, prevailing exchange rate and a predetermined markup.

New generics, biologics and API import rules

Patent-free new generic medicines not previously marketed in Bangladesh will be priced using a benchmarking method that includes raw material costs, primary packaging, secondary and tertiary packaging, and a 1.30 markup for essential medicines.

Biologics — including vaccines, insulin injections and gene therapies — will be priced based on an objective assessment of production costs and a regulated, sector-priority profit margin.

To promote domestic API production, importers will be required to obtain a no-objection certificate (NOC) from the DGDA before importing APIs.

An NOC will be granted if the importer can demonstrate that the API is either not produced locally in sufficient quantity or that domestic prices exceed international reference prices by more than 20%. The DGDA is required to issue the NOC within seven working days of receiving a complete application.

The government's earnings from the stock market tumbled last year, hitting a five-year low as indices fell, trading slowed, and investor confidence wavered. Most of these taxes come from stock turnover, and the slowdown has taken a noticeable bite out of revenue.

According to Dhaka Stock Exchange (DSE) data, the government collected just Tk112 crore in FY25 – down a quarter from Tk153 crore the year before. To put it in perspective, this is the lowest since FY21. For context, back in FY22, the government raked in Tk286 crore despite a global market slowdown due to Covid-19, as the DSE was buzzing with activity.

That year, total trading hit a whopping Tk3.18 lakh crore, with daily turnover averaging over Tk1,300 crore – a 29% jump from the previous year.

In FY25, the DSE saw total trading of only Tk1.25 lakh crore, with an average daily turnover of Tk522 crore – a drop of nearly 16% compared with the previous year. The benchmark DSEX index opened strongly in August, reaching 6,016 points and seeing some days with turnover above Tk2,000 crore, as investors cheered the removal of the old government.

But the optimism didn't last long. Macroeconomic worries, weak corporate earnings, and low participation slowly dragged the market down. By late May, the index hit a low of 4,615 points before finishing the year at 4,838 – a 9% drop overall.

Activity on the market stayed sluggish, with investors hesitant to put fresh money in. The size of the market relative to the economy also shrank – the market capitalisation-to-GDP ratio fell to just 12%, showing that equities are playing a smaller role in Bangladesh's financial system. Valuations look tempting on paper, with the price-to-earnings ratio down to 8.6, but that alone hasn't been enough to lure investors back in meaningful numbers.

A managing director at a brokerage firm told The Business Standard, "The capital market is one of the government's money-making avenues. The more people trade, the more the government collects in taxes. Last year, the market barely moved, so revenue dropped."

He added that policymakers need to do more to get the market buzzing again. "After the recent government change, the market's been struggling with the economy. Once the new government takes office, focus should be kept on boosting activity. If the market picks up and businesses linked to it grow, government revenue will rise naturally," he said.

Ratna Patra, one of the directors of Square Pharmaceuticals PLC, has announced her intention to purchase 10 lakh shares of the company at the prevailing market price through both the public and block markets of the Dhaka Stock Exchange.

The disclosure was made on the DSE website yesterday, stating that the shares will be acquired within the next 30 working days.

Following the disclosure, shares of Square Pharmaceuticals closed 0.38% higher at Tk209.80 yesterday and emerged as the most traded stock on the DSE for the day. At the closing price, the total value of Ratna Patra's proposed purchase stands at around Tk21 crore, according to market estimates.

The announcement comes shortly after a similar move by the company's managing director, Tapan Chowdhury, who on 5 January expressed his intention to buy 20 lakh shares of Square Pharmaceuticals through the DSE.

Market participants view these back-to-back disclosures as a strong show of confidence by the company's top management at a time when the broader equity market continues to grapple with weak sentiment and low liquidity.

Analysts said insider share purchases by sponsor-directors are often interpreted as a positive signal, particularly during volatile or uncertain market conditions. Such moves suggest that management believes the company's share price does not fully reflect its underlying fundamentals or long-term growth potential. In the case of Square Pharmaceuticals, repeated insider buying over the years has helped reinforce investor confidence, especially among long-term shareholders.

Since 2020, four directors of Square Pharmaceuticals have collectively acquired about 1.51 crore shares of the company, with total investments amounting to nearly Tk300 crore. These purchases were made between February 2020 and April 2025, reflecting sustained confidence by sponsor-directors in the country's largest drug maker.

During this period, chairman Samuel S Chowdhury bought 50.25 lakh shares, while managing director Tapan Chowdhury also acquired an equal number. Two other directors, Ratna Patra and Anjan Chowdhury, purchased 30.25 lakh shares and 20.25 lakh shares respectively.

Square Pharmaceuticals is currently the second-largest listed company on the Dhaka Stock Exchange by market capitalisation, valued at around Tk18,500 crore, which represents roughly 5.6% of the total market capitalisation of the bourse.

According to the company's December shareholding statement, sponsors and directors jointly hold 43.59% of Square Pharma's shares. Institutional investors own 14.54%, foreign investors hold 14.52%, while general investors account for the remaining 27.35%.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondaker Rashed Maqsood has said that many of the reform and development plans undertaken after the current commission assumed office could not be implemented on time due to an acute shortage of manpower.

However, he claimed that despite these limitations, the commission is actively working to develop the capital market. He made the remarks on Thursday afternoon while speaking as the chair at the "BSEC Capital Market Journalism Excellence Awards" ceremony held in the capital.

Regarding BSEC's performance, Khondaker Rashed Maqsood said that against an approved workforce of 370 positions, only 260 officials and employees are currently working at the commission.

He noted that as a government institution, BSEC cannot recruit or take measures beyond the approved manpower structure.

"Despite these constraints, we have tried our best to continue operations on an interim basis," he said.

The BSEC chairman further explained that due to the manpower shortage, the tenure of several committees formed under the commission has had to be extended repeatedly. At the same time, officials are being engaged in multiple investigation activities outside their respective departments. In many cases, a single official is involved in four to seven investigations simultaneously, significantly increasing workload pressure, he added.

However, he assured that there has been no compromise in the quality or effectiveness of investigations. According to him, the commission is taking lawful and effective actions based on the investigation reports submitted by BSEC's investigation officers.

On 30 April, the commission temporarily suspended 21 officials on charges of breaching discipline.

At the event, a total of nine journalists were awarded the BSEC Capital Market Journalism Excellence Award in three categories – print, television, and online – in recognition of their contributions to capital market journalism.

The BSEC chairman also highlighted the positive and constructive role of journalists in ensuring capital market stability, boosting investor confidence, and promoting the development of a transparent, accountable, and advanced capital market system.

Bangladesh's equity investors have suffered steep losses over the long term, with each $100 invested in the country's stock market shrinking to just over $41 in dollar terms, reflecting a value erosion of nearly 59%, according to data from Morgan Stanley Capital International (MSCI).

The figures underscore the prolonged underperformance of Bangladesh's capital market compared to both global and frontier peers, raising fresh concerns about market structure, policy consistency and investor confidence.

According to MSCI's cumulative index performance data calculated up to December 2025, the MSCI Bangladesh Investable Market Index (IMI) stood at $50.39 in gross return terms, far behind the MSCI Frontier Markets IMI at $235.35 and the MSCI All Country World Index (ACWI) IMI at $428.49.

The divergence becomes even starker when net returns are considered. While the MSCI ACWI delivered net returns of $407.18 and frontier markets returned $218.07, MSCI Bangladesh's net return dropped to just $41.25. This means an investor who put $100 into Bangladesh equities over the long run lost nearly 59% of the original value in US dollar terms.

Market analysts say the poor performance reflects a combination of stagnant stock prices, weak liquidity and significant currency depreciation. Although some shares have shown resilience in local currency terms, the sharp fall of the taka against the US dollar has severely eroded dollar-based returns. As a result, even periods of relative price stability in taka have translated into losses for foreign investors once exchange rate effects are taken into account.

MSCI data also show that since November 2009, the MSCI Bangladesh Index has generated an average net return of minus 3.34%, compared to positive returns of 6.29% for frontier markets and 10.07% for the global index. This long-term underperformance has placed Bangladesh at the bottom among comparable markets tracked by global fund managers.

The MSCI Bangladesh IMI, which currently includes 36 companies and covers about 99% of the free-float adjusted market capitalisation, has a total market value of around $5.18 billion. The index is heavily concentrated in a few large-cap stocks, including Square Pharmaceuticals, Beximco Limited, BRAC Bank, Beximco Pharmaceuticals and Grameenphone. Market participants say this narrow investable universe limits diversification opportunities for global funds and increases vulnerability to stock-specific shocks.

A managing director of a brokerage firm said global fund managers largely rely on MSCI indices when allocating capital across countries. Persistent regulatory interventions, such as the imposition of floor prices, frequent policy changes and restrictions on price discovery, have reduced Bangladesh's attractiveness in global index frameworks. Both MSCI and FTSE Russell have maintained restrictions on Bangladesh-related indices due to concerns over market accessibility, liquidity and transparency, further dampening foreign interest.

Foreign investor activity has also weakened sharply in recent months. Data from the Dhaka Stock Exchange show that monthly foreign turnover fell to just $5 million as of mid-December, compared to $30 million in October and $22 million in November. Earlier in 2025, foreign participation had shown brief signs of recovery, peaking at $41 million in May and $40 million in July, but those inflows proved short-lived as global investors steadily reduced exposure.

December witnessed notable selling pressure in several heavyweight stocks, leading to a net foreign outflow of around Tk118 crore. According to the monthly shareholding report, foreign investors sold shares worth roughly Tk120 crore during the month, while buying amounted to only about Tk2 crore. Most of the selling was concentrated in large-cap stocks that traditionally dominate foreign portfolios.

Currently, total foreign investment in the Dhaka bourse stands at around Tk13,000 crore, with only about 36% of listed companies having any foreign shareholding.

The MSCI Bangladesh Index, launched on 1 December 2009, is part of MSCI's broader factor-based analytical framework. MSCI Factor Classification Standards (FaCS) group equities by key drivers of risk and return such as value, size, momentum, quality, yield and volatility – factors widely supported by academic research and validated by MSCI. These factor groups are built using 16 underlying metrics, including book-to-price, earnings and dividend yields, leverage, long-term reversal, earnings variability and beta, derived from MSCI's Barra GEMLT global equity risk model to enable transparent and intuitive fund comparisons.

MSCI Inc, formerly Morgan Stanley Capital International, is a US-based global financial services firm headquartered in New York. It provides widely used equity, fixed-income and real estate indices, multi-asset risk analytics, and ESG and climate solutions, including the MSCI World, Emerging Markets and All Country World indices.

Analysts said the MSCI index methodology is more fundamentally driven and therefore preferred by global fund managers, while the Dhaka Stock Exchange's index construction does not fully follow such internationally accepted standards.

As a result, the country's indices often fail to accurately reflect fundamentally strong stocks. This mismatch means local indices provide limited guidance on underlying corporate performance, making it difficult for investors to make informed and timely investment decisions based solely on domestic benchmarks.

The Dhaka Stock Exchange (DSE) saw a moderate rise yesterday (14 January), driven largely by sharp price hikes in several risky and loss-making stocks, raising concerns among market participants about speculative activity overshadowing fundamentals.

The benchmark DSEX advanced 19 points, or 0.40%, to close at 4,966, while the blue-chip DS30 index gained 9 points to settle at 1,908. Despite the positive index movement, overall trading activity weakened, with turnover slipping 4% to Tk369 crore.

Market observers noted that the day's rally was heavily influenced by aggressive buying in financially weak companies, many of which have a history of losses, poor governance, or regulatory challenges.

Shares of FAS Finance and Peoples Leasing topped the gainers' chart after hitting the upper circuit, while Prime Finance and Fareast Finance also posted near double-digit gains. BD Welding and BD Thai Food joined the rally, continuing a recent trend where low-priced and high-risk stocks attract short-term traders seeking quick gains.

Analysts said such price movements are largely detached from company fundamentals and are often fuelled by speculative positioning than by any meaningful improvement in earnings prospects or balance-sheet strength.

Notably, several of the top gainers came from the non-bank financial institution (NBFI) segment, which has been under prolonged pressure due to weak asset quality, liquidity constraints and, in some cases, regulatory action.

Despite these challenges, their share prices surged as retail investors chased momentum amid a lack of clear direction in fundamentally strong stocks.

In contrast, a number of companies faced selling pressure, with Bangladesh Industrial Finance Co Ltd (BIFC) leading the losers after shedding the maximum allowed limit. Shares of Shyampur Sugar, Bay Leasing, HR Textile and Meghna Cement also declined notably.

Turnover concentration remained limited to a handful of stocks, with ACI, Square Pharmaceuticals, City Bank, Orion Infusion, Dominage Steel and Saiham Textile featuring among the most traded issues.

However, traders pointed out that broader market participation remained subdued, as institutional investors stayed largely on the sidelines.

The Chittagong Stock Exchange mirrored the positive sentiment, with its CSCX index rising 21 points to close at 8,612, while the CASPI index added 30 points to finish at 13,915. Turnover at the port city bourse stood at Tk8.59 crore.

Industry experts and business leaders have urged the government to adopt business-friendly policies to develop a sustainable packaging sector, arguing that it has the potential to surpass the readymade garment (RMG) industry in export earnings.

The call was made at the closing ceremony of Garment Technology Bangladesh (GTB) 2026, held yesterday at the International Convention City Bashundhara (ICCB) in the capital.

Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) President Md Shahriar said corrupt individuals involved in money laundering had posed as businessmen and siphoned off large sums from banks, adding that genuine entrepreneurs never plunder a country's wealth.

Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell stressed the need for self-reliance, noting that although Bangladesh has achieved self-sufficiency in packaging and accessories, certain policies are pushing the industry towards decline.

He warned that allowing 100% duty-free "free of cost" imports would result in all products being sourced from abroad, threatening the survival of local factories. He also called for a reduction in excessive port charges and levies to enhance the competitiveness of domestic businesses.

Speaking as the chief guest, former commerce and home minister Altaf Hossain Chowdhury expressed optimism after witnessing the sector's dynamism and capacity. He said packaging and accessories exports reached $7.45 billion in the last fiscal year and could surpass the garment sector if provided with the right support.

He also said the BNP would stand by entrepreneurs and work to resolve the sector's challenges if it forms the next government.

Bangladesh Employers' Federation (BEF) President Fazle Shamim Ehsan was present as a special guest at the event.

The four-day event, the country's largest garment technology exhibition, was jointly organised by ASK Trade & Exhibitions Pvt Ltd and the BGAPMEA.

As part of efforts to diversify and expand export trade, the BGAPMEA organised the 15th Garments Accessories and Packaging Expo (GAPEXPO), which featured 350 member and non-member companies across 1,500 stalls.

Companies from India, China, Pakistan, Taiwan, Australia, Germany and Dubai participated in the exhibition. Machinery, raw materials and locally manufactured garments accessories and packaging products were showcased.

Organisers said the expo attracted more than 1,00,000 visitors, creating effective linkages between buyers and sellers. On the final day, eight participating stalls were awarded crests in recognition of being selected as the "best stalls."