The Bangladesh Securities and Exchange Commission (BSEC) is working to introduce a comprehensive framework to define and regulate public interest companies (PICs), aiming to restore regulatory control over capital issuance and prevent misuse in the securities market.

The draft rules, which will be published soon for public opinion, seek to repeal a 2019 exemption that allowed non-listed companies to raise capital without prior BSEC approval.

Under Section 8(1) of the Securities and Exchange Commission Act 1993, the BSEC is tasked with ensuring proper issuance of securities, protecting investor interests, and developing the securities market. But the exemption granted in 2019 removed the need for non-listed companies to seek commission permission for capital raising, a senior BSEC official told The FE.

As a result, the regulator lost oversight over a large segment of capital issuance.

Currently, companies only submit a return of allotment to the Registrar of Joint Stock Companies and Firms (RJSC), which records the filing without examining or regulating the issuance.

According to the official, the absence of regulatory scrutiny created opportunities for misuse. In some cases, companies allegedly inflated their capital structure without adequate asset backing and later entered the market through initial public offerings (IPOs).

Proposed definition of public interest companies

Under the draft framework currently being finalised, the BSEC has outlined specific conditions for classifying companies as PICs and regulating their capital-raising activities.

According to the proposed structure, entities dealing directly with public funds or securities -- such as banks, financial institutions, insurance companies, stockbrokers, stock dealers and merchant banks -- would automatically fall under the PIC category regardless of capital size.

All listed companies would also be classified as PICs.

Financial thresholds for PIC classification

Companies meeting any of the following financial criteria may also be classified as PICs:

- Public limited companies with paid-up capital exceeding Tk 50 million.

- Private limited companies with capital above Tk 150 million.

- Companies with annual revenue exceeding Tk 1 billion.

- Companies borrowing Tk 200 million or more from banks or other public sources

Even privately held companies meeting these thresholds would be considered PICs due to their involvement with public money or stakeholders.

Capital raising rules under consideration

The draft framework introduces specific conditions linking company size with fundraising methods:

-- Companies with capital exceeding around Tk 500 million may be required to raise funds through an IPO, sharing ownership with the public.

-- Firms with capital between Tk 50 million and Tk 500 million could use qualified investor offers.

-- Private placements to outsiders would be limited to a maximum of 20 investors to prevent informal conversion of private offers into public fundraising.

Disclosure and Compliance Requirements

PICs would face mandatory public disclosures even if they do not raise capital via the regulator.

The disclosure standards include maintaining a functional website with details on the company, directors, audited financial statements, annual reports, and contact information.

The website may also be linked with the RJSC database for enhanced transparency.

Digital Approval System

To streamline the process, the commission is also exploring the introduction of a digital platform that would allow companies to apply for capital issuance approvals online.

"This will ensure that companies can apply from anywhere and receive approvals online, making the process faster and more efficient," said the official.

The Commission plans to finalise the proposals after further consultations and the draft rules will be placed for public opinion before implementation.

When asked, Md Abul Kalam, Director and Spokesperson at BSEC, confirmed that the commission is working on the draft rules and will publish them for public feedback.

SM Fakhar-Uz-Zaman, one of the sponsors and former chairman of Rangpur Dairy and Food Products Ltd, widely known as RD Food, has announced plans to sell his entire shareholding in the company through the stock market.

He disclosed his intention to sell 1.05 lakh shares of RD Food at the prevailing market price through the public market on the Dhaka Stock Exchange (DSE) within the next 30 working days, according to a disclosure filed with the bourse.

Fakhar-Uz-Zaman, the founder of the company, served as chairman from 2004 to 2017.

Over the past few years, however, he has gradually reduced his ownership in the company. Market sources said Fakhar-Uz-Zaman began offloading shares in 2019 when he held nearly 10% of the company's shares.

Once the announced sale is completed, the former chairman will fully exit the company's shareholding.

Apart from his business involvement, Fakhar-Uz-Zaman is also active in politics. He is a presidium member of the Jatiya Party and contested the 13th national parliamentary election from the Rangpur-5 constituency, although he was unsuccessful in securing the seat.

Shares of RD Food closed 1.54% higher at Tk19.80 on Thursday on the Dhaka bourse.

The company's recent financial performance, however, reflects a decline in profitability compared to the previous year. Its earnings per share (EPS) stood at Tk0.16 for the October-December quarter of FY2025, down from Tk0.31 in the same quarter a year earlier.

For the July-December period of the 2025-26 fiscal year, the company reported EPS of Tk0.38, compared with Tk0.66 in the corresponding period of the previous year.

Meanwhile, the company's latest audit report has raised concerns over certain financial practices. Faruk Ahmed, partner at Khan Wahab Shafique Rayhman & Co Chartered Accountants, issued an opinion in the audit report for the fiscal year 2024-25.

According to the auditor, the company calculated its deferred tax liability using a previous statutory regulatory order (SRO) rate of 15% instead of applying the currently applicable rate of 22.5%, which could affect the accuracy of its reported tax obligations.

The auditor also flagged inconsistencies related to unclaimed dividends and IPO funds, noting that Tk57.37 lakh from the IPO subscription remained unadjusted under non-claimed general share applications, which overstated the company's capital position.

The auditor also raised concerns about the company's ability to repay bank loans and other liabilities, citing lower cash inflows.

The report stated that the net operating cash flow of the company decreased to Tk0.16 crore in FY25 from Tk1.47 crore in the previous fiscal year, primarily due to changes in the timing of collections and payments.

As a result, the report noted, the company is facing liquidity constraints, as reflected by delayed payments of bank loans and other liabilities.

The Bangladesh Securities and Exchange Commission (BSEC) has formed an investigation committee to examine allegations of irregularities surrounding board meetings and a leadership dispute at Navana Pharmaceuticals.

The securities regulator took the decision on 8 March and issued an official notification on 10 March, directing a four-member committee to conduct a detailed probe into the matter.

The committee consists of Lutful Kabir, additional director of the commission, Delowar Hossain, additional director, Motiur Rahman, assistant director, and Nizam Uddin, assistant director. The committee has been instructed to submit its report to the commission within seven working days, considering the urgency and importance of the issue.

The dispute stems from developments during the company's 65th board meeting held on 28 January. After approving the official agenda items, the meeting was formally closed by chairman and independent director Saiqa Mazed.

However, after the meeting was adjourned, another faction of the board reportedly convened and elected Javed Kaiser Ally as the new chairman and Sayeed Ahmed as the managing director, while also replacing the company secretary.

Saiqa Mazed later declared those decisions illegal, arguing that the appointments were made after the meeting had officially ended. She subsequently filed a petition with the BSEC seeking to annul the decisions and also lodged a case at Gulshan police station, citing threats from the rival group.

Following the allegations, the BSEC held a meeting with the board members and the company secretary of Navana Pharmaceuticals to review the situation before forming the inquiry committee.

According to the notification, the commission believes that the issue requires a comprehensive investigation as the composition of the company's board, the conduct of board meetings and corporate governance practices are closely linked with protecting the interests of general investors.

As part of the inquiry, the committee will examine several issues, including whether the company's 64th board meeting was actually held and if so, whether it was conducted in accordance with applicable laws and regulations. The probe will also review whether notices for the board meetings were properly issued as required by law and whether all eligible directors received those notices.

Investigators will also determine whether any external individuals received meeting notices or participated in the meetings and whether there were irregularities in setting the agenda, approving resolutions or preparing the minutes of the 65th board meeting.

The committee will further assess whether the processes related to appointing directors, removing the chairman and appointing or replacing the company secretary were carried out in accordance with legal requirements.

The regulator also directed that the board structure that remained in effect until the company's 63rd board meeting will continue unchanged until the disputed matters relating to the 64th and 65th meetings are resolved.

The reciprocal trade deal signed by the interim government with the United States limits Bangladesh’s ability to make independent decisions, economist Mustafizur Rahman said yesterday.

He made the remarks at a discussion titled “Unfair Trade Deal with the United States: A Threat to Bangladesh’s Economy, Security, and Sovereignty”, organised by the Communist Party of Bangladesh (CPB) at the Dhaka Reporters Unity.

Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), said the deal increases tariffs from 15 percent to 34 percent and forces Bangladesh to buy large quantities of US products, including defence equipment and Boeing planes, according to a press release.

“This deal limits our ability to make independent decisions and threatens our economy, security, and sovereignty,” he said.

MM Akash, a former professor of economics at Dhaka University, said, “This agreement was rushed and lacks transparency. Only a few people were involved, and it clearly favours US interests over Bangladesh.”

CPB President Sazzad Jahir Chandon called the deal a serious threat to the country, saying, “It must be cancelled immediately, and those responsible must face punishment.”

CPB former general secretary Ruhin Hossain Prince said the deal essentially protects US interests and forces Bangladesh into a state of dependency.

“The government must make all agreements public, and the people must oppose any actions that serve foreign powers over national interests,” he said.

CPB Dhaka North President Hasan Hafizur Rahman Sohel said those who signed the deal against the interests of Bangladesh must be held responsible.

The ongoing conflict in the Middle East and resulting airspace closures have disrupted flights across the region, affecting airlines operating routes between Bangladesh and Gulf countries.

As cancellations continue, carriers say they are losing a large number of passengers each day, leading to mounting revenue losses.

Airlines operating Middle Eastern routes say the cancellations have already translated into steep revenue losses.

Kamrul Islam, general manager (public relations) at US-Bangla Airlines, said the carrier is losing hundreds of return passengers each day due to reduced operations.

"We are losing about 600-700 passengers daily who would normally return from the Middle East," Kamrul told The Business Standard.

With the average one-way airfare at roughly Tk50,000, the airline is losing a substantial amount of revenue each day.

Since the crisis began, about 30 of the airline's Middle East-bound flights have been cancelled. The total financial loss is yet to be calculated as refunds and rescheduling continue.

Before the disruptions, US-Bangla operated multiple flights to Dubai, Abu Dhabi and Sharjah. Flights to Sharjah and Abu Dhabi remain suspended, while services to Qatar have also been halted.

The airline has announced plans to resume Sharjah flights on 13 April and Abu Dhabi flights on 14 April.

Before the crisis, airports in Dubai, Abu Dhabi and Doha served as major global crossroads.

Nearly 300,000 passengers pass through one of these hubs daily, about two-thirds of whom are transit travellers, according to a report published by The Guardian on 7 March.

When airspace closures disrupted flights through these hubs, the effects spread across the global aviation network, stranding travellers and forcing many to cancel trips.

The impact is particularly pronounced for Bangladesh, where a large share of international travellers rely on Gulf carriers such as Emirates, Qatar Airways, Etihad Airways and Saudia for onward connections.

The Dhaka Stock Exchange (DSE) has granted FIX certification to 11 more brokerage houses, allowing them to launch their own Order Management Systems (OMS) through API connectivity.

The firms receiving certification are NF Management Company, Akij Capital Management, Amar Securities, Commerce Bank Securities and Investment, Mona Financial Consultancy and Securities, Premier Bank Securities, Prilink Securities, Pubali Bank Securities, Remons Investment and Securities, Skyline Securities and United Securities.

Certificates were handed over at a ceremony at the DSE Tower on 11 March, where DSE Managing Director Nuzhat Anwar presented the FIX certifications to representatives of the brokerage houses.

Speaking at the event, Nuzhat said the DSE began efforts in 2020 to introduce an API (Application Programming Interface)-based Brokerage House Order Management System (BHOMS).

The system enables brokerage firms to connect directly to the exchange's Nasdaq-powered matching engine through APIs and operate their own order management platforms.

Under the initiative, 76 brokerage houses applied to the DSE seeking API connectivity to conduct trading through proprietary OMS platforms integrated with the Nasdaq matching engine.

With the addition of the latest 11 firms, the DSE has now granted FIX certification to 58 brokerage houses in total. Of them, 44 have already launched their own OMS using API connectivity, allowing client orders to be routed directly to the exchange's trading engine.

Market officials say the adoption of API-based trading infrastructure is expected to improve efficiency, transparency and technological capacity in the country's capital market. By allowing brokerage firms to use their own OMS platforms, the system facilitates faster order execution, improved risk management and smoother integration with trading systems.

The move is also part of broader efforts by the DSE to modernise market infrastructure following the introduction of the Nasdaq trading platform.

The price of gold in Bangladesh dropped by Tk3,324 per bhori today (12 March), following two consecutive hikes, according to the Bangladesh Jewellers Association (BAJUS).

In a notification issued on morning, BAJUS said the new price of 22-carat gold has been fixed at Tk267,106 per bhori (11.664 grams), effective immediately.

The association said the price adjustment was made as the price of pure gold (tejabi gold) declined in the local market.

Under the new rates, 21-carat gold will cost Tk254,975 per bhori, while 18-carat gold has been priced at Tk218,583 per bhori. The price of gold produced through the traditional method has been set at Tk178,401 per bhori.

BAJUS last adjusted gold prices on 11 March, when the price of 22-carat gold was increased by Tk2,216 per bhori to Tk270,430.

So far in 2026, gold prices have been adjusted 41 times in the local market: raised 26 times and reduced 15 times.

Alongside gold, the price of silver has also been reduced this time. BAJUS lowered the price of 22-carat silver by Tk350 per bhori, setting the new rate at Tk6,357.

In 2026, silver prices have been adjusted 26 times so far, with 16 increases and 10 reductions.

Top US and Chinese economic officials are set to launch a new round of talks in Paris on Sunday to iron out kinks in their trade truce and clear a smooth path for US President Donald Trump's trip to Beijing to meet with Chinese President Xi Jinping at the end of March.

The discussions, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, are expected to focus on shifting US tariffs, the flow of Chinese-produced rare earth minerals and magnets to US buyers, American high-tech export controls and Chinese purchases of US agricultural products.

The two sides will meet at the Paris headquarters of the Organisation for Economic Cooperation and Development, a source familiar with their planning said.

China is not a member of the club of 38 mostly wealthy democracies and considers itself a developing country.

US Trade Representative Jamieson Greer will also join the talks, which continue a string of meetings in European cities last year aimed at easing tensions that threatened a near collapse of trade between the world's two largest economies.

US-China trade analysts said that with little time to prepare and Washington's attention focused on the US-Israeli war with Iran, prospects for a major trade breakthrough are limited, in Paris or at the Beijing summit.

"Both sides, I think, have a minimum goal of having a meeting, which sort of keeps things together and avoids a rupture and re-escalation of tensions," said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies in Washington.

Trump may want to come away from Beijing with major Chinese commitments to order new Boeing aircraft and buy more US liquefied natural gas and soybeans, but to get that he may need to offer some concession on US export controls, Kennedy added.

Instead, Kennedy said chances were high for a summit that "superficially suggests progress but that really just leaves things about where they've been for the last four months."

Trump and Xi could potentially meet three other times this year, including at a China-hosted APEC summit in November and a US-hosted G20 summit in December that could yield more tangible progress.

Iran war oil concerns

The US-Israeli war on Iran will likely come up at the Paris talks, especially in reference to the spike in oil prices and the closure of the Strait of Hormuz, through which China gets 45% of its oil.

Bessent on Thursday night announced a 30-day waiver of sanctions to allow the sale of Russian oil stranded at sea in tankers, a move to raise supplies.

On Saturday, Trump urged other nations to help protect shipping in the Strait of Hormuz after Washington bombed military targets on Iran's Kharg Island oil loading hub and Iran threatened to retaliate.

China's state-run China Daily newspaper in an editorial called for continuity in the US-China dialogue as a "stabilizing anchor" amid the uncertainty of the "ongoing crisis in the Middle East" and the best way to address specific differences on issues including strategic materials, technology, market access and agriculture.

Crisis-hit People's Leasing and Financial Services Ltd (PLFS), a non-bank financial institution (NBFI), has formally sought a financial stimulus of Tk 7.50 billion from the government to complete its restructuring process and resume full-scale operations.

In a letter sent to the Ministry of Finance, the company outlined a comprehensive 'revival plan' aimed at safeguarding depositors' interests and restoring confidence in the troubled NBFI sector, according to sources.

The company said the proposed financial support would help bridge the gap between its recoverable assets and outstanding liabilities, enabling it to complete the court-supervised reconstruction process.

People's Leasing has been embroiled in a severe liquidity crisis and financial irregularities during the 2003-2014 period, which eventually prompted the High Court to order its liquidation.

However, in July 2021, the apex court stayed the liquidation order, and constituted a new board of directors to facilitate the company's restructuring under judicial supervision.

Since then, the new management claims to have made notable progress in stabilising the troubled lender.

According to the company, approximately Tk 2.0 billion has been recovered from defaulting borrowers since July 2021, and around Tk 840 million has already been repaid to nearly 1,900 depositors.

As part of cost-cutting measures, the company shifted its head office to a self-owned floor in Purana Paltan, saving nearly Tk 1.0 million per month in rent

It has also cleared a backlog by holding seven pending annual general meetings covering the years 2019 through 2025 to ensure regulatory compliance.

To complete the turnaround process, People's Leasing has proposed several restructuring measures alongside the government support. The measures include converting existing liabilities into interest-free principal payments over a specified period, exploring the conversion of depositor claims into company equity, and restarting SME and collateral-based lending to generate fresh revenue.

The company has also proposed confiscating shares held by former directors allegedly involved in past financial irregularities, and reissuing them to new investors.

In the letter, PLFS Managing Director Md Sagir Hossain Khan said the primary objective of the revival efforts is to ensure protection of public deposits under the supervision of the High Court and the Bangladesh Bank.Bangladesh market research

"To transform the institution into a profitable and functional entity in the public interest, a financial assistance of approximately Tk 7.50 billion is essential," the letter reads.

If the proposed stimulus is provided, the company plans to normalise its operations by 2026, including maintaining the mandatory cash reserve ratio (CRR) and statutory liquidity ratio (SLR) with the central bank, signalling a return to regular financial activities.

Bangladesh’s trade deficit, the gap between what it buys and sells abroad, widened by 17.44 percent in the July-January period of fiscal year 2025-26, due mainly to higher imports and weaker export earnings.

The deficit reached $13.79 billion during the seven months, up from $11.74 billion in the same period a year earlier.

According to Bangladesh Bank (BB) data, import bills rose 4.6 percent year-on-year to $39.88 billion. Export earnings, meanwhile, slipped 1.1 percent to $26.09 billion.

The widening gap has raised concerns at a time when the US-Israel war on Iran has rattled global oil markets and disrupted shipping routes. Since tensions escalated in the Middle East, the Bangladeshi currency, the taka, has begun to weaken. A softer currency could raise import costs and place further strain on the trade balance.

At the same time, exports have not shown clear growth, while war-driven inflation may reduce demand in Bangladesh’s major export markets.

Despite the wider trade gap, the country’s current account deficit narrowed.

This measure, which tracks the net flow of money in and out of the country through trade in goods and services as well as income flows, stood at $381 million in July-January of FY26. A year earlier, it was $1.31 billion.

The financial account also strengthened during the period.

Supported by higher net foreign direct investment, the surplus in the account, which records cross-border flows from investment, loans, aid and other financial transactions, climbed to $2 billion from $331 million a year earlier.

Taken together, the changes pushed Bangladesh’s overall balance of payments (BoP) into a surplus of $2.28 billion. In the same period last year, the country posted a deficit of $1.22 billion.

In an article, Sadiq Ahmed, vice chairman of the Policy Research Institute of Bangladesh (PRI), said the fall in exports has raised concerns about the country’s BoP outlook.

He added that strong remittance inflows have provided a key support. Remittance earnings rose sharply, bringing in $9 billion more in FY2025 than in FY2022.

However, Ahmed warned that foreign exchange reserves may fall in the second half of FY26 because of weaker exports and rising imports. Still, unless there is a major policy setback or a prolonged Iran war, reserves are expected to stabilise at around $30 billion.

He added that declining exports, rising external debt and debt servicing, and the Iran war raise questions about the sustainability of the current BoP position.

To address these risks, Ahmed recommended diversifying exports, saying double-digit export growth will not be possible without it.

“One key requirement is flexible exchange rate management that avoids appreciation of the real effective exchange rate,” he added.

His second priority was removing anti-export biases in trade policy and improving the country’s investment climate.

The US dollar rose across the board on Friday, set ​for a second straight weekly gain, as the war in the Middle East drove investors toward safe-haven assets and weighed on ‌energy-sensitive currencies such as the euro.

President Donald Trump said the US was going to be hitting Iran “very hard over the next week”, shortly after issuing a partial 30-day waiver for purchases of sanctioned Russian oil, hoping to ease prices fuelled by the US-Israeli war on Iran.

A sharp and prolonged rise in oil prices would severely hurt the economies of Japan and ​the euro zone, which are heavily reliant on crude imports, while the United States would be relatively insulated, having been a net crude ​exporter for almost a decade.

“Global investors are unwinding cross-border exposures, pushing money into safe havens, and punishing currencies issued by net energy importers,” said Karl Schamotta, chief market strategist at Corpay in Toronto.

The euro was 0.6 percent lower against the dollar at $1.14395. The dollar index , ​which measures the greenback’s strength against a basket of currencies, was up 0.7 percent at 100.35. The index is up 1.5 percent for the week.

Schamotta, however, warned that ​FX markets face two-way risks.

“As the war drags on, both Tehran and Washington have strong motivations for returning to the negotiating table and there are good reasons to suspect they could strike a face-saving bargain as soon as this weekend,” said Schamotta.

The Office of the United States Trade Representative (USTR) has opened investigations into the manufacturing sectors of 16 economies, including Bangladesh, over concerns of structural excess capacity and production under Section 301 of the Trade Act of 1974.

According to a Federal Register notice, Bangladesh faces scrutiny over government-provided cash incentives for export sectors, which the USTR says have contributed to a $6.15 billion bilateral goods trade surplus with the United States.

Bangladesh ships more than $8 billion worth of goods to the US each year, with ready-made garments making up the bulk of exports. The government offers cash incentives across 43 sectors, including textiles and leather products.

The notice also singled out Bangladesh's cement industry, claiming it is operating well below its production capacity. In 2024, national cement consumption fell to 38 million tonnes, less than 40% of production capacity, and is expected to decline further in 2025.

US Trade Representative Jamieson Greer said the investigation will examine whether the policies of these economies are "unreasonable or discriminatory" and whether they burden or restrict US commerce. "The United States will no longer sacrifice its industrial base to other countries exporting their problems with excess capacity," Greer added.

Other economies under review include China, the European Union, India, Vietnam, Indonesia, Malaysia, Thailand, Cambodia, South Korea, Japan, Mexico, Singapore, Switzerland, Norway, and Taiwan.

Cash incentive payments will no longer be kept pending, governor tells garment exporters

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), described Bangladesh's inclusion in the investigation as "uncomfortable" and "without logical basis".

"If such allegations are proven, they may impose additional tariffs," he said.

"Export incentives in Bangladesh are minimal," Mahmud said, adding that while questions might arise about agricultural subsidies, the US itself heavily subsidises its farmers, whereas Bangladesh primarily subsidises fertilisers.

Mostafa Abid Khan, former member of the Bangladesh Trade and Tariff Commission, told The Business Standard, "The incentives fall within the WTO policy. I do not think the level of support encourages overcapacity, though production levels may be questioned."

The USTR has requested consultations with Bangladesh and other countries under review. A public comment docket opens on 17 March, with a hearing scheduled for 5 May, allowing stakeholders to submit written comments and testify.

Goldman Sachs raised its Brent, WTI crude oil price forecasts for the fourth quarter of 2026 to $71/67 per barrel from $66/62 as it sees longer ​disruption to oil flows in the Strait of Hormuz due to ‌the US-Israeli war on Iran.

Brent prices have gained more than 36 percent since the war began on February 28, while WTI has risen about 39 percent. Both benchmarks briefly topped $119 on ​Monday, their highest levels since mid‑2022.

The fighting has effectively shut the ​Strait of Hormuz, leaving tankers stranded for more than a week and forcing producers to suspend output as storage nears capacity.

Goldman analysts in ​a note on Thursday said they now assume 21 days of low Strait ​of Hormuz (SoH) oil flows at 10 percent of normal levels followed by a 30-day gradual recovery, compared with their earlier expectation of a 10-day disruption.

The bank also said that daily ​oil prices are likely to exceed their 2008 peak if SoH flows ​remain depressed through March.

Goldman incorporated a larger policy response in its models, wherein 254 million barrels ‌of ⁠actual global special petroleum reserve (SPR) releases and 31mb of draws in Russian crude would reduce the hit to global commercial oil inventories by nearly 50 percent.

The International Energy Agency on Wednesday agreed to release a record 400 million barrels of oil from ​strategic stockpiles to combat ​a spike in ⁠global crude prices since the start of the war, with the US contributing the bulk of the supply.

In Goldman’s base case ​where Strait of Hormuz flows start recovering March 21 onwards, ​it assumes ⁠IEA member states won’t fully release the 400 million barrels available.

This is because the bank assumes a logistical limit of 3 million barrels per day on draws from ⁠the ​Organisation for Economic Co-operation and Development (OECD) SPR and ​a four-week phase-out of releases through early June when WTI prices are expected to moderate to ​the low $70s.

Struggling under heavy classified loan burdens, several non-bank financial institutions (NBFIs) have emerged as top performers in the stock market, posting sharp price increases in February after months of steep declines triggered by liquidation concerns.

According to data from the Dhaka Stock Exchange (DSE), the share prices of eight troubled NBFIs surged between 145% and 224% during the month, even though most of them remain under severe financial distress and face potential liquidation.

The rally came after their share prices had earlier plunged to historic lows amid continuous sell-offs driven by investor fears that shareholders could lose their entire investments if the institutions were wound up.

At one point, the share prices of some NBFIs dropped below Tk1 for the first time in the history of Bangladesh's capital market.

In response, the DSE introduced a new trading rule for such ultra-low-priced stocks. The bourse fixed the minimum price movement (tick size) for shares trading below Tk1 at Tk0.01, while the existing tick size for equities priced above Tk1 remains Tk0.10.

Despite the weak fundamentals, these beaten-down stocks staged an extraordinary rebound in February.

Data show that the share price of Bangladesh Industrial Finance Company soared by 224% during the month to Tk5.50 per share.

Premier Leasing and Finance jumped 216% to Tk1.70 from Tk0.57 at the beginning of February. People's Leasing and Financial Services and FAS Finance and Investment both climbed 174% to Tk1.70 each.

International Leasing and Financial Services rose 171% to Tk1.60, Prime Finance and Investment advanced 167% to Tk4, while Fareast Finance and Investment gained 154% to Tk1.70.

GSP Finance also recorded a sharp increase, rising 145% to Tk4.96 per share.

Market insiders say the rally reflects the long-standing tendency of many investors in Bangladesh's capital market to speculate on junk stocks despite their high risks.

Usually investors here like to bet on weak stocks hoping for quick gains. Sometimes the risk pays off, but often it ends with investors losing their hard-earned money," said market insiders.

They also noted that investor sentiment shifted after the change in the governor of Bangladesh Bank. Many traders appeared to assume that the planned liquidation of troubled NBFIs might not proceed as earlier indicated, prompting renewed speculative buying in these distressed stocks.

Abu Ahmed, chairman of the Investment Corporation of Bangladesh and a capital market analyst, recently told The Business Standard that many investors prefer short-term trading gains rather than long-term.

He said abnormal price surges are often driven by manipulation in junk stocks. Once such stocks start rising sharply, many investors rush to concentrate their investments in them in hopes of quick profits.

The capital market analyst advised investors to focus on fundamentally strong companies instead, although he acknowledged that the number of quality stocks in the market remains limited.

The surge in prices comes against the backdrop of ongoing regulatory actions aimed at reviving or resolving scam-hit NBFIs.

On 5 January, then governor of Bangladesh Bank, Ahsan H Mansur, said at a press briefing that nine NBFIs would be declared non-viable within a week. He also announced that independent auditors would be appointed to assess the actual financial conditions of the institutions.

Following the announcement, panic selling swept through the shares of weak financial institutions as investors feared a complete erosion of shareholder value.

However, many investors were unable to exit their positions because buyers virtually disappeared from the market, leaving large volumes of unexecuted sell orders throughout the trading day.

"The market was flooded with sell orders, but there were practically no buyers," a broker said at the time. "Investors were trying to cut losses, but confidence had completely evaporated."

Later, on 27 January, the central bank decided to liquidate six NBFIs plagued by irregularities, corruption and prolonged mismanagement, while allowing three others an additional three months to improve their financial conditions.

The institutions granted time include Bangladesh Industrial Finance Company, GSP Finance Company and Prime Finance and Investment.

Those set for liquidation include FAS Finance, Premier Leasing, Fareast Finance, Aviva Finance, People's Leasing and International Leasing.

Financial data show that most of these institutions were already in deep distress.

As of September 2025, many had accumulated massive losses and recorded deeply negative net asset values.

International Leasing alone posted accumulated losses exceeding Tk5,100 crore, with its net asset value per share falling to minus Tk219 and a non-performing loan (NPL) ratio approaching 98%.

People's Leasing reported losses of more than Tk4,800 crore with an NPL ratio nearing 99%, while FAS Finance showed an almost 100% NPL ratio along with heavy negative equity.

Similar financial distress is evident at Premier Leasing, Fareast Finance, First Finance, GSP Finance and BIFC, highlighting years of weak governance, reckless lending and capital erosion.

The central bank's decision follows a circular issued on 21 December that brought NBFIs under the Bank Resolution Ordinance 2025, empowering the regulator to take decisive action, including liquidation, against institutions that remain in prolonged distress and fail to protect depositors' funds.

Earlier, on 30 November, the board of Bangladesh Bank had given preliminary approval to liquidate nine NBFIs, including People's Leasing and International Leasing.

Stocks at the Dhaka bourse staged a notable rebound last week as improving investor sentiment and bargain hunting drove the key indices sharply higher amid easing concerns surrounding the ongoing Middle East war and its potential impact on the domestic economy.

The benchmark DSEX index of the Dhaka Stock Exchange surged 127 points, or 2.43%, to close the week at 5,368.

The blue-chip DS30 index also posted a strong gain, advancing 54 points, or 2.72%, to finish at 2,066.

Market breadth remained strongly positive during the week, with 324 issues advancing, 38 declining and 27 remaining unchanged.

Despite the broad-based price appreciation, market activity remained relatively subdued as investors adopted a cautious stance.

Average daily turnover fell by 24% week-on-week to Tk531 crore, reflecting a wait-and-see approach among market participants who preferred to monitor whether the upward momentum would be sustained before making fresh investment decisions.

However, the overall market capitalisation of the Dhaka bourse increased by approximately Tk9,000 crore during the week, indicating a steady return of confidence among investors after the previous week's sharp downturn.

EBL Securities, in its weekly market review, said the capital market experienced a sustained recovery throughout the week, bouncing back from the steepest single-day fall recorded in the past six years during the opening session. The brokerage house noted that the sharp correction at the start of the week created attractive entry points for investors, prompting bargain hunters to accumulate fundamentally strong stocks.

Although the week began under persistent bearish pressure, sentiment gradually improved as signals emerged of a possible de-escalation in the Middle East war.

At the same time, concerns regarding immediate disruptions to the country's fuel supply began to subside, which helped restore confidence among market participants.

A managing director of a leading brokerage firm said the government appeared capable of overcoming any potential fuel shortages stemming from the Middle East tensions.

Bangladesh secured a significant quantity of fuel supplies during the past week, which helped ease investor concerns and contributed to renewed optimism in the stock market.

He also noted that the central bank's recent decision to ease capital repatriation rules for foreign investors was a positive development for the capital market. The move is expected to improve the investment climate and may encourage greater participation from foreign portfolio investors in the coming months.

Additionally, speculation surrounding a possible change in the leadership of the stock market regulator also played a role in drawing investors back to the market, he added.

Sector-wise participation showed that investors were most active in the banking sector, which accounted for 21.3% of total market turnover. The pharmaceutical sector followed with 15.2%, while the textile sector captured 9.5% of the week's trading activity.

Among individual stocks, Islami Bank Bangladesh, LafargeHolcim Cement, City Bank, Square Pharmaceuticals and Beximco Pharmaceuticals were the major contributors to the upward movement of the benchmark index during the week.

In terms of turnover, Orion Infusion emerged as the most traded stock, followed by City Bank, Olympic Industries, BRAC Bank and Robi.

All major sectors posted positive returns during the week. The cement sector led the gains with a 7.6% increase, followed by the information technology sector with 5.3% and life insurance with 4.6%.

Interestingly, many Z-category stocks and loss-making non-bank financial institutions dominated the gainers' list. International Leasing, Peoples Leasing, FAS Finance and Fareast Finance each soared 50%, while Premier Leasing advanced 42.31%.

On the other hand, Saif Powertec was the worst-performing stock of the week, declining 6.94%. It was followed by Green Delta Insurance, Ring Shine Textile, Dula Mia Cotton and Hami Industries, which also posted notable losses.

Foreign investors increased their exposure to several blue-chip stocks in February, particularly in the banking and pharmaceutical sectors, while pulling back from companies including Olympic Industries, Grameenphone (GP) and DBH Finance.

Data from the Dhaka Stock Exchange (DSE) show that foreign portfolio investment rose last month, with overseas investors purchasing shares in a number of top-tier companies led by Square Pharmaceuticals and BRAC Bank.

Square attracted the largest foreign inflow, with overseas investors buying shares worth about Tk160 crore during February. The purchases increased foreign shareholding in the pharmaceutical giant to 15.50% from 14.70% in January.

BRAC Bank ranked second in terms of foreign investment inflow. Foreign investors bought shares worth around Tk110 crore, raising their ownership in the bank to 36.72% from 36.05% a month earlier.

Other companies that recorded smaller increases in foreign investment included United Commercial Bank, Uttara Bank and IDLC Finance.

Overall, foreign investors increased their holdings in 25 listed companies during the month, purchasing shares worth about Tk280 crore. Their stakes also rose in firms such as Marico Bangladesh, Envoy Textiles, Walton Hi-Tech Industries and Unique Hotel and Resorts.

Selling in several large firms

Foreign investors also sold shares in several major companies during the same period, with the biggest outflow recorded in Olympic Industries.

Overseas investors offloaded shares worth about Tk80 crore in Olympic Industries, reducing their stake in the company to 30.26% from 32.83% in January.

Telecom giant Grameenphone also experienced selling, with overseas investors selling shares worth Tk25 crore during the month. Foreign holdings in the company slipped slightly to 0.60% from 0.67%.

Other companies that saw foreign investment outflows included DBH Finance, BSRM Limited and Jamuna Oil Company.

In total, foreign investors reduced their holdings in 16 companies, selling shares worth Tk126.35 crore during February.

Foreign participation still limited

Despite the selective inflows and outflows, foreign participation in Bangladesh's stock market remains relatively limited. According to DSE data, total foreign investment in the market currently stands at around Tk13,000 crore.

Out of roughly 360 listed companies on the Dhaka bourse, only about 132 currently have any level of foreign shareholding, highlighting the narrow base of overseas participation.

Among listed firms, BRAC Bank has the highest level of foreign ownership at around 36%, followed by Olympic Industries with more than 30%.

Other companies with significant foreign shareholding include Beximco Pharmaceuticals, Navana Pharmaceuticals and Renata.

Structural barriers to investment

Market analysts said foreign investors tend to concentrate their investments in a small number of fundamentally strong companies because of the limited availability of high-quality listed firms.

They note that Bangladesh's stock market contains many weak or poorly governed companies, often referred to by investors as "junk stocks", which discourages broader foreign participation.

Analysts also cite several structural barriers that limit overseas investment, including tax complexities such as capital gains tax issues, policy inconsistency and concerns about corporate governance.

Brokerage officials added that a significant portion of the recorded foreign investment actually comes from non-resident Bangladeshis rather than large international funds.

Genuine foreign institutional investors are believed to be actively present in no more than 25 listed companies, primarily large-cap firms with strong financial performance and adequate market liquidity.

Among the global investors active in Bangladesh are institutions linked to Norway's sovereign wealth fund, along with a small number of investment firms based in the United Arab Emirates and Europe, according to market insiders.

A managing director of a leading brokerage firm said foreign investors remain cautious because the market offers limited diversification opportunities.

Bangladesh has a relatively small pool of large-cap stocks that meet the governance, risk and liquidity standards required by global institutional investors, he said.

Policy move to attract foreign funds

In a move aimed at attracting more foreign investment, Bangladesh Bank recently relaxed rules governing capital repatriation by overseas investors.

In a circular issued on 9 March, the central bank raised the threshold for prior approval required for capital repatriation to Tk100 crore from the previous Tk10 crore limit.

The measure is intended to align Bangladesh's regulatory framework with international standards and simplify procedures for foreign investors seeking to repatriate funds.

Bangladesh's foreign exchange reserves stood at US$34.29 billion, according to the latest data released by the Bangladesh Bank (BB) today (Wednesday). Bangladesh Economic Report

Under the International Monetary Fund's (IMF) BPM-6 accounting method, the reserves stood at $29.57 billion, it added, BSS reports.

LafargeHolcim Bangladesh PLC reported a strong financial performance in 2025, posting a 34% year-on-year rise in profit driven by higher sales, premium product demand and steady growth in its aggregates business despite a slowdown in the construction sector.

According to the company's price-sensitive disclosure and press release issued on 11 March, the multinational cement maker recorded a net profit of Tk510 crore for the year, up from Tk382 crore in 2024. Revenue also increased by 6% to Tk2,931 crore from Tk2,754 crore a year earlier, while operating profit grew 11% to Tk655 crore from Tk587 crore.

The company said the growth came amid steady business momentum and stronger customer engagement, even as the broader construction industry faced headwinds due to reduced public sector spending and tighter private credit conditions.

Reflecting the improved profitability, LafargeHolcim recommended a total 40% cash dividend for shareholders for the year 2025. The payout includes an 18% interim cash dividend already distributed earlier in the year and a proposed 22% final cash dividend. The total dividend amounts to roughly Tk465 crore, equivalent to 40% of the company's paid-up capital.

The dividend proposal will be placed for approval at the company's annual general meeting scheduled for 13 May, while the record date to determine eligible shareholders has been set for 9 April.

Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh, said the company managed to deliver strong results despite challenging market conditions.

"In 2025, the broader construction industry faced headwinds from subdued public sector investment and constrained private credit growth. Yet, LafargeHolcim Bangladesh delivered a strong performance," he said.

He added that the company achieved volume growth in both the cement and aggregates segments, reflecting strong customer confidence in its products and services.

According to Chowdhury, the company's focus on innovation has also contributed to business expansion. Specialised cement products such as "Water Protect" and "Fair Face" registered significant growth during the year, indicating strong consumer preference for premium solutions.

Alongside its commercial success, the company also continued its sustainability initiatives. Through its Geocycle platform, LafargeHolcim co-processed more than 45,000 tonnes of non-recyclable materials in 2025 and replaced around 11% of fossil fuel consumption with alternative fuels.

Chowdhury said the company also faced profitability pressures from rising energy costs and market volatility but addressed these challenges through cost-efficiency measures and strategic pricing adjustments.

The company began in 2026 with the launch of new specialised cement products, including "Holcim Coastal Guard" designed for coastal construction projects and "Powercrete" targeted at the ready-mix concrete segment.

These innovations are aimed at meeting specialised customer needs while strengthening the company's competitive position in Bangladesh's construction materials market.

In terms of market performance, LafargeHolcim shares recently closed at Tk50.60 on the Dhaka Stock Exchange (DSE), down 0.59% from the previous trading session. The company's market capitalisation currently stands at around Tk5,877 crore.

As of February, sponsors and directors held 63.39% of the company's shares, while institutional investors owned 22.09%. Foreign investors accounted for 0.80% of the shareholding, with the remaining 13.72% held by general public investors.

LafargeHolcim Bangladesh, listed on the DSE in 2003 as a greenfield investment, is one of the country's leading building materials producers. The company has invested nearly $500 million in Bangladesh, representing one of the largest foreign direct investments in the cement sector.

The investment enabled the establishment of a fully integrated cement plant along with three grinding stations, strengthening the company's production capacity and supply chain.

The company operates as a joint venture between Switzerland-based Holcim Group and Spain-based Cementos Molins. Leveraging advanced technology and skilled professionals, the company produces a wide range of cement and building material solutions for infrastructure and real estate projects.

Looking ahead, the company said it is focusing on several strategic priorities to sustain profitability in the coming quarters. These include improving operational efficiency, investing in a lower-cost energy mix through alternative fuels, diversifying the product portfolio and strengthening pricing strategies.

At the same time, LafargeHolcim is continuing investments in sustainability initiatives and digital transformation to enhance productivity and reinforce its long-term market leadership in Bangladesh's building materials industry.

President Donald Trump on Tuesday said Indian energy giant Reliance Industries was backing a deal to build the first new major oil refinery in the United States in half a century.

Trump made the announcement via his Truth Social platform, saying the company America First Refining would construct the new facility at the Port of Brownsville, Texas.

“This is a historic $300 billion dollar deal -- the biggest in US history,” Trump wrote, framing the project as a cornerstone of his energy agenda, but offering no details on the plan.

“Thank you to our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment,” he said, without specifying the company’s commitment.

Reliance is India’s biggest privately held conglomerate and its Jamnagar refinery is the world’s largest.

The America First Refining website says the company is a project of Element Fuels, which first announced plans in 2024 to build a Brownsville refinery at cost of between $3-$4 billion.

The facility would be the first refinery built on the Gulf of Mexico since the 1970s, and the only one designed to process 100 percent American shale oil, the company said.

Pubali Bank PLC has approved a plan to raise $100 million through a five-year Green Bond as part of the bank's sustainable finance initiatives.

According to a price sensitive information disclosure issued on Wednesday (11 March), the decision was taken at the bank's board meeting held on Wednesday at its Gulshan corporate branch.

The bank said in its statement, the fund will be raised through the issuance of a Green Bond with a tenure of five years to support projects aligned with sustainable and environmentally responsible financing.

The bank said the initiative will follow Green Bond Principles of the International Capital Market Association (ICMA), along with guidelines of the International Finance Corporation (IFC) and Bangladesh's Sustainable Finance Policy framework.

The proposed bond issuance will be subject to approvals from relevant regulatory authorities and compliance with applicable regulations.