Stocks slumped in Asian trading on Wednesday as a bond market-induced selloff on global markets spilled over into the region, after renewed attacks by the US on Iran pushed oil prices higher.

MSCI's broadest index of Asia-Pacific shares outside Japan tumbled 1.5 per cent as South Korea's KOSPI dropped more than 3 per cent, while the Nikkei 225 was down 2.6 per cent. S&P 500 e-mini futures EScv1 were down 0.1 per cent.

Brent crude futures extended gains into a second day as trading resumed in Asia, rising 1.3 per cent to $95.91 a barrel after the US launched a barrage of airstrikes on Iran on Tuesday, which earlier pushed oil prices to a five-week high.

"The threat of further disruptions to the Strait of Hormuz has brought about renewed anxiety over inflation, driving a selloff in stocks across most major markets and a rout in global bond markets," Westpac analysts wrote.

The yield on the US 10-year Treasury bond hit an intraday high of 4.8122 per cent, its highest level in almost three years, while the yield on the 5-year Japanese government bond rose to 2.295 per cent, its highest level on record.

"September kicked off on a shaky note as developed market government bonds continued to sell off," DBS analysts wrote.

"Brace for a volatile month ahead as high yields cause angst across the asset classes," they added. "If the bond rout does not get stemmed, policymakers would probably have to resort to more aggressive measures to cap yields."

The kiwi dollar was down 0.6 per cent at $0.5855 after the Reserve Bank of New Zealand hiked interest rates by 25 basis points to 2.75 per cent, as expected by markets, though dovish language in the central bank's statement weighed on the currency.

The US dollar index =USD, which measures the greenback's strength against a basket of six currencies, was up 0.1 per cent at 99.79, its highest since Aug 17.

Overnight on Wall Street, the S&P 500 slipped 0.7 per cent and the Nasdaq Composite fell 1 per cent as a surge in government bond yields weighed on equities.

The declines came as data from the Institute for Supply Management released on Tuesday showed US manufacturing activity moderated in August amid a slowdown in new orders, but remained in expansionary territory.

Traders believe that the Federal Reserve is likely to lift interest rates at its next meeting in two weeks, though a hike is not certain.

Fed funds futures are pricing an implied 67 per cent probability of a 25-basis-point increase to benchmark borrowing costs at the US central bank's two-day meeting ending on September 16, compared with a 39.6 per cent chance a week ago, according to the CME Group's FedWatch tool.

Gold was down 0.8 per cent at $4,295.70 an ounce, while bitcoin slipped 0.6 per cent to $76,979.55 and ether was 0.9 per cent lower at $2,397.78.

Revenue from Taiwan’s semiconductor chip sector is expected to soar 40 percent this year, a top industry official said Wednesday, driven by skyrocketing demand for artificial intelligence technology.

The island is a global powerhouse in the manufacturing of chips that are used in everything from smartphones to electric vehicles, with nearly all of the most advanced ones made there.

Taiwan’s dominance of the critical sector has been a source of friction with the United States, with President Donald Trump accusing it of stealing the American chip industry and pressuring Taiwanese companies to build more on US soil.

“We are in a new era of the semiconductor industry from a technology point of view,” Wu Chih-i, president of the Taiwan Semiconductor Industry Association, said at the opening of the SEMICON expo in Taipei, noting AI has pushed the development of new technology. “This year Taiwan’s semiconductor industry performs even better. Our total revenue is projected to be close to US$300 billion. That’s more than 40 percent growth over last year,” Wu said.

However, he added that energy supply, talent and cyber security were “becoming more critical” for the industry and “no single country” could dominate the chip supply chain. “Continuous progress will require even closer semiconductor collaboration between many countries,” Wu said. Governments and tech giants are pouring billions into building data centres that can train and run AI tools such as chatbots, image generators and agents that can execute tasks.

This has turbocharged earnings of companies such as Taiwanese chip giant TSMC and driven global stock markets to all-time highs this year. But there are concerns over when that investment will see a return, and warnings that company valuations have gone too far.

This would be the decade of AI, said Ajit Manocha, the head of SEMI, a global industry association for chip design and manufacturing supply chain.

But Manocha noted that the world was in the “early innings” and there would be “a lot more challenges” with the technology.

“It’s not going to be a straight line,” Manocha told SEMICON.

“We’re going to have to learn how to deal with and navigate through the new opportunities and new headwinds.”

Well above the European Central Bank’s two-percent target, the figure from the EU’s statistical office was up sharply from 2.9 percent in July and in line with forecasts by analysts for Bloomberg.

“Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in August,” Eurostat said, noting that energy prices were up 14.3 percent in August after rising 10.3 percent in July.

The US war against Iran and the near-total closure of the Strait of Hormuz, a key energy trade route, have sent global energy costs soaring.

“Inflation should remain well above target into next year, as higher gas and food prices put additional upward pressure on the index,” said Leo Barincou of Oxford Economics. The ECB is expected to again raise interest rates at its meeting on September 10 to tame the surge in prices, after a first hike in June.

The bank’s chief, Christine Lagarde, warned in July that the energy shock from the conflict “could intensify further”.

“The ECB will hike again next week,” said Kamil Kovar at Moody’s Analytics, adding that the jury was out on whether the decision would be followed by another increase in December.

“The broad-based increase in energy prices -- not just transport fuel, but also gas and now even electricity -- is playing in hawks’ favour,” he said.

Core inflation, which strips out volatile energy and food prices, has remained largely stable in recent months.

In August it slowed back to 2.4 percent after accelerating slightly to 2.5 in July.

Food and drinks inflation in August remained at 1.2 percent, the same level recorded last month. Eurozone inflation was last above 3.3 percent in September 2023, when it stood at 4.3 percent.

At the time consumer price rises were slowing after reaching a peak of 10.6 percent in October 2022, driven by surging energy prices caused by Russia’s invasion of Ukraine.

President Donald Trump’s plan to secure direct US access to a large share of Venezuela’s vast oil reserves could end up derailing the country’s long-awaited petroleum revival by stifling competition, distorting markets and deterring the foreign investment needed to rebuild the South American nation’s battered energy industry.

The plan unveiled on Monday would see Washington acquire a 35 percent equity stake in private oil firm North American Blue Energy Partners (NABEP), which is controlled by Venezuelan businessman Alejandro Betancourt.

The company would receive a 100-year lease on 17 Venezuelan oilfields holding an estimated 65 billion barrels of reserves.

In exchange, the US would receive a guaranteed 20 percent share of production at cost and retain a right of first refusal to purchase all remaining output. The arrangement would make NABEP the world’s second-largest private oil company by reserves, behind only Saudi Arabia’s national oil giant.

NABEP, which currently produces around 170,000 barrels per day, says it aims to raise output to more than 1 million bpd in the near term.

The Trump administration argues that the arrangement is a key part of its “three-part plan of stabilization, reconstruction and democratic transition” for Venezuela after its removal of former President Nicolas Maduro in January.

The White House adds that the deal will help the US create “new robust, strategic and defensible supply chains” in the Western Hemisphere, allowing Washington to refill its depleted strategic petroleum reserves, lower fuel costs and promote the “revitalization” of US manufacturing.

The proposal has already drawn fierce criticism from Venezuela’s opposition and Democrats in the US, with some calling it akin to modern-day colonialism and others arguing that it bears the hallmarks of election-year policymaking as Trump faces growing pressure over cost-of-living concerns ahead of the crucial midterm elections in November.

What’s clear is that his proposal carries significant political, legal and commercial risks, not least the threat of hampering the recovery it’s seeking to encourage.

A TWO-TIERED SYSTEM

The US has never exercised direct control over another country’s oil resources.

Even after the US invasion of Iraq in 2003, Baghdad remained in charge of resource decisions.

At present, such an arrangement appears difficult to implement.

The US government lacks the legal mechanisms necessary to routinely purchase and dispose of crude oil below market prices.

Yet a determined administration could seek to rewrite the rules, establish new purchasing structures or create government-backed trading mechanisms to facilitate the arrangement.

The bigger problem is that such a framework could inhibit development of the wider Venezuelan oil sector.

By granting NABEP and the US government privileged commercial terms, Washington risks creating a two-tiered market in Venezuela.

Companies competing with NABEP, including Chevron, currently the largest US producer operating in the country, would be placed at a structural disadvantage because they would have to buy and sell crude at prevailing market prices while a favoured competitor would enjoy privileged market access.

Investors may question whether future projects will compete on economic merit or political connections, and whether the rules of the game may change along with the leadership in Washington and Caracas.

That is precisely the kind of market distortion that oil companies considering multi-billion-dollar investments tend to avoid.

Chevron and several other international energy companies are this week expected to sign agreements to develop new projects in Venezuela.

Those investments are based on the country’s current hydrocarbon framework, which was revised to attract foreign capital after Maduro’s ouster.

But this new source of uncertainty could significantly dampen investment appetite at precisely the moment Venezuela is attempting to reestablish itself as a major oil producer.

HERE TODAY, GONE TOMORROW

Regenerating Venezuela’s oil industry will be no easy feat.

The country’s oil production collapsed following years of underinvestment, operational mismanagement and corruption after the sector’s nationalisation in 2007, a downturn compounded by US sanctions.

Output has fallen from roughly 3.5 million bpd in the 1990s to about 1 million bpd today.

Production is initially likely to recover to around 1.5 million bpd within the next two years, according to ROI estimates, as investment gathers pace and existing fields are revived.

That would constitute just over 1 percent of global supplies today.

Moreover, Venezuelan output is forecast to reach 2.3 million bpd by 2035 and exceed 3 million bpd by 2050, according to consultancy Rystad Energy, with most of the growth coming from the resource-rich Orinoco Belt.

Yet expanding production is only part of the challenge.

Decades of neglect have left the country short of the processing facilities, pipelines, storage terminals, export capacity and power infrastructure required to support a large-scale output recovery.

Many facilities today lie in complete disrepair, requiring reconstruction from scratch or costly refurbishments.

Rebuilding those assets will require tens of billions of dollars and, crucially, the participation of multiple international companies willing to commit capital over several decades.

Introducing a new layer of political uncertainty into Venezuela — a country that has nationalized foreign oil assets twice in recent decades — could make securing the necessary financing more difficult or expensive.

A plan designed to accelerate the recovery of one of the world’s largest oil endowments could thus slow it down instead.

The Bangladesh Submarine Cables PLC (BSCPLC) has ruled out any current or future shortage of international bandwidth, saying it is fully prepared to meet the country's growing demand.

In a press release issued by the Posts and Telecommunications Division on Wednesday (2 September), the state-owned company said recent reports warning of a possible bandwidth crisis and higher internet prices were misleading and did not reflect the actual situation.

The statement came in response to reports published under headlines including "Bangladesh on the brink of bandwidth crisis, major disruption feared in internet sector" and "Internet prices may rise, speed may fall amid bandwidth crisis".

"Currently there is no shortage of international bandwidth supply, nor is there any possibility of a shortage in the future," BSCPLC said.

The company said it is implementing a third trusted submarine cable system, SEA-ME-WE-6, alongside its existing SEA-ME-WE-4 and SEA-ME-WE-5 systems to meet future demand.

The two existing submarine cables have a combined capacity of around 7,200 Gbps. Of this, around 4,000 Gbps is currently being supplied to the country, while BSCPLC has the capacity to provide another 3,200 Gbps, according to the statement.

Once SEA-ME-WE-6 becomes operational in 2027, the state-owned submarine cable systems will have a combined bandwidth supply capacity of around 34,000 Gbps, the company said.

According to projections by the Bangladesh Telecommunication Regulatory Commission (BTRC), the country's total bandwidth demand is expected to reach 30,000 Gbps by 2030.

BSCPLC said the projected capacity would therefore be sufficient to meet the country's growing bandwidth demand.

Besides the submarine cable systems, bandwidth is also being imported according to demand through the country's six International Terrestrial Cable (ITC) operators.

The company also said it has already started the process of joining a fourth submarine cable system, further strengthening the country's international bandwidth capacity.

BSCPLC said it has been providing bandwidth to customers through attractive packages while continuously reducing prices, making international bandwidth more affordable.

It said bandwidth would be provided at more affordable prices as usage increases in the future.

Rejecting reports of an impending shortage or price hike, BSCPLC said such reports were "not correct" and had been disseminated deliberately.

The company urged the public and other stakeholders not to be alarmed by what it described as misleading reports.

BSCPLC also said it remained committed to protecting the country's digital sovereignty and ensuring the security of its national strategic information infrastructure.

Adani Power has reduced electricity dispatch from its 1,600MW Godda power plant to Bangladesh during off-peak daytime hours due to disruptions in coal transportation by rail, the company said today (2 September).

In a statement issued through 5W Communications, Adani Power's public relations firm in Bangladesh, the company said severe railway congestion and multiple loading restrictions across the transportation network had affected the movement of coal-carrying railway rakes to the Godda plant.

"As a result, the plant is receiving lower-than-normal coal supplies and is temporarily forced to optimise production," Adani Power said.

Power Grid Bangladesh data showed the impact of the reduced dispatch particularly during the daytime today.

Adani supplied 828MW at 8am against a forecast of 1,436MW. Supply remained around 920MW for much of the day before rising to 1,061MW at 5pm.

At 10am, the plant supplied 923MW, followed by 924MW at 11am, 913MW at noon, 921MW at 1pm, 920MW at 2pm and 943MW at 3pm. Supply stood at 924MW at 4pm, according to the latest available data.

The company said it had deliberately reduced daytime dispatch to preserve sufficient generation capacity for the evening peak.

"Consequently, the plant has moderated power dispatch during off-peak daytime hours to ensure adequate availability during the evening peak demand period," it said.

Yesterday (1 September),the company supplied 827MW at 5pm and 861MW at 6pm against a demand of 1,436MW. Supply rose to 1,314MW at 7pm, 1,315MW at 7:30pm and 1,312MW at 8pm.

Adani Power said it had kept the Bangladesh Power Development Board informed of the situation and was working with Indian Railways to restore normal availability of coal-carrying rakes as soon as possible.

"We expect the situation to normalise shortly," the company said, adding that it was taking all possible measures to maximise coal deliveries and minimise the impact on power supply.

The reduced dispatch comes as Bangladesh is already facing a significant electricity shortfall amid a gas supply crunch affecting power plants.

The lower output from the Adani plant is likely to add further pressure to the country's ongoing load-shedding situation.

Despite various facilities extended to borrowers, default loans in the banking sector continue to rise at an alarming rate.The amount of default loans in the country’s banking sector again crossed Tk 6.0 trillion at the end of June.Earlier, default loans had crossed the Tk 6.0 trillion mark for the first time in September last year.According to Bangladesh Bank data, the amount of classified or default loans in the banking sector stood at Tk 6.07 trillion at the end of June 2026.This accounted for 32.78 per cent of the banks’ total outstanding loans.

At the end of March 2026, default loans stood at Tk 5.89 trillion, accounting for 32.26 per cent of total outstanding loans.

This means default loans increased by Tk 178.51 billion in the three months from March to June.

Meanwhile, default loans in the banking sector increased by Tk 493.38 billion during the first six months of the current year.

At the beginning of the year, default loans stood at Tk 5.57 trillion.

Over the six-month period, the amount rose to Tk 6.07 trillion.

Although various facilities, including loan rescheduling and restructuring, have been provided to reduce default loans in the banking sector, they have failed to produce the desired impact.

Instead, weaknesses in loan recovery and fresh loan defaults have pushed up the overall volume of classified loans.

With nearly one-third of total outstanding loans turning bad by the end of June, fresh concerns have emerged over the quality of bank assets.

Continued growth in default loans could put further pressure on banks’ earnings, capital and overall financial stability.

Bangladesh Bank (BB) has launched a Foreign Exchange Market (FXM) Module to automate foreign exchange intervention, interbank transactions and reporting-related activities, aiming to enhance efficiency, transparency and reliability in the country’s foreign exchange market.

BB Governor Md Mostaqur Rahman formally inaugurated the FXM system at the central bank’s Foreign Currency Management (FCM) department on Tuesday, said a press release.

Deputy Governor Dr Md Kabir Ahmed and Director of Foreign Reserve and Treasury Management Department-1 A.K.M. Ramizul Islam, among other officials concerned, attended the inaugural programme.

The FXM module has been developed by Bangladesh Bank’s own officials to automate activities that were previously carried out manually.

Bangladesh Bank periodically conducts foreign exchange interventions to maintain stability in the domestic foreign exchange market.

At the same time, banks undertake interbank foreign exchange transactions, including spot, forward and swap deals.

Banks also collect information on customer-level foreign exchange transactions, including imports, exports and remittances, which is used to prepare reference exchange rates published twice daily on Bangladesh Bank’s website.

According to the central bank, automation through the FXM module will enable foreign exchange transactions to be conducted on a real-time basis and facilitate the preparation of accurate reference rates.

It will also improve the accuracy, transparency and reliability of related information.

The system is expected to enhance commercial banks’ capacity to take timely decisions and improve the efficiency of their operations, thereby facilitating liquidity and risk management.

The real-time availability of information will also strengthen Bangladesh Bank’s market surveillance and help the central bank take timely and realistic decisions based on updated market data.

Bangladesh Bank has already issued a circular to the concerned banks along with Operational Guidelines detailing the use and procedures of the FXM system.

The central bank expects the automation to enhance efficiency, transparency and accountability in the country’s foreign exchange market operations while strengthening market management and supporting more effective policy decisions.

Bangladesh Bank (BB) on Wednesday issued a consolidated circular updating regulations governing foreign exchange transactions related to loans, overdrafts, guarantees and external borrowings.

The Foreign Exchange Policy Department-1 (FEPD-1) issued the circular, which consolidates the instructions contained in the previous FE Circular No. 34 issued on September 2, 2025, along with subsequent circulars issued thereafter.

With the issuance of the new circular, all previous instructions on the subject have been repealed, except for the reporting instructions contained in the Guidelines for Foreign Exchange Transactions (GFET), Volume-2. The new instructions will remain valid for one year from the date of issuance.

The circular covers lending activities, loans and overdrafts, trading and commercial loans, foreign-owned or controlled companies, guarantees, repayment guarantees, foreign borrowing and related foreign exchange transactions.

Under the updated rules, banks and finance companies may provide admissible Taka financing against overseas bank guarantees (BGs) or standby letters of credit (SBLCs) to resident companies, regardless of their ownership or controlling status, subject to applicable credit norms, prudential requirements and specified conditions.

Such overseas BGs or SBLCs must be unconditional, irrevocable and payable on first demand, and must be issued by a non-resident bank or institution having an acceptable international credit rating. Banks and finance companies must also ensure the legal enforceability of the guarantees and assess borrowers' financial soundness and repayment capacity.

The circular also provides general authorization for banks to extend Taka working capital loans to foreign-owned or foreign-controlled industrial and trading firms operating in Bangladesh, subject to prevailing credit norms and normal banker-customer relationships. Resident companies may also provide interest-free Taka working capital loans to such foreign-owned or controlled companies under the new consolidated framework.

Foreign-owned or controlled companies engaged in manufacturing or services for three years or longer may obtain Taka term loans from the domestic market for capacity expansion or balancing, modernisation, rehabilitation and expansion (BMRE), provided applicable credit norms and prudential parameters are followed. Their total debt, however, must not exceed a 60:40 debt-equity ratio.

The central bank has also retained provisions allowing authorized dealer (AD) banks to issue certain guarantees on behalf of Bangladeshi exporters in favour of overseas buyers without prior approval, subject to banking norms and conditions.

For foreign borrowing, proposals by private-sector industrial enterprises require prior authorization from the Invest Bangladesh Authority. Short-term credit facilities of up to one year from foreign suppliers or buyers remain subject to Bangladesh Bank's guidelines governing current commercial transactions.

The circular says repayment of approved foreign loans may be remitted by AD banks without prior reference to Bangladesh Bank, subject to specified conditions, including submission of relevant loan agreements, repayment schedules and, in the case of supplier's credit, bills of entry confirming the arrival of imported capital goods.

Borrowing abroad by public-sector entities will require government approval, while commercial or non-concessional borrowing will additionally require specific approval from the Standing Committee on Non-Concessional Loan (SCNCL).

The circular also requires AD banks to submit consolidated quarterly statements of foreign loans approved by the Invest Bangladesh Authority or Bangladesh Bank, including information on the utilization of each loan, within 15 days of the end of each quarter.

For enterprises operating in specialized zones, the circular categorizes them as Type A (100 percent foreign-owned), Type B (joint ventures between foreign investors and Bangladeshi entrepreneurs) and Type C (100 percent Bangladeshi-owned). It provides separate provisions for foreign currency and Taka financing for these enterprises.

The circular also allows Type A enterprises in specialized zones to obtain short-term foreign currency loans from overseas banks and financial institutions for specified purposes, including imports of capital machinery and raw materials, payment of interest and service charges, loan repayment and meeting local expenses.

The new consolidated circular was issued under the authority vested in Bangladesh Bank by Section 20(3) of the Foreign Exchange Regulation Act, 1947.

The government has increased the maximum retail price of bottled soybean oil by Tk 5 to Tk 204 a litre, citing higher international prices and import costs.

The new price will take effect tomorrow, following a decision taken at a meeting between the Ministry of Commerce and edible oil traders today.“Bottled soybean oil has been increased from Tk 199 to Tk 204 a litre,” Commerce Secretary Md Ataur Rahman Khan told reporters after the meeting.

However, the prices of loose soybean oil and palm oil have been kept unchanged, he said.

The decision came after edible oil refiners and importers sought a price adjustment.

The Bangladesh Vegetable Oil Refiners’ and Vanaspati Manufacturers’ Association had earlier said the cost of imported edible oil had risen substantially following an increase in international prices.

The association claimed that the cost of imported edible oil had reached Tk 217 a litre, while refiners had been selling bottled soybean oil at Tk 199, resulting in a loss of around Tk 18 per litre over the past three months.

The Bangladesh Trade and Tariff Commission had recommended a Tk 10-per-litre increase, while traders reportedly sought a higher increase at today’s meeting.

The government, however, opted for a smaller adjustment after considering consumer interests, according to the commerce secretary.

“The importers had applied for a price adjustment due to the rise in edible oil prices in the international market and higher transportation costs. After reviewing the market situation, the government decided to make a limited adjustment,” Ataur said.

He said there was currently an adequate supply of edible oil in the domestic market and no shortage.

“The government is regularly monitoring the situation to keep the market stable,” he added.

Asked whether edible oil prices would be raised again before Ramadan, the commerce secretary said it would depend on international prices, import costs and the overall supply situation at that time.

Meanwhile, in a press release, the refiners said they accepted the Tk 5 increase, as they had received assurances that the price would be raised further soon.

The Bangladesh Bank is set to introduce a Tk500 crore financing programme, named UDYOG, for young entrepreneurs at the upazila level across the country.

The central bank's board recently approved the programme, which is likely to be announced today.

Under the proposed structure, funds may be collected from the corporate social responsibility (CSR) funds of scheduled banks to establish a separate, regulated grant account or special fund. The funds in this account will be used as performance-linked conditional grants for selected entrepreneurs.

Earlier, on 11 August, Bangladesh Bank Governor Md Mostaqur Rahman held a meeting with the chairman of the Association of Bankers, Bangladesh (ABB), managing directors and chief executive officers of 12 scheduled banks, and relevant officials of the central bank.

The meeting discussed in detail the selection of entrepreneurs under the programme and the establishment of an integrated financing mechanism combining bank loans with grants from the CSR funds of scheduled banks.

Particular importance was given to using unutilised institutional CSR funds of scheduled banks to finance the grant component of the programme.

As the programme is directly aligned with the objectives of entrepreneurship development, employment generation, and financial inclusion, using a portion of the unutilised CSR funds for the initiative would ensure more effective, targeted and outcome-oriented use of CSR resources, according to the proposed plan.

Under the programme, applications will be invited from young entrepreneurs across different upazilas, followed by screening, shortlisting, assessment of business potential and selection through credit appraisal.

A lead bank in each upazila will coordinate the programme. Selected entrepreneurs will be provided with bank loans based on their actual business needs and credit appraisal, under the applicable sectors of existing refinancing facilities available through Bangladesh Bank's SME and Special Programmes Department, according to Bangladesh Bank sources.

An important feature of the programme is an integrated financing mechanism combining loans and conditional grants.

A portion of the grant will be provided conditionally at the initial stage to meet entrepreneurs' immediate business needs, while the remaining portion will be kept in a separate grant account.

The remaining grant will be activated at a later stage based on the entrepreneur's loan repayment performance and fulfilment of predetermined assessment criteria.

According to the proposed plan, this mechanism will not only provide initial support to entrepreneurs but also encourage them to build sustainable businesses and improve their loan repayment capacity.

How the programme will be implemented

For effective implementation of the programme at remote and upazila levels, money will be spent for identifying and selecting promising young entrepreneurs, publicity and promotional activities, receiving and screening applications, organising meetings, workshops and entrepreneur gatherings at upazila and regional levels, evaluating business ideas, capacity building, meetings with relevant stakeholders and other necessary activities.

For the smooth and effective implementation of the programme, it has been decided that expenses related to entrepreneur searches and identification, meetings, programmes, publicity and promotional activities, and other approved implementation costs will be met from Bangladesh Bank's CSR Fund, according to the proposed plan.

The nature and limits of expenditure, approval procedures, accounting and audit-related matters will be determined in accordance with Bangladesh Bank's existing financial rules and applicable guidelines.

The proposed plan document further noted that the role of young people was extremely important in Bangladesh's economic development, employment generation and promotion of innovative initiatives.

Many promising young men and women in remote areas and at the upazila level have viable business ideas but, due to a lack of initial capital, business advisory support, institutional networks and financing, are unable to turn those ideas into sustainable enterprises.

Against this backdrop, the Bangladesh Bank has taken the initiative to implement an upazila-based young entrepreneur identification and financing programme under its supervision, the document said.

The government is set to sign a $1.0004 billion loan agreement with the Islamic Development Bank (IsDB) on Thursday (3 September) to finance the construction of the second unit of Eastern Refinery Limited (ERL) in Chattogram, a major project aimed at strengthening Bangladesh's energy security.

The agreement will be signed at the Cabinet Division at the Secretariat in the presence of Prime Minister Tarique Rahman, according to officials at the Economic Relations Division (ERD).

IsDB Group Chairman Muhammad Sulaiman Al Jasser is currently visiting Bangladesh to attend the signing ceremony.

Govt okays $1b stringent IsDB loan for Eastern Refinery expansion
The loan was approved at a meeting of the Standing Committee on Non-Concessional Loan (SCNCL), chaired by Finance Minister Amir Khosru Mahmud Chowdhury, on 7 July.

Although the financing comes with highly non-concessional terms, ERD officials consider the refinery expansion project economically viable and strategically important for the country's energy security.

The IsDB financing will be provided under two separate facilities. The first, Forward Lease 1, will provide $520.59 million, while Forward Lease 2 will provide $483.10 million. An additional $0.6 million technical assistance grant will also be provided under the first facility.

Loan carries 5.45% markup

The loan carries a relatively high financing cost, with the total markup rate calculated at 5.44627%.

According to ERD documents, the calculation was based on the six-month Term Secured Overnight Financing Rate (SOFR) of 3.84627% on 5 July 2026, with a 1.60 percentage-point spread and risk premium added to the benchmark rate.

The total repayment period will be 20 years, including a five-year grace period. The remaining amount will be repaid in semi-annual instalments over 15 years.

The grant elements of Forward Lease 1 and Forward Lease 2 stand at negative 3.12% and negative 3.24%, respectively. As a result, the ERD has classified the financing as "highly non-concessional".

Refining capacity to triple

The Eastern Refinery modernisation and expansion project is expected to significantly increase the country's domestic oil-refining capacity.

ERL currently has an annual refining capacity of 1.5 million tonnes. Once the modernisation and second-unit expansion are completed, the refinery's capacity is expected to increase by another 3 million tonnes to 4.5 million tonnes annually.

This would triple ERL's existing refining capacity and help reduce Bangladesh's dependence on imported refined petroleum products.

The overall cost of the project has been estimated at Tk31,000.57 crore. Of this, Tk18,566.74 crore will come from government financing, while Bangladesh Petroleum Corporation (BPC), the project's implementing agency, will provide Tk12,433.83 crore from its own funds.

The project implementation period has been set from January 2025 to June 2030.

Project cost revised downward

The Eastern Refinery Modernisation and Expansion Project was initially approved conditionally by the Executive Committee of the National Economic Council (Ecnec) on 23 December last year at an estimated cost of Tk35,465 crore.

Following further scrutiny and assessment after the Ecnec approval, the project cost was reduced by Tk4,465 crore to Tk31,000.57 crore.

Nearly 18,000 customers of Sammilito Islami Bank have applied to withdraw Tk1,300 crore from their deposits on the first day of accepting withdrawal applications yesterday (1 September), the bank's managing director (MD) said today (2 September).

The bank began accepting applications from depositors at its branches and sub-branches on 1 September, with payments scheduled to begin on 7 September after verification.

The bank has nearly 84 lakh customers, meaning only 0.21% have so far applied to withdraw their deposits, said MD Md Abedur Rahman Sikder.

"The amount sought by 18,000 customers is very small compared with our capital. This indicates that people still have confidence in the bank," he said.

Of the applicants, customers seeking to close their accounts want to withdraw Tk254 crore, an amount the MD said was lower than the bank's normal daily transactions.

How many customers applied yesterday to withdraw their deposits will be known tomorrow.

The Sammilito Bank was formed by merging five troubled Islamic banks: EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank.

Under Bangladesh Bank's instructions, individual depositors will be allowed to withdraw the principal amount from current and savings accounts as well as the principal of term deposits. However, accrued or payable profit on the deposits will not be available under the facility.

Customers withdrawing their principal in full will be considered to have made a final settlement for the respective deposit. Any outstanding loan or liability with the predecessor bank will be adjusted against the deposit before payment.

Customers who keep their deposits with the bank can continue their accounts and earn profit at the applicable contractual rates.

However, if a term deposit is encashed before maturity, the customer will receive the principal but will not receive profit on the amount. In case of partial withdrawal, profit will remain payable on the balance according to applicable rules.

The ousted Awami League-led government is responsible for the current energy crisis and high inflation, said Rashed Al Mahmud Titumir, adviser to the prime minister on finance and planning.
“The main causes of the energy crisis are dependence on imports, failure to conduct any gas exploration, and continuing the culture of nepotism and patronage to create an oligarchic system through plunder,” he said at a seminar yesterday at the Economic Reporters’ Forum (ERF) auditorium.

The plundering of resources during the AL regime increased the money supply without a corresponding rise in production, thereby accelerating inflation, he also said at the programme jointly organised by the ERF and the Centre for Policy Dialogue (CPD).

Stating that the recent rise in LNG prices was driven by the prolonged conflict in the Middle East, the PM’s adviser said Bangladesh might not have to bear such high costs if it had sufficient domestic gas supplies and was not dependent on imports.

He called on economists and researchers not to just criticise the policies of the AL government but to also calculate and publish the cost of “inaction”, “wrongdoing”, and siphoning of funds abroad through energy-sector corruption.

Such an assessment would show the financial burden accumulated from wrong policies or inaction, and the resulting impact on investment, employment and future generations, he said.

Titumir said the BNP government is taking actions for the energy sector that should have been done earlier.

For instance, he said the government is promoting solar power, including offering to purchase solar power.

He stated that while it will cost someone Tk 8.5 per unit to install solar power, the government will buy it at Tk 10.50 per unit from them. “Through this, we want to see electricity consumers as electricity producers.”

On inflation, the PM’s adviser said some of it stemmed from normal economic growth, but excessive pressure had come from past plunder and corruption, including irregularities in imports and exports that pumped money into circulation.

A long-term target of 5-6 percent inflation while maintaining growth was realistic for a developing economy, he said.

National Professor Mahbub Ullah, meanwhile, said a “plunder economy” had developed in Bangladesh since independence, with influential groups benefiting by redistributing existing resources rather than engaging in production, hindering investment and growth.

In the past, many infrastructure projects were funded at two or three times the necessary cost, he said, letting influential groups take a cut of project funds while pumping money into the market without a matching rise in output, fuelling inflation.

“The problem is that production or output did not increase at the same rate as these investments. As a result, the excess supply of money in the market puts pressure on inflation,” said the professor.

Such an economy had contributed to the high inflation, he said, calling for moving the economy away from a plunder-based system towards production and fairness.

Mahbub also linked money stolen from banks to inflation.

He said a portion of the funds siphoned abroad were converted into dollars or other hard currency first, leaving a large amount of local currency in the domestic market.

The national professor also spoke on the rising poverty. As per the World Bank’s latest report, the number of poor people increased by an estimated 14 lakh in Bangladesh in 2025.

Mahbub said the recent rise in poverty reflected falling real incomes, pushing people to cut non-essential consumption, a trend that could weaken demand and economic activity.
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On the low tax-to-GDP ratio, the economist said it was incorrect to assume that Bangladeshis did not pay taxes. Rather, people paid various forms of informal “taxes”.

“Extortion in the country is a form of taxation. It is a kind of tax,” he said, adding that, however, that money goes to political and influential groups rather than the state treasury.

Bringing the money that people are effectively forced to pay from the hands of informal groups into the state’s revenue system could help resolve major economic problems, he said.

Md Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said simply raising interest rates would not be enough to control inflation.

Extortion, market control, supply-chain weaknesses and the law-and-order situation also drive up prices, he said, adding that ensuring fuel supply was crucial since energy shortages were disrupting production, particularly in oil refining and sugar processing.

The government’s top priority should be keeping operating factories open, he said, while also working to reopen closed ones.

He called for the immediate reopening of coal- and furnace-oil-fired power plants to boost electricity generation, reduce gas dependence in power generation, and free up gas for factories and other priority sectors.

Fahmida Khatun, a distinguished fellow of the CPD, said there were some areas of relief in Bangladesh’s economy in the last six months, but it remained facing several challenges.

The weak contribution of the industrial sector was a major reason behind the decline in GDP growth in the January-March quarter, she said.

Both short-term and long-term solutions are needed to address the energy crisis. Structural reforms in the energy sector are therefore also necessary, she added.

The government plans to cut the minimum local ownership requirement for mobile operators to 10 percent from 15 percent, according to the latest draft of the Telecommunications Network and Licensing Policy.

The draft, seen by The Daily Star, says operators would have to maintain the 10 percent local ownership through an approved ownership structure while maintaining substantial operations in Bangladesh.

The proposal has received mixed reactions from industry players and experts. Some have welcomed the reduction, while others say the government should remove the local ownership requirement altogether.

Shahed Alam, chief corporate and regulatory affairs officer at Robi Axiata, said the earlier restriction on foreign investment in existing telecom companies was not fully consistent with existing laws or the government’s commitments.

He said the restriction did not appear to comply with the Foreign Direct Investment Protection Act or the government’s pledge not to force existing foreign investors to sell their stakes.

“We welcome the latest move to restore and reaffirm this commitment,” Shahed told The Daily Star. “This is a positive step towards maintaining policy consistency, strengthening investor confidence and reinforcing Bangladesh’s commitment to a predictable and investment-friendly environment.”

Taimur Rahman, head of corporate and regulatory affairs at Banglalink, said the company had consistently argued that a mandatory local ownership requirement could discourage foreign investment.

Greater local participation could be encouraged, he said, but it should not be compulsory.

He also called for meaningful consultation with telecom operators before any policy changes are finalised.

Major Gen (retd) Md Emdad Ul Bari, chairman of the Bangladesh Telecommunication Regulatory Commission (BTRC), said the government would make the final decision on foreign ownership.

“Fundamentally, we believe there could be majority foreign ownership at the local infrastructure layer, while ownership at the international layer should remain with local operators,” he said.

The ownership structures of the country’s three private mobile operators show their strong reliance on foreign investment.

At Grameenphone, Telenor owns 55.8 percent and Grameen Telecom 34.2 percent, while the remaining 10 percent is held by public and institutional investors, according to BTRC data.

Malaysia’s Axiata and India’s Bharti Airtel own 61.82 percent and 28.18 percent of Robi respectively. The rest is held by general investors.Banglalink is fully owned by Dubai-based VEON. Meanwhile, state-owned Teletalk has less than 3.5 percent of the mobile subscriber market.

A YEAR-LONG DEVELOPMENT

In September 2025, the interim government approved the Telecommunications Network and Licensing Policy, limiting foreign ownership in the network access licence category, which covers mobile operators, to 85 percent.

The move effectively required at least 15 percent local ownership. Robi and Banglalink had criticised the proposal and called for the requirement to be removed.

In July 2025, the CEOs of Axiata Group, Telenor Asia and VEON wrote to the interim government, urging it to reconsider the restrictions. They warned that applying the foreign ownership limit to existing investments could hurt future investment and slow the sector’s growth.

After the policy was approved, BNP leaders called for a review.

At an event in November 2025, Amir Khosru Mahmud Chowdhury, who now heads the planning and finance ministry, said the policy needed to be reviewed to protect the interests of citizens, the country and investors.

At the same event, Jahiruddin Swapan, then a member of the BNP chairperson’s advisory council and now the prime minister’s political adviser, said the policy gave foreign investors an advantage because of their technological capabilities and left local entrepreneurs at a disadvantage.

After taking office, the BNP-led government proposed raising the local ownership requirement to 20 percent, according to industry officials familiar with the matter.

The proposal, however, faced opposition from telecom operators and Malaysian government officials, the sources said.

The Daily Star could not independently verify the claims.

The government has now settled on a 10 percent threshold in the latest draft.

Abu Nazam M Tanveer Hossain, a telecom expert, welcomed the move.

“Encouraging local ownership can deepen domestic participation in the digital economy and should be a positive long-term objective,” he said.

However, he said the requirement needed to take into account the different ownership structures of Bangladesh’s mobile operators and the sector’s heavy reliance on foreign capital.

“Any mandatory threshold must therefore be carefully calibrated. Telecom remains highly capital-intensive and dependent on sustained foreign investment,” he said.

A 10 percent requirement, he added, offers a better balance between encouraging local participation and avoiding a policy that could discourage investors.

Bangladesh’s garment industry will need greater access to clean energy to remain competitive as European markets and global supply chains move towards a low-carbon future, Michael Miller, the EU ambassador and head of delegation to Bangladesh, said yesterday.

“Bangladesh has an opportunity to combine its manufacturing strength with cleaner production and position itself at the forefront of sustainable sourcing,” he said at a roundtable discussion titled “Advancing Decarbonisation for Apparel in a Changing Energy Landscape” in Dhaka, according to a press release.The event was jointly organised by HSBC Bangladesh, Apparel Impact Institute (Aii), the Embassy of Sweden in Bangladesh and the Delegation of the European Union to Bangladesh.Representatives from the government, global apparel brands, garment manufacturers, financial institutions, development partners and industry associations attended the event.

They discussed how Bangladesh can improve access to reliable and competitively priced clean energy for its apparel industry.

The sector will require $6.6 billion in investment to achieve 50 percent decarbonisation by 2030

Michael said the shift towards a low-carbon future in European markets and global supply chains would make clean energy increasingly important for Bangladesh’s garment sector.

“There is an opportunity to combine manufacturing strength with cleaner production that we encourage you to grasp with both hands, to place this country at the forefront of sustainable sourcing,” he added.

Kristina Elinder Liljas, senior director of sustainable finance and engagement at Aii, presented findings from the organisation’s research on financing the decarbonisation of Bangladesh’s apparel manufacturing sector.

The research identifies Bangladesh as one of the countries with significant potential to reduce emissions across global apparel supply chains. It also highlights the investment needed to achieve this goal.

The sector will require $6.6 billion in investment to achieve 50 percent decarbonisation by 2030, according to the research.

Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh, said, “As Bangladesh solidifies its global leadership in apparel, commercialising the energy transition is paramount. Unlocking private capital through supportive policy, scalable technology, and innovative financing will be the defining driver of future investment and competitiveness.”

The roundtable also highlighted the importance of international partnerships in supporting Bangladesh’s transition towards cleaner industrial production.

AKM Sohel, additional secretary and UN Wing chief of the Economic Relations Division at the Ministry of Finance; Olle Lundin, chargé d’affaires of the Embassy of Sweden; and Md Sarwar Hossain, deputy governor of Bangladesh Bank, also spoke at the event.

Participants said expanding access to clean energy is becoming important not only for environmental reasons but also for the competitiveness of the garment industry.

They said reliable and competitively priced renewable energy could help manufacturers reduce emissions and energy costs. It could also help them meet the expectations of international brands and markets.

Greater access to renewable energy could further help Bangladesh attract investment and strengthen its position as one of the world’s leading apparel sourcing destinations.

Randolph Brazier, global head of clean power systems and global sustainability at HSBC Holdings PLC, and Justin Wu, head of sustainability and climate change for Asia and the Middle East at HSBC, also joined the event over Zoom and presented their views on Bangladesh’s clean energy potential.

Vidya Khan, vice-president of the Bangladesh Garment Manufacturers and Exporters Association; Kim Hellström, senior sustainability manager for the Hong Kong special administrative region at H&M Group; and Olivia Windham Stewart, an independent sustainability adviser at ATTI Lead, among others, were also present.

The country's capital bourse extended its winning streak for a second consecutive session today (2 September), driven by broad-based bargain hunting on beaten-down shares, pushing daily market turnover up 22.5% to Tk731 crore.

The benchmark DSEX Index of the Dhaka Stock Exchange (DSE) rose 23 points, or 0.41%, to close at 5,660 points, compared to 5,637.31 points in the previous session.

The Shariah-compliant DSES Index advanced 4.70 points, or 0.42%, to 1,135.12, while the blue-chip DS30 Index gained 3.45 points, or 0.16%, to finish at 2,125.49.

DSE data showed the market opened strong, hitting an intraday peak of 5,673 points before temporary selling pressure dragged the index down to 5,644 points by mid-morning. The index later regained momentum to close in positive territory, marking the second straight day of gains.

Late-session accumulation in textile and insurance stocks secured a green close at the end of the trading session.

Out of 395 issues traded, 239 stocks advanced, 92 declined, and 57 remained unchanged, the data showed.

EBL Securities, in its daily market commentary, said the benchmark index of the capital bourse extended its recovery for a second consecutive session, as opportunistic investors sustained broad-based bargain hunting, accumulating beaten-down scrips at perceived attractive price levels, although broader investor sentiment remained cautious amid persistent domestic concerns.

The market opened on an optimistic note, although early gains were pared back as the benchmark index faced intermittent selling pressure, with investors remaining active on both sides of the trading fence. However, sustained buying interest, particularly in the textile and insurance sectors, persisted throughout the session, ultimately enabling the market to close higher, it said.

On the sectoral front, Textile sector stocks accounted for the highest share of turnover by 39.5%, followed by general insurance by 13.1% and Pharma sector stock by 10.3%.

Sectors mostly posted positive returns, where General Insurance by 2.3%, Textile 2% and Tannery 1.4% exhibited the highest return, while only Financial Institution and Jute sector stocks exhibited marginal correction on the bourse.

The port city bourse, CSE, ended in positive terrain. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) advanced by 31.7 points and 56.2 points, respectively.

Dhaka Electric Supply Company Limited (Desco) has received formal consent from the Bangladesh Securities and Exchange Commission (BSEC) to issue 4.59 crore irredeemable non-cumulative preference shares to the government.

According to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (2 September), the shares carry a face value of Tk10 each, amounting to a total of Tk45.90 crore.

These shares are being issued in favour of the Government of Bangladesh, represented by the Secretary of the Power Division under the Ministry of Power, Energy, and Mineral Resources, against equity already provided by the state.

This marks the third such instance in recent years where the state-owned power distributor has regularised government capital injections through the issuance of preference shares.

Previously, in July 2024, the regulator approved a substantial Tk607 crore issuance, followed by a smaller Tk2.38 crore issuance in May 2025.

Following the announcement, Desco's share price experienced a marginal correction, edging down by 0.43% to settle at Tk23 on the premier bourse.

The company's standing in the capital market remains under scrutiny, as it was downgraded to the 'Z' or junk category in October 2025 for failing to reward shareholders with dividends for two consecutive financial years.

In terms of financial performance, Desco's latest unaudited reports indicate a volatile but recovering bottom line. For the first nine months of the 2025-26 fiscal year (July-March), the company reported an earnings per share (EPS) of Tk1.46, marking a significant turnaround from a loss of Tk1.98 per share in the corresponding period of the previous year. However, the third quarter alone (January-March 2026) saw a net loss of Tk0.81 per share, although this was a notable improvement from the Tk1.83 loss recorded a year earlier.

As of 31 March 2026, the company's net asset value (NAV) per share stood at Tk39.05, while its net operating cash flow per share rose to Tk13.85 from Tk8.98 in the prior year.

Bangladesh's benchmark stock index significantly underperformed its regional peers in August, posting the second-worst return among the tracked markets.

According to the "Monthly Market Wrap" for August by Sheltech Brokerage Limited, the DSEX declined 297 points, or 5.05% month-on-month, to 5,598, snapping a four-month winning streak.

Among eight tracked regional markets, only Thailand's SET Index performed worse, declining 1.75%, while India's S&P BSE Sensex fell 1.46%.

By contrast, Vietnam's VN-Index gained 5.01%, Indonesia's IDX Composite rose 4.64%, Sri Lanka's ASPI advanced 0.99%, Pakistan's KSE 100 increased 0.50%, and Malaysia's FTSE Bursa Malaysia KLCI edged up 0.06%.

The sharp divergence highlights the weakness of Bangladesh's market compared with most regional peers during the month.

DSEX falls as energy crisis overshadows reforms

Sheltech Brokerage said in its report, the DSEX's performance was primarily shaped by the energy supply crisis, uncertainty surrounding the finalisation of margin rule amendments and reports of heightened regulatory oversight.

The market initially witnessed a tug-of-war between buying and selling interest as investors assessed the energy crisis and awaited clarity on the proposed margin rule changes. This came despite Bangladesh Bank's decision to reduce the policy rate by 50 basis points, which was expected to provide some support to economic activity and liquidity, it added.

The margin rule amendment was eventually finalised in the middle of the month, offering greater flexibility to investors. However, the regulatory development failed to reverse the market's downward trajectory, read the report.

Selling pressure persisted as concerns over the energy crisis intensified, particularly over its potential impact on industrial production, corporate earnings and the broader economy. Media reports suggesting possible regulatory tightening further unsettled investors, said Sheltech Brokerage.

"Although subsequent regulatory clarification denied some of the reported potential measures, investor confidence remained weak. Selling pressure intensified toward the end of August, pushing the DSEX to an approximately two-month low."

At the same time, trading activity deteriorated sharply. Average daily turnover fell 30.16% month-on-month to Tk876 crore, while market breadth declined, reflecting broad-based selling pressure amid subdued participation.

Market insiders said retail investors remained the most active participants during the downturn, particularly on the selling side. Foreign investors were also more active in selling than buying, while institutional investors were mostly on the buying side during sessions when the DSEX declined.

The weakness was particularly evident among large-cap stocks. While gains remained concentrated in a handful of Z-category and mid-cap companies, broad-based weakness in large-cap shares exerted significant pressure on the benchmark index. The market's sectoral performance was also overwhelmingly negative.

Almost all sectors posted negative returns during the month. IT led the decline with a 9.94% fall, followed by mutual funds at 9.56%, cement at 9.08%, ceramics at 8.37% and non-bank financial institutions at 8.36%.

The monthly gainers' list was led by Tung Hai Knitting, whose share price rose 53.57%, followed by GBB Power with a 50% gain and Saiham Textile with 43.09%. Nitol Insurance and Alltex Industries gained 25.56% and 19.61%, respectively.

On the other hand, FAR Chemical suffered the steepest decline among the major losers, falling 32.79%. Sharp Industries dropped 31.91%, ML Dyeing 26.97%, AIBL First Mutual Fund 26.15% and Sunlife Insurance 25.65%.

Investors await energy relief, earnings catalysts

The market's August performance stands in sharp contrast to the gains recorded by most regional peers, raising concerns over the domestic market's ability to attract fresh investment amid persistent economic challenges.

Sheltech Brokerage said the energy crisis has emerged as a particularly important concern because prolonged shortages can disrupt factory operations, reduce capacity utilisation and eventually weaken corporate earnings. Investors are therefore closely watching developments in energy supply and their impact on businesses.

"The upcoming earnings and dividend announcements from companies with June year-end financial periods are also expected to influence market direction in the near term."

According to Sheltech Brokerage, investors will likely assess whether renewed buying interest can emerge and help the DSEX defend its 5,527–5,643-point support zone.

The market's ability to hold this range could be important in determining whether the recent correction stabilises or extends further.

Meanwhile, the combination of regulatory reforms and weak investor sentiment presents a mixed picture. The finalisation of the margin rules removed some uncertainty, while monetary easing offered another potential positive catalyst. Yet these measures have so far failed to outweigh concerns surrounding energy supply and the broader economic outlook, said Sheltech Brokerage.

Shares of Saiham Textile Mills have more than doubled in just 25 trading sessions, even as the company maintains it has no undisclosed price-sensitive information to explain the rally and despite one of its two production units remaining shut for Balancing, Modernisation, Rehabilitation and Expansion (BMRE) work.

Data from the Dhaka Stock Exchange (DSE) show that Saiham Textile shares closed at Tk18.80 on 26 July. By today (2 September), they had climbed to Tk38.20, gaining Tk19.40, or 103.19%.

The stock gained another Tk3.20, or 9.14%, today alone. A total of 7.13 million shares changed hands on the day, with trading activity also rising significantly in recent weeks.

Such an unusual movement of Shares of Saiham Textile Mills has attracted the attention of the Bangladesh Securities and Exchange Commission (BSEC).

Abul Kalam, executive director and spokesperson of the BSEC, told TBS that the regulator has taken note of the unusual price and trading volume.

"The matter has come to the BSEC's attention. We will examine why the price and trading volume are rising unusually. If any irregularities are found, action will be taken," he said.

The DSE sought an explanation from Saiham Textile on 6 August over the unusual movement in its share price and trading volume. In its response on 9 August, the company said it had no undisclosed price-sensitive information that could explain the surge.

The company had earlier given a similar response to the Chittagong Stock Exchange (CSE), denying any undisclosed price-sensitive information behind the unusual movement.

The sharp rise has come at a time when one of Saiham Textile's two production units is closed for BMRE.

The old spinning unit, established in 1993, was shut down on 1 June due to ageing machinery. According to the company, the old equipment had reduced production capacity, affected yarn quality and increased production costs.

Under the BMRE project, the company plans to sell the old machinery and install modern automated spindle machines. The factory building will also be renovated, followed by commissioning and trial production. The entire process was initially expected to take around 18 months.

Md Neyamat Ullah, company secretary of Saiham Textile, told TBS that the company had no information about the recent movement in its share price.

"We have no knowledge about the movement in the share price. There is also no undisclosed price-sensitive information at present," he said.

He added that although the shutdown was announced for around 18 months, the company was trying to complete the BMRE work earlier.

Saiham Textile has two production units. While the old spinning unit is closed, its melange unit, established through a rights share issue and commercially launched in 2013, remains operational.

Market participants said the unusual price and volume movement warrants regulatory scrutiny, particularly as one unit is closed and the company has denied having any undisclosed price-sensitive information. They said the regulator should examine whether any coordinated trading or manipulation is behind the sharp movement of the shares of Saiham Textile.

Meanwhile, the company's latest financial results do not show a major improvement that would independently explain the surge.

During July 2025-March 2026, Saiham Textile posted a net profit of around Tk4.59 crore, up about 7% from the same period a year earlier. Its earnings per share (EPS) rose to Tk0.51 from Tk0.47.

The company's net asset value (NAV) per share stood at Tk43.75 as of 30 June 2025. At Tk38.20, the stock was still trading below its NAV today.

Saiham Textile expects the BMRE project to improve production capacity and efficiency once the upgraded spinning unit resumes operations.

However, the financial benefits of the project have yet to materialise as the unit remains closed.

Against this backdrop, the 103% rise in the share price in just 25 trading sessions has raised questions among investors and market participants. The BSEC's decision to examine the unusual price and trading volume has placed the stock under closer regulatory scrutiny.