Bangladesh's stock market opened the week on a bearish note on Sunday, with both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) recording sharp falls in their key indices as share prices declined for most listed companies.

The DSE's benchmark index, DSEX, fell 38 points during the day's trading. The Shariah-based index, DSES, dropped 6 points, while the blue-chip index, DS30, lost 14 points.

Of the 392 companies traded on the DSE, 286 saw their share prices fall, 79 posted gains, and 27 remained unchanged.

Overall turnover on the DSE declined, with shares and units worth Tk 964 crore changing hands during the day, down from Tk 1,147 crore in the previous session.

Nitol Insurance PLC topped the DSE gainers' list, rising nearly 10 per cent, while Peoples Leasing and Financial Services Limited was the worst performer, losing more than 8 per cent.

The CSE also witnessed a steep fall, with its overall index, CASPI, shedding 106 points.

Prices fell for the majority of companies on the CSE, with 139 issues declining against 52 advancing and 24 remaining unchanged.

Turnover on the CSE, however, edged up slightly, with shares and units worth Tk 31 crore traded during the day, compared to Tk 29 crore in the previous session.

Bangladesh Lamps PLC led the CSE gainers, rising close to 10 per cent, while Envoy Textiles Limited posted the sharpest decline, losing 10 per cent.

Mutual funds are gaining renewed investor attention, as regulatory reforms aimed at strengthening governance, safeguarding fund assets, and improving accountability appear to be restoring confidence in the sector.

Market participants say the Bangladesh Securities and Exchange Commission's (BSEC) recent measures have addressed some of the key concerns that kept discouraging investors for long from investing in mutual funds, particularly over security and custody of fund assets.

The DSEX, the benchmark index of the Dhaka Stock Exchange, increased 3.7 per cent over the six weeks through August 6 while mutual funds’ sectoral gain is above 30 per cent during the same period. Many mutual funds advanced more than 20 per cent in the secondary market in the six weeks’ time.

The sharp divergence indicates that investors are reassessing mutual funds as regulatory changes improve governance and reduce concerns over the safety of fund assets.

Under the Mutual Fund Rules, 2025, trustees have been recognised as legal owners of assets in fund portfolios, while unitholders remain beneficial owners. At the same time, custody of the assets and money has been placed more firmly under the custodians, separating asset management from direct control over cash and securities.

The arrangement is designed to prevent asset managers from directly moving or withdrawing cash and assets. Asset managers are responsible primarily for investment decisions, while custodians would execute payments for securities purchases and receive proceeds from sales.

Even management fees claimed by asset managers are subject to verification by custodians before payments, according to BSEC spokesperson Md. Abul Kalam.

“This has laid a stronger foundation of trust because asset managers can no longer take away mutual fund assets,” he said.

The regulator has also been working to address the long-standing problems relating to closed-end mutual funds, many of which have traded at substantial discounts to their net asset values (NAVs).

The BSEC has moved to facilitate the conversion of closed-end mutual funds into open-end structures, which will give investors a better opportunity to realise the value of their holdings. Unlike closed-end funds, open-ended funds provide investors with a mechanism to surrender units at NAV.

The securities commission has also taken steps against poorly performing asset managers, including cancellation of some management appointments, in efforts to improve the quality of fund management.

These measures appear to be gaining traction in the market, with mutual funds significantly outperforming the broader equity market in recent weeks.

The stronger performance also comes at a time when the broader market has shown some volatility, suggesting that the recent mutual fund rally might be driven not only by overall market sentiment but also by sector-specific expectations surrounding reforms.

The government has mapped out five strategic priorities for its ICT and telecommunications sectors, focusing on areas such as tax reform and upgraded connectivity, Rehan Asif Asad, adviser to the prime minister on post, telecommunications, ICT, science and technology, said yesterday.

The priorities also include digital public infrastructure, AI-focused skills development and electronics manufacturing, he said at a policy dialogue, titled “Accelerating Bangladesh’s Digital Future: Policy Priorities for Innovation, Investment & ICT-Led Growth”, organised by the American Chamber of Commerce in Bangladesh (AmCham), at The Westin Dhaka.

The adviser said the government would pursue consistent, forward-looking policies for the sector under a five-year tax framework.

He highlighted that Bangladesh’s mobile industry currently shoulders an effective tax burden of 51 percent to 56 percent, well above the global average of 22 percent to 27 percent. He added that removing the SIM tax forms a key component of ongoing tax relief efforts.

Fixing connectivity remains a major priority. While Bangladesh ranks seventh globally in total mobile subscribers, the network quality severely lags international standards. To modernise state services, the government plans to deploy a “One Citizen, One ID, One Digital Wallet” system modelled on Estonia’s open-source X-Road platform. Offered free to citizens, every digital ID will link directly with bank accounts and the National Board of Revenue.

Fourthly, the administration aims to create an AI-ready workforce. Programmes will upskill the country’s 23,000 to 30,000 annual science and engineering graduates in artificial intelligence, cybersecurity, and data science, while foundational modules will be introduced into school curricula.

Finally, the government plans to offer electronics manufacturers incentives similar to those that powered the ready-made garment sector.

Citing international benchmarks, the adviser noted how Vietnam expanded its consumer electronics exports from $1 billion to $217 billion within a decade. Citing UN and International Telecommunication Union data, he added that every 10 percent increase in broadband penetration boosts national GDP by 1 percent.

Responding to the plans, AmCham President Syed Mohammad Kamal welcomed the ratification of the Personal Data Protection Act.

However, he urged officials to clarify new digital permanent establishment rules for platforms exceeding 100,000 subscribers, reconsider raising the internet service provider turnover tax from 1 percent to 1.5 percent of gross receipts, and ease inbound and outbound international payments for technology companies and startups.

LightCastle Partners, in partnership with Meta, has launched the Meta Small Business Growth Academy in Bangladesh to help small and medium-sized businesses improve their digital capabilities and expand into new markets.

The programme will provide entrepreneurs with hands-on training on Meta's digital platforms and AI-powered tools, focusing on areas such as digital marketing, online presence, customer engagement and business expansion.

Through workshops and other activities, LightCastle will help local entrepreneurs use digital platforms to reach new customers, strengthen their online businesses and identify new growth opportunities.

The initiative comes as Bangladesh's small and medium-sized business sector increasingly adopts digital technologies to reach customers and expand operations. Entrepreneurs in sectors including ready-made garments, agriculture and other small businesses are among those expected to benefit from the training.

Tehara Punchihewa, associate public policy manager at Meta, said the programme would help entrepreneurs develop practical skills to use AI-enabled tools and compete more effectively in the digital economy.

"At Meta, we see every day how small businesses use our AI-enabled tools to reach customers and grow," Punchihewa said.

Bijon Islam, CEO of LightCastle Partners, said the initiative would support grassroots entrepreneurship and contribute to inclusive economic growth.

The Small Business Growth Academy will be implemented in 12 countries across the Asia-Pacific region, with an initial target of supporting more than 10,000 businesses.

Training will be tailored to local market needs and will cover strengthening online presence, improving digital marketing, increasing the use of AI-powered tools, enhancing customer engagement and identifying opportunities for business expansion.

The Bangladesh programme is part of Meta's broader Asia-Pacific initiative, under which the company will work with governments, industry partners and local business organisations to help entrepreneurs develop skills needed to participate in the digital economy.

Bangladesh's rapidly growing demand for imported soybeans has emerged as a key opportunity for US soybean farmers and exporters, as the country's poultry, aquaculture and feed industries continue to expand.

The opportunity was prominently highlighted at the two-day Soy Connext 2026, the flagship international conference of the US Soybean Export Council (USSEC), which concluded in Chicago on Friday (7 August).

More than 850 participants from 67 countries, including around 400 international buyers and 12 representatives from Bangladesh's soybean value chain, joined the 6–7 August event. The Bangladeshi delegation included representatives from ACI Godrej, Delta Agro Industries, Asta Feed, Mahbub Agro, KGS Group, Akij Feed and Nahar Agro, among others.

The delegation held a series of meetings with US soybean farmers, exporters and suppliers and visited soybean farms and related facilities, giving Bangladeshi businesses a firsthand look at US production, quality control, sustainability and supply-chain management.

For USSEC, Bangladesh is no longer a peripheral market in South Asia.

The US has rapidly emerged as Bangladesh's largest soybean supplier. In the first eight months of marketing year 2025/26, the US accounted for 84% of Bangladesh's soybean imports, up from 48% a year earlier, according to USDA data. Bangladesh produces only around 7% of its annual soybean requirement, leaving the country highly dependent on imports.

USSEC said Bangladesh had already purchased 1.13 million tonnes of US soybeans in MY2025/26 through 5 February 2026. The organisation has been working with Bangladesh's soybean and animal-protein industries for around three decades through technical training, trade missions and industry support.

Bangladesh and China have stressed the need for stronger technology transfer, knowledge sharing and investment in innovation to help Bangladesh’s ceramics industry overcome rising energy costs and improve its competitiveness in global markets.

Industry leaders and experts made the observations at the China-Bangladesh Ceramics Annual Conference 2026, jointly organised by the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) and Foshan Uniceramics Expo in Dhaka on August 8.

Speaking at the conference, Moynul Islam, president of BCMEA, called for greater adoption of Chinese technologies and innovative solutions to address the industry’s energy challenges.

He particularly highlighted technologies such as electric kilns and hydrogen-enriched heating systems.

Irfan Uddin, general secretary of BCMEA, said meaningful collaboration, knowledge exchange and innovation were essential for building a stronger and more competitive industry.

“No industry can grow alone” in today’s interconnected world, he said, stressing the importance of partnerships in driving technological progress.

Eva Chan, overseas business department manager of Uniceramics China, said Bangladesh’s ceramics market has significant growth potential, noting that the country’s per capita ceramic consumption is about one square metre, compared with 6.9 square metres at China’s peak.

She urged Bangladeshi manufacturers to move away from price-based competition and focus more on quality, design and branding to capture both domestic and international markets.

Mohammad Khorshed Alam, president of the Bangladesh China Chamber of Commerce and Industry, said stronger cooperation between businesses of the two countries could create new opportunities in local and international markets.

He also stressed the importance of technology transfer and skills development.

Md Mamunur Rashid FCMA, senior vice president of BCMEA, said the ceramics industry had emerged as one of Bangladesh’s promising manufacturing sectors.

Bangladesh now produces tableware, tiles and sanitaryware for export to Europe, North America and the Middle East, he said.

Abdul Hakim (Sumon), senior vice president of BCMEA, said the industry needed to explore alternative energy sources, including solar power, as it could not remain dependent solely on gas.

The conference also featured a technical session on technology, innovation and Bangladesh’s market potential, followed by discussions and presentations by Chinese technology and materials companies.

Bangladesh Bank has declared four financial institutions non-viable and initiated resolution proceedings against them under the Bank Resolution Act, 2026, citing severe financial weaknesses and their inability to meet obligations to depositors and other creditors.

According to a press release issued today (9 August), the institutions are Aviva Finance Limited, Fareast Finance and Investment Limited, FAS Finance and Investment Limited, and International Leasing and Financial Services Limited.

The central bank said it took the decision to restore good governance and accountability in the financial sector, protect the interests of depositors and other creditors and rebuild public confidence in the sector.

Following the declaration of the institutions as non-viable and their inclusion under the Bank Resolution Act, Bangladesh Bank exercised powers granted to it under the law to dissolve their boards of directors and cancel the appointments of their chief executive officers.

Administrators have also been appointed to oversee the resolution process and ensure its smooth and effective implementation while safeguarding the interests of depositors and other stakeholders.

The decision was taken following a review of the institutions' financial strength and prospects for recovery, based on a decision of the Bangladesh Bank board.

According to the central bank, the key reasons include large capital shortfalls, high levels of classified loans and investments, failure to maintain adequate liquidity, deteriorating earning capacity, and inability to repay liabilities owed to depositors and creditors.

Bangladesh Bank officials have been appointed as Administrator and Associate Administrator to manage the resolution process at the four institutions.

They will be responsible for overseeing the administration, management and resolution activities of the respective institutions.

Bangladesh Bank expressed hope that the move would help restore discipline and good governance in the financial sector and protect the interests of depositors and other stakeholders.

Bangladesh is preparing to launch formal negotiations for a free trade agreement with the European Union while pressing ahead with its bid to join the Regional Comprehensive Economic Partnership (RCEP), as the country steps up its efforts.

The dual push marks a significant step for the country. With chief negotiators appointed and diplomatic groundwork laid, Dhaka is positioning itself to cement formal trade ties with two of the world’s most powerful economic blocs.

Formal steps for the EU trade negotiations are expected to begin next month. Commerce Minister Khandakar Abdul Muktadir confirmed that an initial exchange of formal letters with the EU has already taken place, agreeing to enter negotiations for a free trade agreement (FTA).

“We are hopeful that we will get the date of engagement for the negotiation with the EU after August,” Muktadir told The Daily Star.

An additional secretary from the Ministry of Commerce has been named Bangladesh’s chief negotiator, while the EU has similarly appointed its lead trade representative.

The EU remains Bangladesh’s largest export destination. According to European Commission data, Bangladesh was the EU’s 35th-largest trading partner in 2025, accounting for 0.5 percent of total EU trade in goods. Conversely, the EU was Bangladesh’s largest trading partner, capturing a 21.5 percent share of the country’s global merchandise trade.

Bilateral trade in goods reached €23.3 billion in 2025, leaving the EU with a €19.1 billion trade deficit in Bangladesh’s favour. EU imports from Bangladesh are overwhelmingly dominated by textiles, which comprised nearly 94 percent of total shipments in 2025.

Furthermore, Bangladesh is the largest beneficiary of the EU’s Everything But Arms (EBA) arrangement, with €19 billion worth of exports benefiting from these duty-free preferences in 2024 at a 96 percent utilisation rate.

EU foreign direct investment stock in Bangladesh stood at €2.5 billion in 2024, while Bangladesh’s FDI in the EU totalled €86 million.

Parallel to the European talks, Commerce Secretary Md Ataur Rahman Khan is currently visiting Australia and New Zealand to rally support for Bangladesh’s accession to RCEP.

The 15-nation free trade agreement in the Asia-Pacific region -- comprising the ten ASEAN members alongside Australia, China, Japan, New Zealand, and South Korea -- encompasses 30 percent of global GDP and represents a $32 trillion economic zone.

Muktadir expressed confidence in Bangladesh’s prospects for joining RCEP, noting that the country has satisfied foundational criteria, such as submitting formal applications, and holds an advantage due to existing bilateral trade pacts with members Japan and South Korea.

However, the minister did not say exactly when Bangladesh may gain RCEP accession.

China’s consumer and factory prices grew slower than expected last month, official data showed Sunday, as the world’s second-largest economy confronts persistent deflationary pressure.

The consumer price index, a key gauge of inflation, eased to 0.5 percent year-on-year, according to the National Bureau of Statistics (NBS).

That was lower than the 0.8 percent forecast by a Bloomberg survey and the slowest rise since January.

Sluggish domestic consumption has vexed Beijing for several years, threatening to weigh down national growth even as exports and certain high-tech sectors boom.

Many economists contend that China must shift towards a growth model driven more by household spending than the traditional engines of past decades, including real estate and infrastructure investment.

A gauge of China’s factory-gate prices, which measures the cost of goods at the first point of sale, also grew at a slower pace last month, NBS data showed Sunday. The producer price index increased 3.5 percent year-on-year in July, slowing from 4.1 percent in June and lower than the 3.8 percent forecast by Bloomberg.

“Economic momentum softened in (the second quarter)” of 2026, wrote Zhiwei Zhang, President and Chief Economist of Pinpoint Asset Management, in a note on Sunday’s data.

A meeting of the ruling Communist Party’s high-ranking Politburo in late July “signaled stronger fiscal spending as the policy response”, wrote Zhang, adding that a couple of months are needed to assess how it may boost domestic demand.

The latest figures come two days after trade data for July showed exports and imports soaring, boosted by increased overseas demand for AI-related tech products.

The surge in exports this year has helped China’s vast manufacturing sector through the prolonged slump in domestic spending.

The Bangladesh Bank has allowed tour operators that are members of the Tour Operators Association of Bangladesh (Toab) to collect payments in taka from resident Bangladeshis for overseas tour packages and remit the corresponding foreign currency to service providers abroad.

In a circular issued today (9 August), the central bank said the facility would allow eligible tour operators to collect payments in taka and settle payments with overseas service providers through authorised dealer (AD) banks.

Under the new arrangement, eligible tour operators must have agreements with overseas tour operators, hotels or destination management companies. AD banks may remit foreign currency against tour packages covering accommodation, transportation and other destination-related services.

The facility allows remittances of up to $3,000 per traveller per calendar year, outside the regular annual travel quota.

Tour operators must maintain passport-based records and obtain declarations from travellers confirming that they have not exceeded the annual limit through other tour operators.

Remittances exceeding $3,000 may also be permitted when package payments are collected in foreign currency through international cards. AD banks may provide acquiring services for such card transactions.

Bangladesh Bank has instructed AD banks to report such remittances to the central bank within seven days for post-facto scrutiny.

Business insiders welcomed the policy support, saying the decision would facilitate outbound tourism and help promote the growth and formal development of Bangladesh's tour business.

Bangladesh's Purchasing Managers' Index rose sharply in July, driven by the strongest manufacturing performance in months and the highest export earnings in a year, a business survey showed today (9 August).

The composite PMI, compiled by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh, jumped 4.9 points to 57.8 in July from 52.9 in June, well above the 50-point threshold separating growth from contraction.

Manufacturing led the recovery, surging 16.6 points to 65.4, its strongest reading in the survey period, with expansion recorded across new orders, exports, output, employment, imports and supplier deliveries simultaneously.

"The July PMI signals broad-based strengthening of Bangladesh's economy, led by a sharp manufacturing rebound and continued expansion in agriculture and services," said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh. "The manufacturing recovery coincided with the highest monthly export earnings in 12 months."

The services sector expanded for a 22nd consecutive month, rising 1.4 points to 56.0, while agriculture recorded its 11th straight month of expansion, though growth moderated by 9.6 points to 55.2.

Construction remained in contraction for a second consecutive month, with its PMI standing at 49.3. The reading, however, improved by 9.1 points from June's 40.2, which was its weakest point in the survey period.

Masrur attributed the improvement partly to "improved foreign-exchange conditions" and businesses' expectations of a more supportive environment following the FY2026-27 budget, which included deregulation measures announced last month.

The Future Business Index showed strong expansion across all four sectors, indicating that purchasing managers expect business conditions to improve further in the coming months.

Order backlogs, however, remained in contraction across multiple sectors, suggesting that the pipeline of future work remains thin despite the near-term improvement.

Bangladesh is the world's second-largest garment exporter. Its economy has faced four years of inflation above 9% and historically low private credit growth, making the July PMI improvement a closely watched indicator of whether an economic recovery is taking hold.

The PMI survey was developed with support from the UK government and technical assistance from the Singapore Institute of Purchasing and Materials Management.

Islami Insurance Bangladesh Limited's earnings per share (EPS) rose 30.38% year-on-year in the first half of 2026, while its operating cash flow also improved significantly.

According to unaudited financial statements disclosed on the Dhaka Stock Exchange (DSE), the insurer's net profit increased to Tk8.48 crore in January-June 2026, from Tk6.50 crore a year earlier. EPS rose to Tk2.06 from Tk1.58

In the April-June quarter, Islami Insurance posted a net profit of Tk4.28 crore, compared with Tk3.21 crore in the same quarter of the previous year

NOCFPS surged to Tk2.72 in the first six months, from Tk1.06 in the same period last year.

The company's net asset value (NAV) per share stood at Tk25.75 as of 30 June, up from Tk23.62 at the end of December 2025, an increase of Tk2.13, or about 9%.

Following the earnings disclosure, the company's share price fell 2.90% today (9 August) to close at Tk63.70 on the DSE.

The stock had surged around 86% between March and June, despite the company saying it had no undisclosed price-sensitive information (PSI) behind the unusual price movement.

Meanwhile, Islami Insurance is facing a regulatory investigation over corporate governance allegations made by six former sponsor directors against Chairman Mohammad Sayeed Khokon.

The former directors alleged that Khokon has been running the company from an undisclosed location while retaining financial and administrative authority.

They also alleged that after he became chairman in 2012, the six former sponsor directors were removed from the board without legitimate reasons and replaced by his wife, two daughters, sister-in-law and two companies owned by him.

According to the complainants, family-affiliated directors now number 10 and collectively control around 30.35% of the company's paid-up capital.

They alleged that the family-centric ownership and management structure violates provisions of the Companies Act, Insurance Act and securities laws.

The Bangladesh Securities and Exchange Commission (BSEC) has formed a four-member committee to investigate the allegations, review relevant documents and gather evidence before submitting a report.

The allegations have not been established by the regulator, and the investigation is ongoing.

The Bangladesh Energy Regulatory Commission (BERC) has adjusted the price of Jet A-1 aviation fuel for domestic flights, fixing the new price at Tk159.52 per litre from Tk130.99 - an increase of nearly 23%.

For international flights, the price has been set at $1.0358 per litre, up from $0.8556.

The commission fixed the prices after reviewing the average published Platts rate for Jet A-1 during 5 July to 4 Aug 2026, the US dollar exchange rate used by Bangladesh Petroleum Corporation (BPC) for letter of credit settlements and changes in diesel prices.

For domestic flights, the Jet A-1 price has been set at Tk159.52 per litre, inclusive of customs duties and VAT.

For international flights operated by both domestic and foreign airlines, the price has been fixed at US$1.0358 per litre, excluding customs duties and VAT.

The decision was taken following a hearing held at the commission on Sunday on the relevant report.

BERC said it adjusted the Jet A-1 price after a detailed review of the relevant market and cost factors.

The revised rate will remain applicable for August 2026, unless subsequently adjusted by the commission.

The Investment Corporation of Bangladesh (ICB) has introduced its first-ever securities valuation policy to determine the fair value of its Tk14,983 crore investment portfolio, as the state-owned investment institution grapples with mounting losses and a severe financial crisis.

The new policy aims to improve financial transparency and reduce the risk of overvaluation or undervaluation of assets, particularly its substantial holdings in non-listed securities whose fair values had not previously been systematically assessed.

"As ICB currently faces a severe financial crisis, an initiative has been taken to assess the fair value of these assets, something that was never done before," an ICB official told The Business Standard on condition of anonymity.

The state-owned investment banker has long served as a key institution in advancing industrial growth and deepening its capital market.

From its inception, ICB has provided crucial institutional support to capital-starved firms through underwriting, bridge loans, and equity-backed financing.

Over time, it broadened its scope to encompass pre-IPO placements, debentures, equity participation, bonds, and leasing, alongside active portfolio management in the secondary market.

Despite its expansive presence across listed and non-listed assets, ICB lacked a standardised policy to determine fair market value.

This regulatory gap frequently exposed its annual financial statements to the risk of overestimating or underestimating investment values.

According to International Financial Reporting Standards (IFRS) 13, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Essentially, it's an exit price from the perspective of a market participant, considering current market conditions.

As of June 2025, ICB's total investment portfolio stood at Tk14,983 crore. Of this, Tk365.35 crore is allocated to government securities, while Tk14,617 crore is invested in other market assets.

Non-listed securities account for Tk1,100 crore of its total exposure with the substantial amount in mutual funds Tk894.34 crore, preference shares Tk149.50 crore and Tk53 crore in Ordinary Shares.

Currently, the ICB is struggling to stay afloat due to poor investment choices, severe portfolio erosion driven by market volatility, and a heavy debt burden incurred while supporting the capital market, factors that have dragged the once-profitable institution into crisis.

The situation is so dire that the institution failed to repay funds borrowed under a government sovereign guarantee upon maturity, prompting the government to extend the repayment deadline by another three years.

Furthermore, it is unable to service the interest on loans taken from state-owned banks for stock market investments.

Meanwhile, ICB lost about one-third of the money it borrowed from the government, state-owned banks and investors after years of supporting the stock market, leaving it under severe financial pressure and prompting a fresh appeal for government assistance. ICB reported a net loss of Tk1,214 crore in FY25, forcing it to skip dividend distributions.

The financial stress has persisted into the current fiscal year, with the corporation incurring an additional loss of Tk588 crore through March 2026. As a result, ICB's retained losses have ballooned to Tk1,609 crore.

Requesting anonymity, an ICB official said, "For many years, ICB provided financial assistance to entrepreneurs to support the country's industrialisation. It invested in both listed and non-listed companies. Under those circumstances, investments were made in numerous non-listed firms, but the fair value of these assets was never determined. As ICB currently faces a severe financial crisis, an initiative has been taken to assess the fair value of these assets, something that was never done before."

He added, "The current board is adopting various plans to restructure and save ICB. Initiating the fair value assessment of assets is a key part of these efforts."

The newly introduced framework aligns asset assessments with International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS), said in the valuation policy.

It establishes clear valuation criteria across both listed instruments such as equities, debentures, bonds, and mutual funds and non-listed holdings, including preference shares, underwriting securities, and unlisted funds.

To operationalise the policy, ICB has set up a seven-member valuation committee. Operating under specific terms of reference, the committee is tasked with determining accurate market values and submitting quarterly reports directly to the board of directors.

As per valuation techniques, the listed securities valuation method will be the closing price on the reference date at the stock exchanges.

If a listed security has not been traded for the last 6 months, its fair value will be determined using the non-listed securities valuation method.

For unlisted or delisted securities, or those with no trade history in the last 6 months, the valuation committee will determine the fair value using net asset value (NAV) approach derived from reviewing the latest auditor's report.

To deal with non-performing fixed-income holdings, the policy introduces a progressive write-down mechanism for bonds, debentures, and preference shares when scheduled principal or interest or dividend payments fail.

Under these guidelines, investments maintaining regular recoveries are carried at purchase cost as their fair value.

However, if recovery remains uncollected for one year, the fair value is marked down to 75% of the purchase cost, falling to 50% after two years, and written down entirely to zero if default persists beyond three years.

Furthermore, the framework strictly prohibits recognising uncollected interest or dividend income from non-listed securities on an accrual basis, mandating that such returns cannot be booked as income without actual cash realisation.

The depository authority has moved to ensure the security of the shares of non-listed companies, making their transfer easier and preventing fraudulent transactions.

The services will also allow the enterprises to obtain bank loans easily by pledging shares in electronic form.

As per the existing system, the Central Depository Bangladesh Ltd. (CDBL) works as a custodian of the shares of all listed and some non-listed securities kept in dematerialised form.

Following the new development, the CDBL will work as a custodian of other non-listed companies registered with the Registrar of Joint Stock Companies and Firms (RJSC).

The CDBL’s bylaws permit it to work as a custodian of eligible securities -- listed or non-listed.

“The CDBL shall determine the securities that are eligible to be held in dematerialised form, which may include, but is not limited to, listed and unlisted securities of all types, government bonds and treasury bills, mutual funds, commercial papers, certificates of deposit, and other debt instruments,” read the CDBL’s bylaws.

Apart from 637 listed securities, the depository authority presently works as a custodian of some non-listed securities, including open-ended mutual funds, securities of the bourses and the CDBL itself.

It charges companies a fee for keeping shares under its custody.

“The board of the depository authority is likely to fix a small custodian fee for non-listed companies so that they are inspired to avail themselves of the services of the CDBL,” said CDBL’s Managing Director Md. Abdul Mutaleb.

Mr. Mutaleb said they had already discussed the matter with the incumbent chairman and commissioners of the securities regulator, and they applauded the move.

As part of the move, the CDBL will sit with the Institute of Chartered Secretaries of Bangladesh (ICSB) to inspire non-listed companies to seek the services.

As of June 2026, there are 316,150 entities registered with the Registrar of Joint Stock Companies and Firms (RJSC). The CDBL expects many of those companies to show interest in keeping their shares under its custody.

What are the advantages?

In Bangladesh, paper-based share certificates create various practical and security problems, particularly for shares of non-listed companies, ownership of which are not recorded through the electronic depository system.

Physical certificates can be forged, duplicated, stolen, or tampered with. The transfer process for such shares is also lengthy and cumbersome, as companies need to verify certificates, signatures, transfer deeds, and their own shareholder records. Any variation in signature may result in share transfer being rejected.

The share certificates can also be lost, damaged, and mutilated.

Moreover, when a shareholder dies, transferring physical shares to heirs can become complicated because the company involved must verify the original certificates, ownership records, and supporting legal documents.

These matters of concern surrounding paper shares are evident in the operations of the Capital Market Stabilisation Fund (CMSF). The CMSF emerged to ensure distribution of undistributed stocks and cash dividends issued against paper shares of listed enterprises.

A large number of shareholders of listed companies still have paper shares, in which cases dividends remain undistributed -- in the hands of issuer companies.

The shareholders might have forgotten that they had purchased the shares, or that the ownership might have changed, and the new owners are completely unaware of the existence of the assets. Some of those investors might also lack the knowledge that the paper shares had to be converted into electronic form in their own interest.

Dematerialisation improves the security, efficiency, and transparency of share ownerships by replacing vulnerable paper certificates with reliable electronic records, enabling faster transfers and reducing administrative difficulties for both companies and shareholders.

Most importantly, electronic shares kept under the custody of the depository authority will enable companies to secure bank loans easily as the ownership records are clear, transparent and maintained centrally.

The Dhaka Stock Exchange (DSE) has sought expressions of interest (EOIs) from qualified audit firms to update its panel of auditors eligible to audit brokerage houses' financial statements.

In a notice, the bourse asked interested firms to submit their EOIs by 16 August to be considered for enlistment on its auditor panel.

The move follows auditor enlistment guidelines approved by the DSE last year to strengthen oversight of brokerage firms and improve transparency in line with the Securities and Exchange Rules, 2020.

Under the guidelines, brokerage firms must appoint statutory auditors from the DSE-approved panel.

DSE Managing Director Nuzhat Anwar said the bourse plans to update its existing panel of auditors for brokerage firms.

"International best practice involves updating audit panels regularly, as some auditors may join the list while others may be excluded in alignment with the regulator's panel," she said.

She said the DSE was also considering a more compact auditor panel under the Bangladesh Securities and Exchange Commission (BSEC).

"Once this pool of auditors is established, market intermediaries and companies will select auditors from the approved list," she added.

The DSE guidelines require the bourse to seek EOIs from qualified audit firms through its website within the first month of each financial year to update its panel.

Under the guidelines, brokerage firms may appoint an auditor from the panel for up to three consecutive years, subject to approval at their annual general meetings.

Auditors already enlisted with Bangladesh Bank and the BSEC may be included in the DSE panel.

BB and BSEC currently maintain separate auditor panels for banks and non-bank financial institutions, and listed companies, respectively.

The DSE first formed its auditor panel in June 2021 with 61 audit firms, including auditors enlisted by BB and BSEC and six additional firms.

Under the updated guidelines, an auditor will be barred from the panel if it is delisted by BB or BSEC, fails to secure enlistment with the Financial Reporting Council, or is found involved in unethical practices.

An auditor may also be barred if the financial statements of a stockbroker or dealer are found to have been prepared in violation of laws or securities regulations or fail to present a true and fair view of the firm's financial position.

Stocks on the Dhaka bourse fell last week as persistent domestic and geopolitical uncertainties continued to weigh on investor sentiment, triggering broad-based selling despite a recent cut in the central bank's policy rate.

The benchmark DSEX index dropped 34 points over the week to close at 5,860, while the blue-chip DS30 index fell 25 points to settle at 2,191. Of the issues traded, 188 advanced, 179 declined and 22 remained unchanged.

Despite the weak index performance, trading activity picked up. The average daily turnover rose 11.50% week-on-week to Tk1,181 crore, indicating that investors remained active even as risk appetite weakened.

According to EBL Securities, the market started the week on a subdued note as the DSEX struggled to sustain its position above the 5,900-point level. The central bank's first policy rate cut in nearly two years failed to ease prevailing concerns among investors.

Selling pressure intensified amid continued energy shortages and tensions in the Middle East. The uncertainties kept the market largely range-bound despite monetary easing and government measures aimed at addressing the fuel crisis.

Bargain hunters briefly returned to momentum-driven and insurance stocks, helping the market recover some of its earlier losses. However, the rebound lacked enough strength to sustain the broader market.

Renewed buying interest in mutual funds also emerged following the regulator's guidelines on mutual fund conversion. Still, cautious investors remained largely on the sidelines towards the end of the week, with profit-taking and subdued risk appetite outweighing selective buying.

Sector-wise, textile stocks dominated turnover, accounting for 22.1% of total weekly turnover, followed by general insurance at 14% and pharmaceuticals at 11.5%.

Mutual funds posted the highest sectoral gain, rising 4.9%, followed by general insurance and life insurance, which gained 3% and 2.9%, respectively. In contrast, food stocks declined 2.8%, ceramics fell 1.6% and cement dropped 1.3%.

Fareast Finance led the weekly gainers, surging 31.6%, followed by Tung Hai Knitting at 28.6%, GBB Power at 27.7%, International Leasing at 25% and FAS Finance at 20.8%.

S Alam Cold Rolled Steels was the biggest loser, declining 9.3%, followed by Sena Insurance, Apex Spinning, Orion Infusion and Argon Denim, which fell 8.8%, 7.6%, 7.4% and 7%, respectively.

Individual investment in Bangladesh's treasury bills and bonds declined in FY26 for the first time in three years, even as overall investment in government securities rose sharply on the back of increased participation by banks, insurers, and other financial institutions.

According to Bangladesh Bank data, individual holdings of treasury bills and bonds fell by Tk450 crore to Tk7,469 crore at the end of FY26 from Tk7,919 crore a year earlier. Individual investors held just 0.94% of total government securities in FY26.

The decline marks a reversal from the previous two fiscal years. Individual investment stood at only Tk1,102 crore in June 2023, before rising to Tk3,974 crore by June 2024.

Bankers said treasury bills have traditionally attracted more retail investors than treasury bonds because of their shorter maturities, ranging from three months to less than a year.

Retail participation in treasury bills and bonds began to rise from FY24 as yields increased. Higher returns encouraged greater investment from individuals, businesses and, in particular, banks, insurance companies and other financial institutions.

Even so, retail investment in government securities remains modest compared with bank deposits. Bankers attribute this to limited public awareness of treasury bills and bonds, as well as stronger public confidence in banks as a place to keep savings.

Yields on treasury bills and bonds started rising after Bangladesh Bank scrapped the 9% lending rate cap and introduced the SMART-based interest rate regime on 1 July 2023.

They continued climbing and exceeded 12% at one stage in FY25. Bankers said retail investment in government securities had never reached such levels before.

A review of FY25 data shows treasury bill and bond yields hovered close to 12% in some months and surpassed that level in others. During the same period, banks offered deposit rates lower than bills and bonds, depending on the institution. As treasury yields were generally higher than deposit rates, many retail investors shifted funds into government securities.

The trend reversed in FY26 as treasury yields began to ease. As the gap with bank deposit rates narrowed, retail investment in treasury bills declined, while banks offered deposit rates of 9%-11%.

The situation has shifted again this August, with several leading banks cutting deposit rates by 50 to 100 basis points, while some reduced them even further. As a result, deposit rates at those banks have fallen to around 8.5% to 9%.

"Many banks offered deposit rates of 10.5%-11% in FY26, prompting retail customers to move their money back into bank deposits," said Mohammad Ali, managing director of Pubali Bank.

"Retail investors generally seek the highest return over a relatively short period," he said. "Many banks were offering around 10% interest on three-month deposits, whereas treasury bills were not providing comparable returns at the time."

According to Bangladesh Bank data, the yield on 91-day treasury bills averaged around 10.52% in FY26, significantly lower than in the previous two fiscal years, when yields had peaked following the interest rate reforms.

Investment by banks, insurers, financial institutions rises

Despite the decline in retail participation, total investment in treasury bills and bonds climbed in FY26, reaching Tk7.95 lakh crore from Tk6.94 lakh crore a year earlier.

Bankers said the increase was driven primarily by banks, insurance companies and other financial institutions.

They said commercial banks have been allocating more funds to government securities as private sector credit demand remains weak. Bangladesh Bank data show private sector credit growth has remained subdued since August 2024, while growth stayed below 5% for four consecutive months from March to June.

With lending opportunities constrained, banks have increasingly turned to treasury bills and bonds as an alternative investment avenue, bankers added.

The Chittagong Chamber of Commerce and Industry (CCCI) has demanded a 90-day moratorium on gas and electricity bill payments, along with a three-month suspension of loan instalments, for industrial units affected by prolonged utility disruptions.

In separate letters sent today (8 August) to the power, energy and mineral resources minister and the finance minister, the chamber also called for a waiver on penalties for delayed utility payments and a suspension of bank interest on loans taken by affected industries during the period. Both letters were signed by CCCI President Mohammad Amirul Haque

The chamber said sustained disruptions in gas and electricity supply had severely hit production at export-oriented garment, textile and plastic factories, as well as small, medium and large manufacturing units nationwide. Many factories, it said, had either shut down or gone into effective layoff as a result.

In his letter to Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud, CCCI President Mohammad Amirul Haque said almost all factories had suffered substantial financial losses due to the reduced and erratic gas and power supply.

As production fell, exports and sales also declined sharply, or stopped altogether in some cases, making it difficult for businesses to meet expenses such as wages, bank interest, utility bills and daily operating costs, the letter said.

The chamber urged the government to refrain from disconnecting gas and electricity connections to industrial units and to replace the existing month-to-month payment practice with a 90-day, penalty-free grace period.

It further proposed that penalty-free payment facilities remain in place for at least six months, arguing that the measure would give affected businesses breathing space to recover losses and help sustain uninterrupted industrial production.

In a separate letter to Finance and Planning Minister Amir Khasru Mahmud Chowdhury, the chamber sought a three-month suspension of loan instalment payments along with a waiver of bank interest for industries hit by the utility crisis.

It warned that forcing businesses to keep bearing high borrowing costs amid severe production and revenue losses would deepen their financial distress, which could in turn undermine the government's efforts to accelerate industrialisation and foster a business-friendly investment climate.

The chamber added that the situation could send a negative signal to local and foreign investors about the country's business environment.

It therefore urged the finance ministry to instruct relevant authorities to suspend loan instalments for three months and waive bank interest for garment, export-oriented and other industrial establishments affected by the gas and electricity supply disruptions.

Bangladesh Jewellers Association (BAJUS) today (8 August) raised the price of gold by Tk4,374 per bhori, setting the price of 22-carat gold, including VAT, at Tk234,038 per bhori.

BAJUS announced the new rate in a notice issued this morning, saying it will take effect from 10am the same day.

The trade body said the price adjustment was made in view of the rising price of pure gold in the local market.

According to the new rate, 21-carat gold will now cost Tk223,541 per bhori, 18-carat gold Tk191,931 per bhori, and traditional gold Tk156,822 per bhori, all inclusive of VAT.

BAJUS said the new prices will remain effective at all jewellery outlets across the country until further notice, though making charges will vary depending on the design of ornaments.

Since VAT is already included in the selling price of gold and silver ornaments, it cannot be charged separately from customers, the notice added.

Existing BAJUS rules on ornament exchange and purchase, excluding specified VAT, making charges and stone costs will remain unchanged.

The previous price adjustment was made on the morning of 7 August, when BAJUS cut the price of 22-carat gold by Tk3,266 per bhori to Tk229,664, including VAT.

At that time, 21-carat gold was priced at Tk219,342, 18-carat at Tk188,374, and traditional gold at Tk153,848 per bhori, effective from 10am that day.

With Saturday's revision, the price of gold has been adjusted 100 times in the local market so far this year, with 49 increases, 50 decreases, and one VAT-related adjustment.

While gold prices went up, the price of silver remained unchanged in the domestic market. Currently, 22-carat silver, including VAT, is being sold at Tk4,899 per bhori.

Silver of 21-carat, 18-carat and traditional grades are being sold at Tk4,666, Tk4,024 and Tk3,033 per bhori, respectively.

Silver prices have been adjusted 61 times so far this year, with 31 increases and 30 decreases, according to BAJUS.