Apex Footwear Limited reported robust financial performance in the first half of FY26, with revenue and profit rising sharply, supported by strong domestic demand, higher exports, and improved cost efficiency.

According to the company's unaudited half-yearly financial statements, revenue for July–December rose 14% year-on-year to Tk943 crore. Domestic sales increased 12% to Tk540 crore, while exports jumped 16% to Tk403 crore, reflecting the company's efforts to diversify its international markets and reduce reliance on a limited number of destinations.

The revenue growth translated into a 30% rise in net profit to Tk7.85 crore, with earnings per share at Tk3.99.

Omar Faruque, company secretary of Apex Footwear, told The Business Standard that the strong performance was driven by a combination of higher sales volumes and cost optimisation measures. "A major factor behind the growth was our founder's day sales campaign in September, which offered discounted prices and attracted a large number of customers," he said.

He added that export initiatives targeting new markets also contributed to a healthy increase in overseas earnings. Effective cost-control measures undertaken by management further supported profitability and margin improvement.

Quarterly data show that Apex Footwear has maintained a relatively stable revenue trend over the past five quarters, with seasonal sales campaigns causing some fluctuations. In Q2 (October–December), revenue declined 5% quarter-on-quarter to Tk459 crore from Tk484 crore in Q1.

Faruque explained that unusually high sales between 26 and 28 September during the founder's day campaign made the following quarter appear lower, even though overall demand remained stable.

Profit figures over the past five quarters also show volatility influenced by sales timing and cost factors. In Q2, the company posted a profit of Tk5.35 crore, up from Tk2.49 crore in Q1, reflecting better operational efficiency and margin management.

Following the strong half-year results, investor sentiment improved, and Apex Footwear's share price rose 2.30% to close at Tk182.30 on the Dhaka Stock Exchange on Tuesday.

Shahjibazar Power Company Limited (SPCL) has reported a 99.47% year-on-year consolidated profit growth in the first six months of the current fiscal year compared to the same period of the previous year riding on associate companies' profit.

During this period, the company recorded a consolidated profit of Tk56.81 crore, significantly higher than the Tk28.48 crore reported in the same period last year.

In the July-December period, SPCL's consolidated revenue stood at Tk723.73 crore, which was up from Tk626.67 crore in the previous fiscal year. Of these, Shahjibazar Power generated revenue of Tk245.68 crore and Petromax Refinery achieved revenue of Tk478 crore in this period.

The company's share price closed at Tk49.40, marking a 1.59% decrease on the Dhaka Stock Exchange yesterday. Meanwhile, its earnings per share (EPS) for the period increased to Tk3.04, compared to Tk1.53 a year earlier.

A top official of the company said, seeking anonymity, that the company got significant profit from its two associate companies- Midland East Power and Midland Power Company.

Besides, the company has been able to control general and administrative expenses effectively.

For the October-December quarter of 2025, the company reported consolidated revenue of Tk383 crore, an increase from Tk322 crore in the same quarter last year.

However, its net profit for the quarter rose slightly, from Tk21.18 crore in the previous year to Tk30.46 crore in the current year.

In this quarter, its earnings per share stood at Tk1.63 which was Tk1.13 a year ago.

A senior company official, speaking on condition of anonymity, said the firm posted strong profit mainly due to significant earnings from its two associate companies—Midland East Power and Midland Power Company.

In addition, business performance improved at Shahjibazar Power and Petromax Refinery, which also contributed positively to overall profitability.

The official added that effective control over General and Administrative (G&A) expenses played a key role in strengthening the company's financial position.

As a result of higher income from associates, improved operational performance of key units, and disciplined cost management, the company was able to achieve notable growth in profit during the period.

According the financials statement, Earnings per share (EPS) during the period increased by Tk2.02 per share compared to the half-yearly EPS of the corresponding period.

The plant factor also improved significantly, rising to 85% from only 41% in the comparable period, reflecting higher operational efficiency. As a result of improved operating performance and higher associate income, consolidated EPS rose by Tk1.57 per share compared to the previous period.

Shares of Apex Tannery rose 9.88% on Monday at the Dhaka Stock Exchange (DSE), despite the company reporting a 76% year-on-year increase in second-quarter losses for FY 2025-26.

The tannery firm posted a loss per share (LPS) of Tk 5.80 for Q2 (October–December), up from Tk 3.29 in the same period last fiscal year. In H1 (July–December), LPS rose to Tk 10.78 from Tk 7.99 in FY25. The company attributed the net profit decline to lower sales revenue, weakened gross margins, and higher financial expenses due to increased borrowings.

DSE data showed Apex Tannery opened at Tk 68.50 and closed at Tk 74.50 on Monday, with a total trading value of Tk 1.66 crore.

Separately, the company's board approved a land revaluation report conducted by G. Kibria & Co., Chartered Accountants. Based on unaudited Q2 financials as of 31 December 2025, the land's net book value was Tk 16.95 crore, while its current market value was Tk 344.63 crore, resulting in a revaluation surplus of Tk 327.68 crore.

A South Korean company, Park Handbag BD Ltd, is expected to establish a large-scale bag, luggage, and high-end garment manufacturing facility at the Bepza Economic Zone in Chattogram’s Mirsharai.

The proposed investment amounts to $80 million, according to an agreement signed between the Bangladesh Export Processing Zones Authority (Bepza) and the company at the Bepza Complex in Dhaka, a statement from Bepza said.

Md Tanvir Hossain, executive director for investment promotion at Bepza, and Beomjoon Park, chairman of Park Handbag BD Ltd, signed the deal, with Major General Mohammad Moazzem Hossain, Bepza executive chairman, also present.

Under the agreement, Park Handbag will develop the project on 57,600 square metres of land to manufacture handbags, backpacks, luggage, and a wide range of knit and woven garments, including polo shirts, T-shirts, padded and down jackets, trousers, sportswear, and undergarments.

Once fully operational, the project is expected to create employment opportunities for 10,960 Bangladeshi nationals. The products will be exported to major global markets, including the USA, UK, European Union, South America, and Asia.

Private sector bank credit growth declined again in December 2025, remaining below 7% for the seventh consecutive month.

At the end of December 2025, private sector credit growth stood at 6.20%. In November, growth was 6.58%, while in December 2024 it was 7.28%.

Economists and bankers say the primary reason for the slowdown in bank lending is stagnation in new investment. With fewer new investments, imports of capital machinery have fallen.

Persistently high inflation has also weighed on investment decisions, discouraging businesses from undertaking new projects. Political instability is cited as the main factor behind this reluctance to invest.

Tight monetary policy strains banking sector, slows deposit and credit growth: Planning Commission report

Professor Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD), said: "Businesses are not making new investments. If new investment does not increase, bank credit will not expand either. Given the current situation, businesses will refrain from investing. This condition is likely to persist until the next election. Lower investment will worsen unemployment, which in turn will slow GDP growth."

He added: "As long as inflation remains high, it will continue to exert pressure on private sector growth."

Mohammad Ali, Managing Director of Pubali Bank Limited, said: "There are no new work orders at the moment because of the prevailing political environment. In such circumstances, it is natural that businesses will not invest. Hopefully, an investment-friendly environment will emerge after the election."

Given the current situation, businesses will refrain from investing. This condition is likely to persist until the next election. Lower investment will worsen unemployment, which in turn will slow GDP growth.
Prof Mustafizur Rahman, distinguished fellow, CPD

A deputy managing director of a private bank told The Business Standard that many businesses have shut down following the fall of the Awami League government, while those still operating are unable to function at full capacity. Several factories belonging to large groups such as Nassa, Beximco and Gazi have closed. As a result, these firms are no longer borrowing from banks. When factories were operational, they imported capital machinery, but even the firms still running have reduced production by 60–70%.

According to Bangladesh Bank data, settlement of liabilities for capital machinery imports declined by more than 16% during July–November.

The last time private sector credit growth reached double digits was in July 2024, at 10.13%. From August that year, growth began to decline steadily, falling to 6.23% in October 2025—described by experts as the lowest level on record.

Bangladesh Bank had projected private sector credit growth of 7.2% by December 2025. The actual figure therefore fell short of the central bank's monetary policy target, indicating that businesses are borrowing significantly less than anticipated.

Controlling inflation remains the biggest challenge

Bangladesh Bank has indicated that it will reduce the policy rate once inflation comes under control. In December, headline inflation rose to 8.49%. The central bank governor has said the policy rate would be lowered if inflation falls into the 7% range. The policy rate currently stands at 10%, keeping average bank lending rates between 11% and 12%. Business groups have repeatedly urged Bangladesh Bank to rein in inflation.

A senior official at a private bank told The Business Standard that unless inflation is controlled, private sector credit growth will not increase. "Businesses are unwilling to operate with high interest rates, as this raises their cost of doing business. Controlling inflation is therefore Bangladesh Bank's biggest challenge," he said.

Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said: "Doing business with high interest rates has become extremely difficult. Many factories have shut down due to a lack of orders, and others are not expanding operations. As a result, many business groups have reduced their reliance on bank borrowing."

A senior executive of the TK Group said borrowing from banks has significantly increased the cost of doing business due to high interest rates.

Banks turn to government securities for income

With private sector credit demand weakening, banks have increased investment in treasury bills and bonds. A senior official at a private bank said that banks are gravitating towards these safer instruments amid weak loan demand. At the same time, the government is borrowing heavily from banks through treasury bills and bonds, including an additional Tk10,000 crore outside the regular borrowing calendar during the October–December quarter.

Limited opportunities for private investment have allowed banks to earn nearly 11% interest on government securities, which are effectively risk-free. For many conventional banks, a substantial share of income now comes from this segment.

Although there were concerns at the beginning of 2025 over rising deposit rates, high inflation, weak loan demand and political uncertainty, the reality has unfolded differently.

Profits at private banks – particularly stronger institutions – have increased not through loan expansion but through large earnings from government securities. This has become a new lifeline for the banking sector and is significantly reshaping banks' balance sheets.

Despite falling prices in the global market, prices of major essential commodities in Bangladesh have risen ahead of Ramadan. Prices of some items, however – including chickpeas and dates – have fallen. This information has emerged from a review report prepared by the commerce ministry.

The report compared price changes over the past month and over one year in both local and international markets for rice, flour, edible oil, sugar, lentils, onions, garlic, chickpeas and dates. Demand for these products rises comparatively in the Bangladeshi market during Ramadan.

This was presented at a meeting of the Task Force Committee on the review of commodity prices and market conditions, held at the commerce ministry yesterday.

According to the report, over the past month the prices of coarse rice varieties such as Swarna and China have remained unchanged in the domestic market. However, over the past year, prices of this high-demand rice have increased by 8.57%, currently selling at Tk54 to Tk60 per kg. In contrast, prices of the same rice in the international market have fallen by 18.65% over the past year to $423 per tonne, although they rose by 4.19% over the past month.

The price of bottled soybean oil per litre in Bangladesh has increased by 1.57% over the past month and by 12.83% year-on-year. Meanwhile, the price of crude soybean oil in the international market has declined by 3.03% over the past month, though it has risen by 9.27% over the year. Over the same one-year period, palm oil prices have increased slightly in Bangladesh, while falling by 11.82% in the international market.

Prices of medium- and small-grain lentils have increased in Bangladesh over the past year, while prices of coarse lentils have declined. In the international market, however, lentil prices have dropped sharply – by 30.92% in Australia and 9.09% in India. Bangladeshi traders mainly import lentils from these two markets.

Over the past month, refined sugar prices in the international market have risen by 5%, while they increased by 1.20% in the domestic market. Over the past year, prices of sugar have declined by around 15% in both Bangladesh and the international market.

There is some good news regarding onion prices. Over the past month, onion prices in the domestic market have fallen by 18.18%, although they are still 24.14% higher than a year ago. The new onion harvest season has begun in the country, contributing to the recent price decline.

Meanwhile, the report notes that prices of ginger, garlic and chickpeas have fallen more in Bangladesh than in the international market. Demand for all three products rises during Ramadan.

Demand for dates increases significantly in Bangladesh during Ramadan, as fasting people consume dates at iftar. Over the past month, prices of this import-dependent fruit have fallen by 2.67% in the domestic market, selling at Tk180 to Tk550 per kg depending on quality. The report did not include any information on international prices for dates.

Market analysts say that weak market monitoring, trader syndicates, and depreciation of the taka against foreign currencies are the main reasons why prices of many commodities in Bangladesh are not falling despite declines in the international market.

Commenting on the issue, Consumer Association of Bangladesh (CAB) President AHM Safiquzzaman told TBS that due to malpractice by traders, Bangladeshi consumers do not benefit from falling global prices.

"Government monitoring is weak, and even where monitoring exists, the authorities often fail to take action against traders in line with the law. Although traders cite rising dollar prices as an excuse, in reality this has not had much impact, as the dollar rate has remained relatively stable for some time," he said.

This year's Ramadan will be more comfortable than last year: commerce adviser

Following the task force meeting yesterday, Commerce Adviser Sk Bashiruddin told journalists that prices of some commodities would decline in the coming Ramadan. He said imports of essential goods are 40% higher than last year, making this year's Ramadan more comfortable than the previous one.

He said supply, import and production data had been analysed, and the analysis showed that the Ramadan market would be better this year than last year.

He further said that at the task force meeting, traders assured the government that supplies of essential commodities would remain normal during Ramadan. Prices would stay under control, and some commodities would even become cheaper.

Referring again to the 40% increase in imports compared to last year, the adviser said that prices of essentials during Ramadan would remain within people's reach.

Concern over reduced soybean oil supply during Ramadan

Although the commerce adviser expressed optimism that supplies would increase during Ramadan, the report presented at the meeting warned of a possible shortage of edible oil supply this year compared to last year.

The meeting was informed that demand for edible oil during Ramadan is around 3 lakh tonnes. In November and December, a total of 3.66 lakh tonnes of edible oil were imported, including 1.08 lakh tonnes of soybean oil and 2.58 lakh tonnes of palm oil. In the same period of the previous year, imports stood at 3.72 lakh tonnes.

On the other hand, traders opened letters of credit (LCs) for importing a total of 3.92 lakh tonnes of soybean and palm oil in November and December, compared to 4.51 lakh tonnes in the same period of the previous fiscal year.

Ramadan will begin in mid-February. Edible oil imported under LCs opened in November and December will reach the market in February. As fewer LCs have been opened for imports compared to last year, it is feared that market supply will also be lower.

Britain's biggest banks including HSBC and NatWest are set to follow their European rivals and lift their key profit targets when they report annual earnings in the coming weeks, people close to the matter said.

HSBC is expected to raise its return on tangible equity (ROTE) outlook – a key measure of profitability – above current guidance of "mid teens or better," while NatWest is likely to upgrade its guidance for 2027, currently at 15%, to as much as 17%, two people said.

Barclays, which in October said it expected an ROTE of 12% or above in 2026, should also lift its targets, a third source familiar with the lender said.

Analysts have also said they believe Barclays and HSBC can raise their targets by as much as 200 basis points when they set out guidance for the coming years. They report their earnings on 10 February and 25 February, respectively.

In continental Europe, many banks have already lifted their profit goals, signalling confidence higher margins will last for years.

Increased profitability targets show banks expect to keep benefiting from benign interest rate conditions and continued loan and fee income growth, although aiming higher is not without risks and can leave investors disappointed if economies stutter.

Lloyds Banking Group could also lift its targets this year, aiming for ROTE to rise to as much as 18.5% by 2028 from this year's goal of more than 15%, analysts at Jefferies said this month.

The banks all declined to comment.

"UK banks have benefited from earnings resilience lasting longer than initially expected, supported by higher interest rates, robust credit quality and tighter cost control," said Peter Rothwell, head of banking at KPMG UK.

Lloyds and Deutsche Bank report full-year earnings on Thursday, kicking off the European bank reporting season following a bumper set of numbers on Wall Street.

Banks across Europe pushing profits higher

After years of poor profitability and share performance following the financial crisis, European banking stocks have more than doubled since early 2024 and risen 60% in the past year – far outpacing US banks.

Among European rivals, Spanish banks Santander and BBVA have grown income while keeping costs under control, raising expectations for improved targets.

JPMorgan expects BBVA to have delivered an around 20% ROTE in 2025, broadly in line with 2024, with profitability rising to 22% in 2026 and reaching 26% by 2028.

Santander could target a ROTE by 2028 of around 19–20%, up from 16.1% as of September, Barclays analysts said.

Germany's Deutsche Bank in November set a new ROTE target for 2028 of greater than 13%, up from its 2025 target of 10%.

Analysts expect Deutsche to confirm it met the 2025 target, alongside figures that could show its biggest profit since 2007.

Volatile markets and a flurry of corporate deals should also lift investment bank earnings, buoying the likes of Deutsche, Barclays and UBS, after most Wall Street banks reported rising revenues and a bullish outlook.

France's Societe Generale, BNP Paribas and Credit Agricole may buck the trend as higher costs and domestic competition weigh on profits, analysts said.

The benchmark index of the Dhaka Stock Exchange (DSE) bounced back yesterday following three consecutive sessions of losses. Selective buying in key heavyweight stocks helped the market close marginally higher, even as investor sentiment remained cautious.

The DSEX, the broad-based index of the bourse, advanced by 8.4 points or 0.2% to close at 5,081 points, compared to 5,072 points in the previous trading session.

Out of the traded stocks, 116 issues advanced, while 189 declined and 85 remained unchanged.

Market analysts said the modest recovery was driven by bargain hunting in fundamentally strong large-cap stocks, even as investors remained cautious ahead of the national election and upcoming corporate earnings announcements.

According to EBL Securities' daily market review, major index heavyweights including Square Pharmaceuticals, Islami Bank Bangladesh, Beximco Pharmaceuticals, Grameenphone and Walton played a key role in lifting the benchmark index. Gains in these stocks helped offset losses in several other sectors and prevented the market from extending its recent downturn.

EBL Securities noted that the benchmark index edged higher as investors selectively accumulated beaten-down stocks, although overall market sentiment remained cautious. The session witnessed mild volatility, with investors active on both the buying and selling sides throughout the day.

However, buyers eventually gained a slight upper hand, fueled by selective accumulation in large-cap stocks, helping the index close in positive territory.

Despite the index gain, trading activity weakened compared to the previous session. Total turnover on the Dhaka bourse declined by 6.5% to Tk490 crore, indicating that many investors preferred to stay on the sidelines amid prevailing uncertainty.

Most sectors posted mixed performances during the session. Travel sector stocks faced the highest correction, shedding 0.8%, while financial institutions and mutual funds also declined by 0.7% and 0.6% respectively. On the positive side, life insurance emerged as the top gainer with a 3.3% rise, followed by jute, which gained 2.1%, and the telecommunication sector, which advanced 1.0%.

The Bangladesh Bank (BB) will push private firms to the capital market to ease the economy’s dependence on the banking sector and reduce non-performing loans (NPL), said the central bank’s governor, Ahsan H Mansur. He also called attention to improving the bond market as a financing source.

“They [firms] will not be pushed out of the banking sector fully. However, after a certain level of lending, they should not remain in the banking sector,” said Mansur yesterday at an event on bond market development held at the Renaissance Dhaka, organised by the BB and the Bangladesh Securities and Exchange Commission (BSEC).

He said measures will be taken to ensure that no one can exceed a bank’s single borrower limit. If more financing is required beyond this limit, firms can raise funds from the capital market, issue bonds to mobilise funds, or even borrow from abroad. Mansur suggested making it easier and faster to raise funds through bond issuance. Tax incentives may also be provided, he said.

However, work must also be done on the demand side so that when the private sector comes to raise funds, investors are ready to invest. To make the bond market vibrant, the government bonds must first be made attractive in the market. A stable macroeconomic environment is essential to strengthen the bond market, particularly with low inflation and low interest rates, the central bank governor said.

At the same time, regulators must be strict to ensure that no company defaults or delays payment of bond coupons. “Trust is extremely important for the bond market, and it must not be allowed to erode under any circumstances,” he stressed.

The governor said measures will be taken to ensure that no one can exceed a bank’s single borrower limit. If more financing is required beyond this limit, firms can raise funds from the capital market, issue bonds, or even borrow from abroad
If projects can be financed through bonds, it will reduce unnecessary pressure on the private sector. At present, if a project has a lifespan of 10 years, but financing is provided for only five years, it creates “impossible tension” and, in many cases, leads to NPLs, Mansur added.

BSEC Chairman Khondoker Rashed Maqsood said, “As long as entrepreneurs can easily obtain loans from the banking sector, they will not go to raise funds through the capital market or other channels.”

The capital market regulator already has several “colour bonds” in hand, and once approved, these will bring some diversification to the market, he said.

Dhaka Stock Exchange Chairman Mominul Islam said that the real-time gross settlement accommodation needs to be updated so that settlement time for bond transactions can be reduced. He also urged bond auctions to be conducted through the stock exchange to increase investor participation.

Mashrur Arefin, chairman of the Association of Bankers, Bangladesh, said that before pushing the private sector to reduce its dependence on banks, the bond market must be fixed first. Costs must be reduced, and the bond issuance process must be expedited.

He recommended providing capital treatment for proceeds of zero-coupon bonds for banks. To attract investors to the bond market, he also called for the introduction of a yield curve and dynamic valuation that investors can easily understand.

The BB and the BSEC must work together to make the bond market vibrant, said Mahbubur Rahman, president of the International Chamber of Commerce Bangladesh (ICCB). A vibrant bond market would reduce pressure on banks and also provide capital market investors with a new supply of securities, he added.

The government could establish an institution to provide guarantees for bonds, if necessary, with support from the Asian Development Bank, said Mahmood Osman Imam, a professor of Dhaka University. This step would reduce issuance costs for bond issuers. Overall, government support is needed to put the bond market on a solid footing, he added.

The BB and the BSEC have researched to develop the bond market at both the public and private levels in Bangladesh. Based on the findings of the research report, Ejazul Islam, director general of Bangladesh Institute of Bank Management, recommended that a “one-stop” service desk could be established at the central bank for purchasing government bonds, allowing anyone to buy bonds directly, both in person and online.

China said on Monday that a preliminary trade deal with Canada “does not target any third parties” after the United States threatened to impose 100-percent tariffs on Canadian products if the agreements were finalised.

Under the deal, announced this month, Beijing is expected to reduce tariffs on Canadian canola imports and grant Canadians visa-free travel to China.

But over the weekend, the United States -- Canada’s traditional ally -- threatened to impose 100-percent tariffs on Canadian products if the deal were to go ahead, saying it would allow China to “dump goods”.

China’s foreign ministry spokesman Guo Jiakun said on Monday that the trade deal was not aimed at Washington.

“China and Canada have established a new type of strategic partnership... it does not target any third party,” China’s foreign ministry spokesman Guo Jiakun told a regular press conference.

“China advocates that nations should approach state-to-state relations with a win-win rather than zero-sum mindset, and through cooperation rather than confrontation,” he added.

The deal was announced during Canadian Prime Minister Mark Carney’s visit to Beijing this month, as he seeks to distance himself from a volatile United States under President Donald Trump.

Canada and the United States have been caught in a trade war since the Trump administration imposed import duties on its northern neighbour.

On Sunday, Trump wrote on social media that negotiations between Ottawa and Beijing amounted to China “successfully and completely taking over the once Great Country of Canada”.

Following the president’s comments, US Treasury Secretary Scott Bessent told US media that “we can’t let Canada become an opening that the Chinese pour their cheap goods into the US”.

Analysts expect spot gold prices, which hit a record high above $5,000 per ounce on Monday, to climb further toward $6,000 this year ​on mounting global tensions as well as strong central-bank and retail demand.

Gold raced to a peak of $5,092.70 as geopolitical and economic risks rattled markets. ‌The safe-haven metal is up more than 17 percent this year, after soaring 64 percent in 2025.

The London Bullion Market Association's annual precious metals forecast survey shows analysts projecting gold rising as high as $7,150 and averaging $4,742 in 2026.

Goldman Sachs has raised its December 2026 gold price forecast to $5,400 from $4,900.

Independent analyst Ross Norman expects a high of $6,400 this year, with an average of $5,375.

"The only certainty at the moment seems to be uncertainty, and that's playing very much into gold's hands," Norman said.

GEOPOLITICAL TENSIONS

Gold's recent rally has been fuelled by geopolitical tensions, ‌from the US–NATO friction over Greenland and tariff uncertainty to rising doubts over the independence of the US Federal Reserve, among others.

"With the upcoming US ​mid-term elections, political uncertainty may increase further. At the same time, persistent concerns about over-valued equity markets are likely to reinforce portfolio diversification flows into gold," said Philip Newman, a director at Metals Focus.

"After crossing the $5,000/ounce milestone, we expect further upside," he added.

ROBUST CENTRAL BANK PURCHASES

Central-bank gold buying, a key driver of prices in ‍2025, is expected to stay strong this year.

Goldman Sachs forecasts purchases to average 60 metric tons a month as emerging-market central banks continue diversifying reserves into gold.

Poland's central bank, which held 550 tons of gold at end-2025, aims to lift reserves to 700 tons, Governor Adam Glapinski said this month.

These plans reaffirm the view that the key driver behind the spike in gold is ⁠central banks "looking to de-dollarise ... and where else could you go except into gold?" Norman said.

China's central bank extended its gold-buying spree for a 14th month in December.

ETF ‍INFLOWS, RETAIL DEMAND

Inflows into gold-backed ETFs, which store bullion for investors and account for a significant amount of investment demand for the metal, are also underpinning prices as markets expect ‌further US ‌rate cuts this year.

"There's an opportunity cost to holding gold which has no yield. As interest rates decline, so does this opportunity cost. If the Fed continues to lower rates in 2026, demand for gold should rise," said Chris Mancini, co-portfolio manager of the Gabelli Gold Fund.

Gold ETFs saw record inflows in 2025, led by North American funds, according to World Gold Council data, with annual inflows surging to $89 billion. In tonnage terms, inflows totalled 801 metric tons, the highest since their record in ⁠2020.

"There's an opportunity cost to holding gold which has no yield. As interest rates decline, so does this opportunity cost. If the Fed continues to lower rates in 2026, demand for gold should rise," said Chris Mancini, co-portfolio manager of the Gabelli Gold Fund.

Gold ETFs saw record inflows in 2025, led by North American funds, according to World Gold Council data, with annual inflows surging to $89 billion. In tonnage terms, inflows totalled 801 metric tons, the highest since their record in ⁠2020.

"You don't need to analyse a balance sheet, assess credit risk or ‍worry about a country or sovereign risk," he said. "Your only risk with physical gold is the price direction. And as geopolitics and geoeconomics have become more complicated ... that simplicity has become more attractive."

WHAT'S NEXT FOR GOLD?

Analysts say several factors could trigger a correction, including a pullback in US rate-cut expectations, margin calls in equities, and easing concerns about Fed independence.

However, most expect any pullback to ​be short-lived and treated as a buying opportunity.

"A meaningful and sustained decline in gold would require ‍a return to a more stable economic and geopolitical backdrop, which currently appears unlikely," Newman added.

Savings certificates (Sanchayapatras) are being made tradable on bond market, among other measures, to systematically force or encourage corporates through applying push and pull factors to meet their long-term financing needs from outside banks.

This switch from banks to capital market for large-and long-tenure borrowings is planned as the government seeks to make the bond market vibrant and thus relieve the banks of burdens of corporate and industrial financing, according to a disclosure made Monday.

The move is meant not only to help overcome prevailing liquidity mismatch in banks through lessening NPL (non-performing loan) buildups but also ensure comparatively low-cost and long-term funding instruments for the enterprises, according to a joint study titled 'Bond Market Development in Bangladesh: Challenges and Recommendations' rolled out at a meet.

Bangladesh Bank (BB), under instructions from the chief adviser of the post-uprising government for easing mounting pressure on banks, took the initiative and made the study paper in collaboration with Bangladesh Securities and Exchange Commission (BSEC) and Financial Institutions Division (FID).Online newspaper reader

Finance Adviser Dr Salehuddin Ahmed was supposed to be present as chief guest at the seminar sharing the study findings and recommendations but he didn't turn up reportedly on health grounds. BB governor Dr Ahsan H. Mansur chaired the event.

Talking about the supply side in developing bond market, the BB governor said they plan to bring corporate sector under push factor. They will push the corporate entities out of the banking sector, not entirely but partial financing requirement must be met through the bond market.

He said the central bank will soon sit with the corporate bodies having lower bond-market exposure to understand what kinds of supports they need from the regulators to get encouraged into the bond market.

"We will not allow corporate to exceed single-borrower-exposure limit. To meet their funding requirements, they either go for overseas borrowing or look for bond and capital markets. We want to apply such push factors," he told the audience.

At the same time, the central-bank governor said, they need to provide them pull factors through which the corporate entities will be attracted to explore the untapped potential available on the bond market.Banking services comparison

Under the pull factors, according to him, the government might consider steps to cut bond-issuing timeline and costs along with revisiting prevailing tax treatment and other forms of incentives.

Mr. Mansur, who took the central bank leadership soon after the July-August mass uprising in 2024, said private-sector bond market will not be developed through a liquid, strong and vibrant public-sector bond market.

The country has a huge saving-certificate market of around Tk 6.0 trillion. "If we make it tradable on the secondary market so that the investors can sell it at a discounted premium, whatever the market rate prevails at the time, it will increase the bond market size by another Tk 6.0 trillion very quickly. It is easily doable. Just a decision is needed," the governor said.

President of the International Chamber of Commerce (ICC)-Bangladesh Mahbubur Rahman said that the country's capital market suffers a lot for lack of equities and stocks.

"If bond market is developed here, it will be easier for private enterprises to mobilise funds to meet their capital need," he said.

The renowned business leader said the corporate-bond market would also help the banks lessen their NPL burden. "It has a huge potential and all need to work jointly to make it a success."

Director-General of Bangladesh Institute of Bank Management (BIBM) Dr Md Ezazul Islam, one of the two lead authors of the study paper, said the individual ceiling in savings certificate needs to be lifted aligning the rate with the market and making it tradable on the secondary market.

"It will certainly help allow savers to invest in the savings instruments as much as they can and it will make the market more competitive."

Dr Islam prepared the study along with the other when he was leading the monetary policy department of the central bank before his recent joining as DG of BIBM.

Sharing global market scenario, he said the global market size of bonds, stock market and money market was worth $130 billion, $90 billion and $60 billion respectively in the first half of 2025.

But Bangladesh's financial sector remains heavily bank-dependent-around 80 per cent of debt financing in Bangladesh comes from banks.

"The excessive dependence on bank financing is neither good for the health of the banking system nor for the enterprises," he added.

Finance Secretary Dr Md Khairuzzaman Mozumder said credit mismatch emerged as a serious problem hurting the banking sector badly. To ease the pressure on banks, they plan to develop the bond market.

He said they plan to take the national savings certificate into the secondary market soon. "We have already formed a committee comprising officials from BB, FID and BESEC to this effect."

Bangladesh Securities and Exchange Commission Chairman Khondoker Rashed Maqsood said the chief adviser had instructed them to make a plan how the heavily bank-depended economy can be converted to a capital market-dependent economy.

Since then, he said, they had sat with the central bankers several times to find out challenges and ways-out to facilitate the transition.

Bangladesh Bank research director Md. Abdul Wahab, the other lead author of the paper, said successful implementation of the proposed action plan would facilitate the development of a vibrant and robust bond market in the near term that will support sustainable economic growth and strengthening financial stability.Online newspaper reader

Deputy governors of BB Dr Md Habibur Rahman and Nurun Nahar, vice- chairman of PRAN Group Uzma Chowdhury, BSEC commissioner Md. Saifuddin, Association of Bankers Bangladesh (ABB) leader Mashrur Arefin, Dhaka Stock Exchange (DSE) Chairman Mominul Islam and Dhaka University Professor Mahmud Osman Imam, among others, spoke at the seminar.

Trading at the country’s stock markets showed a mixed trend in the first half of the second trading day of the week, with indices falling on the Dhaka Stock Exchange (DSE) while rising on the Chittagong Stock Exchange (CSE).

At the DSE, the market opened on a negative note. The benchmark DSEX index shed 7 points, while the blue-chip DS30 index lost 3 points. The Shariah-based DSES index, however, remained unchanged.

Most shares witnessed price declines, as prices of 195 companies fell against 101 gainers, while 90 issues remained unchanged.

The turnover at the DSE crossed Tk 2.10 billion during the first half of the session.

Meanwhile, the CSE posted gains in early trading. The overall CASPI index rose by 16 points.

The prices of 38 companies advanced against 34 losers, while shares of 21 companies remained unchanged.

During the first half, shares and units worth around Tk 7.0 million were traded on the CSE.

Jamuna Oil Company, a state-owned firm, saw its net profit fall by 18% in the first half of FY 2025-26, hit by unaccrued interest on fixed deposit receipts (FDRs) held in four banks that have merged into Sammilito Islami Bank.

The company reported a profit of Tk216.81 crore and earnings per share (EPS) of Tk19.63, down from Tk 264 crore and EPS Tk23.92 in the same period last year.

In a disclosure to the stock exchanges, Jamuna Oil said the EPS decline was due to interest on bank deposits with Sammilito Islami Bank for the second quarter not being accrued. Interest accrued in the first quarter was also written back, as it is now presumed that it could not be realised.

Despite the slump in FDR income, Jamuna Oil's earnings from treasury bills and bonds partially offset the decline. The company earned Tk297.17 crore from other income primarily interest on T-bills and T-bonds, dividends, and other sources down from Tk380.35 crore in H1 FY25.

Income from FDRs fell 45.44% to Tk188.79 crore from Tk346.01 crore in the previous fiscal. Treasury bills and bonds, a new investment avenue, generated Tk73 crore, which was not recorded in the previous year.

The company's auditor raised concerns over the recoverability of FDRs in six banks, four of which merged into Sammilito Islami Bank, while two remain independent.

Jamuna Oil has total investments of Tk1,541.08 crore across these banks, including FDRs and SND accounts at First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, Bangladesh Commerce Bank, and National Bank.

The auditor noted that Jamuna Oil has realised Tk94.17 crore out of Tk106.71 crore from FDRs, with Tk1.25 crore still due as of 30 June 2025.

Interest of Tk58 crore accrued between the last maturity date and the balance sheet date remains uncertain due to liquidity issues. The company has requested encashment from the banks, but responses have been limited.

In FY25, buoyed by FDR income, Jamuna Oil posted a record profit of Tk441 crore and recommended a 180% cash dividend, which will be considered at its annual general meeting on 31 January.

Today (26 January), Jamuna Oil's shares closed at Tk168.40 each on the Dhaka Stock Exchange, down 1.64% from the previous session.

Gold surged to a record high above $5,000 an ounce on Monday, extending a historic rally as investors piled into the safe-haven asset amid rising geopolitical tensions.

Bullion added 64% to its value in 2025, its biggest annual rise since 1979, driven by a mix of safe-haven demand, bets on US rate cuts, robust central-bank buying, de-dollarisation trends and inflows into exchange-traded funds. It is up 18% so far this year.

Here are some ways to invest in gold:

Spot market

Large buyers and institutional investors usually buy gold from big banks. Prices in the spot market are determined by real-time supply and demand dynamics.

London is the most influential hub for the spot market, with the London Bullion Market Association setting standards for gold trading and providing a framework for the over-the-counter market to facilitate trades among banks, dealers and institutions.

China, India, the Middle East and the US are other major gold-trading centres.

Futures market

Investors can also get exposure to gold via futures exchanges, where people buy or sell a particular commodity at a fixed price on a particular date in the future.

COMEX, part of the New York Mercantile Exchange, is the largest gold futures market in terms of trading volumes.

The Shanghai Futures Exchange, China's leading commodities exchange, also offers gold futures contracts. The Tokyo Commodity Exchange, popularly known as TOCOM, is another big player in the Asian gold market.

Exchange-traded products

Exchange-traded products or exchange-traded funds issue securities backed by physical metal, allowing people to gain exposure to gold prices without taking delivery of the metal itself.

Global gold ETFs saw record inflows in 2025, led by North American funds, according to World Gold Council data. Annual inflows surged to $89 billion.

Bars and coins

Retail consumers can buy gold from traders selling bars and coins in shops or online. Gold bars and coins are both effective means of investing in physical gold.

Investors in top consumers China and India have moved more towards purchasing bars and coins as opposed to jewellery amid surging spot prices.

What drives the market?

Investor interest and market sentiment

Rising interest from investment funds in recent years has been a major factor behind bullion's price moves, with sentiment driven by market trends, news and global events fuelling speculative buying or selling of gold.

Foreign exchange rates

Gold is a popular hedge against currency market volatility. It has traditionally moved in the opposite direction to the US dollar, since weakness in the US currency makes dollar-priced gold cheaper for holders of other currencies and vice versa.

Monetary policy and political tensions

The precious metal is widely considered a safe haven during times of uncertainty.

US President Donald Trump's trade tariffs have over the last year sparked a global trade war, rattling currency markets.

Trump's capture of Venezuelan leader Nicolas Maduro and aggressive statements on acquiring Greenland have added to volatility since the start of 2026.

Global central banks' policy decisions also influence gold's trajectory. Lower interest rates reduce the opportunity cost of holding gold, since it pays no interest.

Central bank gold reserves

Central banks hold gold in their reserves, and demand from this sector has been robust in recent years because of macroeconomic and political uncertainty.

The World Gold Council said in its annual survey in June that more central banks plan to add to their gold reserves within a year despite high prices.

Net central bank purchases in November totalled 45 metric tons, World Gold Council data showed, pushing the figure for the first 11 months of 2025 to 297 tons as emerging market central banks continued their significant gold buying.

China kept adding gold to its reserves, with its holdings totalling 74.15 million troy ounces at the end of December from 74.12 million in the previous month as it extended its buying spree for the 14th month in a row.

Poland's central bank, which held 550 tons of gold at end-2025, aims to lift reserves to 700 tons, Governor Adam Glapinski said this month.

The Bangladesh Textile Mills Association (BTMA) has called for urgent government intervention to stop what it described as unfair advantages in yarn imports that are severely affecting local spinning mills.

The demand was raised at a meeting on Monday (26 January) between BTMA President Showkat Aziz Russell and senior officials of domestic textile mills, particularly spinning mill representatives.

The association later shared details of the meeting in a press release issued last night (26 January).

According to mill representatives, domestic spinning mills are facing heavy losses due to an unusually high volume of yarn imports under duty-free bonded warehouse facilities. They alleged that these imports benefit from incentives and subsidies provided by neighbouring countries' governments, creating unequal competition that is pushing local industries towards an existential crisis.

Speaking at the meeting, BTMA President Showkat Aziz Russell said that, in line with previously announced programmes to protect domestic industries, the decision to keep all textile mills closed from 1 February would remain in effect.

He warned that without the immediate withdrawal of existing unfair advantages in yarn imports and the adoption of effective policy measures, the country's textile sector would face severe consequences.

He also noted that yarn imports from India have increased by approximately 137% over the past year compared to the previous year. He said that around 50 spinning mills have already shut down, while at least another 50 are at risk of closure.

As a result, nearly 200,000 workers and employees have lost their jobs, signalling a serious social and economic crisis, according to him.

During the meeting, senior mill officials urged the government to take swift and effective steps to exclude 10-30 count yarn from bonded warehouse facilities, in line with recommendations from the Ministry of Commerce.

Expressing hope for a positive outcome, the BTMA president said the government would take prompt and effective policy decisions to safeguard domestic industries, investments and the large workforce employed in the textile sector.

The European Union has raised concerns over Bangladesh's non-tariff barriers in trade, with a significant focus on customs procedures, Commerce Secretary Mahbubur Rahman said today (26 Janaury).

Speaking at an event in Agargaon, Dhaka, marking International Customs Day, he revealed that a recent meeting with an EU delegation highlighted 15 key issues relating to customs processes and daily operations, urging simplification.

"Our import tariffs are among the highest in the world, which they accept legally. But non-tariff barriers are not acceptable," Mahbubur Rahman said.

He added that excessive protectionist measures, such as mandatory 100% luggage scanning at airports, create long queues without meaningful benefits.

Zaidi Sattar, chairman of the Policy Research Institute (PRI), stressed the need for urgent trade policy reforms, noting that reforms delayed over the past 15 years must be implemented within the next three to five years to prevent Bangladesh from lagging behind competitors.

He highlighted that import duties currently raise $11 billion annually and should be reduced to 1% of GDP to promote trade and job creation.

Secretary Mahbubur Rahman told The Business Standard, "Currently, import tax collection is 2.5% of GDP. But it should not exceed 1%."

Mubinul Kabir, member of the Customs Policy wing, said programmes like the Authorised Economic Operator (AEO) and pre-arrival processing remain underutilised. "We are considering relaxing the conditions for AEO," he added.

NBR Chairman Abdur Rahman Khan acknowledged complaints regarding inconsistent service delivery. "The same product, imported from the same country on the same day, should not be assessed differently by two officers," he said.

Regarding the duty-free import of raw materials under bond licenses, he said, "Many argue that without the bond facility, the country's industrialisation would have mirrored China's progress."

Nine companies get AEO recognition

At the event, nine companies were recognised as Authorised Economic Operators. They are: Hatil Complex Limited, Asia Paints (Bangladesh) Limited, BRB Cables Industries Limited, Footsteps Bangladesh Limited, Omera Cylinder Limited, Jihan Footwear, Shoeniverse Footwear, Cutting Edge Industries Limited, and MBM Garments Limited.

AEO-certified firms can move consignments directly from ports to their warehouses without physical inspection, with documents verified in advance. Customs officers may inspect the warehouse if needed.

The facility, often called the "VIP pass of trade," is granted to companies with strong compliance records. Currently, fewer than 20 companies hold AEO recognition in Bangladesh.

Seventeen NBR officers received the Certificate of Merit from the World Customs Organisation for their service contributions.

Palli Karma-Sahayak Foundation (PKSF) has signed five separate credit guarantee agreements with Jamuna Bank, Commercial Bank of Ceylon, Trust Bank, Mercantile Bank and NCC Bank under its Credit Enhancement Scheme (CES).

Under the agreements, the banks will be able to extend a total of Tk1,000 crore in guaranteed loans to PKSF's partner organisations, according to a press release.

The signing ceremony took place today (26 January) at PKSF Bhaban-1 in Agargaon, Dhaka.

PKSF Managing Director Md Fazlul Kader signed the agreements on behalf of the foundation. The agreements were signed on behalf of the banks by Ahsan Zaman Chowdhury, managing director and CEO of Trust Bank PLC; Haily Algewatte, deputy CEO and chief operating officer of Commercial Bank of Ceylon PLC; Mohammad Jahangir Alam, deputy managing director of Jamuna Bank PLC; Md Habibur Rahman, deputy managing director of NCC Bank PLC; and Md Zakir Hossain, deputy managing director of Mercantile Bank PLC.

PKSF Deputy Managing Directors Md Mashiar Rahman, Fazle Rabbi Sadeque Ahmed and Md Hasan Khaled were also present at the event.

Speaking on the occasion, Md Fazlul Kader said PKSF is working to transform low-income people into entrepreneurs and that the Credit Enhancement Scheme has been introduced to formally engage commercial banks in this process.

Under the scheme, PKSF's partner organisations will receive loans from banks and disburse them to eligible clients at the field level, while PKSF will provide guarantees to mitigate credit risk at the bank level, he added.

PKSF is implementing the CES with financial and technical support from the Asian Development Bank (ADB) to promote inclusive economic growth through the expansion and productivity enhancement of the microenterprise sector.

Through the scheme, PKSF shares lending risks by providing guarantees to banks and financial institutions that extend loans to its partner organisations.

Earlier, on 24 May 2025, PKSF launched the country's first Credit Enhancement Scheme and on the same day signed credit guarantee agreements worth Tk3,150 crore with BRAC Bank, City Bank, Prime Bank, Mutual Trust Bank, Southeast Bank and The UAE-Bangladesh Investment Company Limited (UBICO).

The price of safe-haven asset gold surpassed $5,000 on Sunday (25 January), hitting a record amid rising global uncertainty and turmoil set off by US President Donald Trump's policies.

Gold reached $5,026 an ounce in trading after sister metal silver blasted through $102 an ounce for the first time on Friday.

While turbulence over Trump's ambitions for Greenland and pressure on the Federal Reserve have provided the most recent support for gold, the precious metal has for two years achieved all-time peaks on factors ranging from a weak dollar, strong central bank demand and elevated inflation.

Gold stood at just above $2,000 an ounce in January 2024.

The precious metal's price has also risen due to the wars in Ukraine and Gaza, as well as Washington's intervention in Venezuela.

"Over the past few days, gold's price action has been textbook safe-haven behaviour," said Fawad Razaqzada, market analyst at Forex.com.

"Underlying demand for protection is still there. Confidence in the dollar and bonds looks a bit shaky."

'Slow-burning support'

Trump backed away last week from threatened tariffs on several European nations because of their opposition to Washington seizing the mineral-rich Arctic island of Greenland.

But his comments set off a bruising transatlantic crisis, reviving trade war fears and uncertainty about US investment.

The dollar plunged to a four-month low against the euro while gold prices surged.

"Gold pressed on to a fresh record high as geopolitical tensions remain elevated," Neil Wilson, investor strategist at Saxo UK, noted Friday.

"The extreme tail risk of a US military intervention in Greenland was never being priced by markets. Worries about an escalatory trade war were."

Danish Prime Minister Mette Frederiksen visited Greenland's capital on Friday for talks with the territory's leader.

Investors were additionally preparing for this week's Federal Reserve policy meeting, which comes after US prosecutors took aim at its boss Jerome Powell, raising fears over the bank's independence.

Trump has made no secret of his disdain for Powell, claiming there is "no inflation" and repeatedly questioning the Fed chair's competence and integrity.

The heads of major central banks threw their support behind the Fed and Powell last week, after US prosecutors issued subpoenas against him that threaten a criminal indictment.

"Add in lingering doubts around central bank independence and you are left with a slow-burning support base for gold," said independent analyst Stephen Innes.

Gold demand by value surged 44% year-on-year to a record $146 billion in the third quarter of last year, the World Gold Council has said in its latest report.

There has been strong demand for gold also via Exchange-Traded Funds on stock markets. ETFs allow investment without trading on the gold futures market.

With gold hitting a new record in the global market, prices of the precious metal have reached a fresh high of Tk 262,440 per bhori, breaking all previous records.

The new rate will come into effect tomorrow, according to an announcement by the Bangladesh Jewellers Association (Bajus) today.

The price is 2.04 percent, or Tk 5,248, higher per bhori (11.664 grammes) than Tk 257,191, at which gold was traded in the country.

The association said prices of pure gold and silver have increased in the market.

The announcement came hours after gold prices marched to record levels above $5,100 in the international market today, as investors sought a safe haven amid global political tensions.

Silver and platinum also climbed to all-time highs.

Spot gold rose 2 percent to $5,079.66 an ounce by 8:15 a.m. ET (1315 GMT), after hitting a record $5,110.50. US gold futures for February delivery gained 2 percent to $5,078.50.

Prices were also supported by weakness in the US dollar, which lingered near a multi-month low, making dollar-priced assets more affordable for holders of other currencies.

For precious metals this year, the major drivers are going to be "Trump and Trump," said Adrian Ash, head of research at online marketplace BullionVault.

"A wave of new first-time investing is driving this move in precious metals. It is being led by private investors across Asia and Europe, rushing to build their personal holdings of gold and silver," he added.

In Dhaka, this is the third consecutive day of a rise in gold prices.