The Cabinet has approved a set of tax measures for the import of completely new electric vehicles, including buses and trucks.

The decision was taken at a Cabinet meeting - chaired by Prime Minister Tarique Rahman - held in the Cabinet Room of the National Parliament at 6:45pm on Sunday (3 May), according to a statement from the Cabinet Division.

Under the decision, a notification will be issued to maintain the Value Added Tax (VAT) at 15% for electric buses with a minimum of 17 seats, for use in sectors other than student transportation.

At the same time, these imports will be exempted from customs duty (CD), regulatory duty (RD), supplementary duty (SD), advance tax (AT) and advance income tax (AIT), subject to certain conditions.

According to Cabinet Division sources, the National Board of Revenue will soon issue a notification in this regard. The facility will remain in effect till 30 June 2026 - i.e. the end of the current fiscal year of 2025-26.

It follows an earlier decision to allow the duty-free import of electric buses for educational institutions to promote safe and environmentally friendly transportation for students.

A similar notification will also be issued for the import of trucks with a capacity of five tonnes or more, the statement added.

The initiative was proposed by the Internal Resources Division, the statement said.

The United Arab Emirates has left the Organization of Arab Petroleum Exporting Countries (OAPEC), an alliance that does not set production policies for its members, a statement from the intergovernmental organisation showed on Sunday.

The statement follows UAE's surprise announcement on 28 April of its departure from the OPEC and OPEC+ producer groups, to prioritise boosting its own output.

OAPEC was formed in 1968 with the aim of boosting cooperation among Arab oil exporters.

The Asian Development Bank (ADB) will back $70 billion in new energy and digital infrastructure initiatives by 2035, aiming to connect power grids, expand cross-border electricity trade, and improve broadband access across Asia and the Pacific.

The Pan-Asia Power Grid Initiative will connect national and subregional power systems so renewable energy can flow across borders, while the Asia-Pacific Digital Highway will help close the digital infrastructure gap and enable the region to benefit from AI-driven growth, reads a press release.

Under the Pan-Asia Power Grid Initiative, ADB will work with governments, utilities, the private sector, and development partners to mobilise $50 billion by 2035 for cross-border power infrastructure that can unlock renewable energy at scale.

The initiative will focus on transmission and grid integration, including cross-border lines, substations, storage, and grid digitalisation.

It will also support power generation linked to electricity trade, including renewable energy export projects, regional renewable hubs, and hybrid generation-storage facilities.

By 2035, ADB aims to integrate about 20 gigawatts of renewable energy across borders, connect 22,000 circuit-kilometers of transmission lines, improve energy access for 200 million people, create 840,000 jobs, and cut regional power sector emissions by 15%.

ADB expects to finance about half of the $50 billion initiative from its own resources and raise the rest through cofinancing, including from the private sector.

Up to $10 million in technical assistance will support efforts to align regulations, adopt common technical standards, prepare feasibility studies and advance other work needed for major projects.

The Pan-Asia Power Grid Initiative marks a shift from country-to-country energy links to a regional approach to power trade.

It builds on existing subregional cooperation initiatives, including the South Asia Subregional Economic Cooperation program, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation grid interconnection planning, the ASEAN Power Grid, and the Central Asia Regional Economic Cooperation Energy Strategy 2030.

The Asia-Pacific Digital Highway will mobilise $20 billion by 2035 to finance digital corridors, data infrastructure, and AI-ready economies.

Investments will focus on connected infrastructure, including terrestrial and subsea fiber networks, satellite links and regional data centres.

ADB will also provide policy and regulatory support, including on cybersecurity risk management, and invest in skills programs to strengthen digital and AI readiness.

By 2035, the initiative aims to provide first-time broadband access to 200 million people and faster, more reliable digital connectivity for another 450 million people across the region.

It is expected to cut connectivity costs in remote and landlocked areas by about 40% and help create 4 million jobs.

ADB expects to finance $15 billion of the $20 billion initiative from its own resources and raise $5 billion through cofinancing, including from the private sector.

The Centre for AI Innovation and Development will be established in Seoul to support the initiative. Backed by a $20 million contribution from the Government of the Republic of Korea, the centre will promote responsible and inclusive AI adoption and help train about 3 million people in digital and AI-related skills by 2035.

ADB President Masato Kanda said that Energy and digital access will define the region's future.

"These two initiatives build the systems Asia and the Pacific need to grow, compete, and connect. By linking power grids and digital networks across borders, we can lower costs, expand opportunity, and bring reliable power and digital access to hundreds of millions of people."

The telecom regulator has decided to allocate 10 MHz from the highly valuable 700 MHz band to state-owned Teletalk, despite the operator owing around Tk 5,500 crore in spectrum fees and already holding significant unused or underused spectrum.

The decision was taken at a recent Bangladesh Telecommunication Regulatory Commission (BTRC) meeting, according to documents.

The 700 MHz band is considered globally valuable for wide coverage, strong indoor signal, low rollout cost, and suitability for rural-urban networks, including 5G. In Bangladesh, 45 MHz of the band is allocated for mobile use, while 20 MHz remains unused due to a legal dispute.

TIMELINE OF GOVT, REGULATORY ACTIONS

On February 8, just before the national election, the interim government, through the telecom ministry, sent a letter to BTRC instructing it to allocate 10 MHz of spectrum to Teletalk.

A day later, Teletalk applied for the spectrum.

On February 16, the ministry informed the regulator that Teletalk had proposed converting its unpaid dues -- including licence and spectrum fees -- into government equity, now under finance division review.

On April 9, BTRC sought guidance from the ministry on how Teletalk would pay for the allocation. On April 24, the ministry directed the regulator to proceed with the allocation, citing the need to reduce customer inconvenience in line with the government’s election manifesto.

The price was set at Tk 237 crore per MHz, matching the rate paid by Grameenphone for 10 MHz in January as the sole bidder in the auction.

The move means the government may forgo at least Tk 2,000 crore in revenue in the near term.

Only 5 MHz of available spectrum in this band will remain for Banglalink and Robi, both of which have large customer bases. The two operators did not join the latest auction, saying prices were too high.

Spectrum is a limited and valuable resource that countries manage carefully, as it is important for improving telecom services and generating government revenue. In Bangladesh, there have been concerns about spectrum management, particularly regarding Teletalk.

LARGE DUES AND UNUTILISED SPECTRUM

Teletalk holds 55.2 MHz across the 900, 1800, 2100, and 2300 MHz bands and serves around 68 lakh subscribers, giving it about 0.81 MHz per lakh users.

By comparison, Grameenphone has 137.4 MHz for 8.44 crore subscribers (0.16 MHz per lakh), Robi has 124 MHz for 5.74 crore users (0.22 MHz per lakh), and Banglalink has 80 MHz for 3.74 crore users (0.21 MHz per lakh).

Despite higher spectrum per subscriber, Teletalk’s voice and data service quality has been weaker than peers in BTRC quality tests over the years, and it has added only about 1 lakh subscribers in five years.

The operator has also not used 30 MHz in the 2300 MHz band acquired in the 2022 auction, despite rollout obligations, which is considered a breach of spectrum utilisation rules.

Teletalk’s total liabilities include Tk 120 crore in licence fees, Tk 102 crore in revenue sharing, Tk 5,506 crore in spectrum fees, and around Tk 62 crore in other charges.

EXPERT CRITICISM

“Private operators are required to follow strict rules, but public companies often do not face the same obligations, which creates a market imbalance,” said Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue.

He added that large unpaid dues raise doubts about such firms’ ability to survive in a competitive market, noting they often rely on government support rather than efficiency.

TIM Nurul Kabir, a telecom expert, said, “Spectrum is a valuable resource and allocating it to an operator that cannot ensure good service or generate revenue is a poor regulatory decision.”

“The government needs a different approach to revive Teletalk rather than using up valuable resources. Such decisions are also anti-competitive,” he added.

Md Emdad ul Bari, chairman of BTRC, said the allocation was approved on the condition that spectrum charges would be converted into government equity.

He said this would not cause revenue loss, as funds would shift between state entities as equity investments.

Top 11 banks held Tk 52,034 crore of non-performing loans (NPLs), accounting for about 71.67 per cent of total default loans in the CMSME sector, highlighting a high concentration of credit risk in a handful of lenders.

According to Bangladesh Bank data as of December 31, 2025, total loan disbursement by 60 scheduled banks in the cottage, micro, small and medium enterprise (CMSME) sector stood at Tk 3,01,397 crore, representing 16.58 per cent of overall outstanding loans of Tk 18,17,736 crore. Countryspecific content

However, recovery from the sector is better compared with the other industries. Banks’ total NPL ratio stood at 30 per cent in December, 2025.

Default loans in the segment were Tk 72,600 crore, or 24 per cent of total CMSME lending.

CMSME refers to small-scale business activities ranging from cottage industries and micro enterprises to small and medium-sized firms.

The CMSME sector is widely regarded as the backbone of Bangladesh’s economy, contributing around 25 per cent to GDP and supporting millions of entrepreneurs, traders and small manufacturers.

These businesses typically operate with limited capital but play a central role in job creation, rural industrialisation and income distribution.

Despite its importance, the sector remains vulnerable due to limited access to finance, weak financial literacy and dependence on informal networks.

Banks are expected to fill this gap.

Due to poor lending by several state-run banks and weak shariah-based banks, NPL in the sector surged.

Among the major defaulters, Islami Bank Bangladesh PLC alone had Tk 9,761 crore in bad loans against Tk 29,759 crore disbursed, with an NPL ratio of 33 per cent in the CMSME sector.

BASIC Bank showed one of the worst asset qualities, with Tk 6,168 crore in defaults out of Tk 8,839 crore disbursements, translating into a 70 per cent NPL ratio.

State-owned Janata Bank and Sonali Bank reported Tk 5,947 crore and Tk 4,948 crore in default loans respectively, while Agrani Bank had Tk 4,474 crore in NPLs.

Among private banks, First Security Islami Bank recorded an alarming 96 per cent NPL ratio with Tk 4,884 crore in defaults against Tk 5,107 crore in loans in CMSME, while Padma Bank showed a similar trend with a 95 per cent NPL ratio in the CMSME sector.

Other banks with significant exposure include Al-Arafah Islami Bank (Tk 3,891 crore NPL), Social Islami Bank (Tk 3,241 crore), EXIM Bank (Tk 3,058 crore) and United Commercial Bank with Tk 2,449 crore.

In contrast, several banks maintained relatively strong asset quality.

BRAC Bank, the largest CMSME lender with Tk 30,570 crore in disbursement, reported only Tk 670 crore in defaults.

Pubali Bank and City Bank also kept NPLs low at Tk 484 crore and Tk 322 crore respectively.

As a result high NPL, credit flow to small businesses slows down, affecting expansion, employment and production.

Persistent defaults also raise borrowing costs. Banks tend to charge higher interest rates to offset risks, making financing less affordable for genuine entrepreneurs.

In a sector already constrained by limited resources, this can discourage new investments and weaken overall economic momentum.

At Tejturi Bazar in the capital’s Tejgaon area, ridge gourd was selling at Tk 70–80 per kg and tomatoes at Tk 50–60 per kg yesterday, Thursday. Just a week earlier, both vegetables were Tk 10–15 cheaper per kg. The rise in prices has been driven by rainfall and higher transport costs.

Over the past week, prices have also increased for onions, cucumbers, aubergines, chillies and green papaya. Broiler chicken and eggs have also become more expensive. Among grocery items, the prices of sugar, coarse lentils and polao rice have gone up. Although the price of bottled soybean oil has been raised, supply in the market has yet to return to normal.

Traders said rainfall over the past few days has disrupted the regular supply of vegetables. Higher fuel prices have also pushed up transport costs. Together, these factors have driven up vegetable prices. These details emerged from visits yesterday to Mohammadpur Krishi Market, Town Hall Market and Tejturi Bazar, as well as conversations with buyers and sellers.

A market survey found that the prices of at least nine vegetables have increased over the past week. Cucumber recorded the sharpest rise. Hybrid cucumber prices jumped by Tk 30 per kg and were selling yesterday at Tk 80–100 per kg. Locally grown cucumber was priced slightly higher. Prices of aubergine, sponge gourd, snake gourd, ridge gourd and tomatoes also rose by Tk 10–15 per kg. Green papaya and chillies increased by Tk 20, reaching Tk 80–100 per kg.

According to the Department of Agricultural Marketing, compared with last month, cucumber prices have risen by 111 per cent, green papaya by 87 per cent, local tomatoes by 25 per cent and aubergines by 7 per cent.

Onion prices have also gone up by Tk 5 per kg over the past week, with local onions now selling at Tk 40–45 per kg. However, onions had remained unusually cheap for a long period this year, limiting farmers’ profits. The recent price rise may improve their returns.
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What is driving the price hike

Heavy rainfall hit the country last Sunday. After a two-day pause rain resumed on Tuesday night. Although the capital remained dry throughout yesterday, the meteorological office has forecast intermittent rainfall across the country for the next three days.

Aminul Haque, a vegetable trader at Karwan Bazar, told Prothom Alo that fewer vegetable trucks had arrived at the market over the past two days. In many areas, heavy rain has caused waterlogging in vegetable fields, preventing farmers from harvesting produce. This has pushed up prices for some vegetables. He added that buyer numbers were also lower as it was the month-end.

Meanwhile, the government has increased retail prices of all types of fuel in response to rising global oil prices. Diesel prices have risen by Tk 15 per litre, kerosene by Tk 18, octane by Tk 20 and petrol by Tk 19. This has also affected commodity prices.

Imran Master, president of the Bangladesh Kachamal Arot Malik Samity, told Prothom Alo that truck fares for transporting vegetables from Dhaka, Chattogram and Sylhet have risen by Tk 5,000–7,000 since fuel prices increased. Combined with lower supply caused by rain over the past three days, this has pushed vegetable prices higher.

Traders said rainfall over the past few days has disrupted the regular supply of vegetables. Higher fuel prices have also pushed up transport costs. Together, these factors have driven up vegetable prices.

Broiler chicken and eggs remain expensive

Farm eggs were selling yesterday at Tk 120–130 per dozen. Prices have remained at this level for more than two weeks. Earlier, eggs sold for Tk 100–110 per dozen. Higher transport costs have also contributed to the rise in egg prices. There is also some supply shortage, according to Mohammad Amanat Ullah, former president of the Tejgaon Egg Traders’ Association.

Broiler chicken prices also remain elevated. Broiler chicken is selling at Tk 190–200 per kg, compared with Tk 150–160 around six weeks ago.

Sonali chicken prices, however, have eased slightly. Yesterday, Sonali chicken was sold at Tk 350–360 per kg in three markets of the capital. Colourbird, or hybrid Sonali chicken, sold at Tk 320–330 per kg. Two weeks ago, Sonali chicken was Tk 30 higher per kg, while prices exceeded Tk 400 after Eid-ul-Fitr.

The price of packaged polao rice has increased by another Tk 15 per kg, taking the new retail price to Tk 190 per kg. Traders, however, are selling it at Tk 180–185, while older stock remains available at Tk 165–170. Loose polao rice is priced at Tk 150–160 per kg.

Two weeks ago, loose sugar prices rose by Tk 5 per kg to Tk 105–110, which remained stable there yesterday. Coarse lentils have also increased by Tk 5, now selling at Tk 90–95 per kg.

Soybean oil supply still disrupted

On Wednesday, the government increased prices of bottled and loose soybean oil by Tk 4 per litre. The price of one litre of bottled soybean oil was raised from Tk 195 to Tk 199, while loose soybean oil rose from Tk 176 to Tk 180. As a result, the maximum retail price of a five-litre bottle now stands at Tk 975.

The market has been facing a shortage of bottled soybean oil for nearly three months. During this period, companies had been demanding a price increase, citing rising global edible oil prices, while supply of bottled soybean oil remained low. Although the government had resisted the move for some time, the Ministry of Commerce approved the price hike on Wednesday.

However, a market visit one day after the increase showed that the supply shortage remains unchanged. Humayun Kabir, a grocer at Mohammadpur Krishi Market, said the supply of bottled soybean oil could improve within the next two to three days following the price increase. Dealers of three edible oil companies had informed them of this, he added.

Bangladesh received $3.12 billion in remittances in April, a 13.5% increase from the same month a year earlier, according to data released by Bangladesh Bank today (3 May).

In April last year, expatriates sent $2.75 billion in remittances.

However, inflows retreated from March's record high of $3.75 billion, with bankers attributing the surge largely to a seasonal spike in transfers ahead of Ramadan and Eid-ul-Fitr.

Despite the monthly decline, remittances have remained above the $3 billion mark for five consecutive months. Bankers see this as a positive sign for the economy, pointing to greater use of formal channels and stronger earnings by migrant workers.

In the current fiscal year 2025-26, remittances have maintained robust growth, helping to bolster foreign exchange reserves. Between July and April, total inflows reached $29.33 billion, up 19.5% from $24.54 billion in the same period a year earlier.

Economists say the rising inflows could help ease pressure on the external sector, support exchange rate stability and strengthen overall macroeconomic conditions if the trend holds in the coming months.

They expect remittances to increase further in May, driven by the upcoming Eid-ul-Adha at the end of the month.

Bankers noted that a narrowing gap between exchange rates in the informal market and official banking channels has encouraged expatriates to send money through formal means.

Bangladesh Bank has been purchasing US dollars from commercial banks through auctions, buying more than $4 billion so far in the 2025-26 fiscal year as of early February, in a bid to stabilise the foreign exchange market and build reserves.

The exchange rate has recently hovered between Tk122.75 and Tk122.90, as authorities seek to prevent excessive appreciation of the taka while supporting remittances and export earnings.

Earlier, despite a decline in exports, rising imports and the onset of war, the exchange rate remained stable at Tk122.75 per US dollar.

Foreign exchange reserves currently stand at $35.10 billion, or $30.47 billion under the IMF's BPM6 method.

Following a payment of $1.37 billion to the Asian Clearing Union (ACU) on 9 March, reserves had fallen to $34.10 billion, with the BPM6 measure at $29.38 billion.

Bangladesh's reserves had reached a historic high of more than $48 billion in August 2021.

They later dropped to $20.48 billion under the BPM6 method and $25.92 billion in gross terms by the time of the fall of the Awami League government. During the 18-month tenure of the interim government, reserves have increased by $10 billion.

OPEC+ agreed on ‌Sunday a modest oil output hike for June, an increase that will remain largely on paper as long as the Iran war continues to disrupt Gulf oil supplies through the Strait of Hormuz.

Seven OPEC+ countries will raise oil output targets by 188,000 barrels per day in June, the third consecutive ​monthly increase, OPEC+ said in a statement after an online meeting. The increase is the same as that agreed ​for May minus the share of the United Arab Emirates, which on May 1.

The ⁠move is designed to show the group is ready to raise supplies once the war stops and signals that OPEC+ is ​pressing on with a business-as-usual approach despite the departure of the UAE from OPEC+, OPEC+ sources and analysts said.

"OPEC+ is sending a ​two-layer message to the market: continuity despite the UAE's exit, and control despite limited physical impact," said Jorge Leon, an analyst at Rystad and former OPEC official.

"While output is increasing on paper, the real impact on physical supply remains very limited given the Strait of Hormuz constraints. This is ​less about adding barrels and more about signaling that OPEC+ still calls the shots."

Top OPEC+ producer Saudi Arabia's quota will rise ​to 10.291 million bpd in June under the agreement, far above actual production. The kingdom reported actual production of 7.76 million bpd to ‌OPEC in ⁠March.

The seven members who met on Sunday were Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. With the UAE leaving, OPEC+ includes 21 members including Iran. But in recent years only the seven nations plus the UAE have been involved in monthly production decisions.

HIKE REMAINS LARGELY SYMBOLIC UNTIL HORMUZ RE-OPENS

The Iran war, which began on February 28, and the resulting closure of the ​Hormuz strait have throttled exports from ​OPEC+ members Saudi Arabia, ⁠Iraq and Kuwait, as well as from the UAE. Before the conflict, these producers were the only countries in the group able to raise production.

Even when shipping through the Strait of Hormuz ​reopens, it will take several weeks if not months for flows to normalise, oil executives from ​the Gulf and ⁠global oil traders have said.

The supply disruption has propelled oil prices to a four-year high above $125 per barrel as analysts begin to predict widespread jet fuel shortages in one to two months and a spike in global inflation.

Crude oil output from all OPEC+ members ⁠averaged 35.06 ​million bpd in March, down 7.70 million bpd from February, OPEC said in ​a report last month, with Iraq and Saudi Arabia making the biggest cuts due to constrained exports.

The seven OPEC+ members will meet again on June 7, ​the statement said.

Sri Lanka raised fuel prices by nearly 4% today (3 May), further fuelling inflation, which more than doubled last month due to the Middle East war.

Since March, Sri Lanka has raised fuel prices by more than 35%, while gas and electricity rates have also increased by a similar amount.

The island has also rationed fuel following supply disruptions.

Today, the state-owned Ceylon Petroleum Corporation increased the price of kerosene -- used by agricultural machinery -- to 265 rupees ($0.85) a litre, up 10 rupees.

Petrol rose 12 rupees to 410 rupees ($1.32). Diesel was up 10 rupees to 392 rupees.

Higher energy prices pushed inflation to more than double, reaching 5.4% in April, according to official data.

Fuel and electricity tariffs drove up transport costs as well as food prices, the Department of Census and Statistics said.

The island has been slowly emerging from the 2022 economic meltdown, when it ran out of foreign exchange reserves to pay for essential imports such as food, fuel and medicines.

However, it was hit hard in November by a cyclone that killed at least 643 people and affected more than 10% of the island's 22 million population.

The storm caused an estimated $4.1 billion in direct physical damage to buildings and agriculture, according to the World Bank.

The country has been stabilising its fragile economy with the help of a $2.9 billion IMF bailout agreed in early 2023, but high energy prices have seriously challenged recovery efforts.

United Commercial Bank (UCB) secured a whopping 198 per cent year-on-year increase in consolidated profit to Tk 238 million in 2025 as it reaped handsome returns from investment income.
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Investment earnings, including income from Treasuries, subordinated bonds, other private sector bonds, and investments, more than doubled to Tk 15.2 billion in 2025, according to the company's latest financial statement.

However, net interest income declined due to a sharp rise in interest expenses in a high-rate environment.

Deposits surged 23 per cent year-on-year to a historic Tk 683.9 billion, more than double the sectoral average growth.

UCB added nearly 678,000 new accounts during the year, including a large number of savings and current accounts, strengthening its retail base, which now accounts for 59 per cent of total deposits.

Agent banking also contributed steadily, with higher average deposits per outlet.

Stronger deposit inflows improved liquidity, bringing down the advance-deposit ratio to 83 per cent from over 91 per cent a year earlier.

Excess liquidity was channelled into low-risk government securities, pushing such investments up by 69 per cent year-on-year in 2025 to more than Tk 148 billion. Total assets expanded by 14.5 per cent to more than Tk 884 billion.

Loan growth remained measured at 8 per cent, reflecting a cautious approach focused on asset quality.

While the classified loan ratio stood at 15.5 per cent, the company's management indicated ongoing efforts to reduce stressed assets.

UCB made notable progress in digital transformation. Around 65 per cent of total transactions were processed through digital channels in 2025.

The bank's credit rating remained 'AA' in the long term with a negative outlook, reflecting ongoing pressure from capital and provisioning requirements.

No dividend has been declared for 2025 due to restrictions linked to provisioning shortfall.

Overall, UCB ended the year on a stronger footing, with improved liquidity, expanding digital operations, and steady earnings growth despite a challenging interest rate environment.

Advanced Chemical Industries (ACI) PLC is set to further diversify its business portfolio by entering the stationery market through a joint venture with the Chinese industry leader, Deli Group.

In a regulatory filing on Thursday, the local conglomerate informed that its board of directors approved the formation of a new company titled "Deli ACI Bangladesh Limited" in a meeting held on 29 April. The joint-venture entity will have an authorised capital of Tk100 crore and an initial paid-up capital of Tk27 crore.

ACI PLC will hold a 50% stake in the new venture, with the partnership remaining subject to the approval of the relevant regulatory authorities.

The collaboration aims to combine Deli's international expertise in stationery manufacturing with ACI's extensive local market knowledge and its massive nationwide distribution network.

The company stated that the venture will introduce a wide range of stationery solutions for students, professionals, and creative users, focusing on functionality, durability, and contemporary design while meeting both global standards and local demand.

Founded in 1981, Deli Group is a prominent Chinese stationery manufacturer. As of October 2018, it was recognised as the largest stationery manufacturer in Asia. The group operates several global sub-brands, including Deli Tools, Deli Plus, Deli Genius, Agnite, Nusign, and Dmast, focusing on office and school supplies.

This move marks ACI's fifth major international partnership. At present, the conglomerate operates four successful joint-venture companies: pladis ACI Bangladesh Limited (with the UK's pladis), ACI Godrej Agrovet Private Limited (with India's Godrej), ACI CO-RO Bangladesh Limited (with Denmark's CO-RO), and Colgate-Palmolive ACI Bangladesh Private Limited (with the US-based Colgate-Palmolive).

A total of 197 listed companies in Bangladesh's stock market have failed to comply with the requirement of appointing at least one woman independent director in their boards, according to the Bangladesh Securities and Exchange Commission (BSEC).

Out of 360 listed firms, 163 companies (around 45%) have complied with the directive over the past one and a half years. However, another 66 companies have not responded to the regulator's directive at all.

Among the remaining companies, 131 firms have requested additional time from the Bangladesh Securities and Exchange Commission (BSEC) to comply with the requirement.

BSEC has instructed the non-compliant companies to complete the appointment of women independent directors by 30 June, 2026, in line with the Corporate Governance Code, 2018. The commission has also warned that legal action will be taken against companies that fail to meet the requirement within the deadline.

The instruction was reiterated in a meeting held with company secretaries of non-compliant listed firms. The meeting emphasised strict enforcement of the rule and urged companies to take immediate steps.

According to the amended gazette issued on 29 April, 2024, every listed company is required to appoint at least one woman independent director to ensure better governance and board diversity. Initially, companies were given one year to comply, which was later extended to December 2025. However, as several firms still failed to meet the requirement, the deadline has now been pushed further to June 30, 2026.

BSEC has urged companies to select qualified female professionals from diverse backgrounds for the role. Suggested categories include business leaders, corporate professionals, members of business associations, university teachers, government officials (serving or retired), professionals with relevant degrees, and lawyers from the High Court Division.

BSEC officials stated that increasing women's participation in corporate boards is essential for strengthening corporate governance. They believe it will improve transparency, accountability, and diversity in decision-making processes within listed companies.

At the same time, some market stakeholders argue that a shortage of experienced female professionals in certain sectors is creating challenges for companies. Many firms, especially in manufacturing industries, still operate under traditionally male-dominated board structures, making the transition slower.

However, experts counter that qualified female professionals are widely available in banking, insurance, academia, legal practice, and public administration. They argue that lack of initiative, rather than shortage of talent, is the main reason behind the delay.

BSEC Commissioner Farzana Lalarukh had earlier noted that many companies are still not complying with the mandatory requirement, indicating weak corporate governance practices. She also pointed out issues such as irregularities in appointing company secretaries and the dominance of family-controlled boards, which often limits the effectiveness of independent directors.

She further mentioned that social and family barriers also discourage women from taking leadership roles in corporate boards. The commission is working to develop a stronger pool of qualified women directors and is also considering possible flexibility in appointment policies if needed.

According to BSEC officials, some companies have not prioritised compliance, while using the excuse of not finding suitable candidates.

Industry observers note that ensuring women representation at the board level is not just a compliance requirement but a key part of effective corporate governance. It can improve risk management, ethical standards, and long-term strategic decision-making.

BSEC has already indicated that after 30 June, strict enforcement measures will be taken against non-compliant companies. These may include warnings, monetary penalties, and other administrative actions under securities laws.

Company secretaries attending the meeting were instructed to complete the appointment process within the deadline and formally report compliance to the commission.

Bangladesh's merchandise exports showed signs of a strong turnaround in April, snapping eight months of subdued performance with a sharp 32.92% year-on-year growth.

According to data released by the Export Promotion Bureau (EPB) today (3 May), the recovery was driven largely by a rebound in garment shipments and improving buyer confidence following the national elections.

Export earnings rose to $4.01 billion in April, up from $3.02 billion in the same month last year. On a month-on-month basis, shipments also increased by 15.20% from $3.48 billion in March.

The April performance marks one of the strongest monthly gains in recent times, suggesting that export orders – particularly in key markets – are beginning to recover after a prolonged slowdown.

However, the broader picture remains mixed.

In the first 10 months of the current fiscal year (July-April), total export earnings stood at $39.40 billion, down 2.02% from $40.21 billion in the same period a year earlier. This indicates that while recent gains are significant, they have yet to fully offset earlier declines.

Exporters attributed the surge to a combination of a low base effect from last April and renewed buyer confidence following the elections.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), attributed the increase to two primary drivers.

"First, last year's Eid-ul-Fitr fell on 31 March, with holidays extending through 6 April, which significantly curtailed exports during that period. Compared to that low base, this year's full month of uninterrupted operations naturally resulted in much higher figures," he told TBS.

He further noted that many international buyers had taken a "wait-and-see" approach ahead of the national elections in February. "Following a credible election, buyer confidence has stabilised, positively impacting April's earnings," Mahmud said.

According to the BGMEA president, while the data shows a massive spike, organic export growth for April sat closer to 8-10%. He cautioned that May is unlikely to replicate this performance due to the upcoming Eid-ul-Azha holidays but expressed optimism for a rebound in June, provided geopolitical tensions in the Middle East subside.

Garment sector drives recovery

The ready-made garment (RMG) sector, the backbone of the country's export economy, once again led the recovery.

RMG exports rose 31.21% year-on-year to $31.72 billion during the July-April period, accounting for the bulk of export earnings. In April alone, garment shipments climbed to $3.14 billion from $2.39 billion a year earlier, reflecting a strong pickup in orders.

Despite this robust performance, the sector's cumulative earnings remain slightly below the previous year's $32.64 billion.

Fazle Shamim Ehsan, senior vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), also attributed the surge to a post-election boost in buyer confidence and seasonal demand.

He noted that lower order volumes in previous months had depleted buyer inventories, while April and May are traditionally peak periods for winter garment shipments, both of which fuelled the April boost.

However, Ehsan cautioned that growth in May could be dampened by Eid-ul-Azha holidays, and that a slowdown in new orders may affect momentum from June onward, depending largely on geopolitical developments in the Middle East.

However, BKMEA President Mohammad Hatem said the recent spike largely reflects deferred shipments from March rather than a surge in fresh orders.

He explained that March exports dipped because factories closed for 10 days during Eid-ul-Fitr, causing production backlogs that were finally cleared in April.

"To our knowledge, factories have not seen unusually high additional orders or a sudden influx of new buyers," Hatem said.

He warned that exports could face renewed pressure later this month as another holiday period threatens to disrupt production schedules again. "To understand the true export trend, we must wait until July. While temporary increases may persist through June due to shipment adjustments, the actual picture will only become clear then."

Uneven recovery beyond garments

Beyond garments, however, the export earnings remain uneven.

Non-RMG sectors, including primary commodities and several manufacturing segments, have yet to show a comparable recovery, dragging down overall export growth. EPB data suggests that while some categories posted modest gains in April, their contribution remains limited and volatile.

Market-wise, the recovery appears broad-based.

Exports to major destinations such as the United States and the United Kingdom recorded strong year-on-year growth, while all of Bangladesh's top 20 export markets posted positive gains in April. This indicates a gradual normalisation of demand across key regions after months of contraction.

Still, a trade economist cautions against reading too much into a single month's performance.

"The April numbers are encouraging, but the key question is whether this momentum can be sustained," said Dr Mohammad Abdur Razzaque, chairman of RAPID, a private think tank. "Sustaining this pace of growth will be challenging."

Razzaque, also a trade economist, noted that the strong April performance may partly reflect a low base effect, as export earnings in April last year were relatively weak.

CAPM BDBL Mutual Fund 01, a closed-end mutual fund, has returned to profitability in the first nine months of the 2025-26 fiscal year, recovering from a big loss during the same period last year.

According to the unaudited financial statements presented at a trustee meeting yesterday, the organisation posted a net profit of Tk3.43 crore for the July-March period, though it had incurred a heavy loss in the corresponding period of the previous fiscal year.

The fund's earnings per unit (EPU) stood at Tk0.69 for the first nine months of FY26, a sharp recovery compared to a loss per unit of Tk0.83 a year ago.

The performance in the third quarter (January-March) also showed a positive trend as it reported a net profit of Tk1.47 crore, yielding an EPU of Tk0.29. This marks an improvement from the January-March quarter of the previous year, when the fund suffered a net loss of Tk3.17 crore and a loss per unit of Tk0.63.

As of March 31 this year, the total Net Asset Value (NAV) of the fund stood at Tk55.62 crore on a cost-price basis and Tk41.85 crore on a market-price basis.

The NAV per unit at cost price was recorded at Tk11.10, while its per unit at market price stood at Tk8.35, against a face value of Tk10 per unit.

The fund is managed by CAPM Company Limited, while the Investment Corporation of Bangladesh acts as its trustee and custodian.

Oil prices held around four-year highs Thursday while stocks fell after Donald Trump warned the US blockade of Iranian ports could last months as peace talks remained stalled.

While Tehran submitted a fresh proposal this week to reopen the crucial Strait of Hormuz, the US president reportedly did not believe it was not negotiating in good faith.

The Wall Street Journal said he had told national security officials to prepare for a long blockade to compel the Islamic republic to give up its nuclear programme.

At a meeting of oil executives Tuesday, he discussed efforts "to alleviate global oil markets and steps we could take to continue the current blockade for months if needed and minimise impact on American consumers", a White House official said on condition of anonymity.

Meanwhile, Trump told Axios: "The blockade is somewhat more effective than the bombing. They are choking like a stuffed pig. And it is going to be worse for them. They can't have a nuclear weapon."

He added that the naval action would not end until he had secured a deal with Tehran to address its nuclear programme.

In a post on his Truth Social platform, Trump said: "Iran can't get their act together. They don't know how to sign a nonnuclear deal. They better get smart soon!"

He posted an illustration of himself holding an assault rifle alongside the caption "NO MORE MR. NICE GUY!"

The prospect of the strait -- through which a fifth of world oil and gas passes -- being closed for months more sent crude surging to the highest level since 2022 after Russia invaded Ukraine.

Brent for June delivery, which hit a peak of $122.53 Wednesday, was sitting around $120 in Asian trade, while West Texas Intermediate was around $108.

Analysts said traders were beginning to shift to the view that the crisis will not be as short as initially hoped.

Tech's AI rally

Stock markets also struggled, with Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Manila and Jakarta all down. There were gains in Singapore, Wellington and Taipei.

The dollar, seen as a safe haven during the crisis, rose against its peers.

However, equity traders remain relatively upbeat thanks to a revival of the AI trade, which has helped push Seoul's Kospi index to multiple record highs.

The country's Samsung Electronics reported a 750 percent surge in operating profit to a record high on Thursday, thanks to strong sales of chips crucial for artificial intelligence, while it also forecast healthy demand in the next three months.

That came after Microsoft, Meta and Google-parent Alphabet posted forecast-busting earnings.

US stock futures rose.

SPI Asset Management's Stephen Innes warned that the positive mood on stock markets could change.

"History tells us that this widening divide between stocks, oil, and rates can only stretch so far before the physical shock bleeds into the real economy," he wrote.

"Expensive energy is not abstract. It moves quietly through the system, from the pump to logistics to margins, eventually surfacing in the data that central banks respond to after the fact."

Investors were also assessing the outlook for the Federal Reserve's policy actions after four members of its decision-making body dissented on a vote, the most since 1992.

While it voted to hold interest rates owing to fears of a spike in inflation caused by surging energy costs, three "did not support inclusion of an easing bias in the statement at this time."

A fourth voting member, Trump-appointee Stephen Miran, had sought a quarter-point cut.

The meeting was the last with Jerome Powell as Fed boss, with Kevin Warsh -- the president's pick -- to take over next month.

Trump spent much of his second term blasting Powell for not cutting borrowing costs quickly enough.

Key figures at 0300 GMT

West Texas Intermediate: UP 1.9 percent at $108.92 a barrel

Brent North Sea Crude: UP 2.9 percent at $121.48 a barrel

Tokyo - Nikkei 225: DOWN 1.0 percent at 59,304.62 (break)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 25,763.07

Shanghai - Composite: DOWN 0.1 percent at 4,104.67

Euro/dollar: DOWN at $1.1668 from $1.1695 on Wednesday

Pound/dollar: DOWN at $1.3476 from $1.3489

Dollar/yen: UP at 160.34 yen from 160.23 yen

Euro/pound: DOWN at 86.58 pence from 86.71 pence

New York - Dow: DOWN 0.6 percent at 48,861.81 (close)

London - FTSE 100: DOWN 1.2 percent at 10,213.11 (close)

Bangladesh's banking sector is facing mounting pressure in the capital market as at least 10 more listed banks are set to be downgraded to the Dhaka Stock Exchange's (DSE) 'Z' category, commonly known as junk stocks, after failing to declare dividends for two consecutive years.

Sources at the DSE said the affected banks include AB Bank, Al-Arafah Islami Bank, IFIC Bank, Mercantile Bank, NRB Bank, NRBC Bank, ONE Bank, Premier Bank, Rupali Bank and United Commercial Bank. If implemented, this will mark the first time these lenders fall into the lowest trading category.

A senior official of the Dhaka Stock Exchange (DSE) said the banks will be downgraded to the 'Z' category from today, the first trading session of the week.

The development follows a similar move earlier this week, when Islami Bank Bangladesh, Standard Islami Bank and SBAC Bank were downgraded after failing to reward shareholders for two consecutive years.

Market sources said the primary reason behind the sector-wide dividend drought is a large provision shortfall against classified loans and investments. Under Bangladesh Bank regulations, lenders with provision deficits are barred from declaring dividends.

To remain compliant with regulatory requirements, several banks have reportedly taken deferral facilities from the central bank, effectively postponing financial obligations while remaining unable to distribute profits.

Financial data for 2025 reflects significant stress in the sector. AB Bank reported a consolidated loss of Tk 3,889 crore alongside a provision shortfall of Tk 16,874 crore.

IFIC Bank posted a loss of Tk 2,560 crore with a shortfall of Tk 18,557 crore.

Even banks that managed marginal profits remain under pressure. United Commercial Bank reported a profit of Tk 23.25 crore, while ONE Bank posted Tk 29.84 crore, both facing provision gaps exceeding Tk 5,000 crore and Tk 1,700 crore, respectively.

Al-Arafah Islami Bank reported a consolidated profit of Tk 85 crore against a provision shortfall of Tk 4,998 crore. Mercantile Bank posted a profit of Tk 121 crore with a shortfall of Tk 2,161 crore.

NRB Bank earned Tk 13.81 crore profit with a Tk 180 crore shortfall, while NRBC Bank reported Tk 13.25 crore profit against a Tk 1,006 crore gap.

Premier Bank incurred a loss of Tk 993 crore with a Tk 6,089 crore provision shortfall, while Standard Islami Bank reported a profit of Tk 80.34 crore against a Tk 5,904 crore shortfall.

Rupali Bank posted a profit of Tk 23.25 crore but faced a Tk 14,014 crore provision gap.

Islami Bank Bangladesh reported the highest provision shortfall at Tk 84,615 crore, despite posting a profit of Tk 136 crore in 2025.

Market experts said the expected downgrade signals deteriorating fundamentals in the banking sector, raising concerns over governance, asset quality and risk management.

Z-category stocks are widely considered high-risk due to persistent compliance failures and weak financial health. These shares are subject to stricter trading rules, including a T+3 settlement cycle instead of T+2, cash-only transactions and restrictions on margin loans, significantly reducing liquidity.

Currently, 36 banks are listed on the country's stock exchanges. With 10 more banks set to join the five already in the junk category, a total of 15 banks, around 42% of listed banking stocks will be in the 'Z' category.

This does not include five other banks, Social Islami Bank, Exim Bank, Global Islami Bank, First Security Islami Bank and Union Bank, whose shares remain suspended due to merger-related processes with Sommilito Islami Bank, though they are yet to be formally delisted.

Analysts attribute the growing crisis to a surge in non-performing loans, many of which were allegedly disbursed without adequate due diligence in previous years.

Following regulatory tightening in 2024, scrutiny has intensified, exposing deeper weaknesses in loan portfolios across several banks.

A senior market analyst said that while stricter regulatory measures are necessary to restore discipline in the sector, general shareholders are bearing the cost of governance failures and deteriorating asset quality, as dividend flows continue to shrink.

Bangladesh has stayed off the latest United States intellectual property (IP) rights watch lists, but Washington has still urged Dhaka to strengthen enforcement to prevent unfair trade practices.

In its annual Special 301 Report released on Thursday, the Office of the United States Trade Representative (USTR) identified 26 trading partners for intellectual property protection and enforcement concerns.

It grouped them into three categories -- Priority Foreign Country, Priority Watch List and Watch List.

In this year’s report, Vietnam has been designated a Priority Foreign Country, a rare and severe classification that can trigger a trade investigation. The USTR said Vietnam has failed to address long-standing concerns over intellectual property protection and enforcement.

The designation is reserved for countries with the most serious IP-related practices that have a significant impact on US industries and are not making meaningful progress in negotiations or reforms.

The report said Vietnam had shown a persistent failure to resolve long-standing concerns. The United States first raised the issue in 2020 through a proposed IP Work Plan, followed by a revised proposal in 2023.

The USTR report added that Vietnam has made little progress in later bilateral engagement, including talks linked to an Agreement on Reciprocal, Fair, and Balanced Trade. Vietnam’s actions or inactions are causing significant damage to industries reliant on intellectual property in the US and other markets.

This year, the USTR placed six countries on its Priority Watch List. Those are Chile, China, India, Indonesia, Russia and Venezuela.

It said it would seek to engage intensively with these partners over the coming year.

A further 19 trading partners have been placed on the Watch List. Those are Algeria, Argentina, Barbados, Belarus, Bolivia, Brazil, Canada, Colombia, Ecuador, Egypt, the European Union, Guatemala, Mexico, Pakistan, Paraguay, Peru, Thailand, Trinidad and Tobago and Türkiye.

Argentina and Mexico have been moved from the Priority Watch List to the Watch List, reflecting improvements in intellectual property policy. Bulgaria has been removed from the list, while the European Union has been added.

Regarding Bangladesh, the USTR pointed to commitments made under a recently signed Agreement on Reciprocal Trade. This includes broad commitments on market access, economic and national security, and trade standards, including intellectual property.

Apart from Bangladesh, the United States has so far completed such agreements with Argentina, Cambodia, Ecuador, El Salvador, Guatemala, Indonesia, Malaysia and Taiwan.

These agreements, the USTR said, contain commitments aimed at strengthening intellectual property protection and enforcement against piracy and counterfeiting.

Citing a study by the Organisation for Economic Co-operation and Development (OECD) and the European Union Intellectual Property Office (EUIPO), released in May 2025, the USTR report said global trade in counterfeit and pirated goods reached $467 billion in 2021, equal to 2.3 percent of global imports.

USTR said Bangladesh was among the top five source economies for counterfeit clothing globally.

In fiscal 2025, China and Hong Kong together accounted for more than 87 percent of the value of counterfeit and pirated goods seized by US Customs and Border Protection, measured by manufacturers’ suggested retail price.

The report also highlighted ongoing US concerns over the EU’s aggressive geographical indication policies.

It said that the EU’s rules on geographical indications unfairly block American exporters from selling goods under familiar names or trademarks. To counter this, the US is pressing its case in trade talks and global forums such as the Asia-Pacific Economic Cooperation, World Intellectual Property Organization and the World Trade Organization.

It is also negotiating directly with individual countries, including Bangladesh, Brazil, Canada, China, Mexico and others, to ensure American producers can keep access to foreign markets.

The USTR said the Agreement on Reciprocal Trade signatories included provisions aimed at protecting US market access for cheese and meat producers using common names. It said these agreements also include commitments on transparency and fairness in geographical indication protections.

Delays in trademark registration, the report added, remain a major obstacle to protecting intellectual property rights.

Stakeholders identified Bangladesh, Iraq and South Africa as countries with severe delays in processing applications.

Rice supply is expected to fall this year as farmers cut planting acreage across Asia because of fertiliser shortages and soaring fuel costs from the Iran war, with an emerging El Nino also set to squeeze output of the world's most consumed staple.

Rice is central to global food security, and even modest supply disruptions can ripple through countries, lifting prices and straining household budgets, particularly among price-sensitive consumers in Asia and Africa. The UN Food and Agriculture Organization in April forecast rice output would expand by 2% to a record high in 2025/26.

The effects of the Iran war are impacting farmers in top exporters Thailand and Vietnam as well as the import-reliant Philippines and Indonesia, growers and traders said. The war has cut fuel and fertiliser flows through the Strait of Hormuz, a key chokepoint that connects the Gulf to global markets.

Southeast Asia's mainly smallholder farmers also face mounting stress as the El Nino weather phenomenon is set to usher in hotter, drier conditions for the region in the second half of the year.

"Farmers have already started planting rice in some countries and are using fewer inputs because prices have gone up," said Maximo Torero, chief economist at the UN FAO. "We are going to see a tighter global supply situation in the second half of the year and early next year."

In 2008, export curbs by key suppliers more than doubled prices to about $1,000 a metric ton, triggering unrest in several countries. More recently, supply tightness in 2022 to 2023, exacerbated by India's export restrictions, lifted prices and prompted panic buying.

Supply-chain disruption

Rice shipments are already facing supply-chain bottlenecks.

"Logistics have become a nightmare, especially in Asia as there is shortage of polypropylene bags, limited truck availability to move rice to ports and shipping itself has been disrupted," said a Singapore-based trader at a top global rice merchant, who asked to remain unidentified as they are not authorised to speak to media.

While fertiliser shortages and dryness are already curbing yields of smaller crops being harvested in Southeast Asia, the next crop will likely face a bigger reduction.

India, Thailand and the Philippines plant their main crops in June and July, while Vietnam and Indonesia are now sowing their second-season crops.

Most Asian producers grow two or three rice crops a year.

Farmers cut planting

Sripai Kaew-Eam, a 60-year-old farmer in Thailand's Chai Nat province about 151 km (94 miles) north of Bangkok, said high fertiliser and fuel prices have pushed production costs to about 6,000 baht ($183.99) per rai (0.4 acre), from around 4,500 to 5,000 baht for the previous crop, while the price she receives for the unhusked rice she harvests is about 6,200 baht per metric ton.

Fertiliser prices have risen to 1,000 to 1,200 baht per bag, from 850 baht, forcing her to cut her use by half.

"Fertiliser prices are high, fuel prices are high," she said.

The Philippines, the world's biggest rice importer, faces a similar situation.

"Some farmers are now saying they may not plant or will reduce fertiliser use, which would inevitably cut production," said Arze Glipo, executive director of the Integrated Rural Development Foundation.

The country's output could fall by as much as 6 million tons from its typical 19 million to 20 million.

"That would leave the Philippines in a precarious position, as imports are also uncertain due to export restrictions, making it extremely difficult to cover any production shortfall," Glipo said.

In Indonesia, fertiliser supply is not a constraint but the El Nino is expected to curb output.

Indonesia's statistics bureau estimates the rice harvest area in the March to May period will shrink by 10.6% to 3.85 million hectares (9.5 million acres), while unhusked rice production will drop 11.12% to 20.68 million tons.

Despite the supply worries, the world has ample rice inventories following years of bumper output, with India, the world's biggest exporter, holding a record 42 million tons or about one-fifth of global stockpiles, according to US Department of Agriculture data, cushioning any drop in global production.

Most rice grade prices are currently steady but will likely rise even if the Hormuz situation were resolved immediately, the FAO's Torero said.

Opening the strait soon would avoid a major supply issue but "if we don't reopen this in the next two to three weeks, the situation is going to get pretty serious," he said.

Many of the worst-performing companies have outpaced market leaders in price gains in the secondary market over the past four months, as investors focus on short-term returns amid limited investment options.
FE

Apart from retailers, many institutional investors have not fixed any long-term investment strategy amid the liquidity crisis.

Ahead of the national election held on February 12, investors had been uncertain about the future market direction. After the election, investors' expectations regarding market stability faded as the US and Israel jointly struck Iran and waged war at the end of February.

As a result, the market outlook has become elusive, and investors remain fixated on speculative stocks in the hope of short-term gains.

This is the backdrop in which Dominage Steel Building Systems, despite a significantly negative P/E (price-to-earnings) ratio and one of its factories being shut, has continued its rally on the stock exchanges.

Dominage Steel registered a 131 per cent market price appreciation as of Thursday since January 1, while well-performing multinational company Linde BD experienced a 14.5 per cent decline during the period.

The board of Dominage Steel Building Systems last week disseminated price-sensitive information regarding the sale of their ownership stakes to Akij Resources and two individuals.

Some market operators said insiders, who were aware of the company's intention to sell ownership to the Akij conglomerate, might have played a role in the company's rally.

The rally of Dominage Steel does not reflect any fundamental strength.

Of the other non-performing companies that outperformed market leaders on the bourses, BBS Cables experienced a 30.3 per cent appreciation over the last four months.

The company distributed no dividends and reported a loss of Tk 856 million in FY25, increased from a loss of Tk 133 million in FY24. It has remained in the red in the last three quarters too.

The unjustified rally of BBS Cables, along with other non-performing companies, indicates that investors are hooked on short-term gains from speculative stocks.

Md. Ashequr Rahman, managing director of Midway Securities, said some groups had influenced the rallies of speculative stocks for short-term gains.

The financial performance of some of the companies that have seen a rally is better than that of other poor performers, but that is insignificant compared to blue-chip stocks that experienced correction.

"The absence of any new IPO is another reason why the secondary market has lost its buoyancy," Mr Rahman added.

The country's capital market has seen no new listings since March 2024.

The latest conflict between Iran and the US-Israel alliance disrupted fuel supply through the blockade of the Strait of Hormuz.

Local manufacturers said their profitability would be seriously affected due to the abrupt rise in production costs induced by fuel price hikes.

Apprehension over profit decline has been reflected in stock movements.

For example, the stock price of Unilever Consumer Care closed at Tk 2,163.6 each on April 6, which fell further to Tk 2,065.80 by Thursday.

Meanwhile, the stock price of ACI fell to Tk 193.80 each share on Thursday, which was Tk 211.6 on April 15.

Islami Bank Bangladesh PLC has posted a consolidated profit of Tk136 crore for the year ended December 2025, but the earnings were overshadowed by a staggering Tk84,615 crore provision shortfall against its classified investments, highlighting continued strain in its balance sheet.

Despite the profit, the bank's financial health remains under pressure, according to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE).

The lender's result was largely supported by a regulatory deferral facility from Bangladesh Bank, which allowed the provision gap to be spread over 20 years under a recovery plan submitted last October.

However, key indicators point to weakening fundamentals. Net operating cash flow dropped by Tk5,107 crore in 2025, while investment recovery slowed. Deposits from banks and financial institutions also declined by Tk9,662 crore, reflecting liquidity pressure.

The bank's earnings trajectory has also remained weak, falling from Tk635 crore in 2023 to Tk108 crore in 2024 before edging up to Tk136 crore in 2025.

At the end of 2025, consolidated earnings per share stood at Tk0.85, while net asset value per share rose slightly to Tk44.52 from Tk44.36 a year earlier.

A major concern, according to banking sources, remains the bank's exposure to S Alam Group, which along with its affiliates reportedly borrowed over Tk73,000 crore almost half of the bank's total investment portfolio.

Although assets worth around Tk20,000 crore linked to the group have been attached, recovery has been slow due to weak auction response.

The bank has also skipped dividend payments for the second consecutive year and has been downgraded to the 'Z' category on the stock exchange for the first time, reflecting heightened financial stress.

Following the disclosure, the bank's share price fell over 4% to Tk33.30.

The AGM has been scheduled for 25 June, with the record date set for 21 May.

Meanwhile, management reshuffles are underway, with Managing Director Md Omar Faruk Khan sent on extended leave and Md Altaf Hossain appointed as acting MD amid ongoing regulatory oversight and restructuring efforts.