Stock markets mostly struggled on Tuesday while gold and silver prices rebounded in fresh volatile trading.

Oil prices rose while Wall Street indices retreated, shrugging off passage of legislation to end a four-day partial US government shutdown.

The price of gold climbed more than seven percent but later traded near $4,950 per ounce. Last week it reached a record-high close to $5,600 before tumbling.

Gold is "heading for its biggest daily gain since 2008, as prices rebounded sharply following the steepest two-day decline in decades," said analyst Axel Rudolph at trading platform IG.

Silver surged more than 15 percent to $86 on Tuesday, still well short of the record near $120 it hit last week.

"A sense of calm descended after the precious metal auctions, opening the door for investors to buy on the dip," noted Richard Hunter, head of markets at Interactive Investor.

Gold and silver prices have been on a tear in recent months, benefitting from being seen as a safe haven investments during times of geopolitical tensions.

Wall Street's main equity markets wobbled, with the Dow striking a fresh all-time high before turning lower.

The Nasdaq Composite finished down 1.4 percent after spending almost the entire session in negative territory.

"The rotation away from tech began at the beginning of the year and it's kind of building on itself here," said Briefing.com analyst Patrick O'Hare.

"The tech sector had such strong outperformance last year and for several years. There are so much good news that has been priced into the stocks that there's really like zero room for error."

US President Donald Trump signed into law a congressional spending bill to fund government agencies while buying more time for lawmakers to negotiate over spending for the administration's controversial immigration crackdown.

Negotiations had broken down following the killing of two US citizens by federal agents in Minneapolis, the Minnesota city which has become the flashpoint for the Republican president's policies.

In Europe, early gains failed to hold. Frankfurt and London ended the day lower while Paris finished flat.

The euro and the pound rose against the dollar ahead of interest-rate decisions due Thursday from the European Central Bank and Bank of England.

Investors were also keeping an eye on earnings from major companies this week, with particular attention on the tech sector and planned investment in artificial intelligence.

Shares in Palantir, a data and analytics firm that has extensive ties with the US government, jumped 6.8 percent, while robotics firm Teradyne surged 13.4 percent.

Shares in Disney dipped 0.2 percent after it named Josh D'Amaro, head of its theme parks division, to replace Bob Iger as chief executive when he steps down next month.

Asian equities trading was more positive, with sentiment boosted by a rally on Wall Street on Monday following forecast-beating manufacturing data.

That fed through to Asia, where Tokyo closed with a gain of 3.9 percent on Tuesday.

Bangladesh risks losing its trade competitiveness unless it urgently reduces high logistics costs, closes policy implementation gaps, and accelerates private-sector-led infrastructure development, experts warned at a focus group discussion organised by the American Chamber of Commerce in Bangladesh (AmCham) yesterday (3 February).

Opening the discussion, Syed Ershad Ahmed, president of AmCham Bangladesh, said logistics remains the backbone of supply chains and economic activity but continues to lag behind regional peers. Drawing on over three decades of experience, he noted that despite gradual progress, Bangladesh's logistics sector is still poorly understood domestically and insufficiently prepared for rapid global shifts driven by artificial intelligence, automation, decarbonisation, geopolitics, and supply-chain resilience.

He stressed the need to bridge knowledge and capacity gaps to support growing trade and investment needs.

M Masrur Reaz, chairman of Policy Exchange Bangladesh, highlighted the scale of the challenge, saying logistics efficiency is central to export growth through lower costs, faster delivery, and productivity gains. He pointed out that Bangladesh's heavy reliance on the Dhaka–Chattogram corridor, which handles nearly 70% of national trade, poses a structural risk. Disruptions such as the recent Chattogram port labour strike demonstrate the fragility of the system.

Reaz also flagged gaps in implementing the National Logistics Policy, including government monopolies in rail and air cargo, weak inter-ministerial coordination, and the absence of a central logistics authority.

He called for greater private and foreign investment, particularly in cold chains and rail logistics, increased automation, and expert-led infrastructure planning, citing projects such as the Matarbari Deep Sea Port, Bay Container Terminal, and the third terminal at Hazrat Shahjalal International Airport as key opportunities.

Focusing on air logistics, Mahbubul Anam, managing director of CF Global, said costs at Dhaka airport are 20–25% higher than road transport, underscoring the need for stronger public-private coordination, supportive policies, and adequate equipment. He warned that growing e-commerce demand for express logistics will strain existing capacity without urgent reforms and highlighted the absence of direct cargo flights to the US despite clearance facilities for the European Union.

From a development partner perspective, Nusrat Nahid Babi, senior transport specialist for South Asia at the World Bank, said the logistics reform momentum built since 2022 must be reaffirmed by the new government through clear priorities and high-level consensus.

She outlined a phased reform agenda covering policy simplification, multimodal connectivity, skills development, digitalisation, and investment, with immediate emphasis on operationalising the National Logistics Policy 2025 and establishing a logistics division under the Prime Minister's Office.

Md Moinul Huq, Citi country officer of Citibank N.A. Bangladesh, urged customs authorities to implement the Customs Act 2023 by clearly defining electronic documentation and payment procedures. He also criticised the continued reliance on letters of credit, calling for more flexible settlement mechanisms to improve trade competitiveness.

The discussion concluded with a strong call to move from policy intent to execution. Participants urged faster ratification of the National Logistics Policy 2025, structured private-sector engagement, investment in multimodal logistics hubs, and accelerated rollout of digital trade initiatives to enhance efficiency, resilience, and job creation.

European Union ambassadors on Wednesday (4 February) approved details of a 90 billion euro loan for Ukraine, an initiative agreed by EU leaders in December to meet most of Kyiv's financial needs in 2026-2027 and keep up its fight against Russia's invasion.

The ambassadors reached the agreement at a closed-door meeting in Brussels, diplomats said.

The text of the agreement was not immediately available but the Council of the EU said in a statement that two thirds of the funds would be spent on military aid and one third on general budget support.

On military aid, the deal stipulates that Kyiv should use the loan primarily to buy weapons from Ukraine or the EU but could buy from other countries if certain conditions are met.

"Defence products should in principle only be procured from companies in the EU, Ukraine, or EEA-EFTA countries. Should Ukraine's military needs require the urgent delivery of a defence product which happens not to be available in the EU, Ukraine or an EEA-EFTA country, a set of targeted derogations would apply," the Council said.

The agreement also requires approval by the European Parliament, which diplomats said they hoped would come soon to allow the Commission to start borrowing on the markets and make a first payment to Ukraine in early April.

EU leaders agreed in December to fund the loan through EU borrowing rather than back a plan to use Russian assets frozen in the bloc.

The interim government’s net borrowing from the banking system rose almost fivefold in the first seven months of the current fiscal year 2025-26, as spending raced ahead of sluggish revenue collection.

The government borrowed Tk 48,819 crore from banks as of January 25, compared with Tk 10,558 crore by January 23 last year, according to Bangladesh Bank (BB) provisional data.

The amount already accounts for nearly half of the full year’s borrowing target of Tk 104,000 crore.

The sharp rise reflects a widening gap between expenditure and income. Government spending has climbed steadily, while revenue collection has failed to keep pace.

The National Board of Revenue posted a 14 percent year-on-year growth in collection in the first six months of FY26, mobilising Tk 185,229 crore. Even so, receipts fell short of the target by about Tk 46,000 crore.

In the same period last year, revenue slipped by 1 percent amid unrest following the political changeover in August 2024.

“This is not a sustainable situation,” said Fahmida Khatun, executive director of private think-tank the Centre for Policy Dialogue (CPD).

She said weak domestic resource mobilisation pushes debt levels higher and leaves little room to manage day-to-day spending. “The revenue collection remains so low that it is difficult to manage regular expenditure.”

According to the economist, the country’s persistently low tax-to-GDP ratio has made the government increasingly reliant on bank borrowing, driving up debt and interest payments.

In FY25, interest payments reached a record Tk 132,460 crore, almost one-fifth of total budget spending, according to the finance ministry’s debt bulletin.

For the current year, interest costs stand at Tk 122,000 crore, accounting for 13 percent of the budget.

As debt servicing takes up a larger share of public funds, allocations for education, health and infrastructure are squeezed, undermining long-term growth prospects.

Fahmida said that unless tax collection grows fast, heavier government borrowing from banks will also tighten credit for the private sector.

Ashikur Rahman, principal economist at the Policy Research Institute (PRI), warned that a risky cycle is beginning to take hold.

Higher borrowing, he said, feeds directly into a growing interest burden within the fiscal framework.

“As debt servicing absorbs a larger share of public expenditure, fiscal space for productivity-enhancing investments, particularly in human capital, health, education, and critical infrastructure, shrinks,” he explained.

Over time, this trade-off weakens the state’s ability to address structural development constraints and undermines the quality of growth itself, said Rahman.

Rising government demand for credit also crowds out private firms, pushing up borrowing costs and discouraging investment.

“This is particularly concerning at a time when economic recovery and employment generation depend critically on a revival of private sector confidence and investment momentum,” he added.

The persistence of high borrowing also points to deeper weaknesses on the revenue side. Despite some gains, collections remain far below what is needed to finance public spending in a sustainable way.

“This points to longstanding deficiencies in tax policy design, tax administration, and compliance. Without a durable improvement in domestic resource mobilisation, borrowing risks becoming a default adjustment mechanism rather than a temporary counter-cyclical tool,” he said.

Breaking the cycle, Rahman said, will require prudent debt management alongside credible revenue reforms and a clear medium-term fiscal strategy that shifts spending towards growth-enhancing priorities rather than debt servicing.

More pressure is expected in the months ahead. The rollout of a new pay scale for government employees will require an additional Tk 106,000 crore, around one-fifth of total operating expenditure for the year.

CPD’s Fahmida suggested the increases should be phased in.

Otherwise, she said, maintaining fiscal balance will become one of the toughest challenges for the next government.

Bangladesh is stepping into a new phase of trade diplomacy as it signs its first Economic Partnership Agreement (EPA) with Japan tomorrow, a deal meant to preserve duty-free market access after the country’s graduation from the least developed country club later this year.

A Bangladesh delegation led by Commerce Adviser Sk Bashir Uddin will leave Dhaka for Tokyo today to sign the agreement, Commerce Secretary Mahbubur Rahman told The Daily Star yesterday.

The EPA, approved by the Advisory Council on January 22, will give Bangladeshi exporters immediate duty-free access to 97 percent of their export basket, including ready-made garments (RMG) and nearly 7,379 other products.

In return, Japan will receive duty-free access to 1,039 products in the Bangladeshi market.

Automobiles from Japan, home to global brands such as Toyota, Honda and Subaru, will not enjoy duty-free entry under the deal, according to the commerce secretary.

Rahman said the move is deliberate to encourage Japanese entrepreneurs to invest directly in Bangladesh’s vehicle segment.

Officials believe this could prompt “handsome” investment in local vehicle manufacturing, possibly reshaping the country’s automotive industry.

Japan is already Bangladesh’s largest export destination in Asia, with annual shipments hovering around $2 billion, mostly garments.

Imports from Japan, however, have remained relatively steady at around $1.8 billion to $2.7 billion in recent years, according to data from the Bangladesh Bank and the Export Promotion Bureau (EPB).

Officials say the EPA could help narrow this trade deficit by boosting exports while drawing Japanese capital into industrial zones across the country.

Apart from tariffs, the agreement covers trade in services, investment, customs procedures and intellectual property rights, according to the commerce ministry.

“We are expecting a major shift of Japanese investment in Bangladesh under this EPA, as Japan is looking for a favourable investment destination and is choosing Bangladesh,” Commerce Secretary Rahman said.

At present, Japanese investment in Bangladesh stands at about $500 million, a small slice of Japan’s global investment. Still, several Japanese firms have already set up operations at the dedicated Japanese economic zone at Araihazar in Narayanganj district.

Under the deal, Bangladesh will open 97 service sub-sectors to Japan, while Japan will open 120 to Bangladesh. Officials expect this to speed up technology transfer and encourage long-term investment.

According to commerce ministry documents, garments will receive immediate duty-free access under Single Stage Transformation rules, a major win for the local RMG sector as the country prepares for the post-LDC competition.

For years, Bangladesh has been looking for trade agreements with major partners and blocs, including India, Turkey, Malaysia, China, the UAE, Indonesia, Nepal, Asean and the Regional Comprehensive Economic Partnership (RCEP), to widen its footprint in Asian, African and Latin American markets.

Until now, the country has only signed a Preferential Trade Agreement (PTA) with Bhutan in 2020. This EPA with Japan marks its first full-fledged trade deal.

Dhaka and Tokyo had been progressing towards this deal since 2022, when then prime minister Sheikh Hasina said Bangladesh was open to negotiating free trade agreements, including with Japan.

Subsequently, a joint study group was formed. Talks gathered pace in July 2023, with both sides signalling their intention to sign the EPA by late 2025 or early 2026, ahead of Bangladesh’s LDC graduation.

Momentum picked up after the Advisory Council gave its nod on January 22 this year, following Japan’s approval of the draft in December.

Last month, Japan also reaffirmed at the World Trade Organisation (WTO) that it would continue duty-free market access for Bangladesh for three more years, up to 2029.

Regarding the EPA with Japan, analysts say this sends a message about the country’s readiness to engage with major economies and trading blocs.

Abdur Razzaque, chairman of local think tank Research and Policy Integration for Development (RAPID), called the deal a positive signal but stressed that its success would depend on execution.

“It is a positive signal for Bangladesh to the foreign investors as it is a testimony that Bangladesh is capable of signing the deal even with Japan,” he said, adding that the country should actively attract Japanese investment, especially in export-oriented sectors such as man-made fibre industries.

Similarly, M Masrur Reaz, chairman of Policy Exchange Bangladesh, called the agreement an excellent development.

“This EPA will enable Bangladesh to be a partner of a country which is a member of the G-7. It will brighten our image,” he said.

If used well, the deal could also open new doors for foreign direct investment, Reaz added.

India’s trade pact with the US leaves much to be desired but will ease a crushing overhang on the rupee. Ten months into President Donald Trump’s trade war, the South Asian country is emerging bruised but at least more integrated into the global economy.

Washington is slashing its tariff on imported Indian goods to 18 percent from 50 percent in exchange for a promise from Prime Minister Narendra Modi’s administration to halt buying Russian oil, Trump announced late on Monday, adding that India has committed to buy $500 billion of US-made goods. Modi’s own post did not mention what India has conceded, but it appears to fulfil Washington’s demand for lower Indian tariffs on sectors like autos and includes petroleum and defence goods.

Still, even by Trump’s standards, the arrangement is short on details. Washington’s approach appears slapdash ahead of an expected US Supreme Court ruling on the lawfulness of Trump’s trade regime. As of Tuesday afternoon India time, there was no timeline for when the lower tariff would take effect. The purchasing commitment Trump says India has agreed to also seems absurd: the US currently supplies just $46 billion of India’s $690 billion annual imports, of which only $192 billion is fuel.

Nonetheless, the broad contours were positive enough to support Indian markets: the rupee , the worst-performing Asian currency of 2025, moved over 1 percent higher to 90.37 against the US dollar, while the benchmark Nifty 50 Index of stocks rose 5 percent. The revised tariff imposed by India’s largest trading partner is lower than the 20 percent Washington charges shipments from Vietnam and Bangladesh. That restores a potential advantage for India that global investors first expected back in April. It will also ease fears that the Trump administration will turn hostile on India’s IT services, a much larger-value export to the United States.

New Delhi may eventually rue giving up autonomy on its global energy purchases, a pillar of its attempt to maintain a non-aligned foreign policy. But in the short term, the US pact removes the biggest external roadblock to India’s growth and will reduce the need for the government to borrow more to prop up employment-intensive industries like textiles. One day, India might even thank Trump for spurring it to shore up its trade ties. Including a deal struck last week with the European Union after years of delays, Modi has secured agreements with its two largest markets together taking 36 percent of Indian exports, BNP Paribas analysts note. That’s some consolation for a bullied partner.

US President Donald Trump on February 2 said Washington will slash its tariff on Indian goods to 18 percent from 50 percent in exchange for India halting purchases of Russian oil and lowering trade barriers.

Trump said Indian Prime Minister Narendra Modi also committed that India would buy American goods worth more than $500 billion, including energy, coal, technology, agricultural and other products. Trump did not provide a timeline for those purchases, nor for when the lower tariff would go into effect.

Modi announced the revised US tariff in a separate post on social media platform X, without mentioning any concessions made by India.

The US deal addresses Washington’s ask to cut high Indian tariffs on sectors like autos, petroleum, defence, electronics, pharma, telecom products, aircraft and some agriculture products, and that talks for a more comprehensive deal with more sectors are to continue, an unnamed Indian government official told Reuters on Tuesday.

The Trump administration has been racing to complete framework trade deals with major trading partners before the US Supreme Court rules on whether to strike down Trump’s “reciprocal” tariffs under the International Emergency Economic Powers Act.

The Capital Market Stabilization Fund (CMSF) will now have to keep all its funds in a bank account and manage them in a risk-free manner, according to a draft of the Capital Market Stabilisation Fund Ordinance published yesterday on the Financial Institutions Division website.

Established by the Bangladesh Securities and Exchange Commission (BSEC) in 2021, the CMSF holds undistributed cash and stock dividends, non-refunded public subscription money, and unallotted rights shares of listed securities.

These assets are intended to be returned to shareholders or investors based on verified claims at any time. Until then, they are to be used to maintain stability in the capital market.

The new draft ordinance specifies that all funds must remain in a bank, while all shares must be held with the fund’s own depository participant. Any costs will be covered from the fund’s profits, keeping both the funds and shares intact.

The fund will be overseen by a seven-member board of governors, with the BSEC chairman serving as the board’s chair
The draft ordinance also protects the government, government officials, the BSEC chairman, commissioners and officials, and the fund’s board of governors and staff from any legal action if losses occur while implementing the rules in good faith.

The fund will be overseen by a seven-member board of governors, with the BSEC chairman serving as the board’s chair. Other members will include a BSEC commissioner, an additional secretary from the Financial Institutions Division, the president of The Institute of Chartered Accountants of Bangladesh, the president of the Bangladesh Association of Publicly Listed Companies, and a managing director of a stock exchange. The fund’s chief executive officer will act as the member secretary.

The fund will act as a custodian for investors, returning money upon proper claims. It will also support financial literacy initiatives and conduct research to raise awareness among investors.

Its financial statements must follow International Financial Reporting Standards, and audits must be completed within 90 days after the end of each financial year.

Under the draft ordinance, any cash dividend announced by a company but unclaimed for more than three years must be transferred to the CMSF.

Padma Bank, formerly Farmers Bank, slid into long-term insolvency after large-scale lending irregularities, failed state bailouts and continued governance failures, leaving it unable to recover defaulted loans or restore capital.

How it happened:

The bank began facing severe financial stress soon after its establishment in 2013 because of large-scale lending anomalies.
By 2018, the situation had worsened to the point where four state-owned banks and the Investment Corporation of Bangladesh injected Tk715 crore as a bailout.
State-owned banks later provided a further Tk1,000 crore through subordinate bonds and fixed deposits.
Despite these public investments, the bank failed to recover money from defaulters, allowing capital erosion to continue.
Governance problems persisted even after the board was reconstituted under the bailout package.

90% default loans, insolvent for years – Padma Bank merger still not in sight

Chowdhury Nafeez Sarafat was appointed chairman in January 2018 after former chairman Muhiuddin Khan Alamgir resigned amid allegations of financial scams.
Sarafat allegedly siphoned money from the bank to his firm, Bangladesh RACE Asset Management, further weakening the bank's financial position.
Like his predecessor, Sarafat later resigned after failing to restore the bank's financial health.
Neither Sarafat nor Alamgir has faced legal action over the alleged financial plundering.
By June 2025, Tk5,131 crore of the bank's Tk5,598 crore in loans had turned non-performing, accounting for more than 91% of total loans.
The bank recorded negative shareholder equity of Tk4,533 crore, meaning its liabilities exceeded its assets.
Continued operating losses further deepened the bank's insolvency.
The bank also accumulated Tk683 crore in dues to Bangladesh Bank, including penalties and shortfalls in maintaining mandatory cash and liquidity reserves.

To stabilise the foreign exchange market and support remittance and export inflows, the Bangladesh Bank has purchased over $4 billion from commercial banks through auctions in the current fiscal year.

Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan told journalists on Monday that the central bank has bought $4.15 billion so far this fiscal year.

Today alone, it purchased $218 million from 16 commercial banks at a rate of Tk122.30 per dollar, bringing the total purchases for February to $218 million.

Dollar supply has increased due to rising remittance inflows through banking channels, prompting commercial banks to sell dollars to the central bank.

A senior Bangladesh Bank official told The Business Standard that banks are keen to sell dollars, while the central bank is increasing its reserves through these purchases.

In January 2026, the country received $3.17 billion in remittances – the third-highest monthly inflow on record. This marks a 45.41% increase compared to $2.18 billion received in January 2025.

Previously, the highest remittance inflow was recorded in March 2025 at $3.29 billion, followed by $3.22 billion in December 2025.

A senior official said Bangladesh Bank is buying dollars mainly to sustain export and remittance flows and to prevent a fall in the exchange rate.

Bangladesh Bank began purchasing dollars through auctions for the first time in July 2025. These purchases have injected a significant amount of liquidity into the banking system.

JP Morgan said late on Sunday it expects demand from central banks and investors to drive gold prices to $6,300 per ounce by year-end.

Gold extended its fall on Monday to $4,677.17 per ounce, as of 0450 GMT, after falling more than 5 percent earlier in the session to hit its lowest in more than two weeks. Bullion had scaled a record high of $5,594.82 on Thursday.

“We remain firmly bullishly convicted in gold over the medium-term on the back of a clean, structural, continued diversification trend that has further to run amid a still well-entrenched regime of real asset outperformance vs paper assets,” the brokerage said in a note.

JP Morgan now forecasts central-bank gold purchases at 800 tons in 2026, citing an ongoing, unexhausted trend of reserve diversification.

Meanwhile, in silver, with prices at $80 an ounce since late December, the drivers of the continued rally have become harder to pinpoint and quantify, making it more cautious, JPMorgan said.

Spot silver fell over 6 percent to $78.90 an ounce on Monday. It hit a record high of $121.64 on Thursday before touching a near one-month low on Friday.

Moreover in the case of silver, without central banks as structural dip buyers as in gold, there remains the risk for a further move back higher in the gold-to-silver ratio in the coming weeks, the brokerage added.

“We still do see a higher floor for silver on average (around $75-$80/oz) for now vs our previous expectations as, even after overshooting in its catch-up to gold, silver is unlikely to fully relinquish its gains,” JP Morgan said.

Finance Adviser Salehuddin Ahmed today (2 February) said that while the interim government has made concerted efforts to stabilise the national economy, the challenges lying ahead remain formidable and complex.

Several significant hurdles persist that will require rigorous navigation, said the adviser while addressing the Sonali Bank Annual Conference 2026 as the chief guest at the International Convention City Bashundhara (ICCB) in Dhaka.

He emphasised that the future economic environment would demand resilience and a strategic approach to overcome these difficult phases.

Addressing the Sonali Bank officials, Salehuddin stressed the importance of standing as a fully professional institution.

He remarked that as a new government (elected) will eventually take over, the bank's management must work tactfully to maintain its standards.

Salehuddin Ahmed cautioned that while political and bureaucratic obstacles might arise, officials should not dismiss them casually but rather negotiate them with professional integrity.

He further advised the bank's officials on how to interact with policymakers and politicians, as he suggested that instead of an outright refusal to comply with questionable demands, officials should explain the established financial norms, audit requirements, and accounting standards that govern such institutions.

The finance adviser also urged Sonali Bank to extend its support to businesses, highlighting the necessity of financing for all types of enterprises, ranging from small-scale ventures to large industries.

He expressed his expectation that the bank would play a proactive role in fostering trade and commerce through adequate financing.

The finance adviser observed that while the overall banking sector faces various difficulties, the performance of Sonali Bank and a few other private banks remains commendable.

Bangladesh’s capital market saw a major boost on Monday as the turnover at the Dhaka Stock Exchange (DSE) crossed Tk 7.0 billion for the first time this year, alongside a broad-based rally in share prices.

The total turnover on the DSE stood at Tk 7.46 billion worth of shares and units during the session. The previous highest turnover in 2026 was Tk 6.93 billion, recorded on January 27.

Before that, the turnover last crossed the Tk 7.0 billion mark on October 7, 2025, when transactions amounted to Tk 7.87 billion, making Monday’s performance the strongest in nearly four months.

The benchmark DSEX index jumped 54 points during the day. The Shariah-based DSES advanced 12 points, while the blue-chip DS30 gained 20 points. All three indices rose by more than 1 per cent in a single session.

Most stocks ended higher, with prices rising for 215 companies against declines for 107, while 68 issues remained unchanged.

In the block market, shares of 23 companies worth Tk 130 million were traded, with Fine Foods Limited topping the list at Tk 60 million.

Islami Bank Bangladesh PLC emerged as the top gainer on the DSE, surging nearly 10 per cent, while Meghna PET Industries Limited was the worst performer, shedding around 8 per cent.

The rally also extended to the Chittagong Stock Exchange (CSE), where the benchmark CASPI index rose by 111 points.

On the CSE, prices increased for 98 companies, declined for 60, and remained unchanged for 25 issues.

The turnover improved to Tk 80 million, up from Tk 60 million in the previous session.

People’s Leasing and Financial Services Limited topped the CSE gainers’ chart with a 10 per cent rise, while FAS Finance and Investment Limited ended at the bottom, losing 10 per cent.

Bangladesh Bank (BB) on Monday purchased $218.50 million from 16 commercial banks through multiple auction methods as part of its ongoing strategy to curb the depreciation of the US dollar against the taka and revitalise the remittance and export sectors.

According to central bank data, it bought dollars today at the rate of TK 122.30.

Accordingly, total purchases stood at $218.50 million in January 2026 and $4,152 million in FY 2025–26 till to date.

A joint venture led by listed firm Shasha Denims is set to invest Tk350 crore to build the Ghorashal Inland Container Depot (ICD) in Ghorashal, Narsingdi, according to a stock exchange disclosure.

The depot will be developed under a design, build, finance, operate, maintain and transfer model and operated as a public-private partnership with Bangladesh Railway.

The joint venture has already signed a 30-year concession agreement with Bangladesh Railway and disclosed the investment plan through a filing on Sunday.

The project is being undertaken by Container Company of Bangladesh Limited (CCBL), to establish a multimodal inland container depot on 20 acres of land to handle import and export cargo from Chattogram and Mongla ports.

To implement the project, a special purpose company named "Ghorashal ICD and Port Limited" has been formed, in which Shasha Denims currently holds a 90% stake, the disclosure said.

The company added that the shareholding structure may change in future with the inclusion of strategic investors to strengthen the project's technical and financial capacity.

Aslam Ahmed Khan, company secretary of Shasha Denims, told TBS that the company has initially taken a 90% stake, but the ownership structure will evolve once strategic partners are brought in.

Previously, he said, "The depot will be built on 20 acres of land owned by Bangladesh Railway. The railway will only provide the land on a rental basis for 30 years, and in return, the railway will receive 15% of the total revenue."

The company expects construction to be completed by 2028, after which commercial operations will begin, he added.

In January 2024, CCBL, a government-owned company under the Ministry of Railway, floated a tender to build the multimodal inland container depot, seeking interest from local and foreign investors.

Earlier reports by TBS said the project failed to attract bidders despite two rounds of tenders, prompting CCBL to prepare for a third bidding attempt.

The project aims to ease the movement of export-import cargo to and from Chattogram and Mongla ports and is being implemented by CCBL, a subsidiary of Bangladesh Railways.

Shasha Denims is one of the leading listed textile companies, with an annual turnover of about Tk1,000 crore. In FY25, the company posted consolidated revenue of Tk1,128 crore, marking a 0.91% year-on-year decline, while profit fell 12.54% to Tk21.68 crore, with earnings per share of Tk1.57.

The board recommended a 5% cash dividend for shareholders. In the first half of the current fiscal year, revenue declined 2.33% year on year to Tk617.40 crore, while profit dropped 52% to Tk8.02 crore.

Today, Shasha Denims shares closed at Tk16 each, up 4.58% from the previous trading session.

Summit Alliance Port Limited, one of the country's leading inland container terminal and logistics operators, reported a sharp decline in revenue and profit in the first half of FY26, primarily due to a slowdown in export-related container handling and lower freight rates.

According to its price sensitive statement, the company's consolidated revenue fell by 28% year-on-year to Tk322 crore in the July–December period of FY26, while consolidated net profit dropped by 37% to Tk22.82 crore. As a result, consolidated earnings per share stood at Tk0.96, compared to a stronger performance in the same period of the previous fiscal year.

The company's consolidated net asset value per share also declined, slipping to Tk34.47 from Tk35.67 a year earlier.

Summit Alliance Port attributed the weaker performance largely to the downturn in its subsidiary Container Transportation Services Limited (CTSL), which experienced lower net profit during the reporting period due to reduced cargo volumes, a fall in freight rates and the absence of dividend income from subsidiaries.

The elimination of dividend income amounting to Tk17.32 crore further weighed on overall profitability during the first half of the fiscal year.

The half-yearly financial report showed that earnings from air and sea freight export handling under Container Transportation Services fell significantly by 38% to Tk198 crore. The decline reflects subdued export activity and intense competition in the freight forwarding segment, which compressed margins despite the company's efforts to expand its service offerings. Container Transportation Services continues to remain the primary revenue driver for Summit Alliance Port, making the group's overall performance highly sensitive to changes in export volumes and global trade conditions.

According to the Export Promotion Bureau, overall export earnings during the July-December period declined 2.19% to just under $24 billion.

Established in 2013, Container Transportation Services initially focused on domestic transportation but later diversified into freight forwarding after obtaining a customs licence in June last year. The company has since been positioning itself as an integrated logistics service provider, catering to both domestic and international clients. As part of this strategy, CTS partnered with Germany-based Hellmann Worldwide Logistics as its local agent, aiming to tap into global freight networks and strengthen operational capabilities.

In January 2025, Summit Alliance Port announced a strategic partnership with Hellmann Worldwide, under which the German logistics firm subscribed to 3.33 lakh new CTS shares at Tk66.50 each. The collaboration was designed to enhance the group's international reach and improve efficiency across South Asia. However, the benefits of this partnership have yet to fully offset the impact of weaker export demand and lower freight rates in the current reporting period.

Summit Alliance Port's shareholding structure includes Alliance Holdings with a 23.48% stake and Summit Holdings owning 8.07%. Among individual sponsors, Alliance Holdings founder and Summit Alliance Port Managing Director Jowher Rizvi holds 5.48% of the shares, while Summit Group Chairman Aziz Khan owns 7.03%.

Business Research International Corporation (BRIC) is set to establish a large-scale agro-processing industry in the Jamalpur Economic Zone (JEZ) with an investment of approximately $5.32 million.

A land lease agreement was signed today (2 February) between the Bangladesh Economic Zones Authority (BEZA) and BRIC at the BEZA office in the city, according to a press release.

Executive Member (Investment Development) and Additional Secretary Saleh Ahmed signed the agreement on behalf of BEZA, while Director and Vice President Mishal Karim signed on behalf of BRIC.

Under the agreement, a modern agro-processing plant will be established and operated as a joint venture, with a focus on promoting markets for locally produced agricultural goods. The initiative aims to strengthen the country's agro-based industrial sector and expand production for both domestic and export markets.

BEZA said BRIC will invest about $5.32 million in the proposed project on five acres of land. The project will be an export-oriented and environmentally friendly industrial venture, requiring relatively low water, electricity and gas consumption.

The company plans to start commercial production within three years. Its products will include paste, pulp, puree, juice and beverages, and spices. More than 50% of raw materials will be sourced locally.

The project is expected to create significant local employment. BRIC intends to export 15% of its output, which is expected to strengthen Bangladesh's competitiveness in international markets through modern technology and quality production.

Such investment is expected to accelerate industrialisation in the agriculture sector, boost exports, create new jobs, and contribute to sustainable economic growth in the region.

Congratulating the company, Saleh Ahmed said the JEZ is set to become a plug-and-play economic enclave.

"A leading company is expected to start production here soon," he said.

Referring to BRIC's investment, he said it was "an example of BEZA's environmentally friendly industrial initiatives" and expressed hope that "such agro-processing projects will encourage more local and foreign investors to invest in the JEZ."

The JEZ is the first government economic zone under implementation in the Mymensingh division. The zone will be developed on a total area of 436 acres and is expected to create direct employment opportunities for around 32,000 people once fully implemented.

According to the feasibility study, the zone is suitable for agro-based industries, light engineering, garments and other sectors. Key infrastructure, including gas connections, a 33/11 kV power substation, administrative and dormitory buildings, land development, a groundwater reservoir and boundary walls, has already been completed.

So far, lease agreements have been signed with 18 companies to set up industries in the zone. Construction work is currently underway for six industrial units, including a skills development centre.

US dollar purchases by Bangladesh Bank from the forex market have surpassed $4 billion so far in fiscal year (FY) 2025-26.

The banking watchdog yesterday bought $218.50 million from 16 commercial banks at a cut-off rate of Tk 122.30 per US dollar, according to official data.

This is the first US dollar purchase by the banking regulator in February.

Overall foreign exchange purchases in the ongoing fiscal year have reached $4.152 billion, reflecting continued efforts by the central bank to manage liquidity in the foreign exchange market and stabilise the exchange rate.

The central bank has been actively buying the American greenback from the market in recent months amid improved inflows and easing pressure on the foreign exchange market, officials said.

BB, which sold more than $25 billion from its foreign exchange reserves between FY21 and FY25 to help cover imports of fuel, fertiliser, and food, has begun purchasing US dollars since the start of this fiscal year as supply has increased due to higher exports and remittances.

Since early July, the Bangladeshi taka has gained against the dollar.

Bangladesh’s forex reserves have continued to rise due to the central bank’s consistent USD purchases.

Bangladesh’s gross foreign exchange reserves stood at $33.18 billion as of January 29 this year, according to BB data.

However, the figure stood at $28.68 billion under the International Monetary Fund’s Balance of Payments and International Investment Position Manual (BPM6).

Masudur Rahman, who has been investing in stock for nearly 20 years, was hopeful that at least a few state-run firms would be listed on the stock market soon, as the interim government directed authorities to do so. To his dismay, no new state-run companies were listed.

On May 11 last year, Chief Adviser Prof Muhammad Yunus gave five directives to revitalise the capital market. His directives included offloading shares of well-performing state-owned companies and listing them on the stock market, offering shares in multinational firms to the public, and offering incentives to non-listed companies that perform well, encouraging them to go public.

Around nine months have lapsed, yet the directive to list well-performing state-owned companies was not fulfilled.

Similar attempts to list state-run companies were taken by finance ministers working for the previous government, but they also could not make much headway.

“I thought the interim government would keep the bureaucrats under pressure this time, and they would be compelled to follow the directives,” Rahman said.

As per the Dhaka Stock Exchange (DSE) data, Bangladesh Submarine Cables PLC (BSCPLC) was listed on the stock market back in 2012. Since then, no other state-owned companies entered the capital market.

During the last decade, many junk or low-performing companies entered, causing the share market to become highly volatile. The chief adviser at a meeting gave the five directives to officials, including the finance adviser, the finance secretary and the Bangladesh Securities and Exchange Commission (BSEC) chairman, to bring dynamism into the stock market.

Attempts were made by the authorities to complete the directives, but progress was stalled at some point, and none of the five goals were reached.

Shortly after the May meeting, the finance ministry ordered all relevant ministries to prepare their state-owned enterprises for listing.

Abul Kalam, spokesperson of the BSEC, said that to ensure offloading shares of state-run companies and multinational companies, a potential list has been made, and the Financial Institutions Division (FID) ordered firmly that concerned ministries bring them to the market.

“The BSEC has done all they could. The next steps will have to be taken by the concerned ministries. But that’s where the progress stalled,” he said.

Another of the CA’s directives was to offer incentives to bring well-performing local companies into the market. No such incentive was also seen from the National Board of Revenue or any other authorities.

The BSEC has done its part in amending IPO rules so that good companies can get a fair price from investors.

Another order was to include foreign experts in the market reform activities. No such steps were taken.

Authorities were directed to take measures to encourage large borrowers to raise capital from the stock market by issuing equity and bonds. No progress was seen there either.

Following the CA’s directive, the BSEC has taken several strict punitive measures against those involved in corruption and market manipulation.

Saiful Islam, president of the Dhaka Stock Exchange (DSE) Brokers Association of Bangladesh, said that in realistic terms, no decision has been implemented in the last nine months despite the order coming from the head of the government, especially regarding the listing of state-run companies and multinational companies.

“It is extremely frustrating for us.”

He noted that the lack of implementation of those directives was a regulatory failure.

“The caretaker government’s tenure was a golden opportunity to implement these decisions on the listing of state-run firms for the betterment of the capital market. During any political government, such measures are difficult to implement, mainly due to non-cooperation from the bureaucracy,” he said.

“Adding at least 4-5 state-run companies within this period would have been a boost for the market,” he added.

Abul Kalam said the BSEC, Financial Institution Division and Anisuzzaman Chowdhury, a special assistant to the chief adviser, tried their best to implement the directives. A joint committee was formed, and it submitted a report to the government, outlining the necessary measures to be taken to incentivise the well-performing local companies. The Bangladesh Bank (BB) governor has said in a meeting that the government will push forward those measures.

The BB and BSEC are taking steps to make the bond market vibrant, the BSEC spokesperson added. However, such measures cannot be completed overnight, and a guideline to implement the measures was made.

Regarding the matter of appointing a foreign expert, he said, “A directive came from the higher-ups that the inclusion of a foreign expert would be time-consuming.”

In light of the situation, the responsibility was given to an academician who has foreign expertise as well as local experience.

“What else can the BSEC do?” the spokesperson said, stressing that the BSEC and the FID have taken all possible necessary steps.

While the BSEC has been diligent in following its part of the directives, the completion of the measures halted due to bureaucracy in the concerned ministries, causing stock investors to lose hope in any further progress.

Bangladesh Bank Governor Ahsan H Mansur has said that state-owned commercial banks disburse loans but have consistently failed to recover them on time, a weakness that has kept credit growth in the sector constrained for decades.

Speaking as a special guest at the Sonali Bank Annual Conference 2026 at the International Convention City Bashundhara today (2 February), the governor said long-standing structural problems had limited the role of government banks in the economy.

"If loans can be given to the right customers, those loans will no longer remain unrecovered," he said.

He noted that various restrictions had been imposed on government banks, including Sonali Bank, which were still in effect.

"Government banks can give loans, but they cannot recover them. For this reason, the flow of credit had to be contracted," he said.

He added that credit growth at state-owned banks had remained constrained since before 2000, which he described as an unsustainable model.

The governor said banks that mobilise deposits must also be able to channel those funds into productive economic activities.

"If a bank collects deposits and we cannot contribute that to the macro-economy, then our achievement will be diminished," he said.

He said Sonali Bank had been cautious in loan disbursement but now needed to strike a balance.

"Sonali Bank is distributing loans with great caution. I think now loans must be distributed with a bit of courage along with that," he said.

Ahsan H Mansur also pointed to the limited role of state-owned banks in consumer lending.

"The consumer lending sector is an important sector. In other countries, house lending is a very large sector, but the government banks of our country are unable to make any major contribution," he said.

He said Sonali Bank should be transformed into a fully commercial institution.

"Currently, Sonali Bank is operating as a partial commercial principal bank. It must be developed into commercial banking on a larger scale and become more profit-oriented," he said.

According to the governor, profits earned by the bank could help reduce its capital deficit and meet future capital and provisioning requirements, eventually enabling it to pay dividends.

He added that the government would give Sonali Bank the freedom to operate on true commercial principles and said future governments would maintain that approach.

He also stressed the need to increase remittance inflows, noting that Sonali Bank plays a significant role in opening letters of credit for the government.

The governor said Sonali Bank's non-performing loan ratio was at a "tolerable level" and had improved from earlier figures.

"I can expect it to decrease a bit more," he said, adding that loan disbursement needed to rise.

"If Sonali Bank takes Tk2 lakh in deposits, then 80% of that must be distributed as loans," he said, while emphasising the need for careful borrower selection.

He said banks must identify capable entrepreneurs at the grassroots level, particularly among small and medium enterprises, and strengthen support for export-oriented activities.

Bangladesh's merchandise-export earnings during the first seven months of the current fiscal year stayed on a negative growth trajectory as main earner garment shipments to major EU countries and other destinations contracted.

Germany and France are among the major destinations in the European Union (EU) where apparel faced a setback, being undercut by big peers in their shift away from the tariff-walled United States, industry sources said, as the latest export-performance results published.

The single-month merchandise-export earnings in January 2026 for the sixth consecutive month, on a year-on-year basis, also registered negative growth compared to the same month in 2025, according to the data released Monday by Export Promotion Bureau (EPB).

Bangladesh earned US$28.41 billion during the July-January period of the fiscal year 2025-26, reflecting 1.93-percent year-on-year negative growth against $28.96 billion in the corresponding period of last fiscal.

In the just-past month, January, the country's export earnings stood at $4.41 billion which was slightly or 0.50-percent lower than the earnings worth of $4.43 billion in January 2025.

Exports went on a year-on-year negative growth in August 2025, when the country recorded a 2.93-percent fall.

The climb-down was followed by a decline of 4.61 per cent, 7.43 per cent, 5.58 per cent and 14.25 per cent in September, October, November and December respectively.

Of the total January earnings, RMG fetched $3.61 billion, logging a 1.35- percent negative growth compared to that in the same month of 2025, the EPB data revealed.

As usual, RMG maintained its leading position, contributing $22.98 billion-notwithstanding a 2.43-percent negative growth - to the total export earnings during the first seven months of the current fiscal year.

Within this clothing segment, knitwear exports fell by 3.13 per cent to $12.28 billion, while that of woven garments declined by 1.60 per cent to $10.69 billion.

Sources say while the strong performance in July reflects resilience, the slowdown since August highlights challenges for Bangladesh's export sector amid fluctuating global demand and evolving market dynamics.

Exporters, however, attribute the country's negative export growth to weakening global demand, the imposition of reciprocal tariffs by the United States and China's increased focus on markets where Bangladesh is competitive.

They also say cutthroat global competition, rising production costs, and ongoing geopolitical and trade uncertainties have created significant external pressures, contributing to the current challenges in Bangladesh's export performance.

Talking to the FE, Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said December-to-February "is usually the season of summer orders compared to that of winter and previously there had been growth during the period".

Export still was in negative territory which according to him is not good.

MA Rahim, vice chairman of DBL Group, says buyers usually hold some of their work orders before two to three months prior to the national election and they observe the situation for at least one month after election.

He expects that buyers would come back with the orders they hold temporarily or shifted to other places once a stable political situation sustains after the election.

The US tariffs have changed the overall market dimension with decline in sales there and so decrease in placing work orders, exporters say. Moreover, China and India to offset US tariff impacts are "snatching away the work orders by offering 'aggressively low rate'".

The Indian government has also incentivised with new packages to support its exporters targeting US high tariffs whereas Bangladesh government has been withdrawing the given benefits, including cuts in incentives "in the name of LDC graduation", they lament.

They, however, expect good days ahead after the national elections, saying that the situation might change with elected government provided with required and expected policy supports in consultation with businesses.

The July-January breakdowns show home-textile exports rose 3.26 per cent year on year to $509.97 million.

Leather and leather products earned $707.24 million, up 5.71 per cent.

The agricultural sector saw a 9.88-percent negative growth to $607.28 million.

Jute and jute goods exports reached $493.85 million, marking 1.97-percent growth during the period of 2025-26 fiscal.

Frozen and live fishes recorded 4.94-percent growth to fetch $297.56 million during the first seven months of fiscal 2025-26.

Pharmaceutical exports grew by 5.03 per cent to $139.10 million.

Meantime, Bangladesh's overall exports to its major billion-dollar destinations like Germany, France, Italy, Denmark, India and Japan fell 10.35 per cent, 11 per cent, 5.46 per cent, 10.40 per cent, 4.98 per cent and 2.78 per cent during the July-January period of 2025-26.

In FY25, Bangladesh exports fetched $48.28 billion, riding on $39.34 billion earnings from RMG.