Leo ICT Cables PLC has withdrawn its application to raise Tk7 crore from the SME platform of the stock market, stepping back amid political and economic uncertainties ahead of the national election.

According to sources at the Bangladesh Securities and Exchange Commission, the company pulled out its proposal after reassessing market conditions. A senior commission official, speaking on condition of anonymity, said the decision was taken after considering the prevailing political and economic situation.

In October last year, the company had applied to issue seven million shares to raise Tk7 crore from the SME platform. The issue manager for the proposal was AAA Finance & Investment Limited.

The official also said since the current commission has not approved any initial public offerings (IPOs) or Qualified Investor Offers (QIOs) so far, the company likely reassessed the overall situation and decided to step back for now.

The official added that only one SME application is currently pending — that of Brain Station 23 PLC.

Leo ICT Cables had planned to raise funds from the market to expand its production capacity and strengthen its capital base.

The company's paid-up capital stands at Tk32.58 crore. For the year ended 30 June 2025, it reported revenue of Tk37 crore, up from Tk30 crore in the previous year. During the same period, profit after tax rose to Tk5 crore, compared to Tk3.09 crore a year earlier. Earnings per share (EPS) stood at Tk1.67.

According to information available on its website, Leo ICT Cables is a technology-driven manufacturing company in Bangladesh. It produces fiber optic cables, high-quality lithium-ion batteries, and Optical Networking Units (ONU). Its factory is located at Kaliakoir Hi-Tech Park in Gazipur under the Bangladesh Hi-Tech Park Authority.

The company says its fibre optic cables are engineered for high performance, reliability, and durability, forming a critical backbone of Bangladesh's digital and internet infrastructure. It also positions its lithium-ion batteries as efficient, long-lasting, and safe energy solutions, built to meet international standards and support growing power demands.

With modern machinery sourced from global suppliers and a skilled team of engineers and technicians, the company maintains strict quality control and timely delivery for both domestic and international markets. Through its products, Leo ICT Cables aims to contribute to a more connected, sustainable, and technology-driven Bangladesh.

The National Board of Revenue (NBR) has started budget-related work for the fiscal year 2026-27 and has sought proposals from business bodies and other relevant organisations.

According to the NBR, letters have already been sent on 18 February from the budget-related departments asking them to submit their proposals and recommendations on the budget to the NBR by 15 March.

In a letter to the business bodies, signed by Barrister Badruzzaman Munshi, second secretary of the NBR's VAT wing, the agency said, "You are requested to send your organisation's opinions with the aim of rationalising the tax-to-GDP ratio, facilitating ease of doing business, and resolving procedural complexities."

Sources at the NBR said pre-budget discussions with business representatives and other stakeholders may begin by the last week of this month in preparation for the next budget. To this end, the NBR has also formed a committee, appointing a first secretary of NBR as the chief budget coordinator, sources said.

This will be the first budget for the new government led by the BNP. Although budgets during the previous two BNP governments were prepared under the leadership of late finance minister M Saifur Rahman, this time the budget will be prepared under the leadership of Finance Minister Amir Khasru Mahmud Chowdhury.

He has already provided preliminary directions during a meeting held last Saturday with officials from the NBR and other relevant departments regarding the budget, according to officials.

US investors are pulling money out of their own stock market at the fastest pace in at least 16 years as Big Tech returns fade and better-performing overseas markets look more attractive.

In the last six months, US-domiciled investors have pulled some $75 billion from US equity products, with $52 billion flowing out since the start of 2026 alone, the most in the first eight weeks of the year since at least 2010, according to LSEG/Lipper data.

The shift comes despite a weakening of the dollar against other currencies, which makes buying overseas assets more expensive for US investors. It's a compelling sign that the diversification away from US assets by some international investors in the past year is gaining traction among US investors.

Since the global financial crisis ended in 2009, the "buy America" trade has rewarded investors at home and abroad thanks to a strong economy and earnings growth and dominance in the tech sector leading to outsized gains in US stocks.

More recently, the AI boom pushed the S&P 500 index to record highs last year, a strong buffer from US President Donald Trump's unpredictable approach to trade policy and diplomacy, as well as his attempts to undermine Federal Reserve independence.

Looking further afield

But as concerns have grown about the possible risks from AI, as well as the costs involved, the lure of Wall Street stocks has ebbed. The surge in value in the US megacap tech stocks that have led gains until now are making investors pickier and many are spotting more attractive opportunities elsewhere.

Bank of America's 20 February fund manager survey showed investors switched from US equities to emerging market equities at the fastest rate in five years.

"I've had lots of conversations with our wealth business in the US this year," said UBS's head of European equity strategy and global derivatives strategy Gerry Fowler.

"They're all talking about investing more offshore because at the end of the year, they looked at the performance of foreign markets in dollars and they're like, wow, I'm missing out."

US investors have poured some $26 billion into emerging-market equities so far this year, with South Korea the largest single country destination, with an inflow of $2.8 billion, followed by Brazil, with $1.2 billion, LSEG/Lipper data shows.

One of the clear results of Trump's policies has been the 10% decline in the dollar against a basket of currencies since last January. While that is a disadvantage for US investors hunting for opportunities abroad, dividends in dollar terms from better performing overseas markets will also be plumped up.

In the last 12 months, the S&P 500 has risen around 14%. In dollar terms, Tokyo's Nikkei is up 43%, Europe's STOXX 600 has surged 26%, Shanghai's CSI 300 has returned 23% and Seoul's KOSPI has doubled in value.

Investors are also re-evaluating the seemingly unstoppable rally in the shares of artificial intelligence powerhouses like Nvidia, Meta and Microsoft and the risks posed by sky-high valuations. They are seeking 'value' in traditional industrial companies and defensive stocks which can feature heavily in some overseas equity markets such as those in Germany, the UK, Switzerland or Japan.

Value and valuation

Laura Cooper, global investment strategist at Nuveen, said the rotation on Wall Street away from tech and other so-called growth stocks into value stocks is playing out on a global level.

"Increasingly we are seeing US investors look at the global landscape from a valuation perspective," she said, flagging the cyclical growth upswing predominantly in Europe and Japan.

European banking stocks, one example of cyclical stocks that typically benefit when economic growth picks up, surged 67% last year and are up a further 4% so far in 2026.

"When you overlay the valuation story with the growth story, we are seeing that rotation for US investors as well," Cooper added.

US stocks are still far more expensive than those elsewhere. The S&P 500 trades at roughly 21.8 times the expected earnings of its components, while stocks in Europe trade at roughly 15 times forward earnings and those in Japan and China trade at 17 and 13.5 times respectively.

Kevin Thozet, portfolio adviser at Carmignac, said his team have observed that flows of US capital moving into Europe have accelerated since around mid-2025.

LSEG/Lipper data shows that since Trump's inauguration in January last year, US-domiciled investors have poured nearly $7 billion into European equity products, compared with an outflow of roughly $17 billion during the four years of Trump's first term from 2017 to 2021.

"If I'm taking a very long-term view, it's, maybe, this idea of a great global rotation," Thozet said.

Dhaka Stocks has lost momentum after an initial post-election rally, as institutional investors adopted a cautious stance amid growing expectations of a leadership change at the capital market regulator – a long-standing demand of retail investors.

The newly formed government has already begun searching for a new Bangladesh Securities and Exchange Commission (BSEC) chairman, as the existing commission, formed during the interim administration and headed by Khondoker Rashed Maqsood, failed to restore investor confidence.

The regulator is also likely to undergo restructuring, according to officials familiar with discussions at the finance ministry, as policymakers seek broader structural reforms in a market that has underperformed relative to the country's economic growth, frustrating both local and foreign investors.

Finance ministry sources said several private-sector professionals, along with a professor from the University of Dhaka, have shown interest in leading the commission. However, capital market stakeholders said they favour market-oriented leadership from the private sector due to bitter past experience.

The benchmark DSEX index climbed nearly 200 points to a five-month high on 15 February – the first trading session after the BNP's landslide victory in the 13th national election – reflecting initial investor optimism over the new government.

The upward trend, however, proved short-lived. The market turned negative from the very next session amid uncertainty over whether the existing commission would remain in place.

Finance Minister Amir Khosru Mahmud Chowdhury also hinted at restructuring the regulator in a recent comment, saying the current upward trend may reflect expectations of a democratic government, but stressing that only sustainable, structural reforms can ensure long-term stability.

Speaking to journalists at his residence in Mehedibag, Chattogram, on Friday – during his first visit to the port city after taking the oath as a minister in the new government – Khosru said temporary gains driven by sentiment would not bring fundamental change to the capital market.

The minister said the government planned comprehensive reforms, including amendments to laws and regulatory frameworks, while strengthening the role of the BSEC. He stressed the need to improve regulatory effectiveness, enhance transparency and adopt a zero-tolerance stance against irregularities.

Khosru also said efforts would be made to bring fundamentally strong and profitable companies to the stock market and attract both domestic and foreign investment funds to improve liquidity and rebuild investor confidence.

Investors seek market-friendly leadership

A senior banker at a private commercial bank told The Business Standard that the sharp rise on the first trading day after the election reflected investor confidence, particularly as shares linked to BNP-aligned business groups recorded notable gains.

Wishing not to be named, the banker said investors are expecting a restructuring of the commission, as the current chairman is seen as not market-friendly and has been unpopular from the outset due to creating distance from stakeholders.

"The government should appoint someone market-oriented to lead the regulatory body, either from market participants or from academia, like a finance professor," the official said.

Former banker Khondoker Rashed Maqsood assumed office as BSEC chairman following the regime change on 5 August 2024. During his roughly one-and-a-half-year tenure, he faced repeated protests from investors who accused the regulator of failing to revive market performance.

Stakeholders said trading activity weakened as key market players distanced themselves from the regulator, resulting in persistently low turnover. Moreover, no new initial public offerings (IPOs) entered the market under his leadership, further straining merchant banks.

Maqsood's commission also imposed what many described as unrealistic fines totalling nearly Tk1,000 crore on various companies and individuals over past corruption and market manipulation, creating negative sentiment among investors.

Longstanding governance concerns

While Asian frontier markets have grown rapidly, Bangladesh has lagged behind over the past 15 years under the leadership of former BSEC chairmen M Khairul Hossain and Shibli Rubayat Ul Islam, who critics say failed to establish proper governance in the market.

Both were finance professors at Dhaka University and faced allegations of corruption and collusion in market manipulation with certain stakeholders.

Shibli Rubayat, who resigned in August last year following the regime change, was arrested in February in a corruption case filed by the Anti-Corruption Commission (ACC).

He was also permanently barred by the BSEC from all capital market activities over his involvement in a share price manipulation scheme linked to Padma Printers and Colour.

Khairul Hossain, who led the regulator from 2011 to early 2020, was criticised for approving numerous financially weak companies for IPOs, often at inflated prices, which analysts say eroded investor confidence despite strong macroeconomic growth at the time.

His successor, Shibli, who took charge in 2020, was accused of shifting focus away from strengthening the primary market and instead fostering alleged collusive ties with certain market players and insider traders, prioritising short-term gains in the secondary market over long-term stability.

Following what stakeholders describe as unsuccessful leadership by academic appointees, market participants are urging the government to choose a chairman with both technical market knowledge and public policy understanding.

A merchant banker, speaking on condition of anonymity, said investor distrust in the existing commission was evident in market performance during the interim government period.

He added that while university professors may have theoretical expertise, they often lack the practical experience of private sector players. He suggested the new commission should include a mix of academics and private sector professionals to help restore investor confidence.

The benchmark index of the Dhaka Stock Exchange rebounded slightly today (22 February), ending a four-session losing streak that began after the national election.

The DSEX, the bourse's main index, inched up by 2 points to close at 5,468. The modest gain came after sustained selling pressure in the previous four sessions, during which the index had fallen sharply amid post-election uncertainty and cautious investor sentiment.

The blue-chip DS30 index, which tracks 30 leading companies, performed relatively better, rising 6 points to settle at 2,104. The increase indicates selective buying interest in large-cap stocks, particularly those with strong fundamentals. In contrast, the Shariah-based DSES index slipped slightly by 0.30 points to close at 1,095, reflecting mixed performance among Shariah-compliant securities.

Market analysts attributed the modest recovery in the DSEX to bargain hunting by investors after consecutive declines. However, overall market movement remained subdued, signaling ongoing caution. Investors are carefully monitoring political developments and economic signals before taking significant positions.

Turnover on the Dhaka Stock Exchange rose by 1.43% to Tk568 crore, up from Tk560 crore in the previous session. Despite the slight rebound, both turnover and participation remained moderate, indicating that investor confidence has yet to fully recover.

Of the 388 issues traded during the session, 123 advanced, 194 declined, and 71 remained unchanged, showing a continued dominance of losing stocks. Analysts noted that the cautious sentiment reflects investor concerns over the post-election political and economic landscape.

Many investors preferred to remain on the sidelines, waiting for clearer signals regarding policy direction and the formation of a new securities commission. Uncertainty over regulatory leadership and upcoming reforms has also weighed on market sentiment.

Institutional investors appeared particularly hesitant to take fresh positions without greater clarity on policy continuity and market stabilization measures. Over the past year, prolonged political uncertainty and a series of regulatory decisions that failed to restore investor confidence have contributed to a sustained market downturn.

Retail investors exited the market in significant numbers, while institutional and high-net-worth investors largely remained inactive, causing the share prices of several fundamentally strong companies to decline.

Large-cap sectors displayed mixed performance today. The banking sector led the gains, rising 0.91%, followed by non-bank financial institutions (NBFIs) with a 0.59% increase. The Food & Allied sector gained 0.15%, and Telecommunication edged up 0.08%.

In contrast, Fuel and Power fell 0.27%, Engineering declined 0.32%, and Pharmaceuticals dropped 0.73%. Block trades contributed 2.9% of the overall market turnover, highlighting selective large-volume transactions amid cautious trading.

Overall, Sunday's slight recovery offers limited relief, and the market remains sensitive to political developments, regulatory clarity, and macroeconomic updates. Investors are likely to continue taking a cautious approach in the coming sessions until more stable conditions emerge.

The Chittagong Stock Exchange (CSE) also closed lower, as the CSCX index down 16 points to 9,413, while the CASPI index shed 47 points to close at 15,302, reflecting negative sentiment across both bourses.

The Dhaka stock market ended the week on a positive note, with National Bank emerging as the top gainer, while Islami Bank Bangladesh PLC stood as the worst-performing stock.

National Bank registered a strong 29.27% weekly return, closing at Tk5.30, driven by notable investor interest in banking stocks.

Bangladesh Industrial Finance Company (BIFC) followed with a 28.57% gain to settle at Tk3.60. S Alam Cold Rolled Steels Limited continued its recent rally, advancing 27.50% to Tk15.30 despite persistent financial concerns.

Other significant gainers included Fareast Finance and Premier Leasing, both rising 27.27% to Tk1.40 each. Prime Finance climbed 22.73% to Tk2.70, while Daffodil Computer gained 22% to close at Tk56.

Infographic: TBS
Infographic: TBS

Meanwhile, Familytex and Tung Hai Knitting each posted 20% gains, ending the week at Tk1.80 and Tk2.40, respectively. Shurwid Industries advanced 19.61% to Tk6.10.

On the losing side, Islami Bank Bangladesh PLC declined 12.28% to close at Tk45.70, topping the losers' chart. ICB Islamic Bank fell 10.71% to Tk2.50, while Midas Finance shed 9.38% to Tk6.40.

Al-Arafah Islami Bank lost 9.09% to Tk16, and Union Capital dropped 8.89% to Tk4.10. Crystal Insurance retreated 8.53% to Tk77.20, while Asiatic Laboratories Limited fell 7.89% to Tk63. Phoenix Finance also declined 7.50% to Tk3.70.

The benchmark DSEX index extended its upward trend for the fifth consecutive week, supported by strong post-election optimism at the start of trading.

Following the election holidays, trading resumed with broad-based buying pressure that pushed the index past the 5,600-mark for the first time in nearly six months.

However, EBL Securities, in its weekly market review, noted that the initial enthusiasm moderated in later sessions as investors engaged in profit-booking and adopted a cautious stance, closely watching policy signals and regulatory developments under the newly elected government.

By the end of the week, DSEX gained 66 points, or 1.2%, to settle at 5,466. Market participation remained strong, with average daily turnover rising to Tk1,050 crore.

Sector-wise, the banking sector dominated trading activity, accounting for 20.7% of total turnover, followed by pharmaceuticals at 16.3% and textiles at 10.2%.

Most sectors posted positive returns during the week. The paper sector led gains with a 5.3% increase, while IT and ceramics rose 3.3% and 3.2% respectively. In contrast, the jute sector emerged as the worst performer, declining 3%.

The Trading Corporation of Bangladesh (TCB) incurred a deficit of around Tk1,412 crore in fiscal year 2024-25 from subsidised sales of sugar, soybean oil and lentils under its family card and open truck programmes.

The commerce ministry has written to the finance ministry seeking release of funds to cover the shortfall.

In a letter today (22 February), Commerce Secretary Mahbubur Rahman said the import and local procurement costs and sale prices of TCB products for FY25 were properly audited. According to the audit report, the subsidy claimed by TCB is justified.

To support low-income groups, the government supplies essential commodities once a month at subsidised prices through TCB family cards. Cardholders receive two litres of soybean oil, two kilograms of lentils, one kilogram of sugar and five kilograms of rice. Additional items are sometimes included.

According to TCB data, soybean oil is sold at Tk100 per litre, sugar at Tk70 per kilogram and lentils at Tk60 per kilogram. However, procurement costs, storage expenses and dealer commissions result in total costs exceeding the selling price.

TCB currently has more than 4.5 million family cards. In special situations, products are also sold through open trucks, although prices in truck sales are slightly higher.

A senior TCB official said the total annual subsidy, including Ramadan items, rice and onions, amounts to around Tk3,500 crore. However, soybean oil, sugar and lentils are the main items under the family card scheme, and their subsidy is calculated separately.

He warned that without timely release of subsidy funds, it would not be possible to procure these essential items on schedule.

Tianford Bangladesh Textile Co Ltd, a China (Hong Kong)-based firm, is set to establish a readymade garment (RMG) manufacturing unit inside Nilphamari’s Uttara Export Processing Zone (EPZ) with an investment of $19.59 million.

The company signed a land lease agreement with the Bangladesh Export Processing Zones Authority (Bepza) yesterday at the Bepza Complex in Dhaka, according to a press release.

The project is expected to create employment opportunities for 3,254 Bangladeshi nationals.

On 24,000 square metres of land, the company will manufacture 7 million pieces of woven and knit garments annually, including bottoms, shirts, jeans, jackets, and sweaters.

The products will be exported to major global markets, including the USA, Canada, Japan, China, Australia, Brazil, the UK, and the EU.

The company will manufacture 7 million pieces of woven and knit garments annually, including bottoms, shirts, jeans, jackets, and sweaters
Md Tanvir Hossain, executive director for investment promotion of Bepza, and Ge Zhenyu, nominee director of Tianford Bangladesh Textile, signed the agreement on behalf of their respective organisations.

Bepza Executive Chairman Major General Mohammad Moazzem Hossain, who witnessed the signing, said the new government has assumed office with a strong focus on promoting investment.

He reaffirmed Bepza’s commitment to providing modern, investor-oriented services and encouraged the firm to source quality raw materials locally to strengthen domestic industries.

Ge Zhenyu expressed confidence in Bangladesh as an attractive destination for global investors. He informed that factory construction will commence in April this year, with exports expected to begin next year.

From Bepza, Md Imtiaz Hossain, member (engineering); ANM Foyzul Haque, member (finance); Md Tanvir Hossain, executive director (investment promotion); and Mohammad Anamul Haque, project director, were also present at the signing ceremony.

The dollar declined in volatile trading on Friday and was poised to snap a four-session streak of gains after the US Supreme Court struck down President Donald Trump’s sweeping tariffs based on a national emergency law.

The justices, in a 6-3 ruling authored by conservative Chief Justice John Roberts, upheld a lower court’s decision that the Republican president’s use of this 1977 law exceeded his authority.

The dollar was initially higher on the day after US economic data showed a higher-than-anticipated inflation reading while economic growth fell well short of expectations.

The Commerce Department said gross domestic product increased at a 1.4 percent annualized rate last quarter, much lower than the 3 percent growth pace estimate of economists polled by Reuters. Analysts noted, however, that the number was negatively impacted by the government shutdown.

“The majority of this week has been dollar positive, except for right now, and why I’d say the ‘sell America’ trade got a little ahead of itself,” said Erik Bregar, director of FX and precious metals risk management at Silver Gold Bull in Toronto.

“We have to see how Trump responds, how (Treasury Secretary Scott) Bessent responds, how the administration responds. We’ve heard all this talk that they have other ways of instituting these tariffs.”

Trump said in a briefing after the ruling that he would sign an order to impose a 10 percent global tariff under Section 122 of the 1974 Trade Act and would initiate several other investigations as well, while Bessent said that estimates by the department show the use of section 122 authority, combined with potentially enhanced section 232 and section 301 tariffs will result in virtually unchanged tariff revenue in 2026.

Separately, the personal consumption expenditures price index, excluding the volatile food and energy components, rose 0.4 percent, the Commerce Department said, after an unrevised 0.2 percent gain in November and above the 0.3 percent estimate. It rose 3 percent in the 12 months through December after a 2.8 percent climb in November.

Bangladesh’s economy last week witnessed a mix of post-election gains in the capital market alongside data underscoring underutilised development spending. While investors regained confidence following the national polls, systemic challenges in fiscal management and trade readiness remain pressing.

The following is a recap of major stories covered by Star Business:

Rebuilding business confidence cannot wait (Feb 15)
Business leaders and economists urged the government to restore investor trust to revitalise the private sector. They noted that persistent law-and-order challenges and weak institutional coordination have eroded confidence, making immediate policy interventions essential for a sustainable turnaround.

Stocks jump to 18-month high after vote (Feb 16)
The Dhaka Stock Exchange surged following the national election, with indices hitting an 18-month high. Investors displayed renewed optimism as political clarity returned, sparking a buying spree across sectors and sharply increasing daily turnover.

US trade deal overshadows Bangladesh’s economic freedom (Feb 17)
A newly signed trade agreement with the US offers a 19 percent reciprocal tariff but imposes restrictive clauses. Critics argue that the requirement to use US-origin cotton for duty-free access may benefit Washington more than Dhaka’s garment industry.

Development spending plunges to 16-year low (Feb 17)
Implementation of the Annual Development Programme fell to a 16-year low due to political unrest and bureaucratic delays. Only a fraction of the allocated budget was utilised, threatening GDP growth targets and slowing critical infrastructure projects nationwide.

Interim govt stopped macro bleeding but couldn’t reignite growth (Feb 18)
While the interim administration stabilised foreign exchange reserves and narrowed the current account deficit, industrial growth remains stagnant. High inflation and energy shortages continue to hamper manufacturing, preventing full recovery.

Legal fights heat up in telecom sector (Feb 19)
Major telecom operators are locked in intensifying legal disputes with the regulator over audit claims and spectrum fees. These courtroom battles risk disrupting future investment and service quality in one of the country’s most dynamic sectors.

‘Substantial gaps’ found in LDC readiness (Feb 20)
A recent assessment revealed significant shortcomings in Bangladesh’s preparation for graduating from Least Developed Country (LDC) status. Experts warned that without addressing supply chain weaknesses and securing GSP+ benefits, the export sector faces a steep competitive cliff.

Rising costs of consumer goods and industrial materials are being driven by delays and lack of coordination at Chattogram Port, Finance and Planning Minister Amir Khasru Mahmud Chowdhury said today (20 February).

"These inefficiencies are affecting both industrial production and market prices. If port problems are addressed, cargo clearance will speed up and additional costs will decrease," he said after a meeting with the Port Users Forum at his Mehedibagh residence.

The meeting was attended by representatives from the port, customs, transport workers, and other relevant stakeholders.

The minister said each point was discussed in detail, examining where and why problems occur and the reasons behind rising costs.

Some issues were resolved immediately, while a few require further inter-ministerial coordination and will take several more days to finalise.

Khasru highlighted that different stakeholders at the port operate independently, creating a fragmented system. "Each group is running its own operations, forming separate zones of control. Responsibilities are unclear, which contributes to rising costs," he said.

He added that delays in cargo clearance, extra charges, and procedural complexities are significant factors behind increased costs.

"These additional expenses are being passed on to consumers and are reflected in both industrial production and market prices," he said.

"The impact is not limited to consumer goods. Almost all imported products, including raw materials used in industries, are affected, and the public bears the burden of these additional costs. With Ramadan approaching, special emphasis is being given to faster clearance of essential items. Delays in delivery could push up market prices, while faster clearance would help reduce these extra costs," he said.

He also said the government has taken initiatives to ease the pressure on the national economy caused by port inefficiencies.

"Some solutions have already been implemented today, and others will be finalised through discussion. We hope effective measures will be taken very soon. Once port operations speed up, cargo clearance will improve, production costs will decrease, and market price pressures will ease," Khasru added.

Sri Lanka's 2022 sovereign default offers a cautionary lesson for Bangladesh as external borrowing rises and large infrastructure projects expand.

A recent study by researchers from SOAS University of London, comparing the two countries, warns that similar policy patterns could heighten long-term risks if corrective steps are delayed.

From around 2008, both Bangladesh and Sri Lanka shifted towards infrastructure-led growth, investing heavily in ports, highways and energy facilities, often financed through external partners.

In Sri Lanka's case, about 65% of foreign debt accumulated during that period was linked to energy projects, many of which were underutilised and generated limited economic returns.

The result was rising debt without sufficient growth to service it.

The study notes that Bangladesh's external debt has grown rapidly in recent years, alongside significant cost escalations in major infrastructure projects.

Projects awarded through non-competitive government-to-government arrangements were found to be substantially more expensive than those procured through transparent bidding.

Weak oversight and overpricing increase repayment burdens over time.

One key lesson from Sri Lanka is that crises can emerge suddenly.

Gradual increases in debt indicators may appear manageable, but vulnerability surfaces when a country struggles to meet interest or principal payments on time.

The researchers warn that Bangladesh could face a more exposed period between 2028 and 2032 if governance weaknesses persist.

To avoid such a scenario, the study recommends tighter expenditure control, stronger domestic revenue mobilisation and improved project governance.

Ensuring competitive procurement, limiting cost overruns and strengthening institutional oversight would help contain debt risks and protect fiscal stability.

The Dhaka Stock Exchange (DSE) extended its losing streak today (19 February), marking the fourth consecutive session of decline since the national election.

Over the four trading sessions, the benchmark DSEX shed a cumulative 135 points, reflecting persistent selling pressure and cautious investor sentiment.

Today, the DSEX fell 53 points to close at 5,466. The blue-chip DS30 index dropped 12 points to 2,098, while the Shariah-based DSES declined 10 points to end at 1,095.

Turnover on the premier bourse plunged 40.17% to Tk560 crore, down from Tk936 crore in the previous session, indicating weaker market participation. Of the 392 issues traded, only 46 advanced, while 313 declined and 33 remained unchanged, underscoring the broad-based downturn.

Market participants attributed the slump to investor caution as they assessed the post-election political and economic landscape.

Many investors remained on the sidelines, awaiting clearer signals on policy direction and the formation of a new securities commission.

The lack of clarity regarding regulatory leadership and potential reforms continued to weigh on sentiment.

Analysts said uncertainty over possible regulatory changes and expectations surrounding appointments at the securities regulator contributed to subdued trading activity. Institutional investors, in particular, appeared reluctant to take fresh positions without greater visibility on policy continuity and market-stabilisation measures.

Over the past year, prolonged political uncertainty and regulatory decisions that failed to restore investor confidence have driven a sustained market downturn. A significant number of retail investors exited the market, while institutional and high-net-worth investors largely stayed inactive, leading to notable declines even in fundamentally strong stocks.

All major large-cap sectors closed in the red. The NBFI sector posted the steepest loss, falling 1.75%, followed by Engineering (1.46%), Fuel & Power (1.23%), and Telecommunication (1.20%). Pharmaceuticals declined 0.94%, Food & Allied lost 0.67%, and the Bank sector edged down 0.12%.

Block market transactions accounted for 3.5% of total turnover, reflecting limited negotiated large-volume trades.

Analysts believe the market may gradually stabilise in the coming months if policy consistency and investor-friendly measures are ensured.

Robi Axiata, the country's second-largest mobile network operator, posted a net profit of Tk937 crore in 2025 – its first annual profit since listing on the stock exchange five years ago. The earnings represent a 33.3% year-on-year growth compared to 2024.

Riding on improved profitability, the board recommended a 17.5% cash dividend – Tk1.75 per share – the highest since its market debut in 2020. The proposed payout accounts for 97.8% of the company's total profit for the year. In 2024, Robi declared a 15% cash dividend.

The board approved the financial statements and dividend at a meeting held today (19 February).

Managing Director and CEO Ziad Shatara said that despite a continued decline in voice revenue, the operator managed to deliver positive revenue growth driven by strong expansion in data services. Growth was supported by a substantial increase in data and 4G users, alongside higher data consumption per subscriber.
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He noted that sustained high inflation and challenging macroeconomic conditions constrained subscriber spending, moderating overall revenue growth. He also highlighted that 62% of total revenue was contributed to the government exchequer through various taxes, describing the tax regime as excessively burdensome for industry progress.

However, with nearly 70% of active subscribers now using 4G, Shatara said Robi is positioning itself as the preferred operator for digitally savvy consumers.

The company credited its operational excellence strategy for strengthening financial resilience amid a challenging revenue environment. Disciplined capital allocation ensured network investments aligned with demand growth, service quality improvements, and long-term efficiency gains.

In 2025, Robi deployed an additional 4G sites across 40 districts, expanding coverage in underserved areas.

According to a press release, total revenue rose marginally by 0.4% year-on-year to Tk9,992.2 crore. While voice revenue declined 2.9%, data revenue grew 5.1% compared to 2024. Earnings per share stood at Tk1.79.

Total capital expenditure reached Tk1,304.1 crore during the year. In the fourth quarter (October–December), revenue rose 2.9% quarter-on-quarter to Tk2,584.9 crore.

At the end of 2025, Robi's active subscriber base stood at 5.74 crore. Data subscribers reached 4.45 crore, while 4G subscribers totalled 3.99 crore. Data users accounted for 77.5% of active subscribers, and 69.5% were 4G users – the highest proportions among operators in the country.

The operator's network now includes over 19,000 4G sites, achieving 98.98% population coverage. As the first operator to launch 5G services in Bangladesh, Robi said it continues to build the ecosystem necessary for broader 5G expansion.

Robi Axiata is a public limited company majority-owned (61.82%) by Axiata Group Berhad. India-based Bharti Airtel holds 28.18% of the shares, while the remaining 10% is owned by public shareholders.

AGM

The annual general meeting (AGM) has been scheduled for 22 April, while the record date has been fixed for 16 March to determine eligible shareholders.

According to its price-sensitive information, the company's net asset value (NAV) stood at Tk69.86 billion, with NAV per share rising slightly to Tk13.34 from Tk13.08 at the end of 2024.

Its net operating cash flow per share also increased to Tk9.04, up from Tk8.83 in 2024.

Last year, Robi Axiata Limited secured a no-objection certificate from the Bangladesh Bank in favour of SmartPay Limited to operate as a Payment Service Provider (PSP).

SmartPay Limited, a wholly owned subsidiary of Robi Axiata, is a private company limited by shares incorporated under the Companies Act, 1994. Its principal activity is to provide fintech-driven electronic payment services, including bill payments and other related services.

Aziz Mohammad Bhai, a sponsor director and chairman of Olympic Industries Limited, has announced his intention to purchase 1 crore shares of the company through the block market of the Dhaka Stock Exchange (DSE).

According to a disclosure published on the DSE website today (19 February), he plans to acquire the shares at the prevailing market price within the next 30 working days.

The transaction will be executed through the block market, a platform generally used for large-volume trades between institutional and strategic investors, helping to avoid sharp price fluctuations in the regular trading session.

Following the announcement, Olympic Industries' share price rose 2.10% to Tk155.30 apiece on the Dhaka bourse, reflecting a positive market response to the sponsor director's move.

Market analysts say such declarations are often viewed as a sign of confidence in a company's fundamentals and future prospects.

At the prevailing price of around Tk155 per share, the proposed acquisition of 1 crore shares would amount to approximately Tk155 crore. The sizeable investment is expected to increase the sponsor director's shareholding in the company, although details of his existing stake were not disclosed in the filing.

Olympic Industries is the country's largest branded biscuit manufacturer and a leading player in the fast-moving consumer goods sector. It produces a wide range of biscuits, confectionery and bakery products, supported by a strong distribution network in both domestic and export markets.

According to its financial statements for the July-December period of 2025, the company posted revenue of Tk1,548 crore, up from Tk1,490 crore in the same period a year earlier. Its earnings per share stood at Tk5.99, compared to Tk5.82 previously. As of December 2025, its net asset value per share was Tk65.34.

Gold prices rose more than 1 percent on Friday, supported by weaker‑than‑expected US GDP data, while investors digested President Donald Trump’s announcement of fresh global tariffs following the US Supreme Court’s tariffs ruling.

Spot gold was up 1.5 percent at $5,071.48 an ounce by 02:08 p.m. (1908 GMT). US gold futures for April delivery settled 1.7 percent higher at $5,080.90.

“It’s hard to see the president collecting his toys and going home; he will try to re-establish tariffs using other statutes which will promote volatility,” said Tai Wong, an independent metals trader.

Medium-term uncertainty won’t deter gold bulls, Wong added. Trump said that he would impose a 10 percent global tariff for 150 days to replace some of his emergency duties that were struck down by the US Supreme Court.

The Supreme Court declared illegal his broad global tariffs imposed under the International Emergency Economic Powers Act, ruling that he had overstepped his authority under that law.

Data showed US economic growth slowed sharply to a 1.4 percent annualized rate in Q4, well below economists’ forecast of 3 percent, as the government shutdown and softer consumer spending hit activity.

Separately, the Fed’s preferred inflation gauge, the Personal Consumption Expenditure index, rose 0.4 percent in December, above expectations for a 0.3 percent increase.

“(The data) shows inflation is still present in the marketplace ... but with GDP coming in lower, it suggests the economy is not close to a turning point. There are still many unknowns and uncertainties around the US economy, and that is supportive for gold,” said RJO Futures senior market strategist Bob Haberkorn.

Traders still expect two 25-basis-point rate cuts by the Fed this year, with the first expected in June.

Gold, considered a safe-haven asset when there is geopolitical and economic uncertainty, also tends to do well when interest rates are low.

A landmark ruling by the US Supreme Court torpedoing Trump tariffs effectively upsets Bangladesh's trade arrangements with the United States, prompting calls for a cautious reassessment of the recently signed bilateral deal.

The media-highlighted "blow" to President Donald Trump's tariff regime -- which threw world trade order into a vortex -- comes close on the heels of Bangladesh electing a new government. Business community has been requesting it to go for a review and renegotiation of the trade deal signed by the immediate-past interim government.

Business leaders and economists told The Financial Express Saturday that the verdict has effectively altered the legal foundation of the reciprocal tariff regime on which much of the Bangladesh-US agreement was based.

They note that commitments reportedly linked to the tariff framework -- including large-scale import arrangements ranging from US wheat to Boeing aircraft -- may now need to be reviewed if they were tied to the invalidated measures.

In this evolving situation, analysts say, Bangladesh must closely monitor developments in Washington and carefully evaluate its obligations under the agreement. With the legal and policy context shifting rapidly, a measured and legally sound reassessment may be essential to safeguard the country's trade interests.

Dr Zaidi Sattar, Chairman of Policy Research Institute of Bangladesh (PRI), says as of now, reciprocal tariffs come to "naught" as a result of the Supreme Court judgment. But RT is replaced with a 10-percent levy for 150 days.

As for the US-BD Reciprocal Trade Agreement, 19-percent RT will be replaced with 10-percent tariff. What is not clear as yet is if the 10 per cent will be on top of existing tariffs, which is 16.5 per cent on RMG and footwear.

"Then the new situation gets worse for BD, except that the saving grace is the 'Buy American Cotton Act 2025', which allows duty-free export of apparel that uses US cotton and MMF."

He says, "If anything, it creates a messy situation on two grounds: what about refund of tariff rev already collected, and what happens to the US-BD Reciprocal Trade Agreement"

Shovon Islam, Managing Director of Sparrow Group, says the reciprocal tariffs became "null and void" following the American apex court's decision.

"The President has to follow the Supreme Court's ruling. There are no ifs or buts," he notes.

According to the apparel exporter, if any agreement entered into by a US government department -- including the Office of the US Trade Representative (USTR) -- was based on modifying or applying the reciprocal tariffs, then that specific portion of the agreement would also lose its legal standing.

However, he clarifies that other components of trade agreements not directly linked to the reciprocal tariffs, such as commercial buying and selling commitments, would remain valid unless separately challenged.

Mr Islam notes that, based on information from US business partners, the Bangladesh-US trade agreement has not yet come into effect. As the deal-required exchange of formal notifications remains incomplete, its current status is still unclear.

He adds that buyers who have already paid tariffs are preparing to seek refunds from the US Treasury if the reciprocal duties are formally withdrawn.

In his view, any attempt by President Donald Trump to reintroduce similar tariffs would require fresh legislation in Congress -- a process he describes as lengthy and politically challenging.

Meanwhile, corporate America is a making a demand for US$130 refund of import tariffs already paid under the new tariff regime.

Dr Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), says the Supreme Court ruling leaves limited room for ambiguity from a legal perspective, although its practical implications remain uncertain.

The reciprocal tariffs were introduced under the International Emergency Economic Powers Act (IEEPA), but the court held that the statute does not authorise tariff measures of unbounded scope, magnitude and duration, given Congress's constitutional primacy in tariff-setting.

For Bangladesh, he mentions, the immediate implication is that the bilateral arrangement now stands on shifting ground.

"A large part of the agreement's logic was anchored to a specific tariff regime," he observes. And if that regime's legal basis is removed, the agreement must be reviewed clause by clause to determine what remains enforceable and what has become redundant.

The economic analyst adds that the court order would likely lead to the abolition of reciprocal tariffs, but bilateral agreements already concluded would not automatically become void. Determining which provisions are directly linked to the reciprocal tariffs will require careful legal interpretation.

He also notes that the existing 19-percent tariffs on Bangladeshi exports -- reportedly negotiated down from a proposed 37 per cent under reciprocal terms -- could be reduced to 10 per cent in line with the newly announced uniform tariff applied to all countries.

Prof Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), says the core justification for the reciprocal trade agreement has weakened significantly.

"If the original legal basis of those tariff measures has been cancelled, then the rationale for the agreement also becomes questionable."

He suggests that Bangladesh reassess the deal in the light of the changed policy landscape in Washington. The agreement is scheduled to take effect two months after the exchange of formal notifications -- a process that has yet to be completed -- leaving room for further dialogue.

Mr Rahman argues that if the reciprocal tariff structure no longer stands, related commitments -- including expanded market access and other concessions -- may also warrant reconsideration.

However, he points out that the newly announced 10-percent additional tariff applies to all countries, meaning Bangladesh is not being singled out in the revised framework.

At the same time, he cautions that the US administration retains authority under Section 232 of its trade law to impose product- or country-specific tariffs on national-security grounds. If such measures are introduced, Bangladesh would need to continue negotiations accordingly.

He also questions the timing of the agreement, reportedly signed just two days before the national elections in Bangladesh, and calls for a transparent review by the newly elected government.

The newly sworn-in government faces a daunting economic landscape characterised by fragile macroeconomic stability, stagnant private investment, and a shrinking fiscal capacity, according to the Citizen's Platform for SDGs, Bangladesh.

The observations were shared at a media briefing titled "Starting Point of the New Government: An Economic Review," held at the BRAC Centre Inn, Dhaka today (19 February) where Towfiqul Islam Khan, additional research director at the Centre for Policy Dialogue (CPD), presented the findings.

The civil society platform emphasised that addressing these structural bottlenecks is critical for stabilising the economy and steering it back toward sustainability.

Towfiqul highlighted that despite a decline in global inflation, domestic levels remain stubbornly high.

The 12-month average inflation rate reached 8.77% in January, significantly exceeding the central bank's target of 7%.

Slow-paced wage growth

Towfiqul noted that while food inflation showed slight signs of easing, non-food sectors provided little relief.

Furthermore, the slow pace of wage growth continues to erode the real income of the working class, worsening the cost-of-living crisis.

The event also pointed out that while a relatively stable exchange rate and a modest rise in foreign exchange reserves have reduced some pressure on the balance of payments, other risks remain.

The government's heavy reliance on bank borrowing to finance the budget deficit, combined with Bangladesh Bank's foreign currency collection from the open market, is contributing to an increased money supply.

The ongoing stagnation in private investment has also led to a decline in employment.

According to a presentation shared during the event, approximately 21 lakh jobs were lost during the first half of the 2025 fiscal year.

New loans to repay old

Highlighting the shrinking fiscal space, Towfiqul stated that internal revenue collection is no longer sufficient to cover recurring expenditures, leading to an increasing trend of taking out new loans to repay existing debt.

Weak revenue collection and pressure of expenditures outside the Annual Development Programme (ADP) are further constricting policy options.

Notably, according to the CPD researcher, ADP spending in fiscal years 2025 and 2026 has dropped to historically low levels.

In light of these challenges, the platform recommended the adoption of an economic stabilisation plan, including strict budget ceilings for the remainder of the current fiscal.

It also urged the formulation of a realistic budget framework for the next fiscal, the formation of a multilateral development forum, and the implementation of a reform roadmap with specific timelines.

Citizen's Platform for SDGs, Bangladesh states that achieving macroeconomic stability will be difficult without a clear LDC graduation strategy and a medium-term plan based on realistic targets.

President Donald Trump said Saturday he is raising the worldwide tariffs on goods entering the United States from 10 percent to 15 percent "effective immediately," a day after the Supreme Court largely struck down his sweeping duties.

Trump said on his Truth Social platform that after a thorough review of Friday's "extraordinarily anti-American decision" by the court to rein in his tariff program, the administration was hiking the import levies "to the fully allowed, and legally tested, 15% level."

Expatriate Bangladeshis have sent over $2 billion in remittances during the first 18 days of February, as money transfers surged ahead of Ramadan and Eid.

According to data released by Bangladesh Bank on Thursday (Feb 19), if this upward trend continues, total remittances for the month are expected to cross the $3 billion milestone.

Central bank statistics show that January 2026 saw an inflow of $3.17 billion, marking it as the third-highest monthly total in the country's history. The current fiscal year (FY 2025–26) has shown robust growth, with total remittances reaching $21.56 billion between July 1 and February 18.

This represents a significant 22.3 percent increase compared to the $17.63 billion received during the same period of last fiscal year 2024-25.

The historical peaks for monthly remittances remain:

$3.29 billion (March 2025 – fueled by Eid-ul-Fitr)

$3.22 billion (December 2025)

$3.17 billion (January 2026)

Impact on Reserves

Economists believe the surge in formal channel transfers is a result of a stabilized exchange rate and a decrease in illegal hundi activities following the political transition in August 2024. This influx is providing a much-needed boost to the nation's foreign exchange reserves.

As of February 17, the country's gross reserves stood at $34.54 billion. However, according to the IMF’s BPM-6 calculation method, the net reserves are currently valued at $29.86 billion.

Banking officials and experts point to two primary drivers:

Ramadan Preparation: Families in Bangladesh face higher expenses during Ramadan, prompting expatriates to send more money home.

Increased confidence in the banking sector and a stable dollar rate have encouraged migrants to shun illegal channels in favor of official ones.