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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

However, the broader picture remains mixed.

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

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

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

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

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

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

Garment sector drives recovery

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

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

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

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

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

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

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

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

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

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

Uneven recovery beyond garments

Beyond garments, however, the export earnings remain uneven.

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

Market-wise, the recovery appears broad-based.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Supply-chain disruption

Rice shipments are already facing supply-chain bottlenecks.

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

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

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

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

Farmers cut planting

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tech's AI rally

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

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

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

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

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

US stock futures rose.

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

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

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

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

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

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

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

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

Key figures at 0300 GMT

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

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

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

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

Shanghai - Composite: DOWN 0.1 percent at 4,104.67

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

Pound/dollar: DOWN at $1.3476 from $1.3489

Dollar/yen: UP at 160.34 yen from 160.23 yen

Euro/pound: DOWN at 86.58 pence from 86.71 pence

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

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

Bangladesh is facing a deep economic crisis and may need to endure "two difficult years" to recover, Finance Minister Amir Khosru Mahmud Chowdhury warns.
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As such, he says, the government is likely to take measures that may not be popular.

During discussion on the motion of thanks on the President's address in parliament on Thursday, the minister said, "We may have to endure hardship for two years. The next two years will be difficult. We will have to make many decisions and steps some of which may not be popular."

Presenting what he describes as a grim picture of the economy, the finance minister said the country's tax-to-GDP ratio has fallen below 7.0 per cent, the lowest in South Asia. The poverty rate stands at 29.93 per cent, prompting him to remark: "Look at the condition we are in now in terms of the economy."

He further mentions that capital-machinery imports, which were 53 per cent during the last tenure of the Bangladesh Nationalist Party, have dropped sharply to 14.5 per cent. Private -sector credit growth has also declined to 6.0 per cent compared to 18.2 per cent in 2005-06. Default loans in the banking sector have surged to 30 per cent. "When a country's banking sector has this scale of non-performing loans, the economy almost grinds to a halt," he tells the newly elected parliament after a political changeover. Politics

The custodian of exchequer further notes that the government currently provides annual subsidies amounting to Tk 360 billion, with an additional Tk 200-300 billion required this year.

External overdue payments stand at US$508 million for fuel imports and $737 million for gas.

The deposed administration has been accused of widespread "corruption, looting and money laundering" across the banking sector and other industries during its one-and-a-half-decade rule, he points out. A white paper was prepared under the interim government led by Muhammad Yunus to assess the state of the economy.

In addition, he informs the House, the Anti-Corruption Commission has filed cases against several industrial groups, Sheikh Hasina, and members of her family on allegations that include money laundering. Measures such as asset seizures and freezing of bank accounts have also been taken.

Despite these efforts, the economy has yet to recover during the post-uprising interim period.

The situation worsened further after the outbreak of the Iran War on February 28, which put additional pressure on sectors such as energy under the new BNP-led government.

Addressing the parliament, the finance minister says the economy has been pushed to such a low level that only tough reforms, deregulation, and structural changes could restore stability. Newspapers

He stresses that lifting the economy from its current situation would require decisive and, at times, unpopular policy measures over the coming years.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Apprehension over profit decline has been reflected in stock movements.

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

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

The government has authorised BRAC Bank PLC and Pubali Bank PLC to act as primary dealers (PD) for government securities for a three-year term, which will officially commence from the first working day of May this year.

The appointment was formalised by the Bangladesh Bank today (30 April) following a directive from the Finance Division of the Ministry of Finance.

With this appointment, both banks will now share the bidding obligations currently performed by 24 existing primary dealer banks in the auctions for government treasury bills and bonds.

As primary dealers, these banks are mandated to participate in auctions to help finance the government's budget deficit, ensuring a steady flow of funds through the sovereign debt market.

According to the letter from the finance ministry, the authorisation was granted under the provisions of the 'Guidelines for Enlistment and Operations of Primary Dealers in Government Securities, 2025 (Amended)'.

Islami Bank Bangladesh PLC, SBAC Bank and Standard Bank have been downgraded to the Z category for failing to declare dividends for the last two consecutive years.

According to the Dhaka Stock Exchange, brokerage firms and merchant banks have been instructed not to provide margin loans against the shares of these banks.

Following the downgrade, the share prices of the three banks fell sharply in the opening session today (30 April).

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

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

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

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

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

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

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

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

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

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

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

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

Bangladesh is set to issue its eighth government investment Sukuk worth Tk 59 billion (Tk 5,900 crore) to finance the construction and development of important bridges on rural roads under a revised project, according to an official statement.
FE

The seven-year “CIBRR-1 Socio-Economic Development Sukuk” will be issued under the project titled Construction of Important Bridges on Rural Roads (1st Revised). The prospectus and Shariah declaration of the Sukuk have already been finalised with approval from the Shariah Advisory Committee under the Debt Management Department.

The auction for the Sukuk will be held for the first time on May 13, 2026, using Bangladesh Bank’s in-house Shariah Securities Module (SSM) system.

According to the prospectus, Sukuk will be issued through an auction-based lease structure with a face value of Tk 59 billion (Tk 5,900 crore), maturing on May 14, 2033.

Investors will receive a total rental return of Tk 42.95 billion (Tk 4,295.20 crore) over seven years, equivalent to an annual return of 10.40 percent, payable on a semi-annual basis.

Banks and financial institutions having current or Al-Wadiah accounts with Bangladesh Bank will be eligible to participate directly in the auction. In addition, domestic and foreign individual investors, corporate bodies, investment companies, insurance companies, provident funds and deposit insurance funds may also participate through eligible banks and financial institutions maintaining accounts with Bangladesh Bank.

Investors will be able to submit bids online through the SSM system using their Sukuk Investor (SI) ID in multiples of Tk 10,000 between 10:00am and 3:00pm on May 13, 2026.

New investors must complete their SI ID registration through their respective banks by May 12, 2026.

The successful bidders will be informed of their allotted Sukuk amount through their respective accounts at 4:00pm on the auction day, the statement said.

Bangladesh government has sought extended financial and technical supports from foreign development partners to weather the economic shocks stemming from the Gulf crisis and to accelerate implementation of its election pledges, officials say.
FE

Formal requests for the support were despatched to a broad coalition of multilateral and bilateral lenders recently, officials from the Economic Relations Division (ERD) told the FE Saturday. The list of financiers includes the World Bank, the Asian Development Bank (ADB), Japan, the Asian Infrastructure Investment Bank (AIIB), German lender KfW, and the OPEC Fund for International Development (OFID).

The Finance Adviser to the Prime Minister, Dr Rashed Al Mahmud Titumir, sat with Bangladesh's development partners in Dhaka in the just-past last month to convince the development partners about the urgency. GeographicReference

At the meeting, some of the DPs assured of supporting the government in implementing its poll manifesto and overcome the exigencies, the ERD officials say.

The move comes as the government seeks to "weather the impact" of volatility in the Gulf region, which has significant implications for Bangladesh's energy costs and remittance inflows.

Beyond crisis management, the funding is intended to provide the fiscal space necessary to execute the socioeconomic promises laid out in the government's recent election manifesto.

"After the meeting, we have formally written to the DPs to help Bangladesh," says one official.

According to the ERD officials, the ADB and the WB have already assured of extending their budget support to Bangladesh amid the current gulf crisis.

Although the ADB earlier had assured of some US$750 million worth of budgetary support for Bangladesh within this fiscal year (FY), 2025-26, it now assured of enhancing the proposed financing to $1.0 billion following Bangladesh's request, says a senior ERD official.

The World Bank is expected to provide at least $500 million worth of budget support to help weather the Gulf crisis as well as meet the immediate needs of the newly elected government, especially for the social-safety-net programmes and reforms, he adds.

"In addition to our traditional bilateral and multilateral donors, we have already requested some non-traditional ones, including KFW, OFID, AIIB and Middle-eastern countries, to offer financial and technical supports to Bangladesh," the ERD official says.Financial

In a proactive bid to secure these commitments, Dr Rashed Al Mahmud Titumir held a high-level meeting with representatives of the development partners in Dhaka last month.

Sources privy to the discussions note that the Finance Adviser underscored the urgency of the situation, emphasizing the need for both concessional loans and technical cooperation to maintain the country's growth trajectory.

The ERD officials indicate that the requested support would be channeled into several key areas, including macroeconomic stabilization, offsetting the rising costs of fuel and commodities linked to the Gulf turmoil, advancing megaprojects and regional-connectivity initiatives in line with national development goals.

The government has also sought support in the social-safety-net programmes for ensuring the election manifesto's focus on poverty reduction and social protection, say the officials.

While the development partners have historically been supportive of Bangladesh's developmental journey, the scale of this coordinated request highlights the complexity of the current global economic climate, they add.

"The government is looking for a comprehensive partnership to not only overcome immediate hurdles but to build a more resilient Bangladesh," another ERD official says, indicating newer

"The discussions led by Dr Titumir were a crucial step in aligning our development partners with our national priorities."

The ERD is expected to engage in follow-up technical negotiations with individual lenders in the coming weeks to finalize the volumes and terms of the prospective aid packages, he adds.

US ​exports of liquefied natural gas to Asia jumped in April, with American producers helping offset reduced supplies ‌from Middle Eastern exporters as the Iran war curtailed output in the region, preliminary ship-tracking data from financial firm LSEG showed.

Nearly a quarter of all US LNG exports went to Asia during the month, marking a sharp increase since the conflict ​began in late February and underscoring the growing role of the US as a swing supplier amid elevated prices and strained ​global gas flows.

Shipments to Asia have risen more than 175 percent since the US and ⁠Israel launched strikes on Iran, climbing from about 970,000 metric tons in February to 1.99 million metric tons (MT) in ​March and 2.71 MT in April, the data show.

Asian spot LNG prices remained elevated. The Japan Korea ​Marker benchmark averaged $17.92 per million British thermal units (mmBtu) in April, down slightly from $18.27 in March but still about 17 percent above Europe’s TTF benchmark, which averaged $15.34 per mmBtu in April, down from $17.99 in March.

The increase in US shipments to Asia came ​even as overall LNG exports slipped from a record high in March, falling to 10.97 MT in April ​from 11.7 MT in March, LSEG data showed.

The decline was largely due to April having one fewer day than March ‌and ⁠delays in cargo loadings. Gas flows to US LNG export plants reached a record 18.8 billion cubic feet per day during April, up from the previous peak of 18.7 bcfd in February, according to LSEG.

The US shipped its first LNG from the Golden Pass terminal in April with a single cargo sent to Belgium. ​Golden Pass - a joint ​venture between QatarEnergy (QATPE.UL) and ⁠Exxon Mobil XOM.N - drew just under 300 million cubic feet per day of gas during the month but exported one cargo, which may have contributed to the ​gap between record feedgas demand and lower LNG exports.

Europe remained the top destination for ​US LNG, ⁠receiving 6.14 MT, or just under 56 percent of April exports, according to the data. Egypt was also an active buyer, importing about 710,000 metric tons of US LNG during the month, more than the total 500,000 metric tons ⁠shipped ​to Latin America.

One cargo was delivered to South Africa, a ​rare destination for US LNG. Nine LNG vessels that departed US ports in April were still seeking buyers, including two anchored near ​the Suez Canal, ship-tracking data showed.

An Iranian proposal on negotiations with the U.S. sent crude oil futures diving on Friday, ‌but prices remained on track for weekly gains, with Tehran still blocking the Strait of Hormuz and the U.S. Navy blocking exports of Iranian crude.

Brent crude futures for July settled at $108.17, down $2.23 a barrel, or 2.02%. West Texas Intermediate futures finished at $101.94 a barrel, down $3.13, or 2.98%.

Iran sent its latest proposal for negotiations with the United States to Pakistani mediators on Thursday, state news agency IRNA reported on Friday, a ⁠move that could improve prospects for breaking an impasse in efforts to end the Iran war.

Still, the Brent benchmark and WTI were poised for a 2.95% gain over the week. Brent's June contract hit $126.41 a barrel on Thursday, marking the highest level since March 2022, before ending the session down.

"This Iran proposal has given hope to the market that there is an off-ramp for the United States," said Phil Flynn, senior analyst with Price Futures Group.

Oil prices have been on the rise since the U.S. and Israel attacked Iran at the end of February, resulting in the closure of the Strait of Hormuz and the disruption of shipments of about a fifth of ‌the world’s ⁠oil and liquefied natural gas supply.

A ceasefire has been in place since April 8. UAE presidential adviser Anwar Gargash said on Friday Tehran could not be trusted over any unilateral arrangements it makes for the Strait of Hormuz, in a sign of deep mistrust on all sides.

By the end of trading on Friday, the oil market appeared to be accepting the uneasy truce in ⁠the conflict.

"The market rises and falls on the prospects of an outcome to the conflict," said John Kilduff, partner with Again Capital. "And right now the situation is a stalemate, at least until the market closes."

A senior official of Iran's Revolutionary Guards had ⁠threatened on Thursday "long and painful strikes" on U.S. positions if Washington renewed attacks on Iran, pushing oil prices to intraday peaks before retreating.

U.S. President Donald Trump was scheduled to receive a briefing on Thursday on plans for a ⁠series of fresh military strikes on Iran to compel it to negotiate an end to the conflict, a U.S. official told Reuters.

Washington did not immediately announce any details of its plans.

The Bangladesh Bank (BB) has waived the requirement to maintain provisions against funds of banks and non-bank financial institutions stuck in five merging shariah-based lenders.

The decision was taken at a recent internal meeting of the central bank, officials familiar with the matter said, at a time when more than Tk 15,000 crore remain tied up in the troubled institutions.

As these funds have not been recovered for a prolonged period, the regulator has lifted the requirement to maintain provisions against them, they added.

The five merging banks are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and Exim Bank. They were brought under the merger process by the interim government through the Bank Regulation Ordinance, 2025.

Around Tk 10,000 crore of the stuck funds belong to Islami Bank Bangladesh alone.

Banks are required to set aside 0.5-5 percent of operating profit against general category loans, rising to 20 percent for substandard loans, 50 percent for doubtful loans, and 100 percent for bad or loss category loans.

Initially, the BB’s bank supervision departments and the financial institutions and markets department had instructed banks to maintain provisions against funds stuck in the troubled banks.

The Bank Resolution Department (BRD) later clarified that such provisioning would not be required, as the funds fall under a specific resolution framework.

“The funds are not considered a total loss. Banks may receive shares after a certain period or recover the money with profit after five years,” a central bank official said, adding that the BRD has provided assurances in this regard.

Affected institutions are expected to either recover the money directly or receive equivalent value through long-term fixed deposits or shares, said the official.

The five banks were previously controlled by politically connected figures. During the Awami League-led government, Exim Bank was under Nazrul Islam Mazumder, former chairman of the Bangladesh Association of Banks. The other four were controlled by family members of Mohammed Saiful Alam, chairman of S Alam Group.

Allegations of widespread irregularities and fund embezzlement during that period led to severe liquidity crises, leaving the banks unable to repay depositors and institutional lenders.

As of September 2024, the total investment or loans of those five banks stood at Tk 1,92,787 crore, while total deposits stood at Tk 1,58,918 crore, BB data show.

Japanese Prime Minister Sanae Takaichi vowed on Saturday to strengthen bilateral ties with Vietnam, with energy cooperation and critical minerals at the forefront, during a meeting with Vietnamese Prime Minister Le Minh Hung.

The pledge came as new Japanese investment in Vietnam fell about 75% year-on-year to $233 million in the first quarter, even as bilateral trade rose 12.3% to $13.7 billion over the same period, according to Vietnamese government and customs data.

The two leaders discussed ways to deepen the Comprehensive Strategic Partnership established in 2023, focusing on energy, critical minerals, artificial intelligence, semiconductors and space.

"The two sides identified economic security as a new priority area for bilateral cooperation," Takaichi told reporters after the meeting.

"With regard to critical minerals... both sides agreed to strengthen close coordination to ensure stable supplies and reinforce supply chains," she added.

In a joint move, Vietnam and Japan signed six agreements encompassing infrastructure, climate action, agriculture, technology, digitalisation and space cooperation.

Japan remains one of Vietnam's largest foreign investors, with many Japanese multinationals operating large manufacturing facilities in the country.

Vietnam has been seeking support from Japan and other countries for oil supplies as conflict in the Middle East drives prices higher and disrupts supply chains.

Under the $10 billion Power Asia Initiative to support Asian countries' energy self-reliance, Japan will assist in arranging crude oil supplies for Vietnam's Nghi Son Refinery and Petrochemical Complex, Hung said.

Takaichi was also set to meet Vietnam's Party Secretary and President To Lam on Saturday afternoon and deliver a keynote speech at Vietnam National University, marking a decade since former Prime Minister Shinzo Abe introduced Japan's "Free and Open Indo-Pacific" strategy.

Her address is expected to emphasise autonomy and resilience for regional nations.

Vietnam supports Japan's regional initiatives, including the Free and Open Indo-Pacific Vision, aligned with the ASEAN Outlook on the Indo-Pacific, in accordance with international law and "contributing positively to peace, stability, cooperation and development in the region and beyond," Hung said.