The Dhaka Stock Exchange (DSE) extended its rally for the second consecutive session today (24 November), with renewed investor confidence and expectations of fresh government-backed support lifting the market from a prolonged oversold phase. 

The benchmark DSEX index jumped 109 points to close at 5,025, while the blue-chip DS30 rose 43 points to 1,926. The Shariah-compliant DSES index gained 25 points to finish at 1,053.

Turnover climbed to Tk636 crore – a 65% increase from Tk386 crore in the previous session – reflecting a sharp rise in investor participation. Of the 391 traded companies, 359 advanced, 22 declined and 10 remained unchanged, signalling broad-based gains across the market.

Analysts noted that positive market breadth indicated renewed confidence among both institutional and retail investors.

Investor sentiment received a boost after the government announced a Tk1,000 crore allocation to the state-owned Investment Corporation of Bangladesh (ICB) to help stabilise the market. 

ICB Chairman Prof Abu Ahmed told The Business Standard that a new BO account had been opened to purchase shares using the fund. “After 2pm today [yesterday], some shares were bought through this account,” he said. 

He added that a progress report on the utilisation of the investment would be submitted to the government after three months.

The loan has been provided at 5% interest with a 10-year tenure and is restricted solely to share purchases. Prof Abu Ahmed also noted that ICB had originally sought Tk13,000 crore in government support to help stabilise the capital market.

The market had become significantly oversold following weeks of consecutive price declines. Many fundamentally strong stocks are now trading at undervalued prices, prompting cautious yet opportunity-seeking investors to take new positions in anticipation of future gains. 

Market insiders noted that institutional investors have also become more active, further supporting the market’s recovery. Analysts said that expectations regarding the upcoming national elections may also positively influence investor sentiment, as political clarity often encourages stronger market participation.

Several analysts, speaking on condition of anonymity, noted, “The closer the election gets, the more investors are likely to return to the market. Once political stability returns, the market is expected to gradually recover and perform better.” 

Analysts further highlighted that the current earning yield of equities is significantly higher than treasury bills and bonds, creating a favourable incentive for investors to shift funds into equities in the coming weeks.

Market observers noted that the recent downturn was not driven by political uncertainty alone. The introduction of new margin loan regulations forced many investors into mandatory sell-offs, intensifying price declines and adding pressure to the broader market.

Sector performance and top movers

Among the top gainers, Peoples Leasing rose 10%, followed by IFIC Bank and Ring Shine Textiles, both up 10%. On the losing side, Monospool Bangladesh fell 5.08%, Bangladesh Welding dropped 3.12% and Western Marine Shipyard declined 2.27%.

All major large-cap sectors closed higher. Non-bank financial institutions posted the highest gain at 4.08%, followed by Engineering (2.29%), Food & Allied (2.15%), Banking (2.00%), Pharmaceuticals (1.76%), Fuel & Power (1.71%) and Telecommunications (1.00%).

Block trades accounted for 5% of turnover, with Simtex Industries, up 9.9%, being the most traded stock, generating Tk20 crore.

The Chittagong Stock Exchange mirrored the upbeat mood, with the CSCX index rising 132 points to 8,564 and the CASPI gaining 234 points to close at 13,911.

Source: The Business Standard

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The accolade highlights the bank’s execution excellence and pioneering role in Bangladesh’s investment landscape through its fully digitalised PrimeInvest wealth product suite.

PrimeInvest offers capital-protected, Shariah-compliant, and income-focused products tailored for women, non-resident Bangladeshis, youth, and values-driven investors. Through the country’s first capital market segment offerings, such as PrimeInvest Women, Probashi, Youth, and Shariah, PBIL has broadened access, diversified participation, and raised the bar for inclusive portfolio management in Bangladesh, reads the statement.

Source: The Financial Express

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Khulna Power Company has signed an agreement with Turkey’s Aksa Enerji Uretim AS to sell its second power plant – an 115MW facility that has remained non-operational since March 2024 due to the non-renewal of its power purchase agreement with the government.

The company disclosed the agreement in a price-sensitive statement filed with the Dhaka Stock Exchange (DSE) today (23 July). However, it did not disclose the transaction value.

Following the announcement, Khulna Power’s share rose by 2.63% to reach at Tk11.70.

This marks Khulna Power’s second major divestment in recent years. Earlier, the company inked a deal with US-based Excelerate Global Operations LLC to sell its first 110MW barge-mounted power plant for $15 million (approximately Tk130 crore).

At present, Khulna Power’s only revenue-generating asset is its 150MW United Payra Power Plant, in which it holds a 35% stake.

Source: The Daily Star

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Logo of Islami Bank. Photo: Collected

Islami Bank topped the gainers’ list for the second consecutive session today (30 June), with its share price rising by 9.76% to close at Tk40.50 on the Dhaka Stock Exchange (DSE), despite the bank’s failure to publish its annual or quarterly financial results.

The rally follows a 9.82% gain in the previous session, taking the bank’s two-day increase to nearly 22%. The surge in share price also boosted Islami Bank’s market capitalisation by approximately Tk1,000 crore, bringing the total to around Tk6,520 crore.

However, the sudden spike has raised eyebrows among market observers, as the bank has made no official announcements regarding earnings, dividends, or board meetings that could justify the sharp rise.

Earlier in June, Islami Bank sought a three-month extension to release its annual financials for 2024 and first-quarter results for 2025, citing unavoidable circumstances. 

The bank stated that the statements were not adopted at its board of directors’ meeting held on 29 May. 

As a result, despite repeated attempts, the private sector lender failed to publish its financials, leaving shareholders in the dark.

Since the fall of the previous government in August, Islami Bank has published only one quarterly statement – for July to September. Eight months have since passed without any further financial disclosures.

The deadlines for publishing its 2024 annual financials, dividend declaration and first-quarter financials for 2025 have already lapsed, as per listing regulations.

In September last year, the Bangladesh Securities and Exchange Commission (BSEC) instructed the DSE to investigate an unusual surge in Islami Bank’s share price.

According to the BSEC order, the country’s premier bourse was asked to examine the trading of Islami Bank shares between 6 August and 25 September to determine the causes behind the sharp price and volume fluctuations, including any signs of market manipulation, insider trading, or other forms of market abuse.

The securities regulator asked the DSE to submit its investigation report within 30 days; however, no meaningful outcome has been reported so far, according to a BSEC source.

During the specified period, Islami Bank shares soared by more than 116%, rising from Tk32.60 on 6 August to Tk70.40. 

Market analysts believe a mix of factors may have fuelled last year’s rally, including the perception that the bank had been freed from the influence of S Alam Group, speculation about a potential investment by the International Finance Corporation (IFC), and increased efforts by existing shareholders to raise their stakes in the bank.

According to Islami Bank’s May shareholding report, a total of 131.89 crore shares – representing 81.92% of the bank’s total equity and owned by S Alam Group – remain blocked.

Source: The Business Standard

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Berger Paints Bangladesh, the country’s leading multinational coatings manufacturer, has decided to expand into the packaging sector by forming a new subsidiary.

The decision was approved at a board meeting on 30 June, according to a price-sensitive disclosure published on the company’s website.

As per the statement, Berger Paints will establish a new company named Jenson and Nicholson Packaging Limited (JNPL). The parent company will invest Tk5.10 crore to acquire a 51% equity stake in JNPL, while its wholly owned subsidiary, Jenson and Nicholson (Bangladesh) Limited, will contribute Tk4.90 crore for the remaining 49% stake.

JNPL will set up a new plant in the National Special Economic Zone, where it will manufacture various plastic-based packaging products.

The Berger board has also approved an amendment to the existing land lease agreement with the Bangladesh Economic Zones Authority (Beza) to allocate 1.16 acres of land to JNPL and retain 38.25 acres under Berger Paints Bangladesh. The total 39.41 acres are already under lease from Beza.

Speaking to The Business Standard, Khandker Abu Jafar Sadique, company secretary of Berger Paints Bangladesh, said, “We require both metal and plastic-based container packaging for our operations. That is why we are investing in plastic packaging production.”

He added, “We plan to establish the new plant within the special economic zone to benefit from the tax holiday facility promised by the government. Initially, production will meet internal demand, but there is potential for commercial expansion in the future.”

Currently, Jenson and Nicholson (Bangladesh) manufactures metal-based containers, which are used by Berger and also sold commercially.

Recommends dividend

Berger Paints Bangladesh has recommended a 525% cash dividend – equivalent to Tk52.50 per share – for the financial year 2024-25, which ended on 31 March. This is the company’s highest dividend since FY17, when it paid a 600% cash dividend.

To approve the dividend and the audited financial statements, Berger will hold its Annual General Meeting (AGM) on 25 August via a digital platform. The record date has been set for 24 July.

Despite economic uncertainties stemming from political transitions and looming election-related tensions, the company reported a 4% year-on-year increase in consolidated net profit, reaching Tk336.97 crore in FY25.

Berger’s consolidated earnings per share (EPS) stood at Tk72.66, up from Tk69.92 the previous year. Its net asset value (NAV) per share also rose to Tk333.42, compared to Tk309.53 a year earlier.

Its share price fell by 8.13% to close at Tk1,595 on Monday, following a rights offer adjustment after the record date.

Source: The Business Standard

Read More at: csslbd.net

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The broker last week revealed the names of the stocks in its report titled Bangladesh Finds Its Lighthouse Amid Reform Hopes: 2025 – A Year of Structural Reforms and Consolidation.

The stocks are British American Tobacco (BAT) Bangladesh, BRAC Bank, Grameenphone, IBN Sina Pharmaceuticals, IT Consultants (ITC), Marico, and Square Pharmaceuticals.

Shanta Securities also identified five stocks for trading in the secondary market, highlighting their potential for future business opportunities that could yield significant returns for investors.

These are Bangladesh Shipping Corporation, MJL Bangladesh, Renata, Robi, and Runner Automobiles.

SM Galibur Rahman, head of Research and Strategic Planning at Shanta Securities, told The Business Standard, “As part of our commitment to providing research-based services to our investors and clients, we have identified stocks that we believe are well-positioned for long-term investment.

“We selected these stocks based on our rigorous research methodology, which includes analysing their corporate governance practices, historical performance, and business outlook,” he added.

Rahman further emphasised that their suggestions and forecasts are intended to help investors make informed long-term investment decisions. However, it is important to note that analysis-based projections do not always align with actual outcomes.

The seven stocks

Between 2014 and 2023, BAT Bangladesh achieved a compound annual growth rate (CAGR) of 13.9% in revenue and 13.8% in net profit. Additionally, its recent agreement to manufacture cigarettes for Philip Morris Bangladesh Limited, the producer of Marlboro, is expected to significantly boost its topline.

The company has consistently invested around Tk900 crore in capital expenditures, positioning itself to enhance margins through improved manufacturing efficiency and reduced production costs while meeting both local and international demand.

Currently, BAT Bangladesh trades at Tk360 per share, reflecting a price-earnings ratio of 11.02, compared to the market average of 17.7. 

This suggests the stock is trading at an attractive valuation relative to its historical averages, presenting a potential buying opportunity for investors, according to Shanta Securities.

Shanta Securities said BRAC Bank’s board comprises distinguished professionals and academic leaders who ensure robust asset management. BRAC, the renowned international NGO, holds a 46.2% ownership stake in the bank. Notably, 60% of the board members are independent directors, a unique feature in the industry.

The brokerage firm projects the loan book to grow further to Tk91,300 crore by 2028, representing a five-year expected CAGR of 11.5%. 

Despite an industry-wide rise in non-performing loans (NPLs), BRAC Bank has consistently maintained its NPL ratio below 4% since 2016, reflecting its commitment to good governance. As of 30 September 2024, the NPL ratio stood at an impressive 2.8%.

Shanta Securities sets the target price of Grameenphone shares to Tk380, which currently trade at Tk323. The brokerage firm expects investors to achieve a return of 17.6% from Grameenphone shares.

IBN Sina Pharma is set to launch a second factory specialising in oral solid dosages, sterile products, and oncology medicines. This expansion is expected to significantly boost in-house manufacturing capacity, enabling the company to meet growing demand and adapt to evolving market trends, according to the broker.

The commercial production of the API unit will commence once the necessary licences are obtained from the drug administration. Meanwhile, work on the polymer unit is progressing steadily. As these projects become operational, Shanta Securities anticipates a consistent improvement in the company’s margin ratios.

ITC is the first private third-party Payment Service Operator company in Bangladesh licenced by the Bangladesh Bank. It is the owner of the largest payment platform in Bangladesh, known as Q-Cash. At present, 36 banks are using different electronic payment services of the Q-Cash network.

ITC’s revenue growth is linked with the country’s digital journey as Q-cash is an electronic payment system. With increased usage of online banking systems and card transactions, the company’s earnings will increase, said the securities firm.

Capitalising on this favourable business environment, investors could potentially earn a 54.1% return from ITC shares, which are currently considered undervalued, according to Shanta Securities.

Directors of Square Pharma have increased their stake in the company by purchasing 91 lakh shares at prevailing market prices from the secondary market. This move reflects the directors’ confidence in the company’s strong fundamentals and future growth potential, according to Shanta Securities.

Additionally, the parent company is progressively transferring its products to Square Lifesciences Limited, which benefits from a favourable 3% tax rate. 

Similarly, Square Kenya Limited, a tax-exempt entity, is gaining momentum in the Kenyan market. The scaling up of operations in these tax-advantaged entities is expected to significantly boost overall profitability, the brokerage firm noted.

These strategic advantages position Square Pharma to deliver improved returns for investors, Shanta Securities added.

Marico has a strong track record of delivering solid returns to its investors, a trend that is likely to continue with its increased production capacity, according to Shanta Securities.

However, the firm cautioned that anti-India sentiment could temporarily disrupt the company’s growth momentum.

Despite this risk, Shanta Securities projects a potential return of 31.4% on Marico shares this year for investors.

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Additionally, the market regulator raised concerns over various violations involving the conglomerate owned by Salman F Rahman, a former private sector adviser to the ousted prime minister Sheikh Hasina.

After reviewing the company’s audited financials, quarterly reports, and published price-sensitive information (PSI), the BSEC noted several anomalies.

The commission directed the Dhaka Stock Exchange (DSE) to address these issues, ensure compliance with securities regulations, and submit documents clarifying its findings.

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Highlighting significant violations of international auditing standards and BSEC directives, the commission sent letters in the first week of December to the DSE, instructing the country’s prime bourse to provide supporting documents and clarify its positions.

The Business Standard obtained a copy of the letter sent to the DSE. According to BSEC sources, the same letter was also served to the company.

In 2021, Beximco floated a Tk3,000 crore Sukuk bond – the first-ever asset-backed security issued by a private sector entity in Bangladesh – to finance two solar power plants and expand its textile division.

One auditor for 15 years

Beximco had appointed MJ Abedin & Co Chartered Accountants to audit its financial statements for 15 consecutive years, from 2009 to 2023, according to the BSEC letter.

As per BSEC orders and notifications, an issuer company is not permitted to appoint the same firm of chartered accountants as statutory auditors for a consecutive period exceeding three years.

The BSEC letter also noted that the company raised Tk3,000 crore by issuing asset-backed convertible Sukuk but failed to comply with IFRS 9.

Under this standard, any changes in the credit risk of a financial liability must be reflected through fair value adjustments. However, Beximco’s financial statements did not incorporate these changes, resulting in non-compliance.

Beximco Limited, the flagship firm of the Beximco Group, primarily engaged in the textile business, has reported questionable fluctuations in sales and profits. These irregularities are widely suspected to align with stock price manipulation and fundraising motives, leaving average investors in dire straits following the subsequent declines.

Tk2,487cr interest-free loans to subsidiaries

Beximco provided Tk2,138.85 crore and Tk348.39 crore interest-free loans to its subsidiaries, Teesta Solar and Korotoa Solar, respectively.

The commission letter said the fair value of these loans was not measured or disclosed, which is required under IFRS 9.

So, the commission seems to think Beximco has violated IFRS 9, and the loan to subsidiaries is the clear violation of its order issued in 2006.

No reflection of rental income

According to the company’s statement, Teesta Solar and Korotoa Solar are required to pay monthly rents of Tk14.13 crore and Tk2.29 crore, respectively, to Beximco for a period of 60 months. However, this rental income has not been recorded in the company’s audited financial statements, as noted in the BSEC letter.

Beximco also provided a corporate guarantee for the payment obligations of the beneficiaries under the Green Sukuk, covering both the final redemption and investment payments.

The bond guarantees investors a 9% secured annual return in addition to a profit margin. However, the BSEC raised concerns about the company’s ability to fulfil the covenant guaranteeing the 9% return and profit margin, particularly after Beximco declared no dividend for fiscal 2023-24.

As per the convertible option, 25%, or Tk750 crore, of the Sukuk was offered to existing shareholders, another 25% to the public through an IPO, and the remaining 50% through private placement.

A key concern raised in the BSEC letter is whether Beximco Green Sukuk unit holders have exercised their conversion option, how many shares were issued against this conversion, and whether the diluted earnings per share (EPS) was disclosed as required.

Direction for DSE

The BSEC has instructed the DSE to provide correspondence letters and supporting documents sent to the issuer company regarding these issues. The DSE must also explain its position and submit any relevant documents.

Additionally, the exchange is required to disclose any actions taken against the company for violating securities laws. Documents related to coupon/interest payments, submitted by the trustee or originator, must also be provided to confirm compliance with Sukuk terms.

On 10 December, the securities regulator decided to conduct a special audit to examine the past five years’ financials of Beximco Limited, Beximco Pharmaceuticals, and Shinepukur Ceramics – the three listed companies of the Beximco Group.

BSEC officials said the decision was prompted by serious investor scepticism regarding the authenticity of the financial disclosures of Beximco Group companies, including their income, expenditures, assets, and liabilities.

The special audit aims not only to uncover potential misreporting but also to provide a transparent financial overview of the three publicly traded companies.

This initiative aligns with the interim government’s efforts to address the ongoing workers’ unrest at Beximco Industrial Park over unpaid wages, with the sale of sponsors’ stakes being considered as a long-term solution to the crisis.

Beximco Group currently owes over Tk23,400 crore to state-owned Janata Bank, of which Tk19,507 crore is classified as bad loans.

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