According to its financial statements, during the July to March period, its consolidated profit surged to Tk233.9 crore with an earnings per share (EPS) of Tk20.39, and its revenue surged to Tk3,362 crore at the end March. 

Its data showed that Renata maintains strong earnings momentum for the third consecutive quarter of double-digit profit growth.

In the third quarter, Renata saw 33% growth while it already delivered 26% growth in Q2 and 24.6% in Q1. 

Despite fewer selling days during the quarter due to the National Election and Eid-ul-Fitr, revenue remained resilient, led by a 10.5% growth in the core domestic pharmaceutical segment, along with steady contributions from exports, Renata PLC said in a press release.

“Profitability improved on the back of better gross margins, efficient procurement, and tight control over expenses, including stable factory overheads and lower financing expenses through strategic capital restructuring,” it said. 

The company further advanced its long-term growth strategy by investing in capacity expansion, automation, renewable energy, and an expanding pipeline of bio-equivalent products, reinforcing both its domestic leadership and international presence.

While emerging global risks may put pressure on input and logistics costs, Renata remains committed to efficiency and prudent cost management to sustain its growth trajectory and continue delivering value to stakeholders, the press release said.

Md Jubayer Alam, company secretary at Renata, said, “During this period, Renata has demonstrated resilient performance driven by sustained revenue growth, operational efficiency, and disciplined financial management.”

“Despite prevailing economic challenges, we have maintained strong momentum across our core business segments. Our continued focus on cost optimisation, product portfolio expansion, and market development has contributed to improved profitability and value creation for our stakeholders,” he said.

“We remain committed to strengthening our market position, enhancing operational excellence, and pursuing sustainable growth in the coming periods,” he said.

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The post Renata sees double digit profit growth in Jul-Mar first appeared on CSSL.

Despite political and economic uncertainty, most listed pharmaceutical companies reported strong revenue and profit growth in the October–December quarter and the first half of the fiscal year.

Analysts said higher sales, lower costs, easing finance expenses, efficient working capital management, stable demand, steady exchange rates, and operational efficiency drove the improved performance.

Renata PLC, one of the country’s leading drug manufacturers, reported 25% year-on-year profit growth in the first half of the fiscal year. Consolidated profit rose to Tk156.26 crore in July–December from Tk125.08 crore a year earlier, while EPS increased to Tk13.58 from Tk10.83. Consolidated revenue grew 6.56% to Tk2,223.84 crore.

Pharmaceutical product revenue, accounting for 80.7% of total revenue, rose 10% year-on-year, driven entirely by higher sales volumes, while the animal health segment remained flat. Export revenue, including subsidiary income, declined 10.1%, and contract manufacturing revenue fell 28.4%.

Export income rose 8.2% in the first quarter of FY26 but dropped 23.4% in the second quarter after export-bound inventory was damaged in a fire at Dhaka airport on October 19, 2025, leading to deferred orders. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased 20.6% due to operational efficiency, while financing costs fell 7.3% following capital restructuring.

Square Pharmaceuticals, the country’s largest drug maker, also posted strong growth. In the first half of the fiscal year, consolidated revenue rose 15% year-on-year to Tk4,338 crore, while net profit increased 16% to Tk1,467 crore, with EPS reaching Tk16.56. In the October–December quarter alone, revenue grew 9% to Tk2,179 crore and net profit rose 10% to Tk727 crore, reflecting sustained domestic demand despite rising sector-wide costs.

The results include contributions from foreign subsidiary Square Pharmaceuticals Kenya EPZ Ltd, local subsidiary Square Lifesciences Ltd, and associate companies Square Textiles, Square Fashions, and Square Hospitals, underscoring the group’s diversified operations.

Advanced Chemical Industries (ACI) reported an 18% year-on-year increase in consolidated revenue to Tk7,794 crore in the first half of the fiscal year, up from Tk6,619 crore a year earlier. The company posted a consolidated net profit of Tk30 crore, reversing a net loss of Tk64 crore in the same period last year.

ACI said gross profit growth outpaced operating expenses due to strong performance across key segments, though borrowing costs rose amid higher interest rates and increased funding needs for working capital and strategic investments.

Navana Pharmaceuticals recorded a sharp turnaround in the October-December quarter, driven by higher sales, improved margins, lower finance costs, and stronger operating cash flows. Diluted EPS rose 65% year-on-year to Tk1.65 from Tk1.

The ACME Laboratories posted 15.75% year-on-year revenue growth in the October–December quarter, with EPS rising to Tk3.10 from Tk2.86. For the July-December period, EPS increased to Tk6.11 from Tk5.47.

Beacon Pharmaceuticals reported a 29.32% increase in earnings in the October–December quarter, while six-month EPS rose to Tk4.73 from Tk3.47 a year earlier.

Source: The Business Standard

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TBS Infograph

Despite a series of regulatory initiatives and reform-oriented moves, the market remained under pressure throughout the year, weighed down by political uncertainty, economic challenges and a prolonged absence of fresh listings, according to the market analysts.

The benchmark DSEX index ended the year at 4,865 points, shedding 351 points or 6.73% compared to the previous year. The blue-chip DS30 index also declined sharply, losing 86 points or 4.44% to settle at 1,853. 

Market activity remained subdued, with average daily turnover falling 18% year-on-year to Tk521 crore, reflecting investors’ reluctance to deploy fresh funds in an uncertain environment.

The overall size of the market relative to the economy also weakened. The market capitalisation-to-GDP ratio dropped to 12.21%, underscoring the shrinking role of equities in the broader financial system. 

Valuations, however, became more attractive on paper, with the market price-to-earnings ratio edging down to 8.59, although low valuations failed to lure investors back in meaningful numbers.

Market movements during the year reflected sharp swings driven more by sentiment than fundamentals. The DSEX reached its highest point at 5,636 on 7 September, while the lowest level of the year was recorded at 4,615 on 28 May. 

Turnover also fluctuated widely, peaking at Tk1,442 crore on 4 June but dropping to a low of Tk224 crore on 7 September, highlighting the fragile and inconsistent nature of investor participation.

One of the clearest indicators of the year’s stress was the steady exit of retail investors. Around 66,500 beneficiary owner accounts were emptied of shareholdings during 2025, leaving the number of BO accounts with shares at just over 12.05 lakh. 

Market insiders said this trend reflects not only losses suffered by small investors but also a broader sense of fatigue and distrust built up over years of market instability.

‘Deeply troubled year for market’

Minhaz Mannan Emon, shareholder director of the Dhaka Stock Exchange and managing director of BLI Securities Limited, described 2025 as an unfortunate and deeply troubled year for the market.

He told The Business Standard that many investors left after suffering losses amid a prolonged bearish trend and persistently low turnover. 

According to him, most market intermediaries also became largely inactive due to the absence of initial public offerings, uncertainty surrounding the national election and a challenging economic backdrop.

He said the year was largely dominated by the formation of task forces and focus groups, as well as punitive actions taken by the reconstituted Bangladesh Securities and Exchange Commission (BSEC) under the interim government. 

While these measures were intended to clean up the market and restore discipline, they failed to generate any immediate positive reflection in prices or trading activity. 

However, he expressed hope that these steps could produce better outcomes in the coming year, particularly if the election is held on time and political clarity returns. 

“Investors are waiting for the next elected government,” he said, adding that a turnaround remains possible if confidence is restored.

Factors shaping 2025 market 

A combination of factors kept the market under pressure throughout the year. Uncertainty over the upcoming national election weighed heavily, discouraging both local and foreign investors from taking long-term positions.

Broader economic uncertainty, a deterioration in law and order and weak private investment further eroded sentiment. Tighter margin loan rules and bank mergers also made traders more cautious, market insiders said.

Regulatory actions significantly shaped market behaviour. The BSEC took punitive steps against several high-profile investors accused of wrongdoing, including banning former chairman Shibli Rubayat Ul Islam, Salman F Rahman, vice-chairman of Beximco and former adviser to the ousted Prime Minister Sheikh Hasina, from the capital market.

Heavy fines were imposed on some large investors for alleged manipulation. While many welcomed the move as overdue accountability, others said the abrupt actions heightened short-term uncertainty and froze trading activity.

Confidence was also hit by internal challenges at the regulator. Reports of operational chaos and delays in finalising key regulations left investors uncertain about policy direction.

The absence of any new IPOs throughout the year further narrowed investment options, leaving the market reliant on secondary trading of existing stocks.

At the same time, 2025 laid the groundwork for reform. The regulator introduced new margin loan and mutual fund rules, drafted updated IPO regulations and cut the annual BO account maintenance fee to Tk150, a reduction of Tk300.

Task forces and focus groups were formed to recommend structural reforms, while initiatives were launched to facilitate listings by state-owned enterprises, multinational companies and leading private firms.

‘Reform most significant development’

Moniruzzaman, managing director and chief executive officer of Prime Bank Securities, said that regulatory reform was the most significant development for the capital market in 2025. 

He noted that holding influential individuals accountable through punitive measures marked a major shift in regulatory approach. He also highlighted the unprecedented engagement of private sector representatives in reform committees, calling it a first in the history of Bangladesh’s capital market.

According to him, based on committee recommendations, the BSEC finalised margin loan and mutual fund rules, while IPO regulations are in the pipeline awaiting final approval. 

However, he cautioned that regulatory changes often take time to be absorbed in Bangladesh, as market participants are not always comfortable adapting to new frameworks. “It takes time,” he said, expressing optimism that investors may start to see tangible benefits in 2026.

Source: The Financial Express

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The new Tk500 banknote. Photo: Collected

Bangladesh Bank is set to release a newly designed Tk500 banknote on Thursday (4 December).

The note, themed around iconic national architecture, will debut from the central bank’s Motijheel office before being distributed through other branches in phases.

According to a Bangladesh Bank press release, the new Tk500 note – signed by Governor Dr Ahsan H Mansur – features the Central Shaheed Minar on the front and the Bangladesh Supreme Court on the back. The note measures 152mm × 65mm.

A stylised water lily motif forms the central background of the design, while a Royal Bengal Tiger watermark and an electrotype “500” enhance security. Despite its dominant green palette, the bank says the note incorporates a more modern look and strengthened anti-counterfeiting measures.

The new Tk500 note incorporates a total of 10 advanced security features. 

Bangladesh Bank confirmed that all current paper notes and metal coins – including older Tk500 notes – will remain in circulation.

Source: The Business Standard

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The post New banknotes of Tk500 to hit market on Thursday first appeared on CSSL.

Markets hardly reacted to news that the US Senate narrowly confirmed Stephen Miran to the Fed’s Board of Governors while a US appeals court separately declined to allow President Donald Trump to fire Fed Governor Lisa Cook.

Both moves were seen as unlikely to shift the needle for the Fed’s decision on Wednesday, where a 25-basis-point cut is fully priced in.

“There are certainly concerns around the politicisation of the Fed and President Trump’s pressure … to try to sort of, I guess, stack the board,” said Tony Sycamore, a market analyst at IG.

“But I think … a 25-basis-point cut still remains in place.”

Expectations of imminent Fed rate cuts have kept the market mood buoyant over the past few sessions and sent stocks scaling new highs.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose to a more than four-year top on Tuesday and last traded 0.7 percent higher, while Japan’s Nikkei and Topix indexes notched fresh records.

EUROSTOXX 50 futures were flat while FTSE futures rose 0.08 percent. DAX futures edged up 0.03 percent.

Just as important for markets will be Fed members’ “dot plot” projections for rates and guidance from Fed Chair Jerome Powell on the extent and pace of any further easing.

Futures already have 127 bps worth of cuts priced in by July 2026, so anything less than dovish will disappoint investors.

“There do seem to be quite a few rate cuts priced in now. On balance, maybe that suggests that the bar for a hawkish surprise is a little lower than that for a dovish one,” said Thomas Mathews, head of markets for Asia Pacific at Capital Economics.

“It’s likely though that the Fed will stick with its cautious communication approach and not give much away.”

Elsewhere, Hong Kong’s Hang Seng Index was up 0.08 percent, while China’s CSI300 blue-chip index fell 0.38 percent.

Nasdaq futures rose 0.14 percent while S&P 500 futures gained 0.08 percent, after both indexes scaled all-time highs in the cash session overnight.

Shares of Nvidia ended slightly lower after China on Monday accused the AI chipmaker of violating the country’s anti-monopoly law in the latest escalation in the Sino-US trade war.

In other news, US and Chinese officials said on Monday they have reached a framework agreement to switch short-video app TikTok to US-controlled ownership that will be confirmed in a Friday call between Trump and Chinese President Xi Jinping.

DOLLAR EASES

The Fed cut bets have in turn kept pressure on the dollar, which on Tuesday fell to its lowest since Jul 24 against a basket of currencies.

Sterling rose to its highest in over two-months at $1.3624, while the euro also hit its highest since Jul 24 at $1.1787.

The risk-sensitive Australian dollar peaked at a 10-month top of $0.6677, before pulling back slightly to last trade 0.1 percent lower at $0.6662.

“The Aussie has been outperforming in recent weeks because markets have been expecting the FOMC to restart interest rate cuts and that’s positive for the global economic outlook, and at the same time… trade uncertainty has eased,” said Carol Kong, currency strategist at Commonwealth Bank of Australia.

US Treasury yields were little changed after falling in the previous session, with the two-year yield last at 3.5366 percent. The benchmark 10-year yield was steady at 4.0375 percent.

In commodities, oil prices extended their rise from the previous session, as investors assessed the impact of Ukrainian drone attacks on Russian refineries.

Brent crude futures rose 0.25 percent to $67.61 per barrel, while US crude edged 0.27 percent higher to $63.47 a barrel.

Spot gold scaled a record high of $3,689.27 an ounce, supported by a weaker dollar and Fed cut expectations.

Source: bdnews24.com

Read More at: csslbd.net

The post Asia stocks scale new highs, dollar weakens as investors eye Fed cut first appeared on CSSL.

The rally followed a brief pause in the previous session, as investors once again poured into equities amid a wave of renewed optimism.

The blue-chip index, DS30, added 6 points to close at 2,195. Market breadth remained positive, with 220 issues advancing, 131 declining, and 47 remaining unchanged.

Infographic: TBS

Turnover at the Dhaka bourse jumped by 8% to Tk1,278 crore, signalling heightened investor activity.

According to the daily market review of EBL Securities, the capital market resumed its upward trajectory as investors continued to chase equity positions, buoyed by sustained confidence across the trading floor.

The brokerage noted that the DSEX crossing the 5,600 mark after nearly a year reflected improving sentiment backed by macroeconomic stability and a relatively clear political outlook ahead of the upcoming national elections, it added.

“Opportunistic investors are also reshuffling portfolios to capture quick gains ahead of the June-closing earnings declarations,” the review added.

Pharmaceutical stocks dominated the day’s trading, accounting for 12.9% of turnover. Engineering and banking sectors followed closely, contributing 11.5% and 11%, respectively.

City Bank, Lovello Ice-Cream, Khan Brothers PP Woven Bag, Orion Infusion, and ITC emerged as the top turnover leaders, reflecting investors’ appetite for both financials and consumer-oriented stocks.

Sector performance was largely positive. IT stocks surged by 7%, leading the day’s rally, while ceramics gained 5.5% and travel shares advanced 2.3%.

On the other hand, mutual funds, life insurance, and general insurance sectors posted marginal declines, shedding 0.7%, 0.7%, and 0.4%, respectively.

Despite the upbeat mood, some weaker firms led the list of top gainers. Miracle Industries rose 10%, Intech gained 9.97%, Khan Brothers PP Woven Bag jumped 9.96% and Nahee Aluminum added 9.91%.

Conversely, non-bank financial institutions dominated the list of top losers. GSP Finance fell 8.82%, Prime Finance dropped 7.40%, Phoenix Finance declined 5.88%, FAS Finance shed 5.55%, and Fareast Finance lost 5.55%.

At the Chittagong Stock Exchange (CSE), the CSCX index rose 25 points to close at 9,618, while the CASPI gained 46 points to finish at 15,652. However, turnover at the port city bourse dropped sharply by 49% to Tk14.79 crore, in contrast to the robust activity in Dhaka.

Market insiders said the return of sustained rallies has bolstered confidence after months of sluggish performance, although they warned that profit-taking may emerge in the coming sessions, given the rapid pace of gains.

Source: The Business Standard

Read More at: csslbd.net

The post DSEX crosses 5,600 mark after 11 months first appeared on CSSL.

PP woven bags. Photo: Collected

Khan Brothers PP Woven Bags Industries, a publicly listed company, has decided to begin direct sales of its products in the local market, in addition to its current sub-contract work.

According to a stock exchange disclosure published yesterday, the company’s export operations have been on hold since 2022, with all revenue generated solely from sub-contracting.

By sourcing raw materials locally and selling directly in the domestic market, the company aims to diversify its income streams and improve operational performance. Its management expects the move to have a positive impact on overall business activities. 

 Keep updated, follow The Business Standard’s Google news channel

“Our bond facilities are still halted. That is why we plan to buy raw materials locally and sell them in the domestic market. However, the company is trying to resolve the suspension issue,” Company Secretary Tapan Kumar Sarker told The Business Standard.

Today, the company’s shares closed at Tk117.80 each on the Dhaka Stock Exchange.

Khan Brothers PP Woven Bags Industries, listed on the stock exchange in 2014, manufactures and exports a range of products, including flexible intermediate bulk containers (FIBC or jumbo bags), polypropylene (PP) woven bags, sacks, and woven fabrics.

In December last year, Beacon Group acquired shares from the previous board of directors at a negotiated value and nominated two shareholder directors along with one independent director to the company’s management, ensuring a smooth transition of responsibilities and control.

Beacon Group’s Chief Financial Officer Md Jalal Uddin earlier told TBS that the acquisition aligned with the group’s plan to diversify its portfolio.

In September the same year, BSB Cambrian Education Group had shown interest in taking over Khan Brothers’ management, though the plan did not materialise.

For the fiscal year 2023–24, Khan Brothers recommended a 1% cash dividend for its shareholders. In January-March FY25, its per-share loss stood at Tk0.02, compared to Tk0.01 in the same period a year earlier. The company’s net asset value per share was Tk11.82 at the end of March 2025.

Source: The BUSINESS STANDARD

Read More at: csslbd.net

The post Khan Brothers turns to local sales amid ongoing export suspension first appeared on CSSL.

Bangladesh Bank (BB) purchased a further US$176.50 million from commercial banks on Thursday, as part of its ongoing drive to stabilise the foreign-exchange market.

This makes total dollar purchases since 13 July to US$798.50 million under the prevailing free-floating exchange-rate regime.

According to BB sources, the fresh intervention was prompted by a continued decline in the interbank spot market exchange rate.

In Thursday’s auction, the central bank injected around Tk 21.44 billion into 15 commercial banks in exchange for the US$176.50 million purchased, at a cut-off rate of Tk 121.50 per dollar.

Over the past week, the BB has bought the same total amount, US$798.50 million, through six separate auctions, aimed at strengthening the country’s foreign exchange reserves.

These have come under pressure from higher import payments and recent global economic headwinds.

The central bank began this intervention on 13 July to curb volatility in the dollar-taka exchange rate and to ensure greater stability in the forex market.

A BB official, speaking on condition of anonymity, said that 17 commercial banks participated in Thursday’s bidding, with 15 offering the Tk 121.50 rate accepted by the regulator.

He added that the central bank could also sell US dollars through similar auctions if the greenback continues to appreciate against the taka.

The official noted that such interventions are typically aimed at preventing excessive depreciation of the local currency and boosting reserves, in line with the International Monetary Fund’s recommendations under its US$5.50 billion lending programme to help stabilise Bangladesh’s macroeconomic situation.

Source: The Financial Express

Read More at: csslbd.net

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Chief Adviser Prof Muhammad Yunus and Malaysian Prime Minister Anwar Ibrahimwitnessed the signing of the MoUs and exchange of notes in Malaysia’s administrative capital Putrajaya on 12 August 2025. Photo: UNB

Highlights:

• Bangladesh and Malaysia signed five MoUs to strengthen cooperation
• Three notes exchanged on education, diplomat training, and halal ecosystem
• Defence cooperation MoU signed by respective defence and foreign ministers
• LNG supply and petroleum infrastructure MoU signed by economic ministers
• Strategic studies institutes from both countries agreed on collaboration
• Chambers of commerce signed MoUs to boost trade relations

Bangladesh and Malaysia on Tuesday signed five Memorandums of Understanding (MoUs) and exchanged three notes in diverse areas to strengthen cooperation between the two countries.

Chief Adviser Prof Muhammad Yunus and Malaysian Prime Minister Anwar Ibrahim witnessed the signing of the MoUs and exchange of notes in Malaysia’s administrative capital Putrajaya.

The first note was exchanged on cooperation in the field of higher education.

Malaysian Foreign Minister Utama Haji Mohamad bin Haji Hasan and Bangladesh’s Foreign Affairs Adviser Md Touhid Hossain exchanged note on behalf of their respective sides.

The second note was exchanged on training for diplomats. It was exchanged by Malaysian Foreign Minister Utama Haji Mohamad bin Haji Hasan and Bangladesh’s Foreign Affairs Adviser Md. Touhid Hossain.

The first MoU between the government of Malaysia and the government of the People’s Republic of Bangladesh was signed on defence cooperation.

Malaysian Defence Minister Mohamed Khaled bin Nordin and Bangladesh’s Foreign Affairs Adviser Md. Touhid Hossain signed the MoU.

The second MoU between the government of Malaysia and the government of Bangladesh is about cooperation in the Field of Cooperation in Liquefied Natural Gas (LNG) Supply, LNG Infrastructure, Petroleum Products and their Infrastructure.

Malaysian acting economic ministers Amir Hamzah bin Azizan and Bangladesh’s energy adviser M Fouzul Kabir Khan signed the MoU.

The third note is on cooperation in the field of halal ecosystem.

Deputy Minister in Malaysian Prime Minister’s Department Senator Dr. Zulkifli bin Hasan and Bangladesh Investment Development Authority (BIDA) Executive Chairman Chowdhury Ashik Mahmud bin Harun exchanged the note.

The third MoU is for cooperation between the Institute of Strategic and International Studies Malaysia and the Bangladesh Institute of International and Strategic Studies.

Institute of Strategic & International Studies (ISIS) Malaysia Chairman Datuk Professor Dr Mohd FaizAbdullah and Bangladesh High Commissioner in Malaysia Md. Shameem Ahsan signed the MoU.

The fourth MoU is on collaboration between MIMOS Services Sdn Bhd and the Bangladesh-Malaysia Chamber of Commerce & Industry (BMCCI).

MIMOS Services Sdn. Bhd. (MSSB) Chief Executive Officer (CEO) Mohamad Fauzi Yahaya and BMCCI Shabbir Ahmed Khan signed the MoU.

The fifth MoU is signed between the National Chamber of Commerce and Industry of Malaysia (NCCIM) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).

NCCIM president N Gobalakrishnan and FBCCI administrator Md. Hafizur Rahman signed the MoU.

The post Bangladesh, Malaysia sign 5 MoUs, exchange 3 notes on energy, defence and more first appeared on CSSL.

While all market stakeholders have been clamouring for listing of fundamentally-strong companies to invigorate the equity market, the mandatory self-listing of the Dhaka bourse has conspicuously remained absent from the conversation.

The listing of the exchanges is mandatory as part of the demutualisation scheme implemented in 2013 to separate their management and ownership for better market regulation.

It has already been more than a decade since the passing of the demutualisation act but both the bourses are yet to see any progress in the divestment of their shares to general and institutional investors.

The Chittagong Stock Exchange (CSE), however, recently submitted a proposal to the securities regulator for its listing on the prime bourse.

The act does not specify any timeframe for the equity offloading and so it is left to the exchanges’ boards to decide.

At the time of the demutualisation, there was an expectation that the bourses would submit proposals to the Bangladesh Securities and Exchange Commission (BSEC) after three years regarding the share offloading.

“Definitely, it’s a failure of the DSE’s previous boards, especially independent directors who held the majority on the boards,” said Minhaz Mannan Emon, one of the shareholder-directors of the Dhaka bourse.

He said the shareholder-directors could not prevent listing of the DSE if independent directors really pushed for it.
Also, the previous commissions of the securities regulator had imposed many decisions, exercising the sweeping power conferred by the special section 2CC of the Securities and Exchange Ordinance 1969. “But they didn’t issue any order, forcing the exchanges to list,” added Mr Emon.

As per the demutualisation act, 40 per cent shares of the Dhaka bourse were credited to the members; these shares have been blocked by the DSE.

Of the remaining 60 per cent shares, 25 per cent were sold to two Chinese strategic partners and 35 per cent are supposed to be issued to general and institutional investors, through which the exchange will be listed.

Earlier in December 2021, the securities regulator asked the exchanges to plan for listing. At that time, the regulator decided to conduct a special audit to assess the exchanges’ preparedness for listing.

The then commission also asked the DSE to complete the listing procedure by 2022.

Preferring anonymity, a senior DSE official said the bourse had submitted an application, seeking guidelines from the BSEC on self-listing. He could not recall details but said no significant action had been taken to address the matter.

The CSE, meanwhile, has been awaiting approval of the BSEC in response to its recent listing proposal.

Refusing to comment on what has been done or has not been done, BSEC spokesperson Md. Abul Kalam said, “Now it’s the appropriate time for the DSE’s listing”.

The equity market has shown signs of recovery, with increased participation of investors. Being a renowned and fundamental company, the DSE can sell shares at a good price, said Mr Kalam.

The DSE will not issue new shares. It will offload existing 35 per cent shares and this share transfer will have to be executed through direct listing.

DSE Director Emon’s view, however, contradicts Kalam’s.

According to him, the current situation of the equity market is not conducive to listing. The exchange’s shareholders will not be interested in offloading shares, fearing that they would not get a good price as the exchange’s operating income has drastically declined.

“The DSE is now surviving on interest income,” said Mr Emon, adding that the DSE would be listed following stability in the equity market.

The DSE’s main income is derived from transaction fees and the fees collected from listed securities.

Amid the bearish outlook, transaction fees fell to Tk 749 million in FY24 from Tk 1.25 billion in FY21.

Mazeda Khatun, managing director of ICB Capital Management that works as an issue manager, said the entities of the capital market were supposed to be listed but only the state-run Investment Corporation of Bangladesh (ICB) had listed on the stock exchanges.

In May this year, the DSE Brokers Association (DBA) urged the government to take necessary measures for the listing of the Central Depository Bangladesh Ltd. (CDBL).

“At the very least, a strategic plan for the DSE’s listing should have been in place by now,” said Mazeda, also president of the Bangladesh Merchant Bankers Association.

Source: The Financial Express

Read More at: csslbd.net

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