By week’s close, the benchmark DSEX rose 159 points to settle at 4,028. The blue-chip DS30 gained 56 points to 1,934, while the Shariah-compliant DSES advanced 39 points to 1,057. The DSE SME Index (DSMEX) also added 24 points, closing at 916.

Market insiders noted that despite recent gains, many investors were unable to book significant profits, as short-term volatility and uncertainty ahead of the national election schedule kept sentiment cautious. Z-category stocks dominated trading this week, reflecting selective participation amid political and market uncertainty.

“The market has been heavily oversold after several weeks of consecutive declines,” a trader said. “Many fundamentally strong stocks are now trading at attractive levels, prompting opportunistic investors to take fresh positions in anticipation of a rebound.”

Analysts also attributed part of the previous decline to the enforcement of new margin loan rules, which triggered forced sell-offs and added downward pressure on prices.

Trading activity picked up significantly, with average daily turnover rising 32.09% to Tk525 crore from Tk398 crore the previous week. Total weekly turnover reached Tk2,626 crore, up from Tk1,988 crore, while market capitalisation climbed 1.52% to Tk6,92,133.38 crore. Out of 414 issues traded, 335 advanced, 32 declined, 12 remained unchanged, and 34 saw no trading activity.

According to EBL Securities, the market’s recovery was supported by media reports of central bank funding for ICB, alongside growing expectations of an imminent tentative election schedule, which boosted investor confidence.

Sector-wise, investors were most active in Engineering (13.3%), followed by Fuel & Power (12.5%) and Textiles (12.0%). All sectors closed in positive territory, with IT leading at 9.1%, followed by General Insurance at 7.6% and Paper at 7.4%.

While profit-taking by risk-averse investors slowed momentum late in the week, buyers maintained dominance, extending the market’s short-term recovery streak.

Source: The Business Standard

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According to a disclosure published on Tuesday (25 November) , the transfer will be executed as a gift, outside the trading system of the stock exchange, and is expected to be completed within the next 30 working days.

The transfer is being carried out following all regulatory requirements, and necessary procedures have already been initiated. Such off-market transfers by way of gift are permitted under prevailing securities rules, provided the parties follow proper documentation and obtain necessary approvals.

With this transfer, Fatema Hossain Rizvi’s stake in the company will rise significantly, while the director’s personal holdings will decline by the same amount.

Over the past three months, SAPL’s share price has doubled. On Wednesday, the stock closed at Tk46.50 on the Dhaka Stock Exchange.

Recently, SAPL has declared an 18% cash dividend for shareholders for the fiscal year 2024-25, compared to a 15% cash dividend in the previous year.

The annual general meeting (AGM) to approve the dividend, financial statements, and other agenda items will take place on 23 December, with 27 November set as the record date.

The company’s consolidated earnings per share (EPS) stood at Tk2.85, up from Tk1.75 in the same period last year. On a solo basis, EPS was Tk1.83, compared to Tk1.73 a year ago.

Alliance Holdings holds 23.48% of SAPL shares, while Summit Holdings owns 8.07%. Among key individuals, Alliance Holdings Founder and SAPL Managing Director Jowher Rizvi owns 5.48%, and Summit Group Chairman Aziz Khan holds 7.03%.

SAPL, a leading inland container terminal and logistics operator, reported a 313% year-on-year jump in consolidated revenue to Tk612 crore during July-March FY25, up from Tk148 crore a year earlier. The growth was largely driven by its subsidiary Container Transportation Services (CTS), which contributed 72% of total revenue with Tk440 crore in sales.

The company’s consolidated profit more than doubled, rising 106% to Tk69 crore from Tk33.43 crore in the same period of FY24. Earnings per share stood at Tk2.34 for the nine months to March.

Established in 2013, CTS initially offered domestic transportation services but expanded into freight forwarding after securing a customs licence in June last year. It also partnered with Germany’s Hellmann Worldwide Logistics as its local agent.

Source: The Business Standard

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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 board of Square Pharma has approved an investment of Tk650 crore to be used for balancing, modernisation, rehabilitation, and expansion (BMRE), the purchase of capital machinery, and land acquisition. The company aims to boost its manufacturing capacity and introduce a new range of medicines, including biological and specialised treatments for cancer and chronic diseases.

Since the outbreak of Covid-19 in 2020, Square Pharma has already invested around Tk2,000 crore in land, machinery, and BMRE projects to meet the increasing domestic and global demand for pharmaceuticals.

Muhammad Zahangir Alam, chief financial officer of Square Pharma, told TBS that the new investment is part of the company’s long-term strategy to strengthen its market leadership. 

“To expand our footprint in the pharmaceutical industry, we have been investing continuously. The new Tk650 crore investment will help increase our production of biological and chronic disease medicines and further modernize our factories through the adoption of new technologies,” he said.

Industry insiders note that Bangladesh’s growing population, rising health awareness, and the increasing burden of chronic illnesses like diabetes, hypertension, and cancer have driven sustained growth in the pharmaceutical market. The post-pandemic emphasis on healthcare infrastructure has further boosted medicine consumption nationwide.

However, the sector also faces challenges, notably a heavy reliance on imported raw materials – especially active pharmaceutical ingredients (APIs) from China and India. This dependency exposes local manufacturers to global supply disruptions and price volatility.

Record dividend for FY25

The company’s board has recommended a 120% cash dividend for FY25 – equivalent to Tk12 per share – marking the highest payout in its corporate history. In FY24, Square Pharma declared a 110% cash dividend.

The annual general meeting (AGM) is scheduled for 15 December, with the record date set for 16 November.

Square Pharmaceuticals reported a 15% rise in consolidated net profit to Tk2,397 crore for FY25, driven by strong performances from its subsidiaries and associates. The company’s consolidated earnings per share (EPS) stood at Tk27.04, while its net asset value (NAV) per share was Tk157.88 and net operating cash flow per share (NOCFPS) was Tk19.52.

These consolidated figures include contributions from its foreign subsidiary, Square Pharmaceuticals Kenya EPZ Ltd, its local subsidiary Square Lifesciences Ltd, and three associate companies – Square Textiles, Square Fashions, and Square Hospitals.

However, the company’s standalone profit declined by 5% to Tk1,474 crore. 

According to CFO Jahangir Alam, the dip was mainly due to the strategic transfer of several products to Square Lifesciences Ltd. 

“We transferred a number of medicines to our subsidiary company for tax optimisation and operational efficiency, which affected standalone profit but did not impact consolidated performance,” he said. “Such strategic moves are part of our long-term plan to enhance shareholder returns.”

Stock performance and market position

Square Pharma, which has been listed on the stock exchanges since 1995, saw its shares close at Tk213 today. The company’s market capitalisation stood at Tk18,881 crore, making it the second-largest firm on the Dhaka Stock Exchange (DSE).

In a show of confidence, four of the company’s directors have collectively purchased 1.36 crore shares worth approximately Tk280 crore since 2020. As a result, the sponsors and directors’ combined stake has risen to 42.91%, up from 34.43% in FY19, according to DSE data.

Market analysts interpret these purchases as a strong signal of confidence in the company’s long-term growth prospects. The consistent buying by its top executives underscores their belief in Square’s financial strength and sustainable business model.

Founded in 1958 by the late Samson H Chowdhury, Square Pharmaceuticals began its journey at a time when Bangladesh’s medicine market was dominated by multinational corporations. Today, it produces around 1,000 types of medicines, with its flagship gastric relief brand Seclo leading in sales.

Square Pharma was also the first Bangladeshi company to export medicines abroad in 1987. Currently, it exports to 42 countries across Asia, Africa, and Latin America.

Source: The Business Standard

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Speaking at an event on Monday marking ‘World Investor Week’, the BSEC chief said that the current commission has been committed from the outset to preventing all forms of fraud in the market.

“The commission is already working to consolidate the Bangladesh Securities and Exchange Commission Act, 1993, and the Securities and Exchange Ordinance, 1969. Efforts are also underway to compile all securities-related rules in one place,” Maqsood said.

Soon after assuming office, he said, the current commission formed an Inquiry and Investigation Committee to look into past irregularities and scams in the market. “Of the 12 reports submitted by the committee, the commission has already taken punitive actions against those involved in seven cases.”

The chairman, however, pointed out that in several cases, enforcement actions have been delayed due to ongoing court proceedings and legal complications, reports the UNB agency.

“For instance, in cases like Best Holdings and Quest BDC, the implementation of enforcement actions has been hindered by ongoing writ petitions and court injunctions,” he added, seeking support from the government and judiciary to expedite the process.

The BSEC chief said that steps are being taken to strengthen the roles and responsibilities of trustees, custodians, and asset managers to develop the mutual fund sector.

At the same time, he said, the commission is working to ensure the accountability of independent directors in listed companies to promote good governance and transparency.

To prevent fund misappropriation through fraud, Maqsood said all brokerage firms have been brought under a tamper-proof integrated back-office software system.

“Many people and investors have a deep interest in the capital market. If we can make this market free from fraud and ensure investor protection, its potential will be far-reaching,” the BSEC chairman said.

Source: The Financial Express

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However, the company reported a 12.54% growth in its net profit, and recommended a 40% cash dividend, meaning shareholders will get Tk4 against per share – the same payout as in the previous fiscal year, according to its disclosure published on the stock exchanges today (23 September).

According to its latest report, the state-owned firm posted a revenue of Tk396.09 crore and a profit of Tk205.94 crore in FY25. In contrast, it recorded its highest-ever revenue of Tk515.49 crore and profit of Tk279.02 crore in FY23. 

Despite the revenue fall, the company’s net profit margin rose to 52.25% in FY25, up from 45.91% in the previous fiscal year.

Sources said increased competition with International Terrestrial Cable (ITC) operators and reduced International Private Leased Circuit (IPLC) rent have been squeezing its revenues.

According to its annual report for FY24, in 2012, the Bangladesh Telecommunication Regulatory Commission issued ITC licenses to six private operators, of which four are now in active commercial operation.

The ITC licence holders offer IPLC service from neighbouring India through international terrestrial cables connecting the landing stations in India with Bangladesh.

As a result, ITC licence holders are the main competitors of Bangladesh Submarine Cables, and they sometimes offer lower tariffs to attract customers. To remain competitive, the company occasionally needs to revise and lower its IPLC and IP transit service tariffs, which impacts the company’s revenue.

Meanwhile, the firm’s net operating cash flow per share dropped to Tk13.75 from Tk17.63 last year, owing to lower revenue collection and higher expenses. 

Its net asset value, however, rose to Tk1,701 crore as of 30 June 2025, compared to Tk1,524.59 crore a year earlier.

The company’s annual general meeting, which is to be convened digitally, is scheduled for 23 November, with 22 October set as the record date to identify shareholders.

Bangladesh Submarine Cables is the country’s sole provider of submarine cable-based bandwidth services and manages the national submarine cable system. It also operates as an International Internet Gateway (IIG) service provider.

At present, the company supplies bandwidth to IIG operators through IPLC, provides IP transit services to IIGs, and offers IPLC connectivity to corporate and other clients. Its network includes the SMW-4 (South East Asia-Middle East-Western Europe) cable, operational in Cox’s Bazar since 2005, and the SMW-5 cable in Kuakata, which came online in 2017.

On Tuesday, its share price slightly declined to Tk136.7 each at the Dhaka Stock Exchange. 

Source: The Business Standard

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Southeast Bank PLC has initiated measures to recoup more than Tk424 crore in defaulted loans from New Line Clothings Ltd, a listed apparel manufacturer that has ceased operations in recent years.

The bank announced an auction of New Line’s mortgaged properties after declaring the loan as defaulted, according to a notice issued on 17 September.

The Banani branch of Southeast Bank reported that as of 18 August, the outstanding loans of New Line Clothings stood at Tk424.12 crore.

The bank invited bidders to participate in the auction by 30 September, through which it seeks to sell the company’s mortgaged properties – 112 decimals of land in Gazipur and a seven-storied factory building — to recoup its losses.

Efforts to contact Zakir Chowdhury, managing director and CEO of New Line Clothings, were unsuccessful, as his phone remains switched off.

Meanwhile, a former officer of the company, requesting anonymity, revealed that New Line Clothings had been struggling with a severe shortage of working capital.

“The failure to meet loan instalments has put the company in a precarious position. With no funds to sustain operations, the factory has remained inactive for years,” the former official said.

New Line Clothings, which has maintained a banking relationship with Southeast Bank since 2007, has borrowed both long-term and short-term loans over the years.

Its financial troubles mounted despite raising Tk30 crore through an initial public offering (IPO) in 2019, which was intended to partly repay Southeast Bank loans and finance the acquisition of new machinery.

At the time of its listing, the company’s total borrowings from Southeast Bank already stood at Tk123 crore. Notably, Southeast Bank Capital, a subsidiary of the bank, was also one of the issue managers of the company’s IPO.

The company’s financial performance began deteriorating soon after its market debut. New Line Clothings has failed to disclose any financial results since March 2022 and has not declared a dividend since the 2020–21 fiscal year, when it last paid a 12.25% cash dividend on profits of Tk12.79 crore.

The concerns surrounding New Line Clothings deepened in April this year when a DSE inspection team, approved by the Bangladesh Securities and Exchange Commission (BSEC), visited both the company’s head office and factory, only to find them shuttered.

According to a senior DSE official, multiple complaints had been filed by investors alleging that the company had effectively ceased operations without notifying the market.

In addition to the absence of financial reporting, the company failed to hold its annual general meeting (AGM) for three consecutive years, further breaching regulatory requirements and deepening investor concerns. This breaching requirement prompted the DSE to downgrade the company to the “Z” category, reserved for non-compliant or troubled firms.

The market performance of New Line Clothings’ shares reflects its decline. In August 2024, the company’s share price traded at Tk45.40, but as of the last trading session on Thursday, it had plummeted to just Tk5.90 – well below its face value of Tk10.

Its current market capitalisation stands at Tk46.33 crore, against a paid-up capital of Tk78.53 crore.

The company has also not updated its shareholding information since December 2023. At that time, sponsors and directors collectively held 30.61% of shares, institutional investors 18.33%, and the general public 51.06%.

The absence of updated data has further fueled uncertainty among investors, many of whom fear that they have little chance of recouping their investments.

Source: The Business Standard

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According to the company’s statement filed on the Dhaka Stock Exchange on Sunday, the agreements cover three key initiatives: assembling and supplying electric three-wheelers, introducing intelligent traffic management and AI-based traffic signal solutions, and implementing solar streetlight projects across the country.

As part of the MoUs, ADN Telecom will begin preliminary steps to set up assembly facilities and drive sustainable technology ventures, particularly in Hi-Tech Parks. Its South Korean partners will provide advanced technology, equipment, and technical expertise, while ADN will focus on facilitating project execution and market development, read the statement.

The collaborations will be executed through joint ventures to be established in Bangladesh, with the objective of ensuring technology transfer, creating local employment, and building long-term operational sustainability.

News of the agreements boosted ADN Telecom’s stock, with shares rising by 2.01% to reach Tk81.30 during the first hour of trading on Sunday.

Source: The Business Standard

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Hakkani Pulp and Paper Mills PLC is set to boost its profitability with an operational overhaul that will see it invest Tk80 lakh in two new energy-efficient projects, expected to generate an additional Tk95.50 lakh in annual profit.

At a board meeting held yesterday (6 September) at its registered office, the company’s Board of Directors approved the installation of a hot water generation system machine and an industrial exhaust gas boiler (EGB).

The upgrades, set to transform the company’s bottom line, will be financed entirely from its own funds.

Infographic: TBS

These technologies will allow the company to recycle waste heat from its existing gas generator and reduce its reliance on conventional gas consumption, a strategy that has already been adopted by several textile millers in recent years to curb soaring utility costs, according to the company’s officials.

The first project, the hot water generation system machine, comes with an estimated cost of Tk40 lakh, including installation. Once operational, the machine will capture hot water produced by the existing gas generator and convert it into extra steam.

This process will cut down the monthly gas bill of the current boiler system by approximately Tk3.16 lakh. The board estimates that this project alone will contribute around Tk38 lakh in additional annual profit.

The second project, the industrial EGB, also costing Tk40 lakh, will harness exhaust gas released from the generator. By harnessing the exhaust gas, this boiler is expected to produce nearly 24 tonnes of steam each month based on 24 working days.

The company anticipates a reduction of Tk4.60 lakh in its monthly gas expenses, translating into an annual profit boost of Tk55.50 lakh.

Together, the two machines will reduce gas costs by an estimated Tk7.77 lakh every month, or Tk93.50 lakh annually, strengthening the company’s margins at a time when energy expenses have been a major burden.

“Following the gas price hike, our utility costs increased alarmingly, which reduced profitability,” said Mohammad Musa, company secretary of Hakkani Pulp, in a statement to The Business Standard.

“These machines have already been tested by textile millers over the past two years and proved effective in saving gas consumption. The decision to install them is aimed at safeguarding our profitability,” he added.

Signs of recovery

The investment comes as Hakkani Pulp shows signs of financial recovery.

For the July-March period of FY25, the company reported revenue growth of 8% to Tk88.27 crore. Net profit soared 830% to Tk53.17 lakh, compared to the same period a year earlier. Earnings per share (EPS) rose to Tk0.28, while net asset value per share stood at Tk24.45.

The company attributed the sharp increase in EPS to higher sales volume.

In contrast, FY24 was a difficult year for Hakkani Pulp. Net profit plunged 95% year-on-year to Tk7.8 lakh, prompting the company to distribute only a 2% cash dividend for FY24.

Because the dividend payout fell short of the 5% threshold, the company continues to trade under the B category on the stock exchanges.

Despite these challenges, investor confidence in Hakkani Pulp has strengthened in recent months. The company’s shares closed 1.82% percent higher at Tk89.40 yesterday, reaching their highest level in over two years.

Since August, the share price has jumped by 34%.

On 14 August, the company responded to a query from the Dhaka Stock Exchange (DSE) regarding the unusual rise in share price and trading volume. Hakkani Pulp clarified at the time that there was no undisclosed price-sensitive information behind the surge.

According to Company Secretary Musa, the machinery purchase plan had been under preliminary consideration for months, but the board could not disclose it before formal approval on 6 September.

“The decision was materialised only at the board meeting,” Musa explained. “We were still analysing the output and benefits of the machines in earlier stages. That is why we did not share any information before the official resolution.”

The strategic investments in energy-efficient machinery are expected to have a significant long-term impact on the company’s financial health.

By cutting recurring gas expenses and boosting annual profit by nearly Tk1 crore, Hakkani Pulp aims to stabilise earnings and improve shareholder returns in the coming years, Musa added.

Source: The Business Standard

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After failing to secure regulatory approval for issuing rights shares, Confidence Cement has decided to sell its entire stake in Confidence Cement Dhaka, an associate company, to meet its immediate financial obligations.

The Chattogram-based listed cement manufacturer holds a 50 per cent stake in Confidence Cement Dhaka, which it will sell to Confidence Power Holdings, another associate company under the Confidence Group, in order to repay expensive bank loans.

The transaction involves 141 million ordinary shares of Tk 10 each, amounting to Tk 1.41 billion in total, according to a stock exchange filing on Sunday.

“The entire proceeds from the sale of the associate company will now be used for the repayment of existing high-cost bank loans of the listed company,” said an official of Confidence Cement, requesting anonymity. The company expects its profitability to improve after the reduction of finance costs.

As of March this year, Confidence Cement’s short-term debts stood at Tk 5.66 billion, while long-term bank borrowings amounted to Tk 169 million.

The share sale is subject to shareholder approval at an extraordinary general meeting (EGM) scheduled for October 18, with a record date of September 24.

The decision to divest from the Dhaka plant came one and a half months after the Bangladesh Securities and Exchange Commission (BSEC) rejected the company’s rights offer application.

In September last year, the cement maker unveiled its plan to raise Tk 1.29 billion by issuing one rights share against every three existing shares. It intended to invest half the proceeds in its Dhaka plant and use the rest to repay bank loans.

However, in June this year, the newly formed securities commission rejected the application, citing a lack of supporting documents and concerns that the issuance could negatively affect profitability.

The company later revised its rights proposal, lowering the share price by Tk 10 to Tk 35 (including Tk 25 as premium), targeting Tk 1 billion. It sought reconsideration, but the regulator rejected the revised application on July 15, saying there was no scope for review.

“The board of directors of Confidence Cement on September 4 decided to sell its entire stake in Confidence Cement Dhaka to Confidence Power Holdings after the regulator rejected its rights offer for the second time,” said the company official.

Confidence Power Holdings, one of the most profitable companies in the group, operates four power plants in Bogura, Rangpur, and Chattogram with a combined capacity of 393.6MW.

Confidence Cement had initially invested around Tk 1.41 billion in the Dhaka factory. “That capital is now being pulled back to repay the listed company’s high-cost debts and support its future development,” the representative added. The ownership of the factory will remain within the Confidence Group, he clarified.

Strive to capture Dhaka’s cement market

Confidence Cement, which already holds a significant market share, had aimed to strengthen its presence in the capital-centric market by establishing a new cement plant in Narsingdi.

The plant, named Confidence Cement Dhaka, has drawn investments of about Tk 8.15 billion from the group since 2018. The factory is expected to begin operations in the first quarter of next year, with an annual capacity of 1.8 million tonnes.

While the Dhaka plant is meant to serve the capital and its surrounding areas, the listed entity will continue focusing on the Chattogram region.

Annual performance

Confidence Cement posted a 177 per cent year-on-year profit growth to Tk 753 million for FY24, driven by efficient cost management and increased income from associates.

On the back of the profit surge, the company declared a 10 per cent cash dividend for FY24, compared with 5 per cent cash and 5 per cent stock dividends in FY23.

For the nine months through March this year, its profit rose 20 per cent year-on-year to Tk 833 million.

Source: The Financial Express

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