Ahsan Habib

The Bangladesh Securities and Exchange Commission (BSEC) is going to reorganise the boards of several non-bank financial institutions (NBFIs) this month in a bid to improve their financial health.

Most of the non-bank financial institutions in Bangladesh delivered lower profits in the first half of 2022 due to the shrinkage of income from the ailing stock market. 

The stock market is being administered with a short-term cure, the floor price, to halt its bear run sacrificing long-term stability through the erosion of confidence among institutional and foreign investors. 

Profits of most multinational companies listed in Bangladesh dropped in the first half of 2022 due to the depreciation of the local currency and higher consumer prices. 

Bangladesh’s use of foreign assistance reached a new record high of $10 billion in fiscal year 2021-22, primarily behind vaccinations, one-time budget support, economic recovery from the pandemic and implementation of mega projects.

Low-performing stocks have kept dominating over blue-chip and sound shares in an unpromising sign that the stock market in Bangladesh is driven more by speculation instead of the health and performance of companies. 

Stocks of Bangladesh Monospool Paper Manufacturing Company have skyrocketed in the last one year just after it had been relisted from the over the counter (OTC) market to the main board, all throughout riding on rumours and speculations. 

The jitters surrounding the state of the economy are reverberating on the stock market, with the key index dropping for the fifth day in a row.

Luxury hotel businesses in Bangladesh are on the path of recovery to pre-pandemic levels, with local customers playing a vital role in renting rooms, holding a large number of events and seeking food made by their restaurants. 

Shares of small capital-based companies surged abnormally on the Dhaka Stock Exchange (DSE) in the past month whereas the benchmark index of the premier bourse of Bangladesh, as well as blue-chip securities, has been in a bearish mood. 

Stocks of Grameenphone have been falling ever since the government banned the country’s top telecom company from selling new SIM cards at a time when shares of its main competitor, Robi Axiata, have entered a bull run.

Most of the companies in Bangladesh may not qualify for the 2.5 percentage points cut in the corporate tax rate as proposed in the budget for the upcoming fiscal year owing to stringent conditions.

The government has proposed a 2.5 percentage point cut in corporate tax rates for the listed companies in the national budget unveiled for the next fiscal year in a bid to develop the stock market and attract investments.

Although Bangladesh is witnessing a golden hour in terms of demographic dividend, a lack of decent employment opportunities in the country is leading to rising unemployment among educated youths, according to experts.

People may have to spend more for taking meditation services from the next month as the finance minister today recommended withdrawing the VAT exemption benefit the services have been enjoying since 2016-17.

The finance minister has proposed abolishing the scope for whitening of black money through the stock market.

The trade licence issuance process needs to be simplified and moved online while simplification of the bank loan process is also needed to help boost women owned businesses, according to a report by Business Initiative Leading Development (BUILD).

Square Pharmaceuticals Kenya EPZ Ltd, a subsidiary of Square Pharmaceuticals, has recently received a go-ahead to start commercial manufacturing in its Kenyan factory.

The company will manufacture and sell generic pharmaceutical medicine in Kenya and East African Community (EAC).

Bangladesh set out for financial sector reforms in the 1980s.