Ahsan Habib

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

The wheels of the two companies have begun turning again after remaining closed for many years while another firm is moving towards resuming operation – thanks to the restructuring of boards by the Bangladesh Securities and Exchange Commission (BSEC).

The stock market regulator in Bangladesh has stepped up its efforts to forestall the freefall of shares despite criticism from institutional investors and analysts as uncertainty is deepening owing to the raging Ukraine war, persistently higher inflation and fresh coronavirus flareups.

Although the corporate tax levied on listed firms is lower than that of their non-listed counterparts, many companies in Bangladesh lack interest in joining the stock market as they want to avoid the obligation of ensuring good corporate governance, regularly disclosing financial information and complying with other rules.

The pace of profit growth of pharmaceutical companies in Bangladesh slowed in the January-March period of the current financial year compared to a year ago because of higher operating costs despite bigger sales.

Profits of listed fuel and power generation companies altogether dropped in the January-March period of the current financial year of 2021-22 due to some power plants shutting down, an increase in the price of raw materials and a decrease in investment income.

At the beginning of 2022, Bangladesh’s economy seemed to be on course to grow at a faster clip buoyed by plummeting coronavirus infections, rebound in economic activities and the reopening of global economies.

Jubilant FoodWorks, the master franchisee of Domino’s Pizza in India, Sri Lanka, Bangladesh and Nepal, has fully acquired Jubilant Golden Harvest Ltd, the franchisee of Domino’s Pizza in Bangladesh.

Jubilant FoodWorks, the master franchisee of Domino's Pizza in India, Sri Lanka, Bangladesh and Nepal, has fully acquired Jubilant Golden Harvest Ltd, the franchisee of Domino’s Pizza in Bangladesh.

“Per capita income is the income that is not seen by mass people but built on a few people.”

When a sector offers opportunities to make a good profit and there is a conducive climate to invest, investors -- large and small and local and foreign -- don’t need to be told to channel investments there. Money flows in automatically. It is common when it comes to investment in the free market economy.

Shwapno, the largest retail chain in Bangladesh, posted the biggest growth in turnover in the last financial year, driven by higher sales through its e-commerce platform and teleservice amid the coronavirus pandemic.

When the stock market goes through a bearish trend, the regulator usually prods institutional investors, mostly unofficially, to pour money to revive it and some of them respond positively.  

The International Monetary Fund has revised down its economic growth projection for Bangladesh to 6.4 percent for the current fiscal year largely because of Russia-Ukraine war and supply chain disruptions.

Incentives are necessary to nudge people into using digital payment methods, such as cards and mobile financial services (MFS), so that Bangladesh can achieve its goal of becoming a cashless society.

A commodity exchange is needed for Bangladesh as it will ensure fair prices for both producers and consumers, said Asif Ibrahim, chairman of the Chittagong Stock Exchange (CSE), as it is set to appoint a consultant to establish the market.

The Chittagong Stock Exchange (CSE) is planning to launch the country’s first commodities exchange, or futures market, this year, aiming to reduce the price difference of commodities between what consumers pay and what producers get.

At a time when the key index of the Dhaka Stock Exchange (DSE) is on the decline and turnover plummeting, the SME index has skyrocketed for an influx of investors lured by “risky” shares on speculations that they would rise further.

Large foreign banks operating in Bangladesh took a hit in 2021 as their profits plunged due to the impacts of the coronavirus pandemic and the lower interest rate regime.

Losses of bKash, a subsidiary of Brac Bank, widened by 83 per cent year-on-year in 2021, even though its revenue rose by 21 per cent, for incurring higher costs on training, investment and waivers on the charge to send money.