Miracle Industries Stocks Surge as Production Resumes

Controversies surrounding the Adani power deal have resurfaced, but less attention has been given to the SS Power plant, owned by a private Bangladeshi group, despite its high costs. In FY 2023-24, SS Power's capacity was only utilized at 21%, yet it incurred a Tk 3,288 crore capacity charge. Ramphal Power Plant, with 24% utilization, faced a Tk 2,237 crore charge. Other plants like Barishal Electric (30%), Payra (65%), and Adani’s (61%) also reported high capacity charges, with Adani costing Tk 5,392 crore. Overall, five coal-based plants incurred Tk 15,686 crore in capacity charges.

The Bangladesh Bank is introducing special liquidity support for banks weakened by irregularities and corruption, following a change in their boards. These banks will receive liquidity assistance against guarantees from the central bank, with stronger banks providing the liquidity. Previously, the central bank printed money to sustain banks, but it has now moved away from this approach, focusing on liquidity support through finalized policies. The central bank plans to provide assistance this week, with support based on specific indicators.

Four days before the fall of the government, Bangladesh Bank granted a two-year loan repayment extension to the Bashundhara Group for its debt with National Bank. As of August 31, Bashundhara's loan with National Bank amounted to BDT 3,844 crore, surpassing the legal limit by eight times. The central bank allowed this extension despite their policy typically restricting such extensions to one year. The loan was already BDT 3,859 crore, with direct loans at BDT 3,844 crore. The extension was requested in April and approved in July, right before the government’s collapse on August 5.

Since the beginning of the year, Bangladesh's stock market has experienced a significant downturn, leading to investor unrest and a mass exit from the market. From January 1 to September 12, the number of shareholder Beneficiary Owner (BO) accounts dropped by 112,119, while accounts without shares increased by 17,474. As of January 1, there were 1.4 million BO accounts, which decreased to 1.29 million by September 12. During the same period, accounts with no shares rose from 296,901 to 314,375. The total number of BO accounts fell from 1.77 million to 1.67 million.

The Bangladesh Securities and Exchange Commission (BSEC) is evaluating changes to the Capital Market Stabilisation Fund (CMSF) to better serve investors. The new chairman, Khondoker Rashed Maqsood, criticized the CMSF's past activities, including controversial investments in the Investment Corporation of Bangladesh (ICB) and a mutual fund, which he argues fall outside its mandate.

Bangladesh's first Exchange Traded Fund (ETF), the LB Multi Asset Income ETF, has failed to meet its mandatory Tk50 crore private subscription target by its second extended deadline of 3 September. LankaBangla Asset Management, the fund's asset manager, has requested a six-month extension from the Bangladesh Securities and Exchange Commission (BSEC), pushing the deadline to 3 March next year.