Foreign investments on the rise in stock market

The Bangladesh Securities and Exchange Commission (BSEC) has canceled Gemini Sea Food's rights shares application after the company failed to submit required sales documents. The BSEC stated it could not approve the plan to raise Tk128.21 crore through a rights share issue, with the share price currently at Tk230.40 on the Dhaka Stock Exchange.

Mominul Islam has been elected chairman of the Dhaka Stock Exchange (DSE) PLC, bringing with him 25 years of experience in global and local banks and financial institutions. He is known for his leadership in policy frameworks, business transformation, and operational excellence.

The National Board of Revenue (NBR) has directed the Registrar of Joint Stock Companies & Firms (RJSC) to freeze the transfer of shares of seven conglomerates, including Bashundhara, Beximco, Orion, Summit, S Alam, Nassa, and Nagad Ltd, to ensure tax compliance. The NBR’s Central Intelligence Cell (CIC) cited allegations of financial irregularities, including tax evasion, and invoked its authority under the Income Tax Act to block such transfers.

On Wednesday, the benchmark equity index experienced a significant drop of 2.36%, marking its largest single-day decline in 31 months, closing at Tk 5,453.99. This decline was influenced by a record penalty of Tk 4.28 billion imposed by the securities regulator on manipulators of Beximco's share prices, along with rising tensions in the Middle East due to missile attacks on Israel.

AKM Habibur Rahman has been elected Chairman of the Chittagong Stock Exchange (CSE) for a three-year term, replacing Asif Ibrahim. A senior civil service officer, Rahman has held various management roles, particularly in the telecommunications sector, including positions at BTCL, Teletalk, and Bangladesh Submarine Cables.

In the past 14 years, 127 companies were listed in Bangladesh, transitioning from private to public, but most saw declining performance post-IPO. Of these, only 52 maintained 'A' category status, while 43 were downgraded to 'B', and 32 became 'Z', indicating serious financial struggles. Junk stocks now account for over 10% of issuances, up from 8% in 2011. Although some companies sold shares at a premium, 30 out of 51 saw their prices fall below the premium value.