Shuttered firms' stocks rally on central bank's Tk60,000cr revival plan
According to data from the Dhaka Stock Exchange, nearly two-thirds of the listed non-operational firms led the gainers' list during the session.
The country's capital market witnessed a significant surge in the share prices of long-dormant companies today (24 May), fuelled by the central bank's landmark announcement of a massive Tk60,000 crore stimulus package.
This ambitious rescue fund, aimed at reopening non-operational and closed factories, has sparked renewed hope among investors that struggling entities might finally return to production, providing a much-needed safeguard for both lenders and general shareholders, according to the market insiders.
According to data from the Dhaka Stock Exchange, nearly two-thirds of the listed non-operational firms led the gainers' list during the session. Out of the 32 companies identified as closed or non-performing, 20 firms—representing approximately 63% of the segment—saw their share prices climb.
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The rally was spearheaded by Generation Next, which saw a 6.66% increase, followed closely by RSRM Steel and Rahima Food with gains of 6.49% and 6.11%, respectively.
Other notable performers included Appollo Ispat, Regent Textile, and GBB Power, all of which recorded price hikes of around 6%. Even heavily distressed names like Emerald Oil, Usmania Glass, and Familytex experienced a significant uptick in buyer interest, alongside others such as Metro Spinning and Shyampur Sugar.
This market reaction follows yesterday's announcement by the Bangladesh Bank regarding a "production and employment revival" programme.
Governor Md Mostaqur Rahman briefed the media on the package, stating that the fund is designed to revive stalled exports and create approximately 25 lakh jobs for the country's unemployed youth. Under this scheme, eligible companies can access loans with interest rates as low as 4%.
The DSE's investigative data shows that out of 360 listed companies, 32 have remained shuttered or non-operational for years, with most closing their doors between 2016 and 2025 due to a combination of poor corporate governance, unmanageable debt burdens, and disrupted production cycles.
While the market has reacted with optimism, financial experts are sounding a note of caution regarding the implementation of such a massive fund.
Akramul Alam, Head of Research at Royal Capital, noted that while the rescue fund is a highly positive step for the broader business sector, ensuring good governance will be the primary hurdle.
He warned that without stringent monitoring and transparency, there is a significant risk that the funds could be misused or lost to the same irregularities that forced these companies to close in the first place.
He suggested that banks must rigorously evaluate the creditworthiness of entrepreneurs and demand clear, well-defined recovery plans that demonstrate a company's ability to return to sustainable operations before any capital is disbursed.
The brokerage community has also voiced its expectations for the fund's management. Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), emphasised the need for clarity regarding sector-wise allocations and eligibility criteria.
He argued that listed companies should be given priority in accessing this rescue support because they involve the savings of thousands of ordinary retail investors who are directly tied to the capital market.
He also urged the government to establish transparent guidelines to ensure that the interests of minority shareholders are protected during the factory revival process.
