Shuttered firms' stocks rally on central bank's Tk60,000cr revival plan

The country's capital market witnessed a significant surge
in the share prices of long-dormant companies today (24 May), fueled 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.
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),
emphasized 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 urged the government
to establish transparent guidelines to ensure that the interests of minority
shareholders are protected during the factory revival process.
















