Stocks rebound after five months
Dhaka stocks saw the biggest single-day gain in five months on Sunday as investors went on buying binge on large-cap issues as hopes ran high. DSEX, the key index of the Dhaka Stock Exchange, went up by 180 points or 4.13 per cent to settle at 4,545 during the four and a half hours trading session.DSEX added more than 468 points or 11.5 per cent in the past 11 consecutive sessions amid strong buying pressure from retail and institutional investors. Amid high expectations, market operators said spontaneous participation lured the investors to take position on the large-cap stocks, taking the core index above 4,500-mark once again after more than five months.The telecom sector posted the highest gain of 6.50 per cent, followed by power with 4.70 per cent, financial institutions 4.60 per cent and banking 4.40 per cent. Turnover, another important indicator of the market, also crossed the Tk 11-billion-mark after more than one month and stood at Tk 11.28 billion on the country’s prime bourse, which was 35 per cent higher than the previous day’s turnover of Tk 8.36 billion. It has also been the highest turnover since June 28 when turnover totalledTk 25.43 billion riding on huge block trade of GSK Bangladesh. Of the issues traded, 293 advanced, 42 declined and 20 issues remained unchanged on the DSE floor.
BB relaxes loan restructuring policy for NBFIs
The central bank has relaxed its loan restructuring policy for non-banking financial institutions (NBFIs) to help the businesses overcome the adverse impact of the Covid-19 pandemic. Under the relaxations, the NBFIs are allowed to extend the tenure of term loans and leases by a maximum of 50 per cent of the remaining time to maturity, instead of existing 25 per cent, according to a notification issued by the Bangladesh Bank (BB) on Sunday.Earlier on June 21, the BB slashed cash reserve ratio (CRR) by 100 basis points to 1.5 per cent from 2.5 per cent for the NBFIs considering the Covid-19 pandemic. Such reduction of CRR also helped the NBFIs use more than Tk 3.0 billion as loanable funds to implement the government announced stimulus packages, according to officials. Prime Minister Sheikh Hasina has so far announced a total of 19 stimulus packages worth Tk 1.03 trillion to help various sectors of the economy offset the losses they have suffered due to novel coronavirus (COVID-19) pandemic. The packages, which are equivalent to 3.7 per cent of the country’s gross domestic product (GDP), will be implemented under the supervision of the central bank and the ministry of finance. Currently, 34 NBFIs are running their business across the country. In June 2020, the central bank issued a licence to Strategic Finance and Investments Limited for running their business as an NBFI.
Square Pharma tops DSE turnover chart
Square Pharmaceuticals dominated the Dhaka Stock Exchange’s turnover chart on Sunday while ten most-traded stocks accounted for 24 per cent of the total transactions.Market analysts said investors showed buying frenzy on large-cap shares throughout the session like Square Pharma, British American Tobacco, Brac Bank riding on new hopes amid the securities regulator’s tough stance on wrongdoers.According to the DSE data, some 2.24 million shares of Square Pharma were traded, generating a turnover of 441 million, which was 3.91 per cent of the day’s total transaction of Tk 11.28 billion.The top drug maker’s share closed at Tk 199.50 on Sunday, soaring 5.83 per cent over the previous session. The company disbursed 42 per cent cash and 7.0 per cent stock dividend for the year ended on June 30, 2019. In nine months for July 2019-March 2020, its consolidated earnings per share (EPS) stood at Tk 12.44 as against Tk11.15 for July 2018-March 2019. The company’s paid-up capital is Tk 8.44 billion and authorised capital is Tk 10 billion while total number of securities is 844.23 million. The sponsor-directors own 34.57 per cent stake in the company, while the institutional investors own 10.57 per cent, foreign investors 18.61 per cent and the general public 36.25 per cent as on June 30, 2020, the DSE data showed. BATBC came second on the turnover chart, with shares worth Tk 413 million changing hands. The multinational company’s share rose 1.67 per cent to close at Tk 922.80 each.The turnover of Pioneer Insurance was Tk 196 million. The company’s share rose 9.10 per cent to close at Tk 70.70 each. Grameenphone featured a turnover of Tk192 million. The largest market-cap company’s share closed at Tk 271.10, soaring 6.65 per cent. Indo-Bangla Pharma also made its way to the day’s top turnover chart, with shares worth Tk 181 million changing hands. The company’s share price rose 5.91 per cent to close at Tk 23.30 each.
BB asks banks to tap NRB deposits
The central bank has asked banks to introduce deposit products for non-resident Bangladeshis to encourage them to save their hard-earned money in Bangladesh. The products will be in the form of savings for more than a year on a monthly or quarterly deposit basis, according to a notice issued by the Bangladesh Bank (BB), on Sunday. Besides, the deposit accounts will be credited in the local currency -Bangladesh Taka (BDT)- after conversion from the foreign exchange, it added.The banks are allowed to extend loans to non-resident account holders for meeting his personal needs in taka against the security of this deposit account subject to adherence to the usual lending norms, according to the notice. In case of NRBs residing in Bangladesh permanently after their return, the proceeds can be made available to them either in one time settlement or pension type monthly/quarterly settlement. NRBs can continue to maintain the deposits from local sources after their arrival. The scheme has an option to repatriate payments abroad from the balance held in the deposits on maturity/before maturity for meeting subsistence needs with permission from the central bank.
NRBs can now park their funds in FDR, DPS
Non-resident Bangladeshis (NRBs) can now keep their funds in the form of Fixed Deposit Receipts (FDR) and Deposit Plus Schemes (DPS) with local lenders following a central bank directive yesterday. The move comes as part of the government’s efforts to channel in $3-$5 billion in additional remittance from expatriate Bangladeshis this fiscal year from fiscal 2019-20’s record-setting $18.2 billion. This fiscal year already started on a strong footing: $2.6 billion flew in July, which is a record for a single month. Finance Minister AHM Mustafa Kamal credited the 2 per cent cash incentive on remittance that he introduced last fiscal year for the surge in inflows that are beating all odds.However, no declaration is required for amounts of up to $5,000 or equivalent in other currencies. The central bank has asked banks to provide competitive interest or profit against the deposit products. Banks were previously allowed to extend loans to non-resident account-holders if they had met their personal requirements on funds placed in a deposit account. Once mature, banks could pay the proceeds of the deposits, including interest or profit, to the beneficiaries or nominees of the account.
Southeast Bank Limited shifted its PragatiSarani Branch at the Bank’s own premises at Pearl
Southeast Bank Limited shifted its PragatiSarani Branch at the Bank’s own premises at Pearl Trade Center (2nd Floor), Cha-90/3, PragatiSarani, Badda, Dhaka on Sunday. In presence of M. Kamal Hossain, Managing Director of Southeast Bank Limited, prominent businessman and client of the Bank Al-haj Md. Abu Bakar Siddique, Chairman and Managing Director, AB Group of Companies formally inaugurated the newly-located Branch.
Pubali Bank donates bus to BSMMU
As a part of Corporate Social Responsibility (CSR), the Board of Directors of Pubali Bank Ltd. donated a bus to Bangabandhu Sheikh Mujib Medical University (BSMMU). Md. Abdul Halim Chowdhury, Managing Director of Pubali Bank Limited, handed over the key to Professor Dr. KanakKantiBarua, Vice-Chancellor of BSMMU. Mohammad Ali, Additional Managing Director and Chief Operating Officer of Pubali Bank Ltd, was also present. Md. Abdul Halim Chowdhury said, Pubali Bank is not only a profit oriented organization; it has some social responsibility. As a part of it, Pubali Bank donated a bus to Bangabandhu Sheikh Mujib Medical University.