Slow progress in fund disbursement
Banks and non-bank lenders could disburse only Tk 15 billion of the stimulus package until July 30 for smaller firms. The disbursed amount is just 7.50 per cent of total Tk 200 billion financial support meant for small and medium enterprises (SMEs). The support is to help the SMEs weather the adverse impact of the Covid-19 pandemic. Loans amounting to Tk 27.50 billion were sanctioned to more than 8000 SMEs during the period, according to central bank’s statistics.Under the existing policy, the banks and non-banking financial institutions (NBFIs) can lend manufacturing and services 50 per cent and 30 per cent respectively while the remaining 20 per cent for trading purposes.The BB has already formed a Tk100 billion revolving refinancing scheme to help banks and NBFIs for the implementation of the package for the CMSMEs. In April, the central bank issued a guideline for providing working capital facilities amounting to Tk 200 billion in line with the government’s announcement for the CMSME sector affected by the coronavirus pandemic. Apart from cottage and micro firms, only SMEs have created employment for 7.8 million people directly and provided livelihood for 31.2 million in Bangladesh. The sector also contributes 25 per cent to gross domestic product, according to the 2016 Household Income and Expenditure Survey.
Japan offers record $3.15b credit line
Japan on Wednesday confirmed a record US$3.15 billion in loans for Bangladesh to bankroll seven development projects, Economic Relations Division (ERD) officials said. The funds under the 41st Official Development Assistance (ODA) package would be utilised for constructing the country’s two metro rail lines, upgrading transport system, improving food security while developing urban areas, a senior ERD official told the FE.In May last year, Japan provided the 40th ODA loan package worth $2.5 billion for financing five projects. In a statement on Wednesday, Japan Embassy said this year’s loan package comprises assistance of seven projects amounting to JPY338.247 billion (approximately $3.2 billion), the largest ever loan package since its inception in 1974. Japan has emerged as Bangladesh’s single largest bilateral donor since 2012, and its total commitment of loans in Yen reached $22 billion till date.However, the lender will charge 0.01 per cent interest rates for the partial loans to be utilised for consultancy services out the total package. This month, Japan has for the first time confirmed $330 million in budgetary support from its Crisis Response Emergency Support Loan. The largest bilateral donor will provide $1.0 billion budgetary support to Bangladesh government. The $330 million is the first tranche of the fiscal support. The Asian donor has also provided approximately $13 million as the emergency support to tackle COVID-19 in Bangladesh through international organisations, as well as provided PPE to hospitals through the JICA. In July, Japan offered a $10 million grant for Bangladesh to procure medical equipment, including CT scanners and X-ray machines.
DSEX exceeds 4,600-mark as stocks resume rally
Stocks rebounded strongly on Wednesday after a single-day break, as the securities regulator’s various steps to revive the capital market have boosted the investor confidence. DSEX, the prime index of the Dhaka Stock Exchange (DSE), jumped 100.32 points or 2.21 per cent to close at 4,633, after shedding 12 points in the previous session.The key index crossed the 4,600-mark after five and a half months since February 25.On July 2, the Bangladesh Securities and Exchange Commission (BSEC) asked 61 directors of 22 listed companies to comply with minimum 2.0 per cent shareholding requirements within 45 days. Turnover, the crucial indicator of the market, crossed Tk 11 billion-mark once again to reach Tk 11.20 billion on the country’s premier bourse, 6.87 per cent up from the previous day’s mark of Tk 10.48 billion. Liquidity support fund by the Bangladesh Bank and the cut in bank deposit rates — maximum up to 6.0 per cent for time deposit — have paved the way for new investment in the market, said a leading broker. Among the major sectors, financial institutions posted the highest gain of 5.10 per cent, closely followed by engineering with 4.50 per cent, telecom 3.90 per cent, food 3.80 per cent and banking sector 3.10 per cent. Gainers outnumbered the losers, as out of 355 issues traded, 199 closed higher and 115 ended lower while 41 issues remained unchanged on the DSE floor. A total of 215,395 trades were executed in the day’s trading session, with a trading volume of 390.72 million shares and mutual fund units. The market-cap on the premier bourse also rose to Tk 3,522 billion on Wednesday, from Tk 3,454 billion in the previous session.The Chittagong Stock Exchange (CSE) also ended higher with its All Shares Price Index (CASPI) soaring 275 points to close at 13,165 and the Selective Categories Index — CSCX — rising 161 points to finish at 7,961. Of the issues traded, 164 gained, 90 declined and 30 remained unchanged on the CSE. The port city bourse traded 18.84 million shares and mutual fund units with turnover value of Tk 351 million.
Ten cos account for 27pc DSE transactions
The ten most-traded stocks accounted for 27 per cent of transactions on the Dhaka Stock Exchange (DSE) on Wednesday, with Beximco Pharmaceuticals grabbing the top spot of the turnover chart for the second straight session.According to the DSE data, some 5.77 million shares of BeximcoPharma were traded, generating a turnover of Tk 570 million, which was 5.08 per cent of the day’s total turnover of Tk 11.20 billion. The drug maker’s share closed at Tk 97.90 on Wednesday, shedding 0.20 per cent over the previous session. The company disbursed 15 per cent cash dividend for the year ended on June 30, 2019. The BeximcoPharma’s consolidated profit stood at Tk 2.63 billion for a nine-month period from July 2019 to March 2020. The company’s consolidated earnings per share (EPS) stood at Tk 6.48 for the same period as against Tk 5.51 for July 2018-March 2019.The sponsor-directors own only 13.19 per cent stake in the company, while the institutional investors own 36.44 per cent, foreign investors 34.07 per cent and the general public 16.30 per cent as on July 30, 2020, the DSE data show. Brac Bank came second on the turnover chart, with shares worth Tk 409 million changing hands. The bank’s share rose 5.01 per cent to close at Tk 33.50 each. Beximco clinched the third spot, with shares worth Tk 406 million changing hands. The company’s share closed at Tk 20.40, soaring 9.68 per cent. Square Pharma emerged as the fourth, with shares worth Tk 386 million changing hands. The company’s share rose 2.65 per cent to close at Tk 205.30 each. BATBC notched the fifth spot, with shares worth Tk 258 million changing hands. The multinational company’s share closed at Tk 956.70, gaining 3.81 per cent.The turnover of Fu-Wang Food was Tk 211 million. The company’s share rose 8.87 per cent to close at Tk 18.40 each. LafargeHolcim featured a turnover of Tk 193 million. The company’s share closed at Tk 42.70, soaring 5.43 per cent. Nitol Insurance also made its way to the day’s top turnover chart, with shares worth Tk 155 million changing hands. The insurer’s share price rose 7.0 per cent to close at Tk 42.80 each.
ShahjalalIslami Bank approves 10pc dividend
The 13th Extra-Ordinary General Meeting (EGM) and 19th Annual General Meeting (AGM) of ShahjalalIslami Bank Limited were held on Wednesday through digital platform, said a statement. Chairman of the board of directors of the bank Md. SanaullahShahid presided over the meeting. In the EGM the proposal for increasing the Authorized Capital of the company from Tk. 10 billion to Tk. 15 billion has been approved unanimously.The AGM approved 10 per cent dividend (5 per cent stock and 5 per cent cash) for the shareholders and the directors reported and audited balance sheet and the profit and loss account for the year ended on 31st December 2019.
IPDC offers exclusive auto loan
IPDC Finance Limited, the first private-sector financial institution of Bangladesh and automobile company BMW, a German automobile, motorcycle, and engine manufacturing company, jointly introduced a striking auto loan offer recently. With this offer, BMW customers can avail auto loan for 85 per cent of the car price fromIPDC. Customers can also enjoy up to six years of EMI facility (72 flexible installments).
College fees being paid through ‘Nagad’
Fastest growing digital financial service of the country ‘Nagad’, an initiative of Directorate of Posts, has made the arrangements to pay the application fees and registration fees sitting at home to facilitate the admission process of Class XI students in college, says a statement. A fee of Tk 150 is being paid through ‘Nagad’ after applying online for the admission in class XI, started on August 9. From the very beginning, there has been a huge response to the payment of fees through ‘Nagad’.As of noon on Wednesday, fees have been paid against 170,364 applications through ‘Nagad’ wallets and another 28,364 through entrepreneurs.
Prime Bank, Ajkerdeal partner for MSME credit
Prime Bank Limited and country’s leading online marketplace, Ajkerdeal, have joined hands to facilitate MSME financing to e-commerce merchants without any collateral, says a statement. As per an alliance formed recently, the merchants of Ajkerdeal will avail easy access to MSME loan from Prime Bank. It will be a big boost for the country’s promising e-commerce sector as eligible merchants of Ajkerdeal can now enjoy collateral free loan up to BDT 50 lakh and other tailor-made financial solutions. The merchants can also avail a wide range of deposit products and free Internet Banking – ALTITUDE – for conducting broad range of e-transactions. They will need two-year business experience and recommendation letter from Ajkerdeal. The MSME entrepreneurs can apply for loan from the comfort of their office or home as Prime Bank has assigned dedicated Relationship Manager for exclusive service to the valued merchants of Ajkerdeal.