Vaccine optimism lifts stocks to 1.5yr high
The benchmark index of the Dhaka Stock Exchange rose to its highest level in the last one and a half years yesterday thanks to the active participation of institutional investors buoyed by the growing rollout of coronavirus vaccines. The DSEX surged 109 points or 2.10 per cent before closing the day at 5,328.27, the highest since July 7 of 2019. Investors, especially institutional investors have been pouring money into the stock market after the UK, and the US started administering vaccination of Covid-19, said a top official of a leading brokerage firm.The UK administered the vaccines on December 8 and the US on December 14. Mass vaccination across the European Union began yesterday.Since December 8, the DSEX rose 279 points, or 5.5 per cent and the turnover almost doubled. The market value of the stocks in the DSE edged up 3.19 per cent, or Tk 13,603 crore to stand at Tk 439,397 crore yesterday. Turnover, an important indicator of the market, rose to Tk 1,521 crore, which was Tk 1,405 crore on the previous day. Yesterday’s turnover was the highest since September 2017. However, the DSE recorded a turnover of Tk 2,543 on June 28, but it was driven by a block trade for changing the ownership of GlaxoSmithKline to Unilever.The stock of Robi touched the circuit breaker on its second day of trading as it rose 50 per cent to Tk22.50 because of higher demand. Newly listed companies are allowed to rise a maximum of 50 per cent a day in the first two trading days, and then the increase is capped at 10 per cent.Beximco Ltd was the most traded stock with shares worth Tk 126 crore changing hands, followed by IFIC, Beximco Pharmaceuticals, Bangladesh Submarine Cables and LafargeHolcim Bangladesh.Insurance stocks are going through a correction after surging 80 to 90 per cent, and this is very normal, he said. Yesterday, Peoples Insurance shed the most of 6.72 per cent followed by Pioneer Insurance, Bangladesh General Insurance, Republic Insurance and Phoenix Insurance.
Budget execution faces roadblocks
Bangladesh’s external sector came under stress in January after the outbreak of coronavirus disease in China, the country’s largest trading partner, slowed global trade, thus impacting the economy to some extent.Official data showed that the revenue collected by the National Board of Revenue (NBR) rose 3.4 per cent in the July-October period against 3.43 per cent a year ago.The decline in the non-NBR tax collection widened to 18.95 per cent during the four-month period compared to 2.39 per cent last year. Similarly, total expenditure dropped 12.87 per cent in July to October, which was 26.27 per cent in the positive territory in 2019, as the government could not spend much. The implementation of revenue budget was down 2.52 per cent while it was 20.14 per cent in the positive during July to October in the last fiscal year, finance ministry data showed. The pandemic also dealt a major blow to the implementation of the annual development programme (ADP). It plunged 35.06 per cent in the four months, whereas it had risen 48.13 per cent during the same period last year. The budget balance was in surplus of Tk 196 crore from July to October in comparison to a massive deficit of Tk 19,261 crore, year-on-year. Total government spending fell 12.87 per cent in the first four months of the fiscal year as the development expenditure declined 34.57 per cent on the back of slow implementation of the development projects due to the Covid-19 pandemic, the finance ministry said in a report.The excess liquidity in the banking sector stood at Tk 160,979 crore as of August, up 105 per cent year-on-year. Bank borrowing more than halved to Tk 14,008 crore in July to October in FY21 from Tk 33,510 crore a year ago, finance ministry data showed.
19 businesses to get president’s industrial dev awards
Nineteen businesses are set to receive the President’s Industrial Development Award 2018 tomorrow from the industries ministry for their quality and contributions to developing this commercial sector of Bangladesh. Industries Minister Nurul Majid Mahmud Humayun as chief guest is scheduled to hand over the crests and certificates among the firms through a programmeat Pan Pacific Sonargaon Dhaka. Among the winners, four are under a large industries category, four under medium, three small, three micro, three cottage and two hi-tech. They scored the highest under a 100-point evaluation system formulated by a special committee. Points were awarded based on annual turnover (12 points), regular revenue deposit (15), domestic raw material use (10), export income and production of import alternatives (10) and labour training and welfare measures (8).Another 5 points were earmarked for each of employment creation, social responsibility, worker safety, environmental protection, new innovation, product quality and efficient organisational management, quality control laboratory, and development and research. British American Tobacco Bangladesh took the top spot under large industry category followed by Incepta Pharmaceuticals in second position and Energypac Engineering and Olympic Industries jointly in third. From among medium industries, Tafrid Cotton Mills came in first, Sheltech Technology and ECHOTEX jointly second and Envoy Fashions third. Under the small industry category, Concept Knitting took the lead followed by APS Design Works and Summit Oil & Shipping Company.
Bank Asia Ltd was awarded 1st Prize for Best Presented Annual Report-2019
Bank Asia Ltd was awarded 1st Prize for Best Presented Annual Report-2019 (Private Sector Banks) among the South Asian Countries along with Bangladesh by South Asian Federation of Accountants (SAFA). The Institute of Chartered Accountants of Sri Lanka organised the prize giving ceremony recently on a virtual platform.
Sonali Bank MD elected BAFEDA chairman
The election of office bearers (Executive Committee) for the two-year term of 2021 and 2022 of Bangladesh Foreign Exchange Dealers’ Association (BAFEDA) was held recently on a digital platform. MdAtaur Rahman Prodhan, CEO and Managing Director, Sonali Bank Limited, was unanimously elected Chairman of BAFEDA. Dr Mohammad Haider Ali Miah. Managing Director and CEO of Export Import Bank of Bangladesh Ltd and MdMahbubulAlam, Managing Director and CEO of Islamic Bank Bangladesh Limited, were elected Vice Chairman and Treasurer of BAFEDA respectively.