DSEX soars 246 points in four straight days

Stocks posted a marginal gain on Monday, extending the gaining streak for the fourth straight session, as investors remained active on major sectors issues. Following the previous day’s sharp gain, the market opened on downward trend as the shaky investors booked profit on quick-gaining stocks. But late hours buying spree helped the indices close in green. DSEX, prime index of Dhaka Stock Exchange (DSE), went up by 15.73 points or 0.29 per cent to settle at 5,344. It has been the highest since July 4, 2019, when the DSEX was 5,380. The core index added more than 246 points in the past four consecutive sessions. Total market-cap of DSE surged to Tk 4,418 billion on Monday, hitting a fresh all-time high, driven by the biggest-ever issue -Robi. Turnover, a crucial indicator of the market, stood at Tk 13.47 billion on the country’s premier bourse, falling by 12 per cent over previous day’s six months highest turnover of Tk 15.29 billion. Two other indices also ended higher. The DS30 index, comprising blue chips, gained 8.57 points to finish at 1,924 and the DSE Shariah Index rose 4.87 points to close at 1,231.The Chittagong Stock Exchange (CSE) also edged higher with its All Shares Price Index (CASPI)-gaining 47 points to close at 15,407 while the Selective Categories Index – CSCX rising 29 points to close at 9,292. Of the issues traded, 132 advanced, 117 declined and 43 remained unchanged on the CSE. The port city bourse traded 17.66 million shares and mutual fund units with turnover value of more than Tk 471 million.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/dsex-soars-246-points-in-four-straight-days-1609169168

Big blow for the big industry

For many, 2020 has been a year of despair. The unprecedented effects of Covid-19 have jolted economies and supply chains worldwide with Bangladesh being no exception. As a major player in the garments sector, Bangladesh has been severely affected by the coronavirus fallout. Primarily, the supply of raw materials to local garment factories was disrupted when China—Bangladesh’s main source for such goods—halted all shipments between March and April due to the coronavirus outbreak. But despite all the gloom and doom, Bangladesh’s apparel exporters hope for brighter days ahead with the arrival of a Covid-19 vaccine that would save both lives and businesses. They also look forward to fresh investments that would help add to their nearly $750 billion contribution to the industry’s global value chain.During the March-April period, the garments sector faced order cancellations and delays worth about $3.18 billion.The small and medium enterprises (SME) did not get funds from the government’s stimulus packages in a timely manner due to the stringent conditions placed on the benefit and also because they were engaged in subcontracting, according to Selim. Around 1,200 SMEs are in big trouble as they either lack the work orders or financial strength to deal with the lower price pressure from buyers because of the absence of funds from the stimulus packages. The Covid-19 fallout also forced the garment sector to adopt new policies for the first time in its four-decade history. For instance, factory owners disbursed about Tk 3,000 crore to their workers every month through various mobile financial services (MFS) in a bid to maintain social distancing.2021 will be a significant year for Bangladesh as it will celebrate its 50th year of independence and qualify for graduation from a least developed country (LDC).On the export front, Bangladesh’s garment shipments fell to $0.37 billion in April, the lowest monthly total in the country’s history since 1978, when the first consignment of formal woven shorts were shipped. However, exports started recovering following the arrival of a stimulus package totallingTk 10,500 crore for paying the wages and allowances of garment sector workers. According to the Transparency International Bangladesh, the textile and garment sectors have received about Tk 62,887 crore as stimulus funds from the government and private organisations. In the January-November window of 2020, Bangladesh’s total garment exports stood at $24.83 billion, a 17.64 per cent year-on-year fall from $30.15 billion, according to data from the Export Promotion Bureau (EPB). However, shipments of knitwear items are on the rise following a change in the global fashion sense amid Covid-19, when most people prefer comfy clothes to stay at home with.Of the total earnings from garment shipments in July to November, $7.13 billion came from knitwear items, which registered 4.8 per cent year-on-year growth. Meanwhile, woven items fetched $5.75 billion, a decline of 8.29 per cent, according to EPB data.

Source: https://www.thedailystar.net/business/news/big-blow-the-big-industry-2018829

Credit growth takes another beating in Nov

Private sector credit growth dropped in November once again due to the eroding confidence of businesses amid the second wave of coronavirus infections. The year-on-year credit growth stood at 8.21 per cent in October, down 8.61 per cent from a month earlier, according to data from the Bangladesh Bank. The credit growth in November is the lowest since 2008 at least. Bangladesh Bank’s data goes as far back as 2008.As of September this year, excess liquidity in banks stood at Tk 169,650 crore in contrast to Tk 81,088 crore a year ago.EmranulHuq, managing director of Dhaka Bank, said that imports have declined alarmingly in recent period, hitting the credit growth as well.The outstanding loans in the private sector stood at Tk 1,120,902 crore as of November in contrast to Tk 1,114,322 crore the previous month.

Source: https://www.thedailystar.net/business/news/credit-growth-takes-another-beating-nov-2018817

Summit Oil & Shipping Co. Ltd. (SOSCL), the largest private importer and supplier of fuel oil in Bangladesh

Summit Oil & Shipping Co. Ltd. (SOSCL), the largest private importer and supplier of fuel oil in Bangladesh, won the ‘President’s Industrial Development Award 2018’ in the ‘Small Industry’ category for its outstanding contribution to the national economy.

Source: https://today.thefinancialexpress.com.bd/trade-market/summit-oil-shipping-co-ltd-soscl-the-largest-private-importer-and-supplier-of-fuel-oil-in-bangladesh-1609171109

Mr. Mamdudur Rashid new MD & CEO of NCC Bank

Mr. Mohammad Mamdudur Rashid joined as new Managing Director & CEO of NCC Bank on Monday. Prior to joining NCCBL, Mr. Rashid was serving as the Additional Managing Director (Business) of United Commercial Bank Limited. He was also an Independent Director and Chairman of the Board’s Audit Committee of IPDC Finance Limited. He is a seasoned professional with 31 years of experience, primarily in the fields of Finance and Banking in both global and local markets across several cultures in Bangladesh, India, and Australia & New Zealand.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/mamdudur-rashid-new-md-ceo-of-ncc-bank-1609169664