Decade-high cotton prices set to make RMG costlier
Bangladesh’s main export, readymade garment, is poised to be costlier as global cotton-price index hit a decade-high with its cascading impact on the entire industrial chain, textile makers warn. Bangladesh Textile Mills Association (BTMA) Tuesday said the price spiral of imported cotton could boost the price of locally produced yarns by 15 per cent, and, in turn, it would add up to the prices of exportable readymade garment products. They asked the apparel exporters to take care to negotiate garment prices with the foreign buyers for a raise to make up for the possible production-cost hike.The global cotton index remained below 100 points in August and jumped over the mark at the end of last month and hit 107 points on October 01, BTMA president Mohammad Ali Khokon said at a press conference held on the day at its office in Dhaka. This day (October 04) in 2012, the cotton index counted 72.65 points. Earlier on August 21, textile millers and apparel exporters unanimously fixed the upper ceiling of the mostly consumed 30-carded and 30-combed yarn prices at US$4.20 and $4.50 a kilogram respectively provided the price index remained between 85 and 100 points. They also reached a consensus that yarn price will increase or decrease if the index crossed 100 points and went below 85.Out of the 8.2 million bales of cotton, some 37.06 per cent were imported from African countries in the last fiscal while India accounted for 26 per cent followed by 11.35 per cent from CIS countries, 11.14 per cent from the US and 4.65 from Australia.
Stocks end flat after high volatility
Stocks ended almost flat on Tuesday, after witnessing high volatility, despite most of the traded issues saw price fall. The market opened on a positive note, but fell sharply by more than 50 points within the first 30 minutes of trading. However, bargain hunting on selective large-cap stocks saved the market from a big fall. Finally, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), went up 3.84 points or 0.05 per cent to settle at 7,331, after shedding more than 28 points in the previous day. The two other indices also edged higher. The DS30 index, comprising blue chips advanced 12.85 points to finish at 2,778. The DSE Shariah Index (DSES) saw a fractional gain of 0.68 point to close at 1,594. Turnover stood at Tk 23.52 billion on the prime bourse, which was 14.62 per cent lower than the previous day’s tally of Tk 27.55 billion.Bangladesh’s stock market is not overvalued because it did not soar as fast as the economy rose over the years, he said on Monday at the launching programmee of the World Investor Week 2021. Buoyancy in cement, tannery, miscellaneous and financial institution sectors helped the index to close in green despite sell pressure in power, insurance, IT, textile, and telecom and banking sectors.
Among the major sectors, power sector saw the highest correction of 1.10 per cent, followed by food with 0.60 per cent, telecom 0.50 per cent and banking 0.40 per cent. On the other hand, cement sector generated highest return of 5.60 per cent riding on sector heavyweight LafargteHolcim, followed by financial institutions with 0.70 per cent and pharma 0.20 per cent. A total number of 320,474 trades were executed in the day’s trading session with a trading volume of 485.68 million shares and mutual fund units. The market-cap of the DSE, however, dropped to Tk 5,815 billion on Tuesday, from Tk 5,820 billion in the previous day.
HSBC engages apparel sector’s transitioning to circular economy
HSBC Bangladesh organised a webinar on ‘Transitioning towards a circular economy for the apparel sector’ on Tuesday, highlighting the apparel sector’s role towards sustainable fashion amidst the post COVID-19 era, says a statement. Circular fashion industry is a fast-growing movement to reuse and recycle all materials, eliminating waste and pollution and regenerating the environment in a “circular model”. Speaking at the event, Md. Mahbub ur Rahman, Chief Exe-cutive Officer, HSBC Bangladesh, said, “As a responsible global bank, HSBC is committed to the transition to a global net-zero economy by 2050. With a goal to ensure sustainable fashion and encourage a circular economy, we look forward to partnering with our customers, industry players and key stakeholders in mobilising finance and accelerating innovation to lead the transition to net-zero carbon emission.”
New ADB country director for Bangladesh
Asian Development Bank (ADB) has appointed a new country director for Bangladesh. Edimon Ginting, who has 22 years of professional experience, including about 14 years at the ADB. Ginting, a national of Indonesia, would lead the ADB’s operations in Bangladesh and policy dialogues with stakeholders, including the government and development partners. He will oversee implementation of the ADB’s upcoming country partnership strategy for Bangladesh, 2021-2025.