BB-BSEC row reins in stocks’ growth spurts
The stock market’s recent growth spurt slowed last week as the tension between the central bank and the stock market regulator over some policy issues has rattled investors. When the DSEX, the benchmark index of the Dhaka Stock Exchange, surged past 7,000 points for the first time, investors and analysts were already talking about whether the index was set to climb further as earnings of the companies improved and the concerns about the impacts of the coronavirus pandemic waned.The DSEX, however, closed at 7,228 points on Thursday, down from 7,258 on the first day of the week. Daily average turnover also dropped by 20 per cent to Tk 2,224 crore in the week.The BSEC passed a rule in June that the stabilisation fund would be formed using the undistributed and unclaimed dividends of the listed companies. The aim is to use the fund, involving around Tk 21,000 crore, to safeguard the interest of the market and investors.Recently, the BSEC asked the Investment Corporation of Bangladesh, Berger Paints Bangladesh, and Walton Hi-tech Industries to offload at least 10 per cent of their shares. Walton issued 0.97 per cent of shares, ICB 3.19 per cent, and Berger 5 per cent. The BB has been mopping up excess liquidity from the banking system to stop the asset bubble since it unveiled the monetary policy in July. In August, it withdrew Tk 19,645 crore from the market. Earlier, investors were allowed to borrow Tk 80 against an investment of Tk 100 if the benchmark index was lower than 7,000 points.
RMG exports overwhelm Dhaka airport
Hazrat Shahjalal International Airport (HSIA) is struggling to handle the mounting pressure of container cargos as buyers of international apparel brands are now keen to take their goods by air to avoid congestion at transshipment ports with growing demand at their home markets. The airport is now handling 1.5 times more cargo than its capacity. Still, the huge number of containers is overwhelming the airport capacity. Freight forwarders said 85% of the goods that Dhaka airport handles are readymade garments. However, freight forwarder leaders are saying the Dhaka airport has lost its handling capacity due to the absence of scheduled flights, failure in the explosive detection system (EDS) and ongoing construction work of the third terminal.Apparel exporters have alleged that due to airline shortage their cargo trucks have to wait three to five days outside the cargo village. At that time traffic police file cases against their vehicles. On the other hand air freight cost has also increased 60% to 100% depending on the destinations.Bangladesh earned $3.38 billion, riding on apparel shipments, in the second month of FY22, which was $2.97 billion in the August of the last financial year. UK retail sales maintained their negative trajectory in August from the month prior, due to Supply chain disruption of Apparel items. However, sales volumes are edging up 0.7%.
NRBC Bank awarded as the best bank in ‘Primary Dealer’ category
Bangladesh Bank issued a letter on Thursday where NRBC Bank was named as the best Primary Dealer (PD) of Bangladesh for its outstanding performance during the last quarter(October-December) and the central bank paid Tk. 5,35,420 as underwriting commission to NRBC Bank.It is to be mentioned that, a primary dealer is a bank or financial institution that is approved to trade national securities treasury bill and bond. Government collects money by selling Treasury Bills(T-Bills) and Bangladesh Government Treasury Bonds(BGTBs) those are issued through auctions. Only Primary Dealers (PD) can submit bids in these auctions where the Central Bank acts as the government representative. Out of 61 banks, only 20 banks are working as primary dealer (PD) presently. The name of the organization of primary dealers is ‘Primary Dealers Bangladesh Limited (PDBL).It is worth mentioning that, NRBC Bank is serving people all over the country through its wide network of 83 branches and 530 sub branches including BRTA, Land registration fees collection booths. Our Bank is also operating 595 agent points all over the country to serve people.
BSEC asks issuers to expedite listing of perpetual bonds
The securities regulator has asked issuers to accelerate listing process of perpetual bonds on bourses as part of the regulatory move to diversify the country’s bond market. The Bangladesh Securities and Exchange Commission (BSEC) made the instruction in a meeting held last week at the BSEC office.The representative of Dhaka Stock Exchange (DSE), top officials of 11 banks and trustees of perpetual bonds attended the meeting held to discuss the latest situation of such bonds so far approved by the BSEC.Of the banks, The City Bank will issue perpetual bond worth Tk 4.0 billion, Mutual Trust Bank Tk 4.0 billion, One Bank 4.0 billion, First Security Islami Bank Tk 6.0 billion, Trust Bank Tk 4.0 billion, Social Islami Bank Tk 5.0 billion, Jamuna Bank Tk 4.0 billion, ShahjalalIslami Bank Tk 5.0 billion, Islami Bank Tk 8.0 billion, EXIM Bank Tk 6.0 billion and Southeast Bank Tk 5.0 billion.