Private sector credit increases 8.42 percent in August
Credit flow to the private sector has been growing gradually as July and August figures show mainly on the back of demand for working capital. Private sector credit rose to 8.42 percent in August from 8.38 percent in July, according to the central bank. July figure had also improved by .40 percentage points from June although it was still 6.8 percentage points lower than the Bangladesh Bank target. The central bank in its monetary policy for this fiscal year had set its private sector credit flow target at 14.8 percent which is unchanged from the previous fiscal year’s target. However, the target could not be met last time.Meanwhile, outstanding loans with the private sector rose to Tk 11,870.11 billion in July from Tk 10,952.02 billion a year ago. It was Tk 11,888.55 billion in June 2021.
Core index hits new high as banks, financial stocks surge
The key index of Dhaka Stock Exchange (DSE) soared to new high as investors put fresh bets on stocks amid positive expectations. The market opened on a positive note and the upward trend sustained till the end following the news that the central bank allowed banks to invest the entire special fund in asset-backed green Sukuk. DSEX, the benchmark index of the DSE, went up 45.52 points or 0.62 per cent to settle at more than 7,297 – the highest since its inception nearly nine years back on January 27, 2013. The DSE 30 Index, comprising blue chips, rose 15.57 points to finish at 2,691, also the highest since its introduction on January 27, 2013. The DSE Shariah Index (DSES) went up 6.51 points to close at 1585. Turnover, a crucial indicator of the market, crossed Tk 21 billion-mark and amounted to Tk 21.35 billion on the DSE, which was 7.82 per cent higher than the previous day’s tally of Tk 19.80 billion.Of Tk 30 billion Sukuk, Tk 7.50 billion is supposed to be raised through initial public offering and the remaining Tk 22.50 billion is supposed to be raised through private placement. Even after the expiry of the first two deadlines for the Sukuk’s IPO, the subscription reached only 7.42 per cent, prompting the issuer of the Sukuk to seek another phase of time extension for the IPO subscription. The third phase of IPO subscription will end on September 30. The subscription of the Sukuk through private placement will continue until January 2022.The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index – CASPI -gaining186 points to settle at 21,334 and the Selective Categories Index – CSCX- rising 114 points to close at 12,805.
Inflation rises to 5.54% in August
he inflation was 5.36% in July, 0.28 percentage points lower than in June. The inflation rate for both food and nonfood items increased last month. And, it increased in urban and rural areas too.Despite an increase in inflation rate for all types of commodities in all areas in August, the moving average inflation for the last 12 months declined compared with the average of the same period in the previous year. The BBS’ regular release titled “Consumer Price Index (CPI), Inflation Rate and Wage Rate Index (WRI) in Bangladesh” revealed that the average inflation for the last 12 months was 5.53%, while the rate was 5.56% in the previous year.The August inflation of 5.54% means that a product or service that cost Tk100 in August 2020, is now causing consumers to spend Tk105.54. The report revealed that the inflation in the food sub-sector rose to 5.16% in August from 5.08% in July. However, non-food sub-sector inflation increased slightly to 6.13% last month from 5.80% in July.However, inflation in rural areas stood at 5.71% in August, up from 5.53% in July. The inflation rate in urban areas increased to 5.22% from 5.06% in July.