Tax benefits for Manufacturers to go up in budget: NBR
As per the National Board of Revenue chairman, Manufacturers of mobile handset, refrigerator and other electrical and electronic products will get higher tax benefits compared with assemblers of the products in the budget for 2019-2020 fiscal year. At a pre-budget discussion with manufacturing sector leaders held at NBR conference room, he said that NBR would keep a difference in duty benefits and incentives between manufacturers and assemblers to encourage the latter to enter into manufacturing. He made the comment following demand of manufacturers from various sectors including mobile sets, refrigerator and other products to keep a margin to encourage manufacturing in the country. As per the Chairman, NBR became aware that many large brands, as assemblers, were obtaining tax benefits equal to manufacturers, adding that manufacturers should get benefits at higher rate than others. NBR will also provide tax benefits equal to readymade garment sectors to all other export-oriented industries to promote export diversification.
Currency swaps rule Forex Market, cushion reserve
Interbank currency swaps under agreements to exchange cash flows at later dates dominate the country’s foreign exchange market shielding the forex reserve to a great extent from any pressure. Bangladesh Bank, the central bank of the country, recently prepared a note on it elaborating the nature of the forex market. As per Bangladesh Bank, currency swaps, a kind of derivatives, accounted for around 86 per cent of the forex market. The spot market derivatives accounted for 11 per cent with the forward derivatives grabbing the remaining 3.0 per cent. People at different commercial banks familiar with the matter have told the FE that this dominance helps fend off pressure from the country’s foreign exchange reserve to a great extent. Otherwise, the banks in need of dollars could turn to the central bank to meet their requirements putting pressure on the foreign currency reserve. The people mostly acting as treasury heads at the commercial banks have said the state-owned banks usually face dollar shortfalls and they meet the demand through such currency swaps. A currency swap, sometimes referred to as cross-currency swap, involves the exchange of fixed interest along with the principal amount in one currency for the same in another currency.
Japan set to give largest-ever loan to BD for five ongoing projects
Japan is set to provide the highest-ever amount of loan to Bangladesh under a new loan package to facilitate implementation of five large ongoing projects in the port, communications, and energy and power sectors. As per the Officials, a negotiation team of the Japan International Cooperation Agency (JICA) has confirmed the funding for the five projects under its 40th Official Development Assistance (ODA). The JICA mission visited the country last week and sat with all the ministries concerned, including the Economic Relations Division (ERD), to finalise the projects. However, no new project has been listed for the funding. The officials, in this regard, said no demand was placed for new projects during the negotiation, as the existing projects have huge work volume. Besides, issues like lowering interest rate of concessional loans as well as increasing grace and loan repayment periods are still under negotiation. These issues will be finalised during the next visit of the JICA mission, expected to take place next month (May).
Insurance Companies dominate top gainer’s chart
Insurance companies Wednesday dominated the chart of 10 gainers of the Dhaka Stock Exchange (DSE). Of top 10 gainers, seven came from insurance sector whose share prices rose ranging from 6.34 per cent to 9.96 per cent. The companies which were in the chart of top gainers are: United Insurance, Sonar Bangla Insurance, Takaful Islami Insurance, Karnaphuli Insurance Company, Provati Insurance Company, Phoenix Insurance Company, and Bangladesh National Insurance Company. Of the companies, United Insurance was the second gainer with a rise of 9.96 per cent to close at Tk 59.60 per share. The share price of Sonar Bangla Insurance rose Tk 9.86 per cent to close at Tk 57.90 each on Wednesday. The share price of Takaful Islami Insurance rose 9.65 per cent to close at Tk 28.40 each. The share trading of Karnaphuli Insurance Company closed at Tk 16.10 each with a rise of 7.33 per cent. The share prices of Provati Insurance Company, Phoenix Insurance Company, and Bangladesh National Insurance Company rose 6.66 per cent, 6.34 per cent and 5.58 per cent respectively. The three other companies which also were in the chart of top 10 gainers are Standard Ceramic Industries, Hakkani Pulp & Paper Mills, and Fine Foods.
DSE board okays IPO process amendment proposal
Dhaka Stock Exchange on Wednesday approved a set of proposals on restructuring initial public offering process as the bourse detected a number of lapses in the process that continued shattering investors’ confidence over the market. The DSE’s board of directors at a meeting approved the proposals and decided to send those to market regulator Bangladesh Securities and Exchange Commission today for the commission’s approval. According to DSE officials, the bourse wanted amendment to the current book building method and would urge the commission to introduce ‘Dutch Auction’ system where the bidders must take the amount of shares at his/her quoted prices. The bourse backtracked on its previous position in favour of a three-year lock-in period for placement shares and would now propose one year lock-in after the first day of trading at the stock exchange. As per the DSE officials, a three-year lock-in could prevent flow of new IPOs.
HSBC launches enhanced offerings for select Customers
The Hongkong and Shanghai Banking Corporation Limited (HSBC) in Bangladesh has re-launched its HSBC Select proposition – to meet the changing needs of it’s aspirational and globally connected retail banking customers. The new services and offers were announced by the bank at an event titled ‘Noboborsher Notun Shajey – HSBC Select’ recently, where retail banking customers celebrated the beginning of Bangla new year with a traditional carnival and musical evening.
Prime Bank eyes sustainable growth
According to the managing director and chief executive officer, Prime Bank will maintain sustainable profit growth in the coming years and will continue changing business pattern with innovative retail and wholesale products, and include rural people in the banking sector through digital transformation. He made the statement at a press briefing held at Dhaka Club in the capital on Wednesday to celebrate the bank’s 24th anniversary.
More tax benefits for Electrical and Electronic goods Makers
As per the National Board of Revenue (NBR) Chairman, Manufacturers of electrical and electronic goods will get more tax benefits than the assemblers of such products in the next budget for financial year 2019-20. To promote export diversification, the revenue authority will also offer the potential export-oriented industries similar tax benefits as enjoyed by the garment sector. The NBR chief came up with the assurances at a pre-budget discussion with the electrical and electronic product manufacturers at the NBR headquarters in the city’s Segunbagicha area.
International tourism fair kicks off in city today
The country’s largest international travel and tourism fair titled Biman Bangladesh Travel & Tourism Fair (BTTF) 2019 will begin in the capital today (Thursday). President M Abdul Hamid will inaugurate the three-day fair as the chief guest at Bangabandhu International Conference Center (BICC). State minister for Civil Aviation and Tourism Md Mahbub Ali will be present at the inaugural ceremony as the special guest. A total of 10 countries, including host Bangladesh, will participate in the ninth edition of the fair. Biman Bangladesh Airlines Ltd. is the title sponsor of the event.
Excelerate sees BD as growing LNG hub
The US energy giant Excelerate sees Bangladesh as an LNG (liquefied natural gas) market poised for exponential growth to meet the needs of its fast-growing economy. Excelerate delivered the first floating LNG import facility at Moheshkhali Island in August 2018, some two years after deals were done. As per the Excelerate Energy’s Vice-President (business development) Ramon Wangdi, the maiden project came on line and reached its full capacity far quicker than many other countries globally.
RAB arrested brother and sister with Yaba in Ctg
Elite force Rapid Action Battalion (RAB) on Wednesday recovered 13,850 pieces of Yaba tablet and arrested two persons, including a female, for their alleged involvement in smuggling of the narcotic item.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DJIA||26,449.54|| ↓3.12||↓0.01% |
|FTSE100|| 7,471.32||↑1.40|| ↑0.02%|
|Nikkei 225|| 22,172.73|| ↓105.24||↓0.47%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)|| $ 63.69|| ↓0.07|| ↓0.11%|
|Crude Oil (Brent)||$ 71.44|| ↓0.18||↓0.25%|
|Gold Spot|| $1,272.20|| ↓1.78||↓0.14%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.4753|
|GBP 1||BDT 108.8900|
|EUR 1||BDT 94.3357|
|INR 1||BDT 1.1992|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<