Govt takes Tk 27.47b Projects for easing land services
The government has taken Projects worth Tk 27.47 billion (Tk 2,747 crore) aiming at easily reaching all land-related services adopting facilities of digitisation to the people’s doorsteps in a hassle-free manner. The Ministry of Land will implement the Projects for automation of the land-related database spending Tk 997 crore (Tk 9.97 billion) and land survey costing Tk 1,750 crore (Tk 17.50 billion) with assistance of the a2i Project. The divisional administration organised the day-long event with assistance of the access to information (a2i) Project of the Prime Minister’s Office (PMO), Cabinet Division, ICT Division, USAID and UNDP. After implementation of these Projects availing facilities of digitisation facilities with assistance of the a2i Project, delivering of all land-related services to the people will be quicker and completely transparent and accountable.
No more Handouts for State Banks
Finance Minister AHM Mustafa Kamal yesterday trumpeted that State Banks would no longer be handed taxpayers’ money to meet their capital shortfall, in yet another sign from the government of its intent to stop pampering the errant lenders. The proclamation comes on the heels of Kamal’s move to not give a single penny to State Banks last fiscal year despite an allocation of Tk 1,500 crore in the budget for the purpose. No fund has been allocated for banks’ recapitalisation in this fiscal year’s budget too. Between fiscal years 2009-10 and 2017-18 the government had injected a total Tk 16,016 crore of taxpayers’ money into the state-run banks — without any tangible improvement in their governance and lending practices to show for. The aim of the state-run commercial banks is to provide funds to the government from their profits and the government will spend the money for welfare activities. But the banks were given money to meet their capital shortfall without any stringent performance improvement conditions, which defeats the purpose of their existence. AHM Mustafa Kamal also reiterated the government’s decision to fix the interest rates for lending and savings at 9 percent and 6 percent respectively — breaking the market mechanism and rendering the monetary policy toothless. The banking sector’s total default loans then stood at Tk 93,370 crore. Six months later, the amount soared to Tk 112,425 crore. A maximum of 9 percent interest rate will be charged on the rescheduled loans, which is much lower than the existing interest rate of 12-16 percent. The tenure for repayment is 10 years with a grace period of one year, which is much longer than the existing duration for any loan at present. The High Court though put a bar on implementing the new rescheduling policy until June 23, which the Supreme Court on July 8 extended by two months.
Major Sectors face price corrections on DSE
The Dhaka bourse on Sunday closed marginally lower due to price corrections witnessed by the major sectors. On the day, most of the major sectors declined marginally on the Dhaka Stock Exchange (DSE). The large cap companies such as Grameenphone, MJL Bangladesh and British American Tobacco Bangladesh Company drag the broad index into red. The day’s turnover also declined marginally following investors’ less participation in share trading. The market opened the Sunday’s session positively and the DSE broad index DSEX advanced 25 points within first 13 minutes. Of the large cap companies, the share price of the Grameenphone declined 1.03 per cent or Tk 3.30 to close at Tk 316.80 each. At the end of the session, the turnover stood at above Tk 4.68 billion which was 2.08 per cent less than the turnover of the previous session. Of the major sectors which witnessed price correction, bank declined 0.2 per cent, fuel & power 0.6 per cent, mutual fund 2.20 per cent, pharmaceuticals & chemicals 0.2 per cent, telecommunication 0.8 per cent and textile 0.8 per cent. Investors’ participation was concentrated mostly on pharmaceuticals & chemicals which grabbed 19.50 per cent of the market turnover followed by engineering 15.80 per cent, textile 13.10 per cent and fuel & power 8.60 per cent. United Power Generation & Distribution Company topped the turnover chart with a value of Tk 178 million followed by Orion Infusion Tk 165 million, Silco Pharmaceuticals Tk 159 million, Beacon Pharmaceuticals Tk 130 million, and KDS Accessories Tk 125 million. The turnover stood at above Tk 431.51 million on the port city bourse CSE.
United Power tops Gainers’ List
United Power Generation & Distribution Company (UPGDC) topped the chart of top 10 gainers following investors’ increased participation. The company featured a turnover of Tk 178.60 million on Sunday and grabbed 3.81 per cent of the total turnover featured by the Dhaka Stock Exchange (DSE). The company’s share price declined 1.41 per cent or Tk 5.80 to close at Tk 406.70 each on the main bourse. Some 437,200 shares of the UPGDC changed hands through 1,757 trades and the company’s market capitalisation stood at Tk 196.81 billion on Sunday. The company’s board of directors has recommended 130 per cent cash dividend and 10 per cent stock dividend for the year ended on June 30, 2019. For the same year, the company has reported consolidated EPS of Tk. 16.08 against Tk. 9.59 for the same period of the previous year. Of other turnover leaders, Orion Infusion featured a turnover of Tk 165.90 million and captured 3.54 per cent of the market turnover. Domestic revenue collection needs to increase to provide fiscal space for growth-enhancing public investment and social spending. Reflecting tight expenditure control, fiscal 2018-19’s budget deficit is expected to remain within 5 percent of GDP and the public debt-GDP ratio broadly stable.
Jute Farmers getting high prices
Local farmers are getting much higher prices for their raw jute in this harvesting season than last season, following the government’s withdrawal of ban on uncut jute export from June, said insiders. Besides, availability of ample water for retting jute timely also helps the farmers to get quality produce this year. However, local exporters of jute-made products are in a tough ride amid low global demand for their products as well as scarcity of quality raw materials. Raw jute of tossa variety was selling at Tk 1,700-2,400 a maund (40 kg) and desi variety at Tk 1,400-1,800 a maund based on quality at farm level across the country for last three weeks. The prices during this year’s harvesting season are 40-50 per cent higher than those of last year, according to the Department of Agricultural Marketing (DAM). Our Tangail correspondent Shahbuddin Manik adds: Newly harvested jute was selling at Tk 1,600-2,000 a maund in Korotia Bazar of the district. A farmer from Karotia Jamidarbari area, told the FE that the price was hardly Tk 1,000-1,500 last year. He grew tossa jute on five bighas of his land, and got 42 maunds of output this year. He sold his produce at Tk 75,000 (excluding price of jute sticks), and made a profit of Tk 25,000, whereas he incurred Tk 32,000 loss by cultivating jute on the same land last year. The sector witnessed a 20.5 per cent decline in shipment last fiscal year (FY), 2018-19, as export dropped to US$ 816 million from $ 1.025 billion in FY 2017-18. Jute yarn sector also witnessed a 20 per cent export decline in FY 19, which maintained a 10-20 per cent growth for the previous five years. Meanwhile, the government has lowered the country’s jute export target to $824 million for the current FY, which was $1.085 billion for FY 19. It has targeted to produce 8.5 million bales (one bale=180 kg) of jute this year on 0.7 million hectares of land.
Prime Bank signs MoU with Uttara Motors
Prime Bank has recently signed an agreement with Uttara Motors Limited at bank’s head office in Dhaka. In presence of Rahel Ahmed, Managing Director & CEO of Prime Bank and Matiur Rahman, Chairman & Managing Director of Uttara Motors Ltd., the agreement was signed by ANM Mahfuz, Head of Consumer Banking Division of Prime Bank and ABM Humayun Kabir FCMA, Director (Finance & Administration) of Uttara Motors Limited on behalf of their respective organisations. Other high officials of both organisations were also present on the occasion. Under the agreement, both Prime Bank and Uttara Motors Limited have jointly initiated the promotion of Motorcycle Financing & Car Loan facilities with preferential offerings. Uttara Motors is an enterprise of Uttara Group of Companies and also the sole distributor of Bajaj Auto Ltd.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|Nikkei 225|| 20,316.02 ||↓394.89||↓1.91%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 53.55 ||↓0.62|| ↓1.14%|
|Crude Oil (Brent)|| $ 58.77||↓0.57||↓0.96%|
|Gold Spot|| $ 1,539.18 ||↑12.22||↑0.80%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.7158|
|GBP 1||BDT 101.574|
|EUR 1||BDT 92.1313|
|INR 1||BDT 1.14939|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<