Stocks end flat after bumpy ride on DSE

The banking sector showed positive movement with 2.89 per cent increase while telecommunication posted the maximum negative movement with 2.68 per cent fall. Of the 30 listed banks, share prices of 25 closed higher, one ended lower while four remained unchanged over the previous session. On the other hand, the largest market-cap Grameenphone (GP), witnessed the highest correction of 2.72 per cent or Tk 9.90 each to close at Tk 353.90. DSEX, saw a fractional gain of 0.18 point to settle at 5,407. The DS30 index, comprising blue chips, fell 0.63 points to finish at 1,892 points and the DSE Shariah Index lost 9.88 points to close at 1,235. Turnover, crossed Tk 8.0 billion-mark and the total turnover stood at Tk 8.18 billion, which was 16 per cent higher than the previous day’s Tk 7.03 billion. The pharmaceuticals, power, financial institutions, engineering and food & allied also lost 1.30 per cent, 1.21 per cent, 0.74 per cent, 0.56 per cent and 0.31 per cent respectively. Of the 337 issues traded on the day, 209 declined, 95 advanced and 33 issues remained unchanged on the DSE trading floor. A total number of 160,661 trades were executed in the day’s trading session with trading volume of 250.88 million securities. The market capitalization of the DSE stood at Tk 3,825 billion, which was Tk 3,848 billion in the previous session. The port city bourse CSE closed slightly lower with its CSE All Share Price Index – CASPI -losing 5.83 points to settle at 16,624 and the Selective Categories Index – CSCX – shedding 2.76 points to finish at 10,065. The losers beat gainers as 143 issues closed lower, 86 ended higher, with 18 issues remained unchanged on the CSE. The port city bourse traded 13.81 million shares and mutual fund units worth more than Tk 465 million in turnover.

Source: http://today.thefinancialexpress.com.bd/stock-corporate/stocks-end-flat-after-bumpy-ride-on-dse-1534090675

Excess liquidity shrinking fast

Excess liquidity, which was burden for banks even a year ago, is fast running down on the back of the strong private sector credit growth. All liquidity available in the banking system that exceeds the needs of banks is called excess liquidity. At the end of March, the total excess liquidity in the banking system stood at Tk 76,890 crore, down 31 percent from a year earlier. Of the Tk 35,110 crore of excess liquidity that was drained, Tk 16,400 crore went just in the first three months of 2018, when banks faced a cash crunch amid a deposit withdrawal trend brought about by Farmers Bank’s precarious financial standing. At the end of fiscal 2017-18, private sector credit growth stood at 17 percent and the deposit growth 10.3 percent, according to the BB. In 2015, credit growth was 12.7 percent against the deposit growth of 12.6 percent. Mismatch between deposit and credit growth is causing the ongoing liquidity crisis to linger, found a survey of the Bangladesh Institute of Bank Management titled ‘Treasury Operations of Banks 2017′. At the end of March, private banks’ excess liquidity diminished 40 percent year-on-year to Tk 21,100 crore, according to data from the central bank. In contrast, state banks’ excess liquidity depleted 33 percent to Tk 42,100 crore.

Source: https://www.thedailystar.net/news/business/excess-liquidity-shrinking-fast-1619995

Export subsidy gets bigger

The export target for this fiscal year is $44 billion, which is about 20 percent more than fiscal 2017-18’s receipts. At present, cash incentive ranging from 2-20 percent is given to 26 product categories. The new products that will get export subsidy are: pharmaceuticals, photovoltaic modules, locally assembled motorcycles, razor and razor blades, ceramics, prayer caps, galvanised sheets and coils, and crabs and eels. They will get cash incentives of 5-10 percent. After meeting 97 percent of the country’s demand, 107 medicines are exported. Now, those shipments will bring 5 percent cash incentive, provided there were 30 percent value addition. Photovoltaic module is a new entrant to Bangladesh’s export basket. With the view to boosting its overseas shipment, 10 percent cash incentive will be extended on their export, provided there was value addition of 30 percent.

Source: https://www.thedailystar.net/news/business/export-subsidy-gets-bigger-1620001

CAPM Unit Fund recommends cash dividend of Tk 11 per unit

The trustee board of CAPM Unit Fund has recommended cash dividend of Tk. 11.00 per unit of Tk. 100 each payable to holders of the units on June 30, 2018, according to a statement. The recommendation comes from trustee meeting of CAPM Unit Fund held at the Bangladesh General Insurance Company Limited (BGIC) board room on Sunday, arranged by BGIC as the trustee of CAPM Unit Fund. The meeting also approved the accounts and audit report of CAPM Unit Fund for the year ended June 30, 2018, showing a net profit of about Tk 10.36 million with earnings per unit of Tk. 11.67.

Source: http://today.thefinancialexpress.com.bd/stock-corporate/capm-unit-fund-recommends-cash-dividend-of-tk-11-per-unit-1534090819