TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK


TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

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Rate last updated: 02/01/2014 11:15:04 AM

Important Business News Extracts August 13, 2018

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

City Bank wins Finance Asia awards

City Bank has recently won two awards ‘Best Bank in Bangladesh’ and ‘Best Investment Bank in Bangladesh’ from FinanceAsia, one of Asia’s financial publications, according to a statement. The winners were announced at ‘Country Awards Ceremony 2018’ held in Hong Kong. The awards reflect City Bank’s consistency, innovation and strong competence in catering to the needs of customers and investors in the fast evolving Bangladesh market, the statement said. This is for the 5th time the bank is recognised as the best bank in Bangladesh by FinanceAsia, after becoming the inaugural winner in 2012.

Source: http://today.thefinancialexpress.com.bd/stock-corporate/city-bank-wins-financeasia-awards-1534090769

Shipment delay weighs on RMG

Shipment delays and late presentation of documents to Bangladesh’s authorities are among the most critical challenges faced by the country’s garment sector, according to a survey. Some 66 percent of the exports could not be delivered on time while late presentation of documents, which poses a money laundering risk, occurred 53 percent of the time, said the survey of the Bangladesh Institute of Bank Management (BIBM). Garment exports account for more than four-fifths of the country’s total exports, earning about $30 billion in 2017, of which woven and knitwear garments constituting around 52 and 48 percent respectively, according to the survey. The survey spoke of another risk: the increasing amount of overdue export bills: 48 percent against letters of credit (LCs) and 53 percent against contracts. The bills increased sevenfold to $119.63 million last year from $16.23 million the year before, said the survey, adding that some 42 percent of the export proceeds were found to have been non-repatriated against contracts.

Source: https://www.thedailystar.net/news/business/shipment-delay-weighs-rmg-1619989

Two cos give Tk 54.6m to workers’ fund

Two companies, Unilever Bangladesh Ltd. and BASF Bangladesh Ltd., contributed Tk 54.6 million to the Bangladesh Workers’ Welfare Foundation Fund on Sunday.The Unilever and BASF handed over cheques for Tk 53.43 million for the year 2017 and for Tk 1.16 million for fiscal year 2017-18 respectively to state minister for labour Mujibul Haque at his office at the secretariat in the city.As per the amended labour law, profit-making companies have to contribute five per cent of their net profits to their participatory welfare funds as well as the government-formed workers’ welfare fund.The ratio of the contribution is 80:10:10 respectively.Labour secretary Afroza Khan, Unilever general manager MM Zillur Rahman and BASF chief finance officer Masud bin Mazid were present at the cheque handover ceremony. So far, 115 local and multinational companies have contributed a certain part of their profit to the Fund and the total amount stood over Tk 3.10 billion.

Source: http://today.thefinancialexpress.com.bd/trade-market/two-cos-give-tk-546m-to-workers-fund-1534091424

Brokers decry 15pc capital gains tax

Stock brokers of the Dhaka bourse are disappointed as they will have to pay 15 percent capital gains tax on the sale of their shares in the bourse to a Chinese consortium. Stock brokers have to part with 25 percent of their shares to a strategic partner as per the Demutualisation Act, 2013. Accordingly, the Dhaka Stock Exchange signed a share purchase agreement with the Chinese consortium, comprising Shenzhen Stock Exchange and Shanghai Stock Exchange, on May 14 to sell the shares worth about Tk 947 crore. As the bourse is not listed, the stock brokers will have to pay 15 percent capital gains tax, whereas the rate is 5 percent for the sponsors of the listed companies. The Chinese consortium has bought 45 crore shares at Tk 21 each. It sought a seat on the DSE board. The consortium, however, said it would not ask for any return on its investment for 10 years.

Source: https://www.thedailystar.net/news/business/brokers-decry-15pc-capital-gains-tax-1619992

Local and Global Stock Indices *

Index NameClose ValueValue ChangePercentage Change
Nikkei 22521,888.62↓409.46↓1.84%

World Commodities *

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)$67.61↓0.02↓0.03
Crude Oil (Brent)$72.65↓0.16↓0.22%
Gold Spot$1,207.91↓2.66↓0.22%

Major Currencies Exchange Rates Movement in Last Seven Days *

Exchange Rates
USD 1BDT 83.8050
GBP 1BDT 106.9100
EUR 1BDT 95.3785
INR 1BDT 1.2057





Dear Valued Patrons,

At the very onset, let me express my heartiest gratitude for allowing us to serve you and I also wanted to reach out to you directly with an assurance that Dhaka Bank is fully equipped to support you during this difficult time.

Last couple of weeks ago we all were living in a peaceful condition, performing our daily tasks freely and perfectly. Entire economy and business environment was also in a good shape, until COVID-19 put a forceful stoppage to the overall life style and economy of the world. We all know that social distancing and cleanliness are the keys to prevent this pandemic. Hence, we urge your conscious effort to limiting public interaction and suspending wherever possible.

In this current situation, Dhaka Bank and its employees are beside you where we are fully online, either working from home or at our offices under a robust Business Continuity Plan (BCP) to serve you with limited branch banking and a full-fledged alternate delivery channel services.

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Moreover, to fulfill your urgent requirement, we have a limited no. of branches up and running by ensuring all kinds of precautionary and safety measures for you.

In case of extreme emergency and facing difficulties in conducting banking transactions, please let us know through our 24/7 Contact Center number 16474 (or, dial +8809678016474 for ISD/Overseas Calls). We are always with you to combat your difficulties.

As you know we are going through a critical phase and the situation is novel to all of us. We are getting lot of new information from various sources everyday about COVID-19 which will be shared at www.dhakabankltd.com.

Thank you for your trust and continued support to us. I firmly believe that jointly we will be able to combat this situation and win against all the odds.

Please stay home, stay safe and take care of yourself and family.

Best regards,

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Dhaka Bank Limited