FY19 investment likely to exceed gross nat’l savings
The country’s gross investment is projected to exceed its gross national savings in this fiscal year (FY), 2018-19, apparently due to rise in the public sector investment, according to the International Monetary Fund (IMF). The gross investment is projected to stand at 32.3 per cent of the gross domestic product (GDP), up by 2.3 percentage points than that of gross national savings. The Bangladesh Bank recently told the reporters that a group of businesses are reported to have been involved in capital flight, amounting to Tk 40 billion in the guises of import and export. Public investment in terms of the GDP is estimated to be at 9.1 per cent in this FY. It was less than 7.0 per cent of the GDP even a few years back. On the other hand, private investment has been stagnant at around 23 per cent of the GDP for over the past few years. Private national savings have also been almost the same at over 27 per cent of the GDP for the past few years. Public national savings have been hovering around 2.3 per cent. Savings, investment and net export of goods and services are components of the current account balance, which is likely to be negative at 2.3 per cent of the GDP this FY.>
Stocks keep gaining in post-Eid trading
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 25.71 points or 0.46 per cent to settle at 5,596. The DSEX gained about 218 points in the past five consecutive sessions. Among the large cap sectors, pharmaceuticals showed the highest positive movement with 1.45 per cent gain, followed by power with 1.40 per cent and textile 1.10 per cent. The banking sector posted the highest correction of 1.30 per cent, snapping the recent sharp rally. The non-bank financial institutions also lost 0.60 per cent. The two other indices also closed higher. The DS30 index, comprising blue chips advanced 13.61 points to end at 1961 and the DSE Shariah Index rose 14.70 points to close at 1,272. Turnover fell to Tk 4.20 billion, which was 5.62 per cent lower than the previous day’s Tk 4.45 billion. It was also the lowest turnover in 10 weeks since June 10 when the turnover was Tk 4.08 billion. Investors’ participation fell further as many of the investors were yet to resume their trading activities after the Eid vacation, said the stockbroker. Of the 335 issues traded on the DSE trading floor, 200 ended higher, 107 closed lower and 28 issues remained unchanged. Aziz Pipes was the day’s best performer on the premier bourse, posting a gain of 8.43 per cent while National Life Insurance was the worst performer, losing 9.76 per cent. The gainers beat losers as 148 issues closed higher and 62 ended lower, with 23 issues remaining unchanged on the CSE. The port city bourse traded 7.98 million shares and mutual fund units worth nearly Tk 210 million.
BB’s operating profit soars on forex income
Bangladesh Bank’s operating profit jumped 46 percent year-on-year to Tk 791 crore last fiscal year on the back of higher income from the investment of foreign exchange. The central bank will transfer Tk 690 crore as net profit to the state coffer — the amount being more than double the target of Tk 280 crore. The central bank received interest from fixed deposits with foreign banks at an average of 2 percent in 2017-18, which was less than 1 percent in the previous year. The BB’s income from reserve management has also seen a huge year-on-year rise—around 56 percent—last fiscal year. In the balance sheet, the BB showed around Tk 550 crore as asset out of the $81 million (around Tk 676 crore) reserve that hackers stole from its account at the New York Fed in February, 2016. Of the stolen amount, $15 million has been recovered. The banking regulator considers it as asset as processes are underway for its recovery. Bangladesh’s foreign exchange reserve stood at $33.17 billion as of August 13, according to the central bank data.
FDI inflow curve heads downward again
The foreign direct investment (FDI) in Bangladesh dropped again in the past fiscal year (FY) after three years of gaining, according to the latest statistics of the central bank. Provisional data of the Bangladesh Bank (BB) on the annual balance of payments (BoP) showed that the gross inflow of FDI declined by 7.90 per cent to US$ 2.79 billion in FY 2017-18 from $3.03 billion in FY 2016-17. According to the BoP data, the net inflow of FDI also slipped to $1.58 billion in the past fiscal year from $1.65 billion in FY ’17. Thus the rate of decline in the net FDI stood at 4.23 per cent. For FY ’18, the 7FYP projected an FDI inflow worth $ 5.87 billion. But the gross inflow of FDI stood at $ 2.79 billion. Disinvestment, repayment of loans and losses are deducted from the gross inflow to estimate the net inflow of FDI in the BoP as per the sixth version of the Balance of Payment Manual (BPM6), designed by the International Monetary Fund (IMF). The central bank adopted the version two years back and has been adjusting its data following the version since FY ’15. On the basis of quarterly enterprise surveys, the statistics department of the BB finalises the data on gross and net FDI. Generally there is a slight difference between the provisional data on gross FDI in the BOP and the actual data. But the provisional net FDI data reported in the BoP vary far from the data derived from the enterprise survey.
Ctg 70th busiest port worldwide
Chittagong Port is the 70th busiest container port in the world after it moved one notch up in this year’s ranking of the Lloyd’s List. The 2018 edition of Lloyd’s List’s One Hundred Container Ports was published on Saturday and was based on the total throughput of containers in 2017. The country’s premier port handled 25,66,597 TEUs (twenty-foot equivalent units) of containers last year, up 9.36 percent from 23,46,909 TEUs in 2016. The port was ranked 71st, 76th and 87th in the three previous editions. Chittagong Port handles 98 percent of the total containerized goods transport in the country. The Port of Singapore and Chinese ports Shenzhen and Ningbo-Zhoushan held on their respective second, third and fourth position. A total of 21 Chinese ports, eight US ports and seven Spanish ports made it to the ranking. India’s Jawaharlal Nehru Port secured 28th position, up from 33rd spot previously. Mundra was ranked 35th compared to 45th in the last year’s ranking while Chennai dropped to 99th from last year’s 93rd position. Chittagong Port is ahead of Pakistan’s Port of Karachi, which was ranked 83rd.
Govt moves to increase BSTI certification fees by 200pc
The government has initiated a move to increase product certification fees of Bangladesh Standard and Testing Institution by almost 200 per cent. The BSTI meets the operational costs from its income as the government does not provide any grant to the body. The BSTI Council in 1994 fixed the CM fees at 0.10 per cent of annual production value (ex-factory price) for fruit-based products and 0.15 per cent for other products like food, milk, drinks, spices, chemical, leather goods, plastic, fertiliser and pesticide, textile, machinery, electrical and electronic, construction, engineering and melamine. Later in 1997, the council reduced the fee to 0.07 per cent with minimum Tk 1,250 and highest Tk 10 lakh for fruit products and to 0.10 per cent with minimum Tk 1,875 and maximum Tk 15 lakh for other products. The council also kept a provision for allowing rebate of up to 50 per cent of the fee. Manufacturers of all products except for fruit-based ones now pay, after availing rebate, Tk 93,750 for annual product value ranging from Tk 1 crore to Tk 10 crore; Tk 1.81 lakh for value up to Tk 20 crore; Tk 4.25 lakh for value up to Tk 50 crore; Tk 8 lakh for value up to Tk 100 crore; Tk 11,43,750 for value up to Tk 150 lakh; and Tk 15 lakh for value above Tk 150 crore. In the proposed fee structure, the payable fees after availing rebate are Tk 1,43,250 for value ranging from Tk 1 crore to Tk 10 crore; Tk 2,78,250 for value up to Tk 20 crore; Tk 6,60,750 for value up to Tk 50 crore; Tk 12,60,750 for value up to Tk 100 crore; Tk 18,23,250 for value up to Tk 150 crore; Tk 23,48,250 for value up Tk 200 crore; Tk 32,48,250 for value up to Tk 300 crore; Tk 38,48,250 for value up to Tk 400 crore; and Tk 44,48,250 for value above Tk 400 crore.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$68.66||↓0.06||↓0.09%|
|Crude Oil (Brent)||$75.75||↓0.07||↓0.09%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 84.1921|
|GBP 1||BDT 108.2205|
|EUR 1||BDT 97.8733|
|INR 1||BDT 1.2061|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.