Focus on digitization of business, e-commerce to propel economy
Speakers at a programme on Tuesday said businesses will have to be fully digitised and e-commerce-based for further development of the country’s economy. To achieve sustainable development goals (SDGs), the country’s heavy industry needs to adopt green technology to address climate change issues, they added. They also said development of small and medium enterprises (SMEs) and various innovations in the sector will be the key to macroeconomic success. The observations came at a discussion titled ‘Relevance of the National Mourning Day and Political Economy of Bangladesh (1952 to 2041)’. The programme was organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at the federation’s building in the city’s Motijheel. The size of the country’s economy was only US$8.0 billion in 1972, which reached around $280 billion recently. The former BB governor said agricultural production of the country has to be doubled by 2030 to achieve the SDGs. 3.7 million students are studying at universities currently while many of the European countries don’t even have such a big population. Comparing the Bangladesh’s economy with Pakistan, Mr Mannan said the country’s export market is now bigger than Pakistan as it is now $33 billion, compared to Pakistan’s $17 billion.
United Power tops turnover chart of DSE
Top ten traded companies captured 30 per cent transaction of the Dhaka Stock Exchange (DSE) on Tuesday while United Power topping the list. Market insiders said investors were mostly active on United Power Generation & Distribution Company’s share ahead of the record date on September 06. The company recommended 90 per cent cash and 20 per cent stock dividend for the year ended on June 30, 2018. According to statistics available with the DSE, about 1.29 million shares of United Power were traded, generating a turnover of Tk 442 million, which was 7.22 per cent of the DSE’s total turnover. The DSE turnover stood at Tk 6.11 billion which was Tk 5.32 billion on the previous day. The share price of the power generation company hovered between Tk 336 and Tk 346.20, before closing at Tk 344.50 each, advancing 2.01 per cent over the previous day. United Power, which was listed on the DSE in 2015 under the book building method, disbursed 90 per cent cash and 10 per cent stock dividend in 2017. The company has also reported earnings per shares (EPS) of Tk 11.51, net asset value (NAV) per share of Tk 40.80 and net operating cash flow per share (NOCFPS) of Tk 10.81 for the year ended on June 30, 2018 as against Tk 10.46, Tk 37.47 and Tk 10 respectively for the same period of the previous year. The company’s paid-up capital is Tk 3.99 billion, authorised capital is Tk 8.0 billion and the total number of securities is 399.23 million. The turnover of International Leasing was Tk 156 million. The company’s share price gained 3.53 per cent to close at Tk 17.60 each. BBS Cables featured a turnover of Tk 148 million. Its share price fell 1.91 per cent to close at Tk 115.20 each. The turnover of IFAD Autos was Tk 138 million. The company’s share price closed at Tk 120.90 each, losing 1.87 per cent. The City Bank featured a turnover of Tk 131 million. The bank’s share price rose 3.46 per cent to close at Tk 35.80 each.
BRTC to buy 300 more double-deckers under second Indian LoC
Bangladesh Road Transport Corporation (BRTC) will soon add 300 more double-decker buses to its fleet after importing those vehicles from India. The state-owned bus operator signed a Tk 2.39-billion contract with Ashok Leyland Limited on Tuesday to purchase the buses under second Indian Line of Credit (LoC). Under the first US$ 1.0-billion Indian LoC, BRTC completed procurement of 290 double-decker buses from Ashok Leyland in 2013. The BRTC chairman said each of the new buses will cost $ 86,500, and will have ramp to facilitate use of wheelchairs by the physically-challenged people. The Cabinet Committee on Government Purchase approved the bus procurement proposal with supplier’s credit on August 1. BRTC signed another contract with TATA on August 16 to procure 500 trucks and 100 non-airconditioned buses. BRTA now has over 400 double-decker buses in its fleet of 900 buses.
ACI Motors becomes sole distributor of Foton Vehicles
ACI Motors Ltd. has signed an agreement with Foton Motor Group on having exclusive dealership and local assembling of Foton Motor in Bangladesh, says a press statement. As per the agreement, ACI Motors has become the sole distributor of a wide range of commercial vehicles of Foton – pick-up van, double cabin pick-up, school van, dump truck, transit mixer, bulk cement carrier, fire service vehicle, cleaning vehicle and heavy crane. Dr FH Ansarey, Managing Director and CEO, ACI Motors Ltd., and David Lee, Executive Vice President of FOTON Motor Group for South Asia, signed the agreement at the ACI Centre, Head office of ACI Motors, in the city on Monday. The investment would help develop the private sector. I hope Ftoton’s entry into the country will help Bangladesh adopt new technologies and business knowledge.
DSEX exceeds 5,600-mark after four months
Stocks returned to higher on Tuesday after a single-day break, with core index of the prime bourse crossing 5,600-mark after four months. DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 34.44 points or 0.61 per cent to settle at 5,619. The DSEX crossed the 5,600-mark after nearly four months since May 09. Two other indices of the DSE also ended higher. The DS30 index, comprising blue chips, advanced 9.42 points to finish at 1,974 and the DSE Shariah Index rose 2.04 points to close at 1,275. Turnover, the most important indicator of the market, rose to Tk 6.11 billion, which was nearly 15 per cent higher than the previous session’s Tk 5.32 billion. According to International Leasing Securities, investors mainly took position in the bank, telecom, financial institutions and fuel & power sectors, taking the prime index above 5,600-mark. Out of 333 issues traded, 148 closed lower, 137 ended higher and 48 issues remained unchanged on the DSE trading floor. United Power dominated the turnover chart with about 1.29 million shares worth Tk 442 million changing hands, followed by National Housing Finance, IPDC Finance, Brac Bank and LankaBangla Finance. IPDC Finance was the day’s highest gainer, posting 9.92 per cent gain, while Progressive Life Insurance was the worst loser, losing 8.66 per cent. A total number of 132,816 trades were executed in the day’s trading session with trading volume of 171.32 million securities.
BB Okays NITA for Chinese group to send Tk 947cr to Bangladesh
Bangladesh Bank has approved the Dhaka Stock Exchange’s proposal for non-resident investors taka account in favour of a Chinese consortium so that the consortium can transfer Tk 947 crore to Bangladesh to buy DSE shares. In accordance with the share purchasing agreement, the consortium would transfer Tk 947 crore against 45,09,44,125 ordinary shares of the DSE at Tk 21 each to be the bourse’s strategic investor. Earlier, on May 14, DSE, Shenzhen Stock Exchange and Shanghai Stock Exchange signed the share purchase agreement after the BSEC on May 3 approved the bourse’s proposal for selling 25 per cent of its shares for Tk 947 crore to the Chinese consortium for making it the strategic investor of the bourse, ending three months of uncertainty over the issue. The Chinese consortium offered technical assistance worth over $37 million to the DSE and the BSEC asked the bourse to evaluate technical and financial offers of the group for the interest of the country’s capital market. The regulator asked the parties to follow securities laws and other relevant laws including Demutualization Act 2013 and Dhaka Stock Exchange demutualization scheme in their activities related to the share sales.
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)||$68.56||↑0.03||↑0.04%|
|Crude Oil (Brent)||$56.95||↑0.00||↑0.00%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.7624|
|GBP 1||BDT 107.7938|
|EUR 1||BDT 97.9434|
|INR 1||BDT 1.1906|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.