‘Market to improve this year on stable economic growth’
The respondents of a survey have expressed mixed views on the capital market performance in 2018. A significant number of respondents feel that the securities regulator has capacity constraint as a regulator. On the other hand, many respondents think that the low level of financial education among most traders is one of the main reasons behind market volatility. Of the respondents, 29 per cent said that the performance of the capital market was moderate in 2018 while 48.5 per cent think that the performance was not good throughout the year. The LankaBangla Securities carried out the ‘Bangladesh Capital Market Sentiment Survey 2019’. The online survey was conducted from January 1, 2019 to January 22, 2019 and 133 respondents from different milieus recorded their responses to the survey questionnaire. A significant number of respondents feel that the country’s stable economic growth will have a positive impact on the capital market in 2019.
BSRM to set up wire plant for Tk 459cr
BSRM Group is set to establish a wire manufacturing plant at Mirsarai in Chattogram at a cost of Tk 459 crore as the country’s leading steel manufacturer looks to capitalise on the impending construction boom in Bangladesh. As per the Chairman of BSRM Group, to be christened BSRM Wires, the new concern of the port city-based business group will manufacture four types of wires that are currently imported. The steel industry is booming thanks to the mega projects that the government has set in motion. The prices of raw materials of wires are very low in the international market but the prices of the finished goods end up being high for Bangladesh due to imports. According to him, Local manufacturing will reduce their prices. The plant is being implemented with 70 percent bank financing and 30 percent equity investment.
961 export-oriented RMG units come under digital mapping A total of 961 export-oriented readymade garment (RMG) factories located in Dhaka district have been brought under the digital mapping system to have better ideas about the industry based on credible data. Under the public database system, the authorities map factory names, GPS location, postal address, number of workers, products, export countries, brands and buyers, memberships, affiliations and certifications. Of them, 855 units are registered by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and 144 are members of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). There are some units that have registered with both the trade bodies. About 774,422 workers have been listed under the mapping where 60.8 per cent are female and 39.2 per cent are male workers.
DITF ends with Tk 200 crore export orders
The 24th Dhaka International Trade Fair-2019 ended on Saturday with businesses receiving export orders worth around Tk 200 crore. As per the Commerce Minister, the businesspeople bagged higher export orders this year as last year the figure was around Tk 160 crore. According to a senior parliamentarian, the country’s export earnings were $35.67 billion in 2018 while the earnings were expected to be $39 billion in 2019. The government has also set a target of exporting $60 billion worth of products and services by 2021 when the country will celebrate 50 years of independence.
Textile sector needs Tk 10,000cr investment
Bangladesh needs Tk 10,000 crore additional investments in the primary textile sector to reduce its import dependence for fabrics for the export-oriented garment sector. For instance, in 2018 Bangladeshi garment exporters imported 5.52 lakh tonnes of fabrics worth Tk 33,156 crore, according to data from the National Board of Revenue and Bangladesh Textile Mills Association (BTMA). The local textile millers can supply 4 billion metres of fabrics, so Bangladesh imports 6 billion metres of fabrics from China and 3 billion metres from India. Currently, the local textile millers can meet 85 percent of the demand from the knitwear sector and 35 percent from the woven sector, according to data from the BTMA.
BD ranks 121st economically freest country
Bangladesh has become 121st economically freest country in the world with a score of 55.6, according to the economic freedom index of Heritage Foundation. The country’s overall score has risen by 0.5 points, with higher scores on factors like property rights and government integrity countering declines in investment freedom and fiscal health. The 2019 index also ranked Bangladesh 27th among 43 countries in the Asia-Pacific region. The country’s overall score is below the regional and world averages of 60.6 and 60.8 respectively. According to a report, approximately 6.0 per cent robust growth annually for two decades has been driven by a rapid rise in private consumption and fixed investment.
Govt. to install power grid in northern region
As per the officials, the government is going to install a 400-koilovolt (KV) high-voltage power transmission line in the country’s northern region in order to import electricity from India, Nepal and Bhutan, and the proposed 260-kilometre-long power grid from Barapukuria to Kaliakoir through Bagura will be the first one in the northern Bangladesh. The state-run Power Grid Company of Bangladesh (PGCB) will construct the electricity transmission line with the financial support from the Indian second Line of Credit (LoC-II). It has already taken up a Tk 33.22 billion project to lay the transmission grid. Out of the total cost, more than half will come from the Indian LoC-II as the project assistance. The rest will be provided from the government’s own funds.
Govt. set to take up pilot project for marine resources exploration
As per one official, the government is set to take up a pilot project for exploration of marine resources in the Bay of Bengal. Under the project in line with directives from the Prime Minister’s Office, the fishermen, who are engaged in catching fishes in the sea, will be provided with financial assistance and other logistic supports and Govt. have started working on the project. It is estimated that huge fishes of different varieties are being netted from the Bay every year. But the local fishermen in the coastal areas catch only an insignificant portion of the fishes for lack of logistical supports. Around 1.0 million families are fully dependent on the sector, including over 0.7 million families directly involved with catching fishes using only around 75,000 wooden boats and around 5,000 trawlers at present.
LankaBangla signs deal with paprii.com
LankaBangla Finance (LBF) recently signed an MoU with paprii.com for its customer privilege. Md Minhaz Uddin, Head of Cards of LBF, and Kazi Fouzia Hossain, CEO and Co-Founder of paprii.com, signed the MoU on behalf of their respective organisations. Under this MoU, LBF Card member will enjoy 15 per cent discount (round the year). For this Valentine’s Day, card member will enjoy 20 per cent discount till February 28 from paprii.com for any e-commerce transaction.
Premier Bank to raise lending to CMSMEs
Premier Bank Ltd., a leading third generation private sector bank, looks to expand its credit portfolio in the Cottage, Micro, Small and Medium Enterprises (CMSMEs) sector to 50 per cent of the total credit exposure from existing 35 per cent by 2021. Of the total credit in this sector, 30 per cent will be disbursed to manufacturing segment, 31 per cent to services-based segment and 39 per cent to the trading segment. Managing Director and CEO of the bank revealed the bank’s plan in an interview with The Financial Express recently. At the same time, the bank is also committed to reducing non-performing loan rate to zero per cent by the end of 2020 to make it stronger and healthier.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DJIA||25,106.33|| ↓ 63.20||↓0.25%|
|FTSE100||7,071.18|| ↓ 22.40||↓0.32%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 52.72||↑ 0.08||↑0.15%|
|Crude Oil (Brent)|| $ 62.10||↑ 0.47||↑0.76%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.6868|
|GBP 1||BDT 108.3326|
|EUR 1||BDT 94.7586|
|INR 1||BDT 1.1735|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<