BB, SME Foundation sign deal on Tk 500m loan scheme
The SME Foundation with support from Bangladesh Bank (BB) will provide the small and medium enterprises (SMEs) with low-cost loans through different financial institutions. In this regard, the central bank will provide the Foundation Tk 500 million for the special credit scheme. To this effect, the BB and the SME Foundation signed an agreement at the BB headquarters in the city on Tuesday. BB’s SME Division General Manager and SME Foundation Managing Director signed the agreement on behalf of their respective sides. Under the agreement, the Foundation will distribute the loans through different financial institutions, including Brac Bank, Mututal Trust Bank, Bank Asia and Midas Financing Limited. The managing directors and other top officials from all the involving agencies also were present at the agreement signing ceremony. The credit fund will be made available for entrepreneurs of various categories across the country to enhance their respective businesses. Women entrepreneurs will also be considered under the credit scheme.
Rise in pvt sector investment must for stock market growth: Experts
The acceleration in the private sector investment would eventually speed up the growth of the country’s capital market. The Dhaka Stock Exchange Brokers’ Association and online news portal Businesshour24 on Tuesday organised the seminer at a city hotel in Dhaka. Former adviser to the caretaker government AB Mirza Azizul Islam said that the private sector investment remained stagnant at 21-23 per cent for a decade that slowed the demands of funds. Banks fulfilled the existing demands of private sectors, so the companies are shy of raising funds from the capital market and there should be coordinated efforts from all the regulators to bring good companies in the market. According to him, the pricing through book-building method for IPO shares were not appropriate as the prices go against the companies’ fundamentals, and the regulator should monitor the system. Former Bangladesh Securities and Exchange Commission chairman Faruque Ahmed Siddique said that if the private sector investment would not expedite, there would be no demand of funds.
RMG grabs the lion’s share of incentives
The country’s export-oriented apparel units are bagging the most part of the government’s cash incentives, directly and indirectly. The local export-oriented textile industries receive around 40 per cent of the cash incentives. However, a large portion of it is indirectly enjoyed by the readymade garment (RMG) sub-sector. The RMG also receives cash incentives at around 8.0 per cent on their exports to non-traditional markets beyond the North American and European destinations, according to the central bank data. The small and medium enterprise (SME) segment of the textiles sector gets subsidy, at the rate of 3.0 per cent, in the form of an ‘additional facility.’ But the RMG sub-sector does also accrue benefit out of that segment, as it uses mostly the local textile products.
Silco Pharma IPO opens March 07
The initial public offering (IPO) subscription of Silco Pharmaceuticals is set to open on March 07, aiming to raise Tk 300 million from the capital market. The subscription period ends on March 19. The securities regulator — Bangladesh Securities and Exchange Commission (BSEC) — approved the Silco Pharma’s application to raise the fund on December 20, 2018. Using the fixed-price method, Silco Pharma will float 30 million ordinary shares of Tk 10 each, according to the BSEC approval. As of June 2017, five financial years’ weighted average earnings-per share (EPS) of the company stood at Tk 1.46 and net asset value (NAV) per share at 25.41. The company will utilise the IPO proceeds to construct factory building, purchase machinery and delivery van and bear the IPO expenses, according to the BSEC statement.
Index ends near flat amid increased trading activities
Stocks ended almost flat on Tuesday amid increased trading activities, as investors were active on both sides of trading fence. As per the market analysts, shaky investors opted to book profit on stocks which saw sharp gains in recent days while others remained busy rebalancing their portfolios ahead of the earnings and dividend declarations.
Fortune Shoes leads both turnover, gainers charts
Fortune Shoes dominated both the turnover and gainers’ charts of the Dhaka Stock Exchange on Tuesday while ten most traded companies grabbed more than 32 per cent of total transactions. Market analysts said investors showed their buying appetite for Fortune Shoes shares as it posted 41.25 per cent earnings growth for July-December period of 2018. The earnings per share (EPS) rose to Tk 1.13 for July-December 2018 as against Tk 0.80 for July-December 2017. According to statistics from the DSE, about 21.08 million shares of Fortune Shoes were traded, generating a turnover of nearly Tk 766 million, which was 8.50 per cent of the DSE’s total turnover. The total turnover on the DSE stood at Tk 9.01 billion on Sunday, which was Tk 7.19 billion in the previous session.
Bashundhara to invest Tk 447cr to boost cement production
Bashundhara Industrial Complex, the cement manufacturing arm of Bashundhara Group, is set to expand its production capacity with a view to meeting the fast-growing demand for the construction material amid mega project-implementation spree. Located in Madanganj of Narayanganj, the factory’s production capacity at present is 21 lakh tonnes per year. But after the Tk 447.53 crore expansion project, the annual production capacity would go up to 30 lakh tonnes. The new extension unit is expected to go for commercial operation next year, taking Bashundhara Group’s cement manufacturing capacity to 75.60 lakh tonnes. Of the Tk 447.53 crore needed for the project, Tk 285 crore has already been raised from the financial sector, while the remaining amount will come from the business group’s coffer. The demand-supply gap for cement widened to 1.47 crore tonnes last year and is expected to hit 1.8 crore tonnes this year, according to a survey by Bank Asia, which arranged the fund through syndication with three other banks — Pubali, NRB and Janata — and a financial institution, Uttara Finance.
Atlas enters into five-yr deal with TVS Auto
As per an official, Atlas Bangladesh, a state-run listed company, signed a five-year business agreement with TVS Auto Bangladesh (TVS). Earlier, a memorandum of understanding (MoU) between them was signed on May 24 last year. As per the MoU, Atlas Bangladesh will assemble and sell motorcycles of TVS brand to the government and semi-government organisations, government-funded projects, autonomous bodies and any other non-government organisations (NGOs). Atlas also can sell the motorcycles to any individual or retail sales with the prior approval/permission from the TVS Auto. Referring to the earlier news, Atlas has further informed that a permanent business and technical assistance agreement for five years has been signed between Atlas and TVS Auto on Monday.
Improve services at airports to get FDI
As per a top official of Bangladesh Investment Development Authority (BIDA), Bangladesh should upgrade the service quality and facilities at the airports to give foreigners a positive impression about the country’s investment environment. Services and facilities of high standards at the entry points would encourage the foreigners to more invest in Bangladesh. Ensuring pro-investment services is crucial to attract higher foreign direct investment to the country. As per the Executive Chairman of BIDA, there should not be any division between the private sector and the public sector and the two needs to work hand in hand.
Sharika Fantasy receives DITF Honorary Award
As per the BBS, Sharika Fantasy Imaging World Park’ has received the honorary award for the fourth time as the park offered free entertainment to autistic children at the 24th Dhaka International Trade Fair (DITF). Commerce Minister Tipu Munshi and former Commerce Minister Tofail Ahmed handed over the honorary crest to the park’s chief executive officer (CEO) Mahbubur Rahman Polash at the concluding ceremony of the trade fair on Saturday.
Crazy pills flying in
Yaba smugglers are now using air routes to carry the crazy pills to the capital from Teknaf, the gateway for the drugs to Bangladesh. The new route comes amid tougher vigilance on yaba smuggling, especially on highways, by law enforcers since the anti-narcotics drive began on May 4 last year. The new route is being used by different yaba smuggling syndicates, who pay drug mules to bring the contraband items to the capital by hiding those in their rectums and abdomens, according to the Airport Armed Police Battalion (AAPBn).
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)||$ 53.55||↑ 0.45||↑0.85%|
|Crude Oil (Brent)||$ 62.88||↑ 0.46||↑0.74%|
|Gold Spot|| $1,312.31||↑ 1.51||↑0.12%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.8773|
|GBP 1||BDT 108.2017|
|EUR 1||BDT 95.1001|
|INR 1||BDT 1.1861|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<