Stocks snap three-day losing streak as GP rebounds Stocks rebounded
on Wednesday, snapping a three-day losing streak, as some investors showed their buying appetite for major sector shares. Market analysts said bargain hunters took position on stocks which suffered losses due to recent price correction, taking the market to the green territory. Grameenphone, which shed more than 4.0 per cent in the past two trading days, rebounded on Wednesday, closing 1.0 per cent higher at Tk 392.90 each. The non-bank financial institutions and banking sector also bounced back, gaining 1.21 per cent and 0.25 per cent respectively.
Deposit through agent banking rises 122pc
Deposits collected through agent banking rose a whopping 122 percent last year from the previous year whereas the whole banking sector experienced a fall in deposit growth. As per the Bangladesh Bank data, Tk 3,112 crore was deposited through the agent banking channel in 2018, up from Tk 1,399 crore a year ago. The amount collected by the outlets—which provide banking services on a limited scale—was only Tk 380 crore in 2016. However, the deposit growth of the banking sector fell by 1.22 percentage points year-on-year to 9 percent in 2018. The impressive performance of the agent banking outlets has given some relief to the private banks from the deposit crisis, industry insiders opined. The BB issued the agent banking guideline in 2013 but the licensees started full-fledged operation in 2016. Currently, 19 banks provide agent banking service with Dutch-Bangla Bank Ltd (DBBL) and Bank Asia are leading the pack with a combined 78 percent market share.
Banks want hike in interest rate on foreign currency trade finance
Banks on Wednesday requested Bangladesh Bank for upward revision of interest rate of foreign currency loans for trade finance which they issued against export and import bills. They made the request at the 21st forum of banks’ authorised dealers held at the central bank headquarters in Dhaka. BB executive director Humayun Kabir presided over the meeting where its general managers Mohammad Khurshid Wahab, Azizul Haque and Abu Taher, along with senior officials of all the scheduled banks, were present. As per the central bank’s instruction of 2013, authorised dealers of banks are allowed to issue foreign currency loans against export and import bills also known as buyer’s credit and supplier’s credit at highest 6 per cent interest inclusive of London Interbank Offered Rate (LIBOR). Officials of the scheduled banks at the meeting said that issuing foreign currency loans at the rate of 6 per cent had become tough for the banks due to the significant rise in LIBOR.
Top ten companies account for 29pc turnover on DSE
Fortune Shoes dominated the turnover chart of the Dhaka bourse for the second straight session on Wednesday while ten most traded companies grabbed more than 29 per cent of total transactions. As per the market analysts, investors continued to show their buying appetite for Fortune Shoes shares as it posted 41.25 per cent growth in earnings 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 10.03 million shares of Fortune Shoes were traded, generating a turnover of nearly Tk 385 million, which was 5.40 per cent of the DSE’s total turnover. The total turnover on the DSE stood at Tk 7.12 billion on Wednesday, which was Tk 9.01 billion in the previous session. The shoe maker’s share price closed at Tk 37.50 on Wednesday, losing 0.53 per cent over the previous day.
LankaBangla recommends 15pc div
The board of directors of LankaBangla Finance has recommended 15 per cent cash dividend for the year ended on December 31, 2018. The final approval of dividend will come at the annual general meeting (AGM) to be held on March 27 in Dhaka, said an official disclosure on Wednesday. The record date is on March 07. The company has also reported consolidated earnings per share (EPS) of Tk 0.85, consolidated net asset value (NAV) per share of Tk 19.14 and consolidated net operating cash flow per share (NOCFPS) of Tk 3.30 for the year ended on December 31, 2018 as against Tk 4.15 (restated), Tk. 18.19 (restated) and Tk (3.38) (restated) respectively for the same period of the previous year.
Service sector’s H1 export earnings soar over 50pc
Export earnings from the country’s service sector swelled up by more than 50 per cent during the July-December period or first half (H1) of this fiscal year (FY), 2018-19, over the corresponding period of last fiscal. Bangladesh fetched more than US$ 2.87 billion during the first six months of the current fiscal compared to $ 1.90 billion in the same period of FY 2017-18, according to the Export Promotion Bureau (EPB) data. Of the total, nearly $ 2.80 billion came from export of services including those of manufacturing, maintenance and repair, transportation, travel, telecommunication and information technology, and other business services in H1 of this fiscal. The amount from export of services was $ 1.87 billion during the July-December period of last FY, as per the EPB figures. Of the total, earning from the government goods and services was nearly $ 1.14 billion in H1 of this fiscal, reflecting a 62.54 per cent rise over the matching period of last fiscal.
Businesses to help in new VAT law implementation
Businesses and VAT (Value Added Tax) officials on Wednesday reached a consensus over the implementing the long-delayed VAT law from next fiscal year. In a close-door meeting with the National Board of Revenue (NBR), the business leaders have expressed their positive views on the implementation of the new law through amendments. A high-powered expert committee of the revenue board has proposed the amendments in its report submitted to the tax-collecting authority recently.
Govt relaxes contract farming term for non-European markets
The government has relaxed the contract farming condition for the exporters of agriculture produces, allowing some time for them to take necessary preparations before entering the highly-regulated overseas markets. Earlier, the Plant Quarantine Wing (PQW) under the Department of Agriculture Extension (DAE) had made contract farming compulsory for the exporters effective from January 15 last. Amid demands by the exporters following a directive in this regard, an inter-ministerial meeting on January 21 last decided to allow the expordters only for this season to ship winter crops to the regions outside Europe without contract farming
BB warns of fraud in Fintech services
As per The Central Bank, Bangladesh’s payment service providers will have to take prompt remedial measures against frauds and forgery for ensuring public confidence in the financial system. Cross-border financial transactions need to be dealt with due diligence because of increasing cyber threat, complexity of transactions and involvement of multiple cross-frontier jurisdictions, it warned. The Bangladesh Bank (BB)’s latest warning came against the backdrop of rising trend in Fintech ecosystem in the last couple of years mainly on payment and clearing systems in Bangladesh. Fintech is the new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services.
Mr. Bashirul becomes Exim Bank DMD
Sheikh Bashirul Islam has been promoted as the deputy managing director of Exim Bank recently, said a press release. Prior to his promotion, he was the senior executive vice president of Exim bank.
Mr. Shayan becomes vice-chairman of IFIC Bank
Ahmed Shayan Fazlur Rahman has been elected as the vice-chairman of IFIC Bank Limited recently. He is an executive director of Beximco Group. As per the press release, Shayan has 10 years of experience in various sectors like pharmaceuticals, fuel, power and energy, textile, ICT and telecom. He is a counsellor of the Abahani Limited. He is appointed as the board director of IFIC Bank as representative of M/s New Dacca Industries.
HC orders list of money launderers, loan defaulters
As per the report UNB and BSS, the High Court ordered on Wednesday the authorities concerned to prepare a list of loan defaulters and money launderers of the last 20 years and submit it to the court. The HC also issued a rule asking the authorities concerned to explain why an order should not be given to form a powerful commission to identify irregularities and corruption in the banking sector in the previous years.
Yaba Smuggling in Cox’s Bazar: 500 agents now take full control
A syndicate of around 500 paid agents and carriers, who once oversaw yaba smuggling on behalf of their godfathers and dealers, has now taken control of the trade in Teknaf and Ukhia, the entry points of the drug to Bangladesh. As per a high official of Cox’s Bazar district police, they are running the business independently and smuggling in the pink pills from Myanmar. Of them, 30 are big traders and they got the names of the agents and carriers by interrogating at least 80 yaba godfathers and dealers.
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)||$ 54.08||↑ 0.18||↑0.33%|
|Crude Oil (Brent)||$ 63.82||↑ 0.21||↑0.33%|
|Gold Spot|| $1,308.60||↑ 2.33||↑0.18%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.8075|
|GBP 1||BDT 107.7513|
|EUR 1||BDT 94.4678|
|INR 1||BDT 1.1836|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<