Only six China-funded projects roll so far
After a lapse of three years into signing a deal with China for executing $20 billion worth of 27 projects, only six has got going as of December 2019. Even Bangladesh has received only $904.50 million out of $5,687 million for the ongoing schemes. Talking to the FE, officials from both sides blamed the slow processing of project proposals and a snail’s pace in approving loan documents for this poor progress. A deal for the billion-dollar projects was done during President Xi Jinping’s Dhaka visit in October 2016. For the rest 11 projects, Bangladesh is yet to prepare proposals as things are being processed. The highest disbursement was $533.58 million against Padma rail link project for which China pledged $2,667 million. For the national ICT infra-network project under ICT ministry, $151 was pledged but $138.63 million has so far been disbursed. For the $689m Karnaphuli tunnel project, $266.31 million has been disbursed. Energy ministry received $81.22 million for the Single Point Mooring project, worth $550.67 million. For the $$224.96 Digital connectivity project of the Post and Telecommunication Division, 72.53 million has been disbursed. A loan deal for the $1.4-billion power system network modernisation of the DPDC was signed in last July, but no money has so far been disbursed against it. An agreement for the Padma rail link was inked in April 2018, but the physical progress so far is only 18.93 per cent. The progress in the single-mooring project is only 15 per cent and that in the digital connectivity project under post and telecoms division only 25 per cent.
Ten cos account for 35.51pc of prime bourse turnover
Ten most traded stocks accounted for 35.51 per cent of transactions on the Dhaka Stock Exchange (DSE) on Wednesday, with Standard Ceramic Industries generating the highest turnover. The total turnover of DSE stood at Tk 2.80 billion amid major price corrections. Of the total turnover, Tk 994 million came from transactions of 10 companies, including Standard Ceramic Industries, LafargeHolcim Bangladesh, ADN Telecom, and BRAC Bank. Standard Ceramic generated a turnover of Tk 153.2 million, making up 5.47 per cent of the market turnover. The company’s share price rose 4.08 per cent to close at Tk 731.30 each. LafargeHolcim Bangladesh featured a turnover of Tk 140 million and it captured 5.0 per cent of the market turnover. The company’s share price declined 4.49 per cent to close at Tk 38.60 each. BRAC Bank accounted for 4.37 per cent of the market turnover by generating Tk 122.3 million. The company’s share price closed at Tk 46.50 each on Wednesday, registering an increase of 4.22 per cent. Khulna Power Compamy featured a turnover of Tk 106.10 million and captured 3.79 per cent of the market turnover. The company’s share price declined 2.92 per cent to close at Tk 49.80 each. Northern Jute Manufacturing Company generated a turnover of Tk 94.20 million, making up 3.36 per cent of the market turnover. Other top ten companies include Square Pharmaceuticals featuring a turnover of Tk 82.9 million, Beacon Pharmaceuticals (Tk 61.6 million), Western Marine Shipyard (Tk 53.9 million) and Pioneer Insurance Company (Tk 47.10 million).
DSEX wipes out 231 points in four days
Stocks tumbled for the fourth consecutive session on Wednesday, as low sentiment prompted panic sell-offs by investors. DSEX, the benchmark index of Dhaka Stock Exchange (DSE), witnessed another sharp fall, settling at 1.23 per cent or 53.06 points lower at 4228.36 points. As the free fall continues, the market P/E (price-earning) ratio came down to 11.29. The market opened on a positive note and showed an uptrend for twenty minutes. But soon afterwards, the index started to fall and the trend continued until the end of the session amid volatility. The DSEX lost a total of 231 points in the last four sessions, reaching the lowest level since May 3, 2016. Of 351 issues traded on the DSE on Wednesday, 51 gained, 249 declined and 51 issues remained unchanged. Of the major sectors, telecommunications posted the highest loss of 4.4 per cent, followed by financial institutions (2.2 per cent), engineering (1.9 per cent), pharmaceuticals & chemicals (1.8 per cent) and textile sector (1.7 per cent). Investors’ participation was mostly concentrated on the banking sector which grabbed 13.1 per cent of the market turnover, followed by engineering (12 per cent), pharmaceuticals & chemicals (10.3 per cent) and fuel & power sector (9.1 per cent). According to another market review of International Leasing Securities, the extended bearish vibe in the market kept investors worried and provoked many of them to go for sell-offs to avoid further losses. On the Chittagong Stock Exchange (CSE), the benchmark index — CASPI — declined 0.94 per cent or 122.77 points to close at 12887.69 points. Of 291 issues traded, 47 advanced, 146 declined and 26 issues remained unchanged on the port city bourse. The turnover of CSE stood at Tk 145.35 million.
BD seeks DFQF access to Thai mkt for 36 items
Bangladesh has handed over a list of 36 products to Thailand seeking duty-free quota-free (DFQF) market access to Thailand which Bangladesh thinks can help reduce the existing trade gap with Thailand. The meeting decided that a mission of Thai Medical Association would soon visit Bangladesh to hold consultations with Bangladeshi investors and examine the scope of investment in the medicare sector. The two sides agreed to work closely on agro processing, fisheries, pharmaceuticals and industry sectors. Bangladesh sought Thailand’s technical cooperation in the area of agriculture and health services. Bangladesh also requested Thailand to ease visa in business category. To promote bilateral trade, the two sides decided to participate regularly in each country’s trade fairs, investment seminars. The Thai side agreed to send a delegation to Bangladesh to visit Special Economic Zones in Bangladesh and explore the scope of investing in Bangladesh.
Purbachal’s water supply to be under private sector
Water supply in the Purbachal New Town in the outskirts of Dhaka would be provided by a private sector player, in a development that can be viewed as the government opening up the country’s utility services. In Bangladesh, public entities run structured water supply management under city corporations. Neighbouring India uses public-private partnerships for water supply management in urban areas under a National Water Policy 2002. Rajdhani Unnayan Kartripakkha (Rajuk) is implementing the 6,227-acre project, which sits between Kaliganj and Rupganj with the Shitalakkhya river to the east and the Balu to the west. It is scheduled to have 25,016 residential plots, 1,033 commercial plots and 3,565 other plots, all at a cost of Tk 7,782 crore. The facilities are expected to be ready by the end of 2023, with Rajuk bearing Tk 299.80 crore of the Tk 592.39 crore cost. The consortium will foot the remaining Tk 292.39 crore. The billing rate will be decided in consultation with Rajuk. The consortium will run the supply for 11 years to recover their investment and make a profit before handing over the responsibilities. Meanwhile, Rajuk will provide Tk 56 crore in maintenance cost every year.
84 RMG units lose right to duty-free import of fabrics
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday cut the right of 84 garment factories to duty-free import of fabrics due to poor compliance and safety standards. The BGMEA suspended the units’ Utilisation Declaration (UD), which is a certification determining how much inputs and packaging materials will be used by a factory in manufacturing exportable products. The garment makers’ platform issues the certification, which is vital for duty-free import of fabrics. Another 54 member factories have been given time to show progress so that they can continue availing their certification as their business record is better than that of the 84. There are another 35 factories which closed on failing to generate business, for which they need not face the suspension. The BGMEA took the decisions on the 173 as per a January 5 recommendation of the Department of Inspection for Factories and Establishments (DIFE). He used to export $2 million-worth sweaters employing 350 workers in the city’s Demra.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||4,228.36616||↓ 53.06915||↓ 1.24 %|
|↑ 161.41||↑ 0.56 %|
|FTSE100||7,574.93||↑ 1.08||↑ 0.01 %|
|Nikkei 225||23,649.12||↑ 444.36 ||↑ 1.91%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 60.06 ||↑ 0.45||↑ 0.75 %|
|Crude Oil (Brent)||$ 65.86||↑ 0.42 ||↑ 0.64 %|
|Gold Spot||$ 1,558.85||↑ 2.43||↑ 0.16 %|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.3263|
|GBP 1||BDT 109.292|
|EUR 1||BDT 92.7476|
|INR 1||BDT 1.16195|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<