Rising Chinese investment won’t hit other FDI sources
The Bangladesh Bank (BB) has dismissed the possibility of any negative impact on the country’s overall FDI (foreign direct investment) inflow because of growing Chinese investment here under the Belt and Road Initiative (BRI). It rather suggested the possible users of BRI funds to maintain good credit rating of the reputed international credit agencies to ensure proper use of the financing. While unveiling the second half-yearly (H2) monetary policy statement (MPS) in the capital on Wednesday, BB Governor Fazle Kabir said the country’s FDI inflow has substantially increased following Bangladesh’s inclusion into China’s BRI. FDI from China stood at $ 506.13 million in FY 18. According to the Governor, investment from different international funds, including the China-led Asian Infrastructure Investment Bank (AIIB), and increased communication of big corporate firms with different global funding agencies, will play an important role in raising both FDI and portfolio investment in Bangladesh.
BB holds on to cautious monetary policy stance
The monetary policy statement (MPS), announced Wednesday by the country’s central bank for the second half (H2) of the current financial year, maintained a ‘cautious’ monetary policy stance with slight downward revision of the private sector credit growth target and notable increase in the same for the public sector. The MPS has kept the policy rates unchanged and described the current state of non-performing loans (NPLs) as a key challenge. As per the Governor, Bangladesh Bank (BB) promised to lend support to achieving the government’s GDP growth target, but made it a point that the central bank would always keep a close watch on inflationary trend. Classified loans in the country’s banking sector pushed up interest rates by around 1.0 percentage point in September 2018, creating a gap between the deposit and lending rates, according to the central bank.
Govt. to help create 5,000 e-commerce entrepreneurs
The commerce ministry along with one of its wings, Business Promotion Council, has taken up a plan to train up about 5,000 e-commerce entrepreneurs in cooperation with the e-Commerce Association of Bangladesh (e-CAB) in the next three years. The e-CAB is inviting applications from interested youths, including those who are currently working for different online business houses and are interested to develop their own business ventures. As per the General Secretary of the e-CAB, females will get priority in enrolment for the training session which will begin from the first week of February. The initial plan is to select 2,000 trainees from Dhaka, 1,200 from Chattogram and 300 each from all of the other divisional cities.
EMRD spends 54pc of ADP allocation in H1
The Energy and Mineral Resources Division (EMRD) has spent on an average 54.14 per cent of the allocation against the projects being implemented under the Annual Development Programme (ADP) during the first half (July-December) of the current fiscal year (FY 2018-19). A project review meeting of the EMRD under the Ministry of Power, Energy and Mineral Resources (MPEMR) at Bangladesh Secretariat on Wednesday revealed the implementation status of the projects.
Rooftop solar power sales growing fast in city
The sale of unconsumed rooftop solar electricity to government power distribution entities is rising fast in the capital city, reports UNB. According to the latest statistics placed in a review meeting at Power Division, the number of such consumers who are selling their unconsumed solar power to the government distribution companies stood at 50 as of January 27, which was just three in December last year. According to a top official of Dhaka Power Distribution Company (DPDC) the rise is more significant in terms of volume and all the purchases are being made under the Net Metering System introduced by the government recently. Also the volume of purchase was 13.3 Kilowatt peak (KWp) until December last which increased to 450 KWp in January this year.
IPO subscription of Runner Automobiles opens today
The IPO (initial public offering) subscription of Runner Automobiles will open today (Thursday) and will continue till February 10. Some 5.60 million shares (40 per cent) will be issued to general investors through IPO (initial public offering) subscription at a price of Tk 67 each. Under the book building method, the Runner Automobiles will raise a capital worth Tk 1.0 billion issuing 13.93 million ordinary shares. As per the regulatory approval, the company will use the IPO proceeds for research and development, purchase of machinery, repaying bank loans and meeting expenditure for the IPO process. The book-building method is a process through which an issuer attempts to determine the price of a share based on the demand from institutional investors. The cut-off price of the shares of Runner Automobiles earlier was fixed at Tk 75 each as discovered by eligible investors (EIs) through electronic bidding under the book-building method.
Chinese consortium moots development plans for DSE
The Dhaka Stock Exchange’s strategic investor, a consortium of Shenzhen and Shanghai stock exchanges — has tabled a number of business and technological proposals including capital formation and centralisation of trading system for the development of the bourse.
The proposals were made at a DSE board meeting held at the DSE office premises on Tuesday. The consortium’s proposals also included introduction of a small and medium enterprise board and product diversification. The group suggested medium- and long-term technological plan to develop trading system, automation system for information dissemination and installing data centre as per its early commitment for technological support. It also advised to form a free and strong research team. Earlier, on September 4 last year, the Chinese consortium became strategic partner of the country’s premier bourse after buying 25 per cent shares of DSE for Tk 947 crore. The Chinese consortium offered technical assistance worth over $37 million to DSE.
91pc family businesses expect to grow in 2yrs
About 91 percent of family businesses in Bangladesh, mostly run by first generation entrepreneurs, expect to grow in the next two years as many of them posted double-digit growth last year, PricewaterhouseCoopers (PwC) finds in a survey. The family businesses in Bangladesh do not just expect to grow. The growth is expected to change some fundamental characteristics of the firm. Significantly, 75 percent of the family business owners are seeking professionals outside the family to help them run their businesses.
Brazil wants to become BD’s development partner: Envoy
Brazilian Ambassador in Dhaka Joao Tabajara de Oliveira Junior has said the Latin American country wants to strengthen the mutual relationship with Bangladesh and wants to become its development partner. As per the Brazilian envoy, these while paying a courtesy call on Agriculture Minister at the latter’s Secretariat office in the capital on Wednesday.
New Chairperson of Prime Insurance Executive Committee
Mahanur Ummel Ara has been elected as the new chairperson of the Executive Committee of Prime Insurance Company Limited at its 310th board meeting held recently. After completion of graduation she entered business and created own way. She is a Director of Shepherd World Trade Limited, life member of Gulshan Youth Club Limited, Gulshan Society and actively involved with a number of other social organizations.
11 professionals win awards from CFA Society
CFA Society Bangladesh, the local member society of CFA Institute, has awarded eleven local investment professionals. The local investment professionals have received the prestigious CFA (Chartered Financial Analyst) award on Tuesday at a city Hotel.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||5,884.11144|| ↓40.42133 ||↓0.68%|
|FTSE100||6,941.63||↑ 107.70|| ↑1.58%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 54.59||↑0.36||↑0.66%|
|Crude Oil (Brent)|| $62.21||↑0.56||↑0.91%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.8174|
|GBP 1||BDT 110.0774|
|EUR 1||BDT 96.4319|
|INR 1||BDT 1.1785|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<