Export target to be 15pc higher: Commerce Minister
The government is likely to set a 15 percent higher export target for this fiscal year as it looks to hit $60 billion in receipts by 2021, said Commerce Minister Tipu Munshi yesterday. If the target is achieved Bangladesh’s export will be $46.60 billion, up from $40.53 billion in the immediate past fiscal year that ended on June 30, according to data from the Export Promotion Bureau (EPB). To boost receipts, the government will allow rice export of two lakh tonnes by eligible Businesses, Minister said in a press conference at his secretariat office. “Around 30 lakh tonnes of potatoes have been surplus this year in Bangladesh. We are also in talks with Malaysia and the Philippines to export potatoes,” he added. He is expecting good receipts from shipment of jute and jute goods as the demand for products made from natural fibres are on the rise around the world for growing environmental consciousness.
BSEC approves public issue rules
The stock market regulator BSEC approved on Tuesday public issue rules, raising the lock-in period for placement shares to two years from one year earlier. The approval came at a meeting held at the Bangladesh Securities and Exchange Commission office in Dhaka. A lock-in period is a predetermined amount of time after an initial public offering (IPO), during which large stakeholders are restricted from selling their shares. On the other hand, placement shares denote pre-IPO capital raising. The securities regulator brought a number of changes to the public issue rules 2015. According to the new public issue rules, the lock-in period will be counted from the date of commencement of trading, instead of the prospectus issue date. For sponsor-directors and those holding 10 per cent or more shares, the lock-in period will three years as before, but the period will be counted from the date of commencement of trading, instead of the prospectus issue date. The lock-in period for placement shareholders and alternative investment funds will be two years.
Record loan rescheduling at Social Islami Bank
Social Islami Bank rescheduled a record amount of loans in the first quarter of 2019 and yet failed to arrest its default loans from spiralling, in a worrying development for the Bank that saw a hostile takeover from a controversial Business group last year. Between the months of January and March, SIBL rescheduled Tk 2,950 crore, which is exponentially more than what it had been rescheduling in a year. For instance, it rescheduled Tk 390.31 crore in 2018, Tk 375 crore in 2017 and Tk 188.28 crore in 2016, according to data from the Central Bank. And yet, SIBL’s default loans are racing ahead: in the first three months of the year its default loans soared 11.70 percent to Tk 1,559 crore. The Bank also failed to keep the required provisioning against its loans — an indication that its financial health is wobbly. At the end of March, SIBL’s provisioning shortfall was Tk 275 crore.
DSE, CSE break seven-day losing streak
Stocks returned to the green on Tuesday, spanning a seven-day losing streak, as investors rushed to take positions in low-priced securities. DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 32.96 points or 0.64 per cent to finish at 5,124, after losing 289 points in the past seven consecutive sessions. Market analysts said lucratively priced fundamentally sound stocks attracted bargain hunters as their price came down to significant low. However, they said most of the investors remained cautious reflecting low trading activities. Two other indices also ended higher. The DS30 index, comprising blue chips, advanced 10.96 points to close at 1,829. The DSE Shariah Index gained 8.92 points to settle at 1,175.
New tests find lead in milk
Amid concerns about the quality of the packaged and non-packaged milk available in the market, Bangladesh Food Safety Authority (BFSA) has now detected lead, a harmful heavy metal, in pasteurised milk of 11 brands. The Companies are Milk Vita (state-run), Aarong Milk, Pran Milk, Dairy Fresh, Igloo Milk, Farm Fresh, Aftab Milk, Ultra Milk, Ayran Milk, Pura Milk and Safe Milk — all registered with Bangladesh Standard and Testing Institution (BSTI). The BFSA carried out a series of tests last month at the laboratories of six government and nongovernment organisations — Bangladesh Atomic Energy Commission, Bangladesh Agricultural Research Institute, Bangladesh Council of Scientific and Industrial Research, Plasma Plus, WAFFEN Research and International Centre for Diarrhoeal Disease Research, Bangladesh.
VAT returns submission online begins in Aug
Businesses will be able to avail the facility of online payment of value-added tax and submission of VAT returns from next month. VAT Online Project (VOP) of the National Board of Revenue has already completed all preparations and made the system open for Businesses across the country to file their VAT returns online. Testing and trial of VAT e-payment system have also been completed and the VOP found that the system was working smoothly, VOP officials said. They said that traders would be able to submit VAT returns online from anywhere without visiting VAT offices from mid-August when they would file their first returns of the new fiscal year of 2019-2020.
New Vice Chairman for UCB
Bazal Ahmed has recently been elected as Vice Chairman of United Commercial Bank. The election took place at the bank’s 439th board meeting. He is also a member of the Bank’s Executive Committee. Mr. Ahmed is the Managing Director of Taj Accessories (Pvt.) Ltd and Saikat Textile and the proprietor of Taj Trading.
EBL, PRAN-RFL sign supply chain financing deal
Eastern Bank Limited (EBL) has recently signed a supply chain financing deal with PRAN-RFL Group. Under the agreement, EBL will provide loan facilities to the suppliers and dealers of PRAN-RFL. Ahmed Shaheen, Deputy Managing Director and Head of Corporate Banking of Eastern Bank Ltd and Uzma Chowdhury, Director of PRAN-RFL Group signed the agreement on behalf of their respective sides, according to a media release received today (Saturday).
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)|| $ 57.64||↑0.02||↑0.03%|
|Crude Oil (Brent)||$ 64.56||↑0.21||↑0.33%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.9039|
|GBP 1||BDT 103.2150|
|EUR 1||BDT 93.1080|
|INR 1||BDT 1.2083|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<