RMG exports drop 19pc in FY’20
The country’s readymade garment (RMG) exports declined by 18.84 per cent to US$ 27.70 billion in the just concluded fiscal year (FY 2019-20). The sector had fetched $ 34.13 billion in the FY 2018-19. In the month of June 2020, the earning stood at $ 1.99 billion, showing an 8.56 per cent decline over that of the corresponding month of last calendar year, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The BGMEA made the disclosures, quoting the National Board of Revenue (NBR) data from June 01 to 29 last. The RMG fetched $1.23 billion and $374.67 million from RMG export in the months of April and May respectively in the just concluded fiscal year. During March to May this calendar year, apparel exports recorded 54.79 per cent decline over that of the corresponding period of 2019. Going forward, the industry might see sales picking up seasonally during Christmas, Ms Huq said adding but a full recovery might take place as late as middle of 2021. The Export Promotion Bureau (EPB), however, has proposed setting a $37.44-billion export target for fiscal year (FY) 2020-21, predicting a 13-per cent growth. The state-owned EPB has also projected an additional $7.6 billion in earnings from the export of services. More than 82 per cent of the proposed $37.44 billion export earnings are expected to come from the RMG sector. The bureau that is yet to publish the overall export earnings data of FY 2019-20, expects the export receipts to reach $33 billion in the final count.
Floor price now applicable for newly-listed companies
The opening prices of the shares of newly-listed companies will be their floor prices after commencing trading on the bourses. The Bangladesh Securities and Exchange Commission (BSEC) has set the floor price for the new companies which will be listed under fixed price and book building method. As per another decision, a company’s last closing price at the OTC (over-the-counter) market will be its floor price after its relisting with the main board. The floor price is the lowest price of the listed securities and trading of no securities will be allowed under this price. As per the BSEC’s decision, the floor price of the shares of a company which went public under fixed price method will be Tk 10 each, also the opening price. As per the BSEC’s latest directive, the floor price of the shares of Express Insurance will be Tk 10 as it issued shares at this price. On the other hand, the floor price of Walton Hi-Tech Industries will be Tk 252 at which general investors are eligible to purchase IPO shares. The Dhaka Stock Exchange (DSE) has approved the relisting of Sonali Paper & Board Mills, a company of the OTC market, with the main board. The company’s share trading will resume at the main board today (Thursday). The company’s last closing price was price Tk 272 each on January 30 last. As per the BSEC’s decision, the floor price of the company’s shares will be Tk 272 at main board.
DSEX tumbles 26pc in outgoing fiscal year
The stock market passed yet another gloomy year as the core index of the Dhaka Stock Exchange (DSE) eroded more than 26 per cent in the outgoing Financial Year (FY) 2019-20. After the stock market crash in 2010-2011, the government came up with some instant market supportive measures. The market even after 10 years of a fragile journey failed to get a strong foothold, as investors were discouraged by one issue after another. Market operators said the market has been in the doldrums throughout the FY 2019-20 amid investors’ confidence crisis while liquidity crunch in the banking sector, gloomy macroeconomic outlook and Covid-19 outbreak exacerbated the situation. The stock market stepped into the new FY 2020-21 amid concern over the depressing macroeconomic outlook, unprecedented economic uncertainties with a little hope of an immediate market recovery amid ongoing Covid-19 crisis. The DSE key index reached highest at 5,384 while dipping to 3,603 on March 18, 2020 which prompted the securities regulator to set floor price of all stocks on March 19 to prevent free-fall of the index amid the Covid-19 pandemic. Between July 01, 2019 and June 30, 2020, DSEX, the prime index of the DSE, lost 1,432 points or 26.56 per cent to close at 3,989 on Tuesday. Most surprising that the large-cap stocks, considered as blue chips, suffered most during the outgoing financial year as foreign investors’ pulling funds out of the market that worsened the situation. The blue-chip index DS30, which groups 30 prominent companies, lost 589 points or 30.50 per cent to come down to 1,340 on Tuesday. The DSE Shariah complaint Index also plunged 319 points or 25.68 per cent to close at 925. Market capitalisation of the prime bourse also shed 22 per cent in the outgoing year to Tk 3,119 billion. The daily turnover, another important gauge, stood at Tk 3.81 billion on an average, down by 47 per cent year-on-year, in the FY 2019-20.
Minhaj named MD of new Unilever entity in BD
Unilever announced Wednesday that KSM Minhaj, currently Customer Development Director of Unilever Bangladesh Limited, has been appointed the Managing Director of the newly acquired company, says a media release.Unilever successfully completed acquiring 81.98 per cent shares of GlaxoSmithKline Bangladesh Limited (GSKBD) from Set first and has proposed to rename the company as Unilever Consumer Care Limited subject to necessary approvals. KSM Minhaj’s new role as Managing Director will be in effect from July 01, 2020.
Community Bank holds 15th board meeting
The 15th board meeting of Community Bank Bangladesh Limited was held at the Police Headquarters in Dhaka on Tuesday. The meeting was chaired by Inspector General of Bangladesh Police and Chairman of Community Bank Bangladesh Limited Dr. Benazir Ahmed BPM (Bar). During the meeting important decisions were taken on the business operation and policies of the bank.
EBL signs MoU with Tradewind
To offer secure and innovative trade finance solutions to Bangladeshi manufacturers and traders involved in foreign trade on sales contract terms, Eastern Bank Limited (EBL) has signed a Memorandum of Understanding with Germany-based trade finance provider Tradewind GmbH. Ali Reza Iftekhar, Managing Director and CEO of EBL and Peter Maerevoet, Global CFO and Regional CEO of Tradewind Asia signed the documents through an online conference on Wednesday.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||3,989.08858||↑ 7.44||↑ 0.01|
|↑ 3.44||↑ 0.01 %|
|FTSE100||$ 6,157.96||↓ 11.78||↓ 0.19 %|
|Nikkei 225||$ 22,121.73||↓ 166.41||↓ 0.75 %|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 39.80 ||↑ 0.53||↑ 1.35 %|
|Crude Oil (Brent)||$ 42.02||↑ 0.75||↑ 1.82 %|
|Gold Spot||$ 1,768.01||↓ 12.95||↓ 0.73 %|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.4707|
|GBP 1||BDT 102.887|
|EUR 1||BDT 93.7225|
|INR 1||BDT 1.10768|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<