TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK


TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

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Rate last updated: 02/01/2014 11:15:04 AM

Important Business News Extracts July 23, 2018

Dhaka Stock Exchange ends flat

The Dhaka bourse Sunday closed flat following the mixed performance played by major sectors. On the day, the turnover value crossed Tk 10 billion-mark after six sessions, as investors’ participation increased on Dhaka Stock Exchange (DSE). The banking sector witnessed correction, whereas other major sectors such as engineering and power performed mixed. DSE broad index DSEX displayed ups and downs throughout the whole session. At the end of the session, it closed 5339.18 points with a gain of 0.03 per cent, or 1.75 points. Shariah-based index DSES and blue chip index DS30 also closed flat. A total of 339 issues were traded on the DSE floor. Of those, 142 advanced, 171 declined and 26 were unchanged. The turnover value stood at above Tk 10.54 billion on the premier bourse.


Share prices of five cos rise abnormally

The share prices of five companies rose abnormally, although there is no undisclosed price sensitive information regarding the hikes. Following the unusual price increase, the Dhaka Stock Exchange (DSE) recently made queries. In response to DSE queries, the companies separately informed that there is no undisclosed price sensitive information for recent unusual price hike of shares. The companies whose share price rose abnormally are Eastern Lubricants, Bangladesh Welding Electrodes, Shinepukur Ceramics, Aman Feed and Bengal Windsor Thermoplastics. The share prices rose between July 7 and July 18, 2018. The share price of Eastern Lubricants rose 21 per cent or Tk 285 to close at Tk 1636.1 each in five sessions as of July 18. The share price of Bangladesh Welding Electrodes rose 23 per cent or Tk 4.1 to close at Tk 21.90 in sessions as of July 18. The share trading of Shinepukur Ceramics close at Tk 19.60 each with a rise of 4.84 per cent or Tk 0.9. During July 8 to July 18, the company’s share price rose 28 per cent or Tk 4.4 to close at Tk 20 each in eight sessions. The share price of Aman Feed rose 40 per cent or Tk 19.70 to close at Tk 68.90 each in 12 sessions as of Sunday. The share trading of Bengal Windsor Thermoplastics closed at Tk 43.30 each on Sunday with no change in price. The company’s share price rose 32 per cent or Tk 10.70 in nine sessions on Sunday.

Source: https://thefinancialexpress.com.bd/stock/bangladesh/share-prices-of-five-cos-rise-abnormally-1532258725

State banks allowed to lend more

Bangladesh Bank has given the go-ahead to four state banks to disburse more loans this year in the wake of shrinking lending activities of private commercial banks. The credit ceiling of Sonali, Janata, Agrani and Rupali was enhanced in the latest meeting that the banking watchdog organises once every three months to review the performance of public banks. The largest of the four, Sonali, saw the ceiling increase to 17 percent for 2018, up from 14 percent set for last year. The bank sat on huge deposits due to slow lending after the Hallmark loan scam. The bank’s credit growth was only 8 percent in 2017, far below the ceiling set in a memorandum of understanding signed between BB and the state banks. Sonali’s credit-deposit ratio was the lowest—35 percent—in December last year, which improved to 40 percent in April this year, according to central bank data. Sonali’s total deposit stood at Tk 1 lakh crore as of April this year against Tk 43,338 crore in the loan book. Agrani and Rupali were allowed to let their ceilings hit 20 percent this year, which is much higher than the industry average for private credit growth of 18 percent last year. Agrani’s limit was increased—which was 17 percent last year—as the bank is investing in three power projects of the government. The bank’s loan-deposit ratio was 55.48 percent as of April this year. Rupali is lending to some new business groups. The loan-deposit ratio of the bank was 61.30 percent as of April. The ceiling was kept unchanged for Janata at 17 percent for 2018.

Source: https://www.thedailystar.net/business/state-banks-allowed-lend-more-1609648

Appetite for junk stocks declines

The delisting of two junk stocks has left an impact on the capital market, as prices of 37 among 44 such companies continued to decline for the second straight day in Dhaka Stock Exchange yesterday. On July 18, the premier bourse delisted Modern Dyeing and Rahima Food Corporation for having no operations for over three years. Industry analysts welcomed the decision saying it would inspire good companies and investors to come to the market. However, stocks on the DSE gained slightly yesterday for a third consecutive day. The DSEX—the benchmark index of the Dhaka bourse—rose 1.75 points or 0.03 percent before finishing the day at 5,339.18. Turnover—another important indicator of the market—also jumped 15.6 percent from Thursday to Tk 1,054.93 crore yesterday, with 22.39 crore shares and mutual fund units changing hands. Among the major sectors, engineering increased 2.36 percent followed by life insurance 1.10 percent, miscellaneous 0.88 percent and pharmaceuticals 0.53 percent. Conversely, banks and financial institutions declined 1.42 percent and 0.79 percent respectively. Chittagong stocks also soared with the bourse’s benchmark index, CSCX, advancing 12.66 points to finish the day at 9,960.75.

Source: https://www.thedailystar.net/business/appetite-junk-stocks-declines-1609657

Telcos not welcome in mobile financial services

The central bank continues to flip-flop over letting mobile operators have a slice of the mobile financial services pie, with its latest decision being that carriers cannot hold any shares in companies that provide MFS. In the board meeting on July 15 that saw the MFS regulation get the green light, the Bangladesh Bank directors decided against letting the mobile operators in the MFS field. The MFS providers in the country will be led only by scheduled banks. The banks, which are already in MFS operation, are permitted to continue with their existing licences or they may form a subsidiary. In case of new applications, the banks will have to form subsidiary companies to run the MFS operation and the company will play as payment service providers (PSPs). One single bank, known as the parent bank, should have at least 51 percent of the equity of the PSP working as MFS. The remaining shares will be owned by NBFIs, NGOs and authorised entities. The subsidiary model-based MFS provider will require a minimum paid-up equity capital of Tk 45 crore. MFS providers will handle foreign inward remittances only if received through credits in nostro accounts of banks in Bangladesh. The amount will be deposited in MFS accounts of the beneficiaries in Bangladeshi taka. No outward or cross-boundary transaction will be undertaken by MFS providers. MFS providers are strictly prohibited from lending from their own funds. But, they can act as agents of banks and NBFIs licensed by the BB and micro-financial institutions licensed by the Microcredit Regulatory Authority in disbursing loans and in accepting repayments on behalf of the principle concerned.

Source: https://www.thedailystar.net/business/telcos-not-welcome-mobile-financial-services-1609666

300 businesses want to invest in Africa

At least 300 local businesses, especially agro-producers and garment makers, are seeking to invest in African countries to grab the benefits of the rising economies of the continent. Most of these investors belong to the group of people who left the country years ago for jobs and are now residing in African countries. The agro producers want to invest in Africa thanks to the availability of vast areas suitable for cultivation of vegetables and rice and the presence of a potential market to sell the produce. Bangladesh Bank has so far received over 100 applications seeking permission to invest in Africa and given go-ahead to six of them. The banking regulator is now examining the proposals case-by-case to give approval to the companies interested to invest in Africa. The garment makers want to invest in Africa to enjoy the zero-duty benefit that the US gives to the products originated in Africa under the African Growth and Opportunity Act (AGOA). The government has given the green light to local DBL Group to invest in the African garment sector. Apart from agriculture, Bangladeshi entrepreneurs have the opportunity to invest in different sectors, including pharmaceuticals, ceramics, jute and jute goods and food processing.

Source: https://www.thedailystar.net/business/300-businesses-want-invest-africa-1609654

Shrimp exports fall for fourth straight year

Shrimp exports fell for a fourth consecutive year in 2017-18 in the face of persistent weak demand in the international market for the locally farmed shrimp. Export earnings from shrimp fell 8.37 percent to $408 million in the just concluded fiscal year, according to the Export Promotion Bureau. Vannamei shrimp, grown in most Asian countries except Bangladesh and some Latin American countries, dominate the world market because of its low prices compared to black tiger and fresh water prawn farmed by 8.33 lakh growers on 2.75 lakh hectares largely in the southwestern coastal districts in the country. Vannamei is sold $2-$2.5 less than the prices of black tiger per pound in the international market, he added. The prices of both black tiger and freshwater prawn have been declining for the last couple of years owing to the increased demand for Vannamei. Local exporters could sell black tiger at $8.70 per pound last year but now get only $6. In terms of quantity, shrimp exports declined about 9 percent to 36,167 tonnes in 2017-18, the lowest since 2001-02. Some 39,705 tonnes of shrimp were shipped in 2016-17, according to the Department of Fisheries. Bangladesh fetched the highest $590 million from shrimp exports in 2011-12, but it began to decline since 2013-14 both in value and volume.

Source: https://www.thedailystar.net/business/shrimp-exports-fall-fourth-straight-year-1609678

Barapukuria power plant shut indefinitely due to coal crisis

Operations of the power plant in Parbatipur was suspended at 10:30pm, Abdul Hakim, chief engineer at the plant told our Dinajpur correspondent. Concerned officials earlier said that the plant was going to shut down in a couple of days for an indefinite period due to its fuel mysteriously disappearing from a yard. Two units of the plant, with the capacity of 125MW each, have already been turned off while the other more efficient unit, with a capacity of 275MW, was starving of fuel and was only producing 150MW. The plant, which depends on coal supplies from Barapukuria Coal Mining Company Ltd (BCMCL), requires 3,300 tonnes of coal a day but now it is using just 600 tonnes. The problem surfaced after the mysterious disappearance of 1.42 lakh tonnes of coal, worth about Tk 227 crore, from the BCMCL yard.


Local and Global Stock Indices *

Index NameClose ValueValue ChangePercentage Change
DJIA25,058.12No Transaction
FTSE1007,678.79No Transaction
Nikkei 22522,391.78↓306.10↓1.35%

World Commodities *

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)$68.17↓2.29↓3.25%
Crude Oil (Brent)$72.99↓0.08↓0.11%
Gold Spot$1,231.81↑2.28↑0.19%

Major Currencies Exchange Rates Movement in Last Seven Days *

Exchange Rates
USD 1BDT 84.0000
GBP 1BDT 110.4264
EUR 1BDT 98.6076
INR 1BDT 1.2229





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