DSE closes marginally lower
The Dhaka bourse Tuesday closed marginally lower following correction observed by major sectors. At the end of the session, the broad index DSEX closed at 5335.38 points with a loss of 0.23 per cent or 12.68 points. The shariah based index DSES declined by 0.16 per cent or 2.03 points to close at 1266.66 points. The blue chip index DS30 went down by 0.52 per cent or 10.11 points to close at 1902.94 points. Of total issues traded, 113 advanced, 185 declined and 38 were unchanged on the premier bourse DSE. The turnover stood above Tk 7.16 billion which was 18 per cent less than the turnover of the previous session.
Global rating agencies retain stable outlook for Bangladesh
Three global rating agencies have retained a stable economic outlook for Bangladesh due mainly to a strong economic growth and improvement in external profile. The agencies, however, mentioned poor corporate governance in the state-owned commercial banks, which are now facing significant financial risks, as the negative factor for the country’s economy. Bangladesh Bank on Sunday published on its web site the latest sovereign credit rating reports of Moody’s Investors Service, Standard & Poor’s (S&P) and Fitch Ratings. S&P Global Ratings kept its long-term and short-term sovereign credit ratings of the country unchanged at ‘BB-’ and ‘B’ respectively. ‘The stable outlook reflects our expectation that Bangladesh’s consistent economic growth trajectory and strong donor support will continue to raise average income and broadly sustain the country’s external profile over the next 12 months,’ S&P said.
‘These factors are balanced against enduring governance and fiscal weaknesses, and infrastructure deficits’. It, however, said that the rating agency might downgrade the sovereign if fiscal slippages resulted in rising public debt and external donor support declined materially. On the other hand, S&P may raise the ratings if measures targeted at growing the revenue base and boosting collection efficiency materially improve Bangladesh’s fiscal performance.
HSBC launches 8th export awards
The Hongkong and Shanghai Banking Corporation Ltd in Bangladesh yesterday launched the eighth edition of the HSBC Export Excellence Awards to recognise the contribution of the country’s exporters. The awards aim to support businesses to thrive further and connect them with global opportunities. The lender will give away the awards in five categories. Of them, four will be the “Exporter of the Year” in the readymade garments; supply chain and backward linkage industry (apparel); traditional and emerging sectors (non-garment and -textile), and SMEs (non-garment and -textile) categories. This year, the bank has introduced the fifth award titled “Excellence in Import Substitution”. There are two groups in the garment category: in the ‘A’ group, the eligibility criteria has been fixed at $100 million and above in annual export turnover, while it has to be less than $100 million to qualify for the group ‘B’. In the supply chain category, the annual turnover has been fixed at $10 million and above. Export earnings have to be $5 million and above for the award in the traditional and emerging sectors (non-RMG and -textile) category. In the SMEs (non-RMG and -textile) category, the export turnover should be less than $5 million, while it has to be $10 million or above to meet the requirements for the excellence in import substitution category, according to a statement of HSBC. The awards are not exclusive to HSBC customers and are rather open to all Bangladeshi exporters. There is no entry fee, said the statement. The deadline for submitting the nomination is August 31, 2018.
DEEP-SEA FISHING: 16 firms get nod
The government has given the approval to 16 firms to bring vessels to catch tuna and pelagic fishes beyond the 200-metre depth of the Bay of Bengal and in the international waters, said officials of the Ministry of Fisheries and Livestock. Of the 16, nine got the permission to catch tuna and seven for seine fishing to catch pelagic fishes beyond the 200-metre depth, said a senior official of the ministry. Seine fishing is a method of fishing that employs a fishing net called seine that hangs vertically in the water with its bottom edge held down by weights and its top edge buoyed by floats. Ministry officials said businesses that got clearance are required to submit specification of vessels and project profile to the Department of Fisheries (DoF) within six months to bring the ships for licences. Until now, five have submitted their specification. Marine catches accounted for 15 percent of total fish production at 41.34 lakh tonnes in fiscal 2016-17. Of the total marine catch, industrial trawling was 2.62 percent, according to the DoF.
JICA-funded projects in BD: Japan places dos necessary to expedite execution
Japan has urged Bangladesh to conduct feasibility studies properly before it takes up development projects to avoid cost and time overrun. Bangladesh’s largest bilateral development partner also urged the government not to change project directors frequently. It also asked for appointing adequate manpower to execute the projects properly, said a ministry of finance (MoF) official. Most projects get revisions, extending time and costs, and all these affect the target output. The development partner reviewed its supported projects in Bangladesh as some are not performing well, said the finance ministry official. The donor said it takes considerable time from the inception of projects and their approvals in Bangladesh, which delay their implementation, impacting the financial and economic returns. Japan provides nearly US $400 million to $ 600 million in aid to Bangladesh a year.
Power div seeks tax exemption for import of solar panels, cells
The Power Division has sought exemption from paying value-added tax and other taxes on imports of solar panels and cells to boost production and use of solar energy in the country. In a letter to the National Board of Revenue, the Power Division under the power, energy and mineral resources ministry on July 8 said that imports of equipments for solar system should be exempted from taxes like previous financial year 2017-2018. The NBR in the budget for the current FY 2018-2019 imposed 15 per cent VAT and 4 per cent advance trade VAT on import of photovoltaic cells, and 15 per cent VAT on solar panels or modules in addition to existing 5 per cent advance income tax. In the letter, the Power Division said that the government had set a target of producing 2,000 megawatts of renewable energy sources which is 10 per cent of the total required power by 2020.
New chief for Nestle Bangladesh
Nestle Bangladesh Ltd has recently got a new managing director. Deepal Abeywickrema replaces Stephane Norde, who was transferred to Nestle’s Switzerland headquarters. Abeywickrema, a Sri Lankan, was earlier senior vice president for sales at Nestle Lanka Ltd. He joined Nestle Lanka in 1985 in its sales unit. Abeywickrema acquired a wealth of expertise and a deep understanding about business dynamics during his expatriation assignments in countries such as India, Australia, (Fiji and Papua New Guinea) and Malaysia.
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)||$68.74||↑1.04||↑1.54%|
|Crude Oil (Brent)||$73.02||↑0.16||↑0.22%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 84.0936|
|GBP 1||BDT 110.4990|
|EUR 1||BDT 98.2129|
|INR 1||BDT 1.2207|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.