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 June 14, 2018

Dhaka stocks go into Eid holidays with gains

Dhaka stocks advanced for the second consecutive day on Tuesday, the last trading session before Eid-ul-Fitr holidays, as investors kept bargain hunting but concerns about the country’s financial sectors was yet to wane. DSEX, the key index of Dhaka Stock Exchange, advanced by 0.72 per cent, or 38.77 points, to close at 5,365.22 points on Tuesday after gaining 3.15 points in the previous session. The DSE will reopen on June 18 if Eid-ul-Fitr, one of the biggest religious festivals of the Muslims, is celebrated on June 16. If the Eid is celebrated on June 17, the market will reopen on June 19. On June 7, finance minister proposed the corporate tax on financial entities at 37.5 per cent in the national budget for the fiscal year of 2018-19.A surge in the share prices of Investment Corporation of Bangladesh, United Power Generation and Square Pharmaceuticals continued to lead the market. The average share prices of NBFIs and bank sectors rose by 4.6 per cent and 0.6 per cent respectively. The share prices of miscellaneous, energy and pharmaceuticals also joined the rally. DS30, the blue-chip index of the DSE, added 0.26 per cent, or 5.23 points, to finish at 1,958.21 points. Shariah index DSES gained 0.79 per cent, or 9.72 points, to close at 1,238.18 points.

Source: http://www.newagebd.net/article/43575/dhaka-stocks-go-into-eid-holidays-with-gains

Forex market still volatile

Bangladesh Bank has failed to cool down the volatility in the foreign exchange market despite an injection of more than $2.30 billion so far in fiscal 2017-18. The turmoil in the foreign exchange market will exacerbate in the months to come on the back of higher import payments against lower export earnings, said economists and bankers. Between fiscal 2009-10 and fiscal 2016-17, the central bank bought back huge stacks of greenbacks from the market. It had to reverse its stance from this fiscal year because of bulging import bills. The country’s current account is already facing huge deficits for the higher import payments. Bangladesh’s current account deficit recorded an all-time high of $8.51 billion in the first 10 months of the fiscal year. The inter-bank rate and the BC selling rate have recently reached the same level, meaning banks are accruing huge losses. For instance, yesterday, the inter-bank exchange rate and the BC selling rate of the US dollar were both Tk 83.70. The inter-bank exchange rate of the US dollar has also been maintaining an upward trend in the recent months. Yesterday it stood at Tk 83.70, up from Tk 80.60 a year earlier, according to data from the central bank. Export earnings and remittance inflows grew 6.99 percent and 17 percent respectively in the first 10 months of the fiscal year, but they were inadequate to counteract the current account imbalance due to a 25.18 percent rise in import payment.

Source: https://www.thedailystar.net/business/banking/forex-market-still-volatile-1590970

BSEC to revive bourses’ CFDs to detect cos’ financial data flaws

The Bangladesh Securities and Exchange Commission has decided to rejuvenate inactive corporate finance departments (CFDs) of the stock exchanges to detect extensively deviations and flaws in the financial statements the listed companies submit to the BSEC and the bourses. The commission made the decision after a BSEC investigation team found that the corporate finance departments of the Dhaka Stock Exchange and the Chittagong Stock Exchange remained idle since their inception. Acting on a BSEC move in 2011, the DSE formed Corporate Governance Financial Reporting Compliance and the CSE formed Corporate Finance Department in 2012 to work with the BSEC in tandem to find out anomalies in the financial statements the listed companies submit. The probe conducted by the regulator revealed that the departments remained inactive due mainly to lack of skilled manpower. There was no chartered accountant in the departments of the bourses to run those efficiently, the investigation found. The bourses opened the CFDs to tackle any risk in the capital market and reduce malpractices by the listed companies with their financial reports.

Source: http://www.newagebd.net/article/43698/bsec-to-revive-bourses-cfds-to-detect-cos-financial-data-flaws

Trade deficit widens to $15b in 10 months

The country’s trade deficit crossed US$15 billion in the first 10 months of the current fiscal year (FY). It was attributed to higher import payments than lower export receipts. The gap in trade with the rest of the world rose to $15.33 billion in the July-April period of FY 2017-18. The figure was $8.18 billion in the corresponding period of the previous fiscal. The trade deficit recorded an 87.54 per cent growth in the 10 months to April, according to the latest Bangladesh Bank (BB) statistics. The BB data showed that import expenses jumped by more than 25 per cent while export earnings recorded nearly 7.0 per cent growth during period. The overall import rose to $45.35 billion in July-April period of the fiscal 2018 from $26.23 billion in the same period a year earlier. In contrast, export income stood at over $30 billion in the first 10 months of FY’18 against $28.05 billion in the same period of the year before. In May 2018 alone, export receipts reached $3.32 billion. The monthly target was missed by 1.70 per cent. The monthly export target was $3.38 billion for May of this calendar year. Meanwhile, the higher trade deficit pushed further up the current-account deficit, despite an uptrend in remittance inflow. The country’s current-account deficit reached $8.51 billion during the July-April period of FY’18 against $ 1.80 billion in the same period of the last fiscal year. It was $7.09 billion a month ago. The financial account recorded a surplus of $6.89 billion during the July-April period of FY’18 despite the falling trend in the inflow of foreign direct investment (FDI). Such surplus was $3.23 billion during the same period of the previous fiscal. The gross FDI inflow decreased by 7.35 per cent to $2.37 billion during the period. The inbound flow was $2.56 billion in July-April period in FY’ 17. Besides, net FDI inflow drooped by 4.20 per cent to $1.46 billion from $1.52 billion.

Source: https://thefinancialexpress.com.bd/trade/trade-deficit-widens-to-15b-in-10-months-1528861274

Imports up 15pc in ten months

Overall imports grew by over 15 per cent in the first 10 months of this fiscal year (FY), mainly due to higher import of food grains and fuel oils. The settlement of letters of credit (LCs), in terms of value, rose to nearly US$43 billion during the July-April period in the FY 2017-18 from $37.37 billion in the same period in the FY 17, according to the central bank’s latest statistics. Import of petroleum products soared 21.88 per cent to $2.59 billion during the July-April period of FY 18 from $2.12 billion in the same period of the previous fiscal, the BB data showed. Food grain imports, particularly of rice and wheat, zoomed up by more than 176 per cent to $2.70 billion in the first 10 months of this fiscal from $976.87 million in the same period of the FY 17. Import of consumer goods rose by 57.79 per cent to $6.64 billion during the period under review from $4.21 billion in the same period of the previous fiscal. The exchange rate of Bangladesh Taka (BDT) depreciated significantly against the US dollar in recent months mainly due to higher demand for the greenback for settling import bills. The local currency depreciated by Tk 3.10 to Tk 83.70 on Monday in the inter-bank foreign exchange market from Tk 80.60 on July 02, 2017, the first working day of the FY 18. Import of capital machinery or industrial equipment used for productions increased by nearly 5.0 per cent to $4.40 billion in the 10 months to April of this fiscal year against $4.20 billion during the same period of FY 17. However, import of intermediate goods like coal, hard coke, clinker and scrap vessels increased by more than 8.0 per cent to $3.42 billion in the first 10 months of this fiscal from $3.16 billion in the same period of the FY 17. Import of industrial raw materials grew by nearly 11 per cent to $15.09 billion during the period under review from $13.60 billion in the same period of the previous fiscal. During the period, import of machinery for miscellaneous industries witnessed a 7.67 per cent growth to $4.14 billion from $3.85 billion in the same period of the FY 17. Opening of overall LCs rose by nearly 52 per cent to $60.73 billion including $11.38 billion for Rooppur Nuclear Power Plant (NPP) during the July-April period of this fiscal from $35.67 billion in the same period of the FY 17.

Source: https://thefinancialexpress.com.bd/economy/imports-up-15pc-in-ten-months-1528776931

Businesses must disclose bank account info to get VAT rebate

Traders will have to disclose the relevant bank account information to the tax authority as proof of transactions for getting tax credit or VAT rebate. The Bangladesh government included a provision in the Value-Added Tax Act-1991 in this connection through the Finance Bill-2018 of the national budget for the next fiscal year of 2018-2019. The decision was taken to prevent misuse of input tax credit system and illegal VAT rebate taken by businesses through providing false transaction information, officials of the National Board of Revenue said. The revenue board proposed bringing an amendment to the VAT Rules-1991 to simplify the export process. According to the VAT law, traders and suppliers are entitled to receive input tax credit or VAT rebate against the VAT paid on goods and services. They, however, cannot claim VAT rebate if the payment is made without banking or electronic medium for purchase of inputs worth Tk 1 lakh or above. Traders can now show transactions made through any bank account for the purpose. Under the proposed amendment to the VAT rules, exporters would be able to examine their exportable goods at port without prior approval of the local VAT office.
Exporters will just submit application with challan to the local VAT office and the office will preserve the copy of the application. Customs officials will examine the export goods and give permission for export.

Source: http://www.newagebd.net/article/43489/businesses-must-disclose-bank-account-info-to-get-vat-rebate

Local and Global Stock Indices *

Index NameClose ValueValue ChangePercentage Change
Nikkei 22522,874.01↑69.97↑0.31%

World Commodities *

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)$66.58↑0.48↓0.73%
Crude Oil (Brent)$76.48↑0.12↓0.16%
Gold Spot$1,293.76↓1.73↓0.13%

Major Currencies Exchange Rates Movement in Last Seven Days *

Exchange Rates
USD 1BDT 83.62
GBP 1BDT 111.95
EUR 1BDT 98.69
INR 1BDT 1.23





Dear Valued Patrons,

At the very onset, let me express my heartiest gratitude for allowing us to serve you and I also wanted to reach out to you directly with an assurance that Dhaka Bank is fully equipped to support you during this difficult time.

Last couple of weeks ago we all were living in a peaceful condition, performing our daily tasks freely and perfectly. Entire economy and business environment was also in a good shape, until COVID-19 put a forceful stoppage to the overall life style and economy of the world. We all know that social distancing and cleanliness are the keys to prevent this pandemic. Hence, we urge your conscious effort to limiting public interaction and suspending wherever possible.

In this current situation, Dhaka Bank and its employees are beside you where we are fully online, either working from home or at our offices under a robust Business Continuity Plan (BCP) to serve you with limited branch banking and a full-fledged alternate delivery channel services.

Our state of the art Mobile App, Dhaka Bank GO (Click https://bit.ly/2WVfieu) and Internet Banking - Dhaka Bank Direct gives you the freedom of banking online anytime from anywhere. You can check the balance and transfer money to any designated Banks including any Dhaka Bank or bKash Account, make utility bill payments and mobile top-up through our Mobile App and Internet Banking Services. Our ATMs are also running efficiently with availability of sufficient cash for your convenience where you can make cash withdrawals whenever the need arises. Mentionable, the withdrawal of cash from any ATMs within Bangladesh with Dhaka Bank Debit Cards are absolutely free of charges up till April 30, 2020 (Dhaka Bank will bear the cost). Our corporate customers can also use our completely safe and secured online platform Dhaka Bank C-Solution for Payments, Inter Bank Fund Transfers, etc.

Moreover, to fulfill your urgent requirement, we have a limited no. of branches up and running by ensuring all kinds of precautionary and safety measures for you.

In case of extreme emergency and facing difficulties in conducting banking transactions, please let us know through our 24/7 Contact Center number 16474 (or, dial +8809678016474 for ISD/Overseas Calls). We are always with you to combat your difficulties.

As you know we are going through a critical phase and the situation is novel to all of us. We are getting lot of new information from various sources everyday about COVID-19 which will be shared at www.dhakabankltd.com.

Thank you for your trust and continued support to us. I firmly believe that jointly we will be able to combat this situation and win against all the odds.

Please stay home, stay safe and take care of yourself and family.

Best regards,

Emranul Huq
Managing Director & CEO
Dhaka Bank Limited