Stocks end lower after Eid holidays
Stocks ended marginally lower on Monday, the first session after Eid-ul-Fitr holidays, as investors sold shares, sector-wise. The presence of the investors was thin on the trading floor as many investors are yet to resume businesses in Dhaka after enjoying Eid holidays in rural areas. This day, the market started on a positive note, with DSEX, benchmark index of Dhaka Stock Exchange (DSE) gaining about 8.0 points within first 15 minutes of trading. However, it was volatile in the rest of the session when DSEX fell nearly 24 points and Chittagong Stock Exchange (CSE)’s CSE All Share Price Index lost 56 points. The DSEX settled at 5,341, losing nearly 24 points, or 0.44 per cent, over the previous session. Of two other indexes of the premier bourse, DS30, comprising blue chips, also fell 16 points to finish at 1942 points, and DSE Shariah index advanced 1.15 points to close at 1,239 points. Overall trading activities increased slightly, with the turnover on the DSE floor reaching Tk 4.85 billion, 6.12 per cent higher than the previous session’s Tk 4.57 billion. The losers took a modest lead over the gainers as out of 334 issues traded, 175 closed lower, 125 closed higher and 34 remained unchanged on the main trading floor. The CSE also closed lower with its CSE All Share Price Index – CAPSI – losing 56 points to settle at 16,449 and Selective Categories Index – CSCX – shedding 35 points to finish at 9,946 points. Here too, the losers beat the gainers as 105 issues closed lower, 76 higher and 21 issues remained unchanged on the CSE. The port city bourse traded 2.92 million shares and mutual fund units worth more than Tk 117 million in turnover.
Time extension for quota in IPOs for crash-affected investors sought again
The Bangladesh Securities and Exchange Commission has requested the government to extend by one year more the deadline for quota facility in initial public offerings for the investors who were affected by the 2010-11 market crash. The commission recently sent a request letter to the finance division of the finance ministry for extending the deadline for the 20-per cent IPO quota facility till June 30, 2019. The government extended the deadline of the quota facility for six times since its introduction in 2012. The quota facility has increased affected investors’ chance of winning IPO shares and making some quick profits as the IPO shares are usually traded at higher prices at the secondary market. Finance minister on March 4, 2012 announced a special package for the capital market investors including the 20-per cent quota facility in IPOs for the year 2012-2013 for small-scale investors who suffered losses because of the 2010-11 stock plunges. Under the package, 50 per cent of interest on the past year’s margin loans was also waived. According to a BSEC report on the 2010-11 stock market crash, at least 9.30 lakh investors were affected by the debacle.
Export to US reaches $5.49 billion in July-May
Country’s merchandise export to the United States (US) increased by around 3.40 per cent during the first 11 months of the current fiscal year. Statistics available with Export Promotion Bureau (EPB) showed that the amount reached $5.49 billion in July-May period of FY18, which was $5.32 billion in FY17. The US is the top export destination of Bangladeshi products. The annual export to the US stood at $5.84 billion in the past fiscal year, according to the data furnished by the EPB. Bangladeshi products are, however, subject to higher tariffs in the US market. The average tariff rate in America stands at 15.2 per cent and it is the highest among 232 countries, territories and other jurisdictions.
Fiscal incentives to rise in next fiscal year
Fiscal incentives to agriculture, export and jute goods will increase in the next fiscal year, according to the proposed budget for FY19. It showed that the government allocates Tk 135.0 billion as fiscal incentives to these sectors in the next fiscal year. The amount is also estimated as 0.50 per cent of the country’s gross domestic product (GDP) and 2.90 per cent of the total public expenditure proposed for FY19. The revised amount of fiscal incentives for outgoing fiscal year is set at Tk 105.0 billion or 2.8 per cent of the revised budget. Agriculture sector will receive Tk 90.0 billion as fiscal incentives in the next fiscal year while the allocation for export sector is Tk 40 billion. Jute goods will get the rest of the amount worth Tk 5.0 billion.
‘Move underway to set up 300 green RMG factories’
Commerce Minister has said about 300 readymade garment factories of Bangladesh are expected to be recognised as green factories. The Minister came up with the statement while replying to a question from a lawmaker in the parliament on Monday, report. The minister also said, quoting the US Green Building Council (USGBC), seven out of 10 best garment factories are located in Bangladesh. “67 factories of Bangladesh have so far received Leadership in Energy and Environmental Design (LEED) certificate from USGBC”.
Rice prices go up after govt hikes import duty
The prices of rice went up in the city’s wholesale markets following the announcement of budget for the financial year of 2018-19 as the government reinstated 28 per cent import duty on the staple in the budget. Following the announcement of the budget on June 7, importers and millers increased the wholesale prices of rice by Tk 1-2 a kilogram and the wholesale price increase started affecting the retail markets in the city. Last year, the government reduced the import duty on rice to 2 per cent from 28 per cent to meet the shortfall of the crops as flash floods damaged production of boro rice in the haor areas. Considering the bumper rice production this year, finance minister on June 7 re-imposed 25 per cent customs duty and 3 per cent regulatory duty on rice import to protect the interest of the local farmers. Following the re-imposition of duty, the prices of both the imported and locally produced rice went up in the wholesale market and in some cases retail prices also increased. A kilogram of coarse variety of rice was selling at Tk 42-45 a kg on Monday. The fine variety of Najirshail rice was retailing at Tk 65-70 a kg and its standard variety at Tk 60-64 a kg in the city markets. BR-28 rice was retailing at Tk 50-52 a kg, while Miniket rice was selling at Tk 62-68 a kg. The coarse variety of Miniket rice was retailing at Tk 56-60 a kg.
Single licence for telcos’ 2G, 3G and 4G services likely
The Bangladesh Telecommunication Regulatory Commission has initiated a move to introduce a single-licence system for the mobile operators to offer 2G, 3G and 4G services with a view to reducing filing hassles. Currently, the mobile phone operators have to take separate licences for offering the services. The BTRC’s move to merge the licences into one came following pleas made by the operators. In line with the move, the telecom regulator at its latest commission meeting formed a committee led by its legal and licensing department director general to scrutinise the issue. The committee would report to the commission within two months whether the single-licence system would bring positive impact or not to the sector. As per a BTRC statistics, each of the five mobile phone operators are maintaining seven or eight licences for offering 2G, 3G and 4G services. Of the licences, one is for operating as a mobile phone entity, two for running 2G services, two for 3G services and two for 4G services. A reduction in the number of mobile phone companies’ licences would also reduce filing burden the commission and the mobile operators are facing. The single-licence system would also allow the commission to oversee the mobile phone companies more effectively. Once the system comes into force, the commission would decide the fees for the licence. The decision of the commission, however, would be effective after getting approval from the posts and telecommunications ministry.
Mobile number portability likely to be delayed
The launching of the much-awaited mobile number portability (MNP) service may take some more time due to a delay in technology adoption by ICX operators, according to the Banglaesh Telecommunication Regulatory Commission (BTRC). The minister for posts, telecommunications and information technology told that the MNP service would be launched in the first week of August this year. “The BTRC has been instructed to complete all the preparations by July 31. It’s expected that the customers will enjoy the MNP service in the first week of August”. The BTRC said it would be tough to launch the MNP service by July 31 without support from all associated organisations. But the regulatory body is trying its best to launch the service by the stipulated time. There are 26 ICX operators in Bangladesh at present. Infozillion BD Teletech Consortium Ltd received the licence to launch the MNP service.
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)||$65.37||↑0.31||↑0.48%|
|Crude Oil (Brent)||$74.78||↑1.34||↑1.82%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 84.11|
|GBP 1||BDT 111.56|
|EUR 1||BDT 97.85|
|INR 1||BDT 1.23|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.