BD seeks $6.4b Chinese fund for new projects

Bangladesh now wants Chinese funds for nine new projects worth US$ 6.4 billion. The Economic Relations Division has recently sent a letter to the Chinese government seeking investment fund for these projects, said finance ministry officials. The government sought $1.6 billion for the construction of the first phase of the Pyra sea port and $1.2 billion for the construction of the country’s longest bridge to link Barisal with the island district of Bhola, according to the letter, a copy of which has been obtained by the FE. The authorities also sought $853 million for the Teesta river comprehensive management and restoration project and $805.35 million for the project on the “Expansion of Strengthening of Power System Network under DPDC area (PGCB part).” Though China last year requested Bangladesh not to send any new proposal for Chinese funding until the completion of the ongoing projects, Bangladesh argued in the meeting that since some projects were withdrawn from the list, these new projects can replace those. Bangladesh had earlier withdrawn four projects worth $3.2 billion from Chinese funding as those projects were being implemented by other agencies. One of those projects is Dhaka-Sylhet four lane highway project, for which the Asian Development Bank is providing fund. The government has long been looking for development assistance for the construction of Bhola bridge spanning over the Tetulia and the Kalabadar rivers. The length of the Padma bridge is 6.15 kilometres. The full port construction project will have 19 separate components, 13 of which will be implemented under foreign direct investment, and six of which will be financed through government-to-government deals. The total cost of the port is estimated to be $11-15 billion. The China Harbour Engineering Company and China State Engineering and Construction Company (CSCEC) were awarded contracts worth $600 million to develop two of the 19 components.

Source: https://today.thefinancialexpress.com.bd/first-page/bd-seeks-64b-chinese-fund-for-new-projects-1593366946

EPB moots $37b export target

The Export Promotion Bureau (EPB) has proposed setting a $37.44-billion export target for fiscal year (FY) 2020-21, predicting 13-per cent growth. The EPB has also projected an additional $7.6 billion in earnings from the export of services. More than 82 per cent of the proposed export earnings are expected to come from the ready-made garment (RMG) sector. The bureau expects the export receipts to reach $33 billion by the end of the current fiscal year. The proposed export target is 13 per cent higher than the $33 billion expected to be earned this fiscal. The initial target for the outgoing fiscal was $45.50 billion. The single-month merchandise shipments in April and May this year witnessed 82.85 per cent and 61.57 per cent negative growth compared to last year’s April and May. In April and May, exports stood at only $520.01 million and $1.46 billion. The overall export earnings during the July-May period fell by 17.99 per cent to $30.95 billion against $37.75 billion in the corresponding period of last fiscal. The EPB, however, projected that export would reach $33 billion at the end of June. Bangladesh fetched $34.13 billion from RMG export in FY ’19 marking 11.49-per cent growth over that in FY ’18. The compound annual growth rate of apparel export in the past five years has been 6.86 per cent. We’re almost at the end of this fiscal. Until June 27, the total RMG export reached $27.50 billion, which was $34.13 billion during the same period last year. By the end of June, the year-end export figure might reach $27.60 to $27.65 billion, which would indicate more than 19-per cent fall in RMG export. The decline in export this fiscal in actual amount is $6.6 billion, which is around one fifth of last year’s. Out of $6.6-billion lost export, $1.0-billion export was lost in the first half of 2019 and the remaining $ 5.6 billion was lost in the last half. The RMG sector lost 4.8 billion worth of export just in three months from April to June 2020, showing the severity of COVID’s impact on the industry.

Source: https://today.thefinancialexpress.com.bd/first-page/epb-moots-37b-export-target-1593367203

DSE turnover crosses Tk 25b-mark on huge block trade of GSK shares

Daily trade turnover on Dhaka Stock Exchange (DSE) crossed Tk 25 billion-mark on Sunday after nine and a half years, thanks to block transaction worth Tk 22.25 billion of GlaxoSmithKline (GSK) Bangladesh shares. Turnover, a crucial indicator of the market, stood at Tk 25.43 billion on the country’s premier bourse which was Tk 683 million in the previous session. It happens to be the biggest single-day transaction in the past nine and a half years since December 6, 2010, when the turnover totaled a record Tk 27.10 billion. Sales of entire shares of SETFIRST Ltd, one of the corporate directors of the GSK Bangladesh, to Unilever Overseas Holdings B.V on block market at Tk 2,046.30 each, was the main reason behind the sudden jump in turnover on DSE. The GSK Bangladesh accounted for 87.9 per cent to the day’s total turnover as 10.87 million shares of the company worth Tk 22.25 billion changing hands in the block market. On June 25, SETFIRST Ltd, one of the corporate directors of the GSK Bangladesh, expressed its intention to sell its entire holding (more than 9.87 million shares) of the company at prevailing market price in block market. As per the disclosure, Unilever Overseas Holdings B.V. purchased the entire holding of SETFIRST Ltd, which is more than 9.87 million or 81.98 per cent shares of the total number of shares of GSK Bangladesh. The GSK Bangladesh’s shares traded between Tk 2,046.30 and Tk 2,148.60, before closing at Tk 2,084.10 on Sunday. GSK Bangladesh, which was listed on the Dhaka bourse in 1976, made a Tk 986 million net profit in 2019 thanks to closure of its unprofitable pharmaceuticals business in Bangladesh. United Power Generation & Distribution Company also contributed 8.70 per cent to the total day’s turnover as 10 million shares of the company worth Tk 2.20 billion were traded on the block mark on Sunday. “The turnover stood at Tk 25.43 billion, the highest since December 6, 2010 thanks to the huge block transactions of GSK Bangladesh and United Power which contributed 87.9 per cent and 8.7 per cent respectively to the total trade,” commented International Leasing Securities. Along with huge turnover, DSEX, the key index of the DSE, went up by 4.94 points or 0.12 per cent to settle at 3,974 during the three-hour trading session. DSEX, the key index of the Dhaka Stock Exchange, went up by 4.94 points or 0.12 per cent to settle at 3,974 during the three-hour trading session. The core index added 12 points in the past four consecutive sessions. Two other indices also saw modest gain. The DS30 index, comprising blue chips, advanced 1.41 points to finish at 1,331 and the DSE Shariah Index rose 2.24 points to close at 921. The Chittagong Stock Exchange also edged higher with its All Shares Price Index (CASPI)-advancing 22 points to close at 11,284 and the Selective Categories Index – CSCX -gaining 12 points to finish at 6,830. Of the issues traded, 29 gained, 9 declined and 99 remained unchanged on the CSE. The port city bourse traded 14.96 million shares and mutual fund units. The port city bourse’s turnover also jumped to Tk 2.51 billion, from Tk 936 million on Thursday last.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/dse-turnover-crosses-tk-25b-mark-on-huge-block-trade-of-gsk-shares-1593361366