28pc banks not ready to thwart large-scale cyber attacks
Some 28 per cent of the banks operating in the country are not prepared to thwart possible large-scale cyber-attacks. On the other hand, 34 per cent of the banks are partially prepared and remaining 38 per cent are fully prepared to handle such possible digital security threats, a research paper revealed. The research was conducted by the Bangladesh Institute of Bank Management (BIBM). Delays in adopting a sound cyber security hygiene could result in a US$ 3.0 trillion loss in economic value by 2020. Reputational impact can reach to $180 million. Around 93 per cent of cyber-attacks aim to financial gain across the globe. The research identified human error as the key reason (69 per cent) behind security breach and data losses in the country’s banking sector. Besides, banks’ internal and external sabotage is liable for 13 per cent and 3.0 per cent security breaches in the systems respectively. Although huge investment and ICT development have been observed, cyber security has not been properly addressed by the banking sector of Bangladesh making banking information and infrastructures vulnerable to sophisticated cyber-attacks.
CSE turnover hits eight-year high riding on block trade
Stocks finished marginally higher on Sunday as some investors were active on sector-wise stocks in the last trading session of July-September quarter. The turnover on the Chittagong Stock Exchange (CSE) on Sunday stood at Tk 3.27 billion, hitting eight years high since October 28 in 2010, riding on block transaction. It was also the second highest turnover in its history after highest turnover of Tk 3.40 billion recorded on October 28 in 2010. A total of 21 companies accounted for Tk 3.13 billion in block trade to the total turnover on CSE, where stocks like Square Pharma, Grameenphone, United Power, Khulna Power and Brac Bank dominated the block trading board. Square Pharma accounted for Tk 648 million, Grameenphone Tk 486 million, United Power Tk 361 million, Khulna Power Tk 294 million and Brac Bank Tk 250 million block trades on the port city’s bourse. DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 26.06 points or 0.48 per cent to settle at 5,368. Among the major sectors, power posted the highest gain of 2.13 per cent, followed by telecommunication with 0.64 per cent, banking 0.61 per cent, pharmaceuticals 0.17 per cent and engineering 0.11 per cent. The non-bank financial institutions and food & allied sectors lost 0.57 per cent and 0.34 per cent respectively. The market capitalisation of the DSE stood at Tk 3,876 billion on the day which was Tk 3,859 billion in the previous session. The port city’s bourse traded 43.75 million shares and mutual fund units worth Tk 3.27 billion in turnover.
Carbon tax may yield Tk 4,300cr a year: PRI
Carbon tax would facilitate reduction in emission of environment-polluting greenhouse gas and allow the state to earn revenue, said the Policy Research Institute (PRI) of Bangladesh yesterday. The research organisation said levying 10 percent carbon tax on the current prices of octane, petrol and diesel would enable the government to earn Tk 4,300 crore in revenue in the first year alone. The receipts will rise to Tk 4,800 crore in the first year if the tax is slapped on fuel oil and kerosene. At the same time, 11 lakh tonnes of carbon dioxide (CO2) emission will be reduced. And the amount of tax receipts will increase to Tk 15,283 crore by 2031 and Tk 24,424 crore by 2041. Some 67.92 million tonnes of CO2 emission could be reduced by then through the tax. The PRI has come up with the recommendation at a time when CO2 emission is growing 9 percent yearly owing to rapid urbanisation and industrialisation, which increases the use of electricity and transport. From a global perspective, Bangladesh’s contribution to greenhouse gas is 0.2 percent. However, the country’s increasing growth rate will push up the demand for power and transport, and this will lead to a spiral in CO2 emission to upwards of 10 percent. Power, industry and transport together contribute 76 percent of the CO2 emission in Bangladesh. Power generation is the lead polluter at 44 percent, followed by industries at 18 percent and transport at 14 percent, according to the PRI. In Bangladesh, the share of renewables has fallen to 1.6 percent in 2017 from 9.8 percent in 1990. The government has set a target to generate 10 percent of electricity from renewable sources by 2020, but at the same time it subsidizes fossil fuel.
FSIB sponsors book fair
First Security Islami Bank Limited (FSIB) sponsored the ‘4th Non Fiction Book Fair 2018’ which was inaugurated at the University of Dhaka on Sunday, according to a statement. The fair was jointly organised by Banik Barta and Faculty of Business Studies, University of Dhaka. Prof. Dr. Akhtaruzzaman, Vice-Chancellor, Dhaka University inaugurated the fair. Among others, Md. Mustafa Khair, Deputy Managing Director, First Security Islami Bank Ltd, Dewan Hanif Mahmud, Editor, Banik Barta, Professor Shibli Rubayat-Ul- Islam, Dean, Faculty of Business Studies, University of Dhaka and other invited guests were present on the occasion. The three-day fair is open from 10 am to 8 pm every day.
Telcos spend Tk 104cr on digital marketing
The top three mobile operators spent Tk 104 crore last fiscal year for reaching their target audience through digital platforms, with Facebook being the most popular medium. This is the first time that the Bangladesh Telecommunication Regulatory Commission has collected data on the telecom service providers’ spending on their digital campaigns. Seeing that the number will only grow larger from here onwards, the telecom regulator will push for a guideline on advertising on social media platforms like Google, Facebook, Instagram, Viber, Imo, WhatsApp, Twitter, YouTube and so on. Of the mobile operators’ expenditure on digital marketing in fiscal 2017-18, Grameenphone spent the most (Tk 43.31 crore), followed by Robi (Tk 32.14 crore) and Banglalink (Tk 28.65 crore), according to BTRC. Other than mobile operators, three internet service providers — ADN Telecom, Chittagong Online Limited (COL) and Systems Solutions & Development Technologies (SSD-TECH) — spent Tk 1.77 lakh on digital marketing in fiscal 2017-18. The digital platforms do not have any physical presence in Bangladesh, meaning they get away with not paying any tax to the government, unlike the traditional media such as newspapers, TV and radio. Most of our members are spending $5 to $10 a day. As they do not have credit cards, they need to go for unauthenticated channels. Currently e-CAB has around 1,000 members, while the number of e-commerce vendors is about 2,000. Meanwhile, mobile operators said they are facing different challenges in paying the digital platforms. For instance, a leading operator sought permission from the central bank to transact directly with Facebook and Google, avoiding third parties.
Olympic industries to import cap machinery
The board of directors of Olympic Industries has decided to import capital machinery worth Tk 136.87 million for enhancing the production capacity. The company will import a wafer manufacturing line, complete with ancillary machinery, from Franz Haas Waffelmaschinen Gmbh, Austria, at an estimated cost of Tk 125.45 million, according to a disclosure posted on the DSE website on Sunday. The line will be installed at the company’s Lolati factory premises and will have an estimated annual capacity of 1,800 metric tonnes after installation. The company will also import a toffee manufacturing line, complete with ancillary and packing machinery, from India, at an estimated cost of Tk 11.42 million to be funded from the company’s own sources and bank financing. Each share of the company, which was listed on the DSE in 1989, closed at Tk 205, advancing 0.24 per cent over the previous session. The company’s share traded between Tk 185 and Tk 296 each last year. The net operating cash flow per share (NOCFPS) was Tk 2.62 for July 2017-March 2018 as against Tk 4.19 for July 2016-March 2017. The net asset value (NAV) per share was Tk 29.28 as on March 31, 2018 and Tk 25.26 as on March 31, 2017. The company’s paid-up capital is Tk 1.99 billion and authorised capital is Tk 2.0 billion, while the total number of securities is 199.93 million.
Unique Hotel joins consortium to invest in 600MW power plant
A consortium, led by Unique Hotel & Resorts, will set up a 600 megawatt power plant to be based on gas or regasified liquefied natural gas (RLNG) at Meghnaghat of Narayanganj. The board of directors of Unique Hotel has decided to pay Tk 2.72 billion as equity in advance to Unique Meghnaghat Power Plant, according to a disclosure posted on the Dhaka Stock Exchange (DSE) website on Sunday. The Unique Hotel will pay the amount for advance payment of 10 per cent of contract value for engineering, procurement and construction (EPC) works to GE Global Parts & Products GmbH as per the commitment agreement for implementation of the power plant, said the disclosure. Each share of the Unique Hotel, which was listed on the Dhaka Stock Exchange (DSE) in 2012, closed at Tk 53.70 on Sunday, losing 1.10 per cent over the previous session. The company disbursed 20 per cent cash dividend for the year ended on June 30, 2017. The company’s earnings per share (EPS) stood at Tk 1.73 in nine months for July 2017-March 2018 as against Tk 1.49 for July 2016-March 2017. The net operating cash flow per share (NOCFPS) was Tk 3.12 for July 2017-March 2018 as against Tk 2.58 for July 2016-March 2017. The net asset value (NAV) per share was Tk 88.40 as on March 31, 2018 and Tk 88.82 as on June 30, 2017. The company’s paid-up capital is Tk 2.94 billion and authorised capital is Tk 10 billion, while the total number of securities is 294.40 million. The sponsor-directors own 45.67 per cent stake in the company, institutional investors 28.21 per cent, foreign 1.57 per cent and the general public 24.55 per cent as on August 31, 2018.
Dhaka, Moscow for direct bank dealings
The government has made a move to address the barriers like the absence of an effective banking transaction system to tap the billion-dollar Russian market. To this end, officials said, Dhaka has started negotiations with Moscow. The development came following a charter of demands from local businessmen, they added. Domestic products like ready-made garment (RMG) items are in great demand in the Eurasian country. As part of the initiative, a team of top officials from line ministries and the central bank visited Moscow last week. They sat with the Russian central bank officials to discuss a whole swathe of business issues. Bangladesh posted a 12.77 per cent growth in RMG exports worth $427.93 million in fiscal year 2017-18. Yet, high tariff, complex customs, limited work orders and unsteady ruble discourage exporters to tap a $4.96-billion RMG market, according to industry insiders. Russian buyers resort to deferred letters of credit (L/Cs) that take from 90 to 120 days that, many say, is also an obstacle to export growth. Terming Russia a $50-billion market, Rubana Huq, managing director of Mohammadi Group, said its payment terms, among others, are difficult to deal with. Moreover, import duty on apparel in Russia is very high which goes up to 20 per cent. Import duty aside, 18 per cent Value Added Tax (VAT) also is charged.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX|| 5,368.95714 || ↓49.32|| ↓0.59%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 73.57||↑0.32||↑0.44%|
|Crude Oil (Brent)||$ 83.20||↑0.47||↑0.57%|
|Gold Spot||$ 1,189.10||↓1.78||↓0.15%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.9685|
|GBP 1||BDT 109.4026|
|EUR 1||BDT 97.3531|
|INR 1||BDT 1.1561|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.