Yearly ICT-related Exports to stand at $5.0bn by 2021
The government has set an export target of ICT-related products and services worth around US$ 5.0 billion annually by 2021. Some 2.0 million employments will be created and 90 per cent people of the country will have internet connectivity by the next two years. State minister for the Information and Communication Technology Division Zunaid Ahmed Palak said this at a seminar at Bangabandhu International Conference Center. The seminar titled ‘Harnessing blockchain is a time-stamped series of immutable record of data, which is managed by cluster of computers not owned by any single entity. Each of these blocks of data are secured and bound to each other using cryptographic principles. The block chain technology is being utilized increasingly across the globe to ensure transparent and non-changeable technology and decentralization. It will help ensure check and balance, according to Mr. Hamid.
Aug Private Sector Credit Growth falls
Private credit growth decelerated further in August as some Banks had to prepare for complying with the Central Bank’s revised advance-deposit ratio rules. Lower import growth also pushed down the private sector credit growth last month, according to Bankers. Expected the credit growth to pick up slightly in September as the Central Bank had backtracked from its previous decision on slashing the ADR to facilitate the Bankers to invest more needed to give the current fiscal’s growth a boost. The sector’s credit growth came down to 10.68 per cent in August 2019 on a year-on-year basis from 11.26 per cent a month earlier, according to the Bangladesh Bank’s latest statistics. This growth was 2.52 percentage points lower than the Central Bank’s target of 13.20 per cent for the first half [1H] of fiscal year 2020. The credit growth to the private sector may increase slightly in September on the back of the Central Bank’s latest decision [on ADR]. The Central Bank had earlier re-fixed the ADR at 83.50 per cent and 89 per cent for the Conventional Banks and the Islamic Banks respectively. These rates were scheduled to come into effect from September 30.
Stocks retreat into Red again
Stocks slipped into the red on Monday, snapping a two-day winning streak, as risk-averse investors went on a selling binge on large-cap shares. At the end of the trading session, DSEX, the prime index of the Dhaka Stock Exchange [DSE], settled 0.56 per cent or 28.10 points lower at 4,947. Investors remained worried about the volatility of the market and adopted a cautious stance, taking the index to the red territory, according to Market analysts. The investors booked quick profit on selective large-cap stocks like Gramemenphone, United Power, ICB, LafargeHolcim and Bank Asia, which contributed to the market plunge, according to a leading broker. The market turnover reached almost Tk 6.0 billion, led by Tk 1.24 billion worth of Bank Asia’s block trade. The engineering sector witnessed the highest loss of 1.82 per cent, followed by telecommunication [1.30 per cent], pharmaceuticals [0.55 per cent], food [0.49 per cent], power [0.31 per cent] and Banking [0.16 per cent]. The market-cap of the DSE fell to Tk 3,738 billion on Monday, from Tk 3,759 billion in the previous session.
Robi likely to be listed soon: BSEC Chief
Robi, a multinational telecom operator, is likely to be listed on the stock exchanges within the shortest possible time frame, according to BSEC Chairman Prof M Khairul Hossain. Pro Khairul made the remarks at the inaugural ceremony of the World Investors Week 2019 at the Bangladesh Securities and Exchange Commission [BSEC] office in the city. They held a discussion to end the row between the telecom regulator and Grameenphone and Robi. Robi has expressed its intension to go public under the book-building method. But we have suggested that the company should strengthen its financial statement. The capital market needs good companies under which the investors will feel such comfort and satisfaction like sitting in the shade of a healthy tree. The securities regulator has also responsibility for the IPOs. But the BSEC alone cannot identify irregularities due to role-based process of approving IPOs. The TREC [Trading Right Entitlement Certificate] holders have the scope to discourage investors in case of applying for the shares of the companies with weak fundamentals.
Thrust on proper, transparent VAT Collection System
Speakers at a workshop on Monday stressed the need for a proper and transparent VAT collection system which is important for the country’s development. The Dhaka Chamber of Commerce and Industry [DCCI] organized the day-long workshop on ‘Value Added Tax and Supplementary Duty Act-2012’ at the DCCI office in the capital. Around 200 participants from different business houses took part in the workshop. DCCI chief Osama Taseer said that the workshop has been organized to create awareness among the business entities about the act. Businessmen should not be harassed for VAT collection. The present VAT act is more business friendly as well as SME friendly. DCCI’s Tax Consultant Snehasish Barua called upon the business entities to maintain books and records properly with the view to availing tax exemptions.
Business Leaders seek special focus on SMEs
Business leaders have demanded special focus on Small and Medium Enterprises [SMEs] through formulating special act, action plan and establishing special division, Bank and apex body. This is important for inclusive and sustainable economic development of the country as SMEs could not play their due role under the existing setups. This to create real climate for SMEs by removing all drawbacks persisting in the sector, according to the leaders of Japan Bangladesh Chamber of Commerce and Industry [JBCCI] while sharing a study report at Japan External Trade Organization [JETRO] office in the capital on Sunday. The report is handed over to JETRO Country Representative Yuji Ando as Japan is considering to invest in SMEs in its special economic zones in Bangladesh. The JBCCI prepared the report with support of the International Cooperation Organization for SMEs in Asia [ICOSA] to place recommendations to the authorities for formulating proper policy framework and strategy in support of development of SMEs to big industrial growth. According to the statistics of the Planning Commission, SMEs account for 45 per cent manufacturing value addition, 80 per cent of industrial employments, 90 per cent of total industrial units, and about 25 per cent of the labor forces. SME’s contribution to export earnings ranges from 75 per cent to 80 per cent.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
| ↑ 96.58 || ↑0.36% |
|FTSE100||7,408.21 || ↓ 18.00 ||↓0.24% |
|Nikkei 225|| 21,916.74 || ↑160.90 ||↑0.74%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)|| $ 54.57 ||↑ 0.50||↑ 0.92%|
|Crude Oil (Brent)||$ 60.78 ||↓ 1.13 ||↓ 1.83%|
|Gold Spot||$ 1,468.01 ||↓ 4.48||↓ 0.30%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.9505|
|GBP 1||BDT 102.009|
|EUR 1||BDT 90.5510|
|INR 1||BDT 1.17554|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<