daily news flash, 23rd january, 2018 - eblsecurities.com · ... reduce the economic ... of...

Daily News Flash, 23rd January, 2018

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DSEX 47.81 Gold (Ounce) $1332.40 Dollar 82.88 (Buy) 82.88 (Sell) CSCX 102.59 Oil (Barrel) $63.31 Euro 101.28 (Buy) 101.30 (Sell)

CENTRAL BANKS SHOULD HELP BUILD APPROPRIATE FINANCIAL INSTITUTIONS ............................................. 2

PACKAGED IMPORTS TO BECOME DEARER ...................................................................................................... 3

GOVT PLANS TO SLASH TAX RATE TO BOOST EARNINGS: PLANNING MINISTER .............................................. 4

LOWER LOAN-DEPOSIT RATIO TO AFFECT ECONOMY: BANKERS ...................................................................... 5

DOLLAR GETS COSTLIER FOR IMPORT PAYMENTS ............................................................................................ 5

PUBLIC BANKS LAG BEHIND PRIVATE PEERS .................................................................................................... 6

90PC OF BANGLADESHI JOBS INFORMAL: ILO .................................................................................................. 6

SOFTWARE EXPO BEGINS FEB 22 ..................................................................................................................... 7

PRODUCERS CALL FOR WITHDRAWAL OF RAW JUTE EXPORT BAN .................................................................. 7

BANGLADESH IS WELL PREPARED FOR ATTRACTING FDI: MUHITH .................................................................. 8

BANKS UNDER PRESSURE FOR ASSET MISMATCH, LIQUIDITY STRESS .............................................................. 8

NPLS BOTHER BANKING SECTOR VERY MUCH ................................................................................................ 10

CENTRAL BANK SHOULD ENJOY MORE 'INSTRUMENT INDEPENDENCE' ......................................................... 10

MANY LISTED COS SEE RISE IN FOREIGN OWNERSHIP .................................................................................... 11

LOW-CAP COS DOMINATE DSE GAINER CHART .............................................................................................. 12

TURNOVER EXCEEDS TK 5.0 BILLION-MARK ................................................................................................... 13

EXPORTERS DEMAND LIFTING CURB ON RAW JUTE EXPORTS ........................................................................ 14

GOVT PLANS TO CUT TAX RATE: MUSTAFA KAMAL ....................................................................................... 15

GLOBAL APPAREL BRAND AGREES TO FIX B'DESH FACTORY FLAWS ............................................................... 16

STOCKS RISE FOR 3RD DAY AMID PAUSE IN MPS TENSION ............................................................................ 17

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CENTRAL BANKS SHOULD HELP BUILD APPROPRIATE FINANCIAL INSTITUTIONS Central banks, particularly in developing economies, have a special responsibility in helping to create appropriate financial institutions, said a former governor of the Reserve Bank of India (RBI). C Rangarajan said financial inclusion has become an issue of critical importance in recent years because of the failure of the system meant to reach out to small borrowers and vulnerable groups. The Reserve Bank of India and the Bangladesh Bank have played a key role in discharging this responsibility and this must continue, he said while presenting a lecture at the Bangladesh Institute of Bank Management (BIBM) in Dhaka on Sunday. The AKN Ahmed Memorial Lecture was on Changing Concerns of Monetary Policy. AKN Ahmed was Bangladesh Bank's second governor, responsible for laying its foundations at a time when the country was passing tough times. He skilfully managed to restore stability in the financial system, said Rangarajan, also the former chairman of the economic advisory council to the prime minister of India. He said monetary policy has emerged as an important tool of economic policy both in developed and developing economies. The monetary and financial system is far more complex today than it has been in the past. Financial intermediation has reached a high level of sophistication, which has itself become a source of concern in recent days, he said. The menu of available financial products has expanded enormously. Derivative products, which were unknown till a few decades ago, have become common. All these changes have an important role to play in relation to the transmission mechanism, said Rangarajan. Speaking about the central bank's ability to effectively implement an inflation mandate, he said monetary policy must come into effect irrespective of what triggered inflation. Obviously, supply-side management is needed in situations of supply stock and that should be the responsibility of the government. According to Rangarajan, exchange rate stability and financial stability of late have emerged as competing objectives. However, the framework must be such that large interventions to stabilise the exchange rate have to be an exception rather than the rule. He said monetary policy and fiscal policy running in different directions can impose a burden on the economy. There has to be a close dialogue and coordination between the central bank and the government, he said. At the same time, Rangarajan said there was some advantage in specifying the areas in which the central bank has a clear mandate. Central banks like the RBI and Bangladesh Bank perform multiple functions. They are not only monetary authorities but also regulators of the banking system. Among the various objectives such as price stability, growth, and financial stability, the dominant objective for central banks, particularly in developing economies, must be price stability, said Rangarajan. He said central banking was no longer the application of well-known tools to well-known problems. The issues that surface are complex. We need to continually enlarge our knowledge and understanding of how the economy functions and how the different participants of the economy react to policy changes, he said.


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Successful central banks are those which respond to problems with speed, tact and intelligence, he added. Fazle Kabir, governor of Bangladesh Bank, said, Maintaining financial stability is also our priority as we believe in a nexus between financial development and economic growth. In this respect, Bangladesh Bank has given considerable focus on macro-prudential policy, he said. He said financial inclusion has received policy priority from the BB in order to build a strong foundation of financial infrastructure, reduce the economic vulnerability of households, alleviate poverty and improve the quality of peoples' lives and hence promote economic growth. Kabir also said it was to be recognised that the BB cannot contain inflation and achieve expected growth unless complemented by the government, regulators of other wings of the financial system, banks and financial institutions. Source: http://www.thedailystar.net/business/central-banks-should-help-build-appropriate-financial-institutions-1523842

PACKAGED IMPORTS TO BECOME DEARER Consumers are likely to face higher prices of imported packaged goods such as cosmetics, perfumes, shampoos owing to a recent order by the National Board of Revenue, said importers. The NBR asked customs offices to calculate the duty of the imported items by adding the duty for the containers if the cost of the packing materials such as perfume bottles, glass jars or containers is not included in the import prices. For ease of valuation, the revenue collectors said duty could be calculated by determining the prices of the packaging materials based on weight per kilogram. Importers said the sudden move by the customs authority will increase the duty of consumer goods imported in packaged form and thus lead to a spiral in prices of the commodities in the domestic market. Exporters sell the products by factoring in the cost of packaging. So, there is no need to assess duty on the weight of the packet separately, said Altaf Hossain Chowdhury, general secretary of the Chittagong Customs Clearing and Forwarding Agents Association. This will lead to a rise in prices of the products, he said. The NBR said it took the step in line with the global best practice of calculating the duty of the packaging materials, the cost of which is not included in the import prices of the goods. The measure was also meant to protect domestic manufacturers from uneven competition and duty evasion as some traders import the goods by mentioning only the net weight of the product, according to Lutfor Rahman, member, customs policy of NBR. Local manufacturers are facing uneven competition and the government is also losing proper revenue due to the practice, he said. The measure will create complexities and lead to delays in taking delivery of goods by importers from the congestion-ridden port, importers and C&F agents said. For instance, sauces, jams, perfumes or coffee come in glass bottles and the weight of the containers is much more than the content. So, if the duty of a kilogram of coffee is calculated by assessing the weight of the jar, the total tax incidence will go up, said importers. Duty will increase two to three-fold in most of the goods following the NBR directive, said Kazi Mahmud Emam, joint secretary of C&F Agent Association. C&F agents said the NBR, which issued the rule on October 9 last year, has been flexible until January 12. The customs officials at Chittagong port started enforcing the rule from January 12, prompting some importers to refrain from taking delivery of their packet goods. Until yesterday, more than 150 consignments remained stranded at the port.

http://www.thedailystar.net/business/central-banks-should-help-build-appropriate-financial-institutions-1523842http://www.thedailystar.net/business/central-banks-should-help-build-appropriate-financial-institutions-1523842


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Some took delivery of the goods packed in low weight containers, according to some importers and customs officials. In the face of the stalemate, the Customs office at Chittagong port sought a directive from the NBR. A senior official of a leading multinational fast-moving consumer goods company said the prices of the products sent by the parent companies are in general inclusive of all costs. In other words, the cost of the containers or bottles is factored in the quoted price. The authority's attempt to curb importers who quote low invoice value to evade duty has in turn affected our imports. Subsequently, he urged the NBR to come up with a separate rule for those firms that import directly from their parent companies. The revenue authority should also consult compliant companies without taking any decision all on a sudden, he added. Source: http://www.thedailystar.net/business/packaged-imports-become-dearer-1523839

GOVT PLANS TO SLASH TAX RATE TO BOOST EARNINGS: PLANNING MINISTER Planning Minister AHM Mustafa Kamal yesterday said the government is planning to cut the overall tax rate, particularly the corporate tax rate, with the view to boosting revenues. The minister made the remarks when the board of directors of the Dhaka Chamber of Commerce & Industry led by its President Abul Kasem Khan called on him at his office, according to a statement from the chamber. In another statement from the planning ministry, Kamal said Bangladesh would reach a stage in terms of cutting taxes that would be deemed impossible. His remark was in response to the DCCI's demand of cutting corporate tax rates. Recently, 1.5 trillion cubic feet of gas has been found in Bhola, which has taken the country's total gas reserve to 14.5 TCF. Bangladesh is a great place for investment and the facilities the country offers to businesses cannot be found elsewhere. Subsequently, Kamal urged the chamber to invite foreign investors to the country and help create a conducive environment for businesses. We will have to create such a business environment that no businessman feels the need to go to another country to do business, he said, adding that the cost of doing business will come down substantially by OctoberNovember. Bangladesh is placed at the bottom in the World Bank's Doing Business 2018 report, said the DCCI chief. Private investment needs to be scaled up to 29 percent from the current rate of 23.10 percent. Bangladesh needs to raise its infrastructure investment ratio to 5 percent of the gross domestic product, and the chamber estimates that the country will require $320 billion by 2030 to develop reliable, sustainable and affordable infrastructure. The country currently spends only 2.87 percent of its GDP for infrastructure development in contrast to 10 percent in Vietnam, Khan said. Subsequently, Khan proposed forming a high-powered authority styled National Infrastructure Development and Monitoring Advisory Authority to accelerate the implementation of mega infrastructure projects. All fast-track projects need to be implemented within the projected time to eradicate traffic jam in Dhaka City and save Tk 20,000 crore that is lost to congestion every year, the chamber said. Source: http://www.thedailystar.net/business/govt-plans-slash-tax-rate-boost-earnings-planning-minister-1523830

http://www.thedailystar.net/business/packaged-imports-become-dearer-1523839http://www.thedailystar.net/business/govt-plans-slash-tax-rate-boost-earnings-planning-minister-1523830http://www.thedailystar.net/business/govt-plans-slash-tax-rate-boost-earnings-planning-minister-1523830


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LOWER LOAN-DEPOSIT RATIO TO AFFECT ECONOMY: BANKERS The central bank's planned move to slash the loan-deposit ratio ceiling to 80.5 percent from existing 85 percent will hurt the banking industry and the economy at a time when it is on a high growth trajectory, bankers said. Additional deposits of Tk 20,000 crore to Tk 25,000 crore would be needed if the Bangladesh Bank revises the ratio downwards, said the Association of Bankers, Bangladesh in a letter on January 14. Subsequently, the ABB has sought 12 months from the BB to prepare for the lower ceiling. At present, commercial banks are not allowed to invest more than 85 percent of their deposits; Islamic banks and the Islamic wings of commercial banks can invest up to 90 percent of their deposits. The central bank may cut the ratio to 80.50 percent for conventional banks and 88 percent for Islamic banks, BB Deputy Governor SK Sur Chowdhury told reporters earlier in January after a meeting at the central bank headquarters in the capital. More than 19 percent credit growth is unexpected for the private sector, so the central bank has decided to lower the ceiling to prevent banks from going for aggressive lending. We are concerned that banks in order to be compliant with the new (anticipated) guidelines will solicit new deposits albeit at significantly higher cost than their existing rates, the ABB said. Given that no new money will be injected in the system, the deposits will move from low interest rates to higher rates, from one bank to another. This will then force banks to increase the interest rate on lending and deposits, putting an upward pressure on inflation, the ABB said. All customers including exporters, SME and corporate may be in serious financial crisis if the central bank revise the ratio now. It will be difficult for banks to manage the situation, especially during an election year, the ABB said. Source: http://www.thedailystar.net/business/lower-loan-deposit-ratio-affect-economy-bankers-1523836

DOLLAR GETS COSTLIER FOR IMPORT PAYMENTS The Bangladesh Foreign Exchange Dealers' Association has raised the ceiling on the Bills for Collection (BC) selling rate, the rate at which banks make import payments, to Tk 83.35 per dollar from Tk 83.20. A technical committee of the BAFEDA revised the BC selling rate on Sunday as the US dollar continues to appreciate against the taka at the inter-bank level although the central bank injected more than $1 billion into the market to keep it stable this fiscal year. The banks yesterday started to implement the decision, meaning importers will have to pay Tk 0.15 more per dollar. Earlier in November last year, the central bank asked banks not to sell the US dollar at rates higher than Tk 83.20, according to a member of the Bangladesh Bank's technical committee. But the BAFEDA has been forced to reset the rate because of a rising trend of inter-bank exchange rate in recent months, he said. The central bank also verbally approved the BAFEDA's decision, he said. Yesterday, the interbank exchange rate stood at Tk 82.90 per dollar, up from Tk 82.80 a week earlier and Tk 78.95 a year earlier, according to data from the central bank. Source: http://www.thedailystar.net/business/dollar-gets-costlier-import-payments-1523833

http://www.thedailystar.net/business/lower-loan-deposit-ratio-affect-economy-bankers-1523836http://www.thedailystar.net/business/lower-loan-deposit-ratio-affect-economy-bankers-1523836http://www.thedailystar.net/business/dollar-gets-costlier-import-payments-1523833


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PUBLIC BANKS LAG BEHIND PRIVATE PEERS The overall performance of the banking sector is good but the condition of the state-run banks is bad, Finance Minister AMA Muhith said yesterday. Their level of efficiency is very low and they do not bother about their non-performing loans. Muhith spoke at a meeting at his secretariat office in the capital with a 15-member team of Norfund, an investment fund of the Norwegian government for the developing countries. The team led by Kristin Clemet discussed the present state of Bangladesh's economy and investment opportunities in the country. Norwegian Ambassador to Bangladesh Sidsel Bleken was also present at the meeting. After independence, default loans in the banking sector amounted to 40 percent of the outstanding loans, and it now hovers around 11 percent, Muhith said. However, scenarios in the public and private sector are different. Public banks have a higher amount of default loans than the private ones, he added. About the private banks, the minister said there is an allegation that the directors of these banks take loans from other banks in collaboration with each other. Yes, the allegations are quite true. Muhith said the government does not force the central bank into regulating the banks. Bangladesh Bank has been taking steps regarding these matters, he said. Many people are concerned about the growing number of banks in the country, he said. I am not very much concerned about it. He said consolidation would go on automatically in the banking sector and banks failing to survive would get merged. Muhith also apprised the Norfund team about the country's law and order situation, investment climate and overall economy. Source: http://www.thedailystar.net/business/public-banks-lag-behind-private-peers-1523827

90PC OF BANGLADESHI JOBS INFORMAL: ILO Nearly 90 percent of jobs in Bangladesh are in informal sectors, according to a report of the International Labour Organisation. The report titled World Employment and Social Outlook: Trends 2018 found that Cambodia, India, Indonesia, Myanmar and Nepal are in the same bracket as of Bangladesh's when it comes to informal jobs. The high incidence of informality continues to challenge prospects of further reduction in working poverty, especially in Southern and South-Eastern Asia, said the ILO's flagship report. Such high incidence of informality only partly reflects high shares of employment in agriculture a sector where informality is usually higher than in the rest of the economy, it said. In fact, informality in these countries remains pervasive also in the non-agriculture sectors, such as construction, wholesale and retail trade, and accommodation and restaurants. In addition, the report also noted that informality continues to affect more than half of workers in China, and more than one in every four workers in the Republic of Korea, with no significant difference between the agriculture sector and the rest of the economy. The report forecasts that Bangladesh's unemployment rate will be at 4.4 percent or 29 lakh in 2018. The number of the unemployed people will rise by one lakh next year, said the report. The ILO report said despite a sustained job growth, work deficits and informality challenge prospects of further reduction in working poverty in Asia and the Pacific. Global unemployment in 2018 was projected to remain at a level similar to the rate in 2017. The global unemployment rate has been stabilising after a rise in 2016. It reached an estimated 5.6 percent last year, with the total number of unemployed exceeding 19.2 crore.

http://www.thedailystar.net/business/public-banks-lag-behind-private-peers-1523827


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Source: http://www.thedailystar.net/business/90pc-bangladeshi-jobs-informal-ilo-1523824

SOFTWARE EXPO BEGINS FEB 22 A four-day BASIS SoftExpo 2018 starting February 22 promises to be the country's largest exposition of software and ICT enabled services (ITES) and will bring together ICT companies, experts, policymakers and industry leaders. Local enterprises have pinned hope on the event's 12th edition, seeking to generate a substantial amount of business showcasing innovative products before prospective buyers, including those from abroad. The venue is Bangabandhu International Conference Centre, said the organiser, the Bangladesh Association of Software and Information Services (BASIS), at a press conference at their office yesterday. Over 200 local and international IT companies are expected to participate in the show, they said, adding that response has already been huge since registration for participants began two weeks back. The organiser said they were trying to get Bangladesh's missions to send out invites to countries, especially those in Central Asia. SoftExpo is the platform to showcase the capability of local software companies in the international arena, said Syed Almas Kabir, president of BASIS. BASIS members and other local IT bodies will get a platform to expand their business, he said. There will be five zones focusing on software, mobile innovation, digital commerce, ITES and business process outsourcing and cloud computing. There will also be matchmaking sessions for businesses, a unique opportunity for software and ITES companies, said Mostafizur Rahman Sohel, the event's convener. Last year there were 30 such sessions and attempts are ongoing to organise even more along with some seminars. BASIS has a students' forum, members of which will be presenting their innovative projects giving a clear understanding of Bangladesh's ever-growing ICT sector, Sohel added. Source: http://www.thedailystar.net/business/export/software-expo-begins-feb-22-1523752

PRODUCERS CALL FOR WITHDRAWAL OF RAW JUTE EXPORT BAN The Bangladesh Jute Association yesterday strongly protested the ban on raw jute exports, saying the move would restrict overseas sales of the natural fibre and discourage growers. In a statement, the association said the government imposed the ban on January 18 without any consultation with them. The government did not sit with us before imposing such a ban. It should be withdrawn soon for the sake of the jute industry, said the statement. It said a huge amount of Bangla Tossa Rejection (BTR) and Bangla White Rejection (BWR) categories of jutewhich are exported as raw jutewould remain unsold because of the ban. Bangladesh mostly produces high-quality jute and a small portion is of low quality, it said. Every year, we grade and export raw jute. After the grading, another segment of low quality raw jute remains uncut, which finds no buyers in Bangladesh. We have to export the uncut BTR and BWR categories of jute, to avoid chances of the jute remaining unsold and facing price cuts in the local market, said the association. The ban would ultimately discourage jute growers from growing the natural fibre in the years to come, it said. Moreover, the association said, the relationship between buyers and local exporters will also face a blow, as the ban would restrict jute exports, which are supposed to be made under the letters of credit and shipment deals signed earlier.

http://www.thedailystar.net/business/90pc-bangladeshi-jobs-informal-ilo-1523824http://www.thedailystar.net/business/export/software-expo-begins-feb-22-1523752


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Source: http://www.thedailystar.net/business/export/producers-call-withdrawal-raw-jute-export-ban-1523734

BANGLADESH IS WELL PREPARED FOR ATTRACTING FDI: MUHITH Finance Minister AMA Muhith has said Bangladesh is well prepared for attracting Foreign Direct Investment (FDI), with the country offering various incentives to foreign investors besides ensuring a favourable environment for doing business in Bangladesh. "We are well prepared for attracting FDI", the finance minister told a 15-member Norfund delegation of Norway while it met him at his secretariat office in the capital on Monday. He said the investors, both foreign and local, on many occasions expressed their satisfaction over the investment environment in Bangladesh and the incentives they have been enjoying for years in this country. Referring to Bangladesh Investment Development Authority (BIDA), the minister said the new authority would make the rules and regulations for making investment easier. He said the business environment improved a lot in the past few years following a stable political situation. Describing the achievements in the economic front, Muhith said the country made remarkable progress in all socio-economic indicators because of the government's inclusive and pro-poor policies. Muhith said the GDP growth reached 7.28 percent this year, with maintaining a steady rise in the past few years and taking per-capita income to $1610 last financial year. Urging Norwegian investors to invest in the country, the minister said there are huge demands for investment in the country's leather and pharmaceutical sectors as export of leather products and medicines are on the rise in the global markets, including USA. The finance minister informed the Norwegian team that the government is establishing technical schools in every upazila across the country to cater the needs of skilled manpower. Source: http://www.daily-sun.com/post/283927/Bangladesh-is-well-prepared-for-attracting-FDI:-Muhith

BANKS UNDER PRESSURE FOR ASSET MISMATCH, LIQUIDITY STRESS Banking sector bears some pressures from declining asset quality, particularly of the state-owned banks, and tighter liquidity in some fourth-generation private banks, said the central bank. The Bangladesh Bank (BB) also indentified downside risks like any shock to remittance inflow and export due to growing political uncertainty in the Middle East. "Risks to inflation could emerge from the second-round effects of elevated food prices and the pass-through of higher global fuel and commodity prices," it said in the latest Bangladesh Bank Quarterly (BBQ) assessment for July-September 2017, released Monday. It also said: "High credit growth amid tightening liquidity in the banking system, strong import growth with a smaller overall BoP (balance of payments) balance, and the rising trend in food inflation warrant a cautious macroeconomic management for preserving monetary and financial stability in FY 18." The central bank, however, predicted that political and macroeconomic conditions are likely to be broadly stable in the fiscal year (FY) 2017-18. "Strong growth in capital machinery import reflects buoyant investment demand. In the light of the strong economic activities, output growth is expected to be attained at closer to the target," the BBQ explained. The assessment found the pace of economic activities robust in the first quarter (Q1) of FY 18, aided by rapid private credit growth, a rebound in remittance inflows, and a pickup in export growth.

http://www.thedailystar.net/business/export/producers-call-withdrawal-raw-jute-export-ban-1523734http://www.thedailystar.net/business/export/producers-call-withdrawal-raw-jute-export-ban-1523734http://www.daily-sun.com/post/283927/Bangladesh-is-well-prepared-for-attracting-FDI:-Muhithhttp://www.daily-sun.com/post/283927/Bangladesh-is-well-prepared-for-attracting-FDI:-Muhith


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Focusing on the supply side, it said growth momentum was strong in the industry and the services sectors, while agriculture witnessed a softer growth due to the recent floods. Inflation, as measured by consumer price index (CPI) on a year-on-year basis, has been on the rise since January 2017, driven mainly by food-price rises. Consequently, inflation (12-month moving average) crept up, hitting 5.6 percent in the Q1 of the ongoing FY18, slightly exceeding the target of 5.5 per cent. "Flood-related crop losses, a declining buffer stock of rice, excess demand due to the influx of refugees from Myanmar, and an uptick in food prices on the global market led to elevated food prices on the domestic market," the central bank said explaining the causes of food inflation. However, non-food inflation eased during the Q1of FY18. Growth in private-sector credit was on an upturn, having reached 17.9 per cent in September 2017, exceeding BB's FY 18 target. The large share of the credits went in to industry, construction and transport sectors. Reserve money and broad money (M2) grew by 13.4 and 10.4 percent, respectively, largely in line with the programmed path for December 2017. However, private credit growth overshot somewhat due to a sharp pickup in lending by the private commercial banks, according to the BBQ. The central bank also said the gap between credit and deposit growth in a low-interest environment helped absorb the existing excess liquidity in the banking system. "Liquidity conditions in the banking system remain adequate against the backdrop of stable capital-to-risk weighted asset ratio (CRAR), although non-performing loan (NPL) has slightly increased during the quarter under review," it noted. The BBQ also says strong import growth (28.4 per cent in the Q1of FY18)-fueled by capital machinery and intermediate goods imports-against 7.7per cent export growth widened trade deficit. "Wider trade deficit, coupled with improving but modest remittance growth, led to a deficit in overall BoP in the Q1 of FY18," the BB explained. Fiscal performance improved in the period under review, reflecting an upturn in revenue collection, modest growth in expenditure along with an increased Annual Development Programme (ADP) spending. "Fiscal deficit inched up during the quarter under review due to a faster growth in expenditure over revenue collection. The amount of deficit financing was more than met with borrowing from the non-bank and foreign sources," the BBQ said. Regarding the foreign-exchange market, the BBQ said nominal exchange rate depreciated in line with the market forces. "In order to avoid any disruptive fluctuations in the foreign- exchange market, the BB supported to smooth large fluctuations," it noted. The BBQ also said despite the fact that nominal exchange rate depreciated slightly, real effective exchange rate appreciated a bit due mainly to decline in relative price of trading partners. "Foreign-exchange reserves edged down slightly in the Q1 of FY 18 but remains adequate around seven months of imports," the BB noted. The momentum in trading activities on the capital market continued during the Q1 of FY18, it said, adding that this momentum benefitted from strong economic growth, higher private-sector credit growth and negative real interest rates on deposits in the banking system. The Dhaka Stock Exchange broad index (DSEX) reached the highest level in September 2017 (6092.8) since January 2013. Source: http://today.thefinancialexpress.com.bd/first-page/banks-under-pressure-for-asset-mismatch-liquidity-stress-1516642508

http://today.thefinancialexpress.com.bd/first-page/banks-under-pressure-for-asset-mismatch-liquidity-stress-1516642508http://today.thefinancialexpress.com.bd/first-page/banks-under-pressure-for-asset-mismatch-liquidity-stress-1516642508


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NPLS BOTHER BANKING SECTOR VERY MUCH Finance Minister AMA Muhith said Monday the country's banking sector is bothered very much about the non-performing loans (NPLs) and argued that it has been a big problem since the independence when it reached 40 per cent of total outstanding loans. "But now it has come down to almost one digit and, hovering between one and two digits," he told a meeting with a visiting Norwegian investment delegation at his secretariat office. Kristin Clemet, chairperson of Norfund, the Norwegian government's investment fund for developing countries, led the 15-member delegation. Norwegian Ambassador to Dhaka Sidsel Bleken was also present at the meeting. The minister said the banking sector has grown very fast and some people would say that the number of banks is very high. "Yes, we have 48 banks but I am not very much worried about it," he said, adding that the banks would consolidate if any adverse situation arises. He also acknowledged problems in the private sector banks. For the problems in banking sector, Mr Muhith blamed lack of proper enforcement of rules and regulations. "I must say we have not enforced regulations strictly. Now the central bank started taking strict measures." Briefing the Norwegian delegation about adverse remarks on Bangladesh's state of doing business, he blamed law and order situation and poor salaries of the public servants while claiming that the situation has by now improved significantly. For improving the condition of doing business, he said, Bangladesh Investment Development Authority (BIDA) has been formed to facilitate trade and investment by simplifying the rules and providing necessary support. "Now Bangladesh is very well prepared for attracting foreign direct investment," he added. While portraying the development history of Bangladesh, the minister said that almost 16 years had been spoiled when no development took place in the country. "So, we have a development history of 30 years." He said the welfare society began in the country when the Bangladesh Awami League (AL) came to power in 1996, but the successive 'partisan government' rejected all the steps taken by the AL government. The minister said that during the last 10 years with the AL in the office, the per capita income increased significantly while the growth rate ranging between 6.6 per cent and 6.7 per cent, followed by around 7.0 per cent during the last two years. During the initial period of Bangladesh, he said, the rate of inflation was extremely high at around 45 per cent. "Now we are very cautious about it and this government kept the inflation rate below 5.0 per cent." Source: http://today.thefinancialexpress.com.bd/first-page/npls-bother-banking-sector-very-much-1516642573

CENTRAL BANK SHOULD ENJOY MORE 'INSTRUMENT INDEPENDENCE' Central banks in countries like Bangladesh should enjoy more 'instrument independence' in determining monetary policy, vital for moving an economy. Simultaneously, said a noted banker of India, there has to be close dialogue and coordination between the central bank and the government to ensure close link between monetary and fiscal policies. "It is in the best interest of the government itself to cede certain areas to the central bank (CB)," said Dr. Chakravarthi Rangarajan, the former Governor of the Reserve Bank of India (RBI) at a public lecture Sunday in Dhaka on central banking.

http://today.thefinancialexpress.com.bd/first-page/npls-bother-banking-sector-very-much-1516642573http://today.thefinancialexpress.com.bd/first-page/npls-bother-banking-sector-very-much-1516642573


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Bangladesh Institute of Bank Management (BIBM) organized the event in memory of the late A K N Ahmed, the second Governor of Bangladesh Bank. "Monetary policy is part of overall economic policy. Monetary policy and fiscal policy running in different directions can impose a burden on the economy," Dr Rangarajan told his audience from Bangladesh's banking sector. "Therefore, there has to be a close dialogue and coordination between the central bank and the government." Mr. Rangarajan, who was also Chairman of the Prime Minister's Economic Advisory Council of India in his long illustrated career, also noted that there are some advantages in specifying the areas in which the central bank has a clear mandate. "Central banks like Reserve Bank of India and Bangladesh Bank perform multiple functions. They are not only monetary authorities but also regulators of banks," he noted. "This, in some ways, complicates the autonomy question," he said about the ways of central banking in countries like these. "As a regulator, they have only the freedom other regulators enjoy. Thus, in determining the mandate to Central Bank, the government has complete authority. "However, once the mandate is given, the Central Bank must be given the freedom to take such actions as it deems fit-which is sometimes called 'instrument independence," the former RBI Governor explained. Rangarajan also observed that among the various objectives such as price stability, growth and inflation stability, the dominant objective for central banks particularly in developing economies must be price stability. "In this regard, having an inflation target helps," he said. "It gives, in a sense, greater precision to the concept of price stability. This framework would require that the monetary authorities should keep inflation within the target level." In a flashback on the 2008 global financial crisis, Rangarajan termed it a reflection of both monetary policy and regulatory failures. "While regulatory failure bore the primary responsibility, monetary policy played a facilitating role," he said. "We need to draw appropriate lessons from the crisis. The regulatory framework needs to incorporate both micro-and macro-prudential indicators," suggests Rangarajan, also a former member of Rajya Sabha. Speaking on the occasion, Bangladesh Bank Governor Fazle Kabir said the central bank of Bangladesh has given considerable focus on macro-prudential policy to ensure financial stability in the country. "A set of dedicated macro-prudential policies like loan-to-value limits, reserve requirement, advance-to-deposit ratio, cap on capital-market exposure and countercyclical capital buffer applied by Bangladesh Bank have been proven to be very effective in addressing systemic risks of country's financial sector," he told the meet. "In addition, Bangladesh Bank has also developed a 'Central Database for Large Credit to prepare a 'Corporate Watch List while a 'Systematic Risk Dashboard is being published on a half-yearly basis," the Governor said. He also said the formation of 'Financial Stability Council' is under process while the Bangladesh Bank has also established Financial Stability Department to deal with macro-prudential aspects of the financial system. Source: http://today.thefinancialexpress.com.bd/last-page/central-bank-should-enjoy-more-instrument-independence-1516643090

MANY LISTED COS SEE RISE IN FOREIGN OWNERSHIP Many listed companies posted rise in foreign ownership at the end of 2017.

http://today.thefinancialexpress.com.bd/last-page/central-bank-should-enjoy-more-instrument-independence-1516643090http://today.thefinancialexpress.com.bd/last-page/central-bank-should-enjoy-more-instrument-independence-1516643090


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Following increased participation by foreign shareholders, foreign stakes in some companies rose up to 41.28 per cent by December 28, 2017 from that of 2016. The companies which witnessed rise in foreign stakes are IDLC Finance, British American Tobacco Bangladesh Company (BATBC), City Bank, One Bank, Delta Brac Housing Finance Corporation, Beximco Pharmaceuticals, ACME Laboratories and Singer Bangladesh. According to information of Dhaka Stock Exchange (DSE), the portion of foreign investors at IDLC Finance was 4.25 per cent as of December, 2016. The foreigners' stake in IDLC Finance rose to 11.52 per cent as of December 28, 2017. On the other hand, general shareholders' stake in IDLC Finance was 14.21 per cent as of December 31, 2017 and the quantity rose to 15.83 per cent by December 28, 2017. The foreign stakes in One Bank was 0.16 per cent as of December 31, 2016 and it rose to 6.77 per cent by December 28, 2017. During this period, the stakes owned by general shareholders ranged between 48.95 per cent and 48.11 per cent. Foreign shareholders held 3.08 per cent shares in Singer Bangladesh as of December 31, 2016 and the quantity rose to 11.80 per cent by December 28, 2017. During this period, general shareholders' stake declined to 18.52 per cent from 19.09 per cent. The stakes of foreign investors in British American Tobacco Bangladesh Company (BATBC) rose marginally in 2017. The foreign stakeholders held 14.41 per cent shares in BATBC as of December 31, 2016 and the quantity rose to 15.34 per cent as of December 28, 2017. General shareholders hold very insignificant number of shares at BATBC. General shareholders owned 0.81 per cent share as of December 31, 2016 and the quantity declined to 0.71 per cent by December 28, 2017. Foreign shareholders own a significant quantity of shares at BRAC Bank compared to general investors. The number of stakes held by foreign shareholder was 42.15 per cent as of December 31, 2016 and the amount declined to 40.68 per cent by December 28, 2017. The stakes of general shareholders rose to 6.56 per cent as of December 28, 2017 from 6.20 per cent calculated as of December 31, 2016. Foreign stakes in City Bank was 6.10 per cent as of December, 2016 and the quantity rose to 15.02 per cent by December 28, 2017. On the other hand, the stakes held by general shareholders declined to 36.30 per cent on December 28, 2017 from 45.17 per cent calculated as of December 31, 2016. The foreign stakes at Delta Brac Housing Finance Corporation was 33.95 per cent as of December 31, 2016. The amount rose to 41.28 per cent by December 28, 2017. The stakes of general shareholders at Delta Brac Housing Finance Corporation declined to 3.64 per cent by December 28, 2017 from 5.89 per cent calculated as of December 31, 2016. The foreign shareholders hold a significant amount of shares at Beximco Pharmaceuticals compared to sponsor-director, institutes and general public. The amount of foreign stakes at Beximco Pharmaceuticals almost remained static in 2017. Foreign shareholders held at 41.45 per cent stakes at Beximco Pharmaceuticals as of December 31, 2016 and the amount stood at 41.95 per cent by December 28, 2017. The amount of shares held by general shareholders declined to 17.74 per cent on December 28, 2017 from 21.36 per cent calculated as of December 31, 2016. Source: http://today.thefinancialexpress.com.bd/stock-corporate/many-listed-cos-see-rise-in-foreign-ownership-1516644610

LOW-CAP COS DOMINATE DSE GAINER CHART Listed companies with low capitalisation dominated the gainer's chart of the Dhaka Stock Exchange (DSE) Monday though they had no price sensitive information (PSI) or any expansion plan. The premier bourse served show-case notice on some of the low-cap companies recently. The companies, however, informed the premier bourse that they have no price sensitive information.

http://today.thefinancialexpress.com.bd/stock-corporate/many-listed-cos-see-rise-in-foreign-ownership-1516644610http://today.thefinancialexpress.com.bd/stock-corporate/many-listed-cos-see-rise-in-foreign-ownership-1516644610


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"Even after serving of show-cause notice, the prices of the companies continued to rise, which will hit the investors hard," said an analyst, seeking anonymity. He noted that investors should be careful about the unusual price hike of the low-cap companies and Z-category companies. "We are looking into the matter," said a DSE executive. Investors should be careful about the unusual price hike of the low-cap companies, he added. Of the companies, Usmani Glass Sheet Factory topped the day's gainer chart, jumping 9.90 per cent to close at Tk 99.90 each on the day. The state-run company disclosed second quarter (Q2) earnings on the day. As per Q2 un-audited financial results, the earnings per share (EPS) of the company for October-December, 2017 stood at Tk 0.15 as against minus Tk 1.64 for the same period of the previous year. Takaful Insurance came to the next. The insurance company's share price soared 7.60 per cent to end at Tk 26.90 each. BD Autocars emerged as third highest gainer, posting a gain of 5.69 per cent. The engineering sector "B" company's share price closed at Tk 124.40. The recently listed BBS Cables was the fourth highest gainer. The company's share price rose 5.31 per cent to settle at Tk 110.90 each. Nahee Aluminum posted a 4.83 per cent positive return. The aluminum composite panel manufacturer's share price finished at Tk 62.90 each. Daffodil Company's saw a 1 3.70 per cent price surge and emerged the sixth top gainer. The company's share price closed at Tk 44.80 each. Saiham Textile was the day's seventh highest gainer with 3.52 per cent return. The textile company's share price settled at Tk 20.60. United Insurance featured in the eighth highest gainer, soaring 3.47 per cent to close at Tk 29.80 each. The newly listed Oimex Electrode was the ninth highest gainer, posting a gain of 3.42 per cent. The company's share price closed at Tk 57.40. ICB AMCL Third NRB Mutual Fund was also included in the top gainer chart, gaining 3.12 per cent to close at Tk 6.60 each. Source: http://today.thefinancialexpress.com.bd/stock-corporate/low-cap-cos-dominate-dse-gainer-chart-1516644638

TURNOVER EXCEEDS TK 5.0 BILLION-MARK Stocks extended the winning streak for the third running session Monday as investors were enthusiastic following the Finance Minister's positive remarks on stock market. Market operators said the investors were gradually regaining their confidence during the last couple of days following the Finance Minister's positive remarks on capital market. Finance Minister AMA Muhith on Saturday said the share market is not a place for speculations and those who think so are its enemies. "The present government has been able to strengthen the base of the country's share market. Now it's time for its further development," he said while addressing the 'Investors and Entrepreneurs Conference and Investment Education Fair, 2018 in Sylhet. "The market ended higher amid increased participation of investors as enthusiastic investors were active on sector specific heavyweight issues like Square Pharmaceuticals and Grameenphone," said an analyst at a leading brokerage firm. The largest market GP's share price surged 1.37 per cent to close at Tk 494.40 while share price of second largest market cap company Square Pharma soared 3.05 per cent to settle at Tk 333.80. The market opened on positive note and the upward trend sustained till end of the session with no sign of reversal.

http://today.thefinancialexpress.com.bd/stock-corporate/low-cap-cos-dominate-dse-gainer-chart-1516644638http://today.thefinancialexpress.com.bd/stock-corporate/low-cap-cos-dominate-dse-gainer-chart-1516644638


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It finally ended nearly 48 points higher. DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), reached at 6,195, advancing 47.81 points or 0.78 per cent over the previous day. "The market observed a vibrant session supported by large-cap movement with increased turnover," commented AT Capital Partners, an asset management company, in an analysis. The two other indices also ended higher. The DS30 index, comprising blue chips, soared 25.14 points or 1.11 per cent to finish at 2,285. The DSE Shariah Index (DSES) also gained 18.46 points or 1.30 per cent to settle at 1,428. The market activities also crossed Tk 5.0 billion-mark after 12-session and the total turnover rose to Tk 5.02 billion, which was 46 per cent higher than the previous day's turnover of Tk 3.44 billion. According to International Leasing Securities, some investors were taking fresh positions in pharmaceutical, telecom, financial institution and engineering sector stocks helped the market ended higher. Among the major sectors, pharmaceuticals posted the highest gain of 2.1 per cent riding on Square Pharma, followed by telecommunication with 1.40 per cent, non-bank financial institutions 1.0 per cent, engineering 0.5 per cent, banking 0.30 per cent and food & allied 0.30 per cent while fuel & power remained flat. The gainers took a modest lead over the losers as out of 333 issues traded, 150 nudged higher, 126 drifted lower and 57 issues remained unchanged on the DSE. Square Pharmaceuticals topped the day's turnover chart for the third day in a row with 1.86 million shares worth Tk 618 million changing hands, followed by IFAD Autos, Grameenphone, Golden Harvest Agro Industries and BBS Cables. Usmania Glass was the day's best performer, posting a gain of 9.90 per cent while Deshbandhu Polymer was the day's worst loser, plunging by 5.02 per cent. Chittagong Stock Exchange (CSE) also ended higher with CSE All Share Price Index - CAPSI - advancing 164 points to finish at 19118. The Selective Categories Index - CSCX - also soared 102 points to settle at 11,543. Gainers beat losers as 117 issues closed higher, 81 ended lower and 40 issues remained unchanged on the CSE. The second bourse of the country traded 5.66 million shares and mutual fund units worth more than Tk 220 million in turnover. Source: http://today.thefinancialexpress.com.bd/stock-corporate/turnover-exceeds-tk-50-billion-mark-1516644673

EXPORTERS DEMAND LIFTING CURB ON RAW JUTE EXPORTS Local raw jute exporters demanded the government withdraw the restrictions on exports of the commodity in the name of uncut low-grade varieties. In a letter to the Prime Minister's Office on Monday, the Bangladesh Jute Association (BJA) warned that if these two categories of raw jute are not exported, income from the sector will tumble. Low-quality raw jute will be stockpiled after this embargo, imposed by the authority on Thursday last, they said. They also sent Sunday separate letters to the relevant ministries including Jute, Commerce and Finance in this connection. According to Section 13 of Jute Law 2017, the ministry of textiles and jute banned exports of Bangla Tossa Rejection (BTR) and Bangla White Rejection (BWR), which will continue to be effective until further notice. A circular, issued by the ministry on January 18, also said the decision would be enforced immediately.

http://today.thefinancialexpress.com.bd/stock-corporate/turnover-exceeds-tk-50-billion-mark-1516644673http://today.thefinancialexpress.com.bd/stock-corporate/turnover-exceeds-tk-50-billion-mark-1516644673


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Without consultation with exporters, the jute ministry imposed the ban on their exports, said Syed Ali, chairman of the BJA. "We oppose such decision as it will affect our business seriously," he said. He added that they will lose buyers and unused raw jute will build up. A significant volume of the total production of raw jute is low-grade. Local jute millers do not purchase such raw jute. For this reason, they export these items, he said. When asked, Abdul Quayyum, secretary of the BJA, said after cutting rejected parts of BTR and BWR, value addition will increase. But buyers want such uncut items. Besides, there is no such a big market globally to import by-products of raw jute. "We fear losing our market," he added. Farmers will also lose interest in producing raw jute. Rejected raw jute (cutting) made by local millers is not exported entirely as the market is limited. Even more, there is hardly any mill to use such cutting locally. If BTR and BWR are processed, the volume of rejection will increase to 50 per cent from existing 20 per cent. It will create a major problem in managing such a big volume of cutting. On an average, some 1.0-1.5 million bales of raw jute are exported each year from Bangladesh. India, Pakistan and China are the major importers of Bangladeshi raw jute. About 7.0 to 8.0 million bales of raw jute are produced yearly locally. Source: http://today.thefinancialexpress.com.bd/trade-market/exporters-demand-lifting-curb-on-raw-jute-exports-1516645590

GOVT PLANS TO CUT TAX RATE: MUSTAFA KAMAL Planning Minister AHM Mustafa Kamal on Monday said that the government is planning to cut tax rate in future with a view to increasing revenue, reports UNB. He said there was no reason why tax rate can't be reduced if government can earn more revenues than now. The minister came up with these remarks while he met with the Board of Directors of Dhaka Chamber of Commerce and Industry (DCCI), led by its President Abul Kasem Khan, at the Planning Ministry on Monday. Expressing his optimism about attaining Sustainable Development Goals (SDG), the minister said that to attain SDGs government and private sector need to work together and about $1.31 trillion is needed for achieving the goals. Bangladesh is placed at the bottom, ranking 177 in the World Bank's "Doing Business 2018" report, said DCCI President Abul Kasem Khan adding that Bangladesh needs to raise infrastructure to GDP ratio to 5.0 per cent and "we estimate that Bangladesh will require $320 billion by the year 2030 for developing reliable, sustainable and affordable infrastructure." He also said that the private investment needs to be scaled up to 29 per cent from current 23.1 per cent. In order to accelerate the implementation of large infrastructure projects, he proposed to form a high-performing authority "National Infrastructure Development and Monitoring Advisory Authority" (NIDMAA). He also suggested strengthening the BAPEX to explore new offshore and onshore gas fields. DCCI Senior Vice President Kamrul Islam, FCA, Vice President Riyadh Hossain, directors Andaleeb Hasan, Kh. Rashedul Ahsan, K M N Manjurul Islam, Engr. Md Al Amin, Mohammad Bashiruddin, S M Zillur Rahman and Secretary General AHM Rezaul Kabir were also present. Source: http://today.thefinancialexpress.com.bd/trade-market/govt-plans-to-cut-tax-rate-mustafa-kamal-1516645681

http://today.thefinancialexpress.com.bd/trade-market/exporters-demand-lifting-curb-on-raw-jute-exports-1516645590http://today.thefinancialexpress.com.bd/trade-market/exporters-demand-lifting-curb-on-raw-jute-exports-1516645590http://today.thefinancialexpress.com.bd/trade-market/govt-plans-to-cut-tax-rate-mustafa-kamal-1516645681http://today.thefinancialexpress.com.bd/trade-market/govt-plans-to-cut-tax-rate-mustafa-kamal-1516645681


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GLOBAL APPAREL BRAND AGREES TO FIX B'DESH FACTORY FLAWS IndustriALL Global Union and UNI Global Union have reached a $2.3 million settlement with a multinational apparel brand to fix life-threatening workplace hazards in Bangladesh's garment factories. The settlement reached through an arbitration process under the legally-binding Bangladesh Accord on Fire and Building Safety represents one of the largest payments made by a brand to remedy workplace dangers in its supply chain, according to a statement issued by IndustriAll Monday. The brand, which cannot be named under the terms of the settlement, has agreed to pay $2.0 million towards remediation of more than 150 garment factories in Bangladesh, it added. The apparel maker will contribute a further US$300,000 into IndustriALL and UNI's joint Supply Chain Worker Support Fund, established to support the work of the global unions to improve pay and conditions for workers in global supply chains. The global unions brought the case to the Permanent Court of Arbitration arguing that the brand did not require its factories to remedy hazards in a timely manner, leaving thousands of workers in dangerous conditions. The unions also charged that the brand did not ensure that it was financially feasible for its factories to fix ongoing safety issues, as required by the Accord. At the time of the case's filing in October 2016, none of the brand's known supplier factories had completed the required remediation, and all of them had at least one high risk safety hazard, which had not been fixed. These included factories lacking fire alarm and sprinkler systems, lacking fire doors, and not separating flammable materials from the factories' boilers. The unions' claim for arbitration spurred several of the brand's contracted factories towards better progress-one went from a remediation rate of roughly 50 per cent in October 2016 to more than 90 per cent in October 2017. However, many other factories supplying the brand continue to lag far behind, with remediation rates hovering near 50 per cent and serious structural and fire safety issues left unresolved. All necessary safety improvements need to be completed by the Accord's expiration in May 2018. "This settlement shows that the Bangladesh Accord works. It is proof that legally-binding mechanisms can hold multinational companies to account," IndustriALL's general secretary, Valter Sanches, said. "We are glad that the brand in question is now taking seriously its responsibility for the safety of its supplier factories in Bangladesh. Their financial commitment serves as an example for other brands to follow," he added. Christy Hoffman, UNI Global Union's Deputy General Secretary, stated that "Under the Accord, brands must shoulder some of the financial responsibility for fixing the Bangladeshi factories that manufacture their products, and this agreement shows that we are actively enforcing these Accord commitments." "The settlement makes real resources available to over 150 factories so they can finally make the necessary repairs that were needed years ago. We will continue pushing to make sure that all brands contribute their fair share to make work safer in Bangladesh," she added. The Accord that was formed in 2013 after the Rana Plaza building collapse and so far it has carried out inspections on more than 1,800 factories supplying over 200 brands, identifying over 118,500 fire, electrical, and structural hazards. Some 83 per cent of workplace dangers identified in the Accord's original round of inspections have been remediated, and 500 Accord factories have completed 90 percent or more of the necessary fixes. A second Accord was signed in June last year, which would go into effect when the original agreement expires in May 2018 and extends the Accord's protections until 31 May 2021. Source: http://today.thefinancialexpress.com.bd/trade-market/global-apparel-brand-agrees-to-fix-bdesh-factory-flaws-1516645637

http://today.thefinancialexpress.com.bd/trade-market/global-apparel-brand-agrees-to-fix-bdesh-factory-flaws-1516645637http://today.thefinancialexpress.com.bd/trade-market/global-apparel-brand-agrees-to-fix-bdesh-factory-flaws-1516645637


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STOCKS RISE FOR 3RD DAY AMID PAUSE IN MPS TENSION Dhaka stocks advanced sharply on Monday, extending its gaining streak to the third consecutive session, as investors tension over the upcoming monetary policy statement (MPS) of Bangladesh Bank eased for the time being, said market operators. Finance minister AMA Muhiths positive comments made on Saturday about the stock market and request made by the association of chief executive of banks to Bangladesh Bank for not reducing advanced deposit ratio have eased the jittery of investors for the last two sessions, they said. DSEX, the key index of Dhaka Stock Exchange, added 0.77 per cent, or 47.81 points, to close at 6,195.00 points. The core index gained 96 points in the last three trading sessions. In line with the previous session, the market began with positive note that continued to surge as investors kept bargain hunting share purchasing, market operators said. They said that the investors assumed that Bangladesh Bank may consider the appeal of Association of Bankers Bangladesh not to cut banks advanced deposit ratio. The ABB raised concerns that cutting the ADR ratio might create liquidity crisis in the financial market that will hamper development activities of the government in the election year, they said. Some of the investors also assumed that the government may also ask the BB to backtrack from its move considering the fund crisis in the financial market ahead of election, the operators said. Finance minister AMA Muhith on Saturday said that the capital market will expand amid increasing initial public offerings that also drew attention of some investors to the market, stockbrokers said. The core index witnessed a major fall by 180 points in the last two weeks that regained strength following the minister positive comments, they said. On Monday, non-bank financial institutions and bank increased 1.0 per cent and 0.4 per cent respectively. Besides, pharmaceuticals, telecommunication and cement advanced 2.0 per cent, 1.3 per cent and 1.32 per cent respectively. The market staged buoyancy on the day as share prices of some of the large capitalised scrips including Square Pharmaceuticals, LankaBangla Finance and Grameenphone surged. On the other hand, average share prices of ceramics and energy declined by 0.9 per cent and 0.1 per cent respectively. The capital bourse of the country observed a winning session today amid positive expectation from the investors, said EBL Securities in its daily market commentary on Monday. The turnover at the bourse also increased to Tk 502.42 crore on the day from that of Tk 344.35 crore in the previous session. Of the 333 companies and mutual funds traded, 150 advanced, 126 declined and 57 remained unchanged. DS30, the blue-chip index of the DSE, also advanced 1.11 per cent, or 25.14 points, to finish at 2,285.72 points. Shariah index DSES gained 1.30 per cent, 18.46 points, to close at 1,428.46 points. Square Pharmaceuticals led the turnover chart on the day with its shares worth Tk 61.83 crore changing hands. IFAD Autos, Grameenphone, Golden Harvest Agro Industries, BBS Cables, Paramount Textiles, LankaBangla Finance, National Tubes, Beximco Pharmaceuticals and City Bank were the other turnover leaders. Usmania Glass Sheet Factory increased most with a 9.90-per cent rise in its share prices, while Deshbandhu Polymer was the worst loser, shedding 5.02 per cent. Source: http://www.newagebd.net/article/33201/stocks-rise-for-3rd-day-amid-pause-in-mps-tension

http://www.newagebd.net/article/33201/stocks-rise-for-3rd-day-amid-pause-in-mps-tension


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