NEWS EXCLUSIVE

DSE to open window for laggard shares

noreply@blogger.com (Unknown) — Mon, 16 Feb 2009 12:47:00 +0000

Dhaka Stock Exchange (DSE) is expected to open a separate window for share trading of non-performing companies under Z category or low quality ones in a bid to discourage investors to bet on these issues, according to a DSE decision taken yesterday.

The DSE said trading of the shares of non-performing companies under Z category will take place at 'Over The Counter' (OTC) market, meaning that price movement of these shares will not be seen on the electronic board.

“The non-performing companies will be segregated from the main board. It's a message to the investors that 'don't go for these shares',” said DSE Director Md Rakibur Rahman.

The board formed a 10-member committee, headed by Rahman, to examine legal aspects and devise modalities for separating the non-performing companies under Z category.

The committee is expected to submit its recommendations within three weeks.

Companies that do not offer dividend and hold annual general meeting regularly and are out of operations fall under Z category.

The DSE moved to open an alternative trading platform based on a decision taken at a meeting with the market regulator last week to keep investors away from investing in Z category shares.

Out of more than 90 companies now listed under Z category, traces of many are not found, while some have gone out of operations. But trading of the shares of these companies is taking place as many retail investors are unaware of the present status of these companies.

According to the last week meeting decision, shares of the companies which are out of operations and whose net asset values are negative will be traded at OTC market.

The DSE initiative to open an OTC market comes as share prices of a number non-performing companies under Z category witnessed surge recently.

Officials said some 28 companies have been identified as non-performing ones but the list of the companies will be finalised after further investigation.

“We want to assure investors that no one will be able to cheat them,” Rahman said, adding that if the price movements of these issues are not seen on the electronic board, it will be difficult to manipulate prices.

Under the OTC system, DSE will open a separate counter where interested buyers and sellers of the shares of non-performing companies will announce prices and amounts of shares.

Transaction will take place if the announced prices of buyers and sellers match.

“It will have a positive impact on the market as investors' risk will minimise,” said Rahman.

Yawer Sayeed, chief executive of AIMS of Bangladesh, an asset management company, hailed the move and said it would bring transparency in the market.

“Investors will not be cheated,” he added.

Banks go tech-smart to cut costs of business

noreply@blogger.com (Unknown) — Sun, 15 Feb 2009 11:21:00 +0000

Banks in Bangladesh are increasingly adopting technology-driven products to fast-track services to their clients at reduced costs.

The products and services include debit card, credit card, ATM (automated teller machine), POS (point of sales), online banking and Swift.

“It would have cost us a lot if we had provided the same services in a traditional way as we did by ATM last year,” said Abul Kashem Mohammad Shirin, deputy managing director of Dutch-Bangla Bank Limited (DBBL) that has over 350 ATM booths across the country.

DBBL transacted Tk 300 crore on average a month by ATM in 2008.

Technology-driven products are cost-saving, said Reazul Islam, senior vice-president and head of IT of AB Bank. A transaction by a human teller costs no less than Tk 50, but it is much lower for an ATM, he said.

Of the use of technology-driven bank products, Mohammad Shirin said demand for ATM services is rising rapidly followed by online and internet banking.

A few private commercial banks (PCBs) and foreign banks also offer limited customer services over the internet.

Only two banks adopted online services and one foreign bank adopted ATM services in 1998, but the number reached 29 and 26 respectively at the end of 2006, the central bank said in a research.

On the other hand, the number of banks offering credit card, popularly known as plastic money, increased from two to 15 in the same period.

Compared with other innovative services, adoption of POS was relatively slow. The number of banks that adopted the services increased from one to 10 banks.

In the same period, banks made intense efforts in introducing Swift services. In 1998, only four banks offered the services, with the number rising to 43 by the end of 2006. Swift is a Society for Worldwide Inter Bank Financial Telecommunication.

Debit card that allows customers instant cash transactions round the clock was introduced in 1999. The number of banks that issue debit cards rose to 22 by 2006.

"Banks have adopted technology-driven services to ensure transparency and save time, not to make profit," said Syed Masodul Bari, head of IT of Al-Arafah Islami Bank.

This is still a subsidised service for many banks.

“The products can benefit from it in the long term,” said Reazul Islam.

Although modern and innovative technology-driven products and services are convenient for the customers, the services still cover a small part of total transactions, the BB research observed.

“Banking in rural areas is mostly dominated by traditional products which are often time-consuming,” the BB research found.

In the backdrop, the central has taken initiatives to encourage the banks to adopt efficient methods such as automated cheque processing system, introducing cheques having MICR features, developing existing payment settlement system, and automation of the banking system so that commercial banks can extend coverage in offering modern services.

The services will help the customers in urban and rural areas, the BB said.

A total of 48 banks operate in Bangladesh. Of which, 30 are private, nine foreign and nine state-owned. All the banks have around 7,000 branches across the country.>

EBL orientation programme held

noreply@blogger.com (Unknown) — Sat, 07 Feb 2009 05:40:00 +0000

Eastern Bank Limited (EBL) organised a foundation course and orientation programme for new-comers of the bank in the city recently, said a please.

The programme was designed to make newly appointed employees of the bank learn basic banking.

EBL Deputy Managing Director Mokhlesur Rahman and Head of Human Resources Sirajul lslam were present at the orientation programme.

They were also given an overview of the existing condition of the bank.

IFIC Bank holds seminar on money laundering

noreply@blogger.com (Unknown) — Sat, 07 Feb 2009 05:37:00 +0000

International Finance Investment and Commerce (IFIC) Bank Ltd conducted a seminar on 'Prevention of money laundering' at its academy in the city recently, says a press release.

A total number of 73 branch managers of the bank attended the seminar.

Bangladesh Bank General Manager M Mahfuzur Rahman and its Anti-Money Laundering Department Assistant Director Md Abdur Rob were the main speakers at the seminar.

Salient features of the 'Money Laundering Prevention Ordinance-2008' and 'Anti Terrorism Ordinance - 2008' and the course of actions to be taken by the bank in the light of the ordinances were discussed at the seminar.

IFIC Bank Managing Director Mosharraf Hossain was present at the seminar and delivered his inaugural speech before the participants.

This was the 3rd programme of IFIC Bank Academy in 2009.

The seminar was jointly organised by IFIC Bank Academy and the Central Compliance Unit of Prevention of Money Laundering of the bank.

Islami Bank total deposit reaches Tk 202.89b

noreply@blogger.com (Unknown) — Sat, 07 Feb 2009 05:19:00 +0000

The total deposit of Islami Bank Bangladesh Limited (IBBL) reached Tk 202.89 billion (20,289 crore) in January of the current year, showing a growth rate of 22 per cent against the corresponding period of the last year.

The total investment has reached Tk 205.55 billion, showing a growth rate of 15 per cent against the corresponding period of the last year.

This was disclosed at the review meeting of the top executives of the head office and zonal heads of the bank at the IBBL boardroom in the city Thursday, said a press release.

IBBL board of directors Chairman Abu Nasser Muhammad Abduz Zaher was present in the meeting as the chief guest while its Executive Committee Chairman Mominul Islam Patwary attended the concluding session of the meeting as the special guest.

Chaired by IBBL Managing Director M Fariduddin Ahmad, the meeting was addressed, among others, by its deputy managing directors and top executives Mohd Shamsul Haque, Mohammad Abdul Mannan, Md Habibur Rahman and Md Setaur Rahman.

Mr Zaher said the IBBL has achieved more speed this year in deposit, investment and remittance collections in order to maintain the success of the bank.

As employees of a leading bank they should discharge their responsibility to the people of the country as part of duty, he said.

"We have to present Islami Bank to the people through its services in such a way that people can realise that Islami Bank is 'My Bank', our Bank and Bank of the people", he added.

He urged the employees of the bank to build Islami Bank as the number one bank in the world.

To gain this goal the employees have to grow inter-personal competition and work with the mentality of helping each other, the IBBL chairman said.

Mr Patwary urged all to build up relationship with new importers and exporters.

The IBBL managing director said Islami Bank is a Shariah compliant bank and said, complete compliance of Shariah in every investment and transaction is their commitment.

He urged the executives to work for reaching the service of Islami Bank to the doorsteps of the people of the country.

Dhaka stocks close downbeat

noreply@blogger.com (Unknown) — Fri, 30 Jan 2009 03:25:00 +0000

Staff Correspondent
Dhaka stocks finished Thursday downbeat after posting a gain in the previous day in a volatile trading amid a downtrend at the market in recent weeks, market operators said.
The general index of Dhaka Stock Exchange lost 3.93 points, or 0.15 per cent, to close at 2649.49, while its blue chips index, DSE20, shed 6.14 points, or 0.28 per cent, to finish at 2175.11.
A merchant bank official said investors, especially retailers, remained shaky amid the downtrend at the market in recent weeks. Starting with an upbeat mood, the market seesawed throughout the day, he said.
Of the total 263 issues traded, 159 advanced, 97 declined, and seven remained unchanged.
Turnover at the DSE, however, increased to Tk 297.59 crore from the Wednesday’s Tk 261.43 crore.
Beximco Pharmaceuticals topped the turnover leaders with a total transaction of Tk 36.56 crore.
Shinepukur Ceramics, Beximco, Aftab Automobiles, Summit Power, Lafarge Surma Cement, Titas Gas, LankaBangla Finance, Aims 1st Mutual Fund, and Grameen Two Mutual Fund were the rest of the top 10 turnover leaders.
Chittagong stocks dropped on Thursday.
The selective categories index of Chittagong Stock Exchange lost 21.42 points, or 0.40 per cent, to close at 5282.19, while its blue chips index, CSE30, shed 42.22 points, or 0.61 per cent, to finish at 6855.88.
Of the total 159 issues traded on the CSE floor, 81 posted gains, 74 dropped, and four remained unchanged.
Turnover at the CSE went up to Tk 49.38 crore from the Wednesday’s Tk 37.96 crore.

Stocks end nearly flat

noreply@blogger.com (Unknown) — Fri, 30 Jan 2009 03:21:00 +0000

Dhaka stocks ended the week virtually unchanged with investors wandering from one sector to another looking for profit.

The market witnessed a cyclical profit-taking trend, analysts said, adding that the investors, especially the individuals, were randomly switching sides -- sometimes influenced by rumours -- to make profits.

“A short-term profit-taking trend appeared in the market. The investors want to book whatever the profit is after four or five days of trade,” said Arif Khan, general manager of IDLC Finance, yesterday.

The benchmark index of Dhaka Stock Exchange, DSE General Index (DGEN), fell 3.92 or 0.14 percent, to 2,649.49 points. The DSE All Share Price Index however rose 2.1 points, or 0.09 percent, to 2,196.96 points.

A total of 2,93,97,643 shares worth Tk 297.58 crore changed hands on the DSE. Of the 263 traded securities on the DSE, 159 advanced, 97 declined and seven remained unchanged.

Beximco Pharma topped the turnover leaders on the DSE with 20,93,100 traded shares worth Tk 36.55 crore. The other turnover leaders were Shinepukur Ceramics, Beximco, Aftab Automobiles, Summit Power, Lafarge Surma Cement, Titas Gas, LankaBangla Finance, AIMS 1st Mutual Fund and Grameen Mutual Fund One: Scheme Two.

Chittagong stocks recorded a slight fell yesterday. The CSE Selective Categories Index declined 21.42 points, or 0.4 percent, to 5,282.19 points. The CSE All Share Price Index also fell 11.3 points, or 0.13 percent, to 8,157.31 points.

A total of 63,91,118 shares worth Tk 49.38 crore changed hands on the Chittagong Stock Exchange. Of the 159 traded scrips on the port city bourse, 81 advanced, 74 declined and four remain unchanged.

Beximco Pharma topped the turnover leaders on the CSE with 3,85,650 traded shares worth Tk 6.73 crore. The other turnover leaders were Beximco, AIMS 1st Mutual Fund, Shinepukur Ceramics, Grameen Mutual Fund One: Scheme Two, AB Bank, Bextex, BSRM Steels, LankaBangla Finance and Union Capital.

Beximco Pharma down in London trade

noreply@blogger.com (Unknown) — Fri, 30 Jan 2009 03:17:00 +0000

Prices of global depository receipts (GDRs) issued by Beximco Pharmaceuticals fell by around 47 percent at the Alternative Investment Market of London Stock Exchange (LSE) since September 1 last year, amid global financial turmoil.

“The world market is facing recession and the London stock market is not immune from the financial downturn,” said Salman F Rahman, vice-chairman of Beximco Group.

Each GDR of Beximco Pharmaceuticals closed at

13.5 pounds on January 28, while it closed at 25.5 pounds on September 1 last, according to the LSE website.

However, the company, one of the leading drug manufacturers in Bangladesh, is among some globally renowned companies that are facing such a price-drop, as a result of the ongoing financial meltdown.

Meanwhile, Beximco Pharma now performs very well on Bangladesh stock markets, as the LSE reflections is not tangible here.

Similarly the reflection of Bangladesh market is not also tangible on the London market because of the absence of any direct link between the two markets, said Rahman.

Besides, he pointed out, the trading of GDR on the local bourses is not allowed.

On the Dhaka Stock Exchange yesterday, each Beximco Pharma share was traded between Tk 170.60 and 177.60 before closing at Tk 171.70.

The trading of GDRs of the drug maker began on the Alternative Investment Market of London bourse on October 21, 2005.

In the first phase, the company raised around Tk 142 crore from international institutional investors through issuing two crore GDRs.

Beximco Pharmaceuticals in June 2006 announced that it raised 6.5 million pounds through issuance of 8,175,750 additional GDRs, each representing one ordinary share of Tk 10 at an issue price of 80 pence per GDR from the LSE.

With the listing on Alternative Investment Market of LSE, the local pharmaceutical giant positioned itself as the lone company from Bangladesh to raise fund from overseas stock market.

The profit margin of the pharmaceutical company has been coming down since 2005 due mainly to rising raw material prices and higher competition both in the local and international markets.

According to DSE website, the company made a net profit of Tk 489.26 million in 2005, while the profit was Tk 470.66 million in 2006 and Tk 353.07 million in 2007.

As per the half yearly financial statement of the company as of June 2008, its net profit was Tk 151.44 million.

Asian stocks rise

noreply@blogger.com (Unknown) — Wed, 28 Jan 2009 15:25:00 +0000

Asian stocks rose in quiet trade Tuesday as dealers took a lead from a jump on Wall Street and some rare positive economic data from the United States amid a slew of grim employment news.

With half the region's markets still closed for the Chinese New Year holiday and many traders staying away for the same reason, there was some bargain hunting as investors took advantage of a poor end to the previous week.

Tokyo jumped nearly five percent after hitting a three-year low Monday.

The Nikkei was helped by a weaker yen, which boosted exporters, as well as an announcement from the government that it will inject public money into companies other than banks to help them through the global economic meltdown.

The news cheered investors who are tentatively awaiting a raft of miserable corporate news over the coming days and weeks.

The dollar traded at 89.56 yen in Tokyo, up from 89.07 in New York late Monday. The euro firmed to 118.31 yen from 117.46.

Sydney added three percent due to stronger resources stocks, while Mumbai gained 3.8 percent despite the central bank lowering the country's growth forecast for this financial year to March.

The markets were helped by a 0.48 percent rise in New York, which had rallied on hopes for a stimulus plan from US President Barack Obama that is going through Congress.

Markets also took confidence from news of a surprise jump in existing US home sales in December, while an index of leading economic indicators rose 0.3 percent, defying expectations of a drop.

However, tens of thousands of job losses from firms including Caterpillar, IBM, Pfizer and General Motors highlighted the depth of the financial crisis.

New Zealand advanced 1.11 percent, Bangkok 1.85 percent and Manila 0.6 percent, while Jakarta added 1.6 percent.

Stocks fall for second day

noreply@blogger.com (Unknown) — Wed, 28 Jan 2009 14:50:00 +0000

Dhaka stocks slid for a second day in what market analysts said was irrational behaviour.

"There's no reason for the market to trade bearish," an analyst said. "No fundamentals are working in the market."

The market remained volatile over the past few days and the trading pattern indicated that it lost direction, an asset management firm said in an analysis.

The benchmark index, DSE General Index (DGEN), fell 25 points, or 0.93 percent, to 2,637.03 points. The DSE All Share Price Index also declined 20.78 points, or 0.94 percent, to 2,181.93 points.

“Liquidity is declining continuously as institutional and individual investors are following a wait-and-see policy. Lack of policy direction from the new government has frustrated market players,” the firm said.

Sharif Ataur Rahman, managing director of SAR Securities, said: “The investors should now go for long-term investment instead of short-term gains."

The investors should also not make investment decisions, influenced by rumours, he suggested.

The market opened rather steadily. In the opening 20 minutes, DGEN gained about 5 points. But the market found itself on the downward curve.

Of the 248 traded securities on the DSE, 74 advanced, 167 declined and seven remained unchanged.

A total of 2,10,68,892 shares worth Tk 254.39 crore changed hands on the premier bourse.

Beximco Pharma topped the turnover leaders on the DSE with 22,48,250 traded shares worth Tk 37.06 crore. The other turnover leaders were Shinepukur Ceramics, Beximco, Summit Power, Titas Gas, Aftab Automobiles, Quasem Drycells, Eastern Housing, S Alam Cold Rolled Steel and Grameen Mutual Fund One: Scheme Two.

Chittagong stocks also posted a fall. The CSE Selective Categories Index dropped 33.92 points, or 0.63 percent, to 5,286.28 points. The CSE All Share Price Index also slid 42.37 points, or 0.51 percent, to 8,138.67 points.

A total of 35,77,105 shares worth Tk 32.69 crore changed hands on the Chittagong Stock Exchange. Of the 145 traded scrips on the port city bourse, 35 advanced, 102 declined and nine remain unchanged.

Beximco Pharma topped the turnover leaders on the CSE with 2,34,400 traded shares worth Tk 3.87 crore. The other turnover leaders were Shinepukur Ceramics, Beximco, Eastern Housing, AIMS 1st Mutual Fund, BSRM Steels, Grameen Mutual Fund One: Scheme Two, Meghna Petroleum, Bextex and Jamuna Oil.

Dhaka stocks fall again

noreply@blogger.com (Unknown) — Tue, 27 Jan 2009 01:28:00 +0000

The Dhaka Stock Exchange registered fall on Monday after gaining in two consecutive days as the prices of shares fell across the board.
The general index of DSE, the benchmark index, gained 26 points, or 0.97 per cent, to close at 2,662 on Monday from 2,688 on Sunday.
The all shares Price Index dropped 22 points or 0.98 percent to close at 2,202 from 2,224 on Sunday. The DSE-20 of selective shares also fell 18 points or 0.82 percent to close at 2,193 from Sunday’s 2,211 points.
Of the total 254 issues traded on Monday, only 66 registered gains, 181 incurred losses and seven remained unchanged.
The day’s total turnover increased to Tk 2.83b from Tk 2.71b on Sunday while the market capitalization declined to Tk 1.017 trillion from Tk 1.024 trillion on the previous trading day.
Beximco Pharma, Beximco, Shinepukur Ceramics, Summit Power, BATBC, AIMS 1st Mutual Fund, Summit Alliance, Aftab Auto, GRAMEENS2 and BSRM Steel were the turnover leaders in terms of value.
The day’s volume leaders were AIMS 1st Mutual Fund, Beximco Pharma, GRAMEENS2, Shinepukur Ceramics, Fu-Wang Food, Quasem Dry Cell, Beximco Textiles, Beximco, BATBC and BD Welding.
Top gainers of the day were Apex Weaving, Quasem Silk, Quasem Textiles, Tulip Dairy, Sreepur Textile, Rahim Textile, Bengal Fine Ceramics, Monno Jutex, United Leasing Company and M. Hossain Garments.

Stocks slip back into losses

noreply@blogger.com (Unknown) — Tue, 27 Jan 2009 01:25:00 +0000

Dhaka stocks treaded back into the red yesterday, driven by the profit-taking sales of shares that capped a two-day rally.

Shares of most companies that gained over the previous few days traded down on the Dhaka Stock Exchange (DSE).

Some analysts however said investors' shakiness and confusion about the market were the reason behind bearish trade.

“Despite having interest in the market, the investors are still in confusion. Their confidence is running low,” said Yawer Sayeed, managing director of AIMS of Bangladesh.

The benchmark index, DSE General Index, fell 26.12 points, or 0.97 percent, to 2,662.04 points. The DSE All Share Price Index also declined 21.79 points, or 0.97 percent, to 2,202.72 points.

Although the market started positively by gaining about 7 points in opening trade, it soon started sliding. By the 60-minute mark, the net loss of the day stood at about eight points.

In the next 45 minutes, the market gained around 13 points. Later, DGEN traded down for the rest of the day.

Of the 254 traded securities on the DSE, 66 advanced, 181 declined and seven remained unchanged.

A total of 2,45,94,615 shares worth Tk 283.01 crore changed hands on the premier bourse.

Beximco Pharma topped the turnover leaders on the DSE with 21,40,650 traded shares worth Tk 36.05 crore. The other turnover leaders were Beximco, Shinepukur Ceramics, Summit Power, British American Tobacco, AIMS 1st Mutual Fund, Summit Alliance Port, Aftab Automobiles, Grameen Mutual Fund One: Scheme Two and BSRM Steels.

Chittagong stocks also recorded a fall. The CSE Selective Categories Index dropped 50.25 points, or 0.93 percent, to 5,320.2 points. The CSE All Share Price Index also slid 72.26 points, or 0.87 percent, to 8,181.04 points.

A total of 42,78,052 shares worth Tk 35.38 crore changed hands on the Chittagong Stock Exchange. Of the 151 traded scrips on the port city bourse, 38 advanced, 109 declined and four remain unchanged.

Beximco Pharma topped the turnover leaders on the CSE with 2,51,750 traded shares worth Tk 4.22 crore. The other turnover leaders were Beximco, Shinepukur Ceramics, AIMS 1st Mutual Fund, BSRM Steels, Grameen Mutual Fund One: Scheme Two, Summit Power, Titas Gas, Eastern Housing and AB Bank.

Beximco Pharma to raise Tk 460cr from GEM

noreply@blogger.com (Unknown) — Tue, 27 Jan 2009 01:21:00 +0000

Beximco Pharmaceuticals Limited (BPL) yesterday announced a subscription agreement with GEM Global Yield Fund Limited (GEM Global), USA to raise Tk 460 crore by issuing its shares or warrants.

Bangladesh's pharmaceutical giant approved the issuance of ordinary shares aggregating up to Tk 410 crore and warrants worth Tk 50 crore to GEM, according to a press statement.

The company intends to utilise the capital for its BMRE, diversification and working capital.

“The move is testimonial of international of foreign fund manager to Bangladeshi market and reflects the tremendous confidence shown by foreign investors to Bangladeshi market," said Salman F Rahman, vice chairman of Beximco Group.

The shares of BPL will be issued under the variable pricing method at 90 percent of the average market value on Dhaka Stock Exchange Limited (DSE), whereas the warrants will be issued at Tk 200 per warrant/share.

The shares/warrants will be issued to GEM under the Companies Act 1994, subject to approval of its shareholders in their extraordinary general meeting (EGM) and the approval of the Securities and Exchange Commission.

Beximco Pharma expects to increase its turnover and net profit to Tk 1,006 crore and Tk 203 crore respectively in 2010 as most of the additional turnover and profit comes from exports.

Grameen Mutual Fund floats 3rd scheme this year

noreply@blogger.com (Unknown) — Tue, 27 Jan 2009 01:19:00 +0000

The third scheme of Grameen Mutual Fund One will be floated this year following the success of earlier two schemes, a move that will strengthen the mutual fund's contribution to the country's stock market.

The AIMS of Bangladesh, the asset management firm of Grameen Bank, the sponsor of Grameen Mutual Fund One, will float the minimum Tk 300 crore scheme through initial public offering (IPO) and private placement.

“Launching of the third scheme is being designed under the sponsorship of Grameen Bank,” said Yawer Sayeed, managing director of AIMS (Asset and Investment Management Services) of Bangladesh.

“It will be a remarkable addition in the capital market and mutual fund industry,” he said.

The 'Grameen Mutual Fund One' was established under the Trust Act 1882, and registered under the Registration Act 1908 on May 09, 2001. The fund received SEC registration on August 27, 2001.

With a 15-year initial tenure, it is the first mutual fund that floats multiple schemes in Bangladesh.

The face value of per unit of the third scheme will be Tk 10.

Apart from the Grameen's third scheme, the AIMS plans to launch its own second mutual fund targeting the non-resident Bangladeshis (NRBs).

The size of the mutual fund, styled 'AIMS 2nd Probashi Mutual Fund', will be Tk 400 crore to Tk 500 crore.

Ten percent of the fund will be offered to the local investors through IPO, the AIMS MD said.

“We are committed to develop the mutual fund sector of Bangladesh capital market,” he said, adding that the AIMS will go for sectoral and fixed termed mutual funds in future.

The more mutual funds come the more the market becomes vibrant, market analysts said, pointing to the fact that mutual fund's contribution is bigger than other securities in developed countries.

The contribution of the existing mutual funds in terms of the local stock market capitalisation is around 3 percent, which is more than 50 percent in many developed countries.

Presently, 14 mutual funds are being traded on the Dhaka Stock Exchange.

Dhaka stocks gain for 2nd day

noreply@blogger.com (Unknown) — Mon, 26 Jan 2009 10:25:00 +0000

Staff Correspondent

Dhaka stocks on Sunday gained for the second trading day with investors’ participation on the rise, market operators
said.
The general index of Dhaka Stock Exchange gained 17.11 points, or 0.64 per cent, to close at 2688.17, while its blue chips index, DSE20, advanced by 22.04 points, or 1.01 per cent, to finish at 2211.25.
A merchant bank official said the market
saw a buying spree of investors who bought shares to avail themselves of the lower prices of securities after recent weeks’ price fall.
The market, however, witnessed fluctuating movements of price indices on the day, he said.
Market analysts said the market had gained some sort of steadiness since the Securities and Exchange Commission held a market-review meeting with merchant banks and stock exchanges.
The stock market regulatory body convened the meeting on Tuesday following a demonstration staged by a group of retail investors in front of the DSE building on Monday amid a continuous fall in share prices.
Of the total 250 issues traded on the DSE on Sunday, 147 advanced, 98 declined, and five remained unchanged.
Turnover at the DSE increased to Tk 271.23 crore from the Thursday’s Tk 244.62 crore.
Beximco Pharmaceuticals topped the turnover leaders with a total transaction of Tk 25.10 crore.
ACI, Beximco, Shinepukur Ceramics, Summit Power, ACI Formulations, Titas Gas, Summit Alliance Port, Aftab Automobile, and Uttara Bank were the rest of the top 10 turnover leaders of the day.
Chittagong stocks also posted a gain for the second consecutive trading day on Sunday.
The selective categories index of Chittagong Stock Exchange gained 13.23 points, or 0.25 per cent, to close at 5370.46, while its blue chips index, CSE30, advanced by 19.43 points, or 0.28 per cent, to finish at 7027.76.
Of the total 150 issues traded on the CSE floor, 74 posted gains, 70 dropped, and six remained unchanged.
Turnover at the CSE, however, decreased slightly to Tk 32.68 crore from the Thursday’s Tk 33.13 crore.

5 sponsor directors to quit BD Welding

noreply@blogger.com (Unknown) — Mon, 26 Jan 2009 10:22:00 +0000

Five sponsor directors of a listed company, Bangladesh Welding and Electrodes (BD Welding), have sought to quit the company, officials said.

The sponsors, who are also close relative to each other, have already sent a proposal to the state-run Investment Corporation of Bangladesh (ICB) to buy their shares outside the trading floor of the stock exchanges.

These sponsors are AR Khan, founder of BD Welding, Hosne Ara Khan, wife of AR Khan, Aminur Reza Khan, son of AR Khan, Nahreen Mahmud, sister of AR Khan, and Kazi Anwar Ahmed, husband of Nahreen Mahmud.

The five sponsors hold 35,92,500 shares out of 1,04,00,000 shares of the company.

People close to the sponsors said AR Khan, who is the key person behind the management of the company, is an aged person of 90 years and sick.

Now he wants to transfer his and his relatives' sponsorship to a strong managerial person or company like ICB.

Transfer of the sponsorship is however subject to the approval of Securities and Exchange Commission and other regulatory authorities.

“We have received the proposal from the sponsor directors of BD Welding and we are now studying the proposal as well as the company's business performance,” said Ziaul Haque Khondker, managing director of ICB.

Excluding the five sponsor directors, BD Welding, which was listed with the stock exchanges in 1999, has three other sponsors/directors.

The sponsors and directors hold 48.08 percent stakes in the company, while institutions hold 6.93 percent stakes and general investors hold 44.99 percent shares.

As per the half yearly financial report posted on the Dhaka Stock Exchange website, the company made a net profit of Tk 4.09 million as of June 30, 2008.

The company, however, incurred a net loss of Tk 6.99 million in 2007 against Tk 2.43 million in 2006.

Chittagong-based BD Welding, which is being traded under B category on the stock exchanges, mainly produces welding rod and industrial oxygen.

The authorised capital of the company is Tk 150 million and paid up capital is Tk 104 million.

On the DSE yesterday, each BD Welding share of Tk 10 was traded between Tk 40 and Tk 45.

FDI proposals decline

noreply@blogger.com (Unknown) — Mon, 26 Jan 2009 10:18:00 +0000

Foreign direct investment (FDI) commitments were the lowest in 2008 both in terms of value and the number of proposals, according to Board of Investment (BoI) data.

Only 13 projects worth $60 million from intended foreign investors were registered with the BoI last year. Canada alone intended to invest about $53 million in one project.

Some 141 projects worth $327 million were registered in 2007.

Registration means an investment commitment by an intending investor, not actual investment. Registration is an official approval for expression of investment intent by an investor.

During registration, an entrepreneur submits an investment proposal to BoI to be implemented in a specified period.

The number of foreign investment proposals registered with BoI in 2006 was 166 worth $1,471 million. The number of proposals was 131 worth $3.8 billion in 2005.

“Investors want stable politics. The years 2007 and 2008 were volatile for domestic and foreign investors,” said a senior BoI official.

Leasing companies demand tax cuts

noreply@blogger.com (Unknown) — Mon, 26 Jan 2009 10:11:00 +0000

The Bangladesh Leasing and Finance Companies Association (BLFCA) yesterday demanded cuts in corporate taxes for non-bank financial institutions to help the sector grow and contribute to increased economic activities.

A delegation, led by BLFCA Chairman Anis A Khan, met Finance Minister AMA Muhith at his ministry.

BLFCA, the representative body of non-bank financial institutions (FIs), demanded that the government lower the tax rate for FIs from 45 percent, a rate that also applies to banks.

"It was not practical to keep the banks and financial institutions in the same tax bracket, since a major part of the revenue of a bank comes from fee-based earnings such as L/C commission, commission on guarantees, remittances, substantial exchange income, which a financial institution cannot earn," BLFCA said in a statement.

Moreover, the cost of funds for a bank is much lower than non-bank financial institutions, according to BLFCA.

The authorities must set a lower rate for non-bank financial institutions than banks, it demanded.

"Financial institutions in our country play an important role in mobilising and channeling resources. These institutions comprise leasing companies, investment and finance companies, house finance companies," BLFCA said.

The leasing sector, a vital segment of the financial sector, has contributed significantly over the years, despite a string of setbacks, it said.

"It plays a catalytic role in providing alternate sources of finance to the private sector. The leasing industry is facing tremendous competition, challenges and regulatory changes, which affects adversely on the business," BLFCA said.

The association also demanded reinstatement of depreciation allowance to the industry saying that otherwise it would increase the tax burden. The government withdrew depreciation allowance for the leasing companies in 2007-08. The industry had been enjoying the allowance since 1985.

Depreciation allowance means, in all leasing transactions the owner of the asset is entitled to a depreciation allowance on machinery, plant, vehicle or furniture given to a lessee.

The finance minister said the ministry would examine the issue.

DSE team calls on commerce minister

noreply@blogger.com (Unknown) — Fri, 23 Jan 2009 01:32:00 +0000

A team of the Dhaka Stock Exchange on Thursday called on the commerce minister, Faruk Khan, at his office in the capital.
Saiful Islam, senior vice-president of the DSE, led the 12-member team of the bourse.
‘At the meeting, we have updated the minister on the current position of the country’s stock market,’ Saiful Islam told New Age.
He said the DSE team urged the government to develop the market much more. ‘We have urged him to raise funds from the country’s stock market in implementing large infrastructure projects and to offload shares of more state-owned enterprises on the market,’ he said.
‘The minister has assured us that the government will provide all sorts of supports for further growth of the country’s capital market,’ Saiful said, adding, ‘The minister has also asked us to ensure transparency in the market.’
DSE vice-president Sharif Ataur Rahman, directors Md Abdullah Bokhari, Md Rakibur Rahman, MA Quayum, Nasir Uddin Chowdhury, Md Hanif Bhuiya, Lailun Nahar Ekram, Brig Gen Md Johurul Alam, and chief executive officer (current charge) AFM Shariful Islam, among others, were also on the visiting team.

Dhaka stocks inch upward

noreply@blogger.com (Unknown) — Fri, 23 Jan 2009 01:28:00 +0000

Staff Correspondent
Dhaka stocks gained slightly on Thursday amid a volatile trend at the market in recent weeks, market operators said.
The general index of Dhaka Stock Exchange gained 6.16 points, or 0.23 per cent, to close at 2671.06, while its blue chips index, DSE20, advanced by 2.97 points, or 0.14 per cent, to finish at 2189.21.
A DSE stockbroker said the market finished almost flat as investors remained shaky amid the recent bearish trend in the market.
Dhaka stocks finished mixed on Wednesday after Tuesday’s quick-fire surge. On Tuesday, the market jumped after the Securities and Exchange Commission held a market-review meeting with merchant banks and stock exchanges.
The stock market regulatory body convened the meeting following a demonstration of a group of retail investors in front of the DSE building on Monday amid a continuous fall in share prices in recent weeks.
Of the total 254 issues traded on Thursday, 188 advanced, 61 declined and five remained unchanged.
Turnover at the DSE, however, dropped to Tk 244.62 crore from the Wednesday’s Tk 299.55 crore.
Beximco Pharmaceuticals topped the turnover leaders with a total transaction of Tk 16.08 crore.
Shinepukur Ceramics, Beximco, Titas Gas, Apex Tannery, Summit Power, Fu Wang Food, ACI Formulations, Aftab Automobiles, and Quasem Drycells were the rest of the top 10 turnover leaders on the day.
Chittagong stocks also posted a marginal gain on Thursday.
The selective categories index of Dhaka Stock Exchange gained 14.53 points, or 0.27 per cent, to close at 5357.23, while its blue chips index, CSE30, advanced by 1.95 points, or 0.03 per cent, to finish at 7008.33.
Of the total 144 issues traded on the CSE floor, 86 posted gains, 52 dropped, and six remained unchanged.
Turnover at the CSE, however, went down to Tk 33.13 crore from the Wednesday’s Tk 41.02 crore.

Stocks end slightly higher

noreply@blogger.com (Unknown) — Fri, 23 Jan 2009 01:23:00 +0000

Dhaka stocks ended slightly higher yesterday, driven by sharp gain in the share prices of some state-owned and small market capitalisation companies.

Many investors rushed for the shares of government-run companies on speculation that those will see a business momentum under the newly elected government, market operators said.

“It was nothing but a high speculation,” said a member of Dhaka Stock Exchange.

The benchmark index of the premier bourse, DSE General Index, rose 6.16 points, or 0.23 percent to 2,671.06 points. The DSE All Share Price Index also gained 3.53 points, or 0.16 percent to 2,208.28 points.

In the opening 20 minutes or so, the market lost almost 10 points. Then it gained about 18 points in the next 20 to 25 minutes.

In the next 30 minutes the whole gain of the day diminished completely. For the next 75 minutes the market stayed within a band of 5 points.

Then in the following 30 minutes the market lost 6 to 7 points. At the fag end of the session, the market witnessed a rapid rise in the index.

Most securities traded up on the DSE. Of the 254 traded issues, 188 advanced, 61 declined and five remained unchanged.

A total of 2,36,47,560 shares worth Tk 244.62 crore changed hands on the premier bourse.

Beximco Pharma topped the turnover leaders on the DSE with 9,59,850 traded shares worth Tk 16.07 crore. The other turnover leaders were Shinepukur Ceramics, Beximco, Titas Gas, Apex Tannery, Summit Power, Fu-Wang Foods, ACI Formulations, Aftab Automobiles and Quasem Drycells.

Chittagong stocks also posted a slight gain. The CSE Selective Categories Index rose 14.53 points, or 0.27 percent to 5,357.22 points. The CSE All Share Price Index also increased 13.34 points, or 0.16 percent to 8,224.27 points.

A total of 40,88,475 shares worth Tk 33.12 crore changed hands on the Chittagong Stock Exchange. Of the 144 traded scrips on the port city bourse, 86 advanced, 52 declined and six remain unchanged.

Shinepukur Ceramics topped the turnover leaders on the CSE with 2,16,900 traded shares worth Tk 2.48 crore. The other turnover leaders were Beximco, Beximco Pharma, Grameen Mutual Fund One: Scheme Two, BSRM Steels, Apex Tannery, Titas Gas, Dutch-Bangla Bank, Jamuna Oil and AIC Formulations.

Dhaka stocks finish on low note

noreply@blogger.com (Unknown) — Thu, 22 Jan 2009 09:47:00 +0000

Dhaka stocks finished mixed on Wednesday owing to a profit-taking selling pressure amid a volatile trading after Tuesday’s a quick-fire surge, market operators said.
The general index of the Dhaka Stock Exchange lost 7.75 points, or 0.29 per cent, to close at 2664.90, while its blue chips index, DSE20, gained 2.70 points, or 0.12 per cent, to finish at 2186.23.
A DSE stockbroker said the market witnessed a profit-taking selling spree of investors in the late trading. Starting with an upbeat mood, the market finished with on a low note, he said.
On Tuesday, the market jumped after the Securities and Exchange Commission held a market-review meeting with merchant banks and stock exchanges.
The stock market regulatory body convened the meeting following a demonstration of a group of retail investors in front of the DSE building on Monday amid a continuous fall in share prices in recent weeks.
Of the total 258 issues traded on Wednesday, 146 advanced, 105 declined and seven remained unchanged.
Turnover at the DSE, however, increased to Tk 299.55 crore from the Tuesday’s Tk 233.72 crore.
Beximco Pharmaceuticals topped the turnover leaders with a total transaction of Tk 34.09 crore.
Titas Gas, Shinepukur Ceramics, Beximco, BSRM Steels, Summit Power, Apex Tannery, Quasem Drycells, Uttara Bank, and Apex Adelchi Footwear were the rest of the top 10 turnover leaders on the day.
Chittagong stocks closed down on Wednesday.
The selective categories index of Chittagong Stock Exchange lost 31.19 points, or 0.58 per cent, to close at 5342.69, while its blue chips index, CSE30, shed 20.68 points, or 0.29 per cent, to finish at 7006.37.
Of the total 154 issues traded on the CSE floor, 80 posted gains, 70 dropped, and four remained unchanged.
Turnover at the CSE went up to Tk 41.02 crore from the Tuesday’s Tk 37.29 crore.
Trading at upazila-level branches of the DSE brokerage houses will remain closed today due to local government polls. However, settlement obligations shall be settled by the respective head offices of the brokerage houses, said an official of the bourse.

Dhaka stocks slip

noreply@blogger.com (Unknown) — Thu, 22 Jan 2009 09:45:00 +0000

Dhaka stocks fell slightly yesterday amid a spell of confusion that surfaced over the government's pledges about the capital market.

Although the government has sent out a message of its commitment through the market regulator, the investors are waiting for a clear positive statement from the government itself, analysts said.

The Securities and Exchange Commission said on Tuesday Finance Minister AMA Muhit will visit the commission soon and sit with the regulator and stock exchanges authorities to discuss the problems and prospects of the market.

"The decline seems irrational. It appears that investor confidence is still low," said Mahmudul Bari, deputy general manager of the merchant banking division of IDLC Finance.

“Investors are failing to look at the bright side of the market,” he said, adding that it is however a temporary phenomenon. “The investors will start buying soon,” he hoped.

The benchmark index of Dhaka Stock Exchange, DSE General Index, fell 7.75 points, or 0.29 percent, to 2,664.89 points. The DSE All Share Price Index also declined 3.68 points, or 0.16 percent, to 2,204.75 points.

A DSE delegation meets the finance minister today, as the meeting, set for yesterday, was eventually cancelled.

The market started with a momentum and gained about 40 points in the opening 60 minutes.

In the next 30 minutes, the market lost about 20 points. Then the market gained in a bullish trade that lasted about 30 minutes.

Gainers however dominated the losers on the DSE. Of the 258 traded issues, 146 advanced, 105 declined and seven remained unchanged.

A total of 2,73,06,086 shares worth Tk 299.54 crore changed hands on the premier bourse.

Beximco Pharma topped the turnover leaders on the DSE with 20,31,300 traded shares worth Tk 34.08 crore. The other turnover leaders were Titas Gas, Shinepukur Ceramics, Beximco, BSRM Steels, Summit Power, Apex Tannery, Quasem Drycells, Uttara Bank and Apex Adelchi Footwear.

Chittagong stocks also marked a slight fall. The CSE Selective Categories Index declined 31.19 points, or 0.58 percent, to 5,342.69 points. The CSE All Share Price Index also dropped 40.65 points, or 0.49 percent, to 8,210.92 points.

A total of 46,44,746 shares worth Tk 41.02 crore changed hands on the Chittagong Stock Exchange. Of the 154 traded scrips on the port city bourse, 80 advanced, 70 declined and four remain unchanged.

ICB to manage IT project under equity fund

noreply@blogger.com (Unknown) — Thu, 22 Jan 2009 09:41:00 +0000

The state-owned Investment Corporation of Bangladesh (ICB) is set to manage the IT project under the Equity and Entrepreneurship Fund (EEF).

The finance ministry has already approved the transfer of the fund management to the ICB from the central bank, officials said.

“We have received the approval letter. An agreement will be signed with the central bank soon to transfer management,” said Iftikhar-Uz-Zaman, general manager of ICB.

The government allocated Tk 100 crore in the budget for the IT project under the EEF for the current fiscal year.

The central bank had earlier sent a proposal to the finance ministry for approval to the management transfer.

Although Bangladesh Bank decided in November last year in principle to transfer the management of the entire EEF to the ICB for better use of the government fund, the IT project under the EEF will initially be handed over to the ICB.

The ICB had earlier submitted a proposal to the BB, seeking to manage the EEF following the government's intention to separate the EEF management from the central bank. This was because the management of the fund was not a suitable job for the central bank.

The government formed the EEF in 2000 with an initial fund of Tk 100 crore to extend equity support to eligible companies in IT, agriculture and food processing sectors, so that investors are encouraged to invest in these risky, yet promising sectors.

Presently, all the scheduled commercial banks and financial institutions are involved in the administration of EEF.

The BB has so far disbursed Tk 444.31 crore against the granted Tk 528.60 crore for 197 projects in agriculture and food processing and Tk 44.05 crore against the approved fund of Tk 56.87 crore for 32 projects in the IT sector.

Investors stage street protest as Dhaka stocks' downslide goes on

noreply@blogger.com (Unknown) — Wed, 21 Jan 2009 01:17:00 +0000

Share prices went into a tailspin at DSE Monday in the absence of policy direction from the newly elected government, leading unnerved retail investors to take to the street in front of the Dhaka Stock Exchange.

The benchmark index DSE General Index (DGEN) shed 80 points, the single-day biggest drop since June 10 last, to close at 2596.31, the lowest since December 22 last.

Meanwhile, the Securities and Exchange Commission (SEC) will sit today (Tuesday) with the merchant bankers to find out the cause of continuous downslide of the market.

A group of investors gathered outside the prime bourse at around 11 am, chanted slogans and demanded of the government steps to halt the persistent slide of the market as the benchmark index fell for the fourth straight day, the worst losing streak in one month.

The market lost about 250 points in the last 15 days.

"I have lost all my savings in the last 15 days and no one from the government or regulator came to our rescue,'' said Aminur Rahman, 40, a protester. "I lost about Tk 0.5 million," said aggrieved Amin.

The government did not utter any single word to boost the investors' confidence since it was formed on January 6 last, he said.

Police took control of the situation without any untoward incident happening and surrounded the exchange for a while.

Most of the share prices went down on the day. Out of 246 issues traded, only 33 gained, 210 declined and three remained unchanged.

Two other market barometers--All Shares Price Index (DSI) and DSE 20 comprising blue chips-- also lost 62.99 points and 46.70 points to finish at 2147.04 and 2118.00 respectively.

The total turnover came down to Tk 3.22 billion against the previous day's Tk 3.39 billion while the market capitalisation fell below Tk 1.0 trillion-mark to stand at Tk 998.13 billion against previous day's Tk 1.03 trillion.

"The market saw high volume in daily transaction but no fresh fund has been injected as around Tk 3.50 billion was stuck in the private placement of GrameenPhone (GP)," said Yawer Sayeed, a capital market expert.

To add to the woes, a substantial amount of money has also been locked due to extension of application submission period for Puraba Chal project by Rajuk.

He said, some policy direction statement from the newly formed government may restore some confidence of the investors.

DSE acting chief executive officer AFM Shariful Islam said, said, "Institutional investors, the major market players, are reluctant to take part in trading and probably adopted wait and see policy."

Managing director of Prime Finance and Investment Limited Akter H Sannamat said institutional investors took to the sideline in the downslide market as they failed to understand the trend of the market.

Shinepukur Ceramics Limited was the top turnover leader with shares worth Tk 358.26 million traded while Beximco Limited was the second turnover leader with shares worth Tk 313.65 million traded.

Other next turnover leaders were Summit Power, Titas Gas, BSRM Steel Mills Limited, Grameen Scheme Two Mutual Fund and Uttara Bank.

The day's top gainers were Fine Foods, Meghna Pet, Dulamia Cotton, Modern Dyeing and Savar Refractories.

Padma Oil, Janata Insurance, Dandy Dyeing, Paper Processing, BEMCO and Al-Haj Textile were the top losers on the day.

Meanwhile, a delegation of the Dhaka Stock Exchange will meet the Finance Minister AMA Muhith tomorrow (Wednesday) to discuss the latest market situation.

"We are scheduled to meet the Finance Minister tomorrow to talk about the stock market," said AFM Shariful Islam, DSE acting chief executive officer.

The move came at a time when the market lost around 250 points in the last 15 days.

Some policy statement direction from the newly elected democratic government will help restore some confidence in the market, according to the market observers.

Meanwhile, chairman of the Securities and Exchange Commission (SEC) Faruq Ahmad Siddiqi has already met the finance minister recently.

"I met the finance minister recently. During our conversation about various topics, it seemed to me that he has positive attitude towards the stock market," the SEC chairman told the FE.

About the current downslide of the market, he said, "We will hold a meeting with the merchant bankers today (Tuesday) to know the reasons behind the fall of the market."

On Monday, share prices of the DSE, prime bourse, saw a freefall.

The benchmark index DSE General Index (DGEN) tumbled shedding 80 points, a single-day biggest decline in almost six months, or 3.02 per cent to close at 2596.31, its lowest since December 22 last.