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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
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3
GOVT PLANS TO SLASH TAX RATE TO BOOST EARNINGS: PLANNING
MINISTER .............................................. 4
LOWER LOAN-DEPOSIT RATIO TO AFFECT ECONOMY: BANKERS
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5
DOLLAR GETS COSTLIER FOR IMPORT PAYMENTS
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PUBLIC BANKS LAG BEHIND PRIVATE PEERS
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90PC OF BANGLADESHI JOBS INFORMAL: ILO
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SOFTWARE EXPO BEGINS FEB 22
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PRODUCERS CALL FOR WITHDRAWAL OF RAW JUTE EXPORT BAN
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BANGLADESH IS WELL PREPARED FOR ATTRACTING FDI: MUHITH
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BANKS UNDER PRESSURE FOR ASSET MISMATCH, LIQUIDITY STRESS
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NPLS BOTHER BANKING SECTOR VERY MUCH
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CENTRAL BANK SHOULD ENJOY MORE 'INSTRUMENT INDEPENDENCE'
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MANY LISTED COS SEE RISE IN FOREIGN OWNERSHIP
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LOW-CAP COS DOMINATE DSE GAINER CHART
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TURNOVER EXCEEDS TK 5.0 BILLION-MARK
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EXPORTERS DEMAND LIFTING CURB ON RAW JUTE EXPORTS
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GOVT PLANS TO CUT TAX RATE: MUSTAFA KAMAL
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GLOBAL APPAREL BRAND AGREES TO FIX B'DESH FACTORY FLAWS
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Daily News Flash, 23rd January, 2018
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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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Daily News Flash, 23rd January, 2018
3
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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Daily News Flash, 23rd January, 2018
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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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Daily News Flash, 23rd January, 2018
5
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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Daily News Flash, 23rd January, 2018
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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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Daily News Flash, 23rd January, 2018
7
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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Daily News Flash, 23rd January, 2018
8
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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Daily News Flash, 23rd January, 2018
9
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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Daily News Flash, 23rd January, 2018
10
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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Daily News Flash, 23rd January, 2018
11
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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Daily News Flash, 23rd January, 2018
12
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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Daily News Flash, 23rd January, 2018
13
"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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Daily News Flash, 23rd January, 2018
14
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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Daily News Flash, 23rd January, 2018
15
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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Daily News Flash, 23rd January, 2018
16
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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Daily News Flash, 23rd January, 2018
17
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
-
Daily News Flash, 23rd January, 2018
18
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http://www.sharenews24.com/index.php?page=details&nc=1&news_id=7671
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Daily News Flash, 23rd January, 2018
19
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http://www.samakal.com/todays-print-edition/tp-industry-trade/article/18014887/-----http://www.samakal.com/todays-print-edition/tp-industry-trade/article/18014887/-----
-
Daily News Flash, 23rd January, 2018
20
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http://www.samakal.com/todays-print-edition/tp-industry-trade/article/18014884/
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-
Daily News Flash, 23rd January, 2018
21
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http://www.sharebazarnews.com/archives/94734http://sharebiz.net/
-
Daily News Flash, 23rd January, 2018
22
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Daily News Flash, 23rd January, 2018
23
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http://www.prothomalo.com/economy/article/1414456/----
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http://www.prothomalo.com/economy/article/1414456/----http://www.kalerkantho.com/print-edition/industry-business/2018/01/23/592894
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Daily News Flash, 23rd January, 2018
24
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Daily News Flash, 23rd January, 2018
25
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http://www.kalerkantho.com/online/business/2018/01/22/592887
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-
Daily News Flash, 23rd January, 2018
26
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-
Daily News Flash, 23rd January, 2018
27