Morning Briefings
Saturday, January 30, 2016
MACRO
Bogra economic zone’s groundwork begins
The authorities concerned have started groundwork for establishing an economic zone in
Bogra to explore industrial potentiality of the area. Meanwhile, the local district
administration has already selected over 251 acres of land in Shahjahanpur upazila in
Bogra, 11 kilometer away from the city for the establishment of the proposed site. The place
is located just beside the Bogra-Natore highway. The office of Deputy Commissioner (DC) has
already sent a proposal to Bangladesh Economic Zones Authority (BEZA), seeking approval
for land acquisition. The government needs to spend over Tk289 crore for land acquisition.
Once the proposal is approved, the district administration will start land acquisition work for
construction of the special economic zone, said officials. BEZA Executive Chairman Paban
Chowdhury said: “The location, which has primarily been selected, is not only having
potentiality for agro-based business but also for small engineering plants and export-oriented
industries.”
Details: http://www.dhakatribune.com/business/2016/jan/28/bogra-economic-zonesgroundwork-begins
Overall Market
BSEC commissioner Arif Khan resigns
Bangladesh Securities and Exchange Commission commissioner Arif Khan has resigned on
physical grounds, said a BSEC official on Thursday. The finance ministry accepted his
resignation on Wednesday which will come into effect from February 1 (Monday), BSEC
executive director Saifur Rahman told New Age. The government had appointed Arif, three
other incumbent commissioners and the chairman M Khairul Hossain to BSEC after the
stock market crash in 2011 as part of its initiative to reform the regulatory body. After
completion of his three-year contract, the government in 2014 extended the tenure of Arif as
commissioner for another four years. He has been suffering from spinal cord related
complications for last couple of years and will go abroad for better treatment in February,
said BSEC officials. Sources in BSEC said that Arif is likely to join his previous work place,
IDLC Finance, one of the leading non-bank financial institutions, as its managing director.
Details: http://newagebd.net/197627/bsec-commissioner-arif-khan-resigns/
BANK
Banks donate Tk 25.8cr to PM's fund
Local private commercial banks donated Tk 25.80 crore to the Prime Minister's Relief Fund
on Monday, said Nazrul Islam Mazumder, chairman of the Bangladesh Association of Banks
or BAB. As a platform of private banks' directors, BAB asked its members to donate the
money,. A total of 35 banks responded to the request. The chairmen and managing directors
of the respective banks handed over the cheques to Prime Minister Sheikh Hasina. Islami
Bank Bangladesh gave the highest amount: Tk 2 crore. First Security Islami Bank, Dhaka
Bank, EXIM Bank, Shahjalal Bank, Standard Bank, Prime Bank, NRB Commercial Bank,
Social Islami Bank and United Commercial Bank donated Tk 1 crore each. Other banks
excluding new banks that came into the market in 2013 donated Tk 50 lakh each to the relief
fund. Some eight new banks of the nine gave Tk 25 lakh each as they are not doing too well.
Midland Bank is yet to be a member of the BAB and did not participate.
Details: http://www.thedailystar.net/business/banks-donate-tk-258cr-pms-fund-156610
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Morning Briefings
Saturday, January 30, 2016
Farmers Bank can seek BB review: SC
Farmers Bank can move the Bangladesh Bank for a review of the decision to slap a Tk 1
million fine for concealing loan disbursement information, says the Supreme Court.
According to the laws, the bank now has 14 days to file a review plea with the central bank.
Thursday‟s order by the top court means it is the central bank, which will now decide
whether the Farmer's bank has to pay the fine, according to a report by bdnews24.com
Farmers Bank was launched just two and a half years ago with former home minister and
Awami League MP Mahiuddin Khan Alamgir as the main sponsor. Alamgir is the chairman of
the bank's 21-member board of directors, having replaced his wife. The central bank has
brought it under strict surveillance and appointed an observer following irregularities relating
to Tk 4 billion. On Jan 3, the Bangladesh Bank fined Farmers Bank for concealing
information on loans given to six organisations and instructed to pay it within ten days.
Details: http://www.thefinancialexpress-bd.com/2016/01/28/12887
Bank deposit rates fall sharply
Fixed deposit rates have come down to as low as 4 percent on the back of low demand for
loans, bankers said. The country's inflation is at 6.2 percent but banks offer 4-4.5 percent
for deposits of 3-12 months, meaning a depositor's earning will become negative. In addition,
interest rate earned on bank deposits is subject to tax of 10-15 percent. After paying the tax,
a depositor's net earnings will be negative by around 2 percentage points. Industry analysts
found that interest rates on deposits were 7 percent to 9 percent for most of the time in 2014
and 2015, down from 11-12 percent in 2013. “We will further cut our deposit rates as we
have huge liquid funds,” said Anis A Khan, managing director of Mutual Trust Bank and
chairman of Association of Bankers Bangladesh. Presently, MTB offers 4 percent interest rate
for fixed deposit of 2 months' tenure and highest 7 percent for 3-year deposits.
Details: http://www.thedailystar.net/business/bank-deposit-rates-fall-sharply-209125
MUTUAL FUND
Issuance of stock dividend by MFs hurts the sector
The mutual funds which declared reinvestment units as dividend for their unit holders
witnessed fall in their unit prices as the low-return stock dividend prompted the investors to
ditch the units of the MFs. If the MFs had issued cash dividend, the investors would have got
higher return, stock market experts said. Against the backdrop, investors lost their appetite
for the units of the mutual funds, they said. Mutual funds are generally considered the safest
investment tools on the stock market. Experts said the situation put an adverse impact on
the overall mutual fund sector. The Bangladesh Securities and Exchange Commission in
July, 2013 amended Securities and Exchange Commission (Mutual Fund) Rules, 2001
allowing close-end mutual funds to give stock dividends to their unit holders.
Details: http://newagebd.net/197929/issuance-of-stock-dividend-by-mfs-hurts-the-sector/
RMG
Textile fair kicks off in Dhaka
Leading global brands in textiles and garment technology, machinery and parts are now
displaying their modern products at a fair in Dhaka for Bangladesh's growing textile
industry. Tricotex Machinery Ltd has brought a flat knitting machine from German
manufacturer Stoll to display and sell at the 13th Dhaka International Textile and Garment
Machinery Exhibition which kicked off at Bangabandhu International Conference Centre
yesterday. The Stoll product portfolio comprises flat knitting machines and patterning
Universal Financial Solutions Limited
Paramount Heights, Level-11,65/2/1, Box Culvert Road, Purana Paltan, Dhaka-1000, Phone: 02-7122152,9587880,
Fax:02-9513934, Web: www.ufslbd.com
Morning Briefings
Saturday, January 30, 2016
software which are used to make fabric for fashion and technical applications. Guangzhou
Yong Jin Machinery Company Ltd has brought automated needle loom and weaving loom,
which its salespersons say have high speed and 30 percent more production capacity than
traditionally used machines.
Details: http://www.thedailystar.net/business/textile-fair-kicks-dhaka-209119
Buyers give cold shoulder to RMG price support
The clothing global retailers have not increased prices yet despite improvement of apparel
manufacturing standards in Bangladesh, according to ready-made garment (RMG)
manufactures. Under the Sustainability Compact made by the European Union, USA,
Bangladesh and International Labour Organisation in two and a half years ago, the retailers
were supposed to raise prices of products after upgrading safety standards in the workplace,
which increased production cost. The local RMG makers‟ claim of not keeping retailers‟
promise came to the fore on the eve of second review meeting on “Sustainability Compact” –
an initiative for improving safety standards and ensuring labour rights in the country‟s
apparel factories – which is scheduled for tomorrow in Dhaka. BGMEA senior vice-president
Faruqe Hassan told the Dhaka Tribune that as per the Compact, global retail brands were
supposed to come up with fund to help execute manufacturers‟ remediation process and
promised to raise product prices, once the workers‟ rights and workplace safety are ensured.
Details: http://www.dhakatribune.com/business/2016/jan/27/buyers-give-cold-shoulder-rmgprice-support
PHARMACETICULES
Government to consider cash incentive on pharmaceutical export
The government will consider providing cash incentives on pharmaceutical exports to help
flourish the sector and increase its export potentiality. “I can assure you that the cash
incentive on pharmaceutical exports will be provided very soon,” said Commerce Minister
Tofail Ahmed at the inauguration ceremony of a three-day long 8th Asia Pharma Expo 2016,
an international exhibition on complete pharmaceutical manufacturing technologies at
International Convention City Bashundhara (ICCB) in the capital yesterday. Bangladesh
Association of Pharmaceutical Industries (BAPI) and GPE Expo Pvt Limited jointly organized
the expo to offer a unique opportunity for showcasing wide-range of pharmaceutical products
and services to develop information and knowledge relating to pharmaceuticals machineries,
bulk drugs, environmental equipments and analytical laboratory supplies in a single
platform.
Details: http://www.dhakatribune.com/business/2016/jan/29/tofail-government-considercash-incentive-pharmaceutical-export
TELCO
Agreement signed for Robi-Airtel merger
The parent company of mobile operator Robi, Axiata Group Berhad and the parent company
of Airtel, Bharti Airtel Limited, on Thursday signed an agreement to merge their respective
telecommunication subsidiaries in Bangladesh. After the merger, the combined entity will
operate as Robi and serve approximately 40 million customers. „The proposed transaction is
subject to conditions precedent including receiving applicable approvals from relevant
authorities and is expected to complete in the first half of 2016,‟ said a Robi press release
issued on the day. Upon completion, Malaysia-based Axiata will hold 68.3 per cent
controlling stake in the combined entity, while India-based Bharti will hold 25 per cent and
Universal Financial Solutions Limited
Paramount Heights, Level-11,65/2/1, Box Culvert Road, Purana Paltan, Dhaka-1000, Phone: 02-7122152,9587880,
Fax:02-9513934, Web: www.ufslbd.com
Morning Briefings
Saturday, January 30, 2016
the remaining 6.7 per cent will be held by NTT DOCOMO of Japan. The combined entity will
become the second largest telecom operator of the country in terms of subscribers after
leading operator Grameenphone.
Details: http://newagebd.net/197640/agreement-signed-for-robi-airtel-merger/
WiMAX cos losing market to telcos’ 3G
The country‟s active WiMAX internet users declined by 68 per cent over the last four years as
the 3G mobile internet become more popular among the users. According to the latest data of
the Bangladesh Telecommunication Regulatory Commission, the number of active WiMAX
internet users came down to 1.48 lakh in December 2015 from 4.67 lakh at the same period
in 2012. The user number came down to 3.15 lakh in December 2013 and declined further in
December 2014 to 2.33 lakh. WiMAX (Worldwide Interoperability for Microwave Access) is a
wireless broadband technology for data connectivity which was launched in April 2001.
WiMAX operates similar to WiFi, but at higher speeds over greater distances and for a greater
number of users.
Details: http://newagebd.net/197368/wimax-cos-losing-market-to-telcos-3g/
DISCLAIMER:
This report has been prepared by Universal Financial Solutions Ltd. and represents unfiltered news and information
from various sources at the Dhaka Stock Exchange and is provided ONLY for informational purposes. The information
and data on which this report is based are obtained from sources which we believe to be reliable but do not guarantee
that it is accurate or complete. Universal Financial Solutions Limited accepts no responsibility whatsoever for any direct
or indirect consequential loss arising from any use of this report or its contents. Investors are advised to take
professional advice before making investments and Universal Financial Solutions Limited does not take any
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Universal Financial Solutions Limited
Paramount Heights, Level-11,65/2/1, Box Culvert Road, Purana Paltan, Dhaka-1000, Phone: 02-7122152,9587880,
Fax:02-9513934, Web: www.ufslbd.com