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Bullish turnover in the stock calls for caution

Business Report
 
The bullish trend continued in the stock market for the seventh consecutive  session till last Wednesday when the market appeared slowed down on a course of correction on Thursday. 
Amidst the bullish trend, market monitors meanwhile urged caution among investors as they fear the repeat of market manipulation by vested quarters who had robbed small investors on several occasions in recent past. 
Former Deputy Governor of Bangladesh Bank Ibrahim Khaled called for caution and asked investors to remain vigilant against manipulation. 
But Finance Minister AMA Muhith said  “Our stock market is in a good and stable position now. Foreign investments are coming as well as new IPOs entering the market. More are on the way. “We will also take steps to bring the multinational companies to the market.”
The finance minister also said there was a trend among the local entrepreneurs to develop industries using bank loans, which, he says, was ‘not right’.
The Dhaka bourse’s key index reached the 5,500-point mark with the turnover crossing Tk 2,000 crore for the first time in more than six years.
The escalation of the turnover and index, the two most important indicators of the market, suggests that investors are getting back their confidence in the market, which has been sluggish since the price debacle of 2011.
DSEX, the benchmark index of Dhaka Stock Exchange, rose 97.61 points or 1.78 percent to finish the day at 5,575.47 points — the highest since the introduction of the index on January 27, 2013.
The turnover stood at Tk 2,064.96 crore on Wednesday up 11.22 percent from the previous day. The turnover last crossed Tk 2,000 crore on December 7, 2010. “Investors are shrugging off fears,” said Md Zahirul Islam, chairman of Prilink Securities, a stockbroker.
“Their confidence is growing gradually and they are injecting fresh funds into the market.” Positive macro-economic indicators, including low interest and deposit rates, political stability and lucrative prices of securities, are the main factors that are driving the investors now, he said.
“Still the average price-earnings ratio of banking stocks is only 5-6, meaning the prices can go up further.” Of the traded issues on the premier bourse on Wednesday, 224 advanced, 86 declined and 18 remained unchanged.
Beximco dominated the turnover chart with its transactions of 1.99 crore shares worth 
Tk 74.99 crore, followed by Baraka Power, Jamuna Oil, LankaBangla Finance and MJL Bangladesh.
Among the major sectors, non-banking financial institutions increased the most—by 6.42 percent—in market capitalisation, followed by mutual funds 4.03 percent, fuel and power 3.52 percent, general insurance 2.33 percent, banks 2.75 percent, cement 1.31 percent and textiles 0.85 percent.
Conversely, life insurance declined 0.34 percent.
Padma Oil was the day’s best performer, posting a 9.96 percent gain. Imam Button Industries was the worst loser, plunging 7.02 percent.
Chittagong stocks rose with the bourse’s benchmark index, CSCX, increasing 171.06 points or 1.67 percent to close at 10,379.32. Gainers beat losers as 186 advanced and 74 declined, while 16 finished unchanged on the Chittagong Stock Exchange.
The port city bourse traded 4.48 crore shares and mutual fund units, generating a turnover of Tk 114.8 crore.

Comment

Business Report
 
The bullish trend continued in the stock market for the seventh consecutive  session till last Wednesday when the market appeared slowed down on a course of correction on Thursday. 
Amidst the bullish trend, market monitors meanwhile urged caution among investors as they fear the repeat of market manipulation by vested quarters who had robbed small investors on several occasions in recent past. 
Former Deputy Governor of Bangladesh Bank Ibrahim Khaled called for caution and asked investors to remain vigilant against manipulation. 
But Finance Minister AMA Muhith said  “Our stock market is in a good and stable position now. Foreign investments are coming as well as new IPOs entering the market. More are on the way. “We will also take steps to bring the multinational companies to the market.”
The finance minister also said there was a trend among the local entrepreneurs to develop industries using bank loans, which, he says, was ‘not right’.
The Dhaka bourse’s key index reached the 5,500-point mark with the turnover crossing Tk 2,000 crore for the first time in more than six years.
The escalation of the turnover and index, the two most important indicators of the market, suggests that investors are getting back their confidence in the market, which has been sluggish since the price debacle of 2011.
DSEX, the benchmark index of Dhaka Stock Exchange, rose 97.61 points or 1.78 percent to finish the day at 5,575.47 points — the highest since the introduction of the index on January 27, 2013.
The turnover stood at Tk 2,064.96 crore on Wednesday up 11.22 percent from the previous day. The turnover last crossed Tk 2,000 crore on December 7, 2010. “Investors are shrugging off fears,” said Md Zahirul Islam, chairman of Prilink Securities, a stockbroker.
“Their confidence is growing gradually and they are injecting fresh funds into the market.” Positive macro-economic indicators, including low interest and deposit rates, political stability and lucrative prices of securities, are the main factors that are driving the investors now, he said.
“Still the average price-earnings ratio of banking stocks is only 5-6, meaning the prices can go up further.” Of the traded issues on the premier bourse on Wednesday, 224 advanced, 86 declined and 18 remained unchanged.
Beximco dominated the turnover chart with its transactions of 1.99 crore shares worth 
Tk 74.99 crore, followed by Baraka Power, Jamuna Oil, LankaBangla Finance and MJL Bangladesh.
Among the major sectors, non-banking financial institutions increased the most—by 6.42 percent—in market capitalisation, followed by mutual funds 4.03 percent, fuel and power 3.52 percent, general insurance 2.33 percent, banks 2.75 percent, cement 1.31 percent and textiles 0.85 percent.
Conversely, life insurance declined 0.34 percent.
Padma Oil was the day’s best performer, posting a 9.96 percent gain. Imam Button Industries was the worst loser, plunging 7.02 percent.
Chittagong stocks rose with the bourse’s benchmark index, CSCX, increasing 171.06 points or 1.67 percent to close at 10,379.32. Gainers beat losers as 186 advanced and 74 declined, while 16 finished unchanged on the Chittagong Stock Exchange.
The port city bourse traded 4.48 crore shares and mutual fund units, generating a turnover of Tk 114.8 crore.

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Govt shelves plan to cut oil prices
Business Report
 
State Minister for energy and natural resources Nasrul Hamid said the government is not going to further slash fuel prices as prices of oil are showing upward in global market.
The government reduced oil prices in April last and was scheduled to slash again in December and later said the price cut will come in January this year. But now since prices are going up there is no possibility to reduce it, he said. 
The state minister referred to a World Bank forecast which says the oil price would continue to show upward trend in the next one year. Muhith, however, said a final decision has not been taken yet.
In April last, the government cut the prices of octane and petrol by Tk 10 a litre and diesel and kerosene by Tk 3, with the intention of passing on the benefits of low prices in the international market to consumers.
At that time, the government had said the cut was part of a government bigger plan to reduce the fuel prices in phases.
But the government drew criticism as the reduction in fuel oil prices left no impact on local market as well as on the cost of living as it did not lower the transport fares or electricity prices.
Experts said Bangladesh has not benefited from the low oil prices in the international market.
If the prices were cut significantly, it would have positive impact on inflation as well as reduced transport costs, working as a blessing for the people.
The most direct benefit of a significant cut would have gone to farmers who use diesel run pumps to irrigate their crops as well as power plants. The low oil prices also reduce costs for businesses that use oil products. 
Besides, the government is losing a golden opportunity by not bringing in necessary policy reforms in the power sector and linking the local market with the international market, said Zahid Hussain, lead economist of the World Bank in Dhaka.
“Had we linked the local prices with the international market, we would not have to increase the prices at least at this moment,” he said.

Comment

Business Report
 
State Minister for energy and natural resources Nasrul Hamid said the government is not going to further slash fuel prices as prices of oil are showing upward in global market.
The government reduced oil prices in April last and was scheduled to slash again in December and later said the price cut will come in January this year. But now since prices are going up there is no possibility to reduce it, he said. 
The state minister referred to a World Bank forecast which says the oil price would continue to show upward trend in the next one year. Muhith, however, said a final decision has not been taken yet.
In April last, the government cut the prices of octane and petrol by Tk 10 a litre and diesel and kerosene by Tk 3, with the intention of passing on the benefits of low prices in the international market to consumers.
At that time, the government had said the cut was part of a government bigger plan to reduce the fuel prices in phases.
But the government drew criticism as the reduction in fuel oil prices left no impact on local market as well as on the cost of living as it did not lower the transport fares or electricity prices.
Experts said Bangladesh has not benefited from the low oil prices in the international market.
If the prices were cut significantly, it would have positive impact on inflation as well as reduced transport costs, working as a blessing for the people.
The most direct benefit of a significant cut would have gone to farmers who use diesel run pumps to irrigate their crops as well as power plants. The low oil prices also reduce costs for businesses that use oil products. 
Besides, the government is losing a golden opportunity by not bringing in necessary policy reforms in the power sector and linking the local market with the international market, said Zahid Hussain, lead economist of the World Bank in Dhaka.
“Had we linked the local prices with the international market, we would not have to increase the prices at least at this moment,” he said.

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Britain will leave EU single market

Reuters
 
Britain will leave the EU’s single market when it exits the European Union, Prime Minister Theresa May said on Tuesday, putting an end to speculation that London might try to seek a “soft Brexit.” 
In a long-awaited speech in which she sought to define the country’s future as a global player that aims to trade freely far beyond Europe, May said the final exit deal would be put to parliament for a vote.
That promise helped revive the pound on currency markets. Sterling GBP=D4, which has traded at the lowest levels against the US dollar for more than three decades, rose during May’s speech hitting a day high. May said she would seek an equal partnership with the EU but that she would not adopt models already used by other countries that have free trade agreements with the bloc.
Her statement that Britain would leave the single market was by far the clearest indication she has ever given of her plans for the future, after months of criticism that she was not being sufficiently transparent.
“I want to be clear: What I am proposing cannot mean membership of the single market,” May told an audience of foreign diplomats and Britain’s own Brexit negotiating team at a mansion house in London.
“Instead we seek the greatest possible access to it though a new comprehensive, bold and ambitious free trade agreement. That agreement may take in elements of current single market arrangements in certain areas,” May said.
Her announcement that she will put the final Brexit deal to a vote in both houses of parliament comes ahead of a court decision on whether she has the power to start the process of withdrawing without parliamentary approval.
She has said she plans to launch the two-year exit negotiation process by the end of March.
Britons’ vote to leave the bloc has opened a huge number of questions about immigration, the future rights of the many EU citizens already living in the United Kingdom, whether exporters will keep tariff-free access to the single European market and British-based banks will be able to serve continental clients.
The Brexit talks, expected to be one of the most complicated negotiations in post-World War Two European history, could decide the fate of her premiership, the United Kingdom and the future shape of the European Union that Britain leaves behind.
May’s speech comes as Northern Ireland, the part of the UK most exposed to Brexit due to its land border with the Irish Republic, faces a lengthy period of political paralysis after the collapse of its power-sharing govern-ment.
US President-elect Donald Trump has said that Brexit will turn out to be a great thing and the other countries would follow Britain out of the European Union. He promised to strike a swift bilateral trade deal with the United Kingdom.

Comment

Reuters
 
Britain will leave the EU’s single market when it exits the European Union, Prime Minister Theresa May said on Tuesday, putting an end to speculation that London might try to seek a “soft Brexit.” 
In a long-awaited speech in which she sought to define the country’s future as a global player that aims to trade freely far beyond Europe, May said the final exit deal would be put to parliament for a vote.
That promise helped revive the pound on currency markets. Sterling GBP=D4, which has traded at the lowest levels against the US dollar for more than three decades, rose during May’s speech hitting a day high. May said she would seek an equal partnership with the EU but that she would not adopt models already used by other countries that have free trade agreements with the bloc.
Her statement that Britain would leave the single market was by far the clearest indication she has ever given of her plans for the future, after months of criticism that she was not being sufficiently transparent.
“I want to be clear: What I am proposing cannot mean membership of the single market,” May told an audience of foreign diplomats and Britain’s own Brexit negotiating team at a mansion house in London.
“Instead we seek the greatest possible access to it though a new comprehensive, bold and ambitious free trade agreement. That agreement may take in elements of current single market arrangements in certain areas,” May said.
Her announcement that she will put the final Brexit deal to a vote in both houses of parliament comes ahead of a court decision on whether she has the power to start the process of withdrawing without parliamentary approval.
She has said she plans to launch the two-year exit negotiation process by the end of March.
Britons’ vote to leave the bloc has opened a huge number of questions about immigration, the future rights of the many EU citizens already living in the United Kingdom, whether exporters will keep tariff-free access to the single European market and British-based banks will be able to serve continental clients.
The Brexit talks, expected to be one of the most complicated negotiations in post-World War Two European history, could decide the fate of her premiership, the United Kingdom and the future shape of the European Union that Britain leaves behind.
May’s speech comes as Northern Ireland, the part of the UK most exposed to Brexit due to its land border with the Irish Republic, faces a lengthy period of political paralysis after the collapse of its power-sharing govern-ment.
US President-elect Donald Trump has said that Brexit will turn out to be a great thing and the other countries would follow Britain out of the European Union. He promised to strike a swift bilateral trade deal with the United Kingdom.

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BRAC Bank opens ATMs at Tamishna Group factory
Business Report
 
As part of providing customized banking services to big corporate organizations, BRAC Bank Limited opened dedicated in-house ATM in the factory premises of Tamishna Group which is country’s one of the leading garment manufacturers and exporters.
Mr. Selim R. F. Hussain, Managing Director & CEO of BRAC Bank and Mr. Gulzar A Chowdhury, Managing Director of Tamishna Group formally opened the two ATMs in the factory in Bhadam Bazar, Tongi on January 12. 
Mr. Mahmoodun Nabi Chowdhury, Head of Corporate Banking, and Mr. Kyser Hamid, Acting Head of Retail Banking and Head of Retail Sales of BRAC Bank  were present on the occasion. 
The opening of the two in-house ATMs is as part of exclusive Employee Banking Services with Tamishna Group. Such initiative aims at providing banking services to the corporate houses and strengthening corporate relationship to explore retail business opportunities, said a press release.

Comment

Business Report
 
As part of providing customized banking services to big corporate organizations, BRAC Bank Limited opened dedicated in-house ATM in the factory premises of Tamishna Group which is country’s one of the leading garment manufacturers and exporters.
Mr. Selim R. F. Hussain, Managing Director & CEO of BRAC Bank and Mr. Gulzar A Chowdhury, Managing Director of Tamishna Group formally opened the two ATMs in the factory in Bhadam Bazar, Tongi on January 12. 
Mr. Mahmoodun Nabi Chowdhury, Head of Corporate Banking, and Mr. Kyser Hamid, Acting Head of Retail Banking and Head of Retail Sales of BRAC Bank  were present on the occasion. 
The opening of the two in-house ATMs is as part of exclusive Employee Banking Services with Tamishna Group. Such initiative aims at providing banking services to the corporate houses and strengthening corporate relationship to explore retail business opportunities, said a press release.

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Annual Conference of Eastland Insurance held

Business Report
 
Annual Conference-2017 of Eastland Insurance Co. Ltd. was held on January 14  in the auditorium of the Dhaka Chamber Of Commerce And Industry.
Mr. Mahbubur Rahman, Chairman of the Company opened the conference and praised the performance of the company employees during 2016.
He also called upon the participants to face the challenges ahead and maintain the growth trend through dynamic and professional excellences of their work fulfilling company directives and guidelines of the Insurance Development & Regulatory Authority (IDRA). 
Mr. Arun Kumar Saha, Managing Director & CEO also expressed satisfaction on the company performance and praised the executives, branch in-charges and other marketing and non-marketing personnel for their hard work. He also outlined the business programme set for 2017 and gave directives to all how to fulfill their targets. 
Executives and Officers of branches from all over the country participated in the conference. The Chairman gave prizes and awards to those who left their mark in company growth with good performance. 
A good number of Directors of the Company were also present, said a press release.

Comment

Business Report
 
Annual Conference-2017 of Eastland Insurance Co. Ltd. was held on January 14  in the auditorium of the Dhaka Chamber Of Commerce And Industry.
Mr. Mahbubur Rahman, Chairman of the Company opened the conference and praised the performance of the company employees during 2016.
He also called upon the participants to face the challenges ahead and maintain the growth trend through dynamic and professional excellences of their work fulfilling company directives and guidelines of the Insurance Development & Regulatory Authority (IDRA). 
Mr. Arun Kumar Saha, Managing Director & CEO also expressed satisfaction on the company performance and praised the executives, branch in-charges and other marketing and non-marketing personnel for their hard work. He also outlined the business programme set for 2017 and gave directives to all how to fulfill their targets. 
Executives and Officers of branches from all over the country participated in the conference. The Chairman gave prizes and awards to those who left their mark in company growth with good performance. 
A good number of Directors of the Company were also present, said a press release.

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MTB’s blankets to Cadet College Club for cold hit people

Business Report
 
Alive to its corporate responsibility Mutual Trust Bank Limited (MTB)recently donated five hundred (500) blankets for distribution amongst cold-affected people of different regions through Cadet College Club network.  
Rashed A. Chowdhury, President, Cadet College Club Limited (CCCL) received a token sample of blankets from Syed Rafiqul Haq, Deputy Managing Director & Chief Business Officer (CBO) of Mutual Trust Bank at a function held at Cadet College Club Limited office at Gulshan. 
Md Ishtiaque Zahir (Titas), Vice President, TM Shahidul Islam, Secretary General, Md Jakaria Habib, Joint Secretary General and Kazi Masum Hossain, Treasurer were present. 
Members of the club Md Jahangir Hossain, Jashim Mohammad Al-Amin, Md Ziaur Rahman, Chowdhury Rumana Tabassum Beg, Kazi Anwar Sadat, Hafiz Imroz Mahmud of Cadet College Club Limited (CCCL), Azad Shamsi, Head of Other Division Branches also took part in the event. 
Tarek Reaz Khan, Head of SME and Retail Banking, Azam Khan, Group Chief Communications Officer of MTB and other senior officials of both the organizations also attended it, said a press release.

Comment

Business Report
 
Alive to its corporate responsibility Mutual Trust Bank Limited (MTB)recently donated five hundred (500) blankets for distribution amongst cold-affected people of different regions through Cadet College Club network.  
Rashed A. Chowdhury, President, Cadet College Club Limited (CCCL) received a token sample of blankets from Syed Rafiqul Haq, Deputy Managing Director & Chief Business Officer (CBO) of Mutual Trust Bank at a function held at Cadet College Club Limited office at Gulshan. 
Md Ishtiaque Zahir (Titas), Vice President, TM Shahidul Islam, Secretary General, Md Jakaria Habib, Joint Secretary General and Kazi Masum Hossain, Treasurer were present. 
Members of the club Md Jahangir Hossain, Jashim Mohammad Al-Amin, Md Ziaur Rahman, Chowdhury Rumana Tabassum Beg, Kazi Anwar Sadat, Hafiz Imroz Mahmud of Cadet College Club Limited (CCCL), Azad Shamsi, Head of Other Division Branches also took part in the event. 
Tarek Reaz Khan, Head of SME and Retail Banking, Azam Khan, Group Chief Communications Officer of MTB and other senior officials of both the organizations also attended it, said a press release.

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Shahjalal Islami Bank distributed blankets

Business Report
 
Shahjalal Islami Bank Ltd. (SJIBL) distributed blankets among winter hit poor at Bandura Holly Cross High School premises in Nawabganj on January 13. Noted businessman & social worker Mr. Razzak Mollah distributed it on behalf of the bank.
Among others the bank’s Branch Manager of Bandura Patricia Celine Gomez,   Manager of Baruakhali branch Md. Abdul Mazid, Assistant Head teacher of Bandura Holly Cross High School Brother Probad and the Chairman of Kusumhati Union Parished Amzad Hossain Azad were present.

Comment

Business Report
 
Shahjalal Islami Bank Ltd. (SJIBL) distributed blankets among winter hit poor at Bandura Holly Cross High School premises in Nawabganj on January 13. Noted businessman & social worker Mr. Razzak Mollah distributed it on behalf of the bank.
Among others the bank’s Branch Manager of Bandura Patricia Celine Gomez,   Manager of Baruakhali branch Md. Abdul Mazid, Assistant Head teacher of Bandura Holly Cross High School Brother Probad and the Chairman of Kusumhati Union Parished Amzad Hossain Azad were present.

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