Daily News Flash, 7th December, 2017 - EBL Securities · 2017-12-07 · EXIM BANK LAUNCHES...

Daily News Flash, 7th December, 2017

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DSEX 20.45 Gold (Ounce) $1266.70 Dollar 82.40 (Buy) 82.40 (Sell) CSCX 56.99 Oil (Barrel) $56.93 Euro 97.43 (Buy) 97.46 (Sell)

NO NEED FOR NEW BANKS .............................................................................................................................. 2

FEMALE EMPLOYEES ON THE DECLINE ............................................................................................................. 3

MOBILE PHONES HELP BUILD BUSINESS NETWORKS: SURVEY ......................................................................... 4

WOMEN LAG BEHIND MEN IN USE OF MOBILE MONEY: IFC STUDY ................................................................. 5

AGORA AMEX CARD LAUNCHED ...................................................................................................................... 6

AZAD NEW JANATA BANK CEO ........................................................................................................................ 7

BANGLADESH CAN MAKE ROBOTS LIKE SOPHIA .............................................................................................. 7

TOFAIL ASSURES SAUDI DELEGATION OF BETTER BUSINESS CLIMATE ............................................................. 8

BUSINESSES, MAINLY RMG, ENJOY TK 34,880CR DUTY BENEFIT IN FY17 .......................................................... 8

SAUDI BUSINESSES URGED TO INVEST IN ANY EZ OF BANGLADESH ................................................................. 9

FACE REGULATORY ACTION UNLESS BANK GUARANTEE RENEWED ............................................................... 10

STOCKS DROP AMID YEAR-END JITTERY......................................................................................................... 11

NOW NRB COMMERCIAL BANK MD GETS HIS MARCHING ORDERS ............................................................... 11

EVERY DISTRICT TO GET HIGH-TECH PARK: PM .............................................................................................. 12

DHAKA TO SEEK RELAXATION OF PROCUREMENT CONDITIONS .................................................................... 13

BD ECONOMY MAY GROW 7.1PC, BUT RISKS REMAIN ................................................................................... 14

DSE LARGELY LIES 'INEFFICIENT', NOT IDEAL FOR QUICK RETURNS ................................................................ 15

THRUST ON BUILDING FINANCIAL ECOSYSTEM .............................................................................................. 16

EXIM BANK LAUNCHES APPS-BASED EWALLET BANKING SERVICE ................................................................. 17

PUBLIC SUBSCRIPTION OF CAPM IBBL MF TO BEGIN DEC 10 .......................................................................... 18

WORLD BANK TO SUPPORT THE MAIN BOURSE............................................................................................. 18

SQUARE PHARMA TOPS DSE TURNOVER CHART ............................................................................................ 20

PRIME BANK RECEIVED 1ST PRIZE FOR CORPORATE GOVERNANCE EXCELLENCE ........................................... 20

PRIME INSURANCE COMPANY LIMITED WON THE SILVER AWARD AT THE 4TH ICSB NATIONAL AWARD-2016

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PLATFORM ADOPTS 12-PT SDG DECLARATION .............................................................................................. 21

UBER EYES SLASHING CAR OWNERSHIP RATE ................................................................................................ 22

APPAREL EXPORT TO US KEEPS DECLINING .................................................................................................... 23

GOVT TO IMPORT 0.2M TONNES OF RICE, WHEAT ........................................................................................ 24

SAUDI COMPANY TO SET UP 40-100 MW SOLAR PLANT ................................................................................ 24

PM INAUGURATES HAOR SOLAR PROJECT IN SUNAMGANJ ON SUNDAY ....................................................... 25

BRIGHT LIQUORING TYPES WITNESS STRONG DEMAND ................................................................................ 26

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NO NEED FOR NEW BANKS Setting up three more new banks will not bring any good for the banking sector as the existing ones are already weighed down by large volume of non-performing loans, said a former finance minister yesterday. M Syeduzzaman said: 57 banks are too many considering the size of the economy. So, there is no need to allow any more new bank. He spoke at the inaugural of a two-day conference organised by Bangladesh Institute of Development Studies at Lakeshore Hotel in Dhaka. Syeduzzaman said the central bank's supervision and monitoring system on the banking sector is not well enough which has contributed to the increased trend of default loans. The ratio of non-performing loans in the state-run banks is much higher than that of private commercial banks because of the former's weak business performance, he said. We should pay more attention to the banking sector with a view to strengthening its financial health, said the former finance secretary. Syeduzzaman also said the flow of foreign direct investment has yet to reach a satisfactory level because of the absence of required infrastructural facilities. Mohammed Farashuddin, a former governor of the central bank, said the banking sector has expanded significantly but Bangladesh Bank has failed to strengthen its supervisory capability to catch up with the expansion. He said, Default loans in the banking sector are still less than those in a number of neighbouring countries. There are many methods to control NPLs. Mashiur Rahman, economic affairs adviser to the prime minister, said new avenues should be discovered to invest remittance in the productive sector as the hard-earned money sent by the migrant workers is used for consumption.


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He also said regulatory commissions have significant role in fixing and resetting the prices of electricity and gas and call rate of mobile phones. We should think whether the commissions have acquired skills and quality necessary to take decisions properly in this regard. KAS Murshid, director-general of the BIDS, presided over the session. Source: http://www.thedailystar.net/business/no-need-new-banks-1501459

FEMALE EMPLOYEES ON THE DECLINE The number of female employees fell 13.10 percent to 5.07 million in Bangladesh last year compared to 2013 mainly because of closure of subcontracting businesses in the garment sector, according to a new survey. The study of the Bangladesh Institute of Development Studies (BIDS) showed there were 5.51 million female employees in 2013. Four years ago, 32.8 percent females were employed but their number declined to 28.5 percent in 2016, according to the survey, which was presented at the BIDS Research Almanac 2017 at the Lakeshore Hotel in Dhaka yesterday. One of the major factors behind the declining trend of women employment was the closure of subcontracting in the garment sector after the Rana Plaza building collapse in April 2013, said Md Iqbal Hossain, research associate of the BIDS. Other reasons are withdrawal of temporary jobs, especially in urban areas, with the rise of family income. For example, a female worker willing to work at a lower grade in a factory quits when the income of the increases, Hossain said. Another reason is the withdrawal of female workers from part-time jobs for different reasons, including shifting of factories or starting of their own businesses, he said. However, the number of female workers will rise in the country in the near future, especially in some specialised sectors such as garment, leather and leather goods, ICT, pharmaceuticals and toys as these are growing industries, Hossain said. The government should introduce training centres following UCEP model so that an adequate number of skilled workers can be supplied to the growing industrial sectors. UCEP trainings are sector-specific and can be applied to jobs directly, benefiting both employees and employers, Hossain said after presenting his paper on labour supply and its changes during 2006 to 2016: focus on gender and regional difference. Citing data from the Bangladesh Bureau of Statistics, Hossain said employment of female workers in the agricultural sector increased to 63.1 percent in 2016 from 53.5 percent in 2013. Employment of female workers in the industrial sector decreased to 16.1 percent in 2016 from 23.7 percent in 2013, while it declined to 14.9 percent from 22.5 percent in 2013 in the manufacturing sector. Division-wise, the biggest rise in the labour force participation by female workers was noticed in Khulna division. In 2016, the participation of female in jobs in Khulna was 42.2 percent from 26.9 percent previously. In Rajshahi, the participation rate was 49.8 percent last year from 34.1 percent previously while in Barisal the participation rate declined to 29.8 percent from 30.9 percent in 2013.

http://www.thedailystar.net/business/no-need-new-banks-1501459


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Similarly, in Chittagong the participation rate declined to 34 percent from 36.4 percent during the period. The female's participation in jobs in Sylhet has been decreasing gradually since 2006. In another paper titled transition between informal and formal employment, researcher Minhaj Mahmud said 30 percent of those leaving private jobs move to self-employment. Transitions from private employment to casual work are more common among those with lower level of education whereas transitions to employment are more common among prime aged workers and among those retaining the same employment benefits. Speaking as a panel discussant, Simeen Mahmud, who teaches at Brac University, said sexual harassment at workplaces is so common that it has become a major barrier to female's participation in jobs. Rizwanul Islam, former special adviser for the employment sector at the International Labour Organisation, moderated the session. Source: http://www.thedailystar.net/business/female-employees-the-decline-1501456

MOBILE PHONES HELP BUILD BUSINESS NETWORKS: SURVEY A survey has found that the use of mobile phones in rural areas has enabled households to build smooth business networks across the country, enhancing their income. The mobile phone improves income by facilitating marketing of products, eliminating travel costs and saving time, according to a research paper for which the survey was conducted. It was presented at a session of an annual event of the Bangladesh Institute of Development Studies (BIDS) at Lakeshore Hotel in the capital yesterday. Monzur Hossain, senior research fellow at BIDS, presented the paper on Mobile phones, households welfare and women's empowerment: evidence from rural off-grid regions of Bangladesh, at a session of BIDS Research Almanac 2017. MA Baqui Khalily, former executive director of the Institute of Microfinance, chaired the session. Mobile phones also enhanced women empowerment forming a channel for income generation, said Hossain. As physical communication is cumbersome in rural areas, mobile communication fills the gap, says the research paper. The ownership of mobile phone by households increased the probability of income generation from fisheries by 6.9 percent to 9.8 percent, the research shows. The survey comprised over 3,540 households during the second half of 2016. The sample households are taken from off-grid areas like char, river, sea and coastal areas that have little or no rail or road networks. The sample districts were Sirajganj, Narayanganj, Jamalpur, Kushtia, Manikganj, Noakhali, Patuakhali and Faridpur. The main sources of earning in those areas are farming, small business and salaried employment. This study aims to assess the impacts of mobile phones on household welfare in terms of income and women empowerment. Mobile phone plays an important role in establishing business communication across these areas, the survey report said. Having better amenities such as electricity or sanitary latrine increases the probability of mobile phone ownership. The report suggested for further investment in mobile network expansion making mobile phone technologies affordable to the poor. Expansion of mobile innovations could reduce communication bottlenecks in regions lagging behind and enhance the living standard of households, said the report. There are currently about 12.8 crore mobile phone subscribers, which is almost 80 percent of the country's total population.

http://www.thedailystar.net/business/female-employees-the-decline-1501456


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Source: http://www.thedailystar.net/business/mobile-phones-help-build-business-networks-survey-1501453

WOMEN LAG BEHIND MEN IN USE OF MOBILE MONEY: IFC STUDY Bangladesh has gender inequality in case of access to mobile financial services (MFS), as the female users of such services are almost half their male counterparts in the country, a study finds. Around 53 percent of men in Bangladesh have used MFS at least once in the past, compared to 27 percent of women, whereas some 19 percent of men have registered MFS accounts, compared to 6 percent of women. The findings of the study on Opportunities in the Female MFS Market in Bangladesh conducted by the International Finance Corporation (IFC) were shared at an event at Le Mridien hotel in Dhaka yesterday. The IFC, a member of the World Bank Group, organised the programme as part of the IFC and the central bank's joint initiative to financially include women through increasing MFS adoption. The partnership project is supported by the World Bank Group's Umbrella Facility for Gender Equality. As part of the study, 4,000 women were surveyed in all eight divisions. Of them, 2,000 are MFS-users and 2,000 non-users. Twenty-one focus group discussions took place with the presence of 155 respondents. Some 30 female MFS agents were interviewed. There has been significant growth in registered female users over the last four years. While the overall proportion of women with registered MFS accounts remains low, the annual growth rate of MFS registration among women has been high at 124 percent. Most users have not registered for MFS accounts. Registration for mobile financial services is even lower in rural locations, only 25 percent. The report said the female MFS market has shown remarkable growth and has excellent growth prospects. Based on a growth rate of 52 percent, some 33 percent of all adult women in Bangladesh would be registered MFS users by 2020. The study said the market growth can be accelerated through offering banking products through the mobile channel. MFS is perceived as a simple money transfer service, as 95 percent of women use the service to receive money while 82 percent send money through the channel, according to the study. Other usages include airtime top-up, savings, and utility bill payments. Most non-users indicate that they do not find MFS useful. A significant portion also cited lack of awareness or knowledge as a reason for non-use. This highlights the need for greater awareness and financial literacy. The study highlighted the gender gap in agent network: only 0.4 percent of agents in the market are female. The appointment of more women as agents can pull more women to the services, the study finds. Female users carried out three transactions in six months through male agents whereas the transaction number goes up to four when the agents are female. Customers who use female agents are likely to use mobile financial services more often. The majority of women surveyed noted that female agents are likely to be easier to approach compared to male agents. Female agents are more trustworthy, likely to be better in maintaining confidentiality, more likely to keep data secure, less likely to overcharge for any transaction, and agent outlet visit is preferred and approved by male family members, according to the report.

http://www.thedailystar.net/business/mobile-phones-help-build-business-networks-survey-1501453http://www.thedailystar.net/business/mobile-phones-help-build-business-networks-survey-1501453


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Women's access to agents is a crucial part in bringing more women under the digital delivery channel. The report said agent networks in rural areas are a barrier to MFS adoption: in urban areas, 99 percent of users walk to agent outlets. In contrast, in rural locations, 24 percent of users have to take public transport to reach an agent outlet. In focus group discussions, female MFS-users rated savings in time and hassle as the most attractive features in MFS, which highlight the importance of access points. Seven minutes is the median time taken for users to reach an agent outlet. In rural areas the time taken is 10 minutes, while in metropolitan, other municipal centres, and non-municipal centres it is 5 minutes. The report said addressing gaps in financial literacy can spur wider use of MFS among women. Gaps in financial literacy impede women, even current mobile money users, from making full use of the MFS value proposition. Only one out of 10 women MFS users know how to change their PINs and only two out of 10 women MFS users are aware of fees and costs of the mobile money. As financial access in Bangladesh is low, MFS can provide alternative delivery channels to reach underserved segments such as women, especially in areas where it would be unsustainable for bank branches, the IFC said in a statement. To enable the market to meet its potential, MFS providers would need to take targeted strategies for acquiring female clients. In his remarks, State Minister for Finance and Planning MA Mannan said the government has worked tirelessly to create an enabling environment for the financial sector's digital evolution. SK Sur Chowdhury, deputy governor of the BB, said the central bank values the international expertise that the IFC brings to the financial sector. Wendy Werner, IFC's country manager for Bangladesh, Bhutan and Nepal, and Sidsel Bleken, ambassador of Norway to Bangladesh, were also present. Source: http://www.thedailystar.net/business/women-lag-behind-men-use-mobile-money-ifc-study-1501450

AGORA AMEX CARD LAUNCHED City Bank and American Express have recently partnered with retail chain shop Agora to introduce a co-branded credit card -- The Agora American Express Card. The cardholders will get gift vouchers of Agora worth Tk 2,000 at the beginning. Customers will also get an exclusive 10 Aponjon reward points with every Tk 100 purchase at Agora superstores. Other benefits include yearly renewal gift vouchers, additional gift vouchers upon reaching a certain spending limit and Agora Aponjon Reward points while shopping at stores all over Bangladesh and abroad. The card users can also get shopping and dining offers at premium retailers and restaurants at home and abroad similar to any other American Express Card. Mohammed Shoeb, chairman of City Bank; Sohail RK Hussain, CEO; Sanjay Rishi, regional president for international business development of One India & Network Partnerships, South Asia and Australia at American Express; Niaz Rahim, chairman of Rahimafrooz Superstores Ltd, the owning company of Agora, and Farhad F Ahmad, CEO, were also present at the launch of the card at the bank head office yesterday. The Agora American Express Card will reward our card members with every spending and enhance their shopping experience. Grocery shopping has become a significant part of our everyday lives and this card will make it hassle-free and more rewarding, said Shoeb. Today marks a new milestone for American Express & City Bank as we partner with Agora, one of the leading upscale retail chain stores in Bangladesh. The Agora American Express Card will resonate

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strongly with customers and enable better shopping and lifestyle experience as Agora's customer profile are similar to our target audience, said Rishi. This card is the result of such priorities. By using this card, our valued customers can enjoy a unique experience and go beyond their expectations, said Farhad F Ahmad. Source: http://www.thedailystar.net/business/agora-amex-card-launched-1501423

AZAD NEW JANATA BANK CEO Md Abdus Salam Azad has recently been appointed chief executive and managing director of Janata Bank, the state-owned bank said in a statement yesterday. Prior to the appointment, he was the bank's deputy managing director. Azad also served as the deputy managing director of Bangladesh Krishi Bank. He started his banking career in 1983 as a senior officer at Janata Bank. He got his masters degree from the University of Rajshahi. He attended various workshops, seminars and received training at home and abroad. Source: http://www.thedailystar.net/business/azad-new-janata-bank-ceo-1501417

BANGLADESH CAN MAKE ROBOTS LIKE SOPHIA Bangladeshi developers can build modern robots like Sophia using its software, said the manufacturer of the humanoid robot at a session of Digital World expo in Dhaka yesterday. All of our software is placed on open platforms and Bangladeshi developers can use those resources if they want to build robots, said David Hanson, founder and chief executive officer of Hanson Robotics. The Hong Kong-based robotics company, which also works on artificial intelligence, developed Sophia one and a half years ago. Capable of chatting, smiling and even telling jokes as per media reports, the humanoid robot garnered attention around the world recently. It is based on state-of-the-art innovations in artificial intelligence, visual data processing and facial recognition. Saudi Arabia, a conservative Muslim country, even provided citizenship to the robot, which uses voice recognition technology from Alphabet Inc, the parent company of Google, and is designed to get smarter over time. Sophia's intelligence software was designed by SingularityNET. Both Sophia and its creator attended a session titled Tech-Talk with Sophia and answered questions from a packed audience at Bangabandhu International Conference Centre. Sophia expects that Bangladeshi developers would be able to manufacture social robots in the near future. It said, after more robots are developed in the coming years, there would be new dimensions in the job markets while artificial intelligence would also create new opportunities. Some traditional jobs will vanish over time and new opportunities will be created, Sophia responded to a question from Zunaid Ahmed Palak, state minister for ICT. The robot came wearing a yellow Jamdani kameez and it described the clothing as the most attractive one. This is Jamdani and I know this is a patent of Bangladesh, said the robot. Sophia said Bangladesh was very well known for readymade garments and now it was moving towards digitisation. The programme was to last for two hours but it was closed in half an hour as the organisers were finding it hard to manage the crowd. Around 2,000 visitors were scheduled to attend but over 5,000 arrived. There was also a lot of commotion. Hanson, who took three and a half years to build Sophia, said robots would soon be walking around with people.

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Within the next five years social robots will walk around us and robots like Sophia will be our friend, added Hanson, who also developed 13 robots similar to Sophia. Designers are now developing robots with an empathetic body movement, he said, adding that the industry was moving to feature technologies that would be helpful. During the inauguration, Prime Minister Sheikh Hasina also talked with Sophia. The robot said to have known the premier as a daughter of the Father of the Nation -- Bangabandhu Sheikh Mujibur Rahman. About Bangladesh's digitisation process, Sophia said she learned about the vision of Digital Bangladesh and a digitalised Bangladesh would have more developed human resources and ensure better e-governance. Syed Gousul Alam Shaon, managing director of Grey, the advertising agency that brought Sophia here, anchored the show. Islami Bank Bangladesh Ltd sponsored the robot's visit to Dhaka. Source: http://www.thedailystar.net/business/bangladesh-can-make-robots-sophia-1501462

TOFAIL ASSURES SAUDI DELEGATION OF BETTER BUSINESS CLIMATE Commerce Minister Tofail Ahmed on Wednesday told a high-level Saudi business delegation that Bangladesh is 100 per cent safe for investment, and investors including the ones from the Saudi Arabia can draw their money back any time they like. The minister said this during his speech as a chief guest in a business seminar, organised by the Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) with the delegation in a city hotel. Tofail said, Bangladesh is a profitable place for investment now and 100 special economic zones are being constructed in different places of the country. Many countries including China, Japan, Korea have decided to invest in these zones, he said in his speech. The minister also added that, Bangladesh government has declared attractive opportunities for the investors from both home and abroad. Any investor now can invest 100 per cent and pullout the invested money along with interest any time, he elaborated. Bangladesh is enjoying duty-free and quota free opportunity from the developed countries by dint of its LDC status and investing companies can enjoy this benefit on exporting their products produced in Bangladesh. Bangladesh government will provide all sorts of assistance for this, assured Tofail Ahmed. Many countries used to criticize Bangladesh once. Now Bangladesh is constructing the Padma Bridge on its own funding. Bangladeshs economy is now more powerful than past and many other countries of South Asia, said the minister. FBCCI President Md. Shafiul Islam Mohiuddin was also present in the seminar among others. Moshabab Abdullah Alkatani, Executive President of International Marketing Investment Company Group Ltd led the 21-member delegation. Source: http://www.daily-sun.com/post/273600/Tofail-assures-Saudi-delegation-of-better-business-climate

BUSINESSES, MAINLY RMG, ENJOY TK 34,880CR DUTY BENEFIT IN FY17 Export-oriented industries enjoyed tax exemption worth Tk 34,880 crore in import of raw materials in last fiscal year of 2016-2017 under the bonded warehouse benefit offered by the National Board of Revenue. The amount is more than 77 per cent of total customs duty of Tk 45,193 crore collected in the year. Readymade garment industries availed the highest 96 per cent or Tk 33,612 crore in exemption in taxes and duties through duty-free import of raw materials in the year.

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Under the bonded warehouse facility, 100 per cent export-oriented industries enjoy duty-free raw materials import on condition that they will export finished goods produced using the raw materials. Tax exemption at the import stage to the industries rose by 129 per cent in last nine years since the FY 2008-2009 when the total value of exemption was Tk 15,224 crore, according to available data of the revenue board. Bond licence holding factories availed tax exemption worth more than Tk 30,000 crore in the FY 2015-2016. Currently, there are 4,909 active bond licensees in the country. Of them, 2,847 are from the RMG sector and the remaining 2,062 are from other sectors. Officials of the revenue board said that the amount of exemption had been rising following higher import of raw materials by the industries led by growth in export earnings. The amount of exemption will rise in future as the revenue board has offered the benefit for all factories located at the economic zones, they said. The NBR is also considering offering the benefit to some other 100 per cent export-oriented industries, they added. The NBR in 1980 first offered bonded warehouse facility to the RMG sector. Later, the benefit was extended to some other 100 per cent export-oriented industries and deemed exporters like factories located at export processing zones, RMG accessories including plastic and carton, paper board, leather and footwear, shipbuilding, light engineering and some other sectors. The revenue board is also considering offering the benefit to some other 100 per cent export-oriented industries to facilitate the sectors to grow in export market, officials said. It also offered duty-free raw materials import facility both for export-oriented and domestic market-oriented factories located at the economic zones of the Bangladesh Economic Zone Authority to facilitate employment generation and economic growth, they said. They said that the amount of exemption would be higher if the benefits offered to other exporting industries were taken into consideration. Exporting industries, except 100 per cent export-oriented ones, have to pay tax during import of raw materials. But they get back the paid tax in the form of duty drawback from the NBR. According to a report prepared by Policy Research Institute chairman Zaidi Sattar using the NBR data, total value of bonded import was Tk 50,060 crore in the FY 2016-2017. Businesses would have to pay Tk 34,880 crore in duty and taxes applicable on regular import if there was no bonded facility. Of the amount, the RMG sector alone enjoyed Tk 33,612 crore in import duty exemption against import of RMG inputs like fabrics, yarn and accessories worth Tk 47,795 crore. The footwear sector enjoyed tax exemption worth Tk 47 crore on import of shoe lasts and soles, finished leather, buckles and hooks while the other sectors enjoyed Tk 1,221 crore in exemption against import of paper and paper board, plastic packing materials, adhesive plates, polymers or ethylene, fruits and nuts. Source: http://www.newagebd.net/article/29897/businesses-mainly-rmg-enjoy-tk-34880cr-duty-benefit-in-fy17

SAUDI BUSINESSES URGED TO INVEST IN ANY EZ OF BANGLADESH Bangladeshs businesses on Wednesday urged Saudi businesspeople to invest in the countrys potential sectors in economic zones where a range of facilities are available for the overseas investors. They made the call while speaking at a Bangladesh-Saudi Arabia business meeting organised by the Federation of Bangladesh Chambers of Commerce and Industry in Dhaka. A 21-member Saudi business delegation led by International Marketing Investment Company Group president Moshabab Abdulla Alkahtani was present in the meeting.

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Bangladesh ambassador to Saudi Arabia Golam Moshi, Bangladesh Investment Development Authority executive chairman Kazi M Aminul Islam, FBCCI first vice-president Sheikh Fazle Fahim and vice-president Md Muntakim Ashraf spoke, among others, at the discussion. Commerce minister Tofail Ahmed said that investors could set up special economic zone in the EZs in Bangladesh taking the lucrative offers provided by the government. He said, We can reduce the trade gap with Saudi Arabia by diversifying our export basket and increasing the quantity of export. In the fiscal year 2016-17, Bangladesh exported products worth $185.21 million to Saudi Arabia against import of $605.40 million from the country. FBCCI president Md Shafiul Islam Mohiuddin said Saudi Arabia is one of the leading development partners of Bangladesh, particularly through generous hosting of a significant number of Bangladeshi expatriates. He said Saudi Arabia has become a major source of financing and economic aid for Bangladesh, and the country has also become an important trade and investment partner. He said in last one decade trade between Bangladesh and Saudi Arabia has been gradually increasing and now total trade between the countries stands at $790 million. So far, Saudi Arabia has invested in the banking and finance sector of Bangladesh, which could be expanded to other potential sectors, Mohiuddin said. After the inaugural session, business entrepreneurs from both the countries met at Business 2 Business meeting to discuss issues of their interest. A memorandum of understanding was signed at the meeting between the FBCCI and Alfanar Energy, a leading manufacturer and construction company of Saudi Arabia, for establishment of a 40 to 100 MW solar power plant in Bangladesh. Source: http://www.newagebd.net/article/29900/saudi-businesses-urged-to-invest-in-any-ez-of-bangladesh

FACE REGULATORY ACTION UNLESS BANK GUARANTEE RENEWED Bangladesh Telecommunication Regulatory Commission has warned that it would encash performance bank guarantees of different telecommunication service providers and take legal actions against the licensees if they fail to renewal or reissue their PBGs. On November 30, 2017, the telecom regulator issued a notification in this regard, asking all of its licensees to renew or reissue their PBGs before one month of their (PBGs) expiry. The notification issued by its director MA Taleb Hossain specifically addressed all the international gateway, interconnection exchanges, broadband wireless access, nationwide telecommunication transmission networks, vehicle tracking, internet protocol telephony and internet service providers. Submitting PBG to the BTRC is a must for an entity under the licencing guidelines and conditions, it said. Renewal, re-issuance or issuance of new PBG is also a must for an entity before one month of the guarantees expiry, it said. The telecom regulator in its directive also warned of regulatory actions against the licensees who would fail to submit PGB within the stipulated time, the BTRC official said. An official of the commission said the PBG allows the regulator to recover any dues in case of non-payment by the BTRC licensees in time. Besides, the commission also encash the bank guarantee as regulatory action, the BTRC official said. Source: http://www.newagebd.net/article/29901/face-regulatory-action-unless-bank-guarantee-renewed

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STOCKS DROP AMID YEAR-END JITTERY Dhaka stocks dropped on Wednesday after gains in the previous session as investors preferred profit taking share sales amid cautiousness as year closure is approaching. The key index of Dhaka Stock Exchange, DSEX, increased 0.32 per cent, or 20.45 points, to close at 6,266.29 points on the day after gaining 23.98 points in the previous session. In line with the previous session, the market opened with bullish trend that did not sustain for long as investors went on share selling during last hour of the session, market operators said. Investors appeared unsettled on the trading floor as the year closure is approaching that instigated a section of investors to take out profit before any unexpected loss, they said. The market returned to negative as share prices of telecommunication and banks faced profit taking sales pressure on the day, declining by 1.2 per cent and 0.9 per cent respectively after their previous gains. Out of 30 traded bank scrips, 24 issues declined, just 4 advanced and two remained unchanged. Average share prices of non-bank financial institutions and engineering also declined marginally. Among the prominent scrips, share prices of Grameenphone, BRAC Bank and Investment Corporation of Bangladesh led the negative session on Monday. On the other hand, share prices of cement, pharmaceuticals and food gained by 1.0 per cent, 0.7 per cent and 0.1 per cent respectively that saved the market from further fall. Square Pharmaceuticals, British American Tobacco and Marico Bangladesh were the highest positive index mover of the day. Moreover, some of the investors remained on the sideline to watch the next move of the market since the year closing is approaching, they said. Therefore, turnover of the bourse, an important indicator of the market participation, declined little to Tk 584.80 crore compared with Tk 648.03 crore in the previous session. Of the 332 companies and mutual funds traded, 172 declined, 113 advanced, and 50 remained unchanged. Investors exerted profit booking sales pressure especially on the stocks from Telecommunication, Banks and Financial Institution sectors that continued the plummeting tendency of market index from the earlier part of the session, said EBL Securities in its daily market commentary. DS30, the blue-chip index of DSE, also dropped 0.28 per cent, or 6.58 points, to finish at 2,271.47 points. Shariah index, DSES, inched down 0.004 per cent, or 0.06 points, to close at 1,390.81 points. Square Pharmaceuticals led the turnover chart on the day with its shares worth Tk 38.33 crore changing hands. Golden Harvest Agro Industries, BD Thai, Premier Cement, Grameenphone, Paramount Textiles, City Bank, Zaheen Spinning, Confidence Cement and LankaBangla Finance were the other turnover leaders. CAPM BDBL Mutual Fund increased the most with a 7.31 per cent rise in its share prices, while Western Marine Shipyard was the worst sufferer on the day, shedding 11.79 per cent. Source: http://www.newagebd.net/article/29896/stocks-drop-amid-year-end-jittery

NOW NRB COMMERCIAL BANK MD GETS HIS MARCHING ORDERS The central bank ordered Wednesday the removal of NRB Commercial Bank Managing Director (MD) and Chief Executive Officer (CEO) Dewan Mujibur Rahman on charges that include wrongful lending. In a further punitive measure, he is also barred from taking job in any banks for two years from now on. "We've removed the NRB Commercial Bank's MD along with the imposition of a bar on his taking

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employment, directly or indirectly, at any bank for a period of two years," said Subhankar Saha, a spokesperson for the Bangladesh Bank (BB). Mr. Saha, also executive director of the BB, told the FE that the central bank had already sent the orders to the authorities concerned of the bank for taking action. BB Governor Fazle Kabir issued the marching orders of the chief executive of the bank of non-resident Bangladeshis as per recommendations made by the central bank standing committee. The BB's standing committee had recommended the removal of the NRB Commercial Bank Limited (NRBCBL) MD and CEO as his (Rahman's) statement was not accepted by it, according to another BB official. The central bank earlier had formed the four-member standing committee, headed by its Deputy Governor Abu Hena Mohd Razee Hassan, to hear the MD's representations regarding his alleged involvement in different loan-sanctioning irregularities and other wrongs. In October last, the central bank served a notice on Mr. Rahman asking him to attend a personal hearing as his explanation against the show-cause notice issued on March 20 this calendar year failed to satisfy the BB authorities. The BB notice had carried 10 counts of charges, including sanctioning loans by violating rules and regulations, signature forgery, interference of outsiders in the board, and corruption, according to the central bankers. All the irregularities were inter-linked and took place with the involvement of the board and the management. As MD and CEO, Mr. Rahman never informed the central bank about the irregularities, the show-cause notice reads. In the notice, the BB had also asked him why the central bank should not remove him from the post of NRB Commercial Bank MD and CEO in line with Article 46 of the Banking Companies Act 1991. If he felt aggrieved by the action of the central bank, issued under Section 46 of the Bank Companies Act 1991, he may appeal to the Board of Directors of BB against the orders. The BB found out that the directors of the NRBCBL and other parties were involved in irregularities in the sanctioning of loans worth around Tk 7.0 billion in breach of rules and regulations. The central bank inspections carried out between June and December last calendar year found that four of its directors -- all non-resident Bangladeshis (NRBs) -- were shown present at board meetings in 2013-2016 though they were actually abroad at that time. Earlier on December 29 last year, the central bank had appointed an observer to the NRBCBL for improving its financial health through ensuing good governance in the bank. The NRBCBL started its journey on April 02, 2013 with Tk 10 billion as authorized capital. This happens to be a latest event of top-level changes in a number of banks, and close on the heels of shakeup in the management of Farmers Bank. Source: http://today.thefinancialexpress.com.bd/first-page/now-nrb-commercial-bank-md-gets-his-marching-orders-1512583613

EVERY DISTRICT TO GET HIGH-TECH PARK: PM Prime Minister Sheikh Hasina said on Wednesday the government will set up one high-tech park in every district to flourish the ICT sector, reports UNB. "Necessary incentives will also be given if the investors come up to invest in this sector in proposed 100 economic zones across the country," she said. The Prime Minister said this while inaugurating a four-day Digital World - an ICT exposition-at Bangabandhu International Conference Centre with the slogan 'Ready for Tomorrow'. The ICT Division in collaboration with Bangladesh Association of Software and Information Services (BASIS) organised the exposition. Sheikh Hasina called upon all to work together to build Sonar Bangla as dreamt by Father of the Nation through turning the country into a welfare oriented, peaceful, knowledge and science-based

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digital one. The PM said the dream she and her party had showed the country's people before the 2008 general election to make Digital Bangladesh is now a reality. The Prime Minister said people are now availing of 200 types of government services through mobile apps sitting at home. Hasina said the government has taken steps to take the government services to the doorsteps of people through reducing the prices of internet bandwidth, development of infrastructure and reducing the prices of digital equipment to remove the digital divide. She said an opportunity of a new industrial revolution has been opened for the country with the flourishing information technology and Bangladesh could play a leading role as it has huge number of young people which is the main element of industrial revolution. Hasina said although the number of work force is decreasing in the developed world for the use of information technology but the age of 65 per cent people of Bangladesh is under 35. The government has already taken multifaceted projects to turn the huge young force capable and suitable for the challenge using the demographic dividend of the country. The Prime Minister said the prices of mobile sets and call rates have been reduced remarkably when her government in 1996 broke the monopoly of mobile phone sector by giving licences to a number of companies."At the same time, the services reached the remote areas of the country." She said her government set up union digital centres in 2010 which were extended to municipal and city corporation levels in 2013 and 2014. Information services were made easily accessible to all through introduction of the biggest web portal with 25,000 government websites, she added. Mentioning that her government is trying to make the young generation self-reliant by engaging them in freelancing, the Prime Minister said Bangladeshi freelancers attain the second position and will retain the top position soon. Hasina said her government reduced the price of internet bandwidth to Tk 500 to Tk 1000 from Tk 76,000. "With the connectivity of the second submarine cable and giving international terrestrial facility to private sector, the internet services have marked a rise by 10 times," she said. The PM said her government made the ICT education compulsory at the secondary level from 2011 and supplying computers and other necessary materials free of cost alongside setting digital classrooms. Hasina said training programmes on ICT have been expanded across the country as about 50,000 youths are being given skill development training. She said about 10,000 ICT graduates are coming out every year from universities and they have been able to attract the eyes of the world community. Source: http://today.thefinancialexpress.com.bd/first-page/every-district-to-get-high-tech-park-pm-1512583674

DHAKA TO SEEK RELAXATION OF PROCUREMENT CONDITIONS Bangladesh will seek relaxation of the conditions attached to procurement of goods and services under the US$ 4.5 billion Indian line of credit-III (LoC-III) at a review meeting to be held later this month in New Delhi. It would be difficult for the country to procure at least 75 per cent of goods, services or works of a project from India as per the credit condition, said officials at the Ministry of Finance (MoF) Wednesday. So, Bangladesh will seek waiver of that particular condition at the meeting scheduled for December 19-22, they added.

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A Bangladesh team, headed by an additional secretary of the Economic Relations Division (ERD), will take part in the meeting that would review the progress of the latest LoC-III as well as the first and second ones worth $862 million and $2.0 billion respectively. The meeting would also evaluate the implementation progress of the remaining projects under the LoC-1 and all 14 projects under the LoC-II and suggest measures for removing the obstacles to their implementation. An official at the MoF pointed out some relaxation of conditions in relation to procurement (case-to-case basis) of goods and services for projects under the ongoing LoC-I and LoC-II. He, however, said the exemptions were not applicable for the LoC-III. "Our project implementing agencies informed us that they have already faced massive hurdles as they tried to procure 75 per cent of goods or services or works from the Indian market," he said. "In case of some projects, Bangladesh needs to procure bricks, sand, steel, rod and cement. But those purchase from the Indian market will not be viable for the civil works," he told the FE, requesting anonymity. Another official at the MoF said the issues concerning the progress of projects under the LoC-II and the newly signed LoC-III are likely to dominate the review meeting as some of the projects were facing hurdles in the approval stage from the Indian side. Some of the projects were also facing difficulties in meeting the procurement conditions, eventually affecting their execution, he said. Bangladesh has taken up 14 projects under the LoC-II and 17 others under the LoC-III, officials said. The government signed an agreement with Indian EXIM Bank for the $2.0 billion LoC-II in March 2016 and the $4.5 billion LoC-III in October this year. Earlier, Bangladesh had taken 15 projects under the LoC-I after confirming it in August 2010. The MoF official said they would request New Delhi to expedite the project approval and loan disbursement process for all the projects under the LoC-II and LoC-III. "We hope the review meeting will remove all the complexities to facilitate execution of the projects," he said. The Indian credit bears an interest rate of 1.0 per cent with 0.5 per cent commitment fee. It will have to be repaid in 20 years with five years of grace period. Source: http://today.thefinancialexpress.com.bd/first-page/dhaka-to-seek-relaxation-of-procurement-conditions-1512583761

BD ECONOMY MAY GROW 7.1PC, BUT RISKS REMAIN Bangladesh economy may grow by 7.1 per cent this fiscal year, says a UN agency forecast that little lowers government projection. The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) unveiled the projection in its flagship report titled 'Economic and Social Survey for Asia and the Pacific 2017'. The year-end update of the report was released Wednesday in Bangkok. It, however, listed a set of risks, including the Rohingya crisis, which could come out as upsets in the prospects for growth. "Bangladesh ended fiscal year 2017 exceeding earlier forecasts as well," the report said. "Despite a slowdown in exports and remittance inflows, it grew by 7.2 per cent in fiscal year 2017, which is its best performance in a decade, supported by the manufacturing, services and agricultural sectors," it added. According to the final estimation of Bangladesh Bureau of Statistics (BBS), country's gross domestic product (GDP) growth rate stood at 7.28 per cent in FY17. "The momentum is expected to continue in 2018 on the back of strong domestic demand and infrastructure investments," according to UNESCAP.

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The government has set a target to achieve 7.40 per cent growth in the current fiscal year. The World Bank lowered projected growth rate to 6.40 per cent while the Asian Development Bank (ADB) put it at 6.9 per cent and the International Monetary Fund (IMF) at 7.0 per cent. The report also projected that annual inflation rate would be 5.5 per cent in the current fiscal year, a little up from 5.4 per cent in the past fiscal year. "In Bangladesh inflationary pressures eased towards the end of the fiscal year as global oil prices stabilised, non-food inflation declined and food inflation was kept at bay due to a decent harvest in the agricultural sector," it explained. Focusing on infrastructure, the report referred to the report of Global Infrastructure Hub which showed that infrastructure-investment shortfalls would range from 4-7 per cent of GDP in Cambodia, Myanmar and Pakistan to 1-2.5 per cent of GDP in Bangladesh, India, Russia and Vietnam. The UN agency, ESCAP, also pointed out that actual tax-collection levels were below their potential in 17 Asia-Pacific economies (for which data were available). "Such tax gaps were estimated to be more than 6 per cent of GDP in Afghanistan, Bangladesh, Bhutan, Islamic Republic of Iran and the Maldives," it added. In fact, the gap is estimated 7.5 per cent for Bangladesh--the highest among the 17 nations. The report mentioned that economic conditions in the Asia-Pacific region remained stable, supported by stronger-than-expected performances in some of the region's larger economies and steady performance in most smaller ones. "Stronger-than-expected performance in large economies, such as China, and steady performance in smaller ones, such as Bangladesh, Malaysia and Thailand, are likely to lead to a higher average economic growth rate in the region for 2017 compared with that for 2016," it added. The UNESCAP, however, cautioned that deepening inequalities and domestic financial vulnerabilities in some economies, along with a high number of climate-change-induced natural disasters in the region, however, may overshadow the outlook for economic growth and the prospects for sustainable development. Among other risks for Bangladesh, the UN body mentioned the ongoing Rohingya crisis. It observed that higher inequality and domestic financial vulnerabilities in some countries, geopolitical developments in the Korean peninsula, the Rohingya-related crisis in Myanmar and a high number of climate-change-induced natural disasters are risks casting their shadow not only on the outlook for economic growth but also on the prospects for sustainable development. "Myanmar is currently undergoing a crisis that has led more than 500,000 Rohingya Muslims to flee into Bangladesh," it added. The report highlighted that domestic private consumption remained main driver of economic growth, facilitated by relatively low inflation, low interest rates and robust consumer confidence. "Stronger exports also contributed to the recent uptick in economic growth," it observed. "The average GDP of developing economies in the region is expected to grow by 5.4 per cent in 2017." Source: http://today.thefinancialexpress.com.bd/first-page/bd-economy-may-grow-71pc-but-risks-remain-1512583826

DSE LARGELY LIES 'INEFFICIENT', NOT IDEAL FOR QUICK RETURNS Bangladesh's prime bourse, Dhaka Stock Exchange, remained largely inefficient and not an ideal ground for small investors to book short-term returns, researchers said. Their observations about an unfriendly environment for common investors on the country's main bourse came at a conference arranged in the capital Wednesday by official development-policy-analyst BIDS, with its focus on the financial market. Experience since the 1980s show that if one invests in DSE only for a longer term, then they will be able to reap some good returns, they said.

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But, for those who are small investors looking to get frequent returns this market is not suitable, they said during the two-day meet on BIDS Research Almanac. Analysing the historic average rate of return and volatility of Dhaka's stock market, the researchers showed that investors in DSE are usually compensated with higher returns for bearing higher levels of risk. "When it comes to predictability of return, we found that returns do not follow random walk and daily return is predictable to some extent," said Siban Shahana, Research Associate of BIDS. "Again, when it comes to market efficiency, the diagnostic tests reject the assumption of random walk which implies that DSE as a market is inefficient," she added. The researchers also found that the unweighted daily rate of return on DSE is about 0.0034 per cent which is equivalent to about 1.25 per cent per annum for the period of 1991 and 2015. The 2000s was decade of high return (0.04 percent) while the last five years had been the worst (0.06 percent), the bourse postmortem showed. Another research paper done by Member of the Planning Commission Professor Dr. Shamsul Alam, Kazi Iqbal of BIDS and Paritosh K Roy of ISRT found that increased access to banking services usually leads to higher poverty reduction. Based on a countrywide mapping of banking services, the researchers found that the presence of banking services in the grassroots areas usually generates increased amount of deposits from the rural population. "However, it is also notable that such increased grassroots presence of banking services does not necessarily lead to increased amount of credits," Kazi Iqbal of BIDS said about the discrepancy. In addition, another research work by Monzur Hossain of BIDS and Hussain Samad of the World Bank found that increased penetration of mobile phones can lead to an income boost for the people in off-grid rural areas. "People use mobile phones for enhancing their income from livestock, poultry and fisheries by using it as channels for the marketing of products while it also helps them eliminate their travel costs and save their time," Monzur Hossain of BIDS told the conference. Source: http://today.thefinancialexpress.com.bd/first-page/dse-largely-lies-inefficient-not-ideal-for-quick-returns-1512584031

THRUST ON BUILDING FINANCIAL ECOSYSTEM Experts have stressed the need for building a financial ecosystem which will provide one stop banking solutions for the first time in Bangladesh They said the ecosystem based on the current challenges on the financial sectors will solve the fundamental issues and help massive expansion of financial services to rural area. The opinions came in a road-show, arranged by M2M Group in The Westin Hotel Dhaka recently. Commerce Minister Tofail Ahmed, MP, was the chief guest while Hosne Ara Begum, ndc, Managing Director, Hi-Tech Park Authority, Government of Bangladesh was the special guest. Top functionaries of 45 private and public banks in Bangladesh, local prominent businessmen and high government officials attended. M2M Group is bringing state of the art technology partnership with Technomedia Limited and Vibrant Bangladesh to build a financial ecosystem which will provide one stop banking solutions for the first time in Bangladesh, said a statement. Vibrant Bangladesh is building the ecosystem based on the current challenges on the financial sectors which will solve the fundamental issues and helping massive expansion of financial services to rural area. Currently more than 300 entities run M2M solutions for issuing, acquiring and securing their multi-channel e-transactions in more than 50 countries. MX Payment leverages over 30 years expertise in the payment industry worldwide.

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It combines extensive functional coverage and high-performance capabilities to provide banks, retailers, telecom operators and payment processors advanced reliability, enhanced profitability and applied innovation. They use the group solutions to manage innovative services of greater diversity and to process higher transactions volumes across more platforms and geographies More than 320 experts and consultants with supplier partners and integrators worldwide, M2M can fulfill client's needs regardless of origins and location. Mr. Mohamed Moukhlis, General Manager, Business Development, M2M Group demonstrated other e-services like transportations and education along with central e-government services which they have deployed in Europe, Asia, Africa and now implementing in South America. He strongly believes, this services can be integrated with other mutualised platform in Bangladesh to boost up government e-services like others countries. Mr. Mohamed Touhami Elouazzani, General Manager, Global Markets and partnerships, M2M Group outlined the fact that, the trends of electronic payments is targeting the support of government and financial institutions to grow financial inclusion. One of the high priority of M2M Group is to have an inclusive approach integrating traditional players and FinTech's to answer the need of the clients into the financial ecosystem in Bangladesh. Mr. Joshoda Jibon Debnath, Managing Director, Technomedia Limited presented the key banking solutions of the last one decade including cheque-book printing, money loading to ATM, CDM services, fully-managed services for ATM accounting for 65 per cent ATM market share in Bangladesh. He also presented Technomedia's vision to build a real financial ecosystem for banking clients. Source: http://today.thefinancialexpress.com.bd/stock-corporate/thrust-on-building-financial-ecosystem-1512578061

EXIM BANK LAUNCHES APPS-BASED EWALLET BANKING SERVICE EXIM Bank has formally launched mobile Apps-based eWallet Banking Service to generate more transactions reducing their customers' time and energy. While conducting transactions with the EXIM Bank, the Apps users will also be able to transfer funds into the accounts opened with other banks. Dr. Mohammed Haider Ali Miah, managing director of EXIM Bank, Wednesday formally launched mobile Apps based banking service at the bank's head office in the capital Dhaka. The managing director also launched EXIM Shefa, a monthly mudaraba savings scheme account service, to ensure medical treatment services for general people in critical time. Apps Banking is an application that resides on a smart phone, under which clients operate their bank accounts round the clock. Using the Apps launched by EXIM Bank, the customers will be able to conduct transactions through their accounts opened with EXIM Bank in 24 hours of the day. "The EXIM Bank has good reputation of its products and services. We have already got huge response to our two new products such as EXIM Shefa and EXIM Wallet," Haider Ali said in his speech. While conducting transactions, the EXIM Bank's menu based application program will secure transmitted data and almost every handset can support this feature. Using the Apps, the users will get visual direction to locate ATM booths and branches. As a result, a user having no idea about a new area will be able to locate the nearest ATM booths and bank branches through Google Map and street view service. The EXIM Bank authority has also ensured strong security in its Apps banking system through firewall, device ID, PIN number and One Time PIN (OTP).

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When a transaction will be done, the authorised customer will receive an alert message. If the customers lose their mobiles, they can call to the bank to block this service instantly. By opening monthly Mudaraba Shefa Saving Scheme Account with EXIM Bank, someone will be able to deposit up to Tk 50,000 in a single account. The tenure of the accounts will be three years, five years and eight years. The returns on deposits will be between 6.0 per cent and 11 per cent in accordance with the type of accounts. "The depositors will be allowed to withdraw money at any critical time to meet the expenses of medical treatment," said Haider Ali, the managing director of EXIM Bank. Other top officials of the EXIM Bank were present while launching EXIM Wallet service and EXIM Shefa product. Source: http://today.thefinancialexpress.com.bd/stock-corporate/exim-bank-launches-apps-based-ewallet-banking-service-1512578110

PUBLIC SUBSCRIPTION OF CAPM IBBL MF TO BEGIN DEC 10 The initial public offering (IPO) subscription of CAPM IBBL Islamic Mutual Fund, a closed-end mutual fund, is set to begin December 10 which will raise Tk 300 million through IPO from the general public. The IPO subscription of the mutual fund will be opened till December 18 for resident and non-resident Bangladeshis. The securities regulator -- Bangladesh Securities & Exchange Commission (BSEC) approved the draft prospectus of CAPM IBBL Islamic Mutual Fund on September 26. The size of CAPM IBBL Islamic Mutual Fund will be Tk 800 million. Of the fund's total size, Tk 500 million financed by Islami Bank Bangladesh, the sponsor of the mutual fund. Remaining Tk 300 million will be collected through initial public offering (IPO), according to the prospectus. The Shariah based closed-end mutual fund with definite life & limited size which might be increased through complying securities & exchange commission (mutual fund) rules 2001. A market lot is 500 units with a face value of Tk 10 per unit and an investor needs Tk 5,000 to apply for per lot. The required amount (per lot) of foreign currency for NRBs and foreign applicants for IPO are US$ 62 or GBP 46.83 or EUR 52.74, according to Dhaka Stock Exchange (DSE). The objective of the fund is to generate attractive risk adjusted returns and disburse competitive dividend to the unit holders in the long-run by investing in a diverse arena of Sharia'a compliant eligible equity and debt securities of Bangladesh capital and money market. Capital & Asset Portfolio Management Company is the fund manager, while Investment Corporation of Bangladesh (ICB) is the trustee and custodian of the CAPM IBBL Islamic Mutual Fund. A mutual fund is a professionally managed collective investment scheme that pools money from many investors and invests it in stocks, bonds and short-term money market instruments. Presently, 36 closed-end mutual funds are listed on the Dhaka Stock Exchange (DSE). Source: http://today.thefinancialexpress.com.bd/stock-corporate/public-subscription-of-capm-ibbl-mf-to-begin-dec-10-1512578134

WORLD BANK TO SUPPORT THE MAIN BOURSE The World Bank (WB) has shown interest to be strategic partner of the Dhaka Stock Exchange (DSE) as part of completing the exchange's demutualisation process. The World Bank expressed its interest at a meeting held with the DSE management on Tuesday. A joint team of World Bank and International Finance Corporation (AFC) conducted discussion with the securities regulator and DSE.

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The discussion came as part of their mission started in June, 2017 in eight countries, including Bangladesh, for the development of capital markets. "During the discussion at the Tuesday's meeting, the World Bank expressed its interest to be strategic partner of the premier bourse," a DSE source said. In its reply, the DSE told the World Bank that the timeframe of inclusion of strategic partner is yet to cross the deadline. So, the discussion can go on, the DSE source said quoting the meeting participants. A top DSE official said the World Bank wants to take part in development activities of the premier bourse DSE. "They have shown interest to extend support to the DSE in capital market development," the DSE official told the FE. The objective of the World Bank and IFC's joint mission is to work with derivatives, bond and central counter party (CPP) along with formulation of corporate governance guideline. Besides, the mission also wants to work jointly with Asian Development. The country's premier bourse turned into a demutualised stock exchange on November 21, 2013. According to the demutualised scheme, the DSE consists of above 1.80 million shares of Tk 10 each totaling above Tk 18.03 billion as paid-up capital of the entity. As per the demutualisation scheme, the DSE will have to float its 25 per cent shares to strategic investors. On December 9, 2015, the securities regulator directed the DSE to get strategic investor within a year as per the Demutualisation Act, 2013. The commission later extended the deadline to March 31, 2018 following a plea from the DSE. A number of foreign financial organisations and local firms earlier showed interest in investing in the DSE to become its strategic investors. A consortium of World Bank Group's International Finance Corporation, German Development Bank KfW, Commonwealth Development Corporation, US-based NASDAQ, Sweden-based Brummer & Partners and Bangladeshi Square Group expressed primary interest to be the strategic partners. The local companies which have also showed interest to be strategic partners are Southeast Bank, One Bank and LankaBangla Finance. But the securities regulator said the domestic companies will not be allowed to be strategic partner if they don't have qualifications regarding the bourse's further progress. As per the demutualisation scheme, the board of the demutualised exchange will comprise of 13 members. The DSE board will consist of seven independent directors, five shareholder-directors, including one foreign strategic investor, and the chief executive officer who will have voting rights. Presently, the post of strategic partner remains vacant and it is running on 12 members. Each of the 250 DSE members is entitled to get more than 7.2 million ordinary shares of Tk 10 each. The DSE shareholders primarily got 40 per cent of their stakes along with receiving TREC (trading rights entitlement certificate) certificates. And the remaining 60 per cent of the shares were transferred to a block account and kept for the TREC holders, strategic investors and individuals. Among the 60 per cent stakes, one or more foreign strategic partners will be able to purchase 25 per cent and local institutional investors and individuals will be able to purchase the remaining 35 per cent stakes. Source: http://today.thefinancialexpress.com.bd/stock-corporate/world-bank-to-support-the-main-bourse-1512578176

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SQUARE PHARMA TOPS DSE TURNOVER CHART

Company's biz expansion plan attracts investors Square Pharmaceuticals topped the transaction chart of Dhaka Stock Exchange (DSE) Wednesday while top 10 traded companies captured nearly 27 per cent turnover. Brokers said investors were active on Square Pharma's share amid optimism as the leading pharma company approved Tk 2.02 billion for BMRE (balancing, modernisation, rehabilitation and expansion), capital machineries and lands for future expansion at the annual general meeting (AGM) held on December 4. "Recently some prudent investors took position on monumentally sound issues like Square Pharma, Grameenphone, BATBC, taking them in top turnover list," said an analyst at a leading brokerage firm. He noted that when the market went through a correction phase, a section of investors took position on fundamentally sound stocks to safeguard their investment. According to statistics available with the DSE, about 1.24 million shares of Square Pharma were traded, generating a turnover of Tk 383 million, which was 6.55 per cent of the premier bourse's total transaction. Share price of Square Pharma, the second largest market cap listed company, hovered between Tk 305.50 and Tk 311.20, before closing at Tk 310.40 each, advancing 1.50 per cent over the previous session. The pharma company also posted a 24.36 per cent growth in consolidated earnings per share (EPS) in third quarter (Q3) for July-September, 2017 period. EPS was 4.39 for July-September, 2017 as against Tk 3.53 for July-September, 2016. On December 4, the Board of Directors of the company also approved 35 per cent cash and 7.50 per cent stock dividend for the year ended on June 30, 2017 at the annual general meeting. In 2016, the pharma company disbursed 40 per cent cash and 10 per cent stock dividend. The company's paid-up capital is Tk 6.86 billion and authorised capital is Tk 10 billion while total number of securities is 685.95 million. The sponsor-directors own 34.43 per cent stake in the company, institutional investors own 10.34 per cent, foreign 19.15 per cent and the general public 36.08 per cent as on October 31, 2017, the DSE data shows. Meanwhile, the top ten traded companies accounted for more than 27 per cent of the day's total turnover on the DSE. Golden Harvest Agro Industries followed next, with shares of Tk 183 million changing hands. The company's share price closed at Tk 45, falling 1.10 per cent over the previous day. BD Thai Aluminium notched the third spot, with shares of Tk 165 million changing hands. The company's share price advanced 1.26 per cent to close at Tk 32.20 each. Premier Cement emerged as the fourth with shares of Tk 157 million changing hands. The company's share price closed at Tk 95.60 each, advancing 4.82 per cent over the previous session. The turnover of Grameenphone (GP) was Tk 134 million. The lone listed telecom company's share price fell 1.22 per cent to close at Tk 478.60 each. Paramount Textile was also included in the top ten turnover chart with shares of Tk 125 million changing hands, closely followed by City Bank with Tk 124 million, followed by Zaheen Spinning Tk 103 million, Confidence Cement Tk 91 million and LankaBangla Finance Tk 89 million. Source: http://today.thefinancialexpress.com.bd/stock-corporate/square-pharma-tops-dse-turnover-chart-1512578532

PRIME BANK RECEIVED 1ST PRIZE FOR CORPORATE GOVERNANCE EXCELLENCE Prime Bank received 1st prize for corporate governance excellence in the banking category declared by the Institute of Chartered Secretaries of Bangladesh (ICSB) for the year 2016. Company Secretary

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of Prime Bank Mohammed Ehsan Habib received the award from Commerce Minister Tofail Ahmed at Bangabandhu International Conference Centre recently. Commerce Secretary Shubhashish Bose attended the function. Source: http://today.thefinancialexpress.com.bd/stock-corporate/prime-bank-received-1st-prize-for-corporate-governance-excellence-1512578859

PRIME INSURANCE COMPANY LIMITED WON THE SILVER AWARD AT THE 4TH ICSB NATIONAL

AWARD-2016 Prime Insurance Company Limited won the silver award at the 4th ICSB National Award-2016 for corporate governance excellence under insurance category. Commerce Minister Tofail Ahmed handed over the crest to CEO of the insurance company Ms Mohammodi Khanam in the city recently. Prime Insurance Company Chairman Md Zakiullah Shahid was also present on the occasion. Source: http://today.thefinancialexpress.com.bd/stock-corporate/prime-insurance-company-limited-won-the-silver-award-at-the-4th-icsb-national-award-2016-1512578923

PLATFORM ADOPTS 12-PT SDG DECLARATION A citizen platform adopted on Wednesday a 12-point declaration that includes active participation of the country's marginal people in development work and finalisation of a law to reduce inequality to achieve Sustainable Development Goals (SDGs) in Bangladesh. Citizens' Platform for SDGs, Bangladesh, an alliance of various nongovernmental organisations (NGO), also declared working on undertaking a demand-basis plan, ensure good governance and better coordination among public and private agencies to this end. The declaration was made at the concluding session of the day-long conference on 'Citizens' Conference 2017: Implementation of SDGs in Bangladesh with the theme 'No one will be left behind'. The platform organised the conference at the city's Krishibid Institution (KIB). Dr. Shamsul Alam, Member (Senior Secretary), General Economics Division (GED), attended the closing ceremony as the special guest with Dr Debapriya Bhattacharya, Distinguished Fellow of the Centre for Policy Dialogue (CPD) in the chair. Managing Director (MD) of Apex Footwear Limited Syed Nasim Manzur, Executive Director (ED) of Transparency International Bangladesh (TIB) Dr Iftekharuzzaman and Amir Khasru Mahmud Chowdhury, a standing committee member of Bangladesh Nationalist Party (BNP), also attended the ceremony, among others. Speaking on the occasion, Dr. Shamsul Alam said Bangladesh has played an important role in devising SDG implementation following the country's significant success in Millennium Development Goals (MDGs) earlier. The government is maintaining regular collaboration with all concerning agencies including private ones, he said. "Private sector is the main driving force of the country's economy, which is prioritised by the government in development activities related to SDGs," he said. He also said the country needs to adopt home-grown development plans to make the economic activities more meaningful in line with the SDGs. In his speech, Nasim Manzur said the private sector is directly involved with several SDGs including 6, 8 and 12 encompassing better workplace, economic growth, responsible consumption and food production. "Actually all of the targets under SDGs are connected with each other," he said. Underscoring the private sector's role in the national economy, he said these cannot function properly without government's support.

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He also laid emphasis on adopting new technologies to maximise the output with minimum resources. Source: http://today.thefinancialexpress.com.bd/trade-market/platform-adopts-12-pt-sdg-declaration-1512579463

UBER EYES SLASHING CAR OWNERSHIP RATE Uber is looking to solve Dhaka's public commuting dilemma by minimising the culture of private car ownership and complementing other modes of public transports, one of the top executives at the global ride sharing giant said recently. "Our goal is to minimise the private car ownership," Pradeep Parameswaran, head of Uber's Central Operation for South Asia, told the FE in an interview. "We believe that people will be less interested in owning a car if they know that they can get an Uber within three or four minutes, and such services are also affordable," he said. "Uber's aim here is not to compete with the CNGs or buses," said Parameswaran, who was in the capital recently to celebrate Uber's one year of operations in Dhaka. "Rather, our goal is to be complementary to other modes of public transports." Uber, which has become synonymous with ride sharing in many cities across the globe, launched its service in Dhaka in November last year. However, soon after, the Bangladesh Road Transport Authority (BRTA) issued a notice saying that the ride-hailing service was in violation of the country's motor vehicles regulations. Despite the ruling, Uber and a number of similar other ride sharing services have gained popularity in the capital over the last one year. Consequently, the government has also reportedly started developing a 'Ride Sharing Guideline'. "Our experience with Bangladesh so far, has been very positive -- whether it is about the regulatory authorities or driver partners or riders. The guideline that has been drafted is also quite progressive," Parameswaran said. "The growing presence of a number of ride sharing entities indicates that the market is quite attractive. Collectively, it makes the market grow faster and also pushed the regulator to move faster," he added. As per the company's own figure, an Uber was requested 1.5 million times in Dhaka in the month of November this year alone while more than 0.2 million people took an Uber trip in the capital. Despite such growing popularity, it has often been pointed out that the fare of Uber in Dhaka is relatively higher compared to some other cities in the region, including Kolkata. When asked about the reason for this higher fare, the Uber executive blamed it on the relatively higher prices of four wheelers in Bangladesh. "When it comes to ride sharing, the cost of service is determined primarily by the cost of a car." He added: "If the cars are cheaper, the cost of ride sharing service also remains cheaper. But, if the cars are expensive, the cost also becomes relatively high." Globally, Uber is apparently going through some rough patches as the Silicon Valley-based company's net loss has reportedly increased to US$1.46 billion in the third quarter from US$1.06 billion in the previous quarter. The Uber executive, however, pointed out that the ride sharing as an industry is still at a nascent stage and Uber as a company is still at investment phase in many of its markets. "Globally, this industry is still at an infant stage. At such a phase, the companies need a lot of support and investment." Although the company was making profits in the cities where it has been operating for last seven or eight years, he said, but it was still at the investment stage in many other locations where its presence is relatively new.

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"Secondly, part of the loss is also attributed to the investments that we are making in other segments of our business," he added. "However, our new CEO has been very optimistic about going for IPO in 2019. So, obviously, as we move towards that, there are expectations that the losses will come down," he said. Recently, it has also been revealed that Uber was hit by a massive data breach back in October 2016 when the data of its 57 million passengers were stolen by hackers. Asked about this issue, Parameswaran replied: "What happened should not have happened. "We live in a dangerous world when it comes to cyber security-- and it is a concern for all digital companies today." The Uber top official also informed that his company was planning to introduce its uberPOOL feature in Dhaka next year. This feature will allow pick up and drop off multiple riders going in the same direction. "At the same time, we also have plans to take our service to other cities beyond Dhaka," he added. Source: http://today.thefinancialexpress.com.bd/trade-market/uber-eyes-slashing-car-ownership-rate-1512579522

APPAREL EXPORT TO US KEEPS DECLINING The country's apparel export to the US maintained the declining trend during the January-October period of 2017, according to the US Department of Commerce. On the other hand, its main competitors, India and Vietnam in particular, witnessed positive growth during the period, according to data released by the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce. The country's garment exports to the US market declined by 4.93 per cent to $4.35 billion during the 10-month period, the data showed. During the corresponding period of 2016, Bangladesh exported $4.58 billion worth of apparel to its single largest market. Apparel exporters attributed the appreciation of local currency against US dollar, longer shipping time, rise in production cost and ongoing safety work for the declining trend in the US market. On the other hand, its competitor, Vietnam, witnessed a 6.79 per cent growth during the same period. Vietnam exports stood at $9.84 billion in the first 10 months of current calender year while India's garment export stood at $ 3.21 billion during the period, marking a rise of 2.06 per cent, OTEXA data showed. China's exports, however, grew negatively by 3.64 per cent to $23.16 billion during the period, according to the data. Cambodia also recorded negative growth of 1.85 per cent with earnings worth $1.82 billion during January-October 2017 period. Maintaining the leadtime is a challenge nowadays for the sector and entrepreneurs are struggling to survive, said Mahmud Hasan Khan, vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). US imports woven items more compared to knit from Bangladesh, he explained. "We are losing our competitiveness due to longer leadtime," he said, adding that the country's backward linkage industry in woven segment is still insufficient to meet the demand. Source: http://today.thefinancialexpress.com.bd/trade-market/apparel-export-to-us-keeps-declining-1512579561

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GOVT TO IMPORT 0.2M TONNES OF RICE, WHEAT The government will import soon a total of 0.2 million (two lakh) tonnes of non-basmati parboiled rice and wheat from India and South Korea. The Cabinet Committee on Government Purchase (CCGP) on Wednesday gave approval to two separate proposals in this regard, reports UNB. Finance Minister AMA Muhith chaired the meeting held at the cabinet division. "The government w

Daily News Flash, 7th December, 2017 - EBL Securities · 2017-12-07 · EXIM BANK LAUNCHES...

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