GE Energy’s Jenbacher gas engines to bring power to rural Bangladesh
November 20, 2008
A new 93-megawatt, independent power plant will feature GE Energy’s Jenbacher gas engines to provide needed power to thousands of homes in Bangladesh as part of major rural electrification initiative. The project is one of the latest to be developed by independent power producers (IPPs) that are rapidly building new power plants-with government support-to improve electricity supplies in rural areas of Bangladesh that do not have reliable transmission grids.
Financial crisis won’t hurt RMG: BB
November 17, 2008
The garment sector is unlikely to take a hit from the global financial meltdown as exporters sell low-end products with demand expected to be elastic, according to Bangladesh Bank. The central bank made the observation at its management board meeting early this month.
CSE will soon introduce Next Generation Trading System
November 11, 2008
Nasiruddin Ahmed Chowdhury was reelected president of the Chittagong Stock Exchange (CSE) at a meeting of the new board of directors after conclusion of its 13th annual general meeting (AGM) held on Sunday.
Fakhor Uddin Ali Ahmed, Al Maruf Khan and AQI Chowdhury were also reelected vice presidents for the year 2009.
Speaking at the AGM held at the CSE’s premises, the reelected president vowed to introduce Next Generation Trading System (NGTS) to facilitate Equity Market, Debt Market, Futures and Options Market, Commodity Market, IPO, Book Building and others.
He said, “There would be facilities for trading through internet, wireless and mobile phones and also brokers’ in-house systems. The proposed NGTS will lift CSE to an international standard.”
“We are working very closely with SEC, CDBL and DSE to reduce the time requirement for IPO processing and making it more investor friendly. Under the new proposal, investors will be allowed to apply for IPO issues by paying only 25 per cent of the face value of shares.”
In the AGM, Mirza Salman Ispahani, AQI Chowdhury, Al Maruf Khan and ASM Nayeem retired from the CSE board and were unanimously reelected directors of the bourse for another three-year term to 2011.
The elected Directors of the Board are Nasiruddin Ahmed Chowdhury, Fakhor Uddin Ali Ahmed, Al Maruf Khan and AQI Chowdhury, Abu Sayed, Md Shahidullah, ASM Nayeem, Bijan Chakroborty, Mirza Salman Ispahani, MKM Mohiuddin, Mohammad Fakhruddin, Md Siddiqur Rahman and Tareq Kamal.
Prof Abu Ahmed, Engr. Ali Ahmed, Amir Humayun Mahmud Chowdhury, Anis A Khan, Farooq Sobhan, Mamun Rashid, Md. Sarwar-E-Alam, Prof Rabiul Husain, Aftabul Islam and Safwan Choudhury were among the non-elected Directors.
Source: The New Nation
DSE hosts awareness programme
November 8, 2008
Bangladeshi co to set up water treatment plant at Adamjee EPZ Spend $1.13 million
November 4, 2008
Messrs Sigma Engineers Ltd is going to set up a water treatment plant at Adamjee EPZ.
A decision has been taken at the BEPZA Board of Governors meeting that operating of water treatment plant will be allowed as a service-oriented industry in public-private partnership model. Read more
DSE fall turns volatile makes investors nervous
November 1, 2008
The Dhaka Stock Exchange (DSE) turned volatilein the past week that ended Thursday as the day-traders held controlover the market through intra-day profit taking, making general investors nervous and inactive.
The country’s main bourse suffered the setback amid fall for the fourth consecutive week despite having no significant relation to the global financial crisis.
Market analysts said the month-long sluggish trend might have influenced the investors to believe that the global financial crisis is one of the reasons behind a bear market.
Merchant bankers asked their borrower-investors to adjust loans as part of their regular practice in a bearish trend, making investors more reluctant to operate in the market, they said.
“The market has become erratic amid high volatility in the intra-day trading,” said an asset manager, terming the trend a very unhealthy sign for the market.
He said in the recent trend of the market one would see a big difference between high and low points of the index curb, which is a sign of volatility.
He further said the market suffered setback due to cumulative effect of many issues like non-professional behaviour by the merchant banks, who do not advise their clients on how to operate.
“Their (merchant bankers) orientation is only about lending, doing interest business. If they lend money to the investors, the market gains and if not the market fall,” said the asset manager.
“The general investors are confused and in ‘watch and see’ strategy,” DSE CEO Dr Salahuddin Ahmed Khan told UNB.
He said the market is now highly speculative while investors were for short-term gains. “Over-speculation increases the risk of a market.”
Meanwhile, Finance Adviser Dr Mirza Azizul Islam called in DSE CEO Dr Salahuddin Ahmed at his Finance Ministry office on Thursday, inquiring about the market situation.
Dr Salahuddin apprised the Adviser of the recent happenings in the market and what the DSE was doing, including the meeting with merchant bankers on Wednesday. He said the investors were confused about the market trend and the effect of the global financial crisis.
The Finance Adviser advised the DSE CEO to invite the Bangladesh Bank Governor at DSE to explain the condition of local banks, financial institutions and stock market against the global financial crisis.
During the last week ended Thursday, the DSE General Index (DGEN), the benchmark index, shed about 120 points or 4.17 percent to close at 2,749 points while the All Share Price Index (DSI) declined 99 points or 4.15 percent to close at 2,278.
The DSE-20 index of selective shares lost 64 points or 2.65 percent to close at 2,352 points.
The total turnover during the week shed 31 percent to Tk 13.11 billion from the previous week’s Tk 19.08 billion. The daily average turnover of the past week also dropped 31 percent to Tk 2.62 billion from Tk 3.82 billion of the previous week.
Market capialisation dropped over 2 percent to Tk 986 billion during the week from Tk 1.008 trillion in the previous week.
Beximco Pharma, Titas Gas, ACI Limited, Beximco, Square Pharma, Lankabangla Finance, DESCO, Islami Bank, Summit Alliance and ICB 2nd NRB were the turnover leaders of the week.
Bangladesh Luggage, a Z category company, emerged as the week’s top gainer with over 51 percent increase in prices while Aziz Pipes, Desh Garments, BCIL and CMC Kamal from the same worst performing category were among the top gainers of the week. Dulamia Cotton from B category was also among the top ten.
Kay and Que, ICB, National Polymar and Apex Weaving from the good performing A Category were the others among the top ten gainers of the week.
Miracle Industries (A category share) was the top loser of the week with 34 percent fall in prices while Daffodil Computers, Golden Son, BDCOM Online Limited, In Tech Online Limited and Information Services Network from the same category were among the top losers.
Alltex Industries and BD Welding Electrodes from Z category, Fu Wang Food from B category and Summit Allaince from N category were the others to join the top ten losing company of the week.
In the past week, Agni Systems Limited recommended 15 percent stock dividend and Apex Weaving 11 percent stock dividend for 2007-08 while Delta Spinning, Monnoo Ceramics, Monnoo Jutex, Prime Textile and Samorita Hospital recommended 10 percent cash dividend each.
Other announcements of the week for cash dividend were Alltex 2.5 percent, Dulamia Cotton 5 percent, BD Autocars 3 percent, Fu Wang Ceramics 5 percent, Miracle Industries 5 percent, Eastern Housing 15 percent, Libra Infusion 17.5 percent, Metro Spinning 15 percent, Standard Ceramic 5 percent, Jute Spinning 20 percent, Desh Garments 5 percent, Modern Dyeing 4 percent and Power Grid 27 percent.
Chittagong Vegetable, Tulip Dairy, Gachihata Acquaculture, Modern Cement, Ashraf Textiles, Al-Amin Chemicals, Niloy Cement and Samata Leather did not recommend any dividend for the year.
Source: The New Nation
Panel to keep watch on financial storm
October 30, 2008
The government is going to form a panel to advise it on measures to pre-empt any negative impacts of ongoing global financial meltdown on the economy, an adviser says.
The move comes on the back of appeals from experts that the interim administration puts in place a taskforce as the world grapple with worst financial turmoil in 80 years.
“We have decided to form the Monitoring Management Advisory Committee in the shape of a taskforce. We will sit within a few days to form the committee,” the finance and planning adviser, Mirza Azizul Islam, said in an interview with bdnews24.com on Wednesday.
The committee will be composed of experts from government and non-governmental economists, with Bangladesh Bank governor Salehuddin Ahmed as the head, the adviser said.
Salehuddin is already leading a government committee to keep an eye on the swirling economic storm.
He added that the committee will review the development of incidents concerning economy and will advise the government on prompt measures.
“As concerns are mounting with all sorts of opinions and recommendations regarding the global crisis’s impact on the national economy, the government has decided to form the committee” Mirza Aziz said.
Experts, including Awami League presidium member and former finance minister Abul Mal Abdul Muhit, permanent representative of Bangladesh to the United Nations in Geneva Debapriya Bhattacharya and others have been urging the government to form a taskforce to monitor the global economic condition.
“Not exactly a taskforce, but the Monitoring Management Advisory Committee will be in the shape of a taskforce,” Mirza Azizul commented when the experts’ urges were brought to his notice.
Source: The Bangladesh Today
Dhaka stocks spin lower
October 28, 2008
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The stock market regulator also found “forced selling” as a trigger in yesterday’s sharp fall in share prices.
The surveillance department of the Securities and Exchange Commission had communicated with the merchant banks, which pressed their clients into sell-offs, SEC officials said.
“The commission doesn’t support destabilising the stock market with forced sell-offs,” said Farhad Ahmed, executive director of SEC.
The fall also pulled down the key indices of Dhaka Stock Exchange to new lows in nearly two months.
The benchmark DSE General Index went down 70.34 points, or 2.5 percent, to 2732.93 points. The index slid to 2722 points on August 25, its lowest in two months.
Market insiders said some top merchant banks had piled pressure on their clients to pay back margin loans by selling shares for lower prices.
The margin loan is the credit provided by merchant banks against securities held by investors.
Forced-selling also pulled down the prices of other securities, the insiders said.
Some other merchant banks however took the opportunity of buying securities at lower prices to rearrange their portfolios.
Along with the benchmark index, the DSE All Share Price Index dipped 57.44 points, or 2.47 percent, to 2265.43 points.
Most securities traded down on the premier bourse. Of the 236 traded issues, only 26 advanced and 197 declined with 13 unchanged. A total of 1,80,30,171 shares changed hands on the DSE.
Chittagong stocks also marked a sharp fall yesterday. The CSE Selective Categories Index declined 144.63 points, or 2.57 percent, to 5473.82 points, while the CSE All Share Price Index dropped 210.65 points, or 2.45 percent, to 8383.42 points.
Global crisis could be boon for Bangladesh
October 23, 2008
A former central banker says Bangladesh could benefit in some ways if the global economic crisis does not linger beyond a year.
“It may lead to lower inflation. And because of the crisis affecting the investment climate in developed countries, laundered money may even find its way back to Bangladesh,” Khondoker Ibrahim Khaled, a former Bangladesh Bank deputy governor, said Wednesday.
“If such money comes back, the authorities should consider relaxing investment rules,” said Khaled, who also ran government-owned Sonali Bank as managing director.
Speaking at a discussion hosted by the Economic Reporters’ Forum, Khaled, now chairman of the state-owned Krishi (agricultural) Bank, said the state of emergency slowed the local economy to the point that there had been no growth at all.
“Our share market is unlikely to suffer any sudden crisis. Because the volume of foreign investment is very low, and the global crisis has virtually nothing to do with such markets.”
He said exports and remittance were unlikely to be affected.
“Exports will not suffer because of the crisis as garments (the type Bangladesh exports) are a product considered to be a necessity.
“And 80 per cent of our (migrant) workers are based in the Middle East. The nature of their jobs will ensure they will not be affected by the economic crisis,” Khaled said.
“If a few Bangladeshis lose jobs in Europe and North America and return, there won’t be much impact on remittance. There may be some social impact.”
But economics professor Wahiduddin Mahmud said he believed external trade could be exposed to the crisis in the longer run.
Mahmud said the local commercial banks must be careful about “risky” lending.
“Consumer credit has to be stopped through enactment of law,” said Mahmud, who teaches economics at Dhaka University.
The head of the largest exporters’ group came up with three proposals for Bangladesh to steer clear of the crisis path.
“Build workforce, reduce prices of oil and fix two different exchange rates for export and import,” said Anwar-ul-Alam Chowdhury Pervez.
DSE CEO Professor Salehuddin Ahmed, CPD executive director Mostafizur Rahman were among those who also spoke.
Source: bdnews24
Dhaka stocks down
October 22, 2008
Too much attention falls on too few issues
On the Dhaka Stock Exchange yesterday, only 10 companies accounted for 61 percent of the 2,66,94,203 traded shares.
On the other hand, the representation of shares from the banking sector, which largely dominates the DSE in daily transactions, slipped below 20 percent.
Statistics show a limited number of scrips accounted for more than 45 percent of total turnover on the DSE yesterday. The top 10 turnover leaders accounted for Tk 185.76 crore of the total turnover at Tk 405.26 crore.
Bank shares account for more than 50 percent of total market capitalisation, followed by the fuel and power sector that represents around 12 percent, pharmaceutical companies 10 percent and cement and insurance companies more than 5 percent.
It appeared that investors, especially retailers, who are now dominating daily trade, rallied for a select group of companies, said DSE Chief Executive Officer Salahuddin Ahmed Khan.
“The investors are leaning towards some selective securities especially to make short-term gains,” he said.
In most cases, speculation and rumours spinning around the specific companies influence the investors.
But the trading dominated by a limited number of securities has created an “unhealthy situation” in the market, he said. An analysis of trading statistics points to such a situation.
Yesterday, all the key indices of the premier bourse fell. The benchmark DSE General Index dropped 32.22 points, or 1.12 percent, to 2824.57 points. The DSE All Share Price Index also shed 23.05 points, or 0.97 percent, to 2339.56 points.
Most securities traded down on the DSE. Of 242 traded issues, 78 gained, 157 declined and seven remained unchanged.
In the opening 15 minutes, the market gained about 22 points. The market stabilised a bit and stayed on this level more or less for the next 60 minutes. The market started its declining trend that lasted for the rest of the session.
Market capitalisation came down to Tk 99,521.30 crore from the previous day’s Tk 1,00,282.90 crore.
Desco topped the turnover list with 2,97,750 traded shares worth Tk 38.94 crore. The day’s other turnover leaders were Beximco Pharma, Titas Gas, Beximco, ACI, Heidelberg Cement, Summit Alliance Port, Square Pharma, Golden Son and Summit Power.
Chittagong stocks also declined yesterday. The CSE Selective Categories Index fell 103.86 points, or 1.81 percent to 5632.74 points. The CSE All Share Price Index declined 134.15 points, or 1.53 percent, to 8624.73 points.
A total of 57,77,314 shares worth Tk 54.45 crore changed hands on the port city bourse. Of the 130 issues traded, 30 advanced, 98 declined and two remained unchanged.