Bear grabs Dhaka stocks for 2nd week

Dhaka stocks dropped last week, extending its bear run for the second consecutive week, amid decreased participation of investors, market operators said.
The general index of Dhaka Stock Exchange lost 65.09 points, or 2.36 per cent, in the week closing at 2,695.58 on Thursday, while its blue chips index, DSE20, shed 71.86 points, or 3.16 per cent, to finish at 2,199.34.
A merchant bank official said the market witnessed a selling pressure from investors, especially from retailers, who—dejected by the recent prevalence of dullness at the market—scurried to sell off their holdings. He, however, said some investors also offloaded shares to gather cash to buy initial public offerings of Bay Leasing and Investment Ltd, subscription of which starts today.
Before the recent bear run, the market had been in a bull run for a couple of weeks thanks to an increased participation of investors after a two-and-a-half-month lull.
A DSE stockbroker said the price movement at the market fluctuated almost every day in the week, reflecting the investors’ shakiness about the market trend. The market also saw volatility in the share prices of a number of low-profile ‘Z’ category issues following various rumours and speculations, he said.
Out of the 295 issues, 104 advanced, 158 declined, two remained unchanged, and 31 were not traded in the week.
The DSE market capitalisation stood at Tk 1,02,467 crore on Thursday, 1.79 per cent down from the previous week’s closing at Tk 1,04,339 crore.
The DSE daily average turnover went down by 15.50 per cent to Tk 344.26 crore from the previous week’s Tk 407.39 crore.
Titas Gas topped the turnover leaders with a total transaction of Tk 176 crore, which accounts for 10.22 per cent of the week’s total turnover of Tk 1,721 crore at the bourse.
Shinepukur Ceramics, Beximco, Summit Power, Beximco Pharmaceuticals, Grameen Two Mutual Fund, Aims 1st Mutual Fund, ACI Formulations, Summit Alliance Port, and Keya Cosmetics are the rest of the week’s top 10 turnover leaders.
Al-Haj Textile is the week’s biggest gainer with a 61.69 per cent rise in its share price, with Lexco being the worst loser with a 19.74 per cent fall.
Of the total turnover of the week, ‘A’ category issues account for 64.60 per cent, ‘B’ category 2.12 per cent, ‘N’ category 29.41 per cent, and ‘Z’ category 3.87 per cent.

Trade tops bank loan

The sectoral distribution of bank credit has marked a significant change, with a majority share going for trade financing, central bank data show.

Some 35.4 percent of total bank credit was meant for the trade financing as of September 2008, which was only 18.7 percent in March.

Up to September, the bank advances for industrial purposes reached 21.1 percent from 27.2 percent six months ago.

Senior bankers blamed the commodity price hike and subsequently a rush in opening of letters of credit (LC) for the trade financing. Some mid level private bank officials think that trade financing has increased because the banks are encouraged to do such financing on the plea that higher and faster repayment is ensured.

“A considerable number of LC was opened during the July-September quarter of 2008 on a speculative further rise in the commodity prices in international market,” said Mahmud Sattar, managing director of The City Bank.

Prices of commodities, including rice, wheat, edible oil and petroleum products all were in the peak till the third quarter of 2008. Prices of some of these products quadrupled in a year.

Sattar, also president of the Association of Bankers Bangladesh (ABB), a forum for bank chief executives, predicted a fall in the credit for trade sector in October-December period because of a price-drop.

BB data show domestic credit increased by Tk 17,412.9 crore or 7.0 percent during July-October 2008 as against Tk 10,007.7 crore or 4.87 percent during the same period a year earlier.

On the other hand, private sector credit grew by Tk10, 370.5 crore or 5.45 percent during July-October 2008 compared to a Tk 8,593 crore or 5.65 percent rise in the same period a year earlier.

Only 21.1 percent of total bank advances were for industry, 35.4 percent for trade, 2.3 percent for transport and communication, 16.0 percent for working capital, 6.8 percent for agriculture and 18.4 percent for other purposes.

As per BB data on bank advances up to March 2008, 27.2 percent was industrial, 24.7 percent working capital and 18.7 percent for trade on year-on-year basis.

“Credit to trade sector generates a handsome income from different commission and charges,” a mid level official of a private bank said.

On the declining trend in industrial financing, the ABB president said there was no big investment proposal in 2008.

Mahmud Sattar also differed with the central bank on the so-called 'unproductive sector'.

“I don't believe there is any unproductive sector,” he categorically said. Consumer credit generates power for consumption of people, he added.

Cash-strapped banks borrow Tk 5000 crore

The commercial banks on Wednesday borrowed Tk 5,000 crore from the central bank through Repo (repurchase agreement) and the call money market to meet their increasing liquidity crisis, banking sources said.
The Bangladesh Bank has injected Tk 3,000 crore in the banking sector at 8.7 per cent interest while the banks have borrowed Tk 2,000 crore at eight to 13 per cent interest from the call money market to counteract their liquidity crisis.
‘Banks are facing liquidity crisis as the money which went out of them in the run up to the national polls has not returned yet,’ said a senior official of the BB.
The official also said the banks’ demand for liquidity might be over after the January 22 upazila elections.
Besides, at least nine private commercial banks have already increased their interest rates on deposit by 0.50 to 1.50 per cent to collect more funds from their clients to meet their liquidity crunch.
On another front, local importers are reluctant to import commodities like rice, pulse, onion, and edible oil, resulting in a decline in letter of credit settlements, meaning fund inflow.
The LC settlement growth for import reduced by 30 per cent in December 2008 compared to same month in 2007. The growth posted a 19.14 per cent increase in July 2008 from that in July 2007.
According to banking sources, due to the global financial meltdown, local commercial banks have diverted their deposits from western banks to Asian ones, which also added to the cash crisis by fetching lower incomes.
Agrani Bank Limited chief executive officer Syed Abu Nasir Bukhtear Ahmed told New Age the demand for liquidity of commercial banks had increased day by day, but it was not a liquidity crisis.
He, rather, argued that the reducing call money and deposit rates meant the banks had surplus liquidity.
Bangladesh Institution of Development Studies research director Zaid Bahkt said the liquidity crisis in the banking sector would stabilise after the upazila elections, as most of the money invested for polls camp

Signs of capital flight from DSE mark 2008

Sell-offs by foreign fund managers outpaced the buying pressure on the country's prime bourse in growing signs of capital flight from the stock market in 2008 in the wake of the global financial crisis.

The foreign investors sold shares worth Tk 814.96 crore, while they bought shares worth Tk 550.54 crore last year, according to Dhaka Stock Exchange (DSE) statistics.

However the DSE in 2007 had received Tk 889.06 crore in net foreign investment, which was a jump of around 830 percent compared to the previous year. Throughout that year, the foreign investors bought shares worth Tk 1439.76 crore, while the selling amount was Tk 550.7 crore.

Many a fund manager had become bankrupt because of the global financial meltdown and withdrew their investments from the stock markets in different countries to meet liquidity crisis, according to market analysts.

They said Bangladesh capital market was also on the money withdrawal list, despite the market was not so big as India, China and Japan.

On the onset of global financial crisis, the foreign or portfolio investment accounted for less than three percent of the total market capitalisation, or around US$ 60 crore.

By the end of 2008, such investment came down around $40 crore.

“There was a selling pressure instead of injecting fresh fund last year because of the profit-taking move by the global fund managers to meet their liquidity crisis, stemmed from the financial meltdown,” said Salahuddin Ahmed Khan, professor of Finance at Dhaka University.

However, the foreign investors had started injecting fresh fund in the later part of the year, although the pace was very slow, said Khan, also the immediate past chief executive officer of DSE.

“As our market has been maintaining a steady growth and the global credit crunch could not put any impact on our market, foreign investment will go up in near future,” he hoped.

Since the onset of the crisis, economists, experts and stakeholders of the capital market repeatedly said Bangladesh market is less allied with the global stock markets and there will be no fallout from the financial crisis.

Some analysts also see the Dhaka market as an emerging market because the diversion of global fund managers is likely due to the fact that returns from investment are ensured here.

They said inclusion of Bangladesh in the Goldman Sachs' 'Next 11' countries is another evidence that international investors now take interest in the country's stock market.

Banking sector shares followed by fuel and power, pharmaceuticals and cement sectors are on the choice list of foreign investors, mainly from the US and Europe.

Dhaka stocks close flat

Dhaka stocks finished Wednesday flat in a volatile trading with its general index posting a slight gain after a two-day bear run, market operators said.
Trading at the Dhaka and Chittagong stock exchanges remains closed today due to a holiday on the occasion of Ashura.
The general index of Dhaka Stock Exchange gained 4.01 points, or 0.15 per cent, to close at 2760.67, while its all share price index advanced by 1.20 points, or 0.05 per cent, to finish at 2279.49. The DSE20 of blue chips, however, lost 2.68 points, or 0.12 per cent, to close at 2271.20.
A DSE stockbroker said the market rose sharply in the first hour of the day’s trading due to a buying spree of investors. The market, however, finished flat because of the selling pressure in the late trading, he said.
Of the total 244 issues traded, 93 advanced, 135 declined, and 16 remained unchanged.
Turnover at the DSE dropped to Tk 339.74 crore from the Tuesday’s Tk 378.87 crore.
Summit Power topped the turnover leaders with a total transaction of Tk 41.77 crore.
Beximco Pharmaceuti-cals, Beximco, Titas Gas, Shinepukur Ceramics, Maksons Spinning, Golden Son, ACI Formulations, Summit Alliance Port and Quasem Drycells were the rest of the top 10 turnover leaders on the day.
Chittagong stocks also closed flat on Wednesday.
The selective categories index of Chittagong Stock Exchange gained 3.27 points, or 0.06 per cent, to close at 5552.31, while its blue chips index, CSE30, advanced by 4.88 points, or 0.07 per cent, to finish at 7316.16. The bourse’s all share price index, however, lost 2.67 points, or 0.03 per cent, to close at 8508.76.
Of the total 142 issues traded on the CSE floor, 66 posted gains, 74 dropped and two remained unchanged.
Turnover at the CSE, however, increased to Tk 89.69 crore from the Tuesday’s Tk 59.73 crore.

DSE gen INDEX(7-1-09)

GOLDENSON

The company has informed that the Board of Directors of the company has decided to purchase 215 decimals land @ Tk. 5.00 Lac per decimal at total amount of Tk. 10.75 crore adjacent to factory building of the company for its expanded units namely Golden Son Ltd. Accessories Division and Dying unit and two Venders Agreement will be executed between M/S Golden Son Ltd. & Mr. Belal Ahmed for 60 decimal of land and another Venders Agreement will be executed between M/S Golden Son Ltd. & M/S Ron Son Ltd. Out of which in the 1st phase purchase document for 60 decimals of land will be made with Mr. Belal Ahmed, Managing Director of company (owner of the land) and the value of the land Tk. 3.00 crore will be paid by issuing 15,00,000 Ordinary sharesof Tk. 20.00 each which include premium of Tk. 10.00 per share. Subsequently purchase document for 155 Decimals of land out of 215 Decimals shall be made with M/S Ron Son Ltd. for total amount of Tk. 7.75 crore under the above terms & condition. The Board has also decided to raise fund of Tk. 20.00 crore by issuance of 1,00,00,000 RPO(Repeat Public Offering)/Right shares of Tk. 20.00 each out of which Tk. 10.00 per share each is premium. The above purchase and issuance of RPO/Right share shall be effected subject to approval of the share holders in the EGM and Securities and Exchange Commission. Record date for EGM: 15.01.09. Another record date will be declared for entitlement of Right shares after approval of SEC.

DSE gen index(6-1-09)

Islamic banking shines

Deposits of the Islamic banking industry grew by 21 percent in the year to June 2008, higher than 15 percent growth of the conventional banking sector in the same period, central bank data show.

Total deposits of the Islamic banks and Islamic banking branches of the conventional banks stood at Tk 34,730 crore at the end of June 2008 against Tk 28,650 crore in June 2007, meaning Tk 6,080 crore was deposited in Islamic banks in one year alone.

Out of 48 banks in Bangladesh, six private commercial banks are operating as full-fledged Islamic banks and 21 branches of 10 conventional banks are involved in Islamic banking business.

Islamic banking industry's deposit worth Tk 34,730 crore was 24.4 percent of the total deposits of all private commercial banks and 16.1 percent of the total banking system's at the end of June 2008.

As of June 2007, deposits of Islamic banking sector were 23.6 percent of the total deposits of all private commercial banks and 14.3 percent of the total banking system's.

Total investment of the Islamic banks and the Islamic banking branches of the conventional banks stood at Tk 34,910 crore at the end of June 2008, up from Tk 26,540 crore in June 2007.

The investment was 26.8 percent of all private banks' and 19.3 percent of the total banking system's.

Popularity of Islamic banking is rising worldwide, especially among the Muslims, for its interest-free nature. Many western banks, including those in the US and Europe, have already adopted the idea of Islamic banking to net Muslim customers. Bangladesh first launched such banking system in 1983.

According to Qatar Islamic Bank (QIB), this banking system is set to become a $4 trillion global business within the next five years.

Quoting the international rating agency, Standard & Poor's, QIB said in its newsletter that 'sukuk' or Islamic bond is one of the fastest growing segments of Islamic banking along with mutual funds.

Islamic finance experts say global sukuk market is now worth around $82 billion.

The International Monetary Fund estimates the market to reach $150 billion within the next three years. The ever-increasing demand for financing infrastructure development and other mega projects in the private sector will continue to be the major demand driver for sukuk, they say.

Dhaka stocks drop on profit-taking

Dhaka stocks dropped on Monday because of a profit-taking selling pressure from investors in volatile trading after a six-day bull run, market operators said.
The general index of Dhaka Stock Exchange lost 36.32 points, or 1.28 per cent, to close at 2808.45, while its blue chips index, DSE20, shed 27.16 points, or 1.16 per cent, to finish at 2311.59. As of Sunday, the DSE general index gained 246.66 points due to a rise in share prices for six consecutive trading days.
A DSE stockbroker said the market witnessed a profit-taking selling spree of investors. Starting with an upbeat mood, the market finished down because of the selling pressure in the late trading, he said.
Of the total 242 issues traded, 96 advanced, 136 declined, and 10 remained unchanged.
Turnover at the DSE, however, increased to Tk 464.22 crore from the Sunday’s Tk 446.74 crore.
Shinepukur Ceramics topped the turnover leaders with a total transaction of Tk 48.38 crore.
Titas Gas, Summit Power, Beximco Pharmaceuticals, ACI Formulations, Grameen Two Mutual Fund, Beximco, Aims 1st Mutual Fund, National Bank, and Uttara Bank were the rest of the day’s top 10 turnover leaders.
Chittagong stocks also dropped on Monday.
The selective categories index of Chittagong Stock Exchange lost 59.66 points, or 1.05 per cent, to close at 5646.83, while its blue chips index, CSE30, shed 61.26 points, or 0.82 per cent, to finish at 7440.26.
Of the total 158 issues traded on the CSE floor, 55 posted gains, 100 dropped, and three remained unchanged.
Turnover at the CSE, however, went up to Tk 75.02 crore from the Sunday’s Tk 66.28 crore.

Prime Insurance gets new MD

AQM Wazed Ali has joined Prime Insurance Company Ltd as its managing director recently.
Before the joining, he was the deputy managing director of Federal Insurance Company Ltd, a news release said.
After obtaining post-graduate degree from Dhaka University, Wazed started his career as a lecturer of a private college. Thereafter, he joined in the insurance industry in 1986 mainly concentrating in the underwriting department. During his 22-year insurance career he underwent various training courses and took part in seminars and workshops on different aspects.

Dhaka stocks extend bull run for 2nd week

Dhaka stocks saw a bullish trend for the second consecutive week that ended Thursday, thanks to an increased participation of investors, market operators said.
The general index of Dhaka Stock Exchange gained 177.47 points, or 6.75 per cent, to close at 2,807.61, while its blue chips index, DSE20, advanced by 120.39 points, or 5.48 per cent, to finish at 2,316.54. In the previous week (from December 21 to 24), the DSE general index gained 112.12 points, or 4.45 per cent.
An investment firm official said the market shook off losses as investors increased their participation in the last couple of weeks after a two-and-a-half-month lull. Availing lower prices of securities, investors put funds on stocks, expecting good returns in the days to come, he said.
The institutional investors, who completed their year-end loan adjustment, also started injecting funds into the market, signalling a recoup.
The daily average turnover at the DSE posted a 55.58-per cent rise to Tk 383.93 crore from the previous week’s Tk 246.77 crore. The DSE’s total turnover last week was Tk 1,152 crore.
The country’s prime bourse shortened last week to three trading days from five as it remained closed on Monday due to the national polls and on Wednesday for a bank holiday.
Analysts said the institutional and big individual investors started returning to the market a few days before the December 29 national elections. Holding of the polls lifted the investors’ confidence, they said.
Out of 295 issues, 196 advanced, 39 declined, 82 remained unchanged and 52 were not traded in last week.
The DSE market capitalisation increased to Tk 1,04,678 crore, its highest-ever mark, on Thursday due to the debut of National Housing Finance and Investment Limited and Maksons Spinning Mills Limited on the first day of the new year. The market indicator’s previous peak was at Tk 1,04,380 crore on December 30, the last trading day of 2008. In last week, the DSE market capitalisation rose by 4.93 per cent from the previous week’s closing at Tk 99,763 crore.
Beximco Pharmaceuticals topped the turnover leaders with a total transaction of Tk 102.84 crore, which accounted for 8.93 per cent of the week’s total market turnover at the bourse.
Summit Power, Titas Gas, Grameen Two Mutual Fund, Beximco, ACI Formulations, Shinepukur Ceramics, ACI, National Bank, and Uttara Bank were the rest of the week’s top 10 turnover leaders.
Samata Leather was the biggest gainer with a 27.39-per cent rise in its share price, while Shayampur Sugar Mills was the worst loser with an 11.61-per cent fall.
Of the total turnover of the week, ‘A’ category issues accounted for 73.49 per cent, ‘B’ category 0.98 per cent, ‘N’ category 22.10 per cent, and ‘Z’ category 3.43 per cent.

Chowdhury Mohidul Haque new BB ED

Chowdhury Mohidul Haque, general manager, Department of Currency Management and Payment Systems,has been promoted and appointed as executive director of the Bangladesh Bank, a news release said on Thursday.
Haque joined the Bangladesh Bank as a first class officer in 1976 through a competitive examination by the Bangladesh Public Service Commission.
He held various important positions during his long carrier in the central bank. He was promoted to the rank of general manager in July 1999 and headed Bangladesh Bank Barisal office, Sadarghat office and law department

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PCBs post huge profit in 2008

IBBL secures top position
The country’s private commercial banks made a huge operating profit in 2008 calendar year despite global financial crisis, bank sources said.
‘The PCBs have earned huge amount of money from high interest rates on loans, commissions and fees from their services,’ said a senior bank official.
The official also said the private banks had earned huge money from opening letter of credit as prices of consumer products increased on the international markets.
Among 30 PCBs, the Islamic Bank Bangladesh Limited has secured the top position with a profit of Tk 628.23 crore, up from Tk 550 crore last year.
The Prime Bank Limited has secured the second position with an operating profit of Tk 480 crore against Tk 350 crore in 2007.
The operating profit of the Pubali Bank Limited has stood at Tk 365 crore which was Tk 306 crore in the previous year.
The National Bank Limited has made an operating profit of Tk 352 crore, up from Tk 290 crore in 2007.
The Export Import Bank of Bangladesh Limited has earned operating profit of Tk 267 crore, while it made Tk 205 crore last year.
The operating profit of United Commercial Bank Limited has soared to Tk 260 crore from Tk 215 crore in 2007.
The National Credit and Commerce Bank Limited has lifted the margin of its operating profit to Tk 233 crore from Tk 178 crore in the previous year.
The Dutch-Bangla Bank Limited has made an operating profit of Tk 218 crore, while it earned Tk 150 crore last year.
The operating profit of the Shahajalal Islami Bank Limited has stood at Tk 207 crore in 2008, while it was Tk 137 crore in 2007.

New issues lift stocks

The debut of two new issues pulled up the indices of Dhaka Stock Exchange on the first day of the New Year yesterday.

Maksons Spinning Mills has joined the stock market by floating 80 lakh ordinary shares of Tk 10 each. The National Housing Finance and Investment has joined in by offloading five lakh ordinary shares of Tk 100 each.

The indices would have closed lower if the two companies had not debuted, market experts said. The two companies added 25 points to the indices.

The benchmark index of Dhaka Stock Exchange, DSE General Index, rose 12.27 points, or 0.43 percent to 2,807.61 points. The DSE All Share Price Index also increased 11.68 points, or 0.5 percent to 2,321.04 points.

Most securities however traded down on the DSE due mainly to corrections in prices following gains for a few days. Of the 234 traded issues, 97 advanced, 131 declined and six remained unchanged.

The market opened with a big jump in the index. The DGEN gained about 40 points in the first few minutes. In 30-minute trade, the gains stood at 20 points. The market gained another 20 points in the next 30 minutes.

In the next 60 minutes, the market witnessed a sharp decline. By the mid-session, it slipped to 2781 points, the day's lowest.

The market maintained an upward movement for the rest of the session. The DGEN ended higher over the previous day's trading.

A total of 3,52,44,566 shares worth Tk 430.65 crore changed hands on the premier bourse.

Summit Power topped the turnover leaders on the DSE with 3,31,700 traded shares worth Tk 32.63 crore. The other turnover leaders were Titas Gas, Beximco Pharma, ACI Formulations, Grameen Mutual Fund One: Scheme Two, ACI, AIMS 1st Mutual Fund, Shinepukur Ceramics, National Bank and Beximco.

Chittagong stocks marked a fall. The CSE Selective Categories Index declined 31.19 points, or 0.54 percent to 5649.39 points. The CSE All Share Price Index also fell 32.41 points, or 0.37 percent to 8660.33 points.

A total of 75,95,638 shares worth Tk 68.82 crore changed hands on the Chittagong Stock Exchange. Of the 143 traded scrips on the port city bourse, 65 advanced, 70 declined and eight remained unchanged.

Beximco Pharma topped the turnover leaders on the CSE with 3,69,000 traded shares worth Tk 6.11 crore. The other turnover leaders were Summit Power, Grameen Mutual Fund One: Scheme Two, Beximco, AIMS 1st Mutual Fund, Shinepukur Ceramics, ACI Formulations, Titas Gas, Maksons Spinning Mills and National Housing Finance and Investment.

DSE trade to cover country in 2 years

Dhaka Stock Exchange plans to reach out trading facilities to the doorsteps of people in a span of two years.

“As part of our market expansion and development programmes, each area of the country will be brought under trading network,” said AFM Shariful Islam, acting chief executive officer, yesterday.

Presently, the DSE trading network covers Dhaka, Gazipur, Narayanganj, Comilla, Hobiganj, Chittagong, Sylhet, Khulna, Barisal, Rajshahi and Bogra districts.

The capital market operators see such expansion plan 'a timely step' in the backdrop of rising market depth.

The growth in market capitalisation is one of the tools that show increasing market depth. At the end of 2004, such capitalisation was only Tk 224.16 billion. By the end of 2008, it reached Tk1,043.80 billion.

Unveiling a 16-point future plan of the premier bourse in 2009, Islam also said within this year the listed companies, which are not being traded under central depository system (CDS), will be brought under the CDS.

At present, of the total 412 listed securities, some 170 companies are under the CDS.

A modern pricing mechanism styled 'book building' would be introduced this year to encourage the big and successful companies to be listed with the stock exchanges.

The DSE also plans to set up an independent central clearing company this year in order to speed up settlement, clearing and payments for securities, and to cope with the rising volume of trading.

PCBs post rise in profit

Private commercial banks (PCBs) kept up a good show in 2008 despite a global and domestic slowdown in business activity, according to data received from different PCBs.

The operating profit of a PCB was as high as 97 percent and the lowest margin was 23 percent for 2008.

Bankers put the growth down to higher import payments following a huge rise in the prices of commodities from the beginning of 2008.

“The commodity price hike that lasted through the third quarter of 2008 pushed the banks' profit up in 2008,” said Shahjahan Bhuiyan, managing director of United Commercial Bank (UCB).

“Banks' commission income increased significantly because of a price rise in 2008,” said AKM Shafiqur Rahman, executive vice president and secretary of National Bank Limited (NBL).

The operating profit of Al-Arafah Islami Bank rose by 97.5 percent to Tk 158 crore in 2008 from Tk 80 crore in 2007. Shahjalal Bank and Islami Bank saw operating profit increasing by 57 percent and 55 percent respectively in 2008, from a year earlier.

National Credit and Commerce Bank recorded a 33 percent rise in operating profit to Tk 236 crore in 2008 from Tk 178 crore a year ago. The growth rate for UCB and NBL, two first-generation PCBs, was 24 percent and 28 percent respectively in 2008.

Operating profits by NBL and UCB reached Tk 374 crore and Tk 260 crore respectively in 2008.

Operating profits of BRAC Bank, a third-generation private bank, also increased by over 23 percent to Tk 200 crore from Tk 162 crore in 2007.

Prime Bank's operating profit soared to Tk 410 crore in 2008 from Tk 326 crore in 2008. Pubali Bank earned Tk 60 crore more than its 2007 income of Tk 306 crore.

Southeast Bank posted Tk 300 crore in operating profit, up from Tk 291 crore in 2007.

Of the other banks, EXIM earned Tk 260 crore, Dhaka Bank Tk 254 crore, Dutch-Bangla Tk 221 crore, Mercantile Tk 190 crore, IFIC Tk 177 crore, Basic Tk 175 crore, Standard Bank Tk 156 crore, Trust Bank Tk 138 crore, Jamuna Bank Tk 120 crore, One Bank Tk 110 crore and Social Investment Bank Tk 100 crore, according to data tallied by The Daily Star.

AB Bank's operating profit however dipped by Tk 15 crore to Tk 450 crore in 2008 from Tk 465 crore in 2007.

“Banks in Bangladesh saw a good year in 2008 despite the global financial turmoil. Credit should go for the central bank for its prudent and effective guideline,” said Nurul Amin, managing director of NCC Bank.

“We have also seen growth in the banking industry in 2008 in spite of a slowdown in the global economy,” said Syed Abu Naser Bukhtear Ahmed, chief executive officer of state-owned Agrani Bank.

Agrani's operating profit reached Tk 600 crore in 2008 from Tk 526 crore a year ago.

The operating profit of the PCBs had increased by nearly Tk 1,500 crore to Tk 5,200 crore in 2007, up from Tk 3,734 crore in 2006.

The country's imports grew by 31.66 percent in the first four months of the current fiscal year, compared to the same period of the previous fiscal year, according to Bangladesh Bank data.

The value of letters of credit against imports worth $7.898 billion was settled in the July-October period of fiscal 2008-2009, compared with $5.999 billion in the same period of the previous fiscal year.

Credit to the private sector rose by 24.72 percent to Tk 39,736 crore in October 2008, compared to the same period of the previous year.

Dhaka stocks mixed

NHFIL, Maksons Spinning make debut
Dhaka stocks closed mixed on Thursday, the first trading day of the new year, as profit-taking sales dominated the market during the closing hours of the day’s trading, market operators said.
The general index of Dhaka Stock Exchange gained 12.28 points, or 0.44 per cent, to close at 2807.61, while its blue chips index, DSE20, lost 12.17 points, or 0.52 per cent, to finish at 2316.54.
A DSE stockbroker said at the later trading the market witnessed a selling pressure from investors who offloaded their holdings to cash in on the previous four days’ rise of share prices.
Starting with an upbeat mood, trading at the DSE seesawed throughout the day, he said.
Of the total 234 issues traded, 97 advanced, 131 declined and six remained unchanged.
Turnover at the DSE decreased slightly to Tk 430.66 crore from the Tuesday’s Tk 430.95 crore. On Tuesday, the market indicator crossed Tk 400-crore mark for the first time since October 21.
The DSE and Chittagong Stock Exchange remained closed on Wednesday due to a bank holiday.
The DSE market capitalisation, however, increased to Tk 1,04,678 crore, its highest ever mark, due to the debut of the National Housing Finance and Investment Limited and the Maksons Spinning Mills Limited. The market indicator’s previous highest was at Tk 1,04,380 crore on December 30, the last trading day of 2008.
Through an initial public offering in October, the National Housing Finance and Investment raised Tk 5 crore from public, issuing five lakh shares of Tk 100 each.
The Maksons Spinning Mills raised Tk 8 crore, issuing 80 lakh shares of Tk 10 each through an initial public offering floated in October.
On its debut at the secondary market, share price of National Housing Finance and Investment gained 829 per cent to close at Tk 929 on Thursday on the DSE. Maksons Spinning Mills gained 320 per cent to close at Tk 42.
Chittagong stocks finished lower on Thursday after a four-day bull run.
The CSE selective categories index lost 31.20 points, or 0.55 per cent, to close at 5649.39, while its blue chips index, CSE30, shed 64.69 points, or 0.85 per cent, to finish at 7502.26.
Of the total 143 issues traded on the CSE floor, 65 posted gains, 70 dropped and eight remained unchanged.
Turnover at the CSE increased to Tk 68.83 crore from the Tuesday’s Tk 59.94 crore.
The DSE officials said on Thursday that introduction of the book-building method of IPO pricing and setting up a central clearing house were required to sustain the current growth of the country’s capital market.
‘There is also a requirement of introducing derivatives in the market by 2011,’ said DSE acting chief executive officer AFM Shariful Islam at a briefing at the bourse’s board room in Dhaka.
The DSE organised the press briefing to review the market performance in 2008.
Shariful Islam said the book-building method of IPO pricing was required to attract good-fundamental companies including those in the telecom sector to the market. ‘The market maintained its growth in last year.’
DSE directors and officials also attended the briefing.

Prime Bank to set up SME centres in remote areas

The Prime Bank Limited will set up SME service centres in remote areas of the country to help grow small and medium enterprises, said the bank’s managing director, Mohammad Ehsanul Haque.
‘Prime Bank has big plans for SME banking, but it will not be easy to offer large-scale SME service, BRAC Bank does, to the customers,’ he said.
Mentioning the preference given by his bank to banking and reaching it to the doorstep of the clients, the managing director said the Prime Bank was providing home loans, car loans, loans for education, travel and purchase of consumer goods, marriage loan, doctors’ loans, and loans against salary.
‘Prime Bank has secured top position in the country’s private banking sector in term of holding assets and investment which has made the bank’s financial condition sound,’ Haque said, adding that the bank’s total asset now stood at Tk 16,000 crore.
The Prime Bank’s capital amounts to Tk 713.74 crore and capital adequacy ratio is 10.50 per cent. Portfolio loan of the bank has increased 36 per cent to Tk 7,414 crore.
Regarding corporate social responsibility, he informed New Age that the bank was running a number of projects in different areas that include health and education through the Prime Bank Foundation.
‘We have provided free medical services to children with heart problems,’ he said.
The bank is also planning to set up an international standard hospital in the country so that people need not go abroad for treatment, he announced.
Prime Bank earned a net profit of Tk 140.07 crore in 2006-07 against the previous fiscal year’s Tk 105.19 crore, according to the DSE official website.
As per the un-audited half-yearly accounts, as on June 30, 2008, the bank achieved a consolidated profit after tax of Tk 82.60 crore against Tk 62.86-crore post-tax profit in the same period of the previous. The net turnover in the period was Tk 270.78 crore.
Prime Bank started its journey on April 17 in 1995. The bank was listed with the Dhaka Stock Exchange on March 29, 2000. It is also listed with the Chittagong Stock Exchange.

Tanners see gloomy export future

With hide merchants forced to sell their stocks at low prices, local tanners also see a gloomy future as declines in the sales of leather goods globally dampen the demand for Bangladeshi finished leather from Asian and European manufacturers.
Industry people say in the post-Eid periods they have been getting unusually low enquires from global importers and the prices offered are around 40 per cent less than that in the same period a year ago.
Some tanners see the ongoing depression in leather export sector as similar to what they had experienced in 1993 as artificial leather became fashionable.
Bangladesh Hide and Skins Merchants’ Association general secretary Haji Delawar Hossain said different grades of preserved and salted hides were being traded between Tk 35 and Tk 55 per square feet.
‘The price is less by at least Tk 30 than that in the past year,’ said Delwar, describing that hearing of a deteriorating depression in the finished leather export, merchants were trying to clear stocks immediately.
He claimed that many hide merchants were incurring loss given the existing rates. Even the industry average purchase rates of rawhide in Eid this year were much lower than the previous year’s.
Nearly 100 million square feet of rawhide are available in Bangladesh and sacrificed animals in the Eid-Ul-Azha source at least 40 per cent of the annual supply.
Apex Tannery executive director MA Majed said tanners’ or finished leather exporters’ fates were getting worse than the fate of hide merchants.
‘Most tanners have no enquiries from buyers abroad,’ said Majed, ‘as the recession in Europe and America hit hard the leather goods sales, declining the demand for finished leather drastically.
The chief executive of the country’s largest tannery said that after the Eid he had some enquiries from Italy, with importer offering $2.30 for per square feet of coloured or drum-dyed finished leather against $2.90 a year ago.
The price of natural or vegetable-dyed leather, which Bangladesh is famous for, is being offered at around $2.10 against $2.70 per square feet a year ago, said Majed.
‘I see the market is depressed worse than in 1993,’ said Majed, describing that one-and-a-half-decade ago Bangladeshi exporters faced huge troubles in global markets as sneakers made of artificial leather became all the rage in the western markets.
Majed however said in recent weeks Asian and European manufacturers had preferred vegetable-dyed finished leather to produce jackets, bags and other goods. ‘Economic recession in the West has greatly affected leather goods market. So, Bangladesh is suffering.’
Finished leather earned $284 million for Bangladesh in fiscal 2007-2008 ended in June last, posting a 7.00 per cent year-on-year growth and accounting for 2 per cent of the country’s total export proceeds. But, according to the Export Promotion Bureau, in the July-October of the current fiscal year, leather export earnings saw a 17 per cent year-on-year fall.

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Mr. Md. Shahiq Khan, Member and former President of DSE as well as Chief Executive Officer of Shahiq Securities Ltd. (DSE Member No. 39) is going under 'open heart surgery' at Apollo Hospitals, Dhaka. All hon'ble Members, relatives, friends and well-wishers are requested to pray to the Almighty for his early recovery.

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As per decision of SEC, trading of the shares of the company will be held in Demat form with effect from January 26, 2009. In this respect, trading of the shares of the company will be allowed only in the spot market on January 20, 2009 and trading of the shares will remain suspended during January 21-25, 2009 for finalization of Demat process.

Dse gen index(1-1-09)

Capital market ends a topsy-turvy year

Heavy inflow of liquidity and entry of fresh investors in the first half of 2008 helped Bangladesh’s stock market sustain the bull run it witnessed in 2007, surpassing all the records in market indicators made during a boom from January 14 in the previous year, the first trading day under the state of emergency.
The market, however, spiralled down towards the yearend, due to a low fund-flow to the market ahead of the national polls held on Monday. But, the closing week of 2008 saw a rebound at the Dhaka and Chittagong stock exchanges.
‘The market saw a downtrend at the later half of the last year as institutional investors had pulled out their funds and remained almost inactive. The trend started in the middle of the last year, but we observed it very sharply only during the last couple of months,’ said Abu Ahmed, a professor of economics at Dhaka University.
Due to the downtrend, the general index of Dhaka Stock Exchange lost 221.87 points, or 7.35 per cent, in last year to close at 2795.34 on December 30, the last trading day of 2008, from the previous year’s close at 3017.21. The benchmark index sank to its lowest in the year at 2459.48 on November 27.
‘As like as 2006, early last year, institutional and big individual investors injected huge funds to the market, finding other investment options limited,’ said Abu Ahmed.
He said long-lasting bullish trend also lured a huge number of fresh investors to the stock market. More retail investors entered the market hoping to make quick capital gains.
‘With leading brokerage houses opening their branches in divisional cities, the retail investors in those areas found direct access to the market, boosting the liquidity situation,’ he said.
During the period, on June 1, the DSE general index touched its peak of 3,207.89 points.
The DSE recorded its highest-ever turnover on October 10 at Tk 590.51 crore. Its market capitalisation peaked to Tk 1,04,380 crore on December 30, rising 20 per cent in the year.
Abu Ahmed said the escalation in the share market did not truly reflect the country’s overall economic performance. The market, which lacks quality shares, has often gone wrong with unusual share price inflations as more funds rushed for a few stocks, prompting interventions of the Securities and Exchange Commission, the stock market regulator.
The SEC’s interventions often resulted in a slowdown of the market, sparking off angry demonstrations of investors against the regulator’s role. The investors, however, sometimes, even took to the streets seeking the commission’s actions in arresting the stock market slide.
Mahmood Osman Imam, chairman of the finance department of Dhaka University, said, ‘The last week’s surge indicated that institutional and retail investors, who had kept an wait-and-see policy in the last couple of months, expected a healthy return in days to come.’
SEC chairman Faruq Ahmad Siddiqi said, ‘Stock market achieved phenomenal growth in the last two years. He hoped that the capital market in Bangladesh would register further growth in the next two years, with telecom sector and good companies from other sectors offloading shares on the market. The introduction of book-building method of initial public offering-pricing will contribute to the expected growth of the capital market, he said.
In 2007, the DSE general index gained 1,434.12 points, or 91 per cent, to close at 3017.21 on December 30.
A total of 15 companies got listed with the country’s bourses, floating IPOs and offloading shares on the bourses through direct listing regulations, in 2008.