IDLC Asset Management Shariah Fund holds 12th Sharia Supervisory Board meeting
The IDLC Asset Management Shariah Fund, managed by IDLC Asset Management Limited, held its 12th Shariah Supervisory Board Meeting on January 28th, 2023. The board reviewed the second quarter's shariah-related activities and approved all Shariah Compliance Reports for the mutual...
STOCKS | PSI
Alif Industries now allowed to issue new shares to help C&A Textiles
Taka devaluation erodes National Polymer profit by 94%
Higher costs, strong dollar slash BBS Cables profit by 92%
Investment proposals rise in 2022
January 28, 2023
· Investment proposals in the country increased last year compared to the previous year as a result of different initiatives taken by the Bangladesh Investment Development Authority (Bida) to attract investors.
· According to Bida, the total investment proposals last year were worth around BDT 468.43 bn, which was around BDT 406.33 bn in 2021. In October-December last year, 303 industrial units placed around BDT 326.55 bn investment proposals.
· The latest quarterly Bida statistics shows that in October-December 2022, the amount of domestic investment proposals was worth around BDT 290.09 bn by 268 industrial units.
From: https://www.tbsnews.net/economy/investment-proposals-rise-2022-575354
Business climate improves slightly
January 27, 2023
· The business climate in the country improved slightly in 2022 compared to 2021 on the back of progress in the areas such as starting a business, infrastructure and labour regulations, according to the Bangladesh Business Climate Index (BBX).
· The index uses 10 pillars to assess the overall business environment: starting a business, access to land, availability of regulatory information, infrastructure, labour regulation, dispute resolution, trade facilitation, paying taxes, technologies adoption, and access to finance.
· The overall score did not improve substantially. Last year, the country scored 61.95 out of 100, up from 61.01 in 2021, according to the BBX report.
From: https://www.thedailystar.net/business/economy/news/business-climate-improves-slightly-3231711
Govt may defer gas price hike to April
January 28, 2023
· The government is likely to defer the enforcement of the newly hiked prices of gas to April instead of February, in a bid to make some breathing room for industries.
· Prime minister's Private Industry and Investment Adviser Salman F Rahman said, The Prime Minister's Office [PMO] has already decided to defer the gas price hike till March, but we are pushing for delaying it by another month. Once a decision is reached, a formal announcement will be made in this regard.
From: https://www.tbsnews.net/bangladesh/energy/govt-may-defer-gas-price-hike-april-575714
UN cuts Bangladesh’s growth forecast
January 27, 2023
· The United Nations (UN) has trimmed its forecast on Bangladesh's economic growth to 6 % for 2023 from its previous projection of 6.4 %.
· The UN also projected deceleration of global economic growth from an estimated 3 % in 2022 to only 1.9 % this year, marking one of the lowest growth rates in recent decades.
· In case of South Asia, the average gross domestic product (GDP) growth is projected to moderate to 4.8 % in 2023 from 5.6 % in 2022
From: https://www.thedailystar.net/business/economy/news/un-cuts-bangladeshs-growth-forecast-3231696
Business
Bproperty to merge with Digital Classifieds Group
January 29, 2023
· Bproperty, a real estate solutions provider in Bangladesh, has announced that it will merge with Australian-based Digital Classifieds Group (DCG).
· The deal means Bproperty now has access to even more resources to enhance its services, while DCG substantially grows its footprint in frontier markets, it said.
From: https://www.thedailystar.net/business/economy/news/bproperty-merge-digital-classifieds-group-3233196
Banking
State banks spend 80% of their forex for govt imports in H1
January 27, 2023
· With dollar support by the central bank, state-owned commercial banks spent 80% of their foreign currencies for government imports in July-December, keeping the domestic food and energy supply normal.
· In the first six months of FY23, the Bangladesh Bank has sold USD 7.8 bn, of which USD 7.2 bn was supplied to the state-owned banks for importing food, fertiliser and energy, according to industry insiders.
· The state banks in the July-December period cleared USD 10.68 bn import bills, including USD 8.41 bn government goods – which is 80% of the total amount.
From: https://www.tbsnews.net/economy/state-banks-spend-80-their-forex-govt-imports-h1-574986
Stocks
Alif Industries now allowed to issue new shares to help C&A Textiles
January 28, 2023
· The Bangladesh Securities and Exchange Commission (BSEC) has allowed Alif Industries – a publicly listed textile company – to issue new shares on behalf of its sponsors and directors, and use the fund to help the C&A Textiles.
· Back in May last year, the securities regulator allowed Alif to issue a BDT 300 bn convertible bond for the same purpose. But that bond is yet to get a subscriber.
· Through these new shares, Alif Industries plans to raise BDT 200 bn, and use this fund to pay off loans taken by C&A Textiles.
· The new shares will be issued at BDT 22 each, which is a 40% discount on the weighted average share price in six months. The last trading price of each share of Alif Industries was BDT 43.4 at the Dhaka Stock Exchange.
note: this post is for research and analysis only