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Bangladesh Shipping Corporation leads the top turnover chart
Lower sales, high cost of raw materials halves Linde Bangladesh's profit in Jan-Mar 2023
DSE turnover fell by 20% on Sunday
Reliance Insurance’s profit rises over 24% in January-March quarter
Reliance Insurance Ltd registered a 24.2 per cent year-on-year rise in profit to Tk 16.72 crore in the first quarter of the current financial year.
Islamic Finance’s profit dips 77%
Islamic Finance & Investment Ltd's profit plummeted to more than 77 per cent year-on-year to Tk 4.21 crore in 2022.
DSE, CSE trade lower
The Dhaka Stock Exchange (DSE) fell in the morning trade today.
Islamic Finance’s profit dips 77%
Islamic Finance & Investment Ltd's profit plummeted to more than 77 per cent year-on-year to Tk 4.21 crore in
Linde reports lowest profit in 10 quarters for Jan-Mar
Linde Bangladesh has reported the lowest profit in 10 quarters for January-March this year, mainly due to costlier raw materials. Business has been tougher also because of the stronger dollar and a sharp decline in revenue from the healthcare segment. Linde has reported Tk 140 million in profit i
Economy
Current account deficit declines to USD 3.6bn in 9M FY23 from USD 14.3bn in 9M FY22
May 11, 2023
· Bangladesh sees its current-account deficit narrow, mainly following a drastic fall in import of goods and services.
· The current-account deficit or CAD contracted nearly four times year on year to USD 3.6bn in July-March period.
· Imports plummeted 12.3 % during the period while exports grew by 7.8%, leading to a reduction in the trade imbalance to USD 14.6bn, down by more than 41% from its corresponding period a year before.
· However, the overall balance-of-payments deficit increased over 2.6 times in July-March this fiscal year relative to the same period last year, reaching over USD 8.0bn, according to the data prepared by the central bank of Bangladesh.
Bangladesh's GDP growth projection for FY23 revised down to 6.03%
May 11, 2023
· Bangladesh's GDP growth projection has been lowered further to 6.03% for the current fiscal year, State Minister for Planning Shamsul Alam said On Thursday.
· This growth rate surpasses the estimates made by the Asian Development Bank and the World Bank, although it is slightly lower than the government's initial projection of 6.5%.
· According to The Bangladesh Development Update April 2023 by the World Bank, the country's gross domestic product (GDP) is expected to increase by 5.2% in the fiscal year 2023. This lower projection is influenced by factors such as elevated inflation, tighter financial conditions, disruptive import restrictions, and global economic uncertainty.
· In line with these figures, the Asian Development Bank (ADB) reported in April that Bangladesh's GDP will grow by 5.3% in FY23.
From: https://www.tbsnews.net/economy/bangladeshs-gdp-growth-projection-fy23-revised-down-603-629998
https://www.thedailystar.net/business/economy/news/gdp-growth-slows-603-fy23-3317566
Per capita income falls to USD 2,765 as BDT depreciated
May 11, 2023
· The per capita income in Bangladesh fell 1% year-on-year to USD 2,765 in 2022-23.
· State Minister for Planning Shamsul Alam, however, said per capita income had grown in terms of taka in pace with the economy, which also grew 6.03% this fiscal year.
· Per capita income was USD 2,824 in 2021-22 fiscal year, up from USD 2,591 in 2020-21.
· The BBS survey said every household in the country earns an average of BDT 32,422 per month. After splitting the amount among a little over four-member family, the per capita income stands at BDT 7,614.
From: https://www.tbsnews.net/economy/capita-income-falls-2763-630090
RMG exports reach USD 38.57bn with 9.09% YoY growth during July-April
May 13, 2023
· Bangladesh's apparel industry has recorded a strong year-over-year (Y0Y) growth of 9.09% for the period of July-April in FY2022-23, according to the data released by the Export Promotion Bureau (EPB).
· The country's total RMG export during this period reached USD 38.57bn, out of which the EU market accounted for USD 19.20bn, accounting for 49.78% of total exports.
· The EPB data revealed that the country's export to EU countries grew by 8.58% compared to the same period of the previous fiscal year.
· On the other hand, Bangladesh's export to the USA market faced a negative growth of 7.13% for the same period and reached USD 6.94bn.
· Exports to non-traditional markets have also shown a positive trend with a growth rate of 30.80%, reaching USD 7bn for the same period.
BDT 2,630bn ADP approved with highest allocation for transport
May 11, 2023
· Of the BDT 2,630bn budget for the Annual Development Programme (ADP) for upcoming fiscal year 2023-24, BDT 940bn or 35.74% will come from foreign sources as project loans, according to the planning commission.
· The ADP of FY24 is 6.88% higher compared to that of the outgoing year.
· In the outgoing fiscal year, the government reduced the contribution of project loans from the initial proposal of BDT 930bn to BDT 745bn, accounting for 32.73% of the total outlay. In the previous year, foreign loans accounted for 33.83% of the total ADP budget.
From: https://www.tbsnews.net/economy/tk263000cr-adp-approved-highest-allocation-transport-629982
Rules allowing exit from locked-in TIN ready
May 13, 2023
· The government is set to introduce exit policy for taxpayers for the first time to rid cross-sections of people, including expatriates, locked in TIN forever once taken.
· Under the provision, to be placed with the new budget before Parliament on June 1, 2023, taxpayers will be able to apply for discontinuation of their Taxpayer Identification Number (TIN) to the tax authority by explaining valid reasons.
· They would be able to resume the TIN again by submitting application to the tax department.
· Currently, there are 8.6 million TIN-holders under the National Board of Revenue (NBR). Of them, only around 3.2 million submit tax returns.
From: https://thefinancialexpress.com.bd/economy/bangladesh/rules-allowing-exit-from-locked-in-tin-ready
5-yr savings certificate: No manual reinvestment after Jun 29 next year
May 12, 2023
· Investors will no longer be able to reinvest manually in the state-run 'Five-Year Bangladesh Savings Certificate' after June 29, 2024.
· But, if they want, they can invest in the same scheme online on the day, according to a gazette notification, issued by the Internal Resources Division of the Finance Ministry on Sunday.
· It said, "As per the Savings Certificates Rules, 1977 (Amended, 2015) Five-Year Bangladesh Savings Certificate issued manually up to June 30, 2019 will receive yield till the maturity period June 29, 2024, and after that any Five-Year Bangladesh Savings Certificate opened manually will not be eligible for reinvestment benefits."
Tobacco
British American Tobacco to invest BDT 610mn for capacity expansion
May 11, 2023
· British American Tobacco Bangladesh Company Limited is going to invest BDT 607mn in its factory to purchase equipment and a centralised uninterrupted power supply device.
· According to the company's disclosure on the Dhaka Stock Exchange (DSE) website on Thursday, British American Tobacco will finance this investment through its own funds and bank loans.
· The BATB will use the money to purchase winnower and tobacco recovery equipment, hinge-lid packaging line and a centralised uninterrupted power supply device.
https://www.thedailystar.net/business/economy/news/batb-invest-tk-60cr-3317501
Automobile
Carbon tax coming for 2nd car
May 11, 2023
· The government is likely to introduce carbon tax for the first time from the next fiscal year with the aim of reducing carbon emissions, addressing city traffic congestion, and promoting the use of public transport.
· According to finance ministry officials, taxpayers who own multiple cars will have to pay an additional tax ranging from BDT 25,000 to BDT 2,00,000 during the registration and renewal of a second car.
· The carbon tax rates will depend on the vehicle's engine capacity and tax will be fixed on the higher capacity vehicle in case of multiple ones.
From: https://www.tbsnews.net/economy/carbon-tax-coming-2nd-car-630254
https://thefinancialexpress.com.bd/economy/bangladesh/carbon-tax-on-cars-likely-in-next-budget
Runner to issue BDT 2.65bn bond to fuel three-wheeler business
May 13, 2023
· Runner Automobiles will raise USD 25mn, equivalent to around BDT 2.65bn, through issuing a non-convertible guaranteed bond to fuel its eco-friendly three-wheeler business, according to a disclosure through the Dhaka Stock Exchange (DSE).
· The money would be utilised partly to set up a rooftop solar power system for its three-wheeler manufacturing facility, and the rest of the amount would be used to augment the customer base for its liquefied petroleum gas (LPG) and compressed natural gas (CNG)-run three-wheelers as well as the electric ones through credit sales.
From: https://www.tbsnews.net/economy/stocks/runner-issue-tk265cr-bond-fuel-three-wheeler-business-630002
Business
Most multinational cos show signs of strong recovery in Jan-March
May 11, 2023
· Most listed multinational companies posted higher profits in the first quarter of this year compared to the same period last year on the strength of managerial efficiency, brand value, and product price hike.
· Earnings of six, out of eight that published their first quarter reports, increased between 5.5% and 102% year-on-year in January-March.
· Eight companies altogether logged about BDT 11.14bn net profit in the quarter through March, which is a 13% increase from the same quarter a year ago, according to their unaudited financial statements.
note: this post is for research and analysis only