Why cheap loans for investments are not cheap enough
Both investors and market intermediaries do not see margin loans as an investment opportunity even after the securities regulator relaxed rules for injecting borrowed money into stocks. That is not because of the market being bearish for long. Rather, the price movement restriction is what comes
Stocks open week on high note
The stock market opened higher on Sunday as the buoyant investors continued to put fresh funds on lucrative stocks in anticipation of quick-gain. Following last week’s positive trend, the market soared at the opening and the key index of the Dhaka Stock Exchange (DSE), went up by 16.92 point
BSC tops turnover chart for third week on DSE
Ten most-traded firms accounted for 27 per cent of the turnover on the Dhaka Stock Exchange (DSE) in the outgoing week, with Bangladesh Shipping Corporation (BSC) dominating the turnover list. The BSC had been leading the market turnover chart for the past three weeks as investors chased its share
Weekly market review: Buying spree pushes stocks to six-month high
Stocks climbed to its highest level in more than six months, extending the winning streak for the third straight week, as the buoyant investors snapped up lucrative shares in anticipation of quick gains. Of the five trading days this week, three sessions closed higher while two saw moderate correc
Bank Asia holds training on ‘Islamic Banking Investment Operations’ for its officials
Bank Asia organised a two-day long training programme on 'Islamic Banking Investment Operations' for its officials at
Anwar Galvanizing leads the top turnover chart
DSE turnover hits 134-day high on Sunday
AFC Agro’s profit declines by 56% in Jul-Mar
One Bank to issue bond worth Tk500 crore
Dhaka bourse opens higher on Sunday
How to maximise tax rebates through planned investments
Lankan Alliance Finance asked to resubmit IPO application
Economy
Govt to avoid being the guarantor of loans to reduce risk
May 27, 2023
· The government plans a significant reduction in loan guarantees for state-owned enterprises in a bid to boost the capacity of the institutions and reduce external debt burden.
· The move comes against the backdrop of a staggering 70% increase in the volume of guarantees against loans provided by various domestic and foreign lenders to state-owned enterprises since 2019.
· According to information revealed in the budget for the current fiscal 2022-23, the government had extended guarantees of BDT 926bn (USD 8.7bn) against loans taken by various state institutions until 30 June 2022, which was BDT 570bn (USD 5.4bn) three years ago.
From: https://www.tbsnews.net/economy/govt-avoid-being-guarantor-loans-reduce-risk-639162
Reserves stood at USD 29.9bn
May 25, 2023
· As of Thursday, reserves stood at USD 29.9bn, as the central bank sold USD 59mn to banks to cover government import payments.
· This decline follows a previous drop below USD 30bn on 9 May, when a payment of USD 1.18bn through the Asian Clearing Union (ACU) for the March-April import bill contributed to the decrease.
From: https://www.tbsnews.net/economy/banking/reserves-plummet-below-30-billion-638250
Govt to double gain tax on land, flat registration
May 27, 2023
· The government plans a two-fold hike in the rates of gain tax on land and flat registration, and penalties for late submission of income tax returns in the upcoming fiscal 2023-24.
· Under the new measures, the gain tax on land and flat registration will be raised to 8% from 4% in the Rajdhani Unnayan Kartripakkha (Rajuk) and Chattogram Development Authority (CDA) areas, according to officials of the finance ministry.
· Additionally, the maximum limit for the gain tax will be raised to BDT 2mn (USD 18,868) per katha or 10% of the deed value, whichever is higher, up from the current BDT 1.08mn (USD 10,189) and 4%, respectively.
From: https://www.tbsnews.net/economy/budget/govt-double-gain-tax-land-flat-registration-638738
Surcharge free limit to be raised from BDT 30mn to BDT 40mn
May 25, 2023
· The government plans to raise the surcharge-free limit of wealth from BDT 30mn (USD 0.3mn) to BDT 40mn (USD 0.4mn) from the next fiscal year, according to sources at the finance ministry.
· According to the National Board of Revenue (NBR), currently rich people have to pay a 10% surcharge if their assets are worth from BDT 30mn (USD 0.3mn) to BDT 100mn (USD 0.9mn), or they have more than one car, or own over 8,000 square feet of real estate in the city area.
· The surcharge rate is 20% for those whose assets worth from BDT 100mn (USD 0.9mn) to BDT 200mn (USD 1.9mn), and 30% for those with assets worth from BDT 200mn (USD 1.9mn) to BDT 500mn (USD 4.7mn). Taxpayers with assets exceeding BDT 500mn (USD 4.7mn) have to pay a 35% surcharge, according to the NBR.
· According to the National Board of Revenue, around 15,000 taxpayers paid surcharge amounting to BDT 6bn (USD 56.6mn) in FY21.
From: https://www.tbsnews.net/economy/surcharge-rich-be-eased-638298
Energy
Titas to issue BDT 2.58bn preference shares to govt at flexible conditions
May 25, 2023
· Titas Gas Transmission Company Limited has been instructed to issue preference shares to the government against its total BDT 2.58bn (USD 24.3mn) share money deposit with the state-owned gas distributor for the Dhaka and Mymensingh region.
· The proposed conditions imply, if Titas makes more profits the government will get high dividends against the preference shares and in cases of annual losses no dividends will be given.
· The formula adopted suggests if Titas issues preference shares against its entire BDT 2.58bn (USD 24.3mn) in share money deposit from the government, the government would be entitled to get BDT 164.5mn (USD 1.6mn) in preferred dividends for the fiscal 2021-22, a 6.37% yield for the particular year.
· At the current capital structure, if the entire share money deposit is converted into preference shares Titas Gas will have to pay 20.7% of one-fourth of its net profit after taxes.
Miscellaneous
As shipping cos build warehouses in Ctg ICDs, exports to get faster, safer
May 27, 2023
· Big shipping companies, freight forwarders and logistics entrepreneurs are teaming up with private inland container depots (ICDs) in Chattogram to develop warehouse facilities for faster and safer handling of export goods.
· Maersk, one of the world's largest shipping companies, has already constructed two warehouses on three lakh square feet of space at Chattogram's Ispahani Summit Alliance Terminal Limited (ISATL) and Vertex Off-Dock Logistic Services Ltd.
· Another warehouse with 2.10 lakh square feet of space is being constructed at Summit Alliance Port Limited (SAPL). It will be opened in April next year. Once it becomes operational, Maersk will have about five lakh square feet of private warehouse facilities at three ICDs.
· In addition to shipping companies, a number of freight forwarder companies have started developing joint-venture storehouses in ICDs.
More duty planned on cashew nuts to protect local industry
May 27, 2023
· The government has planned to raise the import duty on processed cashew nuts with the aim of supporting the thriving local industry.
· According to finance ministry sources, the government may increase import duty on processed cashew nuts from 15.3% to 43% in the budget of 2024 FY.
From: https://www.tbsnews.net/economy/budget/more-duty-planned-cashew-nuts-protect-local-industry-638878
note: this post is for research and analysis only.