Yusuf Flour emerges as second-most expensive stock riding on abnormal price surge
Yusuf Flour Mills, which returned to the SME Platform of Dhaka Stock Exchange (DSE) five months back after remaining in the over-the-counter market for a decade, became the second highest-priced stock in the capital market. The little-known company's share reached...
A man looks at an electronic display board showing the numbers on the Tokyo Stock Exchange, along a street in Tokyo on December 20, 2022, after Japan announced a surprise tweak to its ultra-loose monetary policy AFP
How 2022 shocked, rocked and rolled global markets
Tallying the final numbers is useful but doesn't even come close to telling the whole story
December 22, 2022
STOCKS | PSI
Disparity in regulators' dividend policies hurts investors
HR Textile allowed to issue bonus shares
Economy
Govt inks €162m energy loan deals with Germany¡¯s KfW Bank
December 23, 2022
¡ñ The Economic Relations Division (ERD) of the Ministry of Finance and the KfW Development Bank of Germany have signed two loan agreements worth €162 million for the projects ¨C Energy Efficiency in the Industry and Renewable Energy Programme II.
¡ñ A grant agreement worth €19.5 million for implementing the "Renewable Energy Program III" was also signed on Thursday (22 December), said an ERD press release issued yesterday.
¡ñ €82 million for the project "Energy Efficiency in the Industry" will support energy-intensive industries in Bangladesh with access to concessionary loans for extension and/or replacement of existing machinery and equipment, and more energy-efficient substitutes for production systems and processes, added the release.
¡ñ The project also aims to realise a final energy consumption and associated CO2 reduction of at least 20%.
¡ñ The other loan of €80 million will go for the project ¨C Renewable Energy Program II. Both the renewable energy programs (II and III) will be executed by IDCOL.
From: https://www.tbsnews.net/economy/erd-germanys-kfw-bank-sign-loan-agreements-worth-eu162m-556746
Apparel export falls 2.15% YoY in first 3 weeks of Dec
December 25, 2022
¡ñ Bangladesh's apparel exports have registered a 2.15% year-on-year negative growth in the first 21 days of December.
¡ñ During that period, the readymade garment sector raked in USD 2.49 billion in contrast to USD 2.54 billion in the same period of the last fiscal year, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
¡ñ The BGMEA came up with the estimation based on data from the National Board of Revenue (NBR) as the Export Promotion Bureau is yet to make the official announcement in this regard.
¡ñ Industry insiders said the apparel export receipts went down due to the inflation in the sector's major export destinations, fueled by the ongoing Russia-Ukraine war.
From: https://www.tbsnews.net/economy/rmg/apparel-export-falls-215-yoy-first-3-weeks-dec-557418
Industrial production costs up 20%-40% on pricier capital goods
December 24, 2022
¡ñ Various industrial sectors ¨C including grain milling, iron and steel, dairy products, sugar, animal feed, transport equipment, motorcycle, food products, basic metals, and wooden furniture ¨C have witnessed 20%-40% surge in production costs in the wake of a 13%-17% hike in capital goods prices over the last one year, according to the Bangladesh Bureau of Statistics (BBS).
¡ñ Besides, the manufacturing sector, the mainstay of the country's economy, has contracted for the first time in the last few years due to an increase of about 8% in the cost of intermediate goods and intermediate capital goods.
¡ñ Economists and industrial entrepreneurs said that the production cost of the industrial sector is increasing due to the increase in the prices of all types of materials including energy and fuel in the global market.
¡ñ At the same time, the cost has also increased due to disruption of production due to power supply. Again due to the rise in the price of the product, the domestic demand has also decreased, which caused a drop in the production of the industrial sector.
From: https://www.tbsnews.net/economy/industrial-production-costs-20-40-pricier-capital-goods-557378
ADP implementation drops slightly in Jul-Nov amid austerity
December 22, 2022
¡ñ The implementation rate of the Annual Development Programme (ADP) has decreased slightly in the first five months ¨C July to November ¨C of the current fiscal year compared to the last as the government has taken some austerity measures to save foreign currencies amid multi-faceted economic pressures.
¡ñ All ministries and departments concerned together spent BDT 47,122 crore or 18.41% of the total ADP allocation in the period, which was 18.61% in the corresponding period of the last fiscal year, according to a report of the Implementation Monitoring and Evaluation Division released Thursday.
¡ñ In pre-Covid years, the ADP implementation rate for the first five months was 20% on average.
From: https://www.tbsnews.net/economy/adp-implementation-drops-slightly-jul-nov-amid-austerity-556418
Banking
Banks allowed to take unrealised interest against relaxed loan repayments into profits
December 22, 2022
¡ñ The Bangladesh Bank has allowed banks to show the unrealised interests against the relaxed repayments of term loans in their profits.
¡ñ "The facility has been given to enhance the banks' financial strength and shock absorbing capacity," said a circular issued by the central bank Thursday (22 December).
¡ñ The latest circular said banks will have to keep a 2% additional provision against the privileged loans. In the case of loans to small and medium entrepreneurs, it will be 1%.
¡ñ The central bank, in a separate circular on Thursday, relaxed the rules of keeping 75-100% cash margins against letters of credit for engine oil and lubricant imports to help the country's power generation uninterrupted and lubricant supply normal.
¡ñ "Instead of fixed rates, cash margin will be determined by the bank-client relations," it said.
https://www.tbsnews.net/economy/banking/banks-asked-relax-lc-margin-rate-lubricant-imports-556306
Deposits thru agent banking keep rising
December 24, 2022
¡ñ Deposits through agent banking outlets increased to BDT 30,626 crore in October from BDT 30,325 crore in September.
¡ñ According to Bangladesh Bank data, deposits through agent banking were BDT 29,279 crore in August, BDT 27,754.5 crore in June and BDT 20,218 crore in June 2021.
¡ñ The highest number of accounts and the highest amount of balance were in the form of savings.
¡ñ In urban areas, there were 17.89 lakh savings accounts which held BDT 1,812.98 crore while 86.19 lakh accounts held BDT 11,578.25 crore in rural areas.
¡ñ According to the BB data, the number of deposit accounts through agent banking was 1.7 crore as of October 31.
From: https://www.newagebd.net/article/189866/deposits-thru-agent-banking-keep-rising
Capital Market
Deshbandhu Sugar Mills to double capacity with BDT 1000cr investment
December 24, 2022
¡ñ Deshbandhu Sugar Mills Ltd ¨C the country's pioneering sugar producer ¨C is going to invest BDT 1,000 crore with a plan to double its production capacity to meet growing local demand.
¡ñ Incorporated in 1932 and privatised in 1999, the firm wants to go public to raise BDT 100 crore from the country's stock market to finance the expansion project, the rest of the money would be arranged through loans.
¡ñ The sugar refinery has already appointed local investment bank City Bank Capital Resources Ltd as a corporate adviser and issue manager for the planned initial public offering (IPO).
¡ñ "Now we want to purchase modern machinery from the European market at an estimated cost of BDT 1,000 crore," said Engineer ABM Arshad Hossain, resident director of the group.
¡ñ Owing to exchange rate volatility, the total cost of the expansion project is yet to be finalised, he added.
¡ñ Engineer ABM Arshad Hossain stated that already around BDT 100 crore has been invested for the factory's modernisation in 2022.
¡ñ At present, the factory has a raw sugar storage of 1,200 tonnes, said the company officials, adding that the total raw sugar storage capacity is 50,000 tonnes.
note: this post is for research and analysis purposes only.