Business News

Daily News Excerpt

 Thursday, July 8, 2021

Quick Snap

Daily deaths cross 200-mark in deadliest week.  Dengue spike rings alarm. Financial regulators attempt to align rules on climate risks. BBS yet to unveil GDP, other data. Stocks continue to fall amid profit taking. Plan big to diversify exports. BSEC approves proposal. BSEC okays Asheq Rahman as DSE chief regulatory officer. BSEC to bid adieu to OTC market. Approval for Pran Agro’s Tk 150cr bond. Genex stocks plunge despite new business deal. SBAC to enhance investment in retail and SME sectors. Stocks slide further as banks keep losing. High-value clearing cheque presentment until 12pm.

News Focus

Macro Economy News:

Daily deaths cross 200-mark in deadliest week

• The first week of July was the deadliest with 1,090 deaths since the coronavirus pandemic broke out in Bangladesh in 2020 as public health experts said the infection and fatality curves might come down after two more weeks.
• In the past 24 hours until Wednesday morning, the country recorded the highest 201 single day deaths as the registration for vaccine resumed on Wednesday after a break of two months. 

Dengue spike rings alarm

• After a lull last year, dengue infections have been on the rise again with the spike of cases indicating a situation similar to that of 2019 when Bangladesh recorded over one lakh dengue cases and 179 deaths.
• In May 2019, the number of dengue patients in the country was only 193, but it went up to 1,884 the next month. Then, in July, cases jumped to 16,253 before the cumulative figure stood at 1,01,354 — the highest ever number of dengue cases in a calendar year.

Financial regulators attempt to align rules on climate risks

• Global regulators published a blueprint on Wednesday to give a “sense of direction” to proliferating initiatives for tackling climate-related financial risks before they fragment markets. The Financial Stability Board (FSB), which coordinates financial rules for the G20 group of nations, said its “roadmap” seeks to coordinate approaches to disclosures by companies and plug gaps in the data needed to spot financial stability “vulnerabilities” and develop tools to address them.
• The roadmap attempts to align rules still in the planning stage between now and 2023 to avoid more divergences between various measures for the same activity. A patchwork of disclosure methods has prompted a global regulatory initiative to set up an International Sustainability Standards Board (ISSB) to give cross-border investors consistent information.Key point of the news

BBS yet to unveil GDP, other data

• Delay in Gross Domestic Product (GDP) estimation has created a mess among the researchers and businesses concerned, as the government’s statistical department is yet to disclose the country’s output data, insiders said on Monday.
• The Bangladesh Bureau of Statistics (BBS) has so far failed to reveal its provisional estimation on the country’s economy size and relevant statistics of the last fiscal year (FY), 2020-21, and finalise those of the previous FY.
• Planning Minister M A Mannan, after the National Economic Council (NEC) meeting on May 18, told journalists that the country’s GDP size for the FY 2021 had picked up to US$ 355.04 billion even after severe impact of the Covid-19 pandemic on the economy.

Market News:

Stocks continue to fall amid profit taking

• The stock market continued to fall for a second consecutive day yesterday owing to a profit booking tendency prevailing among investors.
• Despite this, companies whose performances were not up to the mark remained bullish.
• From today, the pre-opening session begins at 9:45am and the post-closing session ends at 2:15pm, said a BSEC press release. The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), nosedived 19.35 points, or 0.31 per cent to 6,177.21.

Plan big to diversify exports

• Bangladesh needs to formulate long-term plans on how to enhance its export basket after graduating from the UN’s group of Least Developed Countries (LDCs), experts say at a webinar held yesterday.
• Related measures could include providing low cost and easy access to finance, adequate policy support along with fiscal and non-fiscal incentives for non-garment export sectors while ensuring equal treatment and skills development, they said.

BSEC approves proposal

• The securities regulator on Wednesday approved the proposal regarding the formation of the board of governance under which the operations of Tk 210 billion capital market stabilisation fund will be conducted.
• The approval came Wednesday at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).

BSEC okays Asheq Rahman as DSE chief regulatory officer

• The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday approved M Asheq Rahman as the chief regulatory officer of Dhaka Stock Exchange (DSE) amid criticism and controversy.
• BSEC, the capital market regulator, sent a letter to the DSE Wednesday saying the bourse can appoint Asheq Rahman as its new chief regulatory officer after verifying some information. If he does not join within 30 days, the DSE will have to appoint Md Shawkat Jahan, the next candidate shortlisted, said BSEC.

BSEC to bid adieu to OTC market

• The Bangladesh Securities and Exchange Commission (BSEC) is taking preparations to abolish the “Over the Counter (OTC) market” of the country’s stock exchanges.
• The commission is developing a working plan which will be finalised within a short time, said sources at the BSEC.

Food & Allied News:

Approval for Pran Agro’s Tk 150cr bond

• A non-convertible, coupon bearing green bond of Tk 150 crore of Pran Agro was approved at a commission meeting of the Bangladesh Securities and Exchange Commission (BSEC) yesterday.
• Earlier last May, Pran Agro issued a non-convertible and redeemable bond worth Tk 210 crore, equivalent to $25 million, with 100 per cent credit guarantee from a global company, the first of its kind in the country.

IT News:

Genex stocks plunge despite new business deal

• Stocks of Genex Infosys dropped yesterday despite news being made public of it entering into a three-year deal with Edotco Bangladesh Company to provide 360 degree internet of things (IOT)-based security solutions, including monitoring and theft protection.
• The fall was of 2.70 per cent to Tk 90.20, according to the Dhaka Stock Exchange (DSE).

Bank and Banking News:

SBAC to enhance investment in retail and SME sectors

• South Bangla Agriculture and Commerce (SBAC) Bank Limited has planned to boost its financing in retail and small and medium enterprises (SME) for minimising risk within the next two years, the bank’s top executive has said.
• Under the plans, the investment in retail and SME will be reached at 50 per cent of its total loans and advances by 2023 from the existing level of 30 per cent.
• The fourth generation private commercial bank (PCB) has also planned to go digital banking gradually instead of the existing ‘brick and mortar’ one to provide world-class services to the customers, according to the CEO.

Stocks slide further as banks keep losing

• Stocks extended losing streak for the second consecutive session on Wednesday as cautious investors continued to book profit on quick-gaining issues amid virus worries.
• Meanwhile, trading to be opened for four hours from today (Thursday) at 10:00am to 2:00pm in line with the banks revised transaction hours during the strict lockdown (July 8 to July 14).Trading, however, will remain closed on Sunday due to closure of banks.

High-value clearing cheque presentment until 12pm

• The Bangladesh Bank has changed the daily timings for interbank cheque clearing as coronavirus lockdown extended until 14 July.
• In a notification to the scheduled banks Wednesday, the central bank said the new timing, with the high-value clearing cheques (Tk5 lakh and above) presentment until 12pm, will be effective on Thursday.