daily news flash, 11th july, 2017 - ebl securities ltd. news flash, 11th july, 2017 3 the list...

Daily News Flash, 11th July, 2017

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TRADE DEFICIT WIDENS ALARMINGLY......................................................................................... 1

JS UNVEILS LIST OF TOP 100 LOAN DEFAULTERS ......................................................................... 2

CPD FOREWARNS TK 550B REVENUE SHORTFALL IN FY 18 ......................................................... 3

CORE INDEX HITS ALL-TIME HIGH ............................................................................................... 4

KEYA LEADS TRANSACTION CHART FOR THIRD DAY .................................................................... 5

OIL DROPS AMID RISING US PRODUCTION .................................................................................. 6

GOLD SEES BIGGEST FALL SINCE MARCH .................................................................................... 7

BDESH, SPORE SIGN 3 MOUS TO STRENGTHEN BUSINESS TIES ................................................. 7

EXPORT EARNINGS FROM GERMANY CROSS $5B AS US, UK MARKETS SLUMP IN FY17 ............... 8

ADP SPEND CROSSES TK 1 LAKH CRORE FOR THE FIRST TIME ..................................................... 9

EXPORT GROWTH DIPS TO 15-YEAR LOW ................................................................................. 10

STOCKS CONTINUE GAINING STREAK ........................................................................................ 10

TK 844 CR TRANSACTED THROUGH MFS PER DAY: MUHITH ..................................................... 11

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TRADE DEFICIT WIDENS ALARMINGLY The country's trade deficit crossed $9 billion level in July-May period of the last fiscal year (FY17), according to the latest statistics of Bangladesh Bank (BB). A leading economist of the country considered the level of deficit to be alarming and stressed the need for arresting the erosion in the overall balance of payments (BoP). The trade deficit stood at $9.19 billion in the first 11 months of FY17, showing that the deficit widened by about 42.50 per cent from $6.45 billion in the same period of the previous fiscal year (FY16). Relevant statistics showed slower growth of merchandise exports compared to higher growth of imports during the period under review, leading to widening of the trade gap. The latest data on the country's BoP also showed that deficit in trade in services crossed $3 billion mark in the same period. It stood at $3.1 billion in July-May period of FY17, rising from $2.43 billion in the same period of FY16. Trade in services is non-tangible commercial activities where both service providers or suppliers and consumers make transactions. It includes travel, telecommunication, financial services, transport and other business and government services. BB statistics also showed that services export, as stated in the balance of payments table, stood at $3.28 billion in the period under review, which was $3.12 billion during the same period of FY16.

DSEX 52.89 Gold (Ounce) $1,212.50 Dollar 81.70 (Buy) 82.70 (Sell) CSCX 97.66 Oil (Barrel) $43.81 Euro 90.55 (Buy) 94.55 (Sell)


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On the other hand, services import surged to $6.38 billion in July-May period of the last fiscal year from $5.55 billion in the same period of FY16. Higher trade deficit and a significant slide in remittance put the current account balance under strain, according to the BB statistics. As a result, the current account balance in the first 11 months of the past fiscal year suffered a huge deficit of $ 2.1 billion as compared to a big surplus of $3.19 billion in the same period of FY16. When contacted by the FE, Dr Ahsan H Mansur, executive director of the Policy Research Institute (PRI) of Bangladesh, described the overall BoP situation as alarming. "There exists a substantial current account deficit and if the trend persists for another year, the deficit will be even bigger," he cautioned. "Who is going to finance such deficit?" he said. Dr Mansur also mentioned that if the country could not arrest the slide in remittance and push the exports up, the situation would deteriorate further as imports were surging. In this connection, he suggested adopting demand management strategy to contain further deterioration in the current account. According to the economist, the policymakers needed to provide incentives to exports through exchange rate management. Some depreciation of the local currency would also help contain the faster rise in imports. He also favoured some level of tightening in the upcoming monetary policy to holdback the credit growth in the private sector. "It is the time to focus more on macro stability, not on growth," he added. The capital account along with the financial account, however, posted a good surplus during the period -- balance of financial account surged to $4.19 billion, which was $1.17 billion in the same period of FY16. Higher inflow of foreign investment and comparatively less pressure on the foreign debt repayment facilitated the financial account to stay at a comfortable level. Bangladesh Bank data showed that net inflow of FDI jumped by 27.75 per cent to $1.62 billion in July-May period of the last fiscal year while portfolio investment jumped by around six times to $324 million during the period. Higher surplus of the financial account helps to ease the pressure on overall balance to some extent. The financial account is actually a part of the capital account, but the International Monetary Fund (IMF) uses it as one of the three major accounts of the BoP for a better accounting procedure. Latest statistics of the central bank showed that overall balance stood at a surplus of $2.68 billion in the first 11 months of FY17, which was $4.14 billion in the same period of FY16. Wider deficit in current account contributed to decline in the BoP surplus. Source: http://print.thefinancialexpress-bd.com/2017/07/11/177482

JS UNVEILS LIST OF TOP 100 LOAN DEFAULTERS Placing a list of the country's top 100 loan defaulters in Parliament, Finance Minister AMA Muhith said on Monday the classified loan now stands at Tk 1.11 trillion (111,347 crore), report agencies. "As per the data of the Credit Information Bureau (CIB) of Bangladesh Bank, the amount of classified loan in banks and financial institutions is Tk 1113.47 billion as of April 2017," he said replying to a starred question from Awami League MP Mohibur Rahman Manik. Muhith was however absent in Parliament on Monday and Food Minister Qamrul Islam answered the questions addressed to him. According to the list placed by the finance minister, the top 10 loan defaulters are Mohammad Elias Brothers (PVT) Ltd, Jasmir Vegetable Oil Ltd, Max Spinning Mills Ltd, Benetex Industries Ltd, Dhaka Trading House, Anowara Spinning Mills, Yasir Enterprise, Quantum Power System Ltd, MM Vegetable Oil Products Ltd and Alppa Composite Towel Limited.

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The list mentions two individuals, the rest are companies. It provides a combined amount, Tk 1.11 trillion until this year's month of April, but does not assign specific figures to the defaulting individuals and organisations. The two individuals are - Mojibur Rahman Khan and Emdadul Haque Bhuiyan. The companies, Bismillah Towels and Jamuna Agro Chemical, have been mentioned twice. Full list of the defaulters: Mohammad Elias Brothers, Jesmin Vegetable, Max Spinning Mills, Benetex Industries, Dhaka Trading House, Anwara Spinning Mills, Yasir Enterprise, Quantum Powers Systems, MM Vegetable Oil Products, Alpha Composite Towels, Western Marine Shipyard, Max International, Hall-Mark Fashion, Monno Fabrics, Fair Trade Fabrics, Saharish Composite Towel and Nurjahan Super Oil. Saleh Carpet Mills, SK Steel, Chowdhury Knitwear, Ranka Shoel Composite Textile Mills, T and brother's Knit Composite, Tania Enterprise Unit, Rahman Spinning Mills, S Spinning Line, Hazi Islam Uddin Spinning Mills, Gram Bangla NPKS Fertilizer & Agro Industries, Tele Barta, Cotton Corporation, Virgo Media, Sonali Jute Mills, Expert Tech, MBA Garments and Textiles, Walmart Fashion, One Denim Mills, Agro Industries, Himalaya Paper and Board Mills, MK Shipbuilders and Steels and Ranka Denim Textile Mills. MAC Shipbuilders, Biswas Garments, Mustard Trading, Hindul Wali Textile, Islam Trading Consortium, Capital Banani One, Marin Vegetable Oil, Orjon Carpet and Jute Weaving, A Zaman and Brothers, Ornate Services, Doel Apparels, Ashik Composite Textile Mills, Moon Bangladesh, Mostafa Paper Complex, HR Spinning Mills, Bismillah Towels, Keya Yarn Mills, Tabassum Enterprise, Apex Weaving and Finishing Mills, The Well Tex, Delta Systems, Zahid Enterprise, Hilful Fuzul Samaj Kalyan Sangstha, New Rakhi Textile Mills, Ali Paper Mills, Alltex Industries, Northern Distilleries, Lucky Shipbuilders, Jamuna Agro Chemical, Maksuda Spinning Mills, Shapla Flour Mills, Siddik & Company, Jamuna Agro Chemical, Monwara Trading, AK Jute Trading and Mahbub Spinning. Al Amin Bread and Biscuit, Profusion Textiles, Matex, Super Six Star Ship Breaking Yard, Techno Design & Development, Bismillah Towel, NAM Corporation, Japan-Bangladesh Security Printing and PA, Sardar Apparels, Z&J International, Biswas Textile, Modern Steel Mills, New Auto Define, Anika Enterprise, D'Afroz Sweater Industries, Mobarak Ali Spinning Mills, Afil Jute Mills, Reza Jute Trading, RK Foods, Alpha Tobacco Manufacturing Company, Fair Expo Weaving Mills, Care Specialized Hospital and Research Centre and Fias Enterprise. Source: http://print.thefinancialexpress-bd.com/2017/07/11/177481

CPD FOREWARNS TK 550B REVENUE SHORTFALL IN FY 18 The Centre for Policy Dialogue (CPD) predicted government's revenue shortfall between Tk 430 billion and Tk 550 billion in the current fiscal following the postponement of the new VAT law, and suggested some remedies. It said this inability to execute the law will have serious consequences for revenue mobilisation. However, the private think-tank noted that any significant impact, in terms of budget deficit, unlikely as budget is never executed fully. The CPD estimated the revenue shortfall by presuming budget- execution rates down at 85 to 90 per cent. It said the government should borrow to offset this shortfall by enhancing foreign aid and credit from banking sources by avoiding costly borrowing using the tools like the national saving instruments. It said the government needs to restrain borrowing from sales of saving certificates. It suggested digitizing sales of the national saving certificates to identify its nature, saying that individual purchase ought to be scrutinised. The policy think-tank also said institutional purchase of the saving certificates should be discouraged.



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Likening the government decision not to implement the VAT Act 2012 to 'crash landing of plane', the CPD, however, said the VAT online project should not be stopped in order to implement the same later. Reforms of other laws, like those on customs, direct tax and transfer pricing, as part of widening and making those more progressives are also seen imperative. The CPD came up with the observations and recommendations at a press briefing on 'the national budget 2017-18: post-approval observations' at city centre. Its distinguished fellow Dr Debapriya Bhattacharya presented keynote paper while executive director Dr Fahmida Khatun moderated discussions. Dr Bhattacharya said the VAT Act 2012 could not be implemented mainly for three reasons: (1) there was no adequate technical preparation (2) failure to realise its social implications and (3) lack of political consensus. He said the CPD always stood for introducing the new act as it is "most progressive" but they had objection to the uniform VAT rate of 15 per cent. The economist thought if the government had taken cognizance of the CPD-proposed rate of 12 per cent, then such a situation might not have happened. The CPD, however, said the government should now consider six elements of the work plans: they are to maintain momentum of revenue-mobilisation efforts, reasonably restrain non-development expenditure, prioritise certain development expenditure, discourage costly borrowing, be vigilant regarding disquieting macroeconomic developments and move on with reform agenda. Bhattacharya noted some allocations for non-development expenditure in the budget which they the think-tank views may be restrained. "The block allocation worth Tk 33.27 billion needs to be streamlined," he said. He was critical of the investment in recapitalisation for the state-owned banks. "There is no justification for giving Taka for the state-owned banks." There is budgetary allocation of Tk 20 billion earmarked for replenishing the banks' capital shortfall. The think-tank reiterated its suggestion for the formation of a short-term banking commission for streamlining and bringing transparency in the banking sector. Bhattacharya noted that not only the state-owned banks, bad loan and other mismanagement are also surfacing in private banks also, including one first- generation bank. He said some regulatory organisations including the central bank are not monitoring activities of the organisations belonging to them, but, most importantly, there is need for political 'signal' for the institutions to strengthen their monitoring. Bhattacharya feels that other allocations like Tk 10.66 billion for planning division and Tk 20 billion for investment in shares may be restrained. "We may hold back at least Tk 250 billion from the non-development expenditure," the economist noted. The CPD fellow said more stringent measures should be implemented to reduce illicit financial outflows and actions be taken in revealed cases. "Otherwise it will be injustice to the honest taxpayers." Another CPD distinguished fellow, Dr Mustafizur Rahman, director (Research) Khandkar Golam Moazzem and senior research fellow Towfiqul Islam Khan were present and replied to the media queries at the briefing. Source: http://print.thefinancialexpress-bd.com/2017/07/11/177480

CORE INDEX HITS ALL-TIME HIGH Stocks extended the winning spell Monday, with key index of the prime bourse hitting new high amid a gradual revival of investor confidence and an increased supply of fresh funds.



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DSEX, the prime index of the Dhaka Stock Exchange (DSE), which replaced the DGEN in four-and-a-half-year back, rose 52.89 points or 0.91 per cent to finish at a new high of 5,827, surpassing the previous high of 5,783 points recorded last week. The country's prime bourse launched the DSE Broad Index (DSEX) on January 27, 2013 with a base point of 4,055.90, replacing the DSE General Index (DGEN). However, DGEN, the then key index of the DSE, rose to an all-time high at 8918.51 points on December 5, 2010, when the market was bullish before crash. Daily turnover value also soared to four months high to Tk 12.64 billion on the country's premier bourse on Monday, climbing further by 9.0 per cent over previous day's mark of Tk 11.60 billion as optimistic investors continued their buying spree amid optimism. It is also the biggest single-day transaction since March 22, this year, when the turnover totaled a record Tk 12.90 billion. Along with turnover and prime index, the total market capitalisation of the DSE also rose to an all-time high of over Tk 3,891 billion on the day, surpassing the previous high of Tk 3,883 billion recorded last week. Market insiders attributed the current market trend to investors' growing confidence and fresh investment in the stock market. They said the low bank interest rate on deposit, possible interest cut on saving instruments, revision of budget coupled with optimism of June closing year-end earnings and dividend declarations continued to prompt investors to inject fresh funds into stocks, taking the market turnover to fresh four months high. "The market made another bullish move closing the index at historic high as optimistic investors continued their buying interest on large-cap issues amid optimism," said an analyst at a leading brokerage firm. The market started with an upward trend which continued till end of the session with no sign of reversal, finally ended nearly 53 points higher. The two other indices also closed higher. The DS30 index, comprising blue chips jumped 13.87 points or 0.65 per cent to finish at 2,122. The DSE Shariah Index (DSES) rose 5.61 points or 0.43 per cent to close at 1,320. The port city bourse, the Chittagong Stock Exchange (CSE), also closed higher with its Selective Categories Index - CSCX -advancing nearly 98 points to settle at 10,917 points. Gainers beat losers as 144 issues closed higher, 90 closed lower and 29 remained unchanged on the CSE. The port city bourse traded 32.53 million shares and mutual fund units' worth Tk 813 million in turnover. Source: http://print.thefinancialexpress-bd.com/2017/07/11/177466

KEYA LEADS TRANSACTION CHART FOR THIRD DAY Keya Cosmetics dominated the premier bourse's transaction chart for the three consecutive sessions Monday while top ten traded companies grabbed nearly 24 per cent turnover. Market insiders said investors continued to put their fund into Keya Cosmetics shares following the ownership change rumors on the trading floor. However, Keya Cosmetics informed the DSE in a query on Monday that there is no undisclosed price sensitive information of the company for recent unusual price hike of shares and increase in trading volume. The total transaction on the Dhaka Stock Exchange (DSE) stood at Tk 12.64 billion on the day, which was 9.0 per cent higher than the previous day's value of Tk 11.60 billion.



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Keya Cosmetics, Saif Powertec, Beximco, Confidence Cement, Prime Bank, Fu-Wang Food, Mercantile Bank, Olympic Accessories, Appollo Ispat Complex and Bangladesh Building Systems were the most-active shares in terms of value on the DSE. Of them, share price of all top 10 traded companies advanced up to 8.83 per cent. According to the statistics available with the DSE, about 38.18 million shares of Keya were traded, generating a turnover of Tk 671 million, which was 5.30 per cent of the premier bourse's total turnover value. The company's share price hovered between Tk 17.50 and Tk 18.50, before closing at Tk 18.20 on the day, advancing 2.25 per cent over the previous session. In the last one month, the company's share price rose 30 per cent. The company's consolidated third quarter (Q3) earnings per share (EPS) stood at Tk 0.47 for January- March period of 2017 as against Tk 0.51 for the same period a year ago. In nine months for July, 2016 to March, 2017, consolidated EPS was Tk 1.22 as against Tk (0.66) for same period in the previous year. The company, which was listed on the Dhaka bourse in 2001, distributed 18 per cent stock dividend for the year ended on June 30, 2016. In 2015, company disbursed 20 per cent stock dividend. Sponsor-directors hold 62.77 per cent stake in the Keya, while institutional investors own 6.96 per cent and the general public 30.27 per cent as on May 31, 2017, the DSE data shows. The company's paid-up capital is Tk 8.35 billion and authorised capital is Tk 10 billion while the total number of securities is 835.08 million, according to statistics from the DSE. Saif Powertec followed next, with shares of Tk 323 million changing hands, capturing 2.55 per cent of the day's total turnover. The company's share closed at Tk 47.50, advancing 1.71 per cent over the previous session. Beximco emerged as third with shares of Tk 288 million changing hands. It was 2.28 per cent of the total turnover value. The company's share price rose 1.75 per cent to close at Tk 34.80 each. Confidence Cement notched the fourth spot, with shares of Tk 287 million changing hands, which was 2.27 per cent of the turnover. The company's share price closed at Tk 144.50, gaining 1.47 per cent. Prime Bank featured a turnover of Tk 282 million which was 2.23 per cent of the day's total transaction. The bank's share price advanced 4.20 per cent to close at Tk 24.80. The turnover of Fu-Wang Food was Tk 271 million, capturing 2.14 per cent of the day's total value. The company's share price closed at Tk 23.40, soaring 8.83 per cent. It was also the day's highest gainer. Mercantile Bank featured a turnover of Tk 259 million, which was 2.05 per cent of the day's total value. The bank's share price rose 5.44 per cent to close at Tk 21.30 each. The turnover of Olympic Accessories was Tk 203 million, grabbing 1.60 per cent of the day's total turnover value. The company's share price closed at Tk 27.60, gaining 2.22 per cent. Source: http://print.thefinancialexpress-bd.com/2017/07/11/177467

OIL DROPS AMID RISING US PRODUCTION Oil fell on Monday, adding to heavy losses at the end of last week due to rising drilling activity in the United States and no let-up in supply growth from both OPEC and non-OPEC exporters. Prices dropped even as OPEC signaled it may widen its production caps to include Nigeria and Libya, whose output has recovered in recent months after being curtailed by years of unrest. Brent crude futures fell 51 cents on the day to $46.20 per barrel by 1120 GMT, while U.S. crude futures were last 49 cents lower on the day at $43.74 a barrel. "The market is in trouble and looks very vulnerable to lower numbers," PVM brokerage said in a note. The Organisation of the Petroleum Exporting Countries has agreed with some non-OPEC members to curtail production until March 2018 but the move has failed to eliminate a global glut of crude.



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Several key OPEC ministers will meet non-OPEC Russia on July 24 in St Petersburg, Russia, to discuss the situation in oil markets. Kuwait said on Sunday that Nigeria and Libya had been invited to the meeting and their production could be capped earlier than November, when OPEC is scheduled to hold formal talks, according to Bloomberg. Libya said on Monday it was ready for dialogue but added that its political, economic and humanitarian situation should be taken into account in talks on caps. Brent prices are 17 percent below their 2017 opening despite strong compliance by OPEC with the production-cutting accord. US energy firms added seven oil drilling rigs last week, marking a 24th week of increases out of the last 25 and bringing the count to 763, the most since April 2015, energy services company Baker Hughes said. US oil production has risen more than 10 percent since mid-2016. Source: http://print.thefinancialexpress-bd.com/2017/07/11/177455

GOLD SEES BIGGEST FALL SINCE MARCH More bargains await jewellery fans who will hit the shops in Dubai this week, as the bullion remains weak and looks set to tumble further. Gold jewellery prices in Dubai continued to fall on Monday, with some pieces offering up to Dh10 per gram in savings when compared to peak prices in June, reports The Gulf News. The price of 24K gold further tumbled to Dh146.50 per gram as of 2:17pm in Dubai, down by Dh2 per gram from last week and Dh10 per gram from one of its highest levels last month. Last June 7, 24K was retailing at Dh156.50 per gram. Spot gold fell to $1,204.45 an ounce, its lowest since March 15 before touching $1,207.27 an ounce by 0938 GMT on Monday, according to Reuters. Gold's decline has been triggered by stronger-than-expected labour data. The American economy generated an additional 222,000 jobs in June, according to the Labour Department. The news prompted many in the markets to speculate that the US Federal Reserve will again increase the interest rates. "Gold prices fell due to stronger-than-expected US employment data indicating that the US economy may be in a better shape than expected by most," explained Karim Merchant, group CEO and managing director of Pure Gold Jewellers. Source: http://print.thefinancialexpress-bd.com/2017/07/11/177456

BDESH, SPORE SIGN 3 MOUS TO STRENGTHEN BUSINESS TIES Bangladesh and Singapore business organisations on Monday signed three memorandums of understanding to strengthen business relations and develop mutual cooperation. The MoUs were inked between Bangladesh Investment Development Authority and Singapore Business Federation (SBF), the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and SBF and between FBCCI and Bangladesh Business Chamber of Singapore (BDCham) at a business meeting held at Hotel Pan Pacific Sonargaon in Dhaka. The FBCCI and SBF jointly organised the programme to facilitate information exchange, trade and investment opportunities between the two countries. Speaking at the function, Industries minister Amir Hossain Amu said that the business meeting would widen up the opportunity to explore the countless possibilities of extending bilateral trade, business and investment in different potentials industrial sectors. We want to expand bilateral trade and business relationship with Singapore in a mode of win-win situation, he said.

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He also said that as leading investors in Bangladesh, Singapore is supporting in various sectors, especially for the promotion of skilled human resource in the tourism sector. BIDA executive chairman Kazi M Aminul Islam said that Bangladesh could utilise the experiences of Singapore in implementing development projects as the country is one of the best economic performers in the world. A delegation of Bangladesh will visit Singapore next month to meet with its monetary authority and business organizations, he informed. FBCCI vice president Muntakim Ashraf highlighted the scope of investment for the investors from Singapore in the areas of pharmaceuticals, shipbuilding, ceramics, skills development, health care, energy and tourism sectors in the country. It is the right time to explore our comparative advantages to promote the balanced development of the bilateral trade, investment and growth, he said. BDCham president Mirza Golam Sabur, among others, spoke at the meeting while Bangladeshi business leaders, members of the visiting Singaporean delegation and BIDA officials participated. The high-level Singaporean business delegation arrived here on Saturday on a seven-day tour to Bangladesh. Source: http://www.newagebd.net/article/19467/bdesh-spore-sign-3-mous-to-strengthen-business-ties

EXPORT EARNINGS FROM GERMANY CROSS $5B AS US, UK MARKETS SLUMP IN FY17

Countrys export earnings from Germany crossed $5 billion in the just concluded financial year 2016-17 while exports to the United States and the United Kingdom, the major markets for Bangladesh, slumped by more than 6 per cent in the year. Experts and exporters said that the export earnings slumped in the major markets due to global fall in apparel demand and appreciation of local currency (Taka) against Dollar as well as fall in price of Euro and Pound. Export earnings from Germany, the second highest destination of RMG product from Bangladesh, in the FY 17 grew by 9.78 per cent to $ 5.47 billion from $4.98 billion in the same period of the FY 16, according to the Export Promotion Bureau data released on Monday. Readymade garment export to Germany in the FY 17 grew by 10.35 per cent to $5.13 billion from $4.65 billion in the FY 16. Data showed that, export earnings from the US, the single largest export destination for Bangladesh, in the FY17 fell by 6.01 per cent to $5.84 billion from $6.22 billion in FY16. Export earnings from the UK, the countrys third largest export destination, fell by 6.31 per cent to $3.56 billion from $3.80 billion in the FY16.

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We are trying to find out the reasons behind the negative export growth in the major destinations and the government would take necessary initiatives to boost the export earnings growth, the EPB vice-chairman Bijoy Bhattacharjee said while publishing the export data for the FY 17 at a press briefing at the EPB in the city.He said that they would investigate whether the unit prices of products declined or the exchange rate affected the export earnings. Bangladesh got the Netherlands as a new billion-dollar export market in the just concluded financial year 2016-17 while the name of Belgium dropped from the list of billion-dollar market as the RMG export to that country declined. Japan and Belgium were included in the list of billion-dollar export markets for Bangladesh in the FY 16. Export earnings from the Netherlands in the FY 17 grew by 23.62 per cent to $1.04 billion from $ 895.92 million in the FY 16. Readymade garment export to US in the FY 17 fell by 7.48 per cent to $ 5.20 billion from $5.62 billion in the FY 16 while the export to UK declined by 6.16 per cent to $3.30 billion from $3.52 billion. There are some internal and external factors for negative export growth in the major markets. Global slowdown in demand, Brexit, exchange rate and closure and relocation of factories due to remediation are the key reasons for the sluggish export growth, Mahmud Hasan Khan Babu, vice president of Bangladesh Garment Manufacturers and Exporters Association, told New Age. He said that the demand of apparel products declined by 5 per cent in the global market and at the same time fall in prices of Euro and Pound affected export earnings. Shortage of gas and electricity and lack of proper infrastructure also disrupted the export earnings growth, Babu said. RMG export to Netherlands in the FY 17 grew by 23.47 per cent to $814.34 million from $ 659.55 million in the FY 16. Export earnings from China increased by 17.48 per cent to $949.41 million in the FY 17 from $808.14 million in the FY 16. Exports to India declined by 2.50 per cent to $672.40 million from $689.62 million, data showed. Source: http://www.newagebd.net/article/19470/export-earnings-from-germany-cross-5b-as-us-uk-markets-slump-in-fy17

ADP SPEND CROSSES TK 1 LAKH CRORE FOR THE FIRST TIME The government's spending on its development projects hit a milestone last fiscal year, crossing the mark of Tk 1 lakh crore for the first time, Planning Minister AHM Mustafa Kamal said yesterday. The expenditure finally stood at 106,820 crore -- a 23 percent rise year-on-year, Kamal told reporters at his secretariat in Dhaka. However, according to statistics of the government's Implementation Monitoring and Evaluation Division, the implementation of the annual development programme (ADP) was 89.34 percent of the revised allocation, which was the lowest in the last eight years. Kamal said the last year's ADP outlay was not revised down. Had the allocation been trimmed through revision, which is a historical trend, the ADP implementation rate would have been 100 percent, he claimed. The militant attacks on Holey Artisan Bakery last year sent a lightning bolt of panic through all foreigners engaged in big ADP projects, forcing them to leave the country, which slowed down progress of the projects, the minister said. If the Holey Artisan incident had not taken place, the ADP works would have been completed fully, Kamal said. However, now that the foreigners have returned, the minister said, the implementation rate of the ADP schemes will be 100 percent in the current fiscal year.

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Source: http://www.thedailystar.net/business/adp-spend-crosses-tk-1-lakh-crore-the-first-time-1431427

EXPORT GROWTH DIPS TO 15-YEAR LOW A massive drop in shipment of garment items has caused Bangladesh's export growth to nosedive to a 15-year low in the just-concluded fiscal year. Exporters racked up $34.83 billion in 2016-17, an increase of only 1.69 percent year-on-year, according to the Export Promotion Bureau (EPB). The earning is 5.85 percent less than the government's annual target of $37 billion. June's export receipts fell by 15.27 percent to $3.04 billion from the previous month, which is again 16.52 percent lower than the monthly target of $3.64 billion. EPB Vice Chairman Bijoy Bhattacharjee said they are scrutinising reasons for the decline in exports to major markets. One reason might be the volatility of exchange rates, he said while making public the official export data at the EPB office in Dhaka. We also need to find out whether the unit price of exportable items has declined, said Bhattacharjee. The taka appreciated nearly 8 percent against the US dollar. Annual growth of garment exports, which account for 82 percent of the national exports, was also the lowest in the past 15 years. Garment exports declined 0.20 percent year-on-year to $28.14 billion, 7.34 percent below the target of $30.37 billion. Knitwear accounted for $13.75 billion while woven garment $14.39 billion. Over the past 10 years, garment exports had been increasing at a year-on-year rate of over 13 percent. We need to find out the reasons for the slowdown in garment exports, said Faruque Hassan, vice-president of the Bangladesh Garment Manufacturers and Exporters Association. He said Bangladesh should focus more on producing value-added garment items so that earnings grow while production costs stay the same. Exporters said Brexit has had a negative impact for the depreciation of the pound against the dollar. The UK is the third largest export destination for Bangladesh, importing products worth over $3 billion a year. Exporters pointed out two other reasons -- declining consumption of apparel items in the wake of rising spending for electronic gadgets and unhealthy price competitions among buyers and local manufacturers. Moreover, general election this year in major countries like the Netherlands, France and the UK had an impact on trade as consumers were cautious in their spending. We are losing our competitiveness to some countries such as India, Vietnam and Pakistan as they have some advantages [such as government incentives and locally grown raw materials], Hassan said. Some other sectors also saw a decline in their year-on-year export performance. They include frozen and live fish, vegetables, fruits, flowers and dry foods (by 1.74 percent to $526.45 million); petroleum by-products (by 17.93 percent to $243.77 million); leather (by 16.30 percent to $232.61 million); and bicycles (by 16.83 percent to $82.46 million). On the other hand, leather and leather goods exports grew by 6.29 percent to $1.23 billion, jute and jute goods by 4.66 percent to $962.42 million and footwear by 9.90 percent to $240.88 million. Source: http://www.thedailystar.net/business/export-growth-dips-15-year-low-1431430

STOCKS CONTINUE GAINING STREAK Stocks continued to rise yesterday with DSEX, the benchmark index of the Dhaka Stock Exchange, hitting an all-time high of 5,827.2 points. The index was introduced in January 2013 at the 4,000-point mark.

http://www.thedailystar.net/business/adp-spend-crosses-tk-1-lakh-crore-the-first-time-1431427http://www.thedailystar.net/business/adp-spend-crosses-tk-1-lakh-crore-the-first-time-1431427http://www.thedailystar.net/business/export-growth-dips-15-year-low-1431430


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DSEX reached a new high riding on strong investor enthusiasm in anticipation of pending declarations, said IDLC Asset Management in its daily market analysis. The daily turnover on the prime bourse also hit a three-month high yesterday: Tk 1,264 crore, up 9 percent from the previous day. The stockmarket continued its bullish activities as there are not many options for investment other than the capital market, said Abu Ahmed, a professor of Dhaka University. There is nothing to be concerned about, he added. Local cosmetics maker Keya Cosmetics topped the turnover chart for the second day in a row with its transaction of Tk 67 crore. Each share of the company gained Tk 0.3 or 1.69 percent to close at Tk 18.10. Keya's unusually high turnover alerted the DSE but the cosmetics company replied saying there was no undisclosed price sensitive information. Insurance companies gained the most yesterday due to handsome dividend declarations by some insurers for 2016. Six insurance companies were among the day's top 10 gainers. The board of directors of Sandhani Life Insurance recommended 20 percent stock dividend for the year that ended on December 31, 2016. Each share of the company gained Tk 1.1, or 3.06 percent yesterday to close at Tk 37. A total number of 183,653 trades were executed during the trading session, with a trading volume of 44,592 securities. At the DSE, 178 securities gained, 121 declined and 29 remained unchanged. Chittagong stocks also rose with the bourse's benchmark index, CSCX, increasing 97.66 points or 0.90 percent to finish the day at 10,916.86. Source: http://www.thedailystar.net/business/stocks-continue-gaining-streak-1431418

TK 844 CR TRANSACTED THROUGH MFS PER DAY: MUHITH Finance Minister AMA Muhith on Monday told Parliament that the daily average transaction of money through Mobile Financial Services (MFS) is around Tk 844 crore. Stating the statistics of May 2017, the Finance Minister told that Tk 844.23 crore on an average are transected daily in average 49.05 lakh transactions through MFS. The minister made the statement while replying to an unstarred question (written) from Awami League MP M Abdul Latif (Chittagong-11). "As per the statistics as of May 2017, the daily average transaction of money through MFS is Tk 844.23 crore. The average number of daily transaction is 49.05 lakh," Muhith said. Mentioning that 17 organisations are currently providing mobile financial services, Muhith said the number of MFS agents is 7.46 lakh while that of clients is 5.26 crore. In reply to a starred question from Jatiya Party MP AKM Mayeedul Islam (Kurigram-3), he said the amount of remittance outflow from Bangladesh was US$ 37.1 million while that of the inward remittance was US$ 14.93 billion in the 2015-16 fiscal year. The Finance Minister, however, admitted that Bangladesh Bank has no exact data on the remittance sent by foreigners, who are doing jobs and business in Bangladesh, foreign students, Bangladeshi nationals for receiving medical treatments abroad and Bangladesh businessmen for business or other purposes. In 2015-16 fiscal year, Bangladesh received highest remittance of US$ 2.9556 billion from Saudi Arabia while 2nd highest US$ 2.7117 billion came from the UAE and 3rd highest US$ 2.4243 billion from the USA, he said. Responding to another starred question from independent MP Md Abdul Matin, Muhith said Bangladesh's dependency on foreign assistance is declining.

http://www.thedailystar.net/business/stocks-continue-gaining-streak-1431418


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On an average 51 percent of the annual development programme (ADP) fund came as foreign assistance from 1980 to 1990, which came down to 44 percent in 1991-2000 period while to 37 percent in 2001-2010 and 34 percent in 2011-2016 period, he added. Source: http://www.daily-sun.com/post/239559/Tk-844-cr-transacted-through-MFS-per-day:-Muhith ()

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daily news flash, 11th july, 2017 - ebl securities ltd. news flash, 11th july, 2017 3 the list...

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