tag:blogger.com,1999:blog-65495256108705939522024-02-20T08:33:35.922-08:00Bangladesh stock marketTime and tide waits for none.... so cash in before it gets too late.Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.comBlogger104125tag:blogger.com,1999:blog-6549525610870593952.post-60436889669305927702010-02-04T10:35:00.000-08:002010-02-04T10:36:27.546-08:00Two companies get nod for direct listing<span class="Apple-style-span" style="font-family: Arial, 'Trebuchet MS', Tahoma, Georgia, Verdana, Lucida, Helvetica, sans-serif; font-size: 12px; color: rgb(51, 51, 51); "><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The two firms -- Ocean Containers Ltd and Khulna Power Ltd -- got the permission at a meeting of the Securities and Exchange Commission, presided over by the commission's Chairman Ziaul Haque Khondker.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">However, no more private companies will be allowed to list directly in line with the government's earlier decision.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The finance ministry at a meeting on November 5 last year decided that only state-run companies will be able to offload shares under the direct listing method.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">But the companies applied for direct listing before the November 5 decision will not come within the purview, Anwarul Kabir Bhuiyan, executive director of SEC, told journalists at a briefing, quoting the finance ministry's direction.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Ocean Containers and Khulna Power sought permission before November 5.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">“The commission sought directions from the finance ministry about the direct listing proposals, as confusions surfaced centring the direct listing issue. The ministry later gave a clear direction and the commission is implementing it,” Bhuiyan said.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">“We will now ask the Dhaka and Chittagong bourses to take necessary steps for the companies' direct listing,” he added.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Ocean Containers, an entity of Summit Group, submitted the direct listing proposal on June 23, 2009 and Khulna Power, another concern of the same group, on October 1.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Ocean Containers will offload 1.9 crore shares of Tk 10 each, while Khulna Power will offload 5.21 crore shares of Tk 10 each.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">In the book building method, institutions bid for shares through which the price is discovered.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Ocean Containers and Khulna Power will be the fourth and fifth private sector companies that will be listed directly. Five state-run enterprises have so far offloaded shares in the stockmarket under direct listing rules.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The SEC at the yesterday's meeting also approved the rights issue of Mercantile Bank and rejected the rights offer of One Bank and BD Com for noncompliance with the securities rules.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Mercantile Bank will issue 1.44 crore ordinary shares of Tk 100 each totalling Tk 144 crore at a ratio of 2:3, meaning two rights shares will be offered for an existing three</p></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-50988620199216386172010-01-31T10:36:00.000-08:002010-01-31T10:37:05.977-08:00DBH rated highest 'AAA' for the 4th consecutive year<span class="Apple-style-span" style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; ">Delta Brac Housing Finance Corporation Ltd., known as DBH was rated 'AAA' (Triple A), top to the rating scale for long term and ST-1 for short term for the fourth consecutive year.<br /><br />Mr. Hamidul Huq, managing director of <span id="IL_AD2" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-attachment: scroll !important; background-origin: initial !important; background-clip: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; background-repeat: repeat repeat !important; ">Credit Rating Agency</span> of Bangladesh (CRAB) handed over the<span id="IL_AD1" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-attachment: scroll !important; background-origin: initial !important; background-clip: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; background-repeat: repeat repeat !important; ">Credit Rating Report</span> to Mr QM Shariful Ala, managing director of DBH at a function held at the latter's corporate office in Dhaka. Senior officials of DBH and CRAB were present at the function.<br /><br />CRAB's independent Rating Committee comprising financial analysts from home and abroad prepared the credit rating report on the basis of qualitative and quantitative analysis and balance sheet for the financial year 2008-09 of the company. <br /><br />The CRAB rating report indicated that AAA credit rating has been given to DBH for excellent financials, healthy and sustainable franchises and a first rated operating environment. <br /><br />"AAA reflects DBH's strong asset quality, capital adequacy, operating efficiency, management strength, corporate governance and market leadership," managing director of CRAB Hamidul Huq said adding "in fact, the credit rating is an indication of the relative safety, security and strength of a financial institution which is relevant to its depositors and other investors such as shareholders and lenders".</span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-15660338727791330362010-01-31T10:24:00.000-08:002010-01-31T10:26:12.932-08:00SQ Celsius to go public<span class="Apple-style-span" style="font-family: Georgia; font-size: 13px; line-height: 15px; ">SQ Celsius, a concern of SQ Group, a major high-end <span class="yshortcuts" id="lw_1264961568_0" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; border-bottom-style: dashed; border-bottom-width: 1px; border-bottom-color: rgb(0, 102, 204); cursor: pointer; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: initial initial; background-repeat: initial initial; ">garment exporter</span>, is going to list on bourses in June, its top official said yesterday.<br /><br /><span class="yshortcuts" id="lw_1264961568_1" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; border-bottom-style: dashed; border-bottom-width: 1px; border-bottom-color: rgb(0, 102, 204); cursor: pointer; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: initial initial; background-repeat: initial initial; ">Ghulam Faruque</span>, chairman and managing director, told <span class="yshortcuts" id="lw_1264961568_2" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; cursor: pointer; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; border-bottom-style: none; border-bottom-width: initial; border-bottom-color: initial; background-position: initial initial; background-repeat: initial initial; ">The Daily Star</span>, “Raising an amount to the tune of Tk 150 crore from the public is now under plan.” However, the size of the IPO (initial public offering) may go higher as per the company's requirement for its massive expansion, he added.<br /><br />There are three sweater units under the company.<br /><br />On settlement of the pre-IPO or private placement by June, the formal <span class="yshortcuts" id="lw_1264961568_3" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; cursor: pointer; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; border-bottom-style: none; border-bottom-width: initial; border-bottom-color: initial; background-position: initial initial; background-repeat: initial initial; ">share trade</span> will debut in September.<br /><br />What will be the face value of shares is yet to be decided.<br /><br />As per the expansion plan, an SQ Station will be set up at Bhaluka in Mymensingh district where everything required for operating production will be available under one roof. The company has already purchased land for the project.<br /><br />The SQ boss also said an <span class="yshortcuts" id="lw_1264961568_4" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">asset management firm</span> is now conducting the company's asset valuation and credit rating will be completed very soon.<br /><br />SQ Celsius' present paid-up capital is more than Tk 50 crore, while the number of its workers is 7,000. The total number of workers of the entire group is 10,000.<br /><br />"Moreover, we have a plan to set up an exclusive garment factory to produce underwear garment in the SQ Station as the demand for this specialised product is increasing rapidly among international buyers," Faruque said.<br /><br /><span class="yshortcuts" id="lw_1264961568_5" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Sri Lanka</span> now does extremely well in this segment of garment products, he pointed out.<br /><br />SQ Group, established in 1993, with having factories at Mirpur, Bhaluka and Maona, exported apparels worth $70 million in 2009. The growth was not to an expected level because of the <span class="yshortcuts" id="lw_1264961568_6" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">global recession</span>.<br /><br />The group's major buyers are Marks and Spencer, H and M, NEXT and ESPIRIT, Faruque said.<br /><br />In response to a query, he pointed his finger at the difficulties in bank borrowing at high interest.<br /><br />“That's why I'm going to take the money from the capital market."<br /><br />At present, a total of 26 companies in the textile sector are listed with the country's premier bourse, <span class="yshortcuts" id="lw_1264961568_7" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; border-bottom-style: dashed; border-bottom-width: 1px; border-bottom-color: rgb(0, 102, 204); cursor: pointer; ">Dhaka Stock Exchange</span>. Of the total scrips in the sector, some under-perform due to their delayed holding of <span class="yshortcuts" id="lw_1264961568_8" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">annual general meeting</span> and lapses in awarding dividends to the shareholders for years. <br /></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-88598723302645163762010-01-30T09:21:00.000-08:002010-01-30T09:23:47.800-08:00RAK Ceramics to float shares within next three weeks<span class="Apple-style-span" style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; "><br />RAK Ceramics, a Bangladesh-UAE joint venture, has started process under book-building method to hit the country's <span id="IL_AD2" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-attachment: scroll !important; background-origin: initial !important; background-clip: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; background-repeat: repeat repeat !important; ">stock</span> market.<br /><br />It is the first company, which will make debut on Dhaka Stock Exchange (DSE) and Chittagong StockExchange (CSE), using such modern pricing mechanism for initial public offering (IPO) introduced in March of last year. <br /><br />As part of the process, the tiles and sanitary-ware maker held an IPO road show to woo the eligible <span id="IL_AD4" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-attachment: scroll !important; background-origin: initial !important; background-clip: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; background-repeat: repeat repeat !important; ">institutional investors</span> in a <span id="IL_AD1" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-attachment: scroll !important; background-origin: initial !important; background-clip: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; background-repeat: repeat repeat !important; ">city hotel</span> Saturday. RAK received primary approval for floating shares from the securities regulator in December.<br /><br />Within next three weeks, it will begin to sell shares among the institutional investors after receiving SEC consent's on bidding. Institutional bidding will be executed by DSE and CSE.<br /><br />Subscription for general investors will open 25 days from the closure of the institutional bidding. <br /><br />Chairman of RAK Ceramics (Bangladesh) Khater Massaad described the company's prospects and future plan to impress the institutional investors.<br /><br />"We feel very proud to come in Bangladesh," said Massaad. A large number of people and growing per capita income have been creating demands for products, which mainly attracted us to invest in the growing market of Bangladesh, he said. <br /><br />He said, "Meeting the local demands, the company has already begun to export products to India, Sri Lanka and Nepal and plans to enter in European market". <br /><br />IDLC Finance is the lead issue manager of the RAK Ceramic IPO, while BRAC-EPL <span id="IL_AD3" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-attachment: scroll !important; background-origin: initial !important; background-clip: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; background-repeat: repeat repeat !important; ">Investments</span> Ltd is the joint issue manager.<br /><br />Arif Khan, deputy managing director of IDLC Finance Ltd, presented the company's financial strength while Saiful Islam, director of BRAC-EPL, explained logic of the company's indicative price and described the bidding process. <br /><br />Mr Arif also responded to the volley of questions asked by the institutional investors about the company's financial side.<br /><br />DSE president Md Rakibur Rahman and local investors SAK Ekramuzzaman, who holds 10 per cent of RAK Ceramics, also spoke in the road show programme.<br /><br />RAK offers 34.51 million equity shares worth Tk 10 each in face value under the book-building method. Of which, 20 per cent will be funded by eligibleinstitutional investors, 10 per cent by mutual funds, 10 per cent by non-resident Bangladeshis and 60 per cent by public.<br /><br />An indicative price for each RAK share has already been built at Tk 40, including a premium of Tk 30, through bidding by seven institutions from four sectors.<br /><br />According to the book building method, bidders cannot quote 20 percent more or less than the indicative price, meaning they will have to offer between Tk 32 and Tk 48 for each share. Fixing the indicative price is required to obtain regulatory approval.<br /><br />As of December 31, 2009, RAK's pre-IPO paid-up capital is Tk 1.86 billion. The company's net asset value was Tk 13.69 a share and earning per share (EPS) was Tk 1.83.<br /><br />Foreign entrepreneurs own 90 percent of the company, while local entrepreneurs own the rest, but local ownership will increase to 20 per cent after post-IPO.<br /><br />RAK started commercial operation in Bangladesh in late 2000. Presently, the company has the market shares over one-fourth of tiles and more than three-fourth of sanitary ware products.<br /><br />Book Building is a method through which companies determine the values of their IPOs based on the bidding prices from the eligible institutional investors. The SEC introduced the method in March aiming to encourage private-sector entrepreneurs to list their large and profitable companies with bourses at fair prices.<br /><br />It is the process by which a price will be determined by institutional investorson the basis of an indicative price offered by the issuer company.<br /><br />Using the method, the issuer company will first ask for share prices from theinstitutional investors by organising road shows, projection meeting and seminar on the company.<br /><br />Then the company in association with its issue manager will fix an indicative price, which will have to be based on offering prices by at least five institutions in three categories, and send it to the securities regulator andstock exchanges.<br /><br />Based on the indicative price, the institutions will bid for shares.<br /><br />However, the bidders could not quote 20 percent more or less from the indicative price. Then a weighted average price will be fixed based on the higher and lower prices and shares will be allotted for institutions at the weighted average price.<br /><br />The lowest will be considered as cut-off price for public offerings or general investors.<br /><br />The institutions will not be allowed to sell shares in the first 15 trading days under the book building's lock-in system</span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-17553271377482535462010-01-13T10:52:00.000-08:002010-01-13T10:54:20.721-08:00Over 2 dozen SoEs set to hit stock market: Muhith<span class="Apple-style-span" style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; ">The government is going to offload shares of 26 state-owned enterprises (SoEs) to increase depth of the market, said finance minister AMA Muhith on Wednesday.<br /><br />The minister also said the government was going to rationalise the interest rate of national savings directorate (NSD) certificates and that the gap between the interest rate and inflation would be maximum 1.0 per cent.<br /><br />"We have decided to ask the companies to securitise themselves and prepare for floatation within six months," he said.<br /><br />Some of the companies would be offloaded in six months and the rest in phases, he said.<br /><br />The minister did not specify how much money the government was going to get by selling the shares.<br /><br />"The amount, the number of shares and the timing of offloading will be decided later," he said.<br /><br />"SoEs in power, energy, industry, bridge, communication, telecom and health sectors will be offloaded," he added.<br /><br />Bangabandhu Bridge, Unilever, Bangladesh Shipping Corporation (BSC), Hotel Sheraton and Sonargaon, Essential Drugs, BTCL, Sylhet Gas Transmission Company and some other SoEs will be offloaded.<br /><br />The minister said book-building method is well accepted by everybody and it is expected that the SoEs will also be offloaded through the method.<br /><br />The companies needed to undergo reassessment before their share-floating and they would do it in six months, Mr Muhith said.<br /><br />"BSC is almost ready to float the shares and it is expected that it will raise Tk 50 billion from the market," the minister said.<br /><br />The government has also decided to offload Unilever shares and the decision is conveyed to the multinational company, he said.<br /><br />There is an agreement that if the government wants to sell its stake in the company, it must offer Unilever to buy the shares first.<br /><br />He lamented that the SoEs do not want to float share and termed it 'foolishness'.<br /><br />"They come to the government for recapitalisation of Tk 400 million, whereas they can raise Tk 2 billion from the market," he said.<br /><br />Share capitalisation had increased manifold in the last one year and the money in the market should be utilised properly, he said.<br /><br />"Value of some shares is overheated and the new listings will help cool the market," he added.<br /><br />The minister said 62 SoEs were identified for offloading in 2005 but it came down to 38 and six of them have already been floated.<br /><br />"Six of the 32 SoEs have some problems including legal disputes and they will be offloaded after resolving those," he said.<br /><br />More and more companies would now be listed with the bourses, he hoped.<br /><br />The minister declined to make any comment on the reported stock exchange index manipulation.<br /><br />Mr Muhith on Tuesday in parliament said the government was taking steps to do away with private placement as underwriters are obliged to buy unsold shares.<br /><br />Mr Muhith said the interest rate of NSD certificates would be rationalised and a committee has been formed comprising representatives from Bangladesh Bank, Internal Resource Division and Finance Division to come up with suggestions in two months.</span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-14786181697771537692010-01-13T10:49:00.000-08:002010-01-13T10:50:57.369-08:00Turnover hits new record amid end of stocks' bull run - 13.01.2010<span class="Apple-style-span" style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; ">The benchmark index of the Dhaka Stock Exchange (DSE) plunged 90.56 points, its six-month single-day fall, on Wednesday but setting a record turnover that crossed Tk 14.0 billion mark for the first time. <br /><br />Traders said strong rumours of further curbs on loan margin ratio and suspension of netting facility has put an end to the 16th straight session gaining streak. <br /><br />A member of the SEC strongly ruled out such an intervention billing the rumour as 'bogus'.<br /><br />Sources close to the matter said, "Somebody from the Securities and Exchange Commission asked the merchant bankers to temporarily suspend netting facility." Analysts, however, said there could have been normal profit taking after the long rally. <br /><br />The plunge could have been deeper but modest buying in the closing hour shrank the day's deepest decline to record at 4848.68 points from 4640.25 points intra-low. <br /><br />The intra-day volatility was more than 200 points, which is the highest ever in DSE. <br /><br />Eventually, the benchmark DSE General Index (DGEN) dipped 90.56 points or 1.88 per cent --- its highest single-day fall since December 20 last year --to close at 4704.14. Earlier on December 20, 2008, it lost 81.40 points.</span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-5673466234427024092010-01-12T10:44:00.000-08:002010-01-12T10:46:21.550-08:00JS body suggests listing of ICB firms on bourses<span class="Apple-style-span" style="font-family: Arial, 'Trebuchet MS', Tahoma, Georgia, Verdana, Lucida, Helvetica, sans-serif; font-size: 12px; color: rgb(51, 51, 51); "><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">A parliamentary body has asked the Investment Corporation of Bangladesh (ICB) to immediately list its three subsidiary companies on bourses.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">“We recommended that ICB list its subsidiary companies on stock exchanges. These three firms are ICB Capital Management Limited, ICB Asset Management Company Limited and ICB Security and Training Limited,” AHM Mostafa Kamal, chairman of the Parliamentary Standing Committee on Finance Ministry, told reporters after a meeting at the Jatiya Sangsad Bhaban yesterday.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The committee also suggested the newly formed Bangladesh Development Bank Limited take steps so that the bank gets relieved of sick clients or borrowing industrialists after settling their loans and other dues.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The bank, which came into being after the merger between Bangladesh Shilpa Bank and Bangladesh Shilpa Rin Sangstha, launched its operation recently with industrial financing, commercial banking and merchant banking at the core of its services.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Pointing his finger at the sick clients of the development bank, the parliamentary body chief said, “We have told the new bank officials to come up with a list specifying the very sick, sick and well running companies so that the list come under review in the committee's next meeting.”</p></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-38185264606283091132010-01-12T10:41:00.000-08:002010-01-12T10:44:34.100-08:00S Alam Steels, Aftab Auto get SEC nod to issue preference shares<span class="Apple-style-span" style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; ">Two companies, S Alam Cold Rolled Steels and Aftab Automobiles, got the nod of the <span id="IL_AD1" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">Securities and Exchange Commission</span>(SEC) to issue 5.33 million and 18 million preference<span id="IL_AD2" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">shares</span> respectively, company sources said.<br /><br />S Alam will issue the 5.33 million preference shareswith 6 per cent interim dividends as per decision of the company taken in its EGM on December 12 last. Each share will have a face value of Tk 100. <br /><br />The preference shares will be converted into ordinary shares and will remain locked-in for one year from the date of issuance. <br /><br />A half of the shares will be converted on May 2 at 30 per cent discount on the basis of their weighted average price during the period from the record date to April 20.<br /><br />The remaining shares will be converted on August 1 at 30 per cent discount on the basis of their weighted average price during the period from the record to July 31.<br /><br />The 6 per cent dividend will be paid in two quarters. In the first quarter, an interim dividend of 3.0 per cent will be paid on April 2 and the remaining 3 per cent interim dividend of the second quarter will be paid on August 1. Their record dates will be April 30 and July 31 respectively. <br /><br />On the other hand, Aftab Automobiles will issue 18 million preference shareswith 5 per cent interim dividends. Each share will have a face value of Tk 100.</span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-27754477267370890852010-01-12T10:22:00.000-08:002010-01-12T10:29:02.725-08:00SEC pores over 'flawed indexing' info<span class="Apple-style-span" style="font-family: Arial, 'Trebuchet MS', Tahoma, Georgia, Verdana, Lucida, Helvetica, sans-serif; font-size: 12px; color: rgb(51, 51, 51); "><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Two bourses followed apparently flawed computations for Grameenphone shares in November, despite clear instructions from the market regulator to follow a standard indexing method.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The bourses were meant to follow the instructions from September last year.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The Securities and Exchange Commission (SEC) is yet to describe the bourses' calculations as a violation of law, but has said computations were far from "reliable and verifiable".</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">“We are evaluating all the information collected. If the commission finds any violation or flaw in the method of their calculation, the commission will take necessary action,” said Farhad Ahmed, executive director of SEC, in a press briefing yesterday.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The Dhaka Stock Exchange follows IASCO-recommended guidelines in index counting, while the Chittagong Stock Exchange follows the Laspeyres index calculation method.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The SEC at a meeting on May 28, 2009 directed the two stock exchanges to strictly follow index calculations as prescribed by their respective systems.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">IASCO guidelines say the calculation must be 'reliable and verifiable', and the Laspeyres method emphasises that index counting will be based on weighted average prices of a base period.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The search for information by the market watchdog comes, as it suspects that DSE followed different methods in different times.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Farhad Ahmed of SEC said the media reported that the exchanges had violated IASCO guidelines in index calculation and the market is based on flawed indexation.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">“It is not appropriate, as the IASCO guideline does not say the index calculation should be from the second day of a company's share trading or that it should not be based on the first day's transaction," he said.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">"The IASCO guideline says the calculations must be reliable and verifiable, which means the index can be counted from any day of a company's trading debut."</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">But both DSE's and CSE's calculation while incorporating Grameenphone shares showed unusual reflections in the key indices, which means the index calculation was not reliable and verifiable, he said.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The flawed counting also resulted in confusion among market experts, analysts, investors and stakeholders.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">On November 16, 2009, the trading debut day of Grameenphone, the benchmark index of DSE skyrocketed by more than 764 points, as DSE counted the index from the first day, based on the face value of each Grameenphone share at Tk 10.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">On the other hand, CSE calculated the index on a five-day weighted average price of Grameenphone shares, which also did not give an accurate picture in the index.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">About the meeting in May, Satipati Moitra, chief executive officer of DSE, said: “I can hardly remember anything about the meeting. I will not say anything on the issue. Moitra was present at the meeting as the then chief financial officer.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">CSE authorities say they calculated the index based on the Laspeyres method, the one they usually follow.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">However, the distortion was acute in the case of Grameenphone, because of its size. Even though the same methods were followed in the previous cases, the distortions were not reflected because of the small capital sizes.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">SEC now ordered the two exchanges to start counting the index from the second day of a company's trade, based on the first day's closing price.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">“As it had seen a huge gap, in most cases, between the first day's trading price and the IPO price, the commission suggests counting the index from the second day,” Farhad Ahmed explained.</p></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-36641211764005462852010-01-09T08:08:00.001-08:002010-01-09T08:10:56.440-08:00Telenor acquires more 11pc stake in Uninor<span class="Apple-style-span" style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; "><div align="justify" style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">NEW DELHI, Jan 9 (Economic Times): Norway's Telenor Friday bought 11 per cent more in Uninor, the mobile phone joint venture with <span id="IL_AD2" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">real estate</span> developer Unitech, for Rs 15 billion. The move will help the Indian venture fight the tariff war in the fast-growing wireless market.<br /><br />"This third <span id="IL_AD1" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">investment</span>, as the earlier transactions, will provide Uninor with working capital to fund roll out of services across India," its executive vice-president and head of Asian operations, Sigve Brekke said in a statement. <br /><br />With this investment, Telenor Group's stake in Uninor raises to 60.1 per cent and it has the option to raise it to as much as 67.25 per cent. The Norwegian company will invest the fourth and final tranche by the end of this fiscal.</div><div style="text-align: justify;"><br /></div></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-3914872694685901862010-01-09T08:08:00.000-08:002010-01-09T08:10:47.770-08:00Telenor acquires more 11pc stake in Uninor<span class="Apple-style-span" style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; "><div align="justify" style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">NEW DELHI, Jan 9 (Economic Times): Norway's Telenor Friday bought 11 per cent more in Uninor, the mobile phone joint venture with <span id="IL_AD2" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">real estate</span> developer Unitech, for Rs 15 billion. The move will help the Indian venture fight the tariff war in the fast-growing wireless market.<br /><br />"This third <span id="IL_AD1" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">investment</span>, as the earlier transactions, will provide Uninor with working capital to fund roll out of services across India," its executive vice-president and head of Asian operations, Sigve Brekke said in a statement. <br /><br />With this investment, Telenor Group's stake in Uninor raises to 60.1 per cent and it has the option to raise it to as much as 67.25 per cent. The Norwegian company will invest the fourth and final tranche by the end of this fiscal.</div><div style="text-align: justify;"><br /></div></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-49937428611113569622010-01-05T10:18:00.000-08:002010-01-05T10:21:24.880-08:00GEMINISEA; FINEFOODS; SINOBANGLA<span class="Apple-style-span" style="font-family:Tahoma, Verdana, sans-serif, Arial;font-size:100%;"><span class="Apple-style-span" style="font-size: 11px; -webkit-border-horizontal-spacing: 3px; -webkit-border-vertical-spacing: 3px;">As per decision of SEC, trading of the shares of the company will be held in Demat form with effect from January 28, 2010. In this respect, trading of the shares of the company will be allowed only in the spot market on January 24, 2010 and trading of the shares will remain suspended during January 25-27, 2010 for finalization of Demat proces</span></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-25269874373126210722010-01-05T10:16:00.000-08:002010-01-05T10:17:45.702-08:00Flawed DSE index and indulgent regulator<span class="Apple-style-span" style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; ">The index of a major bourse represents the performance of the <span id="IL_AD2" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">stock market</span> of a country and, to a great extent, highlights the investors' sentiment on the state of its economy. <br /><br />However, there could be exceptions. The stock market developments, primarily based on investors' interest in <span id="IL_AD1" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">stocks</span>, sometimes may not reflect the situation prevailing in other areas of the economy. Bangladesh market is a testimony to that fact. <br /><br />But what if the indices of the country's premier bourse are calculated deliberately on flawed premises, ignoring internationally accepted practices? <br /><br />Newspaper reports have revealed that the Dhaka <span id="IL_AD3" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">Stock Exchange</span> (DSE) has been, deliberately or otherwise, following a flawed system to calculate its daily index. The securities regulator -- the Securities and Exchange Commission (SEC) -- was aware of the folly but ignored it. <br /><br />The point that the newspaper reports have highlighted is that the DSE has been counting index points in the case of a debutant company from the very first day of its trading. Moreover, while calculating index it takes into account the face value of a stock, not the premium value, if there is any. <br /><br />The incumbent chairman of the SEC has admitted that the index calculation by the DSE is flawed since the first day trade of a company on a stock does not provide benchmark from where points could be calculated. <br /><br />The SEC has already asked the DSE authorities to start counting index points in the case of a debutant company from the second day of its trading. <br /><br />But why have the internationally accepted best norms of index calculation -- that the DSE had agreed to introduce back in 1998 -- been ignored this time?<br /><br />The securities regulator, too, cannot shirk its responsibility. It is expected to see that information given by the bourses for the consumption of the investors are correct, not manipulated ones. <br /><br />Had the DSE followed a correct method of calculation, its index would not have reached the present high level. <br /><br />For instance, on the first trading day of Grameenphone, the largest ever issue listed with the country's bourses, the DSE took into account the face value of its share at Tk. 10, not its premium value of Tk. 60, for index calculation. This has resulted in the skyrocketing of the general index of DSE (DGEN). A total of 764 points were added to the DGEN on the day and the GP alone contributed more than 400 points. <br /><br />Interestingly, the Chittagong Stock Exchange (CSE), country's second yet smaller bourse, however, did follow the standard practice of index calculation. It did calculate the index points of GP on the second day of its trading to give a correct picture. <br /><br />This quantum jump of the price-weighted index, where price movement of even a single security does heavily influence the value of the index, did otherwise send wrong message to general investors, particularly the small ones. Encouraged by the market-trend, more and more people, in the meanwhile, have been attracted to a market where most stocks are highly over-priced and, the possibility of ordinary investors' being burnt in the event of the worst happening, can not be ruled out. <br /><br />Many small investors have already lost a large part of their <span id="IL_AD4" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">investment</span> but they are still hanging on with a hope to recover the loss. <br /><br />It is not befitting for anyone, particularly among the DSE top brass, to bask in the glory of high growth of the market, genuine or otherwise. They do need to advise the investors to be cautious in making investments in an overheated market and not appear before the media all the time when the index is up. <br /><br />The SEC in a meeting with the chief executive officers of the bourses Tuesday asked to follow the method of calculating index for a debutant company from the second day of its trading. The SEC order will be applicable in the case of next debutant issue. <br /><br />So, the present index calculated wrongly would not be corrected. That is what, actually, the authorities of the bourse did, perhaps, want the most. For, if the wrongs are righted the DGEN would come down to around 3000. The DSE cannot afford such a drastic fall in index since it would leave a negative impression among the investors about the market. For the greater interest of the market, one might accept the latest SEC directive. <br /><br />But, at the same time, one will have some valid reasons to question the 'wisdom' of those, past and present who missed up the issue of index calculation. It is a technical matter and most investors, institutional investors included, are not aware how it is done. But the regulator must be having the requisite expertise to examine the issues involved in index calculation. It should then explain why it has not been able to apply this expertise when mistakes, deliberately or otherwise, were committed while calculating the index. </span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-8997783916795363552010-01-03T09:32:00.001-08:002010-01-03T09:32:48.599-08:00JS likely to pass two new ins bills<span class="Apple-style-span" style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; "><div align="justify" style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">TOKYO, Jan 3 (Reuters): The <span id="IL_AD2" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">Tokyo Stock Exchange</span>(TSE), Asia's largest equities bourse, said it would go ahead with the launch of its new trading system as planned Monday after running final checks.<br /><br />The new system will be able to process trades in five milliseconds, 600 times faster than the two to three seconds needed on the current system, and roughly the same speed as the New York and London<span id="IL_AD1" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">stock exchanges</span>.<br /><br />A spokesman the TSE said the exchange ran final checks on the system, called "Arrowhead," and determined that it was ready to be launched as planned on January 4, the first trading day of 2010.<br /><br />Analysts say Arrowhead should allow for more computer-driven trading including so-called high-frequency trading where algorithms are used to trade thousands of shares in milliseconds to profit from tiny spreads and market imbalances.<br /><br />The TSE, which plans to go public after April 2010, is betting on Arrowhead after several embarrassing computer glitches tarnished its image with investors.<br /><br />Last month the exchange was ordered to pay $120.5 million in damages to Mizuho Securities for a botched trade in 2005.<br /><br />A 2006 accounting scandal at Livedoor Co sparked a massive sell-off of the Internet company. Unable to handle the rush of orders from panicked investors, the TSE had to curtail its trading hours for three months.</div><div style="text-align: justify;"><br /></div></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-30205655405546730302010-01-03T09:26:00.000-08:002010-01-03T09:28:52.080-08:00Parliament expected to pass insurance bills<span class="Apple-style-span" style="font-family: Arial, 'Trebuchet MS', Tahoma, Georgia, Verdana, Lucida, Helvetica, sans-serif; font-size: 12px; color: rgb(51, 51, 51); "><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The winter session of parliament that begins today is expected to pass two insurance-related bills, aiming to streamline the insurance business.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The two bills are The Insurance Act 2009 and The Insurance Regulatory Authority Act 2009.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">“These two bills will be passed in the coming session,” Finance Minister AMA Muhith told reporters after a meeting with the Bangladesh Insurance Association (BIA) representatives at his ministry's conference room on Sunday.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">BIA Chairman Rafiqul AKM Islam led the BIA delegation.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Muhith would pilot the two bills in parliament.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">On July 9, the minister had placed the Insurance Bill 2009 and the Insurance Regulatory Authority Bill 2009 in parliament to pave the way for strengthening the regulatory process of the insurance sector.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">After scrutiny, the standing committee submitted the bills to parliament in September.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">However, the minister had some disagreements with the standing committee over a few clauses of the bills, but eventually the committee ignored his suggestions.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Sources said the minister proposed that there should not be any restriction on the appointment of the chief of the insurance regulatory authority arguing that the appointment of a person to the highest position should be open.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The minister had also suggested that the number of directors of an insurance company be limited to 15. He also felt that a director of an insurance company should not be a member of the board of any bank or any other insurance company.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The Insurance Bill 2009 says the paid-up capital for a life insurance company will be Tk 30 crore from the existing Tk 7.5 crore and for a general insurance Tk 40 crore from the existing Tk 15 crore.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">A total of 62 insurers are operating in the country and earned Tk 425 crore in premium last year.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The proposed Insurance Act 2009 says the sector needs to be managed properly and be strengthened by reducing business risks, while local and international insurance laws need to be harmonised considering the country's socioeconomic aspects.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The Insurance Regulatory Authority Act 2009 says that there is an increasing need to regulate one of the largest sectors in the country, harmonise local and international insurance laws considering the socioeconomic aspects of the country, and protect the interests of policyholders and other related beneficiaries.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The insurance act proposes that insurance companies to be categorised as 'life' and 'non-life' instead of 'life' and 'general'.</p></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-66725991147283904052009-12-30T19:49:00.000-08:002009-12-30T19:50:18.827-08:0024 listed companies will be relegated to 'B' category from the existing 'A'<span class="Apple-style-span" style="font-family: Georgia; font-size: 13px; border-collapse: collapse; color: rgb(0, 64, 127); font-weight: bold; line-height: 15px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; ">Twenty-four listed companies will be relegated to 'B' category from the existing 'A', as paper share is not allowed for trading under 'A' category from January .<br /><br />The <span class="yshortcuts" id="lw_1262230916_0" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; cursor: pointer; background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: transparent; border-bottom-style: none; border-bottom-width: initial; border-bottom-color: initial; background-position: initial initial; ">Dhaka Stock Exchange</span> disclosed names of the companies on its website yesterday. The firms failing to transform their paper shares into electronic ones by December 31 face this degradation from January 3.<br /><br />The companies are Azadi Printers, <span class="yshortcuts" id="lw_1262230916_1" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Bangladesh</span> Hotels, Bangladesh Plantation, Bangladesh Services, Eastern Lubricants Blenders, The Engineers, Fine Foods, Gemini Sea Food, Hill Plantation, Himadri, <span class="yshortcuts" id="lw_1262230916_2" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Jute</span> Spinners, Kohinoor Chemical Company (Bangladesh) , Libra Infusions, Monno Ceramic Industries, Monno Jutex Industries, Monno Jute Stafllers, National Tea Company, Orion Infusion, Pharma Aids, Prime Textile <span class="yshortcuts" id="lw_1262230916_3" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; border-bottom-style: dashed; border-bottom-width: 1px; border-bottom-color: rgb(0, 102, 204); cursor: pointer; ">Spinning Mills</span>, Renwick Jajneswar & Company (Bangladesh) , Saiham <span class="yshortcuts" id="lw_1262230916_4" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Textile Mills</span>, Sinobangla Industries and <span class="yshortcuts" id="lw_1262230916_5" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Sonali</span>Aansh Industries.<br /><br />Earlier in July this year, the <span class="yshortcuts" id="lw_1262230916_6" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; border-bottom-style: dashed; border-bottom-width: 1px; border-bottom-color: rgb(0, 102, 204); cursor: pointer; background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: transparent; background-position: initial initial; ">Securities and Exchange Commission</span> announced that paper share will not be allowed for trading under 'A' category from January next, as paper shares create problems in settling those in an <span class="yshortcuts" id="lw_1262230916_7" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; cursor: pointer; background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: transparent; border-bottom-style: none; border-bottom-width: initial; border-bottom-color: initial; background-position: initial initial; ">electronic trading system</span>.</span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-2492338962177693062009-12-30T19:48:00.000-08:002009-12-30T19:49:15.680-08:00Investors threaten tougher movement<span class="Apple-style-span" style="font-family: Georgia; font-size: 13px; line-height: 15px; "><div class="newsdetails" style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">A group of retail investors took to the streets yesterday demanding withdrawal of loan restrictions on mutual funds and retraction of the announcement of pulling out the funds having no maturity period from the market.<br /><br />The investors, who have investment in mutual funds, staged demonstration in front of both <span class="yshortcuts" id="lw_1262230909_0" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Dhaka Stock Exchange</span> and <span class="yshortcuts" id="lw_1262230909_1" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; border-bottom-style: dashed; border-bottom-width: 1px; border-bottom-color: rgb(0, 102, 204); cursor: pointer; ">Securities and Exchange Commission</span> under the banner of 'Share Market Retail Investors Forum'.<br /><br />They also met SEC Chairman <span class="yshortcuts" id="lw_1262230909_2" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Ziaul Haque</span> Khondker and placed their demands to him.<br /><br />They said regulator's intervention led to a sharp decline in the prices of each and every mutual fund during the last few weeks that resulted in huge losses to them.<br /><br />“If we now bear the losses caused by SEC's move, we would lose everything,” MA Bashar Dablu, the forum's convener, pointed out during the meeting with the SEC chief.<br /><br />The lifting of SEC restrictions can save their capital, Dablu said.<br /><br />The SEC chief assured the investors of considering their demands.<br /><br />The market regulator on <span class="yshortcuts" id="lw_1262230909_3" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; cursor: pointer; background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: transparent; border-bottom-style: none; border-bottom-width: initial; border-bottom-color: initial; background-position: initial initial; ">December 17</span> set new criteria for margin loans for mutual funds after about two months of suspension. The regulator said mutual funds must trade in a limited range to qualify for margin loans.<br /><br />The funds that will trade 7.5 percent higher than their latest NAV (net asset value) will not qualify for the loans. It means if a mutual fund has Tk 100 in NAV per unit and trades only up to Tk 107.50 (7.5 percent higher than NAV), margin loans can be sanctioned for the fund.<br /><br />Later on December 23, the SEC announced that mutual funds having no maturity period would have to pull out of the market by December 2011.<br /><br />The decisions took a heavy toll on the <span class="yshortcuts" id="lw_1262230909_4" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; cursor: pointer; background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: transparent; border-bottom-style: none; border-bottom-width: initial; border-bottom-color: initial; background-position: initial initial; ">mutual fund sector</span>.<br /><br />The agitated investors told journalists that they would go for tougher movement such as 'hunger strike unto death', if the SEC does not meet their demands.<br /><br />“We will have no other way but going for hunger strike unto death,” Dablu said.</div><div><br /></div></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-61639992181826566972009-12-30T08:35:00.000-08:002009-12-30T08:36:13.498-08:00DSE upbeat on 2010<span class="Apple-style-span" style="font-family: Arial, 'Trebuchet MS', Tahoma, Georgia, Verdana, Lucida, Helvetica, sans-serif; font-size: 12px; color: rgb(51, 51, 51); "><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Dhaka Stock Exchange, already encouraged by this year's performances, sees a more stronger and stable capital market in the coming year.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">“The market performed well with some milestone achievements this year. We saw the much-hyped Grameenphone listing, highest single day turnover, record levels of market capitalisation and key indices, introduction of book building method and many more,” DSE President Rakibur Rahman told journalists yesterday.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">“All these successes have added to the investors' confidence. If the trend continues next year and new companies list on the bourses, daily turnover may reach Tk 3,000 crore level by December 2010,” he said.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Rahman also requested the government to increase the flow of good shares to keep the trend by balancing demand and supply.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The government can get more return by offloading shares in such public sectors as hospitality, aviation, port and other services sectors, he said.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Rahman however criticised the government for its intervention in the market this year.</p></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-39074504866375289212009-12-21T09:17:00.001-08:002009-12-21T09:17:35.148-08:00DSE chief critical of regular SEC interference<span class="Apple-style-span" style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; "><div align="justify" style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">Regular interference of the<span id="IL_AD1" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">Securities and Exchange Commission</span> (SEC) creates a chance of misinterpretation in the capital market, DSE President Md. Rakibur Rahman said at an investors' awareness programme organised by Trust Bank in the city Monday.<br /><br />"There should be no obligation for the merchant banks as they know well how to provide margin loans," the DSE president said.<br /><br />"The government does not need to hold any road show abroad to create funds for infrastructure development. Non-resident Bangladeshis are waiting to invest in the country through the capital market," he added. <br /><br />On the other hand, Professor Mohammad Musa, a teacher of the United International University said, "Directions relating to the capital market come from different authorities creating impatience among the investors."<br /><br />The Merchant Banking Division of the Trust Bank organised the programme to create awareness among the investors. Shah A Sarwar, head of the Merchant Banking Division, was also present at the programme.</div><div style="text-align: justify;"><br /></div></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-25745750372750467432009-12-21T09:15:00.001-08:002009-12-21T09:15:44.313-08:00Dhaka stocks regain in heavily fluctuating mkt<span class="Apple-style-span" style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; "><div align="justify" style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">Dhaka stocks regained in the heavily fluctuating market Monday as investors availed lower prices, after a three-day fall. <br /><br /><span id="IL_AD3" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">The market</span> flipped between gain and loss in early trading as it lost 16 points within first twenty minutes and then recovered well in the next forty-five minutes gaining 42 points, before finishing in the positive zone.<br /><br />The benchmark index DSE General Index (DGEN) gained 17.25 points or 0.40 per cent to close at 4329.49. <br /><br />The broader DSE All Shares Price Index (DSI) moved up 15.17 points or 0.42 per cent to 3591.40 while the DSE-20 blue chip index added 5.34 points or 0.21 per cent to finish 2516.92.<br /><br />"The investors bought shares availing lower prices, sending the market into the positive territory," said Fazlur Rahman, deputy managing director of AB Bank Ltd.<br /><br />The market declined for the three-day straight sessions with biggest single-day fall in five months, making share prices within the grip of investors, he added. <br /><br />"Rise in stock prices was needed to boost the investors' confidence which eroded for many reasons," said Fazlur Rahman. <br /><br />Gainers took a strong lead over the losers as out of 235 issues traded, 155 advanced, 77 declined and three remained unchanged.<br /><br />Shares worth Tk 6.38 billion --- lowest in three months --- were traded on the day, a decline of 15 per cent over the last session. <br /><br />Most of the institutional investors remained inactive because of their year-end accounts closure, causing turnover to decline sharply, said a merchant banker. <br /><br />Grameenphone, the most weighted issue in DSE, edged 0.41 per cent higher to Tk 170.80, reversing form its third consecutive-session losing streak. <br /><br />The banking sector declined marginally and the non-banking financial institutions (NBFIs) sector advanced 1.92 per cent. <br /><br />The mutual funds fell further 1.52 per cent while the pharmaceutical sector ended lower marginally. Energy sector gained 0.82 per cent while cement and tannery finished higher. <br /><br />General and life insurers gained 0.54 per cent and 0.90 per cent respectively.<br /><br />Beximco Ltd, the flagship company of leading industrial conglomerate Beximco Group, continued to retain top turnover position with shares worth Tk 541.46 million traded. <br /><br />It was followed by Jamuna Oil, Lanka Bangla Finance, AB Bank, Beximco Pharma, Social Islami Bank Ltd (SIBL), Maksons Spinning, Titas Gas, Meghna Petroleum and Shahjalal Bank.<br /><br />Alltex, Metro Spinning, GQ Ball Pen, Dacca Dyeing, BIFC, Jamuna Oil, Maksons Spinning, Desh Garments and BD Welding were the leading gainers.<br /><br />The day's major losers were Alpha Tobacco, Savar Refractories, Gemini Sea Food, Sonali Aansh, ICB AMCL 1st <span id="IL_AD1" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">Mutual Fund</span> (MF), ICB 1st NRB MF, Grameen One MF and Grameen Scheme Two MF.</div><div style="text-align: justify;"><br /></div></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-51111988376639393642009-12-21T09:14:00.000-08:002009-12-21T09:15:14.214-08:00SEC moves to discipline brokering<span class="Apple-style-span" style="font-family: Arial, 'Trebuchet MS', Tahoma, Georgia, Verdana, Lucida, Helvetica, sans-serif; font-size: 12px; color: rgb(51, 51, 51); "><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The stock market regulator has asked banks, other financial institutions and insurers to form separate subsidiaries to run brokerage and dealer activities.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The subsidiaries must be formed by March 31 next year, according to a decision taken by the Securities and Exchange Commission at a recent meeting.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">“Brokerage activities have widened and so an institution may face problems running usual work and brokerage and dealer activities under the same management,” said Ziaul Haque Khondker, chairman of SEC.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Some 200 brokers and dealer are registered with Dhaka Stock Exchange: 32 run by banks, financial institutions and insurance companies.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Of the 32 brokerages, 16 are run by banks, while other financial institutions and insurance companies operate the rest.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The banks which have brokerages are: NCC Bank, Islami Bank, City Bank, Bangladesh Shilpa Bank, Bangladesh Commerce Bank, IFIC Bank, Dhaka Bank, Mutual Trust Bank, National Bank, Pubali Bank, Mercantile Bank, Shahjalal Islami Bank, Bank Asia, Premier Bank and AB Bank.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">Some financial institutions already have separate brokerage houses. They are: Phoenix Securities, International Leasing and Financial Services, Equity Partners Securities, IDLC Securities, Green Delta Financial Services, ICB Securities Trading Company, LankaBangla Securities, SES Company and BLI Securities.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">The other financial institutions and insurers with brokerage houses are Bangladesh Shilpa Rin Sangstha, Sadharan Bima Corporation, IIDFC and Popular Life Insurance.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">In October, Bangladesh Bank directed commercial banks to form separate subsidiaries to operate merchant banking.</p><p style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 15px; margin-left: 0px; line-height: 14px; ">A bank will have to take permission from Bangladesh Bank to set up a subsidiary company for merchant banking. The banks -- already in merchant banking -- will have to turn their units into subsidiaries by January.</p></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-71899897193009803432009-12-21T03:31:00.000-08:002009-12-21T03:32:27.354-08:00Lottery Draw of ICB provident & R N Spin<span class="Apple-style-span" style="font-family: Georgia; font-size: 13px; line-height: 15px; ">The IPO lottery draws of ICB Employees Provident <span class="IL_AD" id="IL_AD1" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Mutual Fund</span> One: Scheme One and R N Spinning Mills Limited will be held today (Monday) and <span class="yshortcuts" id="lw_1261394722_0" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">December 24</span> respectively, issue managers of the companies said.<br /><br />The IPO lottery draw of ICB Employees Provident Mutual Fund One: Scheme One will take place at Bangabandhu International Conference Centre in the city at 10.00 am. The <span class="yshortcuts" id="lw_1261394722_1" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">issue manager</span> also said that time and place of distributing refund warrants will be announced in the newspapers.<br /><br />The IPO subscription of the mutual fund started on <span class="yshortcuts" id="lw_1261394722_2" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">November 22</span> and closed on <span class="yshortcuts" id="lw_1261394722_3" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">November 26</span>. The subscription was opened up to <span class="yshortcuts" id="lw_1261394722_4" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">December 5</span> for non-resident <span class="yshortcuts" id="lw_1261394722_5" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Bangladeshis</span>. <br /><br />ICB <span class="IL_AD" id="IL_AD3" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; "><span class="yshortcuts" id="lw_1261394722_6" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; border-bottom-style: dashed; border-bottom-width: 1px; border-bottom-color: rgb(0, 102, 204); cursor: pointer; background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: transparent; background-position: initial initial; ">Asset Management Company</span></span> Limited is the issue manager of ICB Employees Provident Mutual Fund One: Scheme One.<br /><br />On the other hand, the IPO lottery draw of R N Spinning Mills Limited will be held at Bashundhara <span class="yshortcuts" id="lw_1261394722_7" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Convention Centre</span> at 10.00 am and its refund warrants will be distributed from <span class="yshortcuts" id="lw_1261394722_8" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">December 27</span>, which will also be announced in the newspapers, the issue manager said.<br /><br />The subscription of the company started on November 22 and closed on November 26. For Non-resident Bangladeshis the subscription was opened up to December 5.</span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-34881434111985945152009-12-21T03:29:00.000-08:002009-12-21T03:30:39.947-08:00Launch of mutual funds hits snag<span class="Apple-style-span" style="font-family: Georgia; font-size: 13px; line-height: 15px; ">The launch of new mutual funds worth around Tk 3,000 crore now grapples with uncertainty, as the government has directed the market regulator to go slow on allowing such new funds.<br /><br />Some 30 proposals for mutual fund formation have been <span class="yshortcuts" id="lw_1261394722_0" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">awaiting approval</span> from the Securities and Exchange Commission (SEC) for months, while many are in the pipeline, people close to the issue said.<br /><br />The <span class="yshortcuts" id="lw_1261394722_1" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; cursor: pointer; background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: transparent; border-bottom-style: none; border-bottom-width: initial; border-bottom-color: initial; background-position: initial initial; ">finance ministry</span> at a meeting on November 5 decided that the SEC will have to allow mutual funds in phases, saying that too many mutual funds would saturate and heat up the market.<br /><br />But fund managers said the slow approval process will hinder the growth of the mutual fund segment.<br /><br />The delay may also force many <span class="yshortcuts" id="lw_1261394722_2" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; border-bottom-style: dashed; border-bottom-width: 1px; border-bottom-color: rgb(0, 102, 204); cursor: pointer; ">asset managers</span> to shut their businesses, as 'no approval means no business' for them, they said.<br /><br />It is the government's 'wrong perception' that many a mutual fund would cast a negative impact on the market, rather these will stabilise the market, creating demand and supply, the fund managers said.<br /><br />However SEC Chairman <span class="yshortcuts" id="lw_1261394722_3" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Ziaul Haque</span> Khondker told The Daily Star: “We will take initiative on how fast we can give the approvals.”<br /><br />“The mutual funds are needed to stabilise the market, as these can create both <span class="yshortcuts" id="lw_1261394722_4" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">supply and demand</span>,” Moin Al Kashem, managing director of Prime Finance <span class="yshortcuts" id="lw_1261394722_5" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; border-bottom-style: dashed; border-bottom-width: 1px; border-bottom-color: rgb(0, 102, 204); cursor: pointer; ">Asset Management Company</span>, said yesterday.<br /><br />Prime Finance has submitted five <span class="yshortcuts" id="lw_1261394722_6" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">mutual fund proposals</span>.<br /><br />Kashem said: “Some argue that the mutual funds trade far higher than their net asset value (NAV), which shows an overvalued situation. But the situation will change if more mutual funds are allowed.”<br /><br />The <span class="yshortcuts" id="lw_1261394722_7" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">market trend</span> shows the funds now trade 200 percent to 300 percent higher than their NAV, he said, adding that more mutual funds will bring down the ratio near to their NAV.<br /><br />When the market heads towards volatility due to supply crises, new mutual funds are considered as investment securities, experts said.<br /><br />On the other hand, they said, when the market witnesses a bearish trend, the funds go into buying mood and thus create a demand for shares in the market.<br /><br />But in a heated situation, the mutual funds offload shares from their portfolios that <span class="yshortcuts" id="lw_1261394722_8" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">cool down</span> the market.<br /><br />Yawer Sayeed, managing director of AIMS of Bangladesh, another asset management company, said more mutual funds will bring diversity and stabilise the market.<br /><br />“More importantly, the investors will get a comparatively less risky investment vehicle,” he said.<br /></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-60387499418788613432009-12-21T03:27:00.000-08:002009-12-21T03:29:18.754-08:00Dhaka stocks plunge to steepest single day fall in five months<span class="Apple-style-span" style="font-family: Georgia; font-size: 13px; line-height: 15px; "><span class="yshortcuts" id="lw_1261394723_0" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; cursor: text; background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: transparent; border-bottom-style: none; border-bottom-width: initial; border-bottom-color: initial; background-position: initial initial; ">Dhaka</span> stocks nose-dived Sunday with the benchmark index witnessing steepest single-day fall in five months as anxiety gripped investors over conflicting signals from the authorities.<br /><br />The main DSE General Index (DGEN) plummeted 81.34 points or 1.85 per cent --- the biggest fall since July 5 --- to close at 4312.24.<br /><br />The broader DSE All Shares Price Index (DSI) lost 65.80 points or 1.80 per cent to 3576.22 while the DSE-20 blue chip index moved down 37.30 points or 1.46 per cent to 2511.57.<br /><br />Analysts fell short of describing the fall as a panic sale, but they said the plunge was the compound effect of a series of confusions created by the regulator, the <span class="IL_AD" id="IL_AD1" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; "><span class="yshortcuts" id="lw_1261394723_1" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; border-bottom-style: dashed; border-bottom-width: 1px; border-bottom-color: rgb(0, 102, 204); cursor: pointer; ">stock exchanges</span></span> and the government.<br /><br />"It was an embedded discomfort waiting to explode," Yawer Sayeed, the country's leading stock analyst and the chief executive of Aims <span class="yshortcuts" id="lw_1261394723_2" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Bangladesh</span> fund, said.<br /><br />The uneasiness became evident minutes after the trading began and continued through rest of the session with 199 issues bleeding red out of the 235 issues traded. Only 34 shares made marginal gain.<br /><br />Sayeed said the investors have been perplexed by the series of conflicting decisions on securities, new listing, margin rules, mutual funds by the regulators and the government.<br /><br />"I would say the fall was due to compound effect of the uncertainty being created in the market," said Salahuddin Ahmed Khan, former chief executive of the DSE and a professor of finance at Dhaka University.<br /><br />"Investors are not sure how they would react to these developments. But I think it would be short-lived. Fundamentals of the market is still sound," he said.<br /><br />Shares worth Tk 7.48 billion were traded on the day, a decrease of 10.4 per cent over the last session. It was the first time turnover fell below Tk 8.0 billion in three weeks.<br /><br />A broker said some retail investors reacted negatively to the <span class="yshortcuts" id="lw_1261394723_3" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; border-bottom-style: dashed; border-bottom-width: 1px; border-bottom-color: rgb(0, 102, 204); cursor: pointer; ">Securities and Exchange Commission</span> (SEC)'s new criteria on credit facilities for mutual funds.<br /><br />The SEC Thursday directed <span class="yshortcuts" id="lw_1261394723_4" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">merchant banks</span> not to disburse credit to their clients against the mutual funds that trade 7.5 per cent higher than their latest disclosed NAV (net asset value) based on market price.<br /><br />Some bank-owned brokerage houses also sold off shares en masse to adjust their year-end credit status, in the process dragging the market down, said a banker on condition of anonymity.<br /><br /><span class="yshortcuts" id="lw_1261394723_5" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Grameenphone</span>, the most weighted issue in DSE, went down for the third consecutive session as it lost 0.58 per cent to close at Tk 170.10 per share.<br /><br />The banking issues were down by 3.02 per cent as all banks, except state-owned <span class="yshortcuts" id="lw_1261394723_6" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; border-bottom-style: dashed; border-bottom-width: 1px; border-bottom-color: rgb(0, 102, 204); cursor: pointer; ">Rupali Bank</span>, ended in the red.<br /><br />The non-banking <span class="yshortcuts" id="lw_1261394723_7" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">financial institutions</span> (NBFIs) lost 2.61 per cent while mutual funds had the highest fall of 4.92 per cent following the latest SEC order on mutual funds<br /><br />Pharmaceutical sector edged 0.25 per cent lower. Other sectors such as energy, cement, tannery and insurance also declined.<br /><br />Beximco Ltd, the flag ship company of leading industrial conglomerate Beximco Group, topped the turnover list with shares worth Tk 703.75 million traded.<br /><br />It was followed by AB Bank, <span class="yshortcuts" id="lw_1261394723_8" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Social Investment Bank</span> Ltd (SIBL), Shahjalal Bank , NCC Bank, Summit Power, Titas Gas, BATBC, Southeast Bank and <span class="yshortcuts" id="lw_1261394723_9" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">City Bank</span>.<br /><br />Pragati Insurance, 1st Prime Finance <span class="IL_AD" id="IL_AD2" style="line-height: 1.22em; outline-style: none; outline-width: initial; outline-color: initial; ">Mutual Fund</span>, BIFC, 6th ICB, BD Welding, AIMS 1st Mutual Fund, BD Computer, Grameen One Mutual Fund and ICB AMCL 1st Mutual Fund were the leading losers.<br /><br />The day's major gainers were Berger Paints Ltd, Aftab Automobiles, Reckitt Benckiser, Jamuna Oil, Renata, Mercantile Insurance, IBBLPBOND, Bangas and First ICB. </span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0tag:blogger.com,1999:blog-6549525610870593952.post-92230885664069019722009-12-19T10:39:00.000-08:002009-12-19T10:40:23.260-08:00Finance ministry prepares package formula to rejuvenate Rupali Bank<span class="Apple-style-span" style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; "><div align="justify" style="padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">The Ministry of Finance (MoF) has prepared a package formula to improve the financial health and operational capacity of the largely state-owned Rupali Bank Ltd.<br /><br />Under the formula, the Bank will be allowed to issue three right shares against one existing shares to increase its paid-up capital while the government itself will issue interest-bearing <span id="IL_AD3" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">bonds</span>worth about Tk 5.0 billion against <span id="IL_AD2" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">the money</span> the state-owned enterprises (SoEs) and other government organizations owe to the Bank, according to sources. <br /><br />Besides, around 600 officers will be recruited for Rupali under the package.<br /><br />"We have finally prepared the package for Rupali to address its longstanding problems relating to capital shortfall, dearth of human resources and non-performing loans,' a top official in the ministry told the FE.<br /><br />"We at the ministry took a little bit of time since we wanted a lasting solution to the problems Rupali is now facing."<br /><br />He said the package formula has been finalised last Thursday, which will be placed before Finance Minister AMA Muhith today (Sunday) for approval.<br /><br />The wants to solve the problems of Rupali in a single package as the problems are longstanding, another top MoF official said.<br /><br />The major part of the Rupali Bank's classified loan, amounting to Tk. 16.30 billion, as of June 30 last belongs to the public sector entities. Of the classified loans, Tk. 4.97 billion is the principal amount and the rest is accumulated interest, according to the latest estimate of Rupali Bank Ltd.<br /><br />According to the data, the now-closed Adamjee Jute Mills owes the largest amount of overdue loan, Tk. 7.58 billion, to the Rupali Bank, followed by the Bangladesh Textile Mills Corporation, Tk 1.54 billion, the Bangladesh Agriculture Development Corporation, Tk 1.23 billion, the People's Jute Mills, Tk 1.08 billion, the Bangladesh Jute Mills Corporation, Tk 930 million, the Food Ministry, Tk 484 million, the Crescent Jute Mills, Tk 376 million, the Karim Jute Mills, Tk 312 million, and the Sylhet Pulp and Paper Mills Tk 152 million.<br /><br />Besides, the Khulna textile Mills owes to the Bank Tk 95.6 million, the Khulna Newsprint Mill Tk 77 million, Bangladesh Aroma Tea Ltd Tk 44.4 million, Bharat Tea Estate Tk 39 million and the National News Publication Tk. 72 million.<br /><br />Rupali Bank sources said they had to give loans to the SOEs at the insistence of the MoF since the government owns 94 per cent of the Bank's shares.<br /><br />The MoF at a recent meeting asked the Rupali Bank to submit its total outstanding loans with the SOEs. <br /><br />The Rupali sought interest-bearing bonds against the outstanding and classified loans of SOEs and other government organisations, amounting to Tk 16.30 billion.<br /><br />However, the ministry officials said now the principal part of the loan, amounting to about Tk five billion will be provided to the Rupali throughbonds, while the issue of the remaining amount will be settled in the next fiscal year. <br /><br />Meanwhile, the Bangladesh Bank (BB) gave its opinion favouring the issuance of three right shares against each existing share of Rupali Bank ltd to meet its shortfall in its paid-up capital.<br /><br />The board of directors of Rupali in last September decided to issue three right shares against each existing share of Rupali Bank ltd to raise its paid-up capital by June 30, 2010, a deadline set by BB for all commercial banks in the country.<br /><br />Meanwhile, the MoF is planning to offload another considerable portion of share of Rupali through stock exchanges and appoint chief executive officer and other top level posts from the private sector, sources said.<br /><br />Presently, the government owns 94.55 per cent shake of the Rupali.<br /><br />As per un-audited quarterly accounts for the 3rd quarter ended on 30th September 2009, Rupali Bank has reported net profit of Tk. 1,109.43 million with EPS of Tk. 88.75 as against Tk. 157.48 million and Tk. 12.60 respectively for the same period of the previous year, according to the information posted on the Dhaka <span id="IL_AD1" class="IL_AD" style="padding-top: 0px; padding-right: 0px; padding-bottom: 1px; padding-left: 0px; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; border-bottom-width: 1px !important; border-bottom-style: dotted !important; border-bottom-color: rgb(102, 0, 0) !important; color: rgb(102, 0, 0) !important; background-image: none !important; background-repeat: repeat !important; background-attachment: scroll !important; -webkit-background-clip: initial !important; -webkit-background-origin: initial !important; background-color: transparent !important; cursor: pointer !important; position: static; display: inline !important; font-family: Verdana, Arial, Helvetica, sans-serif !important; font-weight: normal !important; font-style: normal !important; font-size: 12px !important; background-position: 0% 50%; ">Stock Exchange</span> web site.</div><div style="text-align: justify;"><br /></div></span>Creative mindhttp://www.blogger.com/profile/16587182276693280413noreply@blogger.com0