Economy of Bangladesh

[Tmac]

Forex reserves touch all-time high

The central bank’s foreign exchange reserves reached an all-time high Thursday thanks to a rise in remittance inflows and export earnings.

The reserves, which stood at $3,533 million at the end of November 2006, topped $3,953 million Thursday.

Official statistics showed the reserves totalled $3,483 million at the end of FY 2005-06.

Further back, the forex reserves touched $3,070 million in 1994-95 fiscal. In the FY 1990-91, the total reserves reached $880 million.

‘Increased remittance inflows and export earnings have helped the reserves reach this level,’ said a senior foreign exchange policy analyst with the central bank.

Referring to a $400 million in remittance receipts during the first 21 days of December 2006, the official expected that the sum would cross $500 million in December.

Remittance inflows in the July-November of FY 2006-07 rose 30.86 per cent to reach $2,305.65 million from $1,761.88 million in the corresponding period of the previous fiscal.

During the July-October of 2006-07, export earnings increased by 23.95 per cent to reach $4,127.30 million from $3,345.95 million in the same period of the previous year.

‘We have also seen a sustainable growth in imports,’ he said.

Import payments rose by 17.67 per cent to top $5,243.10 million in the July-November of FY07 from $4,489.7 million in the corresponding months of previous year.

The official expected that foreign exchange reserves might touch $4,000 million ($4 billion) early next week prior to payment to the Asian Clearing Union, an arrangement to settle payments for intra-regional transactions among some Asian countries.

‘We will have to pay over $300 million to the ACU,’ he said.

http://www.newagebd.com/busi.html

[Dhakaiya]

From the pic. it looks like Khulna port is growing. It will be good for the economic growth of Southern Bangladesh if it grows.

[Tmac]

Forex reserves hit new high of $3.9b
BB moves to steady dollar at Tk69

Country's foreign exchange reserves hit a new high of $ 3.9 billion yesterday as the remittance inflow marked a 30 percent growth during the first six months of the current fiscal year, according to the Bangladesh Bank (BB) sources.

In view of the average remittance inflow, the growth is seen significant compared to it in the same period last fiscal, although such a flow came down slightly to $534.20million in December from $598.29million in November this fiscal.

The BB sources said high remittance inflow and huge export earnings contributed to a healthy foreign reserve of $3957.84million. But the reserve will fall today or tomorrow on Bangladesh's payment of an amount as big as $335million of export-import bill to the Asian Clearing Union (ACU).

Meanwhile, the central bank is keeping a cautious watch on the trend of money market as it has observed that the reserves have also upped the value of taka against dollar. It is also found that the supply side of foreign exchange does not cope with the slightly slow demand side because of political unrest in the country. This, it is assumed, may result in a significant drop in price of dollar in the local money market.

To prevent such a fall in the currency price, the BB has already purchased 60 million dollars from the money market. The central bank offers Tk69 per dollar to commercial banks.

The BB said if the dollar price goes below Tk69, exporters might face a setback, so the offer is made for the commercial banks with a view to steadying the price of the greenback at Tk69.

Earlier, the country's remittance hit a record high in a single month as it reached US$ 598 million in November.

As per the BB sources, the remittance also marked a surge in December as the overseas workers sent money on the occasion of Eid-ul-Azha.

But the reserves may cross $4 billion-mark before the ACU payment if the remittance flow continues, the sources also assumed.

The overall remittance rose to $ 2840 million in the July-December period in FY 2006-07, posting a strong 30 percent rise over the same period last fiscal, which was $2178million.

According to the Export Promotion Bureau (EPB), in the fiscal 2005-06, Bangladesh exported goods worth $10.52 billion, registering a 21 percent growth. The export is also rising this fiscal with approximately a 31 percent growth.

http://www.thedailystar.net/2007/01/08/d70108050166.htm

[mirzazeehan]

Forex reserves cross $4b mark
Sheikh Shahariar Zaman



The foreign reserves cross $4 billion mark for the first time in Bangladesh over robust remittance inflow, rising export earnings and lower import payments.
‘Remittance inflow, export earnings and use of banking channel to remit money are the reasons behind the huge foreign reserves,’ said Salehuddin Ahmed, governor of Bangladesh Bank. The foreign exchange reserves stood at $4,020.99 million on Tuesday.
The central bank encourages private commercial banks to sign agreements with foreign money exchange houses so that expatriates can easily send their money through the legal channel, he said.
‘Central bank increases its monitoring system so that recipients of remittance can encash money within the shortest possible time,’ he added.
He said remittance inflow would increase if more skilled and semi-skilled workers can be sent abroad.
‘Skilled and semi-skilled workers can earn more money than that of unskilled workers and they send most of their earnings home,’ the central bank chief said.
The governor said prolong political uncertainty would put a toll on export earnings.
‘From the supply side, it will be difficult for the exporters to procure raw materials or open their factory due to political unrest. On the other hand, from the demand side, buyers may feel reluctant to place orders in the country where manufacturers can not supply products on scheduled times.’
During the first six months of the current fiscal the remittance earning grew by 31 per cent to $2.86 billion from $2.17 billion of the corresponding period of the last fiscal.
The total remittance earning during 2005-06 was $4.8 billion and in 2006 calendar year the inflow stood at $5.48 billion.
The country saw record remittance inflow in November with $598 million and in December the remittance inflow was $556 million, the governor said.
‘On Monday alone we received $81 million remittance,’ he said.
He said improved reserves attract foreign direct investment as investors can repatriate their income easily.

Source:http://www.newagebd.com/busi.html#1

[Tmac]

great news for Bangladesh!!

[mirzazeehan]

Workers turn the golden goose
Overseas employment doubles in 5 years; remittance flow goes up by 150pc
Porimol Palma

The flow of remittance increased by about 150 per cent in last five years while overseas manpower employment doubled, with a record amount of remittance earned and the highest number of people migrated last year.

From January to November in 2006, Bangladeshis abroad sent around US$ 4.92 billion against US$2 billion in 2001 while about 4 lakh people left the country for joining jobs overseas last year, which was less than 2 lakh in 2001, according to the Bureau of Manpower, Employment and Training (BMET).

The money sent by the Bangladeshis abroad was US$4.25 billion in 2005 and the number of overseas manpower employment that year was only around 2.52 lakh.


The United Arab Emirates (UAE) hired 1,30,204 people, the highest number, while The Kingdom of Saudi Arabia (KSA) employed 1,09,513 people, the second highest number of contract or temporary workers from Bangladesh last year.


The UAE and KSA hired 61,978 and 80,425 workers in 2005 from Bangladesh.

The other countries that follow the KSA and UAE are Kuwait hiring 35,775 workers, Bahrain 16,355, Oman 8,082, Qatar 7,691 and Malaysia 20,469 workers from Bangladesh last year.

During the period of the caretaker government, the number of people who left the country for joining jobs abroad marked a sharp rise as it was about 46,474 in November and 49,012 in December last year.

The Middle East countries, especially the KSA and UAE, are hiring more workers from abroad, including Bangladesh, for development activities that got boosted due to almost doubling of oil price in the international market, manpower businesses and government officials said.


Strictness of the administration, especially during the caretaker government, also contributed to the increase of the number of people migrated last year.


“Strictness in checking at the airport contributed to the lessening of illegal or undocumented migration,” an official of the Ministry of Expatriates' Welfare and Overseas Employment said on condition of anonymity.


Many foreign job aspirants, who would like to resort to illegal ways, had to follow the legal or official ways and it contributed to the rise in the number of documented migration, said a source.

Referring to a case of holding 31 outbound women on November 17 last year by immigration police at Zia International Airport and alleged involvement of government officials, a recruiting agent said a large number of Bangladeshis go abroad illegally that keeps the official number lower.


The Ministry of Expatriates' Welfare and Overseas Employment suspended the four BMET officials who were detained by the police after the November 17 incident.

The then BMET director (Immigration) Manzur Rahman was also made OSD (official on special duty) for his alleged involvement in issuing emigration clearance certificates to the 31 women.


Migration expert Abdul Alim said the remittance would have doubled if the government could arrange sufficient banking facilities and incentives to the wage earners abroad as well as to the long-term Bangladeshi migrants in the developed countries.


More government attention for the internationally recognised professional training to the outgoing workers could also add value in the total migration process, he said.


The number of people going abroad could also increase greatly if the government took effective steps to explore new markets, especially to some European and African countries, Alim added.


Of around 50 lakh Bangladeshi workers and professionals working abroad, over 50 per cent are in the Middle Eastern countries and they send about 70 per cent of the total remittances.

Source:http://www.thedailystar.net/2007/01/11/d7011101033.htm

[Dhakaiya]

Its remarkable how the Bangladeshi economy has become a "rising star" despite the political crisis. Even six/seven years ago imagining Bangladesh as an emerging economy was difficult but now we have shown the world the potential we hold. Yunus has rightly said "Bangladesh is a country of possibilities."

[Tmac]

Stock market experiences massive gain
DSE turnover hits Tk 92.34 crore, highest after 1996

Stock prices and turnover shot up Sunday on the buying spree from the investors stirred by the end, to an extent, of the political chaos that put the country’s capital market into a downtrend for months.

The general index of the Dhaka Stock Exchange gained 74.94 points or 4.74 per cent to close at 1656.93 on Sunday, while benchmark DSE20 advanced by 58.40 points or 4.18 per cent to close at 1456.04.

The Chittagong Stock Exchange selective categories index gained 96.99 points or 4.04 per cent to close at 2498.21 on Sunday, while benchmark CSE30 advanced by 133.64 points or 4.03 per cent to close at 3451.53.

‘It is the reflection of the changed situation under the state of emergency declared,’ said Abdullah Bokhari, president of the DSE.

On Thursday evening, the president, Iajuddin Ahmed, dissolved the previous interim cabinet and promulgated a state of emergency, ending over two months of political chaos in the country.

Bokhari, also the managing director of AB and Company Ltd, a brokerage house, said investors recovered their confidence to put money on stocks as the confrontational politics eased.

The chief executive officer of the DSE, Salahuddin Ahmed Khan, said institutional investors played a significant role on the market on Sunday. Led by them, the retail investors returned to the trading floor on Sunday, he said.

He noted although market fundamentals were good, the market remained dull for months due to political uncertainties.

‘We, however, are closely monitoring the market to check any manipulative activities,’ DSE CEO said.

Subrata Moitra, a retail investor, said he returned to the market as he hoped that he could gain from the present situation.

Turnover on the DSE increased to Tk 92.34 crore, highest after 1996, the year the country’s capital market had suffered a bubble-and-burst. On last Thursday, the DSE turnover was Tk 26.57 crore.

The CSE turnover increased to Tk 21.40 crore from the Thursday’s total of Tk 6.72 crore.

A total of 192 issues were traded on the DSE on Sunday. Of them, 177 issues advanced, five declined and ten remained unchanged.

Of the total 83 issues traded on the CSE, 78 advanced, three declined and two remained unchanged.

http://www.newagebd.com/busi.html

[Tmac]

Bangladesh's economy to grow 7 pct in 2006/07

Bangladesh is poised to achieve a projected 7.0 percent growth in the fiscal year to next June, with hopes boosted by signs of political stability after months of turmoil that forced postponement of this month's parliamentary election, the central bank governor said.

Announcing a half-yearly monetary policy update, Bangladesh Bank governor Salehuddin Ahmed on Sunday told reporters, "We are confident of hitting the targeted growth if political stability is maintained."

In the last fiscal year, the economy grew a record 6.7 percent.

Bangladesh Bank said on Sunday it would stick to a cautious monetary policy stance to combat rising inflation, which peaked at 7.31 percent in October.

"Monetary policies aimed at supporting annual real GDP (Gross Domestic Product) growth of 7.0 percent will continue unchanged in the cautious and restrained stance in H2 2006/07 fiscal year keeping in view the prevailing external situation and the internal risks to price stability posed by the domestic situation," the bank said in its Monetary policy statement.

The central bank expected easing global commodity prices attendant to a projected slight slowdown of the global economy in 2007 should help further ease domestic inflation.

"The policy stance will of course be adapted promptly and flexibly in the face of any unfolding development, with special attention to the credit needs of sectors promoting and supporting economic growth," it said.

On the price outlook, the Bangladesh Bank projected average inflation in a range between 6.85 percent and 6.95 percent in the second half of the current fiscal year to June 2007.

Annual inflation hit 7.31 percent in October, up from 6.89 percent a month earlier.

Credit to the private sector has grown by 18.8 percent year on year as of November 2006.

In the 2005/06 fiscal year, exports hit a record $10.53 billion, of which $7.9 billion came from garments.

Remittances from 3 million Bangladeshis working overseas rose more than 25 percent to a record $4.8 billion in the last fiscal year, the second-biggest source of foreign income.

The economy of Bangladesh has grown by an average 6 percent over the past three years. The Asian Development Bank said recently it expected growth in the same range in 2006/07.

http://asia.news.yahoo.com/070114/3/2vrcd.html

[Tmac]

DSE market cap at record highest
Bourse gets Tk 9cr foreign portfolio investment

Dhaka stocks rallied on Wednesday for second consecutive day on the buying spree from the investors.

The Dhaka Stock Exchange witnessed foreign portfolio investment of some Tk 9 crore on Wednesday, market sources said.

An official of the bourse said it was 10 per cent of total turnover on the bourse on the day.

With the rise of share prices, market capitalisation at the DSE recorded its highest with Tk 33,336 crore.

The market indicator touched Tk 30,000 crore mark on November 21 last year for the first time.

The general index of the DSE gained 31.20 points or 1.88 per cent to close at 1691.74, while benchmark DSE20 advanced by 40.25 points or 2.75 per cent to close at 1501.11.

A stock broker said market got momentum as the confrontational politics eased down.

Turnover on the DSE also increased to Tk 90.03 crore from the Tuesday’s total of Tk 70.37 crore. On Monday, the DSE turnover was Tk 81.13 crore while on Sunday, the market indicator touched Tk 92.34 crore, highest after 1996.

Most of securities ended up on Wednesday. Of the total 198 issues traded on the DSE, 145 advanced, 38 declined and 15 remained unchanged.

http://www.newagebd.com/busi.html

[Tmac]

Khulna condom factory starts operation soon

Essential Drugs Company Ltd, the lone medicinal venture in the public sector, has completed the works of a condom manufacturing factory in Khulna that is awaiting launch of trial production soon, said a press release.

Once launched, the plant would save foreign currency equivalent to Tk 25 crore annually.

‘It will also supplement government’s poverty-reduction programme by helping birth control,’ said EDCL managing director Harun-Al-Rashid.

EDCL, set up with the main objective to supply essential drugs to the public hospitals and clinics at low prices, contributed to the national exchequer around Tk 120 crore revenue in the last five financial years since 2000-2001.

It paid Tk 21.97 crore to the exchequer in 2001-02, Tk 20.51 crore in 2002-03, Tk 25.47 crore in 2003-04, Tk 27.63 çrore in 2004-05 and Tk 23.89 crore in 2005-06.

The company earned Tk 19.48 crore gross profit in 2001-2002, Tk 15.50 crore in 2002-03, Tk 16.93 crore in 2003-04, Tk 19.67 crore in 2004-05, and Tk 46.23 crore in 2005-06.

The net profit was Tk 13.41 crore, Tk 9.04 crore, Tk 8.01 crore, Tk 5.05 crore and Tk 0.45 crore respectively in the years.

During the last five years, EDCL sold drugs worth Tk 443.64 crore.

Commencing its operation with only one plant in Tejgaon Industrial Area in 1962, EDCL has two more plants – a drug-making unit in Bogra established in 1985 and the Khulna condom manufacturing facility.

EDCL is presently producing 133 world-standard lifesaving drug items in the form of capsules, tablets, dry syrup, injections, oral saline, liquids, ophthalmic drops or ointment and skin ointment or lotion, and supplying those to public hospitals and clinics at low prices.

Besides, it is supplying drugs to the World Health Organisation and UNICEF and exporting those to different countries. The company is also in small-scale manufacturing first-generation cephalosporin drugs, the high-potent life-saving drugs now widely used all over the world in the treatment of chronic diseases, and supplying the expensive drugs to public hospitals and clinics at lower prices.

http://www.newagebd.com/busi.html

[Tmac]

Intramex Knitwear, Texaid begin production

Intramex Knitwear Ltd and Texaid Ltd have commenced their production recently.

The factories have been established with Tk 200 million (20 crore) financing by NCC Bank Ltd (NCCBL) at Gazipur.

Earlier, NCCBL Managing Director Md Nurul Amin formally inaugurated the factories as the chief guest of the opening ceremony, where Additional Managing Director Kazi Md Shafiqur Rahman was present as the special guest.

Intramex Group (IG) Managing Director ATM Enayet Ullah presided over the programme. NCCBL senior vice presidents Sheikh Abu Ahmed and Pijush Kanti Shaha along with IG General Manager Mohammad Aminul Islam were also present on the occasion.

Intramex is the country's second largest industry, which has oven garments, knit textile, sweater and colour units under one roof.

http://www.financialexpress-bd.com/i...=49787&spcl=no

[Tmac]

Stock prices surge amid buying spree

The stock prices surged Wednesday on the Dhaka Stock Exchange (DSE) amid a strong buying support both from retail and institutional investors.

The DSE market capitalisation whopped to Tk 333.36 billion on the day, the ever highest due to the bullish trend of share prices.

The latest political development which has ended the unrest and turbulence, inspired the investors to invest in the stock market.

Earlier, the market capitalisation crossed Tk 300 billion-mark on November 22, 2006.

All the indices marked a significant rise amid the transaction of Tk 900.304 million on the day which was Tk 703.66 million Tuesday.

DSE sources said about ten per cent transaction of Wednesday's total turnover was done by foreign investors.

The DSE had witnessed a record turnover worth Tk 923.398 million, the first after the 1996 high-tide on Sunday, the first trading day after the assumption of office by Fakhruddin Ahmed, the new chief adviser of the caretaker government.

Out of 198 traded issues, 145 gained, 38 declined and 15 remained unchanged.

The DSE All-Share Price Index (DSI) gained by 22.04 points or 1.62 per cent to close at 1376.99 while DSE General Index (DGEN) advanced 31.20 points or 1.87 per cent to finish at 1691.73 on the day. DSE-20 blue chip index (DS 20) moved up by 40.24 points or 2.75 per cent to close at cross 1500-mark and closed at 1501.10.

"A huge number of new investors returned to the market expecting a new political perspective and it is natural to have such a confidence among the investors," said one director of the DSE.

"Investors passed a tough time amid a cloudy political unrest during the last three and half months and now they feel it very timely to invest," another DSE source told the FE.

"The uncertainty due to the confrontational politics has been removed and this prompted the investors to invest in the capital market," DSE chief executive officer Salahuddin Ahmed Khan told the FE.

Investors were feeling insecure to invest in the stock market during the last few months because of political unrest and uncertainty and started withdrawing their fund from the stock market fearing further erosion of prices. "But now, investors feel time has changed and the cloud of uncertainty is over," said DSE senior vice president Ahmad Rashid.

He said DSE hopes to witness a one billion taka trade within a very short period.

Power and bank sector shares were hugely traded at the market on the day. DESCO, PGCB, Square Textile, Southeast Bank, Bextex, Prime Bank, Square Pharma, Beximco Pharma, Grameen One and Jamuna Bank were the top ten turnover leaders in terms of value on DSE with Tk 91.55 million, Tk 82.68 million, Tk 49.11 million, Tk 42.28 million, Tk 34.46 million, Tk 33.62 million, Tk 28.90 million, Tk 24.88 million, Tk 21.72 million and Tk 20.94 million traded respectively.

Prices of Square Textile, Wata Chemical, Kohinoor Chemical, Eastern Cables, Intech Online, Bd Online, Beximco, Bextex and Beximco Pharma rose between the range of 10.71 per cent to 6.00 per cent.

http://www.financialexpress-bd.com/i...=49853&spcl=no

[Tmac]

DSE turnover crosses record Tk 1.04b mark

The Dhaka Stock Exchange (DSE) Thursday witnessed a record Tk 1.04 billion trading amid a continued rally of share prices.

The turnover is a record high after the 1996 bubble in the stock market.
A strong buying support -- both from retail and institutional investors -- propelled the daily average turnover in the whole week to whop to Tk 877.14 million from Tk 336.08 million registering a record 160.99 per cent rise in a week.

Wednesday's meeting between Finance Adviser Mirza Azizul Islam and DSE directors also made a positive impact on Thursday's trading.

Mirza Aziz, a former chairman of the Securities and Exchange Commission (SEC) assured the DSE directors for taking steps to offload the shares of profitable state-owned companies and mobile phone companies in the stock market.

The DSE market capitalisation whopped to Tk 337.65 billion on the last trading day of the week which was Tk 333.36 billion Wednesday.

The latest political development which has ended the unrest and turbulence, propelled the investors to invest in the stock market from the first trading day in the week.

All the indices marked a significant rise as out of 206 traded issues, 158 gained, 30 declined and 18 remained unchanged.

The DSE All-Share Price Index (DSI) gained by 13.53 points to close at 1390.53 while DSE General Index (DGEN) advanced by 21.78 points to finish at 1713.52 on the day.

DSE-20 blue chip index (DS 20) moved up by 20.32 points to close at 1521.43.
"A huge number of new investors returned to the market expecting longer political stability and it is natural to have such a confidence among the investors," said a director of the DSE.

"Investors passed a tough time amid a cloudy political unrest during the last three and half months and now they feel that it is time to invest," another DSE source told the FE.

Investors were feeling insecure to invest in the stock market during the last few months because of political unrest and uncertainty and started withdrawing their fund from the stock market fearing further erosion of prices.
"But now, investors feel time has changed and the cloud of uncertainty is over," said DSE senior vice president Ahmad Rashid.

Power and bank sector shares were hugely traded on the day.

PGCB, DESCO, Southeast Bank, Exim Bank, Bextex, Mutual Trust Bank, Jamuna Bank, One Bank, Square Textile and Prime Bank were the top ten turnover leaders in terms of value on DSE with Tk 94.48 million, Tk 55.09 million, Tk 49.93 million, Tk 40.57 million, Tk 40.19 million, Tk 33.72 million, Tk 32.45 million, Tk 30.95 million, Tk 26.50 million and Tk 24.13 million traded respectively.

Market sources said investors showed a strong enthusiasm to buy shares of many companies irrespective of fundamentals of the companies concerned.
"As a result, prices of Z-category companies like Shyampur Sugar, Paper Processing, Wata Chemical, Renwick, Monospool, Legacy Footwear, Dhaka Fisheries, Bd Com and Gulf Foods marked a significant rises between the range of 6 per cent to 13.15 per cent," one market operator said.

Commenting on this unhealthy sign, chief executive officer of DSE Salahuddin Ahmed Khan said investors are now very much aware on the market fundamentals and any unusual rise of any issues will be investigated properly.
Among the A-category shares, Atlas Bangladesh rose by 12.15 per cent, Eastern Lubricants 17.76 per cent, Eastern Cables 15.16 per cent, Metro Spinning 10 per cent, Monno Jutex 10.23 per cent, National Tubes 7.61 per cent and Usmania Glass 13.97 per cent Thursday on the DSE.

Among the B-category shares, Beach Hatchery, Saiham Textile and Monno Fabrics registered 8.82 per cent, 8.14 per cent and 4.43 per cent rises respectively.

DSE management celebrated Thursday as the daily turnover crossed Tk one billion-mark in a landmark event in the DSE's one decade history. The DSE management bought sweetmeats to celebrate the event, sources concerned said.

http://www.financialexpress-bd.com/i...=49960&spcl=no

[Tmac]

Domestic investment up by 36pc in six months

The country's domestic investment proposals registered a 35.79 per cent growth in first half of fiscal 2006-07 over the corresponding period of the previous fiscals despite the political unrest during the past three months.

According to the Board of Investment (BoI) statistics, the country received 1077 local investment proposals worth Tk 129.756 billion during the first six months of the current fiscal against Tk 95.098 billion in same period of fiscal 2005-06.

However, in December last, some 193 projects of the local investors, amounting to an aggregate investment of Tk 14.479 billion, were registered with the BoI, declining by 50 per cent, from the level of December 2005 when 205 projects involving a total investment of Tk 21.571 billion registered.
The value of local investment proposals was Tk 13.817 billion in 138 projects, Tk 19.526 billion in 218 projects, Tk 26.967 billion in 225 projects, Tk 39.938 billion in 135 projects and Tk 15.027 billion in 168 projects in November, October, September, August and July respectively.

It was Tk 11.798 billion in 89 projects, Tk 23.714 billion in 171 projects, Tk 9.564 billion in 119 projects, Tk 13.011 billion in 144 projects and Tk 15.439 billion in 198 projects in the corresponding months of the previous fiscal.

The textile sector is on the top of the domestic investors' choice. The chemical and service sector came next, followed by the light engineering and agro-based industries.

The BoI statistics showed that the value of local investment proposals posted a 48.09 per cent growth in fiscal 2005-06 over that of 2001-02.
The local investment proposals were worth Tk 88.060 billion in 2001-02 followed by Tk 116.526 billion in 2002-03, Tk 135.461 billion in 2003-04, Tk 140.046 billion in 2004-05 and Tk 183.703 billion in 2005-06 fiscal.

The BoI official said the actual implementation rate of the domestic investment proposals is about 85 per cent while it is 70 per cent in the case of foreign investment proposals.

A senior BoI official said the foreign investors are coming to Bangladesh considering its cheap labour and energy resources compared to those of other countries across the world.

http://www.financialexpress-bd.com/i...=49962&spcl=no

[Tmac]

Packaging, accessories industry records 25pc growth

The packaging and accessories industry in the country grew by 25 per cent over the last one year contributing to the export earnings of $1.20 billion (120 crore) recorded in the readymade garments (RMG), pharmaceutical, frozen food, leather goods, agro-based products and other export-oriented sectors.
Its contribution to the total export earnings is about 12-15 per cent, which has been included in the 76 per cent export earnings recorded in the RMG and other export-oriented sectors. Its value addition is at least 42-50 per cent, sources said.

Export earnings in the accessories sector will reach $3.0 billion, including direct and indirect exports, by 2008 if the current trend of growth continues, sources said.

"We are optimistic of achieving the $ 3.0 billion target by 2008 as the volume of RMG exports is expected to rise to $15 billion," said Safiullah Chowdhury, president of Bangladesh Corrugated Carton and Accessories Manufacturers and Exporters Association (BCCAMEA).

However, there are other packaging and accessories industries meeting the packaging requirements of the local industries like food and beverage, cosmetics, biscuits, chips, spices, and other consumer goods. The demand for flexible packaging, tetra packaging and poly packaging has also increased significantly.

The packaging and accessories industry supplies at least 15 per cent of the raw materials to the RMG sector and about 10 per cent to other sectors.
The failure of the paper and board industry to meet the local requirements forced the users to go for import of paper, board and other products of packaging from China, Singapore, Malaysia, India, South Korea, Indonesia, Germany, Thailand, Japan and some other countries, sources said.

All the packaging requirements in the country's export-oriented sectors including RMG are now met by the packaging and accessories units, mostly small and medium-sized, thus making the country more competitive in the global export market.

There are around 750 packaging and accessories units in the country and they recorded a 6.0 per cent growth last year.

Experts said the government, donor agencies and foreign investors may come forward to exploit the high potential of the accessories market here.

If the opportunities are explored, Bangladesh can be a hub for local, regional and global packaging service providers in the competitive world market, they said.

The BCCAMEA president said high tech research and fund for product development for providing better accessories and packaging services are needed urgently.

Mentioning the use of the country's accessories by world-famous companies like JC Penny, BRECADEN, and WAL-MART, he said: "We are now able to meet the 100 per cent requirement of accessories of the country's RMG sector, which are of international standard".

Proper policy support from the authorities concerned is also needed to improve the overall infrastructural facilities like communications and power supply. Removal of customs hassles, enhancement of capital resources, hassle-free bond facilities and incentive are needed to be ensured by the government, the BCCMEA president said.

He, however, stressed the need for establishing a research and testing laboratory and packaging training institutes soon for further development of the sector.

http://www.financialexpress-bd.com/i...=50031&spcl=no

[Tmac]

DSE turnover grows by 160.99 per cent
Bourse general index gains 131.54 points in a week

Dhaka stocks witnessed massive rise in transactions and prices last week due to the apparent end of political pandemonium.

Turnover at the Dhaka Stock Exchange increased by 160.99 per cent to total at Tk 438.57 crore in last week from the previous week’s figure of Tk 168.04 crore.

On Thursday, the DSE turnover rose to Tk 104.71 crore, highest after 1996, the year the country’s capital market suffered a bubble-burst, surpassing Sunday’s total of Tk 92.34 crore.

The general index of the DSE gained 131.54 points or 8.31 per cent to close at 1,713.53 on Thursday while benchmark DSE20 advanced by 123.79 points or 8.86 per cent to close at 1521.43.

With the rise of prices, market capitalisation increased to Tk 33,766 crore, while the figure was Tk 31,709 crore on the last trading day of the previous week.

It was Tk 24,573 crore on November 13, 1996, the day DSE turnover recorded its highest at Tk 106.50 crore.

Market operators attributed the recent rising trend to the apparent end of the political pandemonium that had put the country’s capital market in downtrend for months.

Sharif Ataur Rahman, managing director of SAR Securities, said investors regained confidence to put money on stocks as the confrontational politics eased down with the promulgation of emergency.

The chief executive officer of the DSE, Salahuddin Ahmed Khan, said institutional investors, prime movers of the market, returned to the trading floor as the political uncertainties eased down, adding that ‘retail investors followed them.’

A total of 262 issues were traded last week. Of them, 199 issues advanced, 30 declined and 10 remained unchanged while 23 issues recorded no trading in the period.

In Tech Online topped the gainers’ list while Rahima Food was the biggest loser. In Tech Online gained 31.47 per cent in its share prices while Rahima Food witnessed 16.67 per cent fall.

The Power Grid Company Bangladesh topped the turnover index with total sales of Tk 45.50 crore which was 10.37 per cent of the total turnover of the bourse last week.

Other turnover leaders were: Southeast Bank, Dhaka Electric Supply Company, Prime Bank, Square Textile, Exim Bank, Bextex, Jamuna Bank, Grameen Mutual Fund One, Aims 1st Mutual Fund.

http://www.newagebd.com/busi.html

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DSE turnover hits all time high at Tk 111cr

Turnover on the Dhaka Stock Exchange (DSE) yesterday hit all time high of Tk 110.89 crore amid a huge capital inflow in the market.

Earlier, the highest DSE turnover was Tk 106 crore on November 13, 1996.

DSE market capitalisation stood at Tk 34,425 crore, which was also the highest.

A strong buying support both from the general and institutional investors also led DSE witness the highest ever turnover, they viewed.

Experts said the market started witnessing a huge capital inflow from January 14 following declaration of a state of emergency in the country and also formation of a fresh interim government.

On that day, the DSE turnover was Tk 92.33 crore, which increased to Tk 104.70 crore on Thursday.

DSE President Abdullah Bokhari said, "Investors especially the institutional investors got back confidence to invest in the stock exchange."

"Investment from banks and other financial institutions were around 65 percent of the total turnover on Thursday," said the DSE president adding, "Today [yesterday] the percentage could be more."

Citing an average Tk 200 crore daily turnover in Sri Lanka, Bokhari said the turnover in Bangladesh should be more, as the size of gross domestic product in Bangladesh is greater than that of Sri Lanka.

Replying to a query, the DSE president said that the present market will not face any bubble burst like in 1996 as scripless trading, strong monitoring and surveillance, strict rules and regulations and a state-of-the-art infrastructure are now in place.

He suggested the investors to invest on securities analysing the price earning ratio.

Stock market expert Yawer Sayeed said there is a potentiality of further increase in turnover as the current turnover is minuscule in terms of money, which is around Tk 100 crore, considering a mammoth market capitalisation of more than Tk 30,000 crore.

A senior official of a merchant bank said, "The DSE and SEC should strictly monitor the market so that no manipulation could take place in the market."

Along with the turnover, the stock prices also rallied on the DSE yesterday for the fourth consecutive day led by power and banking sector. The DSE All Share Price Index rose by 31.39 points or 2.25 percent to close at 1421.92 points while the DSE General Index went up by 43 points or 2.5 percent finishing at 1756.53 points.

Besides, DSE-20 Index, comprising blue chips, also shot up by 24.66 points, or 1.62 percent, to close at 1546.10 points.

UNB adds: Trading at Chittagong Stock Exchange (CSE) closed higher yesterday with the gainers strongly dominating the losers.

The CSE All Share Price Index increased by 2 percent to close at 3985.68 points.

The CSE-30 Index also rose by 1.71 percent to close at 3645.51 points.

A total of 98 issues were traded. Of them, 80 gained, 13 declined and five remained unchanged. Some 5,213,126 shares and debentures worth Tk 27.26 crore changed hands.

http://www.thedailystar.net/2007/01/22/d7012201085.htm

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Apparel exports to US, EU grow 24pc in 4 months

Bangladesh earned $2.6 billion through exports of readymade garments (RMG) to the US and European Union markets, registering a 24 percent growth in the first four months this fiscal.

According to Export Promotion Bureau (EPB), during the July-October period in FY 2006-07, exports of woven and knitwear product to the two markets surged 25.44 percent and 23.45 percent respectively.

During the period, the country exported $573.29million woven and $943.3million knitwear to the EU, while it exported $792.93 million woven and $290.81million knitwear to the US.

"RMG export earnings from the US market may cross $3 billion this fiscal, if we can continue the growth," said Abdus Salam Murshedy, the immediate past vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

He said, "Competitive price advantage with other suppliers, especially after the US authority re-imposed an interim quota restriction on certain categories of Chinese garments in mid-2005, has helped in surging our exports."

Quoting a latest data released by the US department of commerce, he said with an earning of about 280 million dollars in October, Bangladesh's RMG exports to the USA during the January-October period in 2006 stood at 2485 million dollars.

"This figure is very significant, he said, stressing government support to continue the process of external trade.

Meanwhile, Bangladesh's share of its total RMG exports to the US is 33 per cent, while it is 55 percent in the EU.

"In the post-MFA period, the Bangladeshi RMG exporters upgraded their productivity and quality to retain the international market. Besides, competitive price advantages contributed a lot to the rapid rise in RMG exports," said Fazlul Haque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

He said Bangladeshi RMG exporters had been doing a brisk business in the EU market since January 2006 and the exports would have upped, if some of the buyers had not shifted to another country because of the political crisis that persisted here for a certain period.

In the FY 2005-06, Bangladesh fetched $3.9 billion from exports to the EU and $2.6billion from the US.

http://www.thedailystar.net/2007/01/22/d70122050150.htm

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Bangladeshi meat to enter Middle East market

Bangladesh’s lone meat-processing company said Sunday it was in line to launch the country’s first-ever meat exports, sending halal or Islamic-certified products to the Middle East.

The Bengal Meat Company said it was expecting clearance for export to Dubai in the next few weeks as it looks for a share of the global market in halal products, estimated at 1.2 trillion dollars annually.

‘We have sent samples of our meat to Dubai authorities. As soon as we get clearance, we will start exporting,’ said the firm’s chief executive, Sharif Ahmed Chowdhury.

‘The Dubai officials have visited the plant and they were impressed with our standards. We expect the clearance within one or two weeks,’ he said.

Bangladesh has one of the world’s biggest livestock populations with goat and cattle the mainstays, according to Food and Agricultural Organisation (FAO).

But the country has never exported meat and the current plan came about only after the government offered a 20 per cent export subsidy, said Chowdhury.

‘Initially, we will export 50,000 dollars worth of meat every day. We are confident it will grow by leaps and bounds once we start,’ said Chowdhury, a former chief of Bangladesh Livestock Research Institute.

Meat certified as halal means that the animal was slaughtered according to traditions set forth by the Prophet Mohammed.

http://www.newagebd.com/busi.html