Dhaka stocks fell sharply on Thursday, the last trading session of the week, amid investors’ heavy share sales following the Bangladesh Bank’s reluctance in entertaining the stock regulator’s proposals on banks’ stock market exposure.
DSEX, the blue-chip index of Dhaka Stock Exchange, fell by 1.54 per cent, or 71.41 points, to close at 4,544.70 points on the day after losing 11 points in the previous day.
Turnover of the bourse, however, increased to Tk 858.81 crore compared with that of Tk 842.49 crore in the previous trading session.
‘The market fell heavily today [Thursday] as a section of investors went for huge sell-offs because of the central bank’s cold shoulder to the stock regulator’s proposal while some investors also booked profit after surge in previous few trading sessions,’ said a stock broker.
The Bangladesh Securities and Exchange Commission on Wednesday at a financial market regulator’s coordination meeting requested the central bank to consider a number of proposals including extension of 2016 deadline for cutting banks’ stock market exposure and not to consider banks’ long-term equity investment as stock exposure.
But the central bank told BSEC that it was up to the government to decide about the matter and BB had nothing to do.
‘Market reacted negatively as investors might have become upset over the outcome of the financial market regulators’ coordination meeting related to banks and NBFIs capital market exposure,’ former DSE senior vice-president Ahmed Rashid told New Age on Thursday.
He, however, also said that as recent statements of government high-ups were sympathetic and supportive over the market. So, it would be easier for the government to amend the bank companies act in a bid to incorporate the BSEC proposals.
Besides, the government is expected to introduce some business-friendly policies in the upcoming budget including reducing corporate taxes that will be also positive for the capital market, Rashid said.
Market operators said that along with the retail investors, institutional investors also sold shares heavily in a bid to book profit following sharp rise in share prices in last couple of trading sessions.
Of the shares and mutual funds traded on the day, just 71 advanced, 217 declined and 26 remained unchanged.
DS30, the blue-chip index of the bourse, closed at 1,731.44 points, shedding 1.63 per cent or 28.71 points on the day.
The Shariah index of the bourse, DSES, declined by 1.01 per cent, or 11.29 points, to finish at 1,099.42 points on Thursday.
‘On the last day of the week, market took a nosedive amid robust turnover where investors hurried to realize profit,’ IDLC Investments said in its daily market commentary.
‘However, turnover increased by 1.9 per cent to Tk 8.5 billion signaling panic sell by some quarter of investors,’ it said.
‘Equity benchmark fell further on Thursday, as market was under pressure in the presence of sellers with profit booking behavior outpaced cautious buyers throughout the trading session,’ LankaBangla Securities said in its daily market commentary.
‘After a weeklong rally in index, market showed up some correction today, pushing the index down to below 4600 mark,’ it said.
Khulna Power Company led the turnover chart on the day as its shares worth Tk 68.05 crore changed hands.
Grameenphone, RAK Ceramics, Summit Purbanchol Power Company, BEXIMCO, United Power Generation and Distribution Company, Western Marine Shipyard, ACI Formulations, AFC Agro Biotec and Summit Allianece Port were among other turnover leaders.
Apex Spinning gained the most on the day with an 8.16 per cent increase in its share prices, while EXIM Bank First Mutual Fund was the worst loser of the day, shedding 10 per cent.
Banking
BB elected co-chair of SME finance working group of AFI
Alliance for Financial Inclusion (AFI), the global network of financial regulators, has chosen Bangladesh Bank as co-chair of its SME Finance working group on Wednesday, says a press release.
This is in recognition of the breakthrough policy intervention by Bangladesh Bank to improve access to finance to the MSMEs and women entrepreneurs as well as its contribution and leadership towards knowledge exchange and mutual learning in the area of MSME and women entrepreneurs lending, the statement said. The AFI network members in the SME Finance working group elected Bangladesh Bank as its co-chair for the next two years. Bangladesh Bank will take the position of Chair of the working group in 2016. Bangladesh Bank was chosen by the network members over India, Kenya, Peru and Philippines, the four other candidates.
Bangladesh bank representative in the SME Finance working group Md Ashraful Alam, deputy general manager, SME and Special Programmes Department, welcomed this move by the AFI and its members.
Stocks plunge as BB gives cold shoulder to BSEC proposals
Staff Correspondent
BB orders banks not to force female staff to stay after 6pm
A file photo shows female employees working alongside their male counterparts at a branch of a bank in the capital. Bangladesh Bank on Thursday issued order to all banks asking them to pay their female staff overtime allowances if they are held back at office after 6:00pm for any emergency case.
Bangladesh Bank on Thursday issued order to all banks asking them to pay their female staff overtime allowances if they are held back at office after 6:00pm for any emergency case. The BB issued a circular to managing directors and chief executive officers of banks asking them to ensure adequate security for their female staff if they are forced to stay for any emergency after closing the daily work at the branches at 6:00pm. The central bank received allegations that female bank officials were facing gender harassment as managements of banks detained them till 7:00pm to 8:00pm after closing the daily work of the branches, often without any valid reason, a BB official said. Female staff of banks suffer from a lack of security when they go home in the evening due to their overtime duty, he said. Banks have to pay overtime allowances to their female staff if any one of them has to stay back at the branch due to special necessity of the bank after 6:00pm, the BB circular said. The BB has recently received a number of allegations that some banks sacked their officials en masse, violating rules and regulations, according to the circular. The BB asked the banks to stop such job cut as it is harmful for the banks’ human resource management. The central bank asked the banks to recruit officials after verifying properly on the basis of professionalism, the circular said. Banks have to take initiative to develop the job skill of their officials by arranging proper training and workshop, it said. The BB asked banks to follow International Labour Organisation conventions, Bangladesh Labour Act 2006 and the central bank guidelines in suspending or removing any official. Banks have to provide the financial facility as per the job agreement to their terminated officials.
News:New Age/29-May-2015National Bank launches MasterCard platinum credit card
SK Sur Chowdhury, deputy governor of Bangladesh Bank; Shamsul Huda Khan, managing director of National Bank; and Syed Mohammad Kamal, country manager of MasterCard Bangladesh, attend the launching ceremony of MasterCard platinum credit card, at the Westin hotel in Dhaka on Wednesday.
National Bank launched the MasterCard platinum credit card at an event at the Westin hotel in Dhaka on Wednesday.
The credit card offers a variety of privileges, including “buy-one-get-one” offer for buffet lunch or dinner at Grandiose Restaurant of Dhaka Regency, free access at Balaka Executive Lounge, Ruposhi Bangla Hotel Bangladesh, the bank said in a statement.
The credit cardholders will also get priority passenger handling service in Hazrat Shahjalal International Airport along with three companions, one free corporate health check-up at United Hospital, free card for lifetime and discount offers at over 250 major merchant outlets.
“We are delighted to be able to provide the world-class technology-based services to its customers through its different initiatives,” said Shamsul Huda Khan, managing director of National Bank.
“National Bank strongly believes to expand its services for the development of the country.”
“We are pleased to launch the Platinum MasterCard credit card which gives our customers the best-in-class of services at the tip of their fingers. We're excited about our new product offering and the value addition it brings to our ever-expanding portfolio,” said Ron Haque Sikder, a director at National Bank.
Syed Mohammad Kamal, country manager of MasterCard Bangladesh, said the company is committed to providing premium services to its customers by enabling personalised services according to the need of the client.
“We are also hopeful that the introduction of this card will further promote electronic payments in the country.”
Shitangshu Kumar Sur Chowdhury, deputy governor of Bangladesh Bank, was also present.
News:The Daily Star/29-May-2015Modhumoti Bank signs deal with NCC Bank
Modhumoti Bank Limited signed an IME-Sub Agency agreement with NCC Bank Limited at the bank’s head office in Dhaka on Wednesday.
As per the agreement, Modhumoti Bank will serve international inward money transfer to their client in a fast, reliable and convenient way, said a press release.
Md Mizanur Rahman, Managing Director and CEO of Modhumoti Bank Limited, and Golam Hafiz Ahmed, Managing Director and CEO of NCC Bank Limited, signed the agreement on behalf of their respective organisations.
AKM Nazmul Hossain, Country Manager of IME, Md Shafiul Azam, Additional Managing Director of Modhumoti Bank Limited, Khandoker Rahimuzzaman, Head of Operations, and Akhtar Hamid Khan, Deputy Managing Director of NCC Bank Limited, ABM Jashim Uddin Ahamed, Head of NRB and SVP, Md Moniruzzaman, PRO and VP, and senior officials of both the banks were present.