Tradings of MBL 1st MF, BRAC Bank bond make debut Feb 8Tradings of MBL 1st Mutual Fund and Subordinated 25 per cent Convertible Bonds of BRAC Bank Limited will begin on the Dhaka Stock Exchange (DSE) February 8. According to a board meeting decision of DSE, trading of the units of MBL 1st Mutual Fund sponsored by Mercantile Bank Ltd will start under 'A' category. DSE Trading Code for MBL 1st Mutual Fund is "MBL1STMF" and DSE company code is 12184. On the other hand, BRAC Bank bonds will be traded under 'N' category. DSE Trading Code for Subordinated 25 per cent Convertible Bonds of BRAC Bank Ltd is "BRACSCBOND" and DSE company code is 26003.

The subscription of MBL MF opened on December 12, 2010 and closed December 19, 2010. The face value is Tk. 10.00 per unit with market lot of 500 Units. The Sponsor's Portion was 10,000,000 units, Pre IPO Placement Portion 40,000,000 units and Public Offer 50,000,000 units. The size of the MBL Fund was 100,000,000 units while the size of the fund was Tk. 1,000,000,000.00. LR Global Bangladesh Asset Management was the issue manager. On the other hand, the opening date for subscription of BRAC Bank bonds was December 5, 2010 while closed on December 9, 2010. BRAC Bank Limited raised the Tier II capital through repeat public offering in order to comply with the regulatory requirement of Bangladesh Bank. The proceeds of the public offering will strengthen the capital base of the bank and augment business expansion.

The Issue Manager was IDLC Finance Limited and City Bank Limited was the trustee. A total of 90 per cent of the total Issue size of the bond was offered to institutional investors including onshore and offshore investors and the remaining 10 per cent was offered to public through IPO. The Issue Size was Tk 3.0 billion. Each bond will have a Face Value of BDT 1,000 (One Thousand) with market lot of 5 (five) bonds each. MBL 1st Mutual Fund is the 32nd mutual fund listed on the DSE.

News: The Financila Express/Bangladesh/04 Feb 2011

In a major step, the Securities and Exchange Commission (SEC) yesterday decided to let lenders take decisions on share credit and perform other tasks related to margin loan disbursement and maintenance.

The merchant banks and stockbrokers, who provide margin loans for share purchase, will however have to report to the SEC on credit disbursement and maintenance on a monthly basis so that the regulator can monitor.

Previously, the SEC had fixed the loan ratio and the lenders provided credit in line with the limit, but the regulator was facing strong criticism from experts and market intermediaries for its role in share credit.

In another move, the SEC allowed stock exchanges to take decisions on some other issues such as transfer of securities from one trading market to another, and suspension of stock trading. Earlier, the bourses acted only on instructions from the SEC.

The decisions came from SEC's meeting with merchant banks and the twin bourses. The commission's Chairman Ziaul Haque Khondker presided over the meeting, attended by presidents and chief executive officers of Dhaka and Chittagong stock exchanges, president of Bangladesh Merchant Banker's Association (BMBA), and three executive directors of the SEC.

However, the SEC handed over a task to the BMBA to make a 'guideline' on margin loan and asked the association to submit it by February 10 to the commission for regulatory approval, said Saifur Rahman, an executive director of the SEC.

"While preparing the guideline, some issues will have to be considered such as valuation method of securities in a client's portfolio, highest limit or ratio of margin loan, certain procedures on margin call or forced sell and considering the existing securities rules and regulations," he said in a press briefing.

Once the margin loan ratio is fixed, the limit can be reset after six months. "The revised loan ratio will come into effect from the first trading day of every January or July," Rahman said.

He said after the new decisions takes effect, every merchant bank will have to submit reports on previous month's loan disbursement and maintenance, while the stockbrokers will have to submit similar reports through their exchanges.

On the bourses responsibilities, he said, the stock exchanges can shift trading of securities from public market to spot market by their own decision, and can also stop trading of stocks considering the price movement or the market situation.

"They only have to inform the commission after taking such a decision," the SEC executive director said, adding: "It will help the stock exchanges to play their role as statutory regulatory organisation."

News: The Daily Star/ Bangladesh/ Feb-02-2011

The economy of the country posted 5.8 per cent real GDP growth during the last fiscal (2009-10), which was largely internal-demand driven. In view of the internal and external sector developments, the 6.7 per cent real GDP growth targeted in the national budget of current fiscal is well within reach, according to the highlights of Bangladesh Bank annual report 2009-10.
In its near and medium term outlook for the current fiscal, the report said that the main near term risk is the persistent shortages of power and gas supplies, disrupting production in installed capacities and slowing down investments for new capacities.
It said that near and medium term growth prospects for the economy now hinge crucially on implementation of the government’s plan to eliminate energy shortages by adding as fast as possible new generation capacities with private and public sector
outlays.
“Significant external sector risk factors to medium term growth outlook include the recent declining trends in FDI and manpower exports.”
“Foreign direct investment inflows are likely to pick up in step with global growth recovery, but can be hastened by forging closer trade and investment ties with the fast growing economies in the East and South Asia, bilaterally as well as regionally.”
On the supply side for fiscal 2009-10, the report mentioned that the growth was underpinned by overall robust growth in the agriculture and service sectors accompanied by a modest growth in the industry sector.
It showed that the agriculture sector grew by 4.7 per cent during the last fiscal compared to 4.1 per cent in the previous fiscal (2008-09).  The growth rates for the industry and services sector were 6.0 and 6.4 per cent respectively in fiscal 2009-10 while 6.5 and 6.3 per cent respectively in fiscal 2008-09.
The Bangladesh economy maintained growth momentum despite deceleration in the export growth and investment initiatives, continuing with its resilient response to the global economic slowdown.
According to the report, the 12-month average Consumer Price Index (CPI) inflation rate increased to 7.3 per cent at the end of 2009-10 fiscal compared to 6.7 per cent at the end of fiscal 2008-09.
On the other hand, point-to-point CPI inflation rate stood at 8.7 per cent at the end of 2009-10 fiscal, which was 2.3 per cent at the end of fiscal  2008-09.
The 12-month average CPI food inflation rate rose to 8.5 per cent at the end of fiscal 2009-10 compared to 7.2 per cent at the end of fiscal 2008-09. Non-food inflation rate fell to 5.5 per cent at the end of fiscal 2009-10 as against 5.9 per cent at the end of 2008-09.
Money and credit developments:
The Bangladesh Bank pursued accommodative monetary policy stance during the fiscal 2009-10 with a view to promoting investment and productive economic activities and sustaining domestic demand against the backdrop of the global recession.
The broad money (M2) growth during the 2009-10 fiscal was 22.4 per cent, which was 19.2 per cent in the preceding fiscal.
The credit to the public sector declined sharply by 5.2 per cent during the 2009-10 fiscal compared to 20.3 per cent growth in the fiscal 2008-09. Reduced Annual Development Programme (ADP), higher revenue receipts and foreign grants and loans were mainly responsible for the fall in the credit to the public sector. 

News: The Independent/ Bangladesh/ jan-27-2011

The economy of the country posted 5.8 per cent real GDP growth during the last fiscal (2009-10), which was largely internal-demand driven. In view of the internal and external sector developments, the 6.7 per cent real GDP growth targeted in the national budget of current fiscal is well within reach, according to the highlights of Bangladesh Bank annual report 2009-10.
In its near and medium term outlook for the current fiscal, the report said that the main near term risk is the persistent shortages of power and gas supplies, disrupting production in installed capacities and slowing down investments for new capacities.
It said that near and medium term growth prospects for the economy now hinge crucially on implementation of the government’s plan to eliminate energy shortages by adding as fast as possible new generation capacities with private and public sector
outlays.
“Significant external sector risk factors to medium term growth outlook include the recent declining trends in FDI and manpower exports.”
“Foreign direct investment inflows are likely to pick up in step with global growth recovery, but can be hastened by forging closer trade and investment ties with the fast growing economies in the East and South Asia, bilaterally as well as regionally.”
On the supply side for fiscal 2009-10, the report mentioned that the growth was underpinned by overall robust growth in the agriculture and service sectors accompanied by a modest growth in the industry sector.
It showed that the agriculture sector grew by 4.7 per cent during the last fiscal compared to 4.1 per cent in the previous fiscal (2008-09).  The growth rates for the industry and services sector were 6.0 and 6.4 per cent respectively in fiscal 2009-10 while 6.5 and 6.3 per cent respectively in fiscal 2008-09.
The Bangladesh economy maintained growth momentum despite deceleration in the export growth and investment initiatives, continuing with its resilient response to the global economic slowdown.
According to the report, the 12-month average Consumer Price Index (CPI) inflation rate increased to 7.3 per cent at the end of 2009-10 fiscal compared to 6.7 per cent at the end of fiscal 2008-09.
On the other hand, point-to-point CPI inflation rate stood at 8.7 per cent at the end of 2009-10 fiscal, which was 2.3 per cent at the end of fiscal  2008-09.
The 12-month average CPI food inflation rate rose to 8.5 per cent at the end of fiscal 2009-10 compared to 7.2 per cent at the end of fiscal 2008-09. Non-food inflation rate fell to 5.5 per cent at the end of fiscal 2009-10 as against 5.9 per cent at the end of 2008-09.
Money and credit developments:
The Bangladesh Bank pursued accommodative monetary policy stance during the fiscal 2009-10 with a view to promoting investment and productive economic activities and sustaining domestic demand against the backdrop of the global recession.
The broad money (M2) growth during the 2009-10 fiscal was 22.4 per cent, which was 19.2 per cent in the preceding fiscal.
The credit to the public sector declined sharply by 5.2 per cent during the 2009-10 fiscal compared to 20.3 per cent growth in the fiscal 2008-09. Reduced Annual Development Programme (ADP), higher revenue receipts and foreign grants and loans were mainly responsible for the fall in the credit to the public sector.

News: The Daily Star/ Bangladesh/ jan-26-2011

Small investors Sunday urged the government to take "immediate" steps to bring back traders' confidence, which has shattered after the tempest in the stock market.  They also demanded the closure of the capital market unless atmosphere in bourses is back to normal. The demand came at a press briefing by Bangladesh Share Investors' Association (BSIA), a platform of small investors, in the city, where stock traders placed a 15-point demand. Share trading on Dhaka Stock Exchange (DSE) was halted since Thursday following a 600-point fall in five minutes in share prices. Anarchy reigned in the city's financial district Motijheel, where law enforcers had to clash with thousands of retail investors and riot police. The investors censured the circuit breaker system for its failure to stabilise the market and said the procedure should be stopped because the DSE authorities are not well-equipped to handle it.

"The government must take proper steps to bring back investors' confidence as early as possible," BSLA convener Mizan-Ur-Rashid Chowdhury said. He said that the Securities and Exchange Commission (SEC) and DSE had invited investors to invest in the market. "But now gamblers and vested quarters plundered our money like pick-pockets. We didn't expect that the 96-like debacle will be staged again," he added. The investors sought measures to ensure participation of traders in each meeting before taking any stock market-related decision. They also demanded cancellation of share trading session that took place on January 20 as it crossed the index circuit breaker limit of 225 points by hitting at 600 point. The leaders of the organisation also raised questions about the responsibility of merchant banks, institutional investors and state-owned investment bank - ICB as they acted like small investors when the market had consecutive fall.

"The market has become unstable due to the conspiracy by a vested quarter," BSLA co-convener M Zihad Jahangir Alam said. He urged the authorities to investigate into BO accounts transacted over the last 30 days to find out whose accounts traded "unusually". "Punitive action must be taken against those who are responsible for the recent market crash," he said. The grouping's other demands include cancellation of the premium system in any IPO and withdrawal of all cases filed against general investors.

News: Financial Express/Bangladesh/24 Jan 2011