Dhaka stocks fell for the third day on the back of a writ petition challenging the authority of the Securities and Exchange Commission.

Ahmed Rashid, senior vice president of DSE said the market would not stabilise until the court settles the matter once and for all.

“Unresolved court issues and political instability continued to undermine investors' confidence level,” said IDLC Investments about the downward trend in the market.

Turnover rose 14.76 percent, compared to Tk 156 crore of the previous day. A total of 0.45 lakh trades were executed, with 3.45 crore shares and mutual fund units changing hands on the Dhaka bourse.

Of the 257 issues that traded on DSE, 138 declined, 94 advanced and 25 remained unchanged.

During yesterday's downtrend pharmaceuticals lost the most among the major sectors, falling by 1.34 percent. Power at 1.24 percent, non-bank financial institutions at 1.03 percent, telecommunications at 0.49 percent and banks at 0.45 percent were the other notable losers.

Lafarge Surma Cement topped the turnover chart with 31.60 lakh shares worth Tk 13.21 crore, followed by Social Islami Bank and Grameenphone.

Exim Bank was the biggest gainer of the day, recording a 5-percent gain. Pragati Life Insurance fell the most at 7.45 percent.

The Daily Star/Bangladesh/ 12th June 2012

The European Commission insisted Monday that Spain asked the IMF to contribute monitoring expertise to an aid programme agreed by eurozone finance ministers for Spain's financial sector.

According to the Commission, the International Monetary Fund will be part of a "Quartet" to conduct surveillance over Spain's finances -- with up to 100 billion euros ($125 billion) of loans for Spanish banks funnelled through a government body, the Fund for Orderly Bank Restructuring (FROB).

The role of the Washington-based IMF is politically sensitive in Madrid, with the Fund seen as pushing for the toughest austerity measures in previous, government bailouts for Greece, Ireland and Portugal.

Amadeu Altafaj, spokesman for EU economy commissioner Olli Rehn, said: "All members of the Eurogroup... including the Spanish authorities" had indicated during Saturday's video conference that they "wanted to have the IMF on board, to monitor, to have the benefit of their experience."

The Daily Star/Bangladesh/ 12th June 2012

Finance Minister AMA Muhith says he has done enough for the stockmarket, but the market is not improving.

“It's an evil market. I won't comment on it.”

An apparently frustrated Muhith yesterday responded to lawmaker Rashed Khan Menon's criticism of the stockmarket in parliament during the passage to the supplementary budget for the outgoing fiscal year.

But Muhith did not explain why it is an evil market.

Though at the beginning of his speech the minister said he would not comment on the stockmarket, he gave full vent to his feelings in an outburst at the wrap-up.

Muhith said the government plans to demutualise the Dhaka and Chittagong bourses by December and he would only talk about the market once demutualisation is done.

The minister also said the reason behind so much excitement over the stockmarket is that the prime bourse is located in Motijheel. He did not provide an explanation.

Most of the stock investors are young and buoyant with a lot of enthusiasm and the number is around 11 lakh, he said.

"The economy will not suffer if I don't worry about the stockmarket."

Coming down heavily on the critics of quick rental power plants, Muhith said achieving the country's expected economic growth would have not been possible without such power plants.

After his speech, the parliament gave a go-ahead to the Tk 8,880.47 crore supplementary budget for additional spending by ministries and divisions during the current fiscal year.

The railway ministry had the highest extra spending at Tk 3,890 crore, followed by agriculture at Tk 1,854 crore.

The Daily Star/Bangladesh/ 12th June 2012

The Foreign Investors' Chamber of Commerce and Industry (FICCI) termed the 2012-13 national budget proposed by the finance minister on Thursday, is somewhat bold and challenging at the backdrop of global economic recession. The chamber appreciates the measures especially the budget allocation for energy and power, communication and education sectors, according to a press release. FICCI in its press release said the projected borrowing apparently from banking sector will have affect credit flows to private sector and may cause liquidity problem. However, the Foreign Chamber feels that it will require strong monitoring to achieve the goals set in the budget. It has appreciated efforts to tighten the provision for the whitening of untaxed money, measures to improve capital market reducing the tax rate of merchant bank and brokerage house and introducing the provision for exemption of tax from dividend income. The Foreign Chamber has expressed its concern about the dependence of budget on foreign aid and loan from local source largely from banking sector, introduction of transfer pricing, imposition of 2 per cent tax on the gross bill of mobile phone which will affect 90 million people. The chamber also expressed its concern on withdrawal of the charging of minimum tax at 0.5 per cent of companies gross receipts irrespective of profit or loss, rationalisation of deduction of VAT at source and simplification of the procedure of price declaration, withdrawal of supplementary duty on locally manufactured products and withdrawal of the provision regarding inadmissibility of bonus royalty and technical know-how fees. FICCI feels that the proposed budget with necessary amendments will improve the socio-economic condition of the country.

News: The Independent/ Bangladesh/ 9-Jun-2012

Major (Retd) Dr Md Rezaul Haque , Chairman of the Board Audit Committee of Social Islami Bank Limited recently inaugurating an ATM Booth of the Bank at Sonargaon Branch. Deputy Managing Director of SIBL AMM Farhad, was present among others.

The Financial Express/Bangladesh/ 7th June 2012