FE Report Doulot Akter Mala :
Dhaka Stock Exchange (DSE) Monday proposed the government to impose 3.0 per cent tax on capital gains of banks, insurance companies and non-banking financial institutions (NBFIs) but not to levy anything on small investors. It has also proposed to introduce Tk 100 annually as surcharge against each BO (beneficiary owners) account to increase revenue collection. The prime bourse has also proposed not to make TIN (taxpayers identification number) mandatory for opening BO account and reduce corporate tax rate which is highest in the region. Read More

FE Report :
The Dhaka Stock Exchange (DSE) hit a new record in turnover Monday, crossing Tk 18.0 billion-mark, as the investors switched from one stock to another, after the finance ministry okayed the conversion of face value, dealers said. But share prices at the prime bourse dropped slightly for the second straight session amid volatile trading despite steep rise in banking and leasing stocks, which soared 3.62 per cent and 2.23 per cent respectively The benchmark DSE General Index (DGEN) ended at 5567.52 with a loss of 13.48 points or 0.24 per cent, dragged down by heavyweight Grameenphone that declined about five per cent. Read More

FE Report :
The Metropolitan Chamber has forecast that the country's GDP (gross domestic product) is likely to grow nearly by the projected 6.0 per cent in the current fiscal year (FY), driven by favourable service sector growth, stable domestic financial market and signs of global recovery. "Despite the slight under-performance of the leading sectors, it can be said that the growth momentum in Bangladesh economy continued in the January-March quarter of FY10, benefiting from the global recovery and the stability in domestic financial markets that stimulated demand for increased private sector credit," the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) said in its January-March quarterly review. Read More

FE Report :
The companies willing to split the face value of their stocks from Tk. 100 to Tk. 10 will get the regulator's nod upon examination of their track record, a member of the Securities and Exchange Commission (SEC) said. The member said the companies, which already completed formalities to split the face value, would get the SEC approval as early as possible if the regulator is pleased with their track record. The SEC said this Monday after getting a consent letter from the finance ministry, which paved the way of splitting the face value of the listed companies' shares. Read More

FE Report :
Securities and Exchange Commission (SEC) has given go-ahead to seven companies to raise their paid-up capital under private placement in accordance with some conditions set by the regulator. The SEC said this after taking a decision in this regard in its commission meeting. The companies which will be able to raise paid-up capital include GMG Airlines, Unique Hotels Limited (Hotel Westin), Energy Prima Limited, LankaBangla Securities, IIDFC and SN Securities Limited. Read More

FE Report Nazmul Ahsan :
China has offered to extend duty-free access to nearly 5,000 Bangladeshi products in a major goodwill gesture that has caught the trade officials here by surprise. The "stunning" offer was made by China last week and it followed the high profile visit by prime minister Sheikh Hasina to Beijing in March this year, commerce ministry officials said. "The Chinese embassy informed us of the offer. It is a huge goodwill gesture by Beijing," a senior commerce ministry official told the FE. "We are stunned by the magnanimity of the offer. Its beauty is that Beijing hasn't imposed any preconditions for availing the access, nor does it want any reciprocal action by Bangladesh," he added. Read More

FE Report :
Economists and business leaders Thursday at a seminar said the US provides preferential treatment to other countries on political consideration, and the Bangladesh government should engage politically skilled persons as negotiators at US-Bangla trade talks. "The United States provides market access facilities to other countries on political consideration, not for getting trade benefit," Centre for Policy Dialogue (CPD) chairman Professor Rehman Sobhan told a seminar. The seminar titled US-Bangladesh Trade and Economic Cooperation was organised by the Metropolitan Chamber of Commerce and Industry (MCCI) in the city on Thursday. "We have to understand the global reality that the developed countries are gradually losing their competitiveness in many products as the Asian economies are gaining the competitiveness," he said. Read More

FE Report :
Shareholders of Singer Bangladesh Ltd approved 30 per cent final dividend in addition to payment of 60 per cent interim dividend, making a total of 90 per cent for the year 2009 which is 200 per cent higher than last year. The approval came at the 30th annual general meeting (AGM) of the company held at the Trust Milonayaton in the city Wednesday. Singer Bangladesh Chairman Mahbub Jamil presided over the meeting, said a press release. The chairman in his address mentioned that in spite of the worldwide economic meltdown, Singer had been able to maintain its profitability. During the year under review, the company opened nine Singer Plus retail shops in different parts of the country and two new service centres in Jessore and Sylhet. Read More

FE Report Jasim Uddin Haroon :
At least five new paper mills with combined investment of more than Tk 5.0 billion have failed to begin production even after installing all machinery due to crises of power and gas, company officials told the FE. The combined production capacity of these mills is around 250,000 tonnes a year, equivalent to the country's existing capacity of writing and printing papers, they added. "My plant is fully ready to go into production. But we are not getting gas for long. This is frustrating," said Feroz Ahmed, a director of Creative Paper Mills Ltd at Rupganj, near Dhaka. The paper mills is the country's largest single unit having capacity of 200 tonnes a day. "We've invested Tk 1.12 billion in this plant," he added. Read More

FE Report :
MI Cement Factory Ltd, manufacturer of Crown Cement, submitted its indicative price worth Tk 93 to Securities and Exchange Commission (SEC) Wednesday for its approval to float initial public offering (IPO). Earlier on Sunday, the company organised a road show in the city to mobilise fund worth Tk 300 million from the public and the institutional bidders for its expansion. Responding to a volley of questions from the bidders, chairman of MI Cement Md Jahangir Alam said that his company had earned a robust profit during 2008-09 fiscal and this helped it earn Tk 9.40 on each share. Read More

FE Report Mohammad Mufazzal :
The securities regulator is going to increase the lock-in period for shares, which are issued under pre-IPO placement, in a move to stop abuse of the system and increase the supply of shares in the capital market, officials said. The Securities and Exchange Commission (SEC) will seek public opinions before enhancing the lock-in period. The SEC already discussed the issue in a recent meeting and also sat with both bourses of the country Tuesday to know their opinions about it. The move came after abuse of the pre-IPO placement by a few companies in the name of raising capital before going public. Read More

FE Report :
MI Cement Factory Ltd, manufacturer of Crown Cement, submitted its indicative price worth Tk 93 to Securities and Exchange Commission (SEC) Wednesday for its approval to float initial public offering (IPO). Earlier on Sunday, the company organised a road show in the city to mobilise fund worth Tk 300 million from the public and the institutional bidders for its expansion. Responding to a volley of questions from the bidders, chairman of MI Cement Md Jahangir Alam said that his company had earned a robust profit during 2008-09 fiscal and this helped it earn Tk 9.40 on each share. Read More

FE Report :
Square Pharmaceuticals, the country's largest medicine maker, has set up an insulin manufacturing unit in hopes to keep the highly expensive drug within patients' purchasing capacity. Finance Minister AMA Muhith inaugurated the state-of-the-art Insulin Manufacturing Unit at a ceremony at the Square's production headquarters in Gazipur Wednesday. Health Minister Prof AMF Ruhul Haque, health directorate secretary Sheikh Altab Ali, Square Group chairman Samson H Chowdhury and its managing director Tapan Chowdhury and diplomats of different countries were present on the occasion. Read More

FE Report :
Pubali Bank Limited has aimed to heighten its position to an international standard. " Our bank is a role model of government-turned private bank having the largest network in private sector to achieve a tremendous progress and now we eye for raising our standard to the international level," Helal Ahmed Chowdhury, the managing director of the bank told the FE in an interview Wednesday. In his reaction in winning the prestigious DHL-Daily Star Award as the 'best financial institution', Mr Chowdhury said this award will definitely encourage the bank management to reach a world-class standard bank with all compliances. Read More

FE Report :
The securities regulator might overlook the minimum IPO-size requirement to enable a few unlisted insurance companies to go public. Under the existing insurance act, the minimum paid-up capital requirement for a life insurance company is Tk 300 million and for non-life Tk 400 million. But the Securities and Exchange Commission (SEC) has recently fixed the minimum IPO size of a company willing to float its shares for public subscription at Tk 400 million. Read More

FE Report :
Dhaka stocks edged slightly higher Sunday on major gains by the banking sector as turnover crossed Tk 15.0 billion-mark after more than two months, boosted by large pickings by institutional and retail investors. The benchmark DSE General Index (DGEN) closed at 5626.15 with a gain of 10.86 points or 0.19 per cent, after closing slightly higher in the previous session. The broader All Shares Price Index (DSI) gained 13.44 points or 0.29 per cent to 4629.99 while DSE-20 Index comprising blue chips was up by 36.56 points or 1.22 per cent to 3015.28. Read More

FE Report :
Dhaka Stock Exchange (DSE) will take a fresh move to attract new companies to float shares in the stock market. "We are going to initiate meetings with the top directors of the companies so that they feel encouraged to go public on their own way," newly-elected DSE president Md Shakil Rizvi told the FE in an interview recently. Mr Shakil said the renewed DSE move will help remove the widening gap between demand and supply. Commenting on the latest trends of the stock market, Mr Shakil said the prime bourse of the country will again meet the National Board of Revenue (NBR) and Finance Ministry to get final assurance on getting exemption from new taxes. Read More

FE Report Sheikh Shahariar Zaman :
Four mutual funds (MFs), which got approval from the market regulator in the last two months to float shares, will have to follow the new SEC guidelines on private placement. The companies are LR Global, Popular Life First MF, Al Arafah Bank First MF and Green Delta First MF. The Securities and Exchange Commission (SEC) last week slapped curb on private sale of mutual funds to individuals and companies to boost the small investors' stake. Under the existing laws, a mutual fund could sell 40 per cent of its stake through private placements. Read More

Faruq A Siddiqi :
BANGLADESH'S stock market has witnessed impressive growth since 2007. Listing of Grameen Phone was a major recent event. It was expected that listing of GP would be a catalyst for other companies to follow. That is yet to happen. It appears that progress of new listing rather has slowed down. It has to get out of current stagnation and move towards further expansion. A large number of new investors from across the country are entering the market. Institutional investors are active in the market. Asset management companies are growing and their activities are visible. A number of proposals for new mutual funds are awaiting approval. These developments need to be seen positively. Policies regarding different methods of listing, IPO pricing, approval of new mutual funds and other market related matters should be made keeping long term market interest in view. It is desirable that short term policy interventions just to address a temporary market crisis are avoided. In a small but rapidly developing stock market, there will be problems like market manipulation, over pricing of stock, panic created by vested interest, price distortion, regulatory shortcomings and so on. In any stock market, there will bullish and bearish trends. Regulatory policies should be framed with long term vision. In recent months, some policy decisions are being taken to address current problems at the cost of long term market interest. These policy changes include fixation of minimum size of new public issue, imposing restriction on private placements, disqualifying private sector companies under direct listing and discouraging new mutual funds. Read More

FE Report :
The securities regulator approved Tuesday the prospectus of Beacon Pharmaceuticals Limited giving it the go-ahead for launching Initial Public Offering (IPO). The Securities and Exchange Commission (SEC) gave the approval in a meeting on the day. Beacon Pharmaceuticals Ltd., an innovative and technology-driven company, will offload 30 million ordinary shares, each having a face value of Tk 10 without any premium. In the meeting, the commission also decided in principle to ensure greater participation of eligible institutional investors in the bidding process for setting a reasonable indicative price of a share under the Book Building (BB) method. Read More