DAILY BUSINESS NEWS

Daily Business News

September 13, 2020

BUSINESS NEWS ANALYSIS REPORT

commission alone cannot do it, he persons who are out to gobble up said. "To diversify products of the investors' hard-earned money through Capital Market News market and make the market debt- various deceitful acts. The warning based rather than equity-based, we came from chairman of the approved many bonds," he said. Bangladesh Securities and Exchange Good governance, digitalisation can Commission (BSEC) Prof. Shibli After taking over in May, the new charge up stock market: analysts Rubayat Ul Islam as he spoke at a commission led by Islam approved webinar on Saturday. Leading market Good governance, digitisation, zero coupon bonds worth Tk 850 operators and analysts, among others earnings growth of listed companies crore, subordinated bonds worth attended the virtual event. and supportive macro-economy are around Tk 3,500 crore and local bonds the key to a sustainable stock market, of Tk 100 crore. The commission will In reply to a question over continuing analysts said yesterday. Their allow stock brokers to open digital job of the officials of brokerages and comments came in a webinar -- outlets abroad in order to attract non- merchant banks prohibited by the Towards a sustainable capital market: resident Bangladeshis and foreign former leadership of the commission, the drivers of growth -- jointly investors to the market, Islam said. To Prof. Islam said the securities organised by Bangladesh Merchant ensure transparency, the BSEC is regulator will publish the names of Bankers Association (BMBA) and working to digitise every sphere of those officials. "The list of sponsor- Capital Market Journalists' Forum trading and activities of the stock directors, who do not have required (CMJF). The stock market should be market, he said. amount of shares, will also be healthy and properly governed published," the BSEC chairman said, https://www.thedailystar.net/business because only then people will come to adding the commission will be /news/good-governance- the market, said Prof Shibli Rubayat facilitating the sponsor-directors who digitalisation-can-charge-stock- Ul Islam, chairman of Bangladesh are holding the required volume of market-analysts-1960437 Securities and Exchange Commission shares. (BSEC). BSEC to clarify role of independent The role of independent directors of directors soon The BSEC wants to stop looting, the stock exchanges and listed cheating and all types of fraudulent The securities regulator will continue companies also drew flak from the activities in the stock market, but the its crackdown on unscrupulous participants of the webinar. "The DAILY BUSINESS NEWS | 2

BSEC is annoyed with the role of Dhaka stocks in the past week sales pressure was also observed over independent directors. A package advanced for the 12th week as rising the week as many investors moved to outlining the role of independent fund flow on the financial market and realise profits from the recent gains. directors will be announced soon," market stabilising measures by the They said that many investors, said the commission boss. securities regulator boosted investors’ especially the institutional investors, confidence. were still incurring losses as they had He said the boards of non-compliant DSEX, the key index of the bought shares at high prices before the companies, which want to remain out Dhaka Stock Exchange, advanced by pandemic and missed the opportunity of touch, will be restructured to ensure 1.69 per cent, or 83.47 points, over to profit from the rally. their accountability. "We've taken an the week to close at 5,011.3 points on initiative to restructure the Investment September 10, the last trading session These investors moved to reshuffle Corporation of Bangladesh as the of the week. their portfolios with the aim to invest corporation has deviated from its The DSEX gained 1,050 points in the in other profitable companies that mandate," said Prof. Islam, adding the 12-week rally during which the market created huge sales pressure on the government will provide the ICB with recovered Tk 68,475 crore in market market. Average share prices of a substantial amount of fund to capitalisation. The key index remained telecommunication, textile, non-bank complete its makeover. positive in four out of the fiveday financial institutions and banks advanced by 7.2 per cent, 4.0 per cent, He said capable brokerage houses trading week as investors kept 1.2 per cent and 0.9 per cent have also been asked to take the injecting funds on the market amid respectively. initiative to open outlets overseas so growing confidence. The continuous that non-resident Bangladeshis can be surge on the market lifted the DSEX to Share prices of some fundamentally actively involved in trading. "Market a one-year high on September 10. weak companies, including the turnover worth around Tk 10 billion is The rally started on June 18 when the Bangladesh Industrial Finance not enough for our capital market. The index was at 3,960.5 points. Market Company, Intech Limited and turnover should be Tk 30 billion to Tk operators said that new investors International Leasing and Financial 50 billion," said the BSEC chairman, brought fresh funds every day on Services soared by more than 45 per adding that more products such seeing continuous gains on the market. cent over the week. Out of the 362 Islamic sukuk bond will be introduced Many retail investors who injected issues traded in the past week, 217 soon to ensure the diversification of fresh funds during the pandemic made advanced, 119 declined and 24 the capital market. huge profits in the rally that remained unchanged. He said the securities regulator is encouraged other investors to invest Daily average turnover on the DSE thinking about a common platform to on the stock market. inched down to Tk 1,058.95 crore in ensure the representation of the central According to Bloomberg data, the the past week compared with that of bank and the securities regulator, country’s stock market has been the Tk 1,059.85 crore in the previous among others, to stem the inflow best performing market globally in week. DSE’s blue-chip index DS30 window-dressed financials of listed August, gaining 15.8 per cent. The advanced by 1.45 per cent, or 24.82 and non-listed companies. "The market had been in the doldrums for points, to finish at 1,740.23 points. Financial Reporting Council will play two years due to the lack of DSES, the Shariah index of the a huge role there." Speaking on the governance on the financial market, bourse, also added 1.46 per cent, or listing of good companies, the BSEC including the capital market, followed 16.7 points, over the week to close at boss said Dhaka Electric Supply by the coronavirus fallout. 1,158.53 points. Beximco Company and Rupali Bank, among Pharmaceuticals led the turnover chart others, will offload more shares soon. However, investors’ confidence with shares worth Tk 344.13 crore The BSEC chairman has also said strengthened in recent weeks amid changing hands in the past week. market operators can disburse margin signs of economic recovery in the https://www.newagebd.net/article/11 loans taking out foreign loans at lower country and various measures taken by 6059/stocks-extend-rally-to-12th- interest rate. the Bangladesh Securities and Exchange Commission to stabilise the straight-week https://thefinancialexpress.com.bd/sto market. ck/bangladesh/bsec-to-clarify-role-of- independent-directors-soon- The Bangladesh Bank’s expansionary 1599967244 monetary policy and the government’s permission to allow undisclosed Stocks extend rally to 12th straight money to be invested on the market Industry News week also contributed to the surge. Heavy

DAILY BUSINESS NEWS | 3

Import ban on used cars to leave the https://www.thedailystar.net/business The government is relying on its market uneven /news/import-ban-used-cars-leave- declared Tk 1.03 trillion stimulus the-market-uneven-1960449 packages for various sectors to offset The government's plan to impose a the COVID-19 shock and bring back ban on the import of reconditioned normalcy in overall economic vehicles to promote local activities for calculating relatively manufacturing and assembling will higher revenue earnings for a mid- create an imbalance in the domestic Economy News term period, reports UNB. According market, according to Bangladesh to an official document, the Reconditioned Vehicles Importers and government has estimated Tk 4318 Dealers Association (Barvida). ADB approves $50m loans to fund, billion for revenue collection for Manufacturing cars in Bangladesh implement PPP infrastructure 2021-22 fiscal year while Tk 4927.6 would be a matter of national pride projects in Bangladesh billion for 2022-23 fiscal. Besides, the and Barvida encourages this initiative, target for the current 2020-21 fiscal said Abdul Haque, president of the The Asian Development Bank (ADB) year has been fixed at Tk 3780 billion. association. on Thursday confirmed US$50 million loans to promote, fund, and It is expected that it would be helpful But the government should give implement public-private partnership to achieve the revenue target of the priority to the choice of customers (PPP) infrastructure projects in government during the mid-term before going for such a ban as 85 per Bangladesh. The Manila-based lender period through implementing declared cent of the passenger cars in signed a loan agreement with the stimulus packages and the reform Bangladesh at present are imported Bangladesh government. programmes taken in the revenue reconditioned vehicles, he said. The sector. proposed policy will destroy Using ADB’s financial intermediary competition between the importers of loan, the Strengthening Bangladesh The revenue target for the 2020-21 reconditioned and brand-new cars, he Infrastructure Finance Fund Limited fiscal year has been fixed at 8.6 per said. "The government didn't even Project will provide long-term local cent higher than the revised target of include a representative from this currency financing for qualified PPP the 2019-20 fiscal year. The initial sector while preparing the draft infrastructure subprojects. ADB has revenue target for the 2019-20 fiscal policy." been a long-standing partner to was Tk 3778.1 billion, which was support BIFFL to promote PPP earlier fixed at Tk 3480.7 billion. To Currently, state-run Pragati Industries programme and develop its pipeline of achieve the revenue target, the assembles cars designed by Japanese projects. ADB has also assisted the collection has to be increased by 22.5 automaker Mitsubishi Motors while government to develop the PPP Act, per cent than the actual revenue target PHP Motors, a sister concern of the set up the PPP office, and an in 2018-19 fiscal, which was Tk PHP Family based in Chattogram, institutional framework for PPPs in 2518.8 billion. manufactures cars made by Malaysia's addition to supporting priority sectors PROTON Holdings Berhad. Besides, of Bangladesh as a transaction The document mentions that Indian automotive giants Tata Motors advisor. installation of electronic fiscal device, and Mahindra & Mahindra recently full implementation of new VAT Law showed interest to go for similar A $650,000 technical assistance grant and new customs law the revenue partnerships with local manufacturers from ADB’s Financial Sector collection will be strengthened on to grab a bigger slice of the growing Development Partnership Special mid-term basis. Of the total revenue automobile industry in Bangladesh. Fund will support BIFFL to review target for the next 2021-22 fiscal year, and update its corporate strategy, as the National Board of Revenue (NBR) An immediate ban on import of well as assess and improve capacity to will provide Tk 3755.4 billion where reconditioned cars would be a suicidal manage the environmental and social Tk 1297.2 billion will come from step for the government as it directly safeguards, and project income and profit tax, Tk 415.7 billion earns at least Tk 4,000 crore in implementation. from customs duties and Tk 1999.5 revenue from import duties alone, he billion from VAT and supplementary added. Besides, Barvida also helps in https://thefinancialexpress.com.bd/ec duties. the country's economic development onomy/adb-approves-50m-loans-to- by paying both value-added and fund-implement-ppp-infrastructure- The non-NBR revenue will be Tk income tax. Over the past three years, projects-in-bangladesh-1599741328 179.2 billion while the non-tax about Tk 20,000 crore has been Govt counts on Tk 1.03t stimulus revenue Tk 383.4 billion. In the 2022- invested in the sector, which created at packages to offset COVID-19 shock 23 fiscal year, the target for the NBR least 30,000 direct employments. has been estimated at Tk 4268.2 DAILY BUSINESS NEWS | 4

billion where Tk 1476.7 billion will the multinational lender in a press partner bank for its new blockchain come from income and profit tax, release. cross-border remittance solution. while Tk 477.4 billion from customs The bank is the fund settlement bank The Ant Group's cross-border duties and Tk 2265.6 billion from and regulatory approval-holder for the remittance service supports the real- VAT and supplementary duties. The service. Ant Group's applied time transfer, which saves money, non-NBR revenue will be Tk 222.5 blockchain technology helps simplifies procedures, and ensures billion, while the non-tax revenue will streamline the remittance process, security and transparency, according be Tk 436.9 billion. radically improving the speed of to a blog on Alibaba Cloud, a https://thefinancialexpress.com.bd/ec delivery and information security and subsidiary of Alibaba Group. Standard onomy/govt-counts-on-tk-103t- enhancing the transparency of the Chartered Bangladesh is keen to work stimulus-packages-to-offset-covid- process. The blockchain is a with Ant Group to introduce similar 19-shock-1599739136 distributed ledger of data records that services in other countries where is jointly maintained by multiple Bangladeshi migrant workers reside in

parties and continuously stored in a large numbers, said Bijoy. blockchain structure. Company News Saudi Arabia, the United Arab When a remittance is sent from a Emirates, Oman, Qatar, Bahrain, remitter's wallet, all participants Malaysia and Singapore are the top StanChart rolls out first blockchain receive the information destinations of Bangladeshi migrant remittance service simultaneously and collaborate to workers. Remittance hit an all-time Standard Chartered Bangladesh complete the remittance transaction high of $18.2 billion in the just- yesterday rolled out a blockchain- simultaneously. Malaysia is home to concluded fiscal year. about a million Bangladeshi migrant powered remittance service for https://www.thedailystar.net/business workers, sending home $1.23 billion Bangladeshis working in Malaysia to /news/stanchart-rolls-out-first- in remittance in the last fiscal year, allow them to send money home on a blockchain-remittance-service- Bangladesh Bank data showed. real-time basis, without any hassle and 1958749 at lower costs. The southeast Asian country is the The bank has teamed up with Ant seventh highest source of remittance Group, one of the world's leading for Bangladesh. Migrant workers sent digital financial services providers $235.57 million in July and $196.31 million in August. Similar service has based in Hangzhou, China; bKash, the top mobile financial service in been launched on two corridors Bangladesh, and Valyou, a financial involving four countries, one is between Hong Kong and the technology company in Malaysia, to provide the service. The service is in Philippines and the second one is the final stages of commercial testing between Malaysia and Pakistan. In June 2018, Standard Chartered was and will be available to customers in Bangladesh and Malaysia soon, said appointed by Ant Group as the core

Price Sensitive News

Trading Code: SOUTHEASTB News Title: SOUTHEASTB: Consent from BSEC for issuance of Non-Convertible Subordinated Bond News: (Continuation news of SOUTHEASTB): of Unsecured, Non-Convertible, Floating rate, Subordinated Bond through Private Placement as per provisions of the Securities and Exchange Commission (Private Placement of Debt Securities) Rules, 2012. The purpose of issuance of the Bond is to increase the Tier-II Capital of the Bank. (end) Post Date: 2020-09-13

Trading Code: SOUTHEASTB News Title: SOUTHEASTB: Consent from BSEC for issuance of Non-Convertible Subordinated Bond DAILY BUSINESS NEWS | 5

News: Refer to their earlier news disseminated by DSE on 28.10.2019 regarding issuing Non Convertible Subordinated Bond, the Company has further informed that BSEC has accorded consent for raising capital amount of Tk. 500.00 crore only through issuance (cont.) Post Date: 2020-09-13

Trading Code: ENVOYTEX News Title: ENVOYTEX: Credit Rating Result News: Credit Rating Agency of Bangladesh Limited (CRAB) has announced surveillance entity rating of the Company as "AA1" along with a stable outlook based on audited financial statements up to June 30, 2019; unaudited financial statements up to March 31, 2020, bank liability position as on June 30, 2020 and other relevant quantitative as well as qualitative information up to the date of rating declaration. Post Date: 2020-09-13

Trading Code: BANGAS News Title: BANGAS: Q3 Financials News: (Q3 Un-audited): EPS was Tk. 0.29 for January-March 2020 as against Tk. 1.03 for January-March 2019; EPS was Tk. 0.87 for July 2019-March 2020 as against Tk. 3.26 for July 2018-March 2019. NOCFPS was Tk. (1.03) for July 2019-March 2020 as against Tk. (0.65) for July 2018-March 2019. NAV per share was Tk. 21.56 as on March 31, 2020 and Tk. 22.22 as on June 30, 2019. Post Date: 2020-09-13

Trading Code: BANGAS News Title: BANGAS: Q2 Financials News: (Q2 Un-audited): EPS was Tk. 0.33 for October-December 2019 as against Tk. 1.13 for October-December 2018; EPS was Tk. 0.57 for July-December 2019 as against Tk. 2.23 for July-December 2018. NOCFPS was Tk. 1.15 for July-December 2019 as against Tk. (1.36) for July-December 2018. NAV per share was Tk. 21.27 as on December 31, 2019 and Tk. 22.22 as on June 30, 2019. Post Date: 2020-09-13

Trading Code: BANGAS News Title: BANGAS: Q1 Financials News: (Q1 Un-audited): EPS was Tk. 0.26 for July-September, 2019 as against Tk. 1.10 for July-September, 2018; NOCFPS was Tk. 0.70 for July-September, 2019 as against Tk. 1.67 for July-September, 2018. NAV per share was Tk. 22.48 as on September 30, 2019 and Tk. 22.22 as on June 30, 2019. Post Date: 2020-09-13

Trading Code: MPETROLEUM News Title: MPETROLEUM: Sign an agreement with 3 Companies for selling LPG News: The Company has informed that for the purpose of business expansion, the Company has signed an agreement with Beximco LPG Unit � 1 Ltd., Bashundhara LP Gas Limited and Omera Gas One Limited to sale of LPG by establishing LPG (Autogas) Refueling Station and Liquefied Petroleum Gas Conversion workshop parallel with the sale of Refueling oil through registered Filling Station. They also informed that as per the agreement, the Company will receive royalty of Tk. 0.50 against per Liter sale of LPG. Post Date: 2020-09-13

Trading Code: EXCH News Title: DSENEWS: Information about Time to access to DSE Trading system News: Considering the current cybersecurity situation and alert received from BGD e-GOV CIRT, DSE has decided to allow access of TWS and DSE-Mobile App to the Trading system from 8:00 am to 8:00 pm on trading day only. The measures have been taken for the greater interest of the Exchange, Investors and Nation as a whole. We shall normalize the access of the users to the Trading system once the situation is improved. Post Date: 2020-09-13

Trading Code: PADMAOIL News Title: PADMAOIL: Signed an Agreement with Omera Gas One Limited News: The Company has informed that for the expansion of business, the Company has signed an agreement with Omera Gas One Limited, Dhaka to sale LPG by establishing LPG (Auto gas) Refueling Station parallel to the sale of Petroleum Oil through company's registered Filling Stations. As per the agreement, the Company will receive royalty of Tk. 0.50 against per Liter sale of LPG (Auto gas). Post Date: 2020-09-13

Trading Code: JAMUNAOIL News Title: JAMUNAOIL: Signed an Agreement with Omera Gas One Limited DAILY BUSINESS NEWS | 6

News: The Company has informed that for the expansion of business, the Company has signed an agreement with Omera Gas One Limited, Dhaka to sale LPG by establishing LPG (Auto gas) Refueling Station parallel to the sale of Petroleum Oil through company's registered Filling Stations. As per the agreement, the Company will receive royalty of Tk. 0.50 against per Liter sale of LPG (Auto gas). Post Date: 2020-09-13

Trading Code: EXCH News Title: DSENEWS: Commencement of Bidding of Mir Akhter Hossain Limited News: (Continuation of DSENEWS): The minimum tick size (minimum bidding value) for bidding shall be Tk. 50 (fifty) lac which is in accordance with the BSEC consent letter to Mir Akhter Hossain Limited Ref: BSEC/CI/BB-18/2018/174 dated August 23, 2020. Participating EIs will be required to pay full bid amount (100%) and bidding fee Tk. 5,000.00 (five thousand only) (cont. 3) Post Date: 2020-09-13

Trading Code: EXCH News Title: DSENEWS: Commencement of Bidding of Mir Akhter Hossain Limited News: (Continuation of DSENEWS): Electronic Subscription System (ESS) of the Exchanges will start at 10:30 a.m. on October 1, 2020 and continue till 10:30 a.m. on October 5, 2020. Each EI who intends to participate in the electronic bidding shall maintain a minimum investment of Tk. 1.00 crore only in listed securities as on the end of 17th September, 2020 as per clause (c) of sub-rule (1) of rule 2 of the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015. (cont. 2) Post Date: 2020-09-13

Trading Code: EXCH News Title: DSENEWS: Commencement of Bidding of Mir Akhter Hossain Limited News: DSENEWS: Commencement of Bidding of Mir Akhter Hossain Limited through Book Building Method: The bidding period for Eligible Investors to determine the cut-off price of shares of Mir Akhter Hossain Limited through Electronic Subscription System (ESS) of the Exchanges will commence from 5:00 p.m. on September 27, 2020 and will continue till 5:00 p.m. on September 30, 2020 (round the clock) and valuation report submission period for Eligible Investors through (cont. 1) Post Date: 2020-09-13

Trading Code: EXCH News Title: DSENEWS: Commencement of Bidding of Energypac Power Generation Limited News: (Continuation of DSENEWS): Social Islami Bank Limited (A/C Name: Dhaka Stock Exchange Limited, A/C No.: 0021360003343) in between 10:00 a.m. of September 21, 2020 to 2:00 p.m. of September 24, 2020 (during banking hour). Please visit the following website for bidding related updates: https://www.essbangladesh.com. (end) Post Date: 2020-09-13

Trading Code: EXCH News Title: DSENEWS: Commencement of Bidding of Energypac Power Generation Limited News: (Continuation of DSENEWS): Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015. The minimum tick size (minimum bidding value) for bidding shall be Tk. 50 (fifty) lac which is in accordance with the BSEC consent letter to Energypac Power Generation Limited Ref: BSEC/CI/BB-12/2017/166 dated August 16, 2020. Participating EIs will be required to pay full bid amount (100%) and bidding fee Tk. 5,000.00 (five thousand only) through (cont. 3) Post Date: 2020-09-13

Trading Code: EXCH News Title: DSENEWS: Commencement of Bidding of Energypac Power Generation Limited News: (Continuation of DSENEWS): through electronic subscription system (ESS) of the Exchanges will start at 10:30 a.m. on September 27, 2020 and continue till 10:30 a.m. on September 29, 2020 (round the clock). Each EI who intends to participate in the electronic bidding shall maintain a minimum investment of Tk. 1.00 crore only in listed securities as on the end of 13rd of September, 2020 as per clause (c) of sub-rule (1) of rule 2 of the (cont. 2) Post Date: 2020-09-13

Trading Code: EXCH News Title: DSENEWS: Commencement of Bidding of Energypac Power Generation Limited News: DSENEWS: Commencement of Bidding of Energypac Power Generation Limited through Book Building Method: The bidding period for Eligible Investors to determine the cut-off price of shares of Energypac Power Generation Limited through Electronic Subscription System (ESS) of the Exchanges will commence from 5:00 p.m. on September 21, 2020 and will continue till 5:00 p.m. on September 24, 2020 (round the clock) and valuation report submission period for eligible investors (cont. 1) Post Date: 2020-09-13

Trading Code: EXCH DAILY BUSINESS NEWS | 7

News Title: DSENEWS: Commencement of electronic subscription of Associated Oxygen Limited News: (Continuation of DSENEWS): The City Bank Limited (A/C Name: Dhaka Stock Exchange Limited, A/C No.:1121063938001) in between 10:00 a.m. of September10, 2020 to 2:00 p.m. of September16, 2020 (during banking hour). Please visit the following website for subscription related updates: https://www.essbangladesh.com. (end) Post Date: 2020-09-13

Trading Code: EXCH News Title: DSENEWS: Commencement of electronic subscription of Associated Oxygen Limited News: (Continuation of DSENEWS): Associated Oxygen Limited Ref: BSEC/CI/IPO-293/2019/161 dated August 6, 2020. The Central Depository Bangladesh Limited (CDBL) shall send a report to the exchange regarding the holding of EIs in the listed securities and the exchange shall ensure the compliance in this regard. Participating EIs will be required to pay full subscription amount (100%) and subscription fee Tk. 3,000.00 (three thousand only) through (cont. 3) Post Date: 2020-09-13

Daily Business News UFCML Research Team Contact:

Rishad Reza Nur Analyst Mob: 01715551555 Email: [email protected]

UTTARA FINANCE CAPITAL MANAGEMENT LIMITED Jibon Bima Tower (6 th Floor), 10 Dilkusha C/A, Dhaka-1000, Bangladesh.