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.