Dhaka stocks plunge further on persisting sale pressure

Share prices continued to fall across the board on Dhaka Stock Exchange (DSE) as a persisting sale pressure created high supply-demand mismatch.

The daily transaction increased at the bourse mainly because of voluminous shares’ offloading by the investors on selling spree, which at the end of the session pushed all the three indices towards record low in past few months.

After hitting over 8-month to close the previous session, the broader DSEX lost 52.22 points to finish Tuesday’s session at 4345.03, with the blue-chip DS30 and Shariah DSES plunging at 1669.16 and 1064.21 respectively.

The trade volume at Tuesday’s close rose to 6.90 crore shares and the value to Taka 325 crore from Monday’s 6.53 crore worth Taka 305 crore. The higher activities on the supply side effectively created a mismatch with the demands on the market, forcing issues from all sectors to close lower.

Out of traded 308 issues, 246 incurred losses when only 39 managed to close moderately higher and 23 remained static.

Prime Textile, Shurwid Industries, Union Capital, Samata Leather and Continental Insurance were the worst losers.

Among major advancing issues, United Power finished the session significantly higher with over 15.0 percent rise on its post disclosure trading. The company got good response from investors after announcing Taka 59.64 crore profit after tax.

The other major gainers were Pharma Aid, IFISLMF1, Ambee Pharma and Reliance Insurance.

United Power topped the trading list followed by Ifad Autos, ACI, MJLBD and Grameenphone. (source: bss)

Oman welcomes Bangladeshi manpower in SMEs sector

Omani Minister of Manpower Shaikh Abdullah bin Nasser bin Abdullah Al Bakri has appreciated the contribution of Bangladeshi workers in Oman’s economic development, especially in agricultural and construction sectors.

The appreciation came when State Minister for Foreign Affairs Shahriar Alam met with Shaikh Abdullah bin Nasser bin Abdullah Al Bakri in Muscat on Monday, said a foreign ministry press release.

The state minister is on a two-day official visit to Oman. Oman is currently hosting more than half a million Bangladeshi workers—both male and female.

Shahriar Alam told the Omani minister that Bangladesh was ready and willing to provide more skilled and semi skilled manpower in the rapidly growing industrial and service sectors of the Sultanate, based on the demand of the Omani government as well as the private sector.

In this regard, he also said that Bangladesh has professional, technical, skilled, semi-skilled and unskilled young workforces who can be employed in the Sultanate for its further economic development.

Omani Minister opined that there were opportunities in small and medium enterprises (SMEs) sector. He stressed the need for strengthening development co-operation between the two countries.

He heartily welcomed Bangladeshi skilled and semi-skilled workers to work in Oman abiding by the rules and regulations of the Sultanate.

The Omani minister stressed on regular consultation and discussion between the two governments to create more opportunities for Bangladeshi workers.

He mentioned that Oman will host Bangladesh-Oman 4^th Joint Committee Meeting (technical committee) on all issues related to employment of Bangladeshi workers in Oman.

Shahriar Alam also held a meeting with Saeed bin Saleh Al Kiyumi, Chairman, Oman Chamber of Commerce and Industry, who also enjoys the status of a cabinet minister.

The Chairman showed keen interest to enhance bilateral trade and investment cooperation between the two brotherly countries.

The Chamber leader also showed interest to form a Bangladesh-Oman Joint Business Council with the participation from businessmen from both the countries, who can enhance cooperation further in the field of trade, commerce and investment.

He reiterated that both Bangladesh and Oman should engage constructively to enhance bilateral trade considering huge Bangladeshi expatriates working in Oman.

Shahriar Alam said that Bangladesh has the potential to offer a lot of products and services with higher quality and at competitive prices, like readymade garments, textiles, software, frozen food, ceramic, agro-based products, plastic, wooden furniture, regular furniture and steal products, pharmaceutical products, etc.

He added that both the countries sometimes lose these opportunities due to the time consuming visa obtaining procedure for Bangladeshi businessmen.

He sought the Chamber’s cooperation in facilitating an expeditious visa procedure for Bangladeshi business people.

Shahriar Alam invited the Chairman to lead a high level Omani business delegation to Bangladesh to explore opportunities in different sectors, especially in the maritime sectors.

The Chamber president agreed to lead an Omani business delegation to Bangladesh very soon.

He also advised that after formation of the proposed Joint Business Council, Bangladesh side could consider sending a high level business delegation.

The chairman assured him of all cooperation from his side to improve further bilateral trade. (source: bss)

Bangladesh inflation rises to 6.27 percent in March

Bangladesh marked upward trend in the rate of inflation for the second time in the current fiscal year 2014-15 as it stood at 6.27 per cent in March as against 6.14 per cent in February, according to the latest data of Bangladesh Bureau of Statistics (BBS).

“Recent communication disruption has increased the cost of transportation that pushed the inflation slightly up in this month” Planning Minister A H M Mustafa Kamal told reporters today while releasing the monthly Consumer Price Index (CPI) at a press conference at the NEC conference room in the city’s Sher-e-Banglanagar.

The rate of inflation in March 2014 was 7.48 per cent.

Apart from the general inflation, rate of food inflation has also increased. The non-food inflation, however, witnessed downward trend.

The food inflation in national level stood at 6.37 per cent, which was 6.11 per cent in February while the non-food inflation came down at 6.12 per cent from 6.20 per cent in February.

On the other hand, the rate of inflation in the urban level stood at 6.77 per cent and rural level at 6.01 per cent.

In the rural level, the food inflation stood at 5.95 per cent, up from 5.72 per cent in the previous month, while the non-food inflation decreased to 6.13 per cent as against 6.22 per cent in February.

Besides, in the urban areas the food inflation stood at 7.36 per cent, up from 7.02 per cent. But, the non-food inflation witnessed downward trend and it stood at 6.11 per cent as against 6.18 per cent in February.

The national wage index rate witnessed a 9.27 per cent growth in March with 9085.62 point which was 8986.37 point in February.

The average year to year rate of inflation from April 2014 to March 2015 stood at 6.66 per cent, which was 7.55 per cent from April 2013 to March 2014. (source: bss)

Bangladesh exports increases by 7 percent on garment sales

Bangladesh’s exports increased by 7.4 percent in March from a year earlier to $2.59 billion, increasing for a fifth straight month, driven by stronger sales of ready-made garments, official data showed on Tuesday.

Exports from July to March, the first three quarters of the financial year, rose nearly 3 percent from the same period a year earlier to $22.9 billion, 5 percent short of the target, the Export Promotion Bureau said.

Sales of ready-made garments, comprising knitwear and woven items, totalled $18.63 billion in the July-March period, compared with nearly $18.05 billion a year earlier.

Garments are a vital sector for the South Asian nation, whose low wages and duty-free access to Western markets have helped make it the world’s largest apparel exporter after China.

However, political unrest over the past few months could cast a pall over the garment industry, which has already been under pressure after factory accidents, including the collapse of a building housing factories in April 2013 that killed more than 1,130 people.

Exporters said achieving growth target would not be possible.

“Buyers are expressing their concern over the current political violence. They are ready to give us more orders but political uncertainty preventing them from placing more orders,” Shahidullah Azim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association, said.

Bangladesh’s exports in the 2014-15 financial year are expected to rise 10 percent from a year earlier to $33.2 billion.

Garment exports for the current financial year have been targeted at $26.9 billion, up 10 percent from previous year’s $24.5 billion when clothing sales surged 14 percent.

“It won’t be possible to achieve the growth target for this current fiscal year,” Azim said. (Source: Reuters)