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Daily News Recap
Wednesday, May 13, 2015
Ecnec approves second submarine cable project
The Executive Committee of National Economic Council yesterday approved 10 projects
involving Tk 2,365 crore, including a project to install the country's second submarine cable
connection. Ecnec in a meeting chaired by Prime Minister Sheikh Hasina allocated Tk 660.64
crore to the submarine cable project.
Once Bangladesh gets its second connection, it will obtain bandwidth of more than 1,300 gigabits
per second or Gbps in addition to the existing 200 Gbps, Planning Minister AHM Mustafa Kamal
told reporters after the meeting.
http://www.thedailystar.net/business/ecnec-approves-second-submarine-cable-project-81926
Bangladesh National Insurance gets go-ahead for IPO
The stockmarket regulator yesterday gave the green light to Bangladesh National Insurance
Company to raise Tk 17.70 crore from the public. The insurer is set to float 1.77 crore ordinary
shares worth Tk 10 each, the Bangladesh Securities and Exchange Commission said in a
statement.
Bangladesh National Insurance will use the funds from the initial public offering (IPO) to invest in
fixed deposit receipts and treasury bonds. The company's earnings per share (EPS), excluding
extraordinary income, as of July 2014 stood at Tk 1.07 with a net asset value per share of Tk
15.65. Prime Finance Capital Management is the issue manager of the IPO.
http://www.thedailystar.net/business/bangladesh-national-insurance-gets-go-ahead-ipo-81947
Finally govt backtracks on its plan to establish FSC
The government has backtracked on its plan to establish a fuel supply company (FSC) with
dominance of a private firm for import and supply of furnace oil to country's oil-fired power plants,
said officials.
State-owned Bangladesh Petroleum Corporation (BPC), its three subsidiary oil marketing and
distribution companies, Bangladesh Independent Power Producers' Association (BIPPA) and
Bangladesh Energy Companies Association (BECA) opposed the move. If permitted, FSC would
interrupt the activities of BPC which invested billions of BDT to import and store fuel oil.
www.thefinancialexpress-bd.com/2015/05/13/92462
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Capital Market Research Department
Daily News Recap
Wednesday, May 13, 2015
BB buys US$20m directly from 2 commercial banks
The central bank has expedited purchase of the US dollar from the banks recently to help keep
the inter-bank foreign exchange (forex) market stable, officials said. As part of the move, the
Bangladesh Bank (BB) bought US$20 million directly from two commercial banks Tuesday to
protect the interests of both exporters and migrant workers by keeping the exchange rate of
Bangladesh Taka (BDT) against the greenback stable.
"The inflow of foreign currency has increased recently to higher inflow of remittance along with
steady growth of export earnings," a BB senior told the FE while explaining the latest market
situation. Bangladesh received $ 334.72 million as remittances between May 1 and May 8 from
Bangladeshi nationals who are working abroad, according to the central bank's latest statistics.
http://www.thefinancialexpress-bd.com/2015/05/13/92493
Export earning set to fall $2b short of target
The country’s export earnings in the financial year 2014-15 is set to fall around $2 billion short of
target as readymade garment exports witnessed sluggish growth because of restructuring of the
garment sector and also political turmoil, economists and exporters said. The export earnings in
the first 10 months of the FY15 stood at $25.30 billion, which is 5.71 per cent short of the target
of $26.83 billion, according to the Export Promotion Bureau data released on Tuesday.
With the current trend of $2.3 billion-$2.8 billion monthly export, the country may fetch at best
$5.8 billion in the remaining two months of the fiscal year taking the total export earnings to around
$31 billion, around $2 billion short of annual target of $33.20 billion, estimated the analysts.
The government has set the export earnings growth target at 10.02 per cent for the current
financial year 2014-15 — the lowest target rate since the FY09 when the goal was 15.50 per cent.
http://newagebd.net/119228/export-earning-set-to-fall-2b-short-oftarget/#sthash.tBe81MdS.dpuf
Current account balance turns negative $1.14b
The country’s current account balance registered a deficit amount of US$ 1.14 billion in the first
nine months of the current fiscal year 2014-15 against a surplus amount of US$ 1.69 billion during
the same period of FY2013-14 due to a negative growth in trade balance, services and primary
income.
The current account balance which is the gap between components such as export receipts and
net earnings in services, including remittances, and import payments and profit repatriation by
multinationals and local people, registered a surplus amount of US$ 2.60 billion between July and
March of FY13.
http://newagebd.net/119226/current-account-balance-turns-negative-114b/#sthash.KZp5aDwl.dpuf
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Capital Market Research Department
Daily News Recap
Wednesday, May 13, 2015
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