Read more about February’s business and international news
Textile gains on high exports
The textile sector gained 1.5 percent to stand at Tk. 9160 crore in market capitalization, a rise from last year’s figure of Tk. 8702 crore, thanks to steady growth in exports last year. Textile exports rose 5.78% year-on-year to $24.6 billion in 2014. The price earnings ratio of the sector stood at 19.4, where the average market PE was 15.51. The PE ratio is a valuation of a company’s current share price compared to its per-share earnings. A lower PE means investment is less risky. The positive vive in garment exports led investors to inject fresh funds into the sector, said IDLC Investments. Some fundamentally good stocks from the sector, like Envoy Textiles, Matin Spinning Mills, Saiham Cotton Mills, Saiham Textile Mills, Square Textile and Malek Spinning Mills, have PE ratios ranging between 7-15, which means the share price of the companies are lucrative for further investment, the investment bank said.
26,000 to get state training for IT Career
The government is providing free training to thousands of youth so that they can earn from home using technological tools and eventually go on to become entrepreneurs. Since 2013, about 26,000 youth have received training in the field of information technology, of which 12,000 are female, said Zunaid Ahmed Palak, the state minister for information and communication technology. In the next two years, the ministry will train another 55,000 young people.The training programme, which is run in 64 districts, involves both basic and advanced level of learning. Basic training lasts for a week and focuses on fundamental computer literacy. Advanced training includes graphic design, writing and translation, web design, mobile application, e-mail marketing, customer service, network administration, telemarketing, bookkeeping, copy writing and software project management.
BSCIC plots see poor investment
State-owned industrial estates saw minimal growth in investment in 2014 despite political stability throughout the year. The Bangladesh Small and Cottage Industries Corporation (BSCIC), which has 74 industrial estates in 59 districts, received Tk. 1,673.88 crore as new investment in 2014, up only 0.52% from the previous year. Of the investment last year, 56.26% was bank loan, 26.91% equity and the rest was entrepreneurs’ own funds, according to BSCIC data.
Private Sector Credit Grows 13% in 2014
Private sector credit grew 12.67% year-on-year to Tk. 531,051 crore in November, the fastest in a year. The growth came due to declining interest rates and a boost in business confidence in the first half of the current fiscal year. Bankers said manufacturing and productive activities are yet to pick up to the level of 2011-12, but trade, commerce and services sectors have kept the economy vibrant, leading to a rise in credit growth. Though November’s credit growth was the fastest so far this fiscal year, it is well below the central bank’s target of 14.5%.
Lower oil prices to boost Asia-Pacific economies
Economic growth in the Asia-Pacific developing countries will pick up moderately in 2015 if the current downward trend in the global oil prices continues and much-needed structural reforms are introduced, a UN agency has said in a survey. Developing countries in Asia and the Pacific are forecasted to grow at an average of 5.8% this year, up from 5.6% in 2014. The higher growth will be driven by improved economic performances in Bangladesh, India, Indonesia, Papua New Guinea, Republic of Korea and Thailand, the survey said.
Mutual funds pass another tough year of 2014
2014 was another tough year for the closed-end mutual funds as the demand remained sluggish despite being traded at reduced prices. Data shows it has been a trend for last several years in the country’s stock market. Analysts attributed the poor demand mainly to the lack of understanding about the mutual funds and distrust over fund managers.
Mutual fund industry is still at a nascent stage in Bangladesh, as it makes up very small market cap, which is only over 1% of total market cap of the Dhaka Stock Exchange. According to analysis of the LankaBangla Securities, among 40 closed-end mutual funds, only one fund—First Prime Finance Mutual Fund One— was traded at a premium or above cost value while all other funds were traded at a discounted or below-cost value in the just concluded year.
Ekhanei & OLX to merge into a single platform
Two biggest online classified marketplaces in the country – Ekhanei.com and OLX.com.bd – are merging into a single platform to help Bangladesh users close deal more easily. By the end of the merger, Ekhanei.com will retain its brand name. Ekhanei.com Managing Director Arild Klokkerhaug confirmed recently. The venture in Bangladesh will be 50.3% owned by SnT Classified, an equal shareholding joint venture between Schibsted and Telenor, and 49.7% owned by Naspers, the parent company of OLX.com.bd.
Government to talk to US about benefits for RMG Sector
Commerce Minister Tofail Ahmed said the government would discuss with the United States about duty and quota-free access of Bangladeshi garment products under the Bali decisions of WTO. The discussion could be held at a next WTO meeting, he told reporters after a meeting of the high-level committee on reviewing and monitoring of World Trade Orgainsation activities.
Commerce Minister presided over the meeting, attended, among others, by Commerce Secretary Hedayetullah Al Mamoon ndc and Additional Commerce Secretary and head of WTO cell in the ministry Amitava Chakrabarty. ‘We are working to prepare a road map to realise the benefits of WTO’s Bali decisions. We will talk about intellectual property rights issue at February 5 and 6 meetings of WTO on trade related intellectual property rights in Geneva,’ Tofail said.
FBCCI mulls taking legal protection for business
The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) would consider taking legal protection to get rid of destructive political programmes like hartal and blockade as they take a heavy toll on the economy.
‘In the past, we didn’t think about legal protection to get rid of political unrest. But given the prevailing circumstances, we’ll be compelled to seek legal protection if law permits,’ FBCCI President Kazi Akram Uddin Ahmed said. He also said the board of the FBCCI urged him to go for legal protection as it does not want to get affected further. Transportation has fallen in deep crisis as it suffers a loss of around Tk. 200 crore every day while industrial production witnesses a downward trend due to disruption to supply chain.
Atiur awarded ‘Central Banker of the Year’ in Asia-Pacific
Bangladesh Bank Governor Atiur Rahman has been awarded “Central Banker of the Year” in Asia-Pacific for 2015. The Banker, UK-based financial magazine of the Financial Times Group, declared the award on January 05. Atiur has been awarded in recognition of his role in stimulating growth and stabilising economy as well as promoting social and environmental initiatives.
On its website, the Banker said Atiur Rahman’s work exemplifies how central banks can play essential roles in providing capital for environmental and social development without compromising on growth or macroeconomic stability.
