Business
26 firms to get national productivity, quality excellence awards Sunday
Twenty-six firms will get the "National Productivity and Quality Excellence Award 2020" Sunday for continuously improving their productivity and quality.
Industries Minister Nurul Majid Mahmud Humayun will hand out the awards to the winners as the chief guest at an event in the capital, according to the Press Information Department.
Read: Traders urged to keep market stable ahead of Eid-ul-Azha
The National Productivity Organisation (NPO) of the Ministry of Industries has organised the programme.
In five categories, 26 firms will receive the National Productivity and Quality Excellence Award 2020 and one trade body the "Institutional Appreciation Award 2020" as recognition of their contribution to the industrial sector.
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Traders urged to keep market stable ahead of Eid-ul-Azha
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has called upon traders to sell products at prices fixed by the government to keep the market stable ahead of Eid –Ul- Azha.
FBCCI Senior Vice-president and convener of market monitoring committee Mostofa Azad Chowdhury made the call at a discussion meeting with Mohammadpur Town Hall, Dhaka North City Corporation Kitchen Market Traders Association Saturday afternoon.
During the meeting, Mostofa Azad urged to keep the domestic market stable and not to capitalize on the global market crisis.
Read: Inflation, unstable forex rate major challenges: BB governor
He instructed the market committee for monitoring the market to ensure that the products are sold at the prices fixed by the government.
Ahead of Eid-ul-Azha, still there is no crisis of spices, he told reporters after the meeting.
“FBCCI will recommend the names to the govt. agencies for punitive measures if it finds anyone responsible for creating an artificial crisis by stockpiling goods,” he said.
Besides, he urged the mill owners to send the dealers list for sugar, salt, flour etc. to FBCCI.
Read: OECD delegation interested in FBCCI's Innovation Centre
President of Mohammadpur Townhall Dhaka North City Corporation Kitchen Market Merchant Association Md. Lutfar Rahman (Babul) informed that the association shut down the shops which were accused of stockpiling and selling goods at a higher price and this will continue in future.
Among others, FBCCI Director Bijoy Kumar Kejriwal, Harun-Or Roshid, General Secretary of Mohammadpur Townhall Dhaka North City Corporation Kitchen Market Merchant Association Md. Muslim Uddin Shikder were also present at the meeting.
Inflation, unstable forex rate major challenges: BB governor
Bangladesh Bank (BB) governor Fazle Kabir on Saturday said banking sector is currently facing big challenges of inflation and unstable forex exchange rate in the post Covid-19 period.
“A huge trade deficit has been created due to these reasons. To deal with this, not only Bangladesh Bank, but all the government and the private commercial banks have to work collectively,” he said.
Fazle Kabir said this while addressing Al-Arafah Islami Bank Scholarship Awarding Ceremony at the chief guest at the Officers’ Club in the city.
Also read: BB to set uniform exchange rate to stabilize volatile dollar
”We have imposed a number of restrictions on imports and if we refrain from importing luxury goods at this moment it will reduce the pressure on the forex reserves ,” he said.
“In the case of LC Open, we have given some margins to comply with them. We are providing dollars directly from the central bank's reserves to ease the crisis. It will continue. Besides, we have been given opportunity to import necessary products including food, baby food, fertilizer, fuel and electricity, and other products. We are discouraging import of products that are not very necessary,” Kabir added.
Also read: Dollar rate: BB governor to hold meeting with bank MDs Thursday
Chairman of Al-Arafa Islami Bank Selim Rahman presided over the function. Managing Director and CEO of the bank Farman R. Chowdhury, members of the Board of Directors, senior officials, scholarship recipient students and parents were also present on the occasion.
Under its Social Responsibility Programme, Al-Arafah Islami Bank provided scholarships to 200 meritorious students who have passed HSC and equivalent examinations in 2019.
Share Market Investment Guide: How to Invest in Stocks in Bangladesh
Investing in the stock market or share market is one of the most popular ways to increase wealth in the modern age. However, investing in the stock market can be difficult, especially if you are a new investor. So, if you are a beginner, the best way you can start is by gaining experience. The share market is a volatile and risky investment, so do your research before making any decisions. Here is what you need to know about investing in the stock market in Bangladesh.
Types of Stock Market
There are two types of markets in which you can invest - primary and secondary. Let’s take a look at the investment process in both these markets.
Primary Market
The primary stock market refers to the main market where companies sell their shares to the public. The main goals of the primary stock market are to provide a means for investors to buy public shares and to provide information about company performance. If you want to invest in the primary market, you have to invest in an IPO (Initial Public Offering).
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It is the process through which a private company offers its shares to the public for the first time and becomes a public company. Through the IPO, the company involved provides its name on the stock market as an Initial Public Offering. A company owned by shareholders lets you know the basics of ownership and sells you some part of the company.
Secondary Market
The secondary stock market refers to a market where stocks that have been sold by their original owners are traded between investors. The secondary market is important because it allows small investors to buy and sell shares of companies that they may not be able to get access to through the primary market. To invest in the secondary market, you will need a BO (Beneficiary Owner’s) account.
Opening a BO Account
To invest in the stock market in Bangladesh, you need to open a BO account in a broker house. A BO account is like a bank account, but you can open it at a broker’s house. You can deposit and withdraw money in your BO account just like a bank account.
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However, there is no need to keep the minimum deposit. You will then decide whether you want to invest in the primary market (IPO) or the secondary market (buy/sell shares). Nowadays, it is easy to open a BO account, deposit money, and buy and sell shares online using different broker’s websites.
To open a BO account, you will need to go through some steps.
A person can open two BO accounts in one name. One is an individual account; the other is a joint account. Bangladeshi applicants must have an account with any bank in Bangladesh. Nonresident applicants must have an FC or NRB account in Bangladesh.
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Upon choosing a brokerage house, you can open a BO account online using the broker’s website or the ways they provide to you. Fill out the form properly. Essential documents/information you will need are a photo of the applicant, a copy of the National Identity Card (NID) of the applicant, joint applicant and nominee (scan/photo), nominee’s picture, copy of the bank check (scan/photo) and picture of the second applicant in case of the joint account. Depending on the broker, you will need to pay Tk. 500- Tk. 2000 while opening a BO account.
According to the new rules, to apply for an IPO, an investor must have a minimum mature share of Tk. 20,000 in his BO account number. Shares will be allotted proportionally instead of the IPO lottery. In that case, an investor can deposit Tk. 10,000 for a share.
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How to Buy and Sell Stocks in Bangladesh?
You can buy and sell stocks by showing up in person at the brokerage office, calling the broker, or initiating a trade via the DSE mobile app. Brokerage houses typically charge a commission anywhere between .25% and .50 % for each transaction. So, if you buy Tk. 1000 stock, the brokerage will charge you Tk. 2.5 if the rate is .25%.
However, if you want to trade via DSE mobile app, you will have to register via the brokerage house. Despite being required monthly paid subscription the app has waved the fees due to the Covid 19 last year.
What Beginners Should Consider before Investing in Share Market
If you are interested in starting investing but don’t know where to start, these five tips can help.
Know Your Goals
Before you invest in the stock market, you will need to know your goals. What are you hoping to achieve by investing in the stock market? Do you want to make money? Are you looking to make some investments to fund your retirement? Or do you just want to learn about the stock market?
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Understand How the Stock Market Works
You will need to understand how the stock market works before you invest. You will need to understand what the stock market is, what it does, and what it isn’t. You will also need to understand how it affects the economy and what are the risk factors.
Learn How to Invest
Once you know how the stock market works, you can start learning how to invest. There are lots of different strategies to invest in the stock market, and it can be a bit confusing. You will want to learn about the different types of investments you can make and what they do.
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Start Small
You will want to start small when you invest in the stock market. Start with a small amount of money, and keep your investments low. You can always increase your investment later on.
Be Patient
You will need to be patient when you invest in the stock market. It can take a while for your investments to grow, and it can be frustrating if they don’t. You will need to stay patient and be willing to wait for your investments to grow.
Final Words
Investing in the stock market can be a lucrative venture, but it is important to do your research and have a plan in place. Before investing in stocks, you should know the associated risks. Moreover, you should think ahead and stay prepared for potential stock market crashes. In this article, we have discussed a guideline for beginners to invest in the share market of Bangladesh. Hope it helps!
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Asian shares’ rise broadly cheered by US earnings, rally
Asian shares gained Friday as investors cheered a strong set of earnings from retailers that has sent U.S. shares higher.
Benchmarks were rising in early trading across the region, including Japan, China, Australia and South Korea.
“Improved risk sentiments in Wall Street, along with earnings outperformance from Alibaba and Baidu, may aid to fuel some upside for the Asia region into today’s session,” said Yeap Jun Rong, market strategist at IG in Singapore.
Shares of Alibaba and Baidu have surged after they reported better than expected results, easing some concerns about the negative impact from restrictions to curb COVID-19 infections. Both shares continued to rise in early trading.
Also Read: Asian stock markets higher after Wall St sinks further
Gauging Japan’s economic path will be on investors’ minds as data on manufacturing, housing and employment for April are set to be released next week. Some analysts expect the numbers to be dim because of a slowdown in exports to China during that period. But some optimism is also in the air, with Tokyo’s restrictions on tourists easing and the daily cap raising from 10,000 incoming people to 20,000 starting June 1. The Japanese government, led by Prime Minister Fumio Kishida, is also set to push ahead in parliamentary discussions with a supplementary budget, another possible plus for investors.
Japan’s benchmark Nikkei 225 added 0.8% in early trading to 26,811.06. Australia’s S&P/ASX 200 gained 0.9% to 7,167.70. South Korea’s Kospi jumped 1.0% to 2,638.92. Hong Kong’s Hang Seng surged 2.8% to 20,687.39, while the Shanghai Composite edged up 0.6% to 3,141.15.
Wall Street ended broadly higher after seven straight weeks of declines, the longest such stretch since 2001.
Bond yields rose. The yield on the 10-year Treasury, which helps set interest rates on mortgages, rose to 2.75% from 2.74% late Wednesday.
Roughly 90% of the stocks in the S&P 500 rose, with technology companies, banks and retailers driving much of the rally. While trading has remained choppy this week, the market has mostly pushed higher, unlike the past five weeks, when the S&P 500 had a pullback of 2% or more at least one day each week.
“It’s nice to see a couple days in the green, and this might actually end up being the first week when we don’t have a humongous down day,” said Liz Young, head of investment strategy at SoFi. “But I wouldn’t declare premature victory and assume we’re in the clear.”
The S&P 500 rose 79.11 points, or 2%, to 4,057.84. The Dow added 516.91 points, or 1.6%, to 32,637.19, and the Nasdaq rose 305.91 points, or 2.7%, to 11,740.65. The Russell 2000 index of smaller companies climbed 39.07 points, or 2.2%, to 1,838.24.
Retailers led the broader market higher Thursday. Macy’s surged 19.3% after it raised its profit forecast for the year following a strong first-quarter financial report. Dollar General vaulted 13.7% and Dollar Tree jumped 21.9% for the biggest gain in the S&P 500 after the discount retailers reported solid earnings and gave investors encouraging forecasts.
The retail sector is being closely watched by investors looking for more details on just how much pain inflation is inflicting on companies and consumers. Weak reports from the several big companies last week, including Target and Walmart, spooked an already volatile market.
“We’re not convinced that we’re completely out of the woods here,” said Philip Orlando, chief equity market strategist at Federated Hermes. “There were a lot of negative reports last week and what those companies have talked about is what is going on through the economy.”
Inflation is at a four-decade high and businesses have been raising prices on everything from food to clothing to offset higher costs. The impact from Russia’s invasion of Ukraine worsened inflation pressures by fueling higher energy and key food commodity costs. Supply chain problems worsened in the wake of China’s lockdown for several major cities as it tried to contain COVID-19 cases.
Consumers have been resilient about spending, but the pressure from inflation remains persistent and could be prompting a pullback or shift in spending from more expensive things to necessities.
The broad gains on Thursday followed a late push for markets on Wednesday prompted by details from the Federal Reserve’s latest meeting, which confirmed expectations of more interest rate hikes.
Technology stocks also rose. TurboTax maker Intuit rose 4.6%. Companies in the sector, with their lofty stock values, tend to push the market harder up or down.
Airline stocks rallied on encouraging summer travel forecasts. Southwest Airlines rose 6% and JetBlue rose 3.4%.
In energy trading, U.S. benchmark crude added 36 cents to $114.45 a barrel. U.S. crude oil prices rose 3.4% Thursday, and are up more than 55% for the year. Brent crude, the international standard, rose 45 cents to $117.85 a barrel.
In currency trading, the U.S. dollar inched down to 126.79 Japanese yen from 127.10 yen. The euro cost $1.0763, up from $1.0733.
Pran to collect 65,000 tonnes of mangoes in 2022
Pran is set to collect 65,000 tonnes of mangoes this year to manufacture drinks, juices and other food items which are exported to some 145 countries.
The agro-processor started collecting and pulping mangoes in its plants in Natore and Rajshahi Thursday.
Sarowar Hossain, general manager of Barind Industrial Park in Rajshahi, said: "We are collecting mangoes from Rajshahi, Natore, Chapai Nawabganj, Naogaon, Dinajpur, Meherpur and Satkhira. In the first phase, we will buy the Guti variety. After that, we will collect the Ashwani variety."
Read: Serbia keen to invest in food storage industry in Bangladesh: FBCCI
Kamruzzaman Kamal, marketing director of Pran-RFL Group, said, "We collected more than 40,000 metric tonnes of mangoes last year."
"Pulp is being produced in our plants following aseptic technology. It helps preserve the pulps for two years while maintaining their taste and freshness without freezing. We are manufacturing mango juices and drinks throughout the year from these pulps."
Read: Govt mulls amnesty to bring back laundered money: Finance Minister
BB to set uniform exchange rate to stabilize volatile dollar
Bangladesh Bank (BB) has decided to set a uniform exchange rate of US dollar with taka for all banks to follow to tame the volatile forex market.
The central bank asked the banks and foreign exchange dealers to recommend a uniform rate by Sunday on which it can take a decision.
This emerged from a tripartite meeting the central bank held on Thursday with the Association of Bankers, Bangladesh (ABB), an association of banks’ CEOs-MDs, and Bangladesh Foreign Exchange Dealers Association (BAFEDA).
Also read: Dollar rate: BB governor to hold meeting with bank MDs Thursday
The meeting also warned banks to stay away from any manipulation in destabilize the forex market amid a fall in the reserve.
Md Serajul Islam, executive director and spokesperson of BB told reporters after the meeting it also discussed ways to increase remittance, curb unnecessary import and some other banking issues.
The BB governor Fazle Kabir assured liquidity support and dollar supply to the banks to meet the dollar demand and bring back stability in the market.
Also read: BB depreciates taka by Tk 0.40 against US dollars
Besides, the BB decided to stop selling export bills from a bank to any other bank.
ABB Chairman and BRAC Bank Chief Executive Officer (CEO) Selim RF Hussain told UNB, several decisions have been taken in the meeting to ensure discipline and transparency in the foreign exchange market.
OECD delegation interested in FBCCI's Innovation Centre
A visiting delegation of the Organisation for Economic Co-operation and Development's (OECD) Development Centre has shown interest in the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) Innovation Centre – to be set up to meet Bangladesh's post-LDC challenges.
The FBCCI will set up an innovation centre for skill upgradation, research and innovation to deal with the new situation after 2026, the trade organisation's leaders told the delegation during a meeting Wednesday.
Read: Serbia keen to invest in food storage industry in Bangladesh: FBCCI
They sought the OECD's support for the initiative.
Annalisa Primi, head of the Economic Transformation and Development Division at the Development Center, expressed her interest in the FBCCI centre and hoped to learn more about it.
Serbia keen to invest in food storage industry in Bangladesh: FBCCI
Serbian Foreign Affairs Minister Nikola Selakovic has expressed his country’s interest in investing in the food storage industry of Bangladesh.
The visiting minister expressed his interest during a courtesy call on FBCCI senior vice-president Mostofa Azad Chowdhury Babu on Thursday.
Selakovic said his country's storage companies are one of the best in the world and Bangladesh can also benefit from Serbia's investment in this sector.
“ Serbia has free trade agreements with Europe, the Eurasian Economic Union and Turkey. Bangladesh may benefit by establishing joint ventures and export at zero duty to those free trade countries,” he said.
Read: Govt mulls amnesty to bring back laundered money: Finance Minister
He also expressed interest in signing two agreements on double taxation and investment protection and promotion with the government of Bangladesh to increase bilateral trade.
Serbia is also keen to take skilled and semi-skilled manpower from Bangladesh for construction and agriculture sectors, the minister said.
At the same time, the minister urged Bangladeshi students to go to Serbia to study agricultural engineering as the country provides world best facilities of its kind.
In response, Mostofa Azad Chowdhury said that 30 percent of agricultural products are wasted in Bangladesh every year due to lack of packaging, transportation and storage.
The two sides also agreed to sign a memorandum of understanding between the Serbian Chamber of Commerce and Industry and the FBCCI soon.
Read: Finance minister directs regulators to boost investment in stock market
The meeting also discussed import of sunflower seeds, contract cultivation of wheat in Serbia, and establishment of the Serbian Embassy in Dhaka.
Serbia's assistant minister for bilateral relations Vladimir Maric, Foreign Minister's Adviser Ivan Jaksic, FBCCI Vice-President Habib Ullah Dawn, Director Amzad Hossain, Shomi Kaiser, Dr. Nadia Binte Amin, Abul Kasem Khan and Secretary General Mohammad Mahfuzul Hoque, were, among others, present in the meeting.
World stocks lower after Fed confirms rate hike plans
Major global stock markets were mostly lower Thursday after notes from the Federal Reserve’s latest meeting confirmed expectations of more interest rate hikes but held no surprises to rattle investors.
London, Tokyo, Hong Kong and Sydney declined. Frankfurt and Shanghai gained. Oil prices rose.
Investors are uneasy over the impact of interest rate hikes in the United States and other Western economies to cool surging inflation. Wednesday’s Fed release showed board members support 0.5-percentage-point hikes at their next two meetings. That will weigh on economic activity but already was factored into stock prices.
There were no “hawkish or dovish surprises” or mentions of a bigger increase, Anderson Alves of ActivTrades said in a report.
In early trading, the FTSE 100 in London lost 0.1% to 7,516.42 while Frankfurt’s DAX gained 0.4% to 14,057.88. The CAC in Paris advanced 0.3% to 6,320.42.
On Wall Street, the future for the benchmark S&P 500 index was off 0.1% and that for the Dow Jones Industrial Average was little-changed.
Also Read: Asian stock markets higher after Wall St sinks further
On Wednesday, the S&P 500 index rose 0.9% after from this month’s Fed meeting showed board members agreed half-point rate hikes “would likely be appropriate.” That would be double the usual margin of increases.
In Asia, the Shanghai Composite Index gained 0.5% to 3,123.11 while the Nikkei 225 in Tokyo lost 0.3% to 26,604.84. The Hang Seng in Hong Kong sank 0.3% to 20,116.20.
The Kospi in Seoul declined 0.2% to 2,612.45 after the South Korean central bank raised its benchmark interest rate by 0.25 percentage points to 1.75%.
“With price pressures set to remain elevated in the near term, we expect the Bank to continue hiking in quick succession over the coming months,” Alex Holmes of Capital Economics said in a report.
Sydney’s S&P-ASX 200 ended 0.7% lower at 7,105.90.
India’s Sensex gained 0.8% to 54,173.63. New Zealand declined while Southeast Asian markets rose.
Investors also are worried about the impact of Russia’s February invasion of Ukraine and an unexpectedly sharp Chinese economic slowdown.
They hope the Fed can cool inflation that is running at a four-decade high without tipping the biggest global economy into recession.
The Fed raised its key interest rate by 0.5 percentage points at its May meeting in its most aggressive move in two decades. It indicated more hikes were to come.
The S&P 500 is coming off of a seven-week series of declines that came close to ending the bull market for stocks that began in March 2020.
In energy markets, benchmark U.S. crude 70 cents to $111.03 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price basis for international oils, gained 43 cents to $111.55 per barrel in London.