Good morning. Here's what happened overnight and what you need to know today.
1.
How 2% Shareholding Rule Makes Bank Boards Businessmen’s Clubs: In the aftermath of the 2010 stock market crash, the regulator introduced a new directive next year, requiring sponsors and directors – excluding the independent ones – to hold at least 2% of a company's shares to qualify as a director. Collectively, sponsors and directors were mandated to own a minimum of 30% of the company's shares. Investors initially welcomed the move, hoping it would reinvigorate the stock market. The expectation was that directors, especially those who didn't already hold the required shares, would purchase more to retain their board positions or seek new directorships, leading to a market revival. (The Business Standard)
2.
IMF Team Due in Dec to Review Fourth Tranche of $4.7b Loan: The International Monetary Fund (IMF) is sending a team within the first week of December to review whether Bangladesh qualifies for the fourth tranche of a $4.7 billion loan programme. The IMF delegation, led by mission chief Chris Papadakis, will also suggest potential reforms required for securing an additional $3 billion loan, which was sought by the interim government to improve the country's forex reserve. (The Daily Star)
3.
Call Money Heats Up but Treasuries Stay Steady: Call money in interbank transactions heats up while treasuries stay steady following the policy-rate hike by the central bank in government bid for taming stubborn inflation. Bankers said the interbank call-money rate marked a significant rise Sunday. The weighted average rate (WAR) of call money rose to 9.87 per cent on the day from 9.50 per cent of the previous day. It was 9.56 per cent on Wednesday last. The call rate ranged between 9.50 per cent and 10.50 per cent on the day against the previous range between 9.00 per cent and 10.50 per cent. (The Financial Express)
4.
Tycoons Linked to Hasina Siphoned $17bn from Banks, BB Chief Tells FT: The Bangladesh Bank (BB) governor has accused tycoons linked to the former administration of Sheikh Hasina of collaborating with members of the country's military intelligence agency to siphon $17 billion from the banking sector during her rule. In an interview with the Financial Times, BB Governor Ahsan H Mansur claimed that the Directorate General of Forces Intelligence (DGFI) had facilitated forced takeovers of leading banks. Mansur estimated that Tk 2 lakh crore, or $16.7 billion, was moved out of Bangladesh after these takeovers through methods such as loans issued to the new shareholders and inflated import invoices. (The Daily Star)
5.
Bangladesh Losing Out to Pakistan in Home Textile Exports: Bangladesh has been struggling to recover lost work orders in the home textile segment, a significant volume of which shifted to Pakistan nearly two years ago. This shift occurred mainly due to the sudden doubling of gas prices in Bangladesh and significant devaluation of the Pakistani rupee against the US dollar. More recently, labour unrest in industrial belts and months of political unrest in Bangladesh have contributed to lower receipts. (The Daily Star)
6.
Dhaka Stocks Continue to Bleed as Confidence Wanes: Dhaka stocks witnessed another big fall on Sunday as risk-averse investors continued trimming their equity exposure amid waning confidence and economic worries in the country. DSEX, the key index of the Dhaka Stock Exchange (DSE), plunged by 149.2 points and settled at 4,965 points, compared to 5,115 points in the previous trading session. The Dhaka bourse has plunged to a level not seen in over four years, with the index dipping below the 5,000 mark. On Sunday, the BSEC formed a 4-member probe committee to investigate the recent continuous downtrend in the country’s capital markets. The committee will place its findings within 10 working days. (The Business Post)
----Saju Sarker
BBN/SSR/AD