Bangladesh RMG

RMG workers in a Bangladesh factory. BBN file photo.

Dhaka, Bangladesh (BBN) – The BBN (Bangladesh Business News) has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.

Bangladesh to reap benefits from US ending GSP for India
Bangladesh may see increased exports to US markets as the Donald Trump administration terminates preferential trade facilities for India, a close competitor of the country. On May 31, the US government announced its decision to end preferential tariffs for $5.6 billion of Indian exports from June 5 after determining that it has not assured the US that it will provide “equitable and reasonable access to its markets.

BB seeks release of Tk 3.0b for EEF’s farm projects
The Bangladesh Bank has requested the government to release Tk 3.0 billion to finance agriculture projects under the equity entrepreneurship fund (EEF), officials said. Some 2,308 applications have recently been submitted seeking loans, for food and agriculture-related projects from the EEF, which are now under processing, they added.

Foreign fund in DSE on the decline
Net overseas investment in the Dhaka bourse has been in the negative for the last three months. The amount hit Tk 65.16 crore in the negative in May when foreign investors purchased shares worth Tk 319.81 crore and sold Tk 384.97 crore, according to data of the Dhaka Stock Exchange.

Bangladesh’s imports grow by 5.36% in 10 months
Bangladesh’s imports grew by 5.36 per cent in the first 10 months of the current fiscal year (FY), 2018-19, following higher imports of intermediate goods and fuel oils, officials said. The actual import in terms of settlement of letters of credit (LCs) rose to US$45.79 billion during the July-April period of FY’19 from $43.46 billion in the same period of the previous fiscal, according to the central bank’s latest data.

Bangladesh’s stocks extend gaining streak last week
Bangladesh’s stocks ended higher last week that ended on Thursday as investors were active on large-cap shares before the national budget. Stocks kept gaining amid investors’ anticipation of favorable budget declaration coupled with the news of securities regulator’s steps to revise public issue rules, market operators said.

Most RMG factories miss deadline to pay May wage
Most of the 3,536 garment factories did not pay monthly wages for May until Sunday, missing the government’s deadline for meeting the obligation, officials said. Only 766 garment factories or 21.66 per cent out of the 3,536 units located in Ashulia, Gazipur, Narayanganj, Chattogram, Mymensingh and Khulna areas paid the monthly wage for May, they added. The units are under the purview of Industrial Police (IP).

Cos reluctant to follow BSEC order to block directors’ shares
The listed companies are showing their unwillingness to block their directors’ shares using a Central Depository Bangladesh module as per a directive market regulator Bangladesh Securities and Exchange Commission issued recently to prevent secret share-sales by directors. There are around 3,000 directors in the companies listed with the capital market. Of them, only around 300 directors have their shares blocked by the CDBL module so far.

Credit growth sinks to 56-month low
Private sector credit growth sank to a 56-month low of 12.07 percent in April on the back of the ongoing liquidity crunch in the banking sector, in an ominous development that stands to slow down the economy’s tremendous growth momentum. The growth is 4.43 percentage points less than the central bank’s target of 16.5 percent for the second half of the fiscal year. In the last two fiscal years, private sector credit growth hovered between 16 percent and 18 percent, only to dip at the turn of the fiscal year.