DSE to open window for laggard shares

Dhaka Stock Exchange (DSE) is expected to open a separate window for share trading of non-performing companies under Z category or low quality ones in a bid to discourage investors to bet on these issues, according to a DSE decision taken yesterday.

The DSE said trading of the shares of non-performing companies under Z category will take place at 'Over The Counter' (OTC) market, meaning that price movement of these shares will not be seen on the electronic board.

“The non-performing companies will be segregated from the main board. It's a message to the investors that 'don't go for these shares',” said DSE Director Md Rakibur Rahman.

The board formed a 10-member committee, headed by Rahman, to examine legal aspects and devise modalities for separating the non-performing companies under Z category.

The committee is expected to submit its recommendations within three weeks.

Companies that do not offer dividend and hold annual general meeting regularly and are out of operations fall under Z category.

The DSE moved to open an alternative trading platform based on a decision taken at a meeting with the market regulator last week to keep investors away from investing in Z category shares.

Out of more than 90 companies now listed under Z category, traces of many are not found, while some have gone out of operations. But trading of the shares of these companies is taking place as many retail investors are unaware of the present status of these companies.

According to the last week meeting decision, shares of the companies which are out of operations and whose net asset values are negative will be traded at OTC market.

The DSE initiative to open an OTC market comes as share prices of a number non-performing companies under Z category witnessed surge recently.

Officials said some 28 companies have been identified as non-performing ones but the list of the companies will be finalised after further investigation.

“We want to assure investors that no one will be able to cheat them,” Rahman said, adding that if the price movements of these issues are not seen on the electronic board, it will be difficult to manipulate prices.

Under the OTC system, DSE will open a separate counter where interested buyers and sellers of the shares of non-performing companies will announce prices and amounts of shares.

Transaction will take place if the announced prices of buyers and sellers match.

“It will have a positive impact on the market as investors' risk will minimise,” said Rahman.

Yawer Sayeed, chief executive of AIMS of Bangladesh, an asset management company, hailed the move and said it would bring transparency in the market.

“Investors will not be cheated,” he added.

Read more...

Banks go tech-smart to cut costs of business

Banks in Bangladesh are increasingly adopting technology-driven products to fast-track services to their clients at reduced costs.

The products and services include debit card, credit card, ATM (automated teller machine), POS (point of sales), online banking and Swift.

“It would have cost us a lot if we had provided the same services in a traditional way as we did by ATM last year,” said Abul Kashem Mohammad Shirin, deputy managing director of Dutch-Bangla Bank Limited (DBBL) that has over 350 ATM booths across the country.

DBBL transacted Tk 300 crore on average a month by ATM in 2008.

Technology-driven products are cost-saving, said Reazul Islam, senior vice-president and head of IT of AB Bank. A transaction by a human teller costs no less than Tk 50, but it is much lower for an ATM, he said.

Of the use of technology-driven bank products, Mohammad Shirin said demand for ATM services is rising rapidly followed by online and internet banking.

A few private commercial banks (PCBs) and foreign banks also offer limited customer services over the internet.

Only two banks adopted online services and one foreign bank adopted ATM services in 1998, but the number reached 29 and 26 respectively at the end of 2006, the central bank said in a research.

On the other hand, the number of banks offering credit card, popularly known as plastic money, increased from two to 15 in the same period.

Compared with other innovative services, adoption of POS was relatively slow. The number of banks that adopted the services increased from one to 10 banks.

In the same period, banks made intense efforts in introducing Swift services. In 1998, only four banks offered the services, with the number rising to 43 by the end of 2006. Swift is a Society for Worldwide Inter Bank Financial Telecommunication.

Debit card that allows customers instant cash transactions round the clock was introduced in 1999. The number of banks that issue debit cards rose to 22 by 2006.

"Banks have adopted technology-driven services to ensure transparency and save time, not to make profit," said Syed Masodul Bari, head of IT of Al-Arafah Islami Bank.

This is still a subsidised service for many banks.

“The products can benefit from it in the long term,” said Reazul Islam.

Although modern and innovative technology-driven products and services are convenient for the customers, the services still cover a small part of total transactions, the BB research observed.

“Banking in rural areas is mostly dominated by traditional products which are often time-consuming,” the BB research found.

In the backdrop, the central has taken initiatives to encourage the banks to adopt efficient methods such as automated cheque processing system, introducing cheques having MICR features, developing existing payment settlement system, and automation of the banking system so that commercial banks can extend coverage in offering modern services.

The services will help the customers in urban and rural areas, the BB said.

A total of 48 banks operate in Bangladesh. Of which, 30 are private, nine foreign and nine state-owned. All the banks have around 7,000 branches across the country.>

Read more...

EBL orientation programme held

Eastern Bank Limited (EBL) organised a foundation course and orientation programme for new-comers of the bank in the city recently, said a please.

The programme was designed to make newly appointed employees of the bank learn basic banking.

EBL Deputy Managing Director Mokhlesur Rahman and Head of Human Resources Sirajul lslam were present at the orientation programme.

They were also given an overview of the existing condition of the bank.

Read more...

IFIC Bank holds seminar on money laundering

International Finance Investment and Commerce (IFIC) Bank Ltd conducted a seminar on 'Prevention of money laundering' at its academy in the city recently, says a press release.

A total number of 73 branch managers of the bank attended the seminar.

Bangladesh Bank General Manager M Mahfuzur Rahman and its Anti-Money Laundering Department Assistant Director Md Abdur Rob were the main speakers at the seminar.

Salient features of the 'Money Laundering Prevention Ordinance-2008' and 'Anti Terrorism Ordinance - 2008' and the course of actions to be taken by the bank in the light of the ordinances were discussed at the seminar.

IFIC Bank Managing Director Mosharraf Hossain was present at the seminar and delivered his inaugural speech before the participants.

This was the 3rd programme of IFIC Bank Academy in 2009.

The seminar was jointly organised by IFIC Bank Academy and the Central Compliance Unit of Prevention of Money Laundering of the bank.

Read more...

Islami Bank total deposit reaches Tk 202.89b

The total deposit of Islami Bank Bangladesh Limited (IBBL) reached Tk 202.89 billion (20,289 crore) in January of the current year, showing a growth rate of 22 per cent against the corresponding period of the last year.

The total investment has reached Tk 205.55 billion, showing a growth rate of 15 per cent against the corresponding period of the last year.

This was disclosed at the review meeting of the top executives of the head office and zonal heads of the bank at the IBBL boardroom in the city Thursday, said a press release.

IBBL board of directors Chairman Abu Nasser Muhammad Abduz Zaher was present in the meeting as the chief guest while its Executive Committee Chairman Mominul Islam Patwary attended the concluding session of the meeting as the special guest.

Chaired by IBBL Managing Director M Fariduddin Ahmad, the meeting was addressed, among others, by its deputy managing directors and top executives Mohd Shamsul Haque, Mohammad Abdul Mannan, Md Habibur Rahman and Md Setaur Rahman.

Mr Zaher said the IBBL has achieved more speed this year in deposit, investment and remittance collections in order to maintain the success of the bank.

As employees of a leading bank they should discharge their responsibility to the people of the country as part of duty, he said.

"We have to present Islami Bank to the people through its services in such a way that people can realise that Islami Bank is 'My Bank', our Bank and Bank of the people", he added.

He urged the employees of the bank to build Islami Bank as the number one bank in the world.

To gain this goal the employees have to grow inter-personal competition and work with the mentality of helping each other, the IBBL chairman said.

Mr Patwary urged all to build up relationship with new importers and exporters.

The IBBL managing director said Islami Bank is a Shariah compliant bank and said, complete compliance of Shariah in every investment and transaction is their commitment.

He urged the executives to work for reaching the service of Islami Bank to the doorsteps of the people of the country.

Read more...

Dhaka stocks close downbeat

Staff Correspondent
Dhaka stocks finished Thursday downbeat after posting a gain in the previous day in a volatile trading amid a downtrend at the market in recent weeks, market operators said.
The general index of Dhaka Stock Exchange lost 3.93 points, or 0.15 per cent, to close at 2649.49, while its blue chips index, DSE20, shed 6.14 points, or 0.28 per cent, to finish at 2175.11.
A merchant bank official said investors, especially retailers, remained shaky amid the downtrend at the market in recent weeks. Starting with an upbeat mood, the market seesawed throughout the day, he said.
Of the total 263 issues traded, 159 advanced, 97 declined, and seven remained unchanged.
Turnover at the DSE, however, increased to Tk 297.59 crore from the Wednesday’s Tk 261.43 crore.
Beximco Pharmaceuticals topped the turnover leaders with a total transaction of Tk 36.56 crore.
Shinepukur Ceramics, Beximco, Aftab Automobiles, Summit Power, Lafarge Surma Cement, Titas Gas, LankaBangla Finance, Aims 1st Mutual Fund, and Grameen Two Mutual Fund were the rest of the top 10 turnover leaders.
Chittagong stocks dropped on Thursday.
The selective categories index of Chittagong Stock Exchange lost 21.42 points, or 0.40 per cent, to close at 5282.19, while its blue chips index, CSE30, shed 42.22 points, or 0.61 per cent, to finish at 6855.88.
Of the total 159 issues traded on the CSE floor, 81 posted gains, 74 dropped, and four remained unchanged.
Turnover at the CSE went up to Tk 49.38 crore from the Wednesday’s Tk 37.96 crore.

Read more...

Stocks end nearly flat

Dhaka stocks ended the week virtually unchanged with investors wandering from one sector to another looking for profit.

The market witnessed a cyclical profit-taking trend, analysts said, adding that the investors, especially the individuals, were randomly switching sides -- sometimes influenced by rumours -- to make profits.

“A short-term profit-taking trend appeared in the market. The investors want to book whatever the profit is after four or five days of trade,” said Arif Khan, general manager of IDLC Finance, yesterday.

The benchmark index of Dhaka Stock Exchange, DSE General Index (DGEN), fell 3.92 or 0.14 percent, to 2,649.49 points. The DSE All Share Price Index however rose 2.1 points, or 0.09 percent, to 2,196.96 points.

A total of 2,93,97,643 shares worth Tk 297.58 crore changed hands on the DSE. Of the 263 traded securities on the DSE, 159 advanced, 97 declined and seven remained unchanged.

Beximco Pharma topped the turnover leaders on the DSE with 20,93,100 traded shares worth Tk 36.55 crore. The other turnover leaders were Shinepukur Ceramics, Beximco, Aftab Automobiles, Summit Power, Lafarge Surma Cement, Titas Gas, LankaBangla Finance, AIMS 1st Mutual Fund and Grameen Mutual Fund One: Scheme Two.

Chittagong stocks recorded a slight fell yesterday. The CSE Selective Categories Index declined 21.42 points, or 0.4 percent, to 5,282.19 points. The CSE All Share Price Index also fell 11.3 points, or 0.13 percent, to 8,157.31 points.

A total of 63,91,118 shares worth Tk 49.38 crore changed hands on the Chittagong Stock Exchange. Of the 159 traded scrips on the port city bourse, 81 advanced, 74 declined and four remain unchanged.

Beximco Pharma topped the turnover leaders on the CSE with 3,85,650 traded shares worth Tk 6.73 crore. The other turnover leaders were Beximco, AIMS 1st Mutual Fund, Shinepukur Ceramics, Grameen Mutual Fund One: Scheme Two, AB Bank, Bextex, BSRM Steels, LankaBangla Finance and Union Capital.

Read more...