Govt withdraws notice only hours after its issuance

The government issued Wednesday a notification prohibiting public servants from being involved in any kind of speculative business, including investment in the capital market, only to withdraw it after a few hours due to 'unavoidable' circumstances.

A circular, signed by senior secretary of the ministry of public administration Abdus Sobhan Sikder, was issued Wednesday afternoon directing the employees and officials of the government, semi-government and autonomous bodies to refrain from investing in the capital market. The circular was issued in compliance with the relevant Public Servant (conduct) rules, 1979.

When contacted by the FE, Sikder, however, confirmed the withdrawal of the said notification in the same evening.

"The notification has been postponed for the time being due to some unavoidable circumstances," Mr. Sikder said.

Experts blame policymakers for undisclosed money whitening

Experts and market insiders have blamed some of the policymakers and key stakeholders, who prescribed and demanded the facility of whitening undisclosed money through investing in stock market, although meagre amount of such money is invested.

They said some policymakers and stakeholders demanded the opportunity of whitening undisclosed money in the stock market in the name of stabilising it.

However, in lieu of being stabilised the market is rather experiencing price manipulation and volatility, following confusion regarding the announcement and clarification of the undisclosed money whitening facility, they added.

Govt won't impose tax on share market profit

The government has approved a proposal to modify income tax laws to bring dynamism into the capital market, report agencies. The approval came from a cabinet meeting held with Prime Minister Sheikh Hasina in the chair Monday, meeting sources said. They said the cabinet endorsed a tax rebate proposal on share market profit. "From now on no tax will be imposed on share market profit," said a source close to the meeting.

SEC finishes bulk of probe into Dec-Jan share debacle

The securities regulator has completed bulk of its investigation into the recent stock market crash, but it has no plan to disclose the outcome before the end of the probe deadline, its chief said Sunday.

M. Khairul Hossain, chairman of the Securities and Exchange Commission (SEC), said the regulator was "seriously" conducting probe into the misdeeds, blamed for the December-January stock debacle that gutted thousands of small investors.

Summit wins 300-450mw Bibiyana power plant bid

News Source: http://bit.ly/8XQLXr

The largest local power giant Summit has finally won the Bibiyana 300-450 megawatt (mw) gas-fired combined cycle power plant as it became the lowest bidder Thursday to construct the plant.

With this win Summit has become the first local company to win a big power plant in Bangladesh after offering to sell electricity at a tariff rate of Tk 3.32 per unit (1 kilowatt-hour).

"It was a very competitive bidding and I am happy that I could complete the selection process," director general of Power Cell Mahboob Sarwar-e-Kainat told reporters.

Malaysian YTL Power International Berhard was the nearest competitor for the Bibiyana power plant, he said.

Four foreign and local firms and their joint ventures including-Shasha Denims and its joint-venture partner MPC Consortium of Meiya Power Company Ltd (Hong Kong) and the Otobi Ltd along with Asian Entech Power Corporation Ltd and their joint-venture partners China National Machinery and Equipment Import and Export Corporation (CMEC) - were qualified primarily by the Power Cell.

Seven firms initially showed interest to install the 300-450mw gas-fired Bibiyana power plant.

"We are very glad to be the lowest bidder," Summit Power Chairman Muhammed Aziz Khan said.

"We will utilise the world's most efficient engine from GE of USA to generate extraordinarily low-cost and environment-friendly electricity," he said.

Summit Industrial and Mercantile Corporation (Pvt) Ltd and its partner GE Energy LLC will build the power plant after signing necessary deals.

Bibiyana power plant, which is also known as Bibiyana -1 power plant, will be implemented on a build, own and operate (BOO) basis pursuant to a 22-year implementation agreement.

The government will provide necessary land and required gas to the selected sponsors for generating electricity.

It will also purchase electricity from the sponsor, who will offer to sell electricity at lower rate.

The estimated cost for installing the Bibiyana plant would be over $300 million.

Multilateral donor agency the World Bank is set to provide funding to implement the power plant project.

The plant would generate electricity by consuming natural gas from US oil giant Chevron-operated Bibiyana gas field.

Bibiyana power plant site is located near the town of Sadipur, Habiganj district near Sylhet and approximately 180 kilometres northeast off the capital.

The plant will comprise a complete gas fired combined cycle facility of 330 mw to 450mw with all support facilities required for commercial operation, said a power ministry official.

The main power block shall consist of one or more gas turbines, one or more gas turbine generators, one steam turbine, one steam turbine generator and one or more heat recovery generators.

Summit won the Bibiyana power plant during the second bidding for setting up the plant as independent power producer (IPP).

The government initiated to build the Bibiyana power plant in 2006 but failed to select any bidder.

Summit Power chairman said his company is well positioned for being awarded a substantial number of electricity generation projects shortly.

The company has been already short-listed by the power ministry for setting up three more big power plants-Meghnaghhat dual-fuel 300mw-450mw combined cycle power plant, Bibiyana-2 300mw-450mw combined cycle power plant (unit 2) and Bhola 150mw-225mw combined cycle power plant.

"We look forward to winning all the three big power plant projects," said the Summit chairman.

Dhaka stocks recover from Sunday's plunge

News Source: http://bit.ly/bVd4JB

Dhaka stocks after suffering the second biggest single-day decline in the previous session returned Monday to their gaining streak. 

The market opened positively with initial bumps and the momentum continued until the end. Panic among investors that prevailed in the previous day eased, with funds flowing like before, said dealers. 

The benchmark DSE General Index (DGEN) surged by 1.42 per cent or 103.89 points to close at 7396.43, lifted by heavyweight Grameenphone (GP) that rose more than four per cent. 

The broader All Shares Price Index (DSI) shot up by 1.37 per cent or 83.34 points to 6150.83. The DSE-20 Index, comprising blue chips, was up by 1.39 per cent or 60.08 points to 4374.42.

Institutional investors were more active than the retailers in buying stocks, sources in the bourse said.

Prices of around 80 per cent issues closed positive, as out of the 245 securities traded, 189 gained, 49 advanced, and seven remained unchanged. Turnover in terms of value fell by 18 per cent to Tk 15.64 billion.

Suspension of netting facilities has come into effect from Sunday after the Supreme Court (SC) vacated the High Court's stay order on the Securities and Exchange Commission's (SEC) directive, causing lower volume of trade. 

"Fund poured in like previous three weeks, helping the market to bounce back," said Ahmad Rashid, managing director of Rashid Investment Services Ltd. 

He said trigger sale in line with the SEC's directive was yet to take place, as the directive has come into effect after expiry of the loan adjustment period (September 30) due to the SC's vacation of the stay-order of the High Court Sunday (October 10). 

A merchant banker said, "Some of us have already cut down credit lower than the regulator's order." 

All the sectors advanced, except bank, which was marginally down by 0.13 per cent.

Telecommunications emerged as the top gaining sector, as GP, the lone listed company of the sector, soared 4.09 per cent. 

Insurance sector was up by 3.30 per cent, followed by NBFIs 2.95 per cent, and fuel and power 2.0 per cent.

Premier Bank continued as the top turnover leader with shares worth Tk 668.04 million changing hands. Other turnover leaders were Peoples Leasing, Uttara Bank, Summit Power, Standard Bank, Shahjalal Bank, Lanka Bangla Finance, Social Investment Bank, Beximco Ltd and Exim Bank.

Uttara Finance gained the highest 9.02 per cent, followed by BGIC, BD Finance, Sonargaon Textile, Peoples Leasing, Continental Insurance, Agrani Insurance, Meghna Life Insurance, First BSRS Mutual Fund and Central Insurance.

On the other hand, DBH First Mutual Fund, Kohinoor Chemicals, Libra Infusion, BSC, Style Craft, Monno Fabrics, Pharma Aids, Fu-Wang Ceramics, Ambee Pharma and First Security Bank were the leading losers.

Dishonest traders manipulate prices

News Source: http://bit.ly/dtWmLY


The image of the government will be tarnished badly if the current rising trend in prices of essential commodities including rice, flour and edible oil continues unabated, warned an intelligence report of the government.

The malpractice of a group of unscrupulous businessmen is mainly responsible for the abnormal price hike of essentials in the local market, the report added.

However, leading businessmen brushed aside the allegation and pointed to international markets for the worsening market situation.

'The prices of rice, wheat, garlic, pepper and edible oil have increased in recent times. The livelihood of lower income people is being affected following the price hike of essential commodities. The image of the government will be tarnished if the current price hike continues in future,' the intelligence report said.

The report sent to the Prime Minister's Office (PMO), has blamed the businessmen for price manipulation. It said a group of dishonest traders and importers raised the prices of essentials citing the price hike in international markets.

'The importing formalities of essential goods take at least three to four months. The foreign essential goods now being traded in the local markets were imported into the country about four to five months back. So, the prices of those goods have no reason to go up in local markets at current international rates,' elaborated the intelligence report.

The report said the market monitoring activities of Ministry of Commerce (MoC), which have been visible and active during the month of last Ramadan, is not active now. Three monitoring teams of the ministry to oversee the prices of essentials have been abolished in recently leading to price manipulation in the market, the report added.

However, the officials in the MoC said the monitoring teams have been increased to five from three rather than their abolition. The monitoring activities will be strengthened further with empowering state trading agency-Trading Corporation of Bangladesh (TCB)- for market intervention.

The intelligence report said the prices of coarse rice, flour (atta), Soybean oil, onion and garlic have increased by 25 to 30 per cent compared to the prices of the food commodities during the month of last Ramadan.

According to the price information of TCB on October 11, the price of coarse rice has risen by 38 per cent, atta 50 per cent, Soybean 21.09 per cent, Palm oil 38.02 per cent and the price of garlic in retail markets has risen by 85 per cent compared to the price levels a year ago.

Importers and local big traders said the government is largely responsible for the situation as it refrained from taking any measure to import food items through TCB after Russia and Ukraine had banned export of wheat about four to five months back.

Mostafa Kamal, Chairman, Meghna Group of Industries, said the prices of Palm oil and Soybean have increased at least by $70 to $80 per tonne in international markets last week following a report of the US Department of Agriculture was released . The US report forecast price hike of food items further following lower production in global food exporting countries.

He advised the government, particularly MoC and TCB to subscribe Reuters and Bloomberg to remain updated on latest prices of essentials in international markets.

Another importer said the importers generally fix rates averaging the prices of imported food items brought earlier and the current value as a business strategy.