The New Nation - Internet Edition

Oil hits three-month low on strengthening dollar

Xinhua, New York

Crude oil dropped to the 111 U.S. dollars level for the first time since early May on Friday as the dollar gained strongly against the euro and other major currencies. Light, sweet crude for September delivery fell 1.24 dollars to settle at 113.77 dollars a barrel on the New York Mercantile Exchange. In the morning session, price slumped to as low as 111.34 dollars a barrel, trading down 3.67 dollars. The dollar rose to the strongest level in almost six months against the euro and a seven-month high against the yen. Meanwhile, the sterling pound fell versus the dollar on speculation that the Bank of England will have to cut interest rates because of the slowing economy. A strengthening dollar usually reduces the appeal of crude and other commodities as hedges against inflation, and makes the dollar-denominated commodities more expensive to overseas buyers. OPEC predicted in its monthly report Friday that the global demand for oil this year will fall by 30,000 barrels a day and the world demand growth next year will be "the lowest since 2002."

The crude futures have lost more than 24 percent since the

all- time peak of 147.27 dollars a barrel reached on July 11.

In London, Brent crude for October delivery fell 1.13

dollars to settle at 112.55 dollars a barrel on the ICE Futures

Exchange.

Six cos coming to capital market with Tk 56cr IPOs

BUSINESS REPORT

Many companies have gradually been coming to the capital markets.

First Security Bank Ltd, one of the biggest private commercial banks, joined the capital market last month through floating initial public offering (IPO).

Titas Gas, one of the biggest companies in the public sector also joined the capital market through direct listing last month. However, ordinary investors at the share markets are now facing a very bad time as downward trend in stock prices have been continuing over the last couple of months. They are now in great risks buying shares at higher prices. In such a situation, six companies of different sectors are coming to the markets with the IPOs worth Tk 56 crore. These conpamies are going to enter the capital markets within the next two months. These companies have already finalized the dates for mobilizing funds. The companies which will collect funds from people through IPOs are Summit Alliance Port Ltd (Tk 10 crore), Takaful Islami Insurance Company Ltd (Tk 9 crore), Standard Insurance Ltd (Tk 9 crore), Northern General Insurance Company Ltd (Tk 9 crore), Republic Insutrance Company Ltd (Tk 9 crore) and Max Spinning Mills Ltd (Tk 8 crore).

Summit Alliance Port Ltd started mobilizing funds from August 10 last. The last date of application for IPOs was August 14. However, the time-limit for the non-resident Bangladeshis (NBRs) has been extended to August 23. Each of the 50 shares in a single lot has been fixed at Tk 100. The paid-up capital of the company is Tk 40 crore. It will stand at Tk 50 crore after mobilizing funds through the IPOs. Anjuman Aziz Khan, who is the director of Summit Power, another listed company, is the chairperson of the Summit Alliance Port.

Takaful Islami Insurance Ltd will mobilize funds through IPOs from August 25 to August 31. The last date of application for IPOs for the NRBs is September 9. The company has offered 50 shares in each lot and the price of each share has been fixed at Tk 100. Its paid-up capital is Tk 6 crore, which will stand at Tk 15 crore after mobilizing funds from the capital markets. The income per share (IPS) till December 2007 was Tk 25.09, while the net asset value of each share is Tk 140.34. Fazle Azim, chairman of the Capital Credit Cooperative Society Ltd is the chairman of this company.

Standard Insuance Company Ltd will collect funds through IPOs from September 7 to 11 locally, while funds from the NRBs will be mobilized from September 7 to 20.

The company's paid up capital will stand at Tk 15 crore after mobilizing funds through the IPOs. The company offers 9 lakh ordinary shares of Tk 100 each and plans to mobilize Tk 9 crore through the IPOs. HTM Quader Newaz is the chairman of this company.

Northern General Insuranec Company Ltd offers 9 lakh ordinary shares of Tk 100 each (at par) totaling Tk 9 crore. The opening date of the subscription for general public is September 14 and the closing date is September 18, while subscription for NRB applicants will remain open till September 27. The company has 22 branches across the country. Alhaj Nasir Uddin, vice-chairman of Social Investment Bank Ltd is the chairman of this company.

Max Spinning Mills Ltd, a company of the textile sector, will mobilize funds from general public through IPOs from October 12 to 16, while from the NRBs from October 12 to 25. Price of each of the shares has been fixed at Tk 10, while there will be 50 shares in each lot. The paid up capital of this company is Tk 30 crore, which will stand at Tk 38 crore after the IPOs. The company is mobilizing Tk 8 crore from the capital market to repay the bank loans.

Republic Insurance Company Ltd will mobilize funds through offering 9 lakh ordinary shares of Tk 100 each. Subscription for general public will remain open from October 26 to 30, while the subscription for NRB applicants will remain open up to November 8. There will be 50 shares in each lot and the price of each ordinary share has been fixed at Tk 100.

Hedayet Hossain Chowdhury, founder chairman of Karnaphuli Group of Companies, is the chairman of this company. The paid up capital of the company will stand at Tk 15 crore.

Experts said companies have to pay dividends to the shareholders if they can make profit in the share markets although they don't have to pay anything else to the shareholders if they incur losses. But, the companies have to pay interest if they take loans from banks. In spite of it, the entrepreneurs are not coming to the capital markets which is really unfortunate, they said.

Pubali Bank takes part in 'Bank, Non Bank Financial Institutions Fair’

A fair titled 'Bank and Non Bank Financial Institutions Fair- 2008' was held at Winter Garden, Dhaka Sheraton Hotel recently. Pubali Bank Ltd participated in the fair with a view to expanding and promoting client services to the customers.

Commerce Adviser Dr Hossain Zillur Rahman inaugurated the fair as the chief guest while Dr Salehuddin Ahmed, Governor, Bangladesh Bank was present as special guest. After inaugurating the fair Dr Hossain Zillur Rahman with Dr Salehuddin Ahmed visited the Pubali Bank's stall. Chairman, Board of Directors of Pubali Bank Ltd Hafiz Ahmed Mazumder and Managing Director Helal Ahmed Chowdhury were present at that time.

Chairman, Board of Directors of Pubali Bank Ltd Hafiz Ahmed Mazumder said Bangladeshi expatriates can remit their money through Pubali Bank swiftly and safely.

He urged all customers to take this opportunity. He expressed his hope that the oldest bank, Pubali Bank would surely serve its customers with utmost satisfaction by applying modern information technology.

Referring to skilled management, deposit reserve and sufficient foreign exchange reserve, Managing Director of Pubali Bank Helal Ahmed Chowdhury reiterated that PBL can render business to its clients.

He urged all customers to extend business through the service of Pubali Bank.

The Managing Director said that the aim of Pubali Bank is to provide best and innovative banking services and PBL gives priority to provide opportunity and advantage to the customers through application of modern technologies.

He also said 361 branches are computerised and SWIFT banking system is in force in all important branches.

Helal Ahmed Chowdhury informed that Pubali Bank would open 10 new beanches this year and permission has already been accorded to Pubali Bank by Bangladesh Bank in this reagrd. Seven branches will be opened in rural areas and three branches in urban areas.

He also urged all to expand their business through Pubali Bank.

Fixing selling price at Tk 13 a kg in local markets: Govt decision to destroy maize sector: MAB

BUSINESS REPORT

Maize Association of Bangladesh (MAB) has said that the government has fixed the minimum export price of maize at US$600 per metric tonne without consulting with them.

"Without consulting with us, the government fixed the minimum export price of maize at Tk 42 per kg and domestic selling price at Tk 13 on August 6 last though a farmers has to spend Tk 15-16 for producing one kilogram of maize. This sub-sector of agriculture is going to face a disaster due to the decision of the government and the country will have to meet the requirements by importing maize in future," said Md Mizanul Huq, secretary general of Maize Association of Bangladesh. He said the livelihoods of some five lakh maize farmers are now at stake due to the government's decision.

Mizanul Huq said maize is an important crop in Bangladesh. Bangladesh used to spend Tk 2,000 crore annually for importing maize only five years ago. Owing to the far-reaching plan of Maize Association of Bangladesh and untiring efforts of farmers, some five lakh farmers of the country now cultivate maize on 2.50 hectares of non-arable land. As a result, country is now saving foreign currency worth Tk 3000 crore a year. In such a situation the government has fixed the minimum export price at Tk 42 and selling price at Tk 13 in domestic market though the farmers have to spend Tk 15-16 for producing a kilogram of maize.

The government, in a rare move, on August 6 last fixed the minimum export price of maize at US$ 600 per metric tonne to maintain a stable price in the country.

The decision was taken at an inter-ministerial meeting held at the Ministry of Fisheries and Livestock conference room with Special Assistant to the Chief Adviser Manik Lal Samaddar in the chair.

Agriculture Adviser Dr CS Karim and secretaries of the ministries of commerce, agriculture and fisheries and livestock and other officials concerned were present at the meeting.

"We have fixed the export price at US$ 600 after reviewing the local requirements and demands," Manik Lal Samaddar said after the meeting.

He said maize is an important raw material for the domestic poultry industry and the decision has been taken to maintain the prices of eggs and chickens at a tolerable level.

"But we have also decided to have a close look at the price of maize in the local market and the concerned businessmen assured us that the maize price will not be below Tk 13 (US$0.19) per kilogram," Samaddar said.

He, however, assured that the government will closely monitor the local market and the minimum price restriction will be withdrawn if maize price at local market falls below Tk 13.

According to available official data, the country now produces 21.67 lakh metric tons of maize annually against estimated demand of 30 lakh tons.

The price of maize suddenly went up a couple of months back as some organizations and individuals resorted to export maize.

Maize currently is sold at Tk 12/13 per kg compared to Tk 11 last year and Tk 9 in 2006, official sources said.

On May 12 this year, Fisheries and Livestock Ministry requested the Agriculture Ministry to impose ban on export of maize as the price of this important component for poultry industry was shooting up.

Bangladesh Poultry Industries Association and Bangladesh Feed Industries Association in two separate letters also urged the ministries concerned to impose ban on export of maize.

They said maize prices began to rise at the start of current fiscal year after two companies Abdul Gafur and Fair Trade exported 230 and 200 metric tons respectively to Malaysia and Indonesia. The export price varied from Tk 18,360 to 19,040 per ton.

Besides, several others were also trying to export maize to take advantage of higher prices in the international market.

The Bangladesh Poultry Industries Association and Bangladesh Feed Industries Association in their letters pointed out that earlier local market price of maize was Tk 12,800 per tons. But it went up to Tk 14,000 after exports started.

Prices of onion, ginger, chicken, egg suddenly up in city market

BUSINESS REPORT

Prices of most of the essential commodities, including onion, egg, chicken and beef have gone up ahead of the holy month of Ramadan, that begins only after two weeks.

During the last one week, prices of onion, red lentil and egg increased significantly while prices of rice, potato and non-brand edible oil declined from their previous level in the local market, traders said yesterday.

Prices of onion, both local and imported, showed an upward trend in the city's retail markets during the past one week due to shortage in supply, traders of the city's different retail markets said.

During the same period, they said local onion was selling at Tk 32-Tk 34 per kg against Tk 28-Tk 30 per kg one week back while the prices of imported Indian onion was Tk 26 per kg at the city's retail markets as in the previous week.

Prices of potato have also gone up as it was selling at Tk 18-20 per kg in kitchen markets of the city yesterday.

Besides, prices of ginger has gone up in the wake of sudden rise in buying of it for cooking meat on the occasion of Shab-e-Barat. However, there was no sign of going down the prices of ginger, both local and imported varieties, in the markets yesterday.

Prices of Kheshari, a local variety of lentil, increased by Tk 6 per kg ahead of Ramadan because it is mostly used for making Iftari items, according to the traders.

Kheshari was selling at Tk 66 per kg, which was Tk 60 per kg one week ago.

On the other hand, prices of the finer variety of red lentil and imported Nepalese and Turkish varieties remained unchanged at their previous rates in the local markets. But traders of different retail markets informed that prices of lentil would be higher during the Ramadan.

Each kilogram of local variety (according to the claims of traders although some say it is also an imported one) is now selling at Tk 108-110, while the Indian and Turkish varoiesties of red lentils is selling at Tk 98 and Tk 90 respectively.

Prices of eggs have also increased by Tk 4 to Tk 5 per dozen and at the retail level, a dozen of eggs were selling at Tk 75-Tk 78, which were Tk 68-Tk 70 a week before.

Prices of fine and coarse varieties of rice declined by Tk 1.0 to Tk 2 per kg as the government has planned to launch open-market sale (OMS) of rice from August 20 at Tk 28 per kg.

The Minicate variety of rice was selling at Tk 42-Tk 44 and Nazirshail at Tk 38-Tk 42 per kg against 44-Tk 45 per kg and Tk 42 -Tk 48 per kg respectively a week ago.

Coarse varieties of rice, especially BR-28, were selling at Tk 37-Tk 39 per kg against Tk 39-Tk 41 per kg in the previous week.

At wholesale level, the Minicate variety of rice was selling at Tk 1490-Tk 1495 per maund (37.300 kg) which was Tk 1550- Tk 1560 per maund and the Nazirshail variety of rice was selling at Tk 1550-Tk 1565 which was Tk 1580-Tk 1590 per maund during the last week.

Besides, BR-28 was selling at Tk 1260-Tk 1270 per maund against Tk 1350-Tk 1400 per maund at the wholesale level in the preceding week.

Price of Potato declined by Tk 2 per kg at the city's retail level and was selling at Tk 16 per kg, which was Tk 18 -Tk 20 per kg a week ago.

According to traders, prices of non-brand edible oil declined by Tk 2.0 -Tk 4.0 per kg at the wholesale level but there was no impact in the retail markets.

Traders at the wholesale markets of Karwan Bazar and Naya Bazar said soyabean oil and super palm oil were selling at Tk 107 -Tk 108 per kg and Tk 87-Tk 88 per kg respectively which was Tk 115 -Tk 118 per kg and Tk 92-Tk 96 per kg respectively one week before.

But at the retail level prices of non-brand edible oil including soyabean oil and super palm oil were selling at Tk 116 per kg and Tk 96 per kg respectively, which was Tk 118 -Tk 120 per kg and Tk 98 per kg respectively during the last week.

Prices of flour and sugar remained unchanged at their previous rates of Tk 39-40 per kg and Tk 36 per kg in the local markets.

According to the traders of city's retail markets, prices of a number of vegetables including ladies' finger, brinjal and cowpea were Tk 28 per kg, Tk 30 per kg and Tk 28 per kg respectively.

Cucumber, tomato, green chili and green banana were selling at Tk 28 per kg, Tk 60 per kg, Tk 60 per kg and Tk 20 (four pieces) respectively.

In the city's retail markets, beef and mutton were selling at Tk180-Tk 190 per kg and Tk280-Tk 340 per kg respectively while prices of poultry birds remained unchanged from their previous rate of Tk 125-130 per kg during the last week.

Pakistan to pip India in list of world's top rice exporters

PTI, New Delhi

For the first time in several years Pakistan is expected to pip India in the list of rice exporting countries because of export curb imposed here.

According to the latest report of the US Agriculture Department (U.S.D.A.), India will lose two ranks in the list to become the fourth largest rice exporter in calendar year 2008 while Pakistan would improve its position to third.

In the U.S.D.A. list of world's top 15 rice exporting countries, Thailand will remain at the top with an estimated 10 million export followed by Vietnam at 4.7 million tons.

The report said Pakistan may export 3 million tons while India 2.8 million tons in 2008. India's rice exports may further take a dip to two million tons in 2009 while Pakistan will raise its overseas supply to 3.15 million tons, it said.

Incidentally, this development has come in the 61st year of independence as both countries were liberated from the British rule in 1947.

Commenting on the development, All India Rice Exporters Association President Vijay Sethia said, "India lost the opportunity which Pakistan and Vietnam took."

"What is required is better management so that farmers get good price as well as consumers do not suffer," he added.

Last year, India had exported 6.3 million tons of rice, USDA said in the monthly grain report for August.

Exporters attribute the fall in India's rice export to the Centre's decision to ban the overseas sale.

The government banned export of non-basmati rice in April after it found that the system of minimum export price (M.E.P.) was not effective in restricting the shipments.

The Centre in October last year imposed a ban on export of rice, which was later eased with introduction of M.E.P. In December it had hiked the M.E.P. to 1,000 dollars a tonne from 650 dollars level.

Dubai's rough diamond trade volume up 36pc

Xinhua, Abu Dhabi

The total volume of rough diamond trade in Dubai, the commercial hub of the United Arab Emirates (UAE), reached 3.03 billion U.S. dollars in the first half of 2008, up 36 percent over the same period last year, Dubai Diamond Exchange (DDE) announced yesterday.

During the first half of 2008, rough diamond imports into Dubai stood at 1.15 billion dollars, representing a growth of 23 percent over the same period in 2007, according to a statement by the exchange.

Exports of rough diamond from Dubai hit 1.88 billion dollars in the first six months of 2008, increasing by 44 percent on a year- on-year basis.

Angola, India, countries of the European Union (EU) and

China were the top diamond trade partners for Dubai, which jointly accounted for around 85 percent of Dubai's rough diamond trade volume.

"While exports in terms of carats grew marginally in the first half of 2008, the price of diamond rose by 10 percent and helped push the overall trade to high levels," DDE's CEO Youri Steverlynck said.

Affiliated to the government-owned Dubai Multi Commodities Center (DMCC), the DDE is the only exchange in the region to service the diamond trade from mining to retail.

Best Air likely to start Dubai flight Aug 27

BUSINESS REPORT

Best Air, the country's third private airline, is likely to start its Dhaka-Dubai-Dhaka route from August 27.

"Initially we will fly on Sunday, Monday, Wednesday and Thursday," Best Air Director (Marketing and Sales) Farhad Hossain said.

For the new Dhaka-Dubai-Dhaka route the aviation company would take lease 162- seat MD-83, and the aircraft will be available by next week.

Best Air has already got permission from the Civil Aviation Authority of Bangladesh (CAAB) to operate flights to Kuala Lumpur.

"After the inauguration of the Dhaka- Dubai route we will go for Dhaka-Kuala Lumpur route via Chittagong three days a week," Farhad said, adding that there is a possibility of starting Chittagong- Dubai route simultaneously at that time.

Best Air now operates on Dhaka-Bangkok and Dhaka-Colombo-Male routes with its lone Boeing 737-200.

It has suspended its Dhaka-Chittagong route on July 1 due to poor response from passengers.

Best Aviation started its journey in 1999 as a helicopter operator and then began its operation as a Freighter Airline in 2000.

It obtained licence in 2006 from the Civil Aviation Authority to operate Passenger Services on international and domestic sectors. The company launched its passenger fleet with Boeing 737-200, which was the first in Bangladesh.

The aviation industry in Bangladesh has marked a boom with the launching of three private airlines in last one year. A fourth company is set to start commercial flights next month.

The industry is growing 7.5 to 8 percent a year, while the sector's market size is around Tk 3,500 crore, according to the sector insiders.

Depositors victims of BB's spread reducing effort

BUSINESS REPORT

Commercial banks took around eight years to reduce the spread between lending and deposit rates of interest by about one percentage point, mainly depriving their depositors.

The interest rate spread (IRS) declined by 0.97 percentage points between June 2001 and March 2008, according to the Policy Analysis Unit (PAU) of Bangladesh Bank.

During the period, the deposit rate declined by 1.10 percentage points as against lending rate reduction of only 0.13 percentage points, said a Financial Sector Review (FSU) released by PAU on Wednesday.

The PAU is to assist the Bangladesh Bank in promoting and maintaining macroeconomic and price stability conducive to rapid growth and sustainable poverty reduction through research and policy analysis.

The central bank has long been asking commercial banks to reduce the IRS below 5 percent, not through cutting from the deposit rate but from their lending rates, to stimulate investment and economic growth.

Chief Adviser Dr Fakhruddin Ahmed had also instructed the central bank to take measures to reduce the spread.

Bangladesh Bank had talks with the commercial banks, particularly the private banks, repeatedly requesting them to comply with the economic requirement.

Meanwhile, the FSR cautioned that there exist credit as well as liquidity risks in the financial market of the country and suggested establishment of a competitive banking and non-bank sector as one of the priorities in the financial sector policies.

The competitiveness should be developed with the ability to overcome the maturity-mismatch and the default loan problems, it said.

The analysis acknowledged Bangladesh Bank's measures to develop the capacity of the financial sector to reach out to all sections of the community.

The measures included implementing financial sector reforms and adopting new policies like restructuring the government-owned commercial banks (GCBs), establishing secondary market for all types of bonds and securities, and opening up of the financial sector to global level by ensuring financial regulation and supervision.

"As such promoting healthy competition in the banking sector remains the corner stone of the country's financial policy stance," said the analysis by the PAU.

It added that efficiency, competition, cost effectiveness, good governance, and ensuring corporate social responsibility would be the basis of ensuring efficient financial inclusion of the poor and the unbanked, and minimizing risks in the financial sector.

"BB has taken initiatives so that the Basel II norms of capital adequacy are fulfilled in a time bound manner," it said.

The PAU emphasised on sound regulation and supervision for the success of the efforts to bolster the financial system through ensuring capital adequacy and fighting money laundering effective

NUB student to get results though SMS

From now the student of Northern University Bangladesh (NUB) will get their exam result and other necessary information through mobile SMS. By sending sms to # 2323 they will inform any type information of NUB. This service will be provided by Next Net Company Limited.

The Northern University Bangladesh has recently signed a MoU (Memorandum of Understanding) with Next Net Company Limited in this regard.

Md Lutfor Rahman Director, Human Resources Divisions (HRD) was present at the signing ceremony as the chief guest. Senior Assistant Registrar AHM Shamim Tuhin signed the MoU on behalf of Northern University Bangladesh. Habibul Haque and Maksudul Haque signed the MoU on behalf of Next Net Company Limited.