The New Nation - Internet Edition

Rupee hits all-time low on global crisis

Reuters, Mumbai

The rupee fell to a record low past 49.07 per dollar on Friday as the spreading global financial crisis hurt sentiment in Asian stock markets, leading to concerns of a large outflow of foreign funds from India. At 9:08 a.m., the partially convertible rupee was at 49.10 per dollar according to Reuters data, compared with Wednesday's close of 47.99/48.01 per dollar. The currency market was shut on Thursday due to a local holiday. The previous all-time low was 49.07 hit in May 2002.

Tougher times for developing countries ahead: WB president

Reuters, Washington

With world attention trained on resolving a financial crisis in Western economies, World Bank President Robert Zoellick said the poverty-fighting institution is warning developing countries to prepare for tougher times.

In an interview with Reuters ahead of weekend meetings of world finance ministers, Zoellick said business failures, bank emergencies and balance of payments crises are all possible in developing countries as the crisis spreads.

He said a growing financial squeeze, together with higher food and fuel prices, will only make it more difficult for governments in developing countries to protect the poor.

A new World Bank report prepared for the meetings warns that high food and fuel prices will increase the number of malnourished people around the world in 2008 by 44 million to over 960 million.

The World Bank chief said the bank had identified around 28 countries that could face fiscal difficulties. He said he would release the details later on Thursday ahead of weekend meetings of finance leaders in Washington.

"What we're now moving into is the phase where one has to look more broadly at the danger of developing country growth and there it depends on policies they take and the support we and others can give them," Zoellick told Reuters.

"Over the medium and long term, I remain optimistic about the possibilities of sub-Saharan Africa being a pole of growth, but it won't happen automatically, it will require their actions and the right investments," he added.

Zoellick said the World Bank was working with developing countries to make them aware of the services the bank could provide to help prepare contingency plans and support countries whose banking systems may come under strain.

STAKES ARE HIGH

The financial crisis threatens to undo much, or in some cases all, of the progress made in many developing countries over the past several years to lift growth and reduce poverty and disease.

Between 1997 and 2007, 17 countries in Sub-Saharan Africa grew on average 6 percent, most of them non-oil producers. Another 8 countries, all oil producers, grew on average 8 percent over the same 10 years.

Zoellick told a news conference earlier there was frustration, fear and anxiety at the difficulties economies may now encounter from a crisis that began in the United States.

Better economic management, fewer conflicts, and prospects of high returns on investments have attracted more private sector interest into developing countries.

Among those investors has been China, Brazil, India and Gulf countries, spurring so-called south-south investment where one emerging economy invests in another.

Zoellick said that despite ripple effects from the financial crisis into emerging economies, he was confident China would continue to invest in natural resources in Africa, while Gulf states look to investments in agriculture.

"While we're dealing with today's problems, you have to keep your eye on tomorrow (and) take the problem and turn it into an opportunity," he said.

Just as Western central banks and China took unprecedented coordinated action to cut interest rates on Wednesday to restore calm to markets, he hoped they would do the same when it comes to helping the developing world deal with effects from the financial crisis, but also the "human crisis" of increasing malnourishment.

The same countries could help by contributing to a World Bank fund to assist developing countries struggling with higher food and fuel prices and that would provide fertilizer to small farmers and energy to the poor.

There would also be a need for developed countries to help the World Bank and International Monetary Fund support governments facing balance of payments needs and challenges to do with climate change and trade, he said.

"We can play a role but we need the developed countries to also act in coordinated action to support that."

Gas supply gets a boost

bdnews24.com, Dhaka

Fifteen million cubit feet of gas is set to be added to the transmission line Friday, a senior government official said.

Jalal Ahmed, chairman of Bangladesh oil, gas and mineral corporation Petrobangla, said Thursday that the gas will be produced at Fenchuganj gas field.

In a span of one week, 45 million cubit feet gas will have been added to the national transmission line, with 30 million cubic feet already having been supplied from Bangura gas field in Comilla.

Jalal Ahmed said the rig now being used at Fenchuganj would be utilised for gas extraction from two more wells in Bakhrabad. Twenty million cubic feet gas will be extracted from the wells.

He said a new well would be dug in Titas gas field by December for another 25 million cubic feet of gas. The well at the Titas gas field was earlier capped as gas was leaking at different places.

The Petrobangla chief said over 300 million cubic feet of gas would be added to the national supply over the next three years.

The news comes at a time when the government temporarily barred new gas connections to new industrial factories in Chittagong due to a gas crisis. Jalal Ahmed said 10 million out of 30 million from Bangura was to be supplied to for Chittagong industry.

And the 15 million cubic feet from Fenchuganj will be routed to Dhaka.

According to Petrobangla, the country has reserves of 7.5 trillion cubic feet gas. Another, five trillion cubic feet is potentially available in various fields of the country. Probable unexploited gas reserves total 8 trillion cubic feet.

The country's 79 wells in 18 gas fields can produce 1,834 million cubic feet gas a day. On Thursday, gas production stood at 1,684 million cubic feet.

Of them, 240 million cubic feet is supplied to fertiliser factories against a demand of 289 million cubic feet, and 613 to power plants against a demand of 861 million cubic feet.

Euro rises against dollar

AFP, London

The European single currency climbed against the dollar Thursday amid hopes that heavy interest rates cuts around the world would help stem a global financial crisis, dealers said.

In late morning London trading, the euro climbed to 1.3758 dollars from 1.3663 dollars in New York late yesterday.

The dollar rose to 101.34 yen from 99.42 yen on Wednesday, when it sank under the 100-yen barrier for the first time in seven months.

Hong Kong, South Korea and Taiwan all reduced borrowing costs Thursday, a day after central banks in the United States, Canada, Europe and China slashed their key interest rates in a bid to tackle an escalating economic crisis.

"The unprecedented coordination of rate cuts by the major central banks yesterday is likely to provide at least a short-term alleviation of the extremely negative sentiment towards financial markets," said Barclays Capital analyst David Woo.

"Even though markets had been increasingly expecting such a move and equity prices ended lower yesterday, things would have probably been a lot worse in the absence of the co-ordinated easing

Woo added: "The fact that interest rate cuts do not directly address the underlying problems in financial markets means that further measures are required to achieve even a semblance of stability."

The yen meanwhile fell back from recent highs against the dollar and euro Thursday as ailing stock markets showed signs of stabilising, dealers said.

"People have apparently taken (the coordinated monetary easing) positively, and the sense of risk aversion eased," Satoshi Okagawa, head of the forex spot trading group at Sumitomo Mitsui Banking Corp, told Dow Jones Newswires.

The Japanese currency has been the main winner amid the recent financial turmoil as speculators sell off investments in other currencies in favour of yen.

Traders said it was unclear whether the yen would extend its retreat because no one knows whether stock markets can avoid further heavy losses.

"It's too early to say whether the unprecedented and bold policy response to the financial crisis will unfreeze credit markets," NAB Capital analyst John Kyriakopoulos wrote in a note to clients.

Traders were looking ahead to Friday's meeting of finance ministers and central bankers from the Group of Seven (G7) major economies -- Britain, Canada, France, Germany, Italy, Japan and the United States.

Elsewhere on Thursday, the British pound tumbled to 1.7171 dollars -- the lowest point since December 2005 -- after more bad news on the housing front.

House prices in Britain plunged 12.4 percent in September compared with the same month in 2007, the biggest drop on record, home loans provider Halifax said in a monthly survey.

In late morning trading in London on Thursday, the euro changed hands at 1.3758 dollars against 1.3663 late Wednesday, at 139.47 yen (135.85), 0.7944 pounds (0.7897) and 1.5494 Swiss francs (1.5397).

The dollar stood at 101.34 yen (99.42) and 1.1259 Swiss francs (1.1265).

The pound was at 1.7326 dollars (1.7298).

On the London Bullion Market, the price of gold slid to 891.45 dollars an ounce from 903.50 dollars late Wednesday.

Shahjalal Islami Bank Limited opens 31st Branch at Jessore

Shahjalal Islami Bank Limited (SJIBL) opened its 3151 Branch at Jessore on 8 October. The Founding Chairman of the Bank Alhaj Sajjatuz Jumma formally inaugurated the Branch as Chief Guest.

Alhaj Sajjatuz Jumma said Shahjalal Islami Bank is being operated by an expert team of professionals with the international standard. He said the Bank staffs remains vigilant to reach the quality service of the bank to the clients.

Chairman of the Board Alhaj Akkas Uddin Mollah said the demand and popularity of Islamic Banking has marked a rise globally due to transparency, Justice, financing on the basis of profit-sharing, philanthropic activities and major contribution in socio-economic development.

Managing Director Mr. Mohammad Ali said the Bank has become one of the best banks within a short period due to proper guidelines set by the Board of Directors and also because of dedication and sincerity of the Bank staffs. He also gave a short brief of the bank's deposit and investment schemes.

Among others, Vice Chairman Alhaj Mohammad Farooq, Directors Engr. Md. Towhidur Rahman, Alhaj Md. Solaiman, Alhaj Abdul Halim, Alhaj Abdul Barek, Alhaj Rukunuddin Khan, Alhaj Khondker Sakib Ahmed, Sponsor Shareholders Alhaj Anwer Hossain Khan, Alhaj Tofazzal Hossain, Alhaj Abdul Mannan, Alhaj Sanaullah Shahid, Alhaj Mohiuddin Ahmed, Deputy Managing Directors Md. Jillur Rahman and Mr. Md. Mukhter Hossain and former eminent banker AKM Nazmul Huq were present in the opening ceremony.

The opening ceremony included reciting from the Holy Quran, Milad mahfil and Dua was held at the branch premises.

Dhaka-Singapore-Dhaka route soon

UNB, Dhaka

Best Air, the country's third private airliner, is likely to start operating its Dhaka-Singapore and Dhaka-Kuala Lumpur flights from this month, spreading its wings on international route.

"Initially, we'll operate flights on Friday and Monday each week on Dhaka-Singapore route," Best Air chairman Haider Uzzaman told UNB.

He said that a newly procured 162-seater MD-83 aircraft would be used for the route.

Replying to a question, Haider said the initial date for inaugural Dhaka-Singapore flight was October 13. "But we have to change the date as vacation is going on in Bangladesh and Singapore also. We will fix the new date within a short time."

About the Dhaka-Kuala Lumpur route, the Best Air chairman said that they did not fix the date yet, but "we will start operation on the route by this month."

Best Air is also operating flights on Dhaka-Bangkok and Dhaka-Colombo-Male routes.

Best Aviation started its journey in 1999 as helicopter operator and then began its operation as a Freighter Airline in 2000. It obtained license in 2006 from the Civil Aviation Authority of Bangladesh to operate Passenger Service in the international and domestic sectors.

The company launched its passenger fleet with Boeing 737-200, which was the first in Bangladesh.

The airliner started its operation on the country's busiest Dhaka-Chittagong route on January 14 this year with Boeing

737-200.

USAID project supports PFPFA for increased fish production

BUSINESS REPORT

The USAID-funded PRICE (Poverty Reduction by Increasing the Competitiveness of Enterprises) project and the Phulpur Fish and Prawn Farmers' Association (PFPFA) announced their agreement for increasing quality aquaculture production for the domestic and export markets.

Under this initiative, PRICE will provide technical support to PFPFA farmers on a cost-sharing basis in Phulpur in Mymensingh to increase the yields and conduct group input in purchasing and marketing.

The training of roughly 200 farmers will begin this October taking place over the next 12 months and follow PFPFA's production cycle.

The result is expected to be a significant increase in yield and income of the participating farmers. PRICE and PFPFA will particularly encourage the participation by women in aquaculture in their household ponds as a positive example for rural Bangladesh.

"PFPFA is extremely pleased to have the support of PRICE to strengthen their organisation and increase member services in group procurement of inputs and marketing together with improved farming methodologies," remarked Ayesha Akther and Md Israfil of PFPFA.

"We are looking forward to working with PRICE to increase yields in our farms and associating local young male and females in aquaculture so that all derelict and under-producing ponds in the area can be turned into high yielding ponds".

PFPFA is an organisation of mostly fish farmers (some also prawn) engaged in the production and marketing of aquaculture products. Farming integration among its members with probable embankment crops will increase more revenue earnings and job creation. PFPFA has an active female membership, which it is looking to increase.

"Our partnership with PFPFA presents an excellent opportunity to fulfill the PRICE mission of increasing sales, jobs and young adults and women participation and therefore reduce poverty in Bangladesh," said Bob Webster, PRICE Chief of Party. "This work will benefit fish farmers of different categories and empower rural women in this region of Bangladesh."

PRICE is a USAID-funded project whose objective is to reduce poverty by facilitating the increase of sales, jobs and investment in aquaculture, horticulture and leather products. PRICE's activities will be driven by the demand of the market and will seek for the benefits of growth to be shared with women, young adults, SMEs and farmers as much as possible.

Telecoms World summit held in city

October 8 & 9, 2008 saw the biggest names of the telecom industry of the South Asian region join the two day long summit organized by TERRAPINN, named "Telecoms World, South Asia 2008".

The summit took place in Radisson Water Garden Hotel in Dhaka. Mehboob Chowdhury, Chairman of GSM Forum, Suuth Asia, presided over the event while Iqbal Mahmood, Secretary In-charge of Telecommunication Ministry, Government of Bangladesh, was the chief guest.

Different issues like the effect of the current economical disaster on the telecom business, JCT sector, job opportunities, new business opportunities were some of many discussed in the summit. Delegates outside of the South Asia also joined the conference.

DSE witness fall amid profit taking after hitting 3,000 mark

UNB, Dhaka

The Dhaka Stock Exchange (DSE) registered fall in the week that ended Wednesday amid market correction, as investors

had opted for profit taking from an upward trend from weeks before the nine-day eid vacation.

The post-eid trading resumed on Sunday with the market witnessing an upbeat mood and the benchmark index crossed 3,000-mark in last three months.

But, on the following day (Monday), the DSE General Index suffered a sharp fall that also continued on Tuesday, before bouncing back again on Wednesday to close the week's trading.

Brokers said the 3,000-mark emerged as a psychological barrier when investors hastened to take profit on perception that the prices of shares would start falling from the point.

The DSE General Index (DGEN), the benchmark index, dropped 30 points or one percent to close at 2,937 at the closing of the 4-day week on Wednesday. The All Share Price Index (DSI) fell 63 points or 2.52 percent to close at 2,435 while the DSE-20 index of selective shares declined 24 points or about one percent to close at 2,442.During the week, the total turnover dropped 6 percent to Tk 19.64 billion from Tk 20.99 billion in the previous trading week. However, the daily average turnover rose 17 percent to Tk 4.91 billion from Tk 4.19 billion.

The price earning of the stocks declined by over 2 percent in the

week to 20.83 compared to 21.33 of the previous week. Market

capitalisation decreased by about 2 percent to Tk 1.021 billion last week from Tk 1.039 billion in the previous week.

Beximco Pharma, Beximco, Lankabangla Finance, Titas Gas, ACI Limited, Summit Power, GrameenS2, S Alam Colled Rolled Steel Limited, Keya Cosmetics and Union Capital were the turnover leaders of the week.

Top gainers of the week were Modern Cement, Daffodil Computers, Keya Detergent, Padma Cement, Golden Son, Bionic Sea Food, Alltex Industries Ltd., BDCom Online Limited, Miracle Industries and City General Insurance.

Top Losers were Rupali Bank, Pragati Life Insurance, BLTC, ICB, BSC, BD Luggage, Prime Islami Life, Metales Corporation, 1st BSRS and Aramit.