DSE STOCK ANALYSIS :Ncc Bank

Ncc Bank has been declared their half year report of 2009. And showed surprise earning. Double earning from last year .Full year EPS of Ncc was 37 taka so far. But the eps of till june 2009 is 34 taka which almost equal of last year .So i am too much hopefull with Ncc Bank it should touch 500 taka .Need Time For this. But Within short time it will touch 400+ Soon.

Technically look good. Very good volume. Good Movement. Everything is positve now for Ncc Bank

Don't take any decision depanding on me.

DSE STOCK ANALYSIS :MIRCLEIND

I am waiting for see a miracle with miracle industries.Some rumors are walking with this . Technically its not bad.But low volume.So it should fall more from here .But my collection is start from here. Fundamentally its not a good companies.So be careful.Its PE ration is too high.Eps is too much low.Last year dividend only 5% cash.Its the negative factor of Miracle Industries. In the chart more explanation i have given.

Be careful Don't make any decision depending on me.

DSE STOCK ANALYSIS :UCAP

Union Capital : Very strong stock in Bangladesh stock market.Because of only it is 10 taka stock.Funny.But i love its move.Today huge volume traded.Hope it will move forward. It should minimum 10% from here.

Don't take any decision depending on me.Its your own decision .

DSE STOCK ANALYSIS :IPDC

Chart looking very nice to me.I think it should go.And volume says it will touch 500 soon.

Don't take any decision depending on me.Its your own decision.

DSE STOCK ANALYSIS :NBL

All of good bank,only National Bank's stock price is too low.All good and big bank like Abbnk,Brack bank,Ific bank's Stock price are increasing day by day.

I think now the time is coming to Nbl.Fundamentally its very good bank.Good dividend yield.
From 6-7 day its volume increases a lot.So from any time its may jump.

This is my thought only.Please don't take any decision depending on my.Its your decision.

DSE-20 to include more issues

The New Age : DSE-20 to include more issues

The Dhaka Stock Exchange has initiated a move to review its blue chips index for the first time its inception on January 1, 2001. ‘We will soon review the index as the existing DSE-20 index does not represent a proper blue chips index,’ said DSE senior vice-president Saiful Islam. He said the DSE initiated the move to remove shortcomings in the index and to introduce a new set of criteria for the listed companies to have a berth in the index.
A DSE senior official, preferring anonymity, said, ‘The bourse is thinking positively to include more companies in the index as a number of strong-fundamentals issues have entered into the market in recent years.’ ‘The DSE is weighing an option of introducing a DSE-30 index, replacing the existing DSE-20 index,’ he said.
‘In the process, a number of companies currently included in the index may be shown door for making way for better ones,’ the official added.Currently, DSE-20 index comprises of ACI, AMCL(Pran), Apex Tannery, Bata Shoe, BATBC, BD Lamps, BOC, Beximco Pharmaceuticals, Dhaka Bank, GQ Ball Pen, Islami Bank, Meghna Cement, Monno Ceramics, NBL, Prime Bank, Singer BD, Southeast Bank, Square Textile, Squre Pharmaceuticals and Uttara Finance.
The DSE-20 index started its journey with 1000 base.The DSE has two other indices to reflect the market behaviour–DSE all share price index and DSE general index.The DSE introduced all share price index on March 28, 2005 and general index, which excludes ‘Z’ category companies, on November 27, 2001.

Shine off ceramics exports

The Daily Star

Local ceramic tableware makers feel the pinch of the global financial crisis, as exports have plummeted over the last few months.

Bangladesh exported ceramic tableware worth $23.66 million, 23 percent lower than the $30.68 million target for the July-February period of the current fiscal year, according to data from exporters and the Export Promotion Bureau. The export figure was $25.09 million for the same period in fiscal 2007-08.

The export target for the current fiscal year has been set close to $48 million.

“We are not getting new orders at the moment. Buyers seem reluctant to place orders," said Iftakher Uddin Farhad, chairman and managing director of FARR Ceramics Ltd, which exported products worth Tk 20 crore ($2.9 million) in 2008.

For Farhad, an Italian buyer was the latest to cancel his orders.

According to market players, about 60 ceramic factories have invested more than Tk 2,000 crore in the sector, which mainly produces tableware and tiles.

After meeting domestic demand, the industry exports to 50 countries, including the United States, Canada, Europe and Middle East.

Bangladesh Ceramic Ware Manufacturers' Association data shows domestic sales were around Tk 700 crore in 2008.

Despite all odds, the country's ceramic tableware market has a bright prospect because of an increasing demand from the developed countries in Europe and the US, where the production cost of the item has significantly increased due to high labour costs.

Bangladesh enjoys competitive labour costs and workers have been well trained, industry people said.

But exporters are worried about the slowing trend in exports because of the global recession.

The FARR Ceramics boss said his company's monthly export figure dropped to $2 lakh in the January-March period of 2009 from $3 lakh a year ago.

Shinepukur Ceramics Industries, the largest manufacturer in the country with a capacity to produce 2.4 crore pieces of tableware a year, is also facing a 30 percent reduction in export orders this year.

The company exported ceramic tableware worth Tk 150 crore in 2008, according to a senior official of the company.

Monno Ceramics Industries, which was set up in 1982 with a Tk 115 crore investment, also faces deteriorating export orders in the first quarter of 2009, said a top official of the company. Last year, Monno's export figures stood at Tk 80 crore.

Artisan Ceramics, which exported goods worth Tk 12 crore in 2008, is facing orders down by 40 percent so far this year, compared to last year.

According to the manufacturers' association, ceramic exports grew by 695 percent in the last decade.

IBBL net profit crosses Tk 2.0b-mark

The Financial Express

Islami Bank Bangladesh Ltd (IBBL) has crossed Tk 2.0 billion-mark to earn net profit in a single year among the 30 private commercial banks (PCBs) in the country.

According to the latest audited financial accounts of IBBL, the bank earned Tk 2.674 billion as net profit in the year ended December 31,2008 against Tk 1.427 billion in 2007.

AB Bank Ltd, National Bank Ltd, Pubali Bank Ltd and Prime Bank Ltd bagged the second, third, fourth and fifth positions in earning net profits in 2008 with Tk 2.30 billion, Tk 1.517 billion, Tk 1.515 billion and Tk 1.24 billion respectively.

Started on March 30, 1983, the IBBL is now the largest private commercial bank in Bangladesh.

The IBBL profit before provision in the year ended December 31,2008 was Tk 7.95 billion against Tk 5.16 billion in 2007.

The bank's paid-up capital rose to Tk 4.75 billion in 2008 from Tk 3.80 billion in 2007.

IBBL first crossed Tk 1.0 billion-mark in earning net profit in 2004.

The bank is going to inaugurate 15 new branches and 10 new SME service centers soon, according to IBBL sources.

As a result the number of IBBL branches will stand at 211 and SME Service Centers at 20.

The total deposit of the bank as on March 31,2009 stood at Tk 206.51 billion showing the growth rate of 19 per cent against the corresponding period of 2008.

The total investment reached at Tk 202.00 billion registering a 15 per cent growth against the corresponding period of 2008.

The bank handled foreign exchange business amounting to Tk.105.33 billion including import of Tk. 35.04 billion, export of Tk 25.71 billion and remittance of Tk.44.58 billion till March 31, 2009.

ACI eyes assembling Panasonic products

The Daily Star

ACI Limited plans to set up a plant in Bangladesh to assemble Panasonic-branded products after embarking on electronics business with distributorship of the Japanese company's audiovisual items.

"After signing a sole distributorship agreement with Panasonic in Singapore recently we have started retailing Panasonic-branded audiovisual products in Dhaka and Chittagong areas," Muallem A Choudhury, chief financial officer of ACI, told The Daily Star.

"We have a dormant dream of setting up an assembling plant in Bangladesh, where completely knocked down (CKD) items will be put together for a finished Panasonic branded item," Choudhury said.

Setting-up of the assembling plant depends, however, on the success of retailing of Panasonic products, to some extent, said the company's other senior officials.

Panasonic has approved an assembling plant in Vietnam after observing its product-retailing for seven years.

ACI has projected to sell 5,600 pieces of Panasonic audiovisual products worth Tk 128 million in the first year, which will be 2.5 percent value share of the audiovisual product market.

The product profile comprises colour television, flat panel television (LCD and Plasma), DVD home theatre, DVD player, mini hi-fi system, digital still camera and video camera.

Earlier, Panasonic products were marketed by Nicole, now defunct.

"We are reintroducing Panasonic items in a big way," Choudhury said, pointing to the previous distributors' performances here, which he deems unsatisfactory because Panasonic's market share is less than 1 percent in Bangladesh.

ACI promotional drives for Panasonic items will be funded by the Japanese company.

Among the product profile, liquid crystal display (LCD) and plasma-televisions are premium products that targeted high-end customers, corporate houses and hotels and motels.

ACI Consumer Brands, a strategic business unit of ACI, has already sold four 50? plasma televisions each at Tk 3.82 lakh, eight 42? plasma televisions each at Tk 2.30 lakh and eight 42? LCD televisions each at Tk 1.51 lakh.

Panasonic is superior in manufacturing television with hi-definition plasma and LCD.

"Our target is not only selling the premium products, but also regular or common items for middle income group to upper level," Choudhury said.

Panasonic's regular colour television, the price of which is lower than Sony brand but higher than Chinese and other brands, is a quality product, he said.

Colour television is the biggest segment of the Tk 1,330 crore electronics market, with 15 percent annual growth, according to industry sources.

Around 400,000 television sets worth Tk 440 crore were sold last year.

Among the television brands, Chinese Konka is the top player with 21 percent market share, followed by TCL with 18 percent, Singer with 12 percent, LG with 11.25 percent and Samsung with 10 percent.

ACI will also introduce Panasonic refrigerators in the next phase to capture a position in the refrigerator market, the second biggest segment of the electronics market.

"Our purpose is not to compete with Chinese items, rather our main objective is to provide quality products to customers," the ACI official said.

ACI, also involved in pharmaceuticals, agro-business and consumer items, made a net profit of Tk 107.56 crore last year.

Prime Bank mutual fund soon

The Daily Star

A Tk100 crore close-end mutual fund, sponsored by Prime Bank, will be floated very soon, an evidence of further intensifying the capital market depth.

The bank will subscribe at least 20 percent of the fund styled "Prime Bank 1st ICB Mutual Fund", according to a decision taken by the bank's Board of Directors recently.

The rest 80 percent of the fund, a 10-yearly one, will be raised through a placement prior to initial public offering (IPO)), or pre-IPO placement. Per unit price of the mutual fund will be Tk 10.

"We will float the mutual fund as soon as possible and we have already appointed the ICB Asset Management Company as fund manager," Sheikh Mortuza Ahmed, head of merchant banking and investment division of Prime Bank, told The Daily Star yesterday.

However, such a floating is subject to approval from the stock market regulator, Securities and Exchange Commission.

"Although we are yet to determine share-portions for pre-IPO placement and IPO, the portion will be market-oriented," Ahmed said.

New mutual funds, considered to be risk-free investment tools in the stock trading, means a more demand side for long term investment, Ahmed said.

"Moreover, the more mutual funds will help the market move from retailers-driven to institutional," he said, pointing to the high volatility in retailer-driven market.

Prime Bank is the latest among the private commercial banks (PCBs) that have already proposed to launch several mutual funds.

Eastern Bank, Trust Bank and IFIC Bank have already finalised the process to launch some close-end mutual funds this year.

The 'Eastern Bank First Mutual Fund' valued at Tk 100 crore will make its debut by this month, while the 'IFIC First Mutual Fund' worth Tk 100 crore and 'Trust Bank First Mutual Fund' worth Tk 200 crore is likely to enter the market by July.

Some other non-banking financial institutions and nationalised commercial banks are also striving to float mutual funds.

Presently, a total of 17 mutual funds are listed on bourses. Of them, ICB and its subsidiaries manage 13 mutual funds, AIMS Bangladesh three and BSRS one.

The Grameen Mutual Fund One: Scheme Two amounting to Tk 125 crore is the largest listed mutual fund and the ICB 2nd NRB Mutual Fund worth Tk 100 crore is the second.

At present, the mutual funds contribute 5.54 percent to the total market capitalisation.

Golden Son under SEC scan

The New Age

The Securities and Exchange Commission on Sunday formed an enquiry committee to probe into unusual shares trading of Golden Son Limited at the stock exchanges.
‘We have formed the probe committee to look into the unusual trading of shares of the company recently,’ said Anwarul Kabir Bhuiyan, executive director of the SEC.
He said the two-member committee was asked to submit its report within 30 working days. SEC director M Mahbubul Alam and deputy director Md Mahmoodul Hoque are the members of the committee.
He said abnormal rise in the company’s share price in the January-March period prompted the commission to investigate the matter.
Share price of Golden Son jumped to around Tk 71 by the middle of the March. The stock was traded at around Tk 20 before late October in 2008, DSE statistics shows.

Energy, power shares claw back ground

The Daily Star

A steady performance by energy and power sector companies has made their stocks lucrative, leading to an increasing demand for their shares among the investors.

The rising demand is evident from the last month's sectoral turnover on the Dhaka Stock Exchange (DSE), wherein energy and power sector topped with Tk 1,478.08 crore turnover, which was 15.47 percent of the total turnover.

But in February the sector was in fourth place with Tk 674.27 crore turnover, which was 11.76 percent of the total turnover, according to DSE statistics.

The trend shows that the investors were much interested in energy and power sector companies than others.

Investors and analysts said without energy and power, development activities will come to a standstill.

"Here lies the potential of energy and power sector," said an investor.

Except only one out of the 10 listed energy and power companies, business performances of all are remarkable with steady profit.

Of those companies, Power Grid Company of Bangladesh (Powergrid), Dhaka Electric Supply Company (Desco), Titas Gas Transmission and Distribution Company, Summit Power and Padma Oil Company are the most lucrative for the investors.

The five other companies are Jamuna Oil Company, Meghna Petroleum, BOC Bangladesh, Eastern Lubricants and Bangladesh Welding Electrodes (Bd Welding).

Bd Welding is the only company whose performance is not up to the mark for the time being.

Powergrid, the state-run power transmission company that was listed in 2006, has been maintaining a steady growth since 2004. The company made a net profit of Tk 169.26 crore in 2008 against Tk 125.37 crore in 2007 and Tk 61.99 crore in 2006.

Another state-owned power supplier, Desco, which was also listed in 2006, has been continuing strong business growth since 2004. The company's net profit in 2008 was Tk 100.08 crore, while the profit was Tk 71.10 crore in 2007 and Tk 57.87 crore in 2006.

The balance sheet of Titas Gas, another state-run entity that distributes natural gas to greater Dhaka, greater Mymensingh and Brahmanbaria, shows its steady performance since 2005. The company, which was listed early last year, made a net profit of Tk 421.82 crore in 2008 against Tk 257.52 crore in 2007 and Tk 206.44 crore in 2006.

Summit Power, a concern of Summit Group and the first Bangladeshi independent power producer, has been maintaining tremendous business since its inception in 2001.

Summit, the only local company in private electricity generation and supply business, is adding power to the national grid and was listed in 2005. It made a net profit of Tk 26.51 crore in 2007 and Tk 17.51 crore in 2006. The company's net profit as of June 2008 was Tk 22.54 crore.

All the energy and power companies have a huge potential, said Salahuddin Ahmed Khan, former DSE chief executive officer.

"If their potential is tapped properly, investment from both home and abroad will come to the sector," he said.

He however said in case of failure to exploit their potentials, the stock prices of the sector will be overpriced and ultimately investors will lose money when the prices of the shares will see corrections.

Padma Oil, Jamuna Oil, Meghna Petroleum, BOC Bangladesh and Eastern Lubricants are also maintaining steady growth.

Bd Welding incurred a net loss of Tk 0.69 crore in 2007 against a net profit of Tk 0.24 crore in 2006. However, as of June 2008 the company made a net profit of Tk 0.40 crore.

Portfolio management limit for banks, NBFIs goes

The Financial Express

The Securities and Exchange Commission (SEC) has amended some rules meant for merchants banks and portfolio managers to gear up their activities in the share market.

Under the amended rules, the Commission has made it mandatory for the merchant banks to bring at least one new issue in two years instead of one year. The change comes into effect from January next.

A merchant bank will have to build up five additional portfolios every year besides managing their own portfolios in order to net more clients, which will ultimately help improve fund flow to the market.

Under the existing rules, no merchant bank or non-banking financial institution (NBFI) or bank is allowed to manage portfolios exceeding five times of their paid-up capital and free reserve.

NBFIs and banks have been excluded from such restriction under the amended rules. Thus, there will be no limit for the NBFIs and banks in managing portfolios.

Portfolio means a collection of investments owned by an investor, an institution or a mutual fund and portfolio manager means the entity responsible for investing a mutual fund's assets, implementing its investment strategy and managing day-to-day portfolio trading.

"The SEC has amended the merchant bank and portfolio manager rules to expedite the activities of the financial institutions in the stock market and to increase fund flow as well," Anwarul Kabir Bhuiyan, SEC executive director, told the FE.

"If they fail to bring new issues within stipulated period they will face cancellation of licence as per securities rules," he said.

The rules were amended against the backdrop of allegation that the merchant bankers generally preferred to invest in the secondary market rather than bringing in new issues after receiving their licence.

The amendment has been brought to merchant bank and portfolio manager rules in a Commission meeting held Thursday last, he said.

The Commission has overcome the quorum crisis after the government's recruitment of a member a week ago.

Since retirement of Faruq Ahmad Siddiqi as the SEC chairman, the Commission failed to convene any meeting because of quorum crisis. At least three members including the chairman are needed to Convene a commission meeting.

Currently, 30 merchant banks are operating in the market. Only a few of them are now active and most of them have shown unsatisfactory performance in the capital market, with a number of them even appeared reluctant to start operations, SEC sources said.

Responsibilities of a full-fledged merchant bank include underwriting, issue management, portfolio management and lending to stock investors.

So far, the Commission has cancelled the licences of six merchant banks because of violation of securities rules or their inaction after taking licence.

They are the First Securities Services Ltd, the Raspit Securities and Management Limited, the Pangaea Partners (BD) Ltd, the Prime Securities, and Financial Services Ltd, the Mercantile Securities Ltd, and the Equity Valuation Research and Distribution Ltd.

General insurers post high growth

The Daily Star

General insurance companies' gross premium income grew by 16 percent in 2008 despite a reduction in business activities in the last quarter on the global recession coupled with a drastic fall in commodity prices.

There are 43 private players and one government-owned player in the general insurance sector that earned around Tk 1,245 crore last year, an increase of 15.96 percent from Tk 1,073 crore in 2007, according to available data.

“Increased economic activities are pushing the industry's premium up,” said Nasir A Chowdhury, managing director of Green Delta Insurance that earned the highest premium worth Tk 140 crore after state-owned Sadharan Bima's around Tk 142 crore.

According to the sector people, fire insurance generated the highest premium followed by marine last year.

The third highest premium earner is Reliance Insurance with Tk 104 crore followed by Pragati that earned around Tk 91 crore.

Gross premium in a general insurance company means net premium, plus operating and miscellaneous expenses and agent's commissions.

Rafiqul Islam, chairman of Bangladesh Insurance Association, said two key features governed the growth in the sector in 2008 -- a huge increase in commodity prices and import of some 15,000 reconditioned motor vehicles.

He sees great prospects for the industry amid increasing awareness among the people.

The insurance sector is growing with a rise in industrial activities, he added.

“The sky is the limit for the companies,” said Islam, also the managing director of Pragati Insurance.

Nasir Chowdhury said the country has a huge untapped market and the future is bright for general insurance companies because of the emergence of upper-middle-class income groups empowered with better spending power.

“The demands for housing and automobiles have increased and the insurance needs have also gone up,” said Chowdhury who has over 50 years of experience in insurance industry.

But 2008 was not good for all the companies. Nine out of 44 companies had negative growth with the highest 20.53 percent by Union Insurance. Another nine companies posted single-digit growth and the remaining 26 grew by double digits.

Currently Bangladesh's insurance sector is being governed by the age-old 1938 Act. Recently the government approved new laws in a cabinet meeting to replace the old one.

Industry people said the new laws, if passed, would help the sector grow further.

There are 17 life insurance companies operating in Bangladesh.