dse_nrb_pro_usa_2010

7/29/2019 dse_nrb_pro_usa_2010

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DSE NRB PROGRAM IN USA, 2010

GROWTH & POTENTIALS OF CAPITAL MARKET, BANGLADESH23 & 24 September 2010

We take the pleasure to inform you that the President of DSE together with other three former Presidentsis scheduled to visit USA as Member of the Prime Ministers high delegation team of USA tour. The

DSE has therefore, taken initiative to utilizing this event by availing the opportunity of holding a Press

Conference and a NRB Conference on the theme Growth & Potentials of Capital market, Bangladesh

to promote the Capital Market, Bangladesh on 23 & 24 September 2010 respectively in which your

presence would be highly appreciated. The NRB USA LLC is locally organizing the event in USA for

DSE. The following are the delegation from DSE in the conference:

1. Mr. Md. Shakil Rizvi, President, DSE

2. Mr. Md. Rakibur Rahman, Immediate past President and present Director, DSE

3. Mr. Ahmed Iqbal Hasan, past President and present Director, DSE

4. Mr. Abdul Haq, Past President, DSE

5. Mr. Sharif Ataur Rahman, Director, DSE

Please find the venue details with date, time and address as in the following:

PRESS CONFERENCE(with USA Print & Electronic media more or less 50 journalist)

DATE : 23 SEPTEMBER 2010

VENUE : BOMBAY PALACE, BOMBAY PALACE, 30 west 52nd St. Manhattan, NYC. TIME : 12:00 15:00 HOURS

KEYNOTE SPEAKER : MR. MD. RAKIBUR RAHMAN

BUFFET LUNCH WILL BE OFFERED.

PRESS CONFERNCE SCHEDULE

12-15pm. DSE Executive introduction before press reporters by NRB president. Jasimudin

Noornabi.

12-30pm to 1-15pm. DSE selected Rep. will address before the press reporters.

1-15pm to 2-00pm Question and answer by reporters with DSE representative.

2-00pm to 2-30pm Buffet lunch, 2-30pm. Closing thanks by DSE Rep. & NRB Rep.

NRB CONFERENCE(Professional, Resourceful, Businessman, Diplomats, strictly

Invited guests 250 pax)

DATE : 24 SEPTEMBER 2010

VENUE : La Guardia Marriott Hotel

102-05, Ditmars Blvd, Queens, NY 11364 TIME : 18:00 23:30 HOURS

KEYNOTE SPEAKER: MR. MD. RAKIBUR RAHMAN

BUFFET DINNER WILL BE OFFERED WITH CULTURAL PARTY


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NRB CONFERENCE SCHEDULE

6-00pm.to 7-00pm Guest Reception, Registration and Refreshment.

7-00pm to 7-30pm DSE representative Introduction before audience by NRB President.

7-30pm to 8-30pm Presentation by DSE Executive/Officials before audience.

8-30pm to 9-30pm Questions and answers session.

9-30pm to 10-15pm Buffet Dinner.

10-15pm to 11-30pm Cultural Program.

Please contact the following officials for collection of the invitation card (A), also to meet further

queries if you have any in addition to the affairs stated above. Members of DSE and the stakeholders

presently living in USA and nearby USA are cordially requested to attend the events if possible.

Sl.

No.

For contact in USA (A) For contact in Bangladesh (B)

1. Jashimuddin NoornabiPresident - NRB USA LLC

Tel: 917-214-5639

Syed Al Amin RahmanDGM, Dhaka Stock Exchange Ltd.

Cell: 88-01713425808

Fax: 88-02-9564727

E-mail: [email protected],

[email protected]

2. Shahab Uddin- Member Secretary

Tel: 917-915-8023

3. M. Akbar, Co-ordinator

Tel: 917-400-8124

We are looking forward to your kind presence, all out support and cooperation in holding the events and

make it a grand success.


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fthyfgDhaka Stock Exchange LtdPrime Bourse of the Nation 1DHAKA STOCK EXCHANGE LTD.

DHAKA STOCK EXCHANGE LTD

Growth & Potentials of Capital Market,Bangladesh

KeyKeyKeyKey----Note PaperNote PaperNote PaperNote PaperBy

Md. Rakibur RahmanDirector and Former President

DHAKA STOCK EXCHANGE LTD


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Bangladesh Economy

The country can be considered Middle Income Country since it has crossed 99

billion dollar GDP level. Bangladesh has been undergoing potential changes in the

course of real development process turning the country into a middle income one

which we may see its peak by 2021 under the vision 2021.

Bangladesh has never experienced a negative economic growth during the last

39 years since its independence and maintained more than 5% GDP growth rate

for last one and half decades. The most vital point for the country has been that

Bangladesh has never defaulted on the payment to international lenders.

Relatively investor friendly open policy regime

Uniform and congenial ethnic working environment which have effectively made

the country a vital source of industrial and other potential sectors development

ground and the flow of FDI (Foreign Direct Investment) has showed upward

trend. Comparative cheap and easily available labour has also worked suitably

towards the sustainable path of development.

Bangladesh has been remarkably improving key socio economic indicators

over the years. Almost all the key indicators of the economic condition have been

moving towards sustainable position removing all the obstacles especially natural

disasters.


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GDP Growth:

GDP growth rate has been estimated as 6.00% for the Fiscal Year 2009-2010 butstood at 5.88 which was above 6% for the last few years but the Financial Crisisdented the global economy and also a little bit jolt came down heavily on theBangladesh Economy but even after that Bangladesh economy has postedmoderate growth. The growth has been forecasted as 6.7% for the fiscal year2010-2011.

Foreign Exchange Reserve:

Foreign Currency Reserve is growing consistently over the last few years. On 08

Septemberforeign currency reserve has stood at $11.25 billion, which has beenthe highest, and in November 2009 the reserve touched the $10 billion mark forthe fast time in the countrys history. Also the current account surplus stood at$373 crore 40 lakh in the year 2009-10 which was $241 crore 60 lakh and $70crore showing the gradual upward trend.

GDP Growth

4.62

5.39 5.234.87

5.94

5.27

4.42

5.26

6.275.96

6.63 6.436.19

5.746.00

2.002.503.003.504.004.505.00

5.506.006.507.00

1995

-96

1996

-97

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

GrowthRa

te

Foreign Exchange Reserve

0100020003000

4000

500060007000

80009000

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

ForexReserveUS$mn

0

10

20

30

40

50

60

GrowthRate

Forex Reserve US$ mn

Growth Rate (%)


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Remittance:

Remittance crossed US$ 10.98 Bn in 2009-2010. Remittance inflow has beenshowing upward trend as in the first two months of the current fiscal year a totalof $181 crore 53 lakh has come into the country.

Export:

Export has been showing increasing trends and crossed US$ 16.21 Bn in 2009-2010. Total export receipts during FY2009-2010 increased by US$ 639.46 millionor 4.11 percent as compared to FY2008-2009.

Remittances

0

2000

4000

6000

8000

10000

12000

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

Fore

xReserveUS$mn

0

5

10

15

20

25

30

35

GrowthRate

Remittances US$ mn

Growth Rate (%)

Exports

6,467 5,986 6,5487,603

8,655

10,52612,178

14,11015,565 16,205

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

ExportsUS$mn

Export s (Million US$)


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Money Supply:

During FY2008-09 the, year-on-year growth of narrow money supply reached11.99 percent from 18.23 percent in FY2007-08. As of May 2010 the growthnarrow money supply reached to 24.57 percent compare to previous year.

The, year-on-year growth of broad money during FY2008-09 reached 19.2 percentfrom 17.6 percent in FY2007-08, mainly driven by the increase of net foreignasset of banking system (26.7 percent), while the growth in net domestic assets of

banking system was 17.8 percent. As of May 2010 the growth of broad moneysupply increased to 22.44 percent.

Money Supply (M1)

0

5

10

15

20

25

30

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10*

Grow

thofNarrowMoney(%)

Growth of NarrowMoney (M1)

Money Supply (M2)

-

5.00

10.00

15.00

20.00

25.00

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009-10

*

GrowthofMoneySupply(%

Growth ofmoney Supply


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Savings:

Domestic and national savings were 18.63 and 24.87 percent respectively inFY2002-2003. In FY2009-2010 domestic and national savings has been estimatedas 19.78 percent and 29.65 percent as against 20.09 percent and 29.57 percent in

previous year.

Investment:

In FY2002-2003, total investment rate was 23.41 percent of GDP. Governmentand private sectors investment as a percentage of GDP were 6.20 and 17.21

percent respectively. For the FY2009-2010 Government and private sectorsinvestment rate have been estimated as 4.62 and 19.74 percent respectively.

Savings

10.0012.0014.00

16.0018.0020.0022.0024.0026.0028.0030.0032.00

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10*

NationalSavingstoGDP

Domestic Savings

National Savings

Investment

22.20 23.0023.10 23.10 23.40

24.00 24.50 24.70 24.50 24.20 24.40 24.35

6.70 7.40 7.20 6.40 6.20 6.20 6.20 6.00 5.50 4.90 4.70 4.62

15.50 15.60 15.8016.80 17.20

17.80 18.3018.70 19.00 19.30

19.67 19.74

-

2.50

5.00

7.50

10.00

12.50

15.00

17.50

20.00

22.50

25.00

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10*

Investment(%)

Total Investment

Public

Private


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Per Capita GDP and GNI:

For the first time of the history Gross National Income (per capita) crossed 700US dollar. In FY2008-2009 per capita GDP and GNI were 620 and 676 US dollarrespectively. Per capita GDP and GNI are 684 and 750 US dollar.

Inflation:

The rising trend of higher price of oil, essential imported commodities such asrice, lentils, wheat and soybean oil in the international market the inflation rate

rose to 9.93 percent in FY2007-08 compared to 7.22 percent of the previous year.The inflation rate was 6.78% as of May 2010.

Per Capita GDP & GNI

400

450

500

550

600

650

700

750

800

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10*

GDP Per Capita US$

GNI Per Capita US$

Inflation

1.942.79

4.38

5.836.48

7.16 7.20

9.94

6.66 6.78

0.00

2.00

4.00

6.00

8.00

10.00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10*

InflationRate(%)

Inflation


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Foreign Direct Investment:

Foreign Direct Investment (net) recorded US$ 961.00 million during FY 2008-2009 as against US$ 768 million in FY 2007-2008. For the FY 2009-2010

foreign direct investment figure was US$ 636 million (provisional).

Independent View of JP Morgan:

In addition to the well-documented Vietnam, we would identify Nigeria,Kazakhstan, Bangladesh and Kenya as frontier markets worth furtherinvestigation; these are the JP Morgan Frontier Five. JP Morgan

It is the demographics of Bangladesh that justifies its inclusion in the JPMorgan Frontier Five. The country ranks fourth in growth in economicallyactive population. Five-year economic growth is strong at 6.1% (CAGR).Progress has been made over the last few years to reduce poverty, increasingliteracy levels and moderating population growth to a more sustainable level.An assertive judiciary, active civil society and a relatively free media haveincreased public accountability.

Goldman Sachs Next Eleven Bangladesh Egypt Indonesia Iran Korea Mexico Nigeria Pakistan

Philippines Turkey Vietnam

N-11 as a group may have the capacity

to rival the G7 - if not in absolute

terms, then at least in terms of new

growth

744.61

792.74

768.69

960.59

636.00

-200

400

600

800

1,000

FDIUS$mn

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10*

Foreign Direct InvestmentFDI US$


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Recent Initiatives

Elevated expressway:

The Cabinet has approved the long-awaited Dhaka Elevated Expressway (DEE)project andits route alignment.

Power Sector Development:

The government is working to generate 7,000 megawatts of electricity by 2013 and 20,000by 2021 in line with their electoral manifesto. From another declaration of the honorablePrime Minister it has been evident that the government is committed to adding 1,600megawatt electricity to the national grid. The government has also relaxed the investment

procedure in the power sector and potential investors especially Non-Resident Bangladeshmay come forward with chunk of investment.


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Dhaka-Chittagong Highway:

With the sole of objective of making the countrys infrastructure facility to the highest levelsuitable for the easy and business-friendly one the government has decided to make thehighways a four-lane one so that transportation-related infrastructure may be hundred percentinvestment-friendly. In the meantime the work has started to upgrade Dhaka-Chittagonghighway to four-lane under a Taka 2,382 crore project. It is expected that the project willend by January 2013.

Up-gradation of Bangladeshs sole Oil Refinery:

The upgrade will increase ERLs production capacity by 300 per cent to 4.5 million tonsper year by 2013. Now the annual capacity is 1.5 million tons. After implementation thisdecision will surely help the country achieve some progress in the further development.


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450MW Combined Power Plant

A $300 million, 450MW Combined Cycle gas-fired power station is now operating inMeghnaghat, Bangladesh. The plant was built by AES (Allied Energy Systems) Corp, theUS-based producer. It has since been sold to British company CDC Globeleq, which alsotakes over a 22-year Power Purchase Agreement (PPA) with Bangladesh Power DevelopmentBoard (BPDB).

Public Private Partnership Projects

A total of Tk 2,500 crore has been earmarked in the current fiscal years budget for the

PPP projects.

Bangladesh Infrastructure Financing Funds

In the Budget of 2010-2011 the Government has proposed an amount of Tk. 1 thousandand 6 hundred to develop the infrastructure of the country, which will be implementedunder Public and Private Partnership. Here it may be mention that in the current fiscal yearundisclosed money is also allowed to invest in this project subject to the payment of 10% tax.

Loan agreement with India

Bangladesh Goverment has signed an agreement with the Exim Bank of India about 100crore US$. This loan amount will be used to develop the power and railway sector ofBangladesh.

World Cup and BD Economy

World Cup Cricket 2001 will be jointly hosted by Bangladesh, India and Sri Lanka. Thisarrangement of ICC World Cup will boost the pace of economy in Bangladesh.


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Capital Market

Bangladeshs capital market sees 2009 as year of landmark achievements

SHEIKH HASINA

Prime MinisterPeoples Republic of Bangladesh

In its 56 years journey the stock exchange has made significant contribution to theEconomy of Bangladesh.

Presently DSE has 238 outstanding shares (Members) having present market value ofTk. 830 mn. (appx), equal to $ 11.95 mn.

Central Depository Bangladesh Limited (CDBL) has been registered as a Depositoryby the Securities and Exchange Commission under section 4 of The Depositories Act

1999.

Total Issued Capital of all listed securities - US $ 9.05 bn

Market Capitalization of all listed securities US $ 42.89 bn

Listed Securities:

Total Listed Securities : 461Companies : 246Mutual Funds : 26Corporate Bond : 02Treasury Bonds : 179

Highest Records:

Particulars Values Date

Total Number of Trades 2,89,965 10-08-2010

Total Trade Volume (Crore) 13.24 31-08-2010

Total Traded Value (Taka Crore) 2,486.04 16-06-2010Total Market Capital (Taka Bn) 30.73 05-09-2010

DSE General Index 6,889.88 05-09-2010


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Beneficiary Owners Accounts (BO)

MilestoneJanuary 2009 : BO Accounts setup in CDBL surpass 2 million

February 2007 : BO accounts setup in CDBL surpass 1 million

August 2005 : BO accounts setup in CDBL surpass 500,000

Highlights of progress of CDS

Period June 06 June 07 June 08 June 09 Aug 10

BO Accounts 792,463 1,385,144 1,777,334 2,124,976 2,842,819

NRB Participants in IPOs:

Year Dec-2006 Dec-2007 Dec-2008 Dec-2009 May-2010

Average Participants 6,351 9,669 18,996 25,263 48,284

Over Subscription in Times 5.82 5.39 11.06 8.56 5.09

BO AccountsBO AccountsBO AccountsBO Accounts

1,385

,144

1,77

7,33

4

2,12

4,97

6

2,84

2,81

9

792,46

3

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Jun e-2 00 6 June-20 07 Jun e- 20 08 Jun e-2 00 9 Aug-20 10

BO

Accounts(Nos)

NRB Participants in IPOs

5.82

8.56

5.09

11.06

5.39

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Dec-2 006 Dec-2 007 Dec- 20 08 Dec- 20 09 May -2 01 0

AverageParticipan

tsNos

-

2

4

6

8

10

12

SubscriptionOverTimes

Average Participants O ver Subscription in Times


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Category wise Securities:

A - 205,B - 10,G - 0,

N - 7,Z - 52

South Asian Market Capitalisation Ratio

Country M.Cap GDP M.Cap to GDP

(Bourse) (US$Bn) (US$Bn) (%)

Bangladesh (DSE) 42.95 99.43 43.20%

Thailand (SET) 218.36 263.89 82.75% India (BSE) 1539.42 1235.89 124.56% Pakistan (KSE) 34.06 166.52 20.46% Sri Lanka (CSE) 15.24 41.32 36.88% Nepal (NEPSE) 4.89 12.62 38.75% Malaysia (Bursa) 347.59 191.46 181.55%

Contribution to National Exchequer:

With growing activities and expanded volume of transaction DSEs contribution to thenational exchequer has been increasing over the years. The amount stood at Tk 1281.75 mnin 2009-2010. DSEs contribution to the National Exchequer is almost 9 thousand 190 per-

cent higher than five years back.

Securities Under CDBL 424:

Percentage of Total Market Cap Under CDBL 99.73%. With the initiation of CDBL(Central Depository Bangladesh Limited-an institution helps to preserves shares ofcompanies in electronic format) forgery of shares and many other forms of fake business has

been reduced significantly.

Multinational Companies 13:

Percentage of Total Market Cap 18.64%

Joint Venture Companies 9:

Percentage of Total Market Cap 6.99%


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Foreign Trade Turnover:Year

Indicators 2005 2006 2007 2008 2009 2010*

Total (US$. Mn) 5.1 26.4 290.0 198.0 208.0 186.4

% of total Value 0.53 2.80 6.16 2.04 0.97 0.55

Market Turnover:

Year 2005 2006 2007 2008 2009 2010*Turnover US$ (Bn.) 0.97 0.94 4.71 9.71 21.33 34.11

Daily Average Turnover:

The Daily Average Turnover has risen to Tk. 1,420 Crore (appx).

Power Sector Growth:

Companies Avg. Offloading Current Mkt.

Price (Tk.) Price (Tk.)

DESCO 257.11 2411.00Power Grid 179.86 1068.00Jamuna Oil 328.64 424.10Meghna 324.96 261.80

Titas Gas 455.28 1079.00

Status Government Owned companies through Direct Listing:

Face Value of Total offloaded shares Tk. 351 crore

Market Value of Total Offloaded Shares Tk. 2,028 crore

Over Times 5.77

Current Status of Government Owned Companies through Direct Listing:

Face Value of 22.43% shares will be Tk. 353 croreAt 10% less market value of Offloaded Shares will be Tk. 4,284 crore

At 20% less market value of Offloaded Shares will be Tk. 3,808 crore


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Initiatives for Market Expansion

Market Extension:

Now DSE has offices in four divisional cities (Chittagong, Sylhet, Rajshahi andKhulna) and steps have also been taken to introduce offices in other district leveltowns to reach the securities trading facilities to the door of investors. Member ofthe countrys prime bourse has expanded in the 17 districts in the country andgradually it will reach to the door of people bring all the people under the tradingnetwork.

Employment Generation:

Nearly 578 branch offices of brokerage houses have been opened where

employment has been generated for nearly 25,000 people. From the realisticstandpoint it may be dully mentioned that DSE has been a centre-stage ofemployment for the skilled, semi-skilled and less-skilled people. Actually acorporate culture has been growing among the youths who have been associatedwith the countrys capital market.

Book Building Method:

Book Building, modern pricing mechanism of price discovery of shares, whichensures fair prices of securities in the capital market, has been introduced in2010. With the introduction of Book Building Method it has been expected thatmany potential entrepreneurs will bring their business ventures into the countryscapital market.

Website Development:

Many glorious changes have been made in the DSE website. DSE Website hasbeen provided with many issues such as P/E: at a glance, Interim FinancialPerformance, Recent SEC and DSE Circulars and also up gradation of Daily,Weekly, Fortnightly and Monthly Publications of DSE.


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ICT Development

The robust structured LAN setup is distributed to the DSE building and its vicinity.Member houses, which are located in those buildings, are connected to the Trading

Engine through this LAN setup.

Approximately 2200 workstations along with 213 Members Servers are connected toDSE Central Network through DSE LAN & expanded WAN setup (using RADIO

LINK / Fiber Optics / ADSL connectivity / Dialup) within Dhaka City.

Among them minimum 160 Members are running their Branch from 650 locations of17 districts.

DSE is regularly holding investor awareness program in all the major cities. DSE held International Conferences/ Road shows DSE also holding various workshop, seminars, training program on different issues of

securities market.

DSE Training Academy is holding different types of programs for the interest of thestakeholders of Capital Market.

DSE is regularly publishing Monthly Market review and Fortnightly to disseminatemarket information.

DSE has a highly informative web site that disseminates online trading data andmarket information to the investors.

Required Initiatives For Market Expansion

The government should immediately off-load its own shares lying in differentorganizations and companies.

Recently countrys capital market has witnessed many records but to continue thetrends of current pace and progress of securities market off-loading of fundamentally

sound companies shares should be done immediately.

The Ministry of Finance should take sophisticated and time-bound steps to attractprivate sector companies to get listed with the countrys bourse for further increasing

the depth, width and dimension of capital market.

Apart from increasing the depth and width of market it will also help generateemployment opportunities for the educated unemployed youths.

Documents

dse_nrb_pro_usa_2010