monthly business review - august 2011

Volume 7 Issue 08 August 2011

H I G H L I G H T SECONOMY• ADP spending improves in

FY 2010-11

• Inflation hits 3-year high in July, 2011 on soaring food prices

TRADE• Trade deficit expands due to

soaring commodity prices

• Export earnings up by 28% in July, 2011

BUSINESS• Credit-deposit ratio reaches

safe limit in June, 2011

• Sales of savings certificates drop in 2010-11

REGULATORY NEWS• BB moves to better monitor

NBFI

• Face value of shares, MF units to turn to BDT 10 from December, 2011

INTERNATIONAL• Debt crisis: Global markets

plunge as eurozone contagion speads

• Asia lacks social benefits despite growth: ADB

COMMODITY NEWS• Gold price touches USD

1,900 before retreating

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Volume 7 Issue 08 August 2011

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ECONOMY 2 SELECTED ECONOMIC INDICATORS 2TRADE 4 CATERGORY WISE EXPORT 4BUSINESS 6REGULATORY NEWS 7MARKET ROUNDUP 8 EXCHANGE AND FORWARD RATES 8 WEEKLY CURRENCY ROUNDUP 8 TREASURY BILL/BOND AUCTION INFORMATION 9INTERNATIONAL 9 INTERNATIONAL ECONOMIC FORECAST 11 INTERNATIONAL COMMODITY PRICES 11 INTERNATIONAL MARKET MOVEMENT 11NEWS IN BRIEF 12 BUSINESS - FIRM SPECIFIC 12 CSR ACTIVITIES IN THE MONTH 12 REWARDS AND RECOGNITIONS 12 MANAGEMENT CHANGE - BANKS & FIS 12 MANAGEMENT CHANGE ‒ OTHER ORG. 13 UPCOMING EVENTS 13IDLC NEWS 13CAPITAL MARKET REVIEW 15MONTHLY MARKET STATISTICS 15 Index Movement (August, 2011) 15 Advance/Decline (August, 2011) 15 Market Statistics (August, 2011) 15 Top Ten Gainers’ List (August, 2011) 15 Top Ten Losers’ List (August, 2011) 15 Top Ten by Value (August, 2011) 16 Lowest P/E and Lowest P/BV ratio 16 Top Ten Market Capitalization (August, 2011) 16 Market Capitalization 16DSE TURNOVER AND DGEN 16RECENT CORPORATE DECLARATION 16SECTOR INDICATORS (AUGUST, 2011) 17EMERGING MARKET STATISTICS 18FORTHCOMING IPO UNDER FIXED PRICE METHOD 18YEARLY PROFIT DECLARATIONS IN AUGUST 18UN-AUDITED HALF YEARLY RESULTS DECLARED IN AUGUST 18UN-AUDITED QUARTERLY RESULTS DECLARED IN AUGUST 18PHARMACEUTICALS SECTOR ANALYSIS 18WEEKLY (AUGUST 21 - 25, 2011) UPDATE ON OPEN-END MUTUAL FUNDS 19WEEKLY (AUGUST 21 - 25, 2011) UPDATE ON CLOSED-END MUTUAL FUNDS 20INVESTMENT TERMINOLOGY 22SELECTED DSE NEWS OF THE MONTH 22

CONTENTS

2Volume 7 Issue 08 August 2011

ECONOMY

Industrial credit growth boostsIndustrial credit, generally known as term loan, disbursement recorded a signifi cant rise by nearly 22% in the third quarter of the fi scal 2010-11 compared to the corresponding period in the previous fi scal. The disbursement of industrial term loans stood at BDT 75.64 bn during the January-March period of FY 2011. A total of BDT 62.12 bn was disbursed during the corresponding period of FY 2010.

The implementation of annual development programme (ADP) was better last fi scal year, rising by 27% compared to the previous year. In fi scal 2009-10, the implementation rate was 91% of the revised ADP. The implementation of foreign aided projects went up by only 1.6% but local funded project implementation rose by 41%. According to an Implementation Monitoring & Evaluation Division (IMED) report, last fi scal year ADP worth BDT 328.3 bn was implemented, whereas the revised allocation was BDT 358.8 bn. The original allocation was BDT 385 bn. In fi scal 2009-10, the implementation was BDT 259.17 bn, which was 91% of the revised ADP. The local fund expenditure was BDT 231.66 bn or 97% of the allocation. The utilisation of project aid was BDT 96.65 bn which was 81% of the allocation.

USD 54.27 mn foreign aid received in July, 2011Bangladesh received USD 54.27 mn as foreign aid during July of the current fi scal year 2011-12 against USD 35.65 mn during the corresponding period last year. Bangladesh made a repayment of USD 81.05 mn, including USD 64.35 mn as principal amount and USD 16.70 mn as interest in July, 2011. Of the disbursed amount, Bangladesh received USD 53.70 mn as loan. IDA of the World Bank disbursed USD 0.57 mn as grant. Of the loan amount, the Asian Development Bank provided the highest USD 38.01 mn followed by USD 10.04 mn by the IDA, USD 4.01 mn by Japan and USD 1.62 mn by IFAD. However, the total aid disbursement for the last fi scal was USD 1,777.33 mn, including USD 726.62 mn as grants and USD 1050.71 mn as credit.

Item Period/ As of

Value/bn

Period/ As of

Value/bn +/(-)%

Foreign Exchange Reserve (USD) Aug’11 10.986 Aug'10 10.992 -0.05%

Workers’ Remittances (USD) Jul’11 1.028 Jul'10 0.857 19.93%

Revenue Collection (BDT) Jul’11 103 Jul’10 86 19.93%

Broad Money (M2) (BDT) Jun’11 4,405 Jun’10 3,630 21.34%

Bank deposits (BDT) May’11 3,753 May’10 3,076 22.00%

Bank credit (BDT) May’11 3,430 May’10 2,717 26.26%

Total Domestic Credit (BDT) Jun’11 4,334 Jun’10 3,402 27.41%

Credit to Private Sector (BDT) Jun’11 3,407 Jun’10 2,708 25.84%

Excess Liquidity (BDT) Jul'11 325 Jul’10 331 -1.93%

Source: Selected Indicators: Weekly Update: August 24, 2011; Bangladesh Bank.

Selected Economic Indicators

ADP spending improves in FY 2010-11


Infl ation, which had remained at a double-digit level for the fi ve months since March, 2011 hit a three-year high of 10.96% in July, 2011 far above the government’s target of 7.5%, according to the data released by Bangladesh Bureau of Statistics (BBS) on August 18, 2011. The BBS data reveals that the point-to-point infl ation in the current fi scal year has been continuously increasing on the back of soaring food prices. In January 2008, during the immediate past interim government, infl ation reached 11.43%, the highest single-month average infl ation in the country.

The average rural infl ation rose to 11.09% in July, 2011 from ■10.91% in June, 2011

The urban infl ation rose to 10.65% in July, 2011 from 8.33% in ■June, 2011

However, Infl ation accelerated faster in urban areas than in rural ■areas in July, 2011. overall infl ation increased 2.32 percentage points in urban areas, whereas, it increased 0.18 percentage points In rural areas

Food infl ation also increased to 13.40% in July, 2011 from ■12.51% in June, 2011 with the rate being higher in the rural areas at 13.56% and standing at 13.12% in urban areas

The average non-food infl ation stood at 6.46%, in July, 2011 ■increasing from 4.15% in the same month of the previous year.

Infl ation hits 3-year high in July, 2011 on soaring food prices

Consumer Price Index(CPI) and Rate of Infl ation at National Level (Base : FY96=100)

Rising trend in manpower exportsBangladesh’s overseas employment sector is showing signs of recovery after two consecutive years. In July, 2011, 50,307 Bangladeshi both men and women left the country for overseas employment, which was the highest monthly recruitment since January, 2009, according to the Bureau of Manpower Employment and Training (BMET). On the other hand, the fi gure was 28,347 in July, 2010. During January-July, 2011, 301,804 Bangladeshi nationals were recruited across the world, which was up by 24% against the total recruitment recorded during the corresponding period of 2010. The growth in manpower export is attributed to the gradual restoration of job market in the Middle Eastern countries, mainly Oman and UAE. Total 475,278 and 391,702 Bangladeshi were recruited overseas in 2009 and 2010 respectively. The six-

month overseas recruitment number is 20% higher than what it was in the corresponding period of 2010.

Overseas Employment and Workers’ Remittances

9.11%8.88%8.67%8.54%8.36%

8.21%8.14%

9.04%9.79%

10.49%

10.67%10.20% 10.17%

10.96%

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11

Twelve month average basis Point-to-Point Basis

6.46%5.73%

4.78%3.97%

4.32%4.36%

3.85%

11.91% 12.77%13.87% 14.36%

13.16% 12.51% 13.40%


Non-Food Inflation (point to point) Food Inflation (point to point)


Trade defi cit expands due to soaring commodity prices

TRADE

Country’s overall trade defi cit widened more than 42% to USD 7.33 bn in the last fi scal year as the import bill rose sharply due to price-hike of commodities in the global market. In FY 2011, export earnings stood at USD 23.01 bn against the import payments of USD 30.34 bn. Trade defi cit was USD 5.16 bn in the previous FY 2010. The trade gap has expanded because of record import cost, owing largely to high commodity prices in the international market and the higher-than-expected import of food grains. Import of other items including petroleum products, industrial raw materials and capital machinery also increased signifi cantly in the last fi scal to meet booming domestic demand. Food grain

imports stood at a record 5.31 mn tonnes in FY 2011 compared to 3.45 mn tonnes in the previous fi scal. Import bill for food grain spiked 133% to USD 1.99 bn, up from USD 854.51 mn in FY 2010. The cost of other consumer goods rose just 2% to USD 1.77 bn. Country’s current account balance was down by 73.28% to USD 995 mn in FY 2011 from USD 3.724 bn of the same period of the previous fi scal. The widening trade gap, lower growth of remittance and defi cit balance in the fi nancial account has sent the country’s overall balance of payments (BoP) into the negative territory (defi cit of USD 635 mn) in FY 2011 after about 6 years.

Export earnings up by 28% in July, 2011 Export earnings of the country stood at USD 2,339.52 mn in July, 2011 increasing by 28.7% over the earnings in July, 2010. Export Promotion Bureau (EPB) on August 08, 2011 released the latest fi gures of export that showed the earning was 7.4% higher than the target of USD 2,178.3 mn set for July, 2011. But the export growth in July, 2011 declined by 1.95% compared to June 2011 when export earnings amounted worth USD 2,386.04 mn showing a speedy growth of 40.25%.

Export earning from local jute sacks and ■bags went up by around 81% in July, 2011 due to the policy support from the government as well as growing demand in the overseas market for the products. According to EPB data, the country earned from jute sacks and bags around USD 17.03 mn in July, 2011, up by 80.98% from USD 9.41 mn fetched in July, 2010.

Export earning from Polyethylene ■Terephthalate (PET) waste bottle fl akes/ waste plastic went up by nearly 87% in July, 2011 due to growing demand in the overseas market for the products. According to EPB data, the country earned from PET waste bottle fl akes around USD 3.21 mn in July, 2011, up by 86.63% from USD 1.72 mn fetched in July, 2010.

Figures in USD mn

Item Jul-11 Jul-10 Change +/(-)Knitwear 1,007.88 798.66 26.20%

Woven RMG 888.00 671.28 32.28%

Frozen Food 58.69 44.93 30.63%

Home Textile 64.33 42.41 51.69%

Leather 29.30 24.01 22.03%

Chemical Products 13.95 12.54 11.24%

Foot Wear 38.51 26.31 46.37%

Engineering Products 27.40 22.79 20.23%

Agricultural Products 34.40 28.66 20.03%

Raw Jute 19.77 9.74 102.98%

Others 157.29 136.48 15.25%

Total 2,339.52 1,817.81 28.70%Source: Export performance for the month of July, 2011-12; Export Promotion Bureau, Bangladesh

Catergory wise Export

According to Bangladesh Bank (BB) data, country’s 16 export sectors and sub-sectors received BDT 18.40 bn as cash subsidy during the just concluded fi scal year 2010-11. The table below shows the amount of incentives to some major export sectors in the last fi scal with apparel sector having the highest incentive:

16 export sectors get BDT 18.40 bn cash subsidy in the fi scal 2010-11

In the budget for fi scal 2011-12, the government has allocated BDT 22 bn as assistance for export industry of which 19 bn will go to 15 export sectors and BDT 3 bn to jute and jute goods. Of the total allocation the ministry of fi nance recently released BDT 11 bn to disburse among the export oriented sectors in the fi rst six months of the corrent fi scal.

Sector BDT mnApparel sector 8,770Frozen food 3,070Leather and leather goods 1,690Agriculture products 450Agro- processing 731Products made of 'hogla' and 'khor' 138


Exports to Europe rise in fi scal 2010-11Driven by the marked performance of RMG, frozen shrimp, and leather and leather goods, the country’s exports to key destinations like Germany, the UK and France posted a healthy growth in the last fi scal compared to the fi scal 2009-10 year. In the 2010-11 fi scal, exports to Germany totalled USD 3,438.70 mn, which was 15% of the total export earnings during the period. Of the amount, knitwear accounted for USD 2,022.05 mn, followed by woven garment USD 1,108.91 mn and frozen shrimp USD 42.02 mn, according to latest fi gures of the Export Promotion Bureau (EPB). EPB fi gures show that:

Exports to the UK totalled USD 2,065.38 ■mn during July-June period of last fi scal, which was 9.01% of the total export

earnings. Export of RMG items to the UK accounted for USD 1,759.88 mn as against USD 1,260.03 mn during fi scal 2009-10, showing a 39.67% growth. Home textile export to the UK during the period was USD 78.59 mn, frozen shrimps USD 63.67 mn and bicycles USD 66.18 mn.

Exports to France during the 12-month ■period increased to USD 1,537.98 mn, which accounted for 6.71% of the total export earnings for the period. RMG exports to France rose to USD 1,405.69 mn during the period as against USD 952.91 mn during the same period of fi scal 2009-10, showing a 47.52% growth.

Exports to Italy totalled USD 866.42 ■mn in the last fi scal with knitwear accounting for USD 525.17 mn, woven garment USD 236.76 mn and leather USD 38.67 mn. Exports to Belgium amounted to USD ■666.24 mn that included knitwear USD 299.74 mn, woven garment USD 162.93 mn, frozen shrimp USD 128.47 mn, and jute yarn and twine USD 29.93 mn, according to the EPB fi gures. The Netherlands, another big export ■destination for Bangladesh, imported goods worth USD 1,107.13 mn during the last fi scal. This included knitwear USD 591.07 mn, woven garment USD 374.13 mn and frozen shrimp USD 62.19 mn.

Imports grow by 38.6% in last fi scal followed by growth in July, 2011Country’s overall import orders increased slightly in July, 2011 over the previous month due mainly to the holy Ramadan. Opening of letters of credit (LCs) against imports, generally known as import orders, increased by 4.25% to USD 2.77 bn in July, 2011 from USD 2.66 bn of the previous month, according to Bangladesh Bank (BB). Country’s actual imports stood at USD 2.637 bn in July, 2011 from USD 2.636 bn of the previous month. Overall imports including essential commodities, capital machinery and power plants-related imports increased is August, 2011.

Cumulative investment in eight EPZs in July, 2011 is USD 2,149 mn. ■

Cumulative export from eight EPZs in July, 2011 is USD 25,808.81 mn ■

Cumulative employment in eight EPZs in July, 2011 is 309,477. ■

Export Processing Zones (EPZs) Statistics

Employment in 8 EPZs - 2010-11 (Total Emplyment : 43,666)

0%

5%

2%12% 20%

9%

Investment in 8 EPZs - jULY ‘11 (Total Investment : USD 31.70 mn)

Chittagong EPZ Dhaka EPZ Mongla EPZ Comilla EPZ Ishwardi EPZ Adamjee EPZ Karnaphuli EPZUttara EPZ

21%46%

39%

4%1%

5%4%

1% 0%

Export from 8 EPZs - 2010-11 (Total Export : USD 3,697.62 mn)

3%

28%

2%7%1% 2%

5%

52%

31%


Credit-deposit ratio reaches safe limit in June, 2011

BUSINESS

Credit-deposit ratio (CDR) of commercial banks came down to a safe limit in June, 2011 as the surplus inter-bank deposits were included in total deposits. Banks increased deposits and reduced credit, trimming the CDR further. Commercial banks are not allowed to invest more than 85% of their deposits, while Islamic banks cannot exceed the 90% limit. On June 30, 2011 the CDR of 43 local and foreign commercial banks fell to 79.68% from more than 85% in December, 2010. The banks’ overall deposits increased by 11.22% on June 30, 2011 compared to December 31, 2010. Credit fell 6.2% as well. The banks included BDT 76.05 bn in total deposits in June, 2011, according to Bangladesh Bank (BB).

Type of Banks Credit-deposit ratio (CDR) Inter-bank surplus deposits out of total (BDT bn)

State commercial banks 72.9% 45.8Private commercial banks 82.92% 29.92Foreign commercial banks 76.96% 0.32Of the 30 private commercial banks, only 9 included inter-bank deposits of over BDT 10 bn in their CDR.

NBR revenue receipts rise 14% in July, 2011Revenue receipts grew 14% to BDT 51.47 bn in July, 2011 of the current fi scal year compared to the same period a year ago, according to the data from National Board of Revenue (NBR). The rise in tax collection gives a boost to the government’s eff orts to generate more resources from domestic sources. The central tax administration collected BDT 45.34 bn in July, 2011.

BB’s operational profi t rises 95% in FY 2010-11The prudent use of foreign exchange reserve did particularly pay hefty dividends to the country’s central bank, leading to a high growth of Bangladesh Bank’s (BB) profi ts at over 95% in the last fi scal year (FY) that ended on June 30, 2011. BB earned BDT 25.17 bn as profi ts in FY 2010-11 against BDT 12.88 bn of the previous one. Income from foreign sources increased by 126.15% to BDT 9.64 bn in FY 2010-11 from BDT 4.26 bn of the previous fi scal year. BB’s earnings from domestic sources rose to BDT 19.41 bn in the last fi scal from BDT 12.16 bn in FY 2009-10. Besides, revaluation gains from gold, sliver and foreign currency stood at BDT 74.38 bn in FY 2010-11. There was a defi cit of BDT 19.32 bn in the previous fi scal on account of this.

BB advised to avoid fund mismatch through raising borrowers’ equityBangladesh Bank (BB) has advised the commercial banks to avoid fund mismatch through enhancing borrowers’ equity or accessing foreign funds for long-term fi nancing. Term loans by banks to industries have been growing strongly. According to BB’s January-March 2011 quarterly report, these loans are being funded mainly by short-term deposits leading to the widening of asset-liability maturity mismatch, The report also suggested that the banks could ask their borrower- entrepreneurs to increase their equity and/or to access foreign borrowing for at least parts of their needs to keep this mismatch within a manageable level.

Sales of savings certifi cates drop in 2010-11Sales of National Savings Certifi cates (NSCs) in 2010-11 fi scal dropped by nearly BDT 95.34 bn compared to the previous year because of the tax imposed by the government on profi ts from savings schemes. Net sales of NSCs stood at BDT 20.569 bn in 2010-11 compared to BDT 115.91 bn in 2009-10 fi scal. The sales of the certifi cates in the last fi scal were 77% less than the target set at BDT 74.77 bn.

Default loans continued to rise in the second quarter by BDT 6.43 bn or 2.66% due to sluggish activities in the industrial sector and unhealthy competition among some private banks. On June 30, 2011, banks recorded default loans of BDT 243.84 bn of their outstanding loans, up from BDT 237.52 bn on March 30, 2011 according to Bangladesh Bank (BB) statistics. In the fi rst quarter of the current year, default loans rose by BDT 10.43 bn or 4.59%. In percentage, however, default loans went down slightly because of a rise in outstanding loans. On June 30, 2011 the total amount of default loans was 7.14% of their outstanding loans down from 7.27% in March 2011. Default loans of all private

commercial banks, state-owned commercial banks and foreign commercial banks increased, except for the specialised banks, but the rise was the highest among the private banks. However, default loans of all the private banks, except two, were low below 5%.

In June, 2011 default loans of the state banks rose by BDT 1.25 bn compared to March, 2011 according to the central bank statistics. Such loans in state banks increased by BDT 5.92 bn and in the foreign banks by BDT 0.37 bn. But default loans of the specialised banks went down by BDT 1.24 bn during the same period compared to that in March, 2011.

Default loans on the rise


Total Number of cell phone users is crossed 78 mn in July, 2011The number of mobile phone subscribers in the country reached 78.07 mn in July, 2011, a surge by about 1.64 mn in one month, according to the data of Bangladesh Telecom Regulatory Commission (BTRC). The telecom regulatory body showed that the total number of mobile phone subscribers was 76.43 mn in June 2011. Government has earned BDT 30.61 bn from the telecommunication sector last fi scal year, a 29% rise from a year earlier.

Service Provider New Subscriber Addition in July 2011

[In mn]

Total Subscribers at the end of July 2011

[In mn]GrameenPhone 0.59 34.41 Banglalink 0.87 21.07 Robi 0.16 14.64 Airtel 0.05 5.10 CityCell (0.01) 1.72 Teletalk (0.01) 1.13 Total 1.64 78.07

REGULATORY NEWS

l b f ll h

Agriculture CreditDisbursement of agricultural credit in July, ■2011 stood lower at BDT 5.48 bn compared to BDT 8.77 bn in July, 2010

However, recovery of agricultural credit in ■July, 2011 stood higher at BDT 19.15 bn compared to BDT14.2 bn in July, 2010

The position of overdue agricultural ■credit as percentage of total outstanding improved, decreased to 27.42% at the end of July, 2011 from 29.57% at the end of July, 2010

The Securities and Exchange Commission (SEC) decided that the face value of shares of all companies and units of all mutual funds would have to be converted to BDT 10 from December 01, 2011. Of the 231 companies listed with the Dhaka Stock

Exchange (DSE), currently 124 companies have shares of BDT 100 face value and the remaining 107 companies have shares of BDT 10 face value. Of 36 listed mutual funds, 14 have units of BDT 100 face value, and one has units of BDT 1. The commission

took the decision to set a uniformed face value of shares and mutual fund units in line with a recommendation made by the fi nance ministry and a suggestion of the probe committee on the January, 2011 stock market crash.

Face value of shares, MF units to turn to BDT 10 from December, 2011

BB moves to better monitor NBFIBangladesh Bank (BB) has started strict monitoring of non-bank fi nancial institutions (NBFIs) as their involvement in the fi nancial market is on the rise. In this regard, BB sent three circulars to the NBFIs on August 04, 2011. BB has also taken a fresh move to enact a new law to impose various restrictions regarding tenure and number of directors of the NBFIs like that in banks.

1. According to the circular no. DFIM-08 regarding submission of top-10 defaulter statement: BB has asked the NBFIs to send a list of top 10 loan defaulters every three months. Presently the central bank collects such lists only from banks.

2. According to the circular no. DFIM-09 regarding submission of statement of fi led and settled suit in Artha Rin Adalat and other court: BB has decided to collect information regarding such cases fi led by the NBFIs.

3. According to the circular no. DFIM-13 regarding setting up of Complaint Cell in head offi ce of the fi nancial institutes: BB also asked all fi nancial institutions to set up “complaint cells” to receive complaints from the customers and ensure their speedy disposal. BB has directed them to form the cells within the next one month and send the names and particulars of the offi cials posted in the cells.

8.785.48

9.749.2911.2611.64

8.88

19.15

12.28

9.79

9.1314.68

7.57

6.11


Disbursement Recovery

Disbursement & Recovery of Agri Credit (USD in bn)


Major Currency Exchange RatesCurrency BC Sell

BDT

TT Buy

BDTUSD 74.30 73.30EUR 108.66 104.69GBP 122.61 118.52AUD 80.42 76.37JPY 1.04 0.95CHF 94.05 89.16SEK 12.19 11.30CAD 77.44 73.97HKD 9.55 9.38SGD 63.39 60.52AED 20.40 19.88SAR 19.92 19.44DKK 14.88 13.79KWD 269.17 264.01

Exchange Rate of Some CurrenciesCurrency Currency

Per USDBDT per Currency

INR 45.88 1.61PKR 87.45 0.84LKR 109.9 0.67THB 30.01 2.46MYR 2.98 24.76

Source: Standard Chartered Bank

EXCHANGE AND FORWARD RATES:(As on August 29, 2011)

MARKET ROUNDUPCall money rate hits 20% to meet cashdemand in Aug. 2011The inter-bank call money rate ranged between 18% and 20% on August 29, 2011 and from 15% to 20% on August 28, 2011 as withdrawal of cash from banks gathered pace ahead of the Eid-ul-Fitr festival. The call rate ranged between 15% and 20% on August 25, 2011 against the previous range between 6.75% and 12%.

Bangladesh Taka on the riseBangladesh Taka (BDT) has continued to appreciate signifi cantly against the US dollar on the 4th week of the month August, 2011 as the infl ow of the foreign currency increased in the market. The local currency gained by 1.09% against the greenback in between August 22-24, 2011. The US dollar was quoted at BDT 73.45-73.85 in the inter-bank foreign exchange market on August 24, 2011 against BDT 74.40-74.53 on August 18, 2011 according to Bangladesh Bank statistics.

WEEKLY CURRENCY ROUNDUP (August 28-31, 2011)Global Markets, Standard Chartered Bank

Money MarketCall money rates on August 29, 2011 ranged around 20% due to a tight liquidity scenario before eid.

Foreign Exchange MarketLocal: Interbank USD/BDT rates jumped on August 29, 2011 on back of strong and tighter liquidity scenario. The USD/BDT rate has clawed back much of the losses from the previous week.

International: The dollar fell against a basket of major currencies on August 29, 2011 with traders speculating the Federal Reserve may off er more stimuli next month in the face of an uncertain growth outlook. The euro rose to a 2-month high helped by the softer dollar and a strong rally in euro/Swiss franc.

Foreign Exchange Operation Department of Bangladesh Bank (BB) on August 02, 2011 directed the Authorised Dealer (AD) banks to ensure payment of 0.5% fees to Shippers’ Council Bangladesh as freight brokerage charge. According to the Guidelines for Foreign Exchange Transaction (Chapter 10), the shipping agents and clients of the banks should deposit the 0.5% money as freight brokerage charge in favor of Shippers’ Council Bangladesh. The recent BB circular says, if the AD banks keep the amount of SCB payment, they have to attach the related documents to clear the payment and inform the Foreign Exchange Operation Department timely. And also, if any bank pays the charges without any receipt, they have to send all the documents with the receipt of charge payment to the central bank.

BB asks banks to pay freight brokerage charges to Shippers’ Council

BB caps interest rate on fertilizer import fi nanceBangladesh Bank advised all commercial banks not to charge more than 14% interest on fi nancing for fertilizer import. This move was meant to ensure adequate supply of fertilizer in the market by cutting import costs of the agriculture input.


Debt crisis: Global markets plunge as eurozone contagion speads

Asia lacks social benefi ts despite growth: ADB

Debt crisis in Europe caused fall in stock markets both in the United States and Asian countries. Growing disarray in the eurozone over the Greek bailout, poor US manufacturing fi gures and a warning from Wall Street bank Morgan Stanley that the US and Europe are “hovering dangerously close to recession” triggered sell-off s on both sides of the Atlantic. Financial markets went into meltdown amid fears that the world economy is sliding back into recession. In New York, the Dow Jones traded nearly 1% down after a hefty 2.2% drop on August 3, 2011, as offi cial fi gures showed a fall in US consumer spending for the fi rst time in nearly two years. UK stock market plunges 2% to seven-month low as global investors run scared over U.S. and euro-zone debt crises. Other European fi nancial indexes followed suit, with the French

stock market falling by 3.9%, the German by 3.4%, the Spanish by 3.89% and the Italian by 5.16%. In America, the impact of the eurozone debt crisis was exacerbated by a slowdown in the country’s manufacturing and services sector, suggesting that the economic recovery has stalled. Concerns have been raised over the security of the US’s AAA credit rating, which is facing the prospect of a downgrade, and weak consumer spending data added to the bleak American picture. Asian markets had also lost ground overnight, with Japan’s Nikkei closing down 2.1% and Hong Kong’s Hang Seng down 1.9%. The global uncertainty prompted a retreat to defensive stocks and safe-haven investments - including gold, which hit another record high, and the Swiss franc.

Most Asian economies have not done enough to provide good jobs and adequate social benefi ts for their people, despite rapid economic growth over 20 years, according to Asian Development Bank (ADB) on August 23, 2011. It also included that, poor social provision and the tensions it often produces could hamper the region’s long-term growth prospects urging countries to tap their high savings to improve social safety nets. Asia grew an average 6.4% per year between 1990 and 2008, much faster than the rest

of the world, including developed countries in the OECD, which expanded by an average 1.8% in the same period. The growth has led to a higher number of Asians fi nding jobs and 150 mn people being hauled out of poverty. But job creation and poverty reduction have been very uneven across the region. ADB also said the region remains home to most of the world’s poor with more than 40% of most developing countries’ populations living below the poverty threshold of USD 2 a day.

INTERNATIONAL

Financial Sector PricesTreasury Bill/Bond Auction InformationAuction Date

Tenure & Name

of the SecuritiesSale Value (in BDT mn)

Weighted

Average Yield (%)23-Aug-11 91 days T. Bill 3,436.60 7.4025-Aug-11 182 days T. Bill 2,831.98 7.6525-Aug-11 364 days T. Bill 2,271.11 7.902-Aug-11 5 years T. Bond 2,940.00 8.309-Aug-11 10 years T. Bond 3,000.00 9.5016-Aug-11 15 years T. Bond 147.00 9.6523-Aug-11 20 years T. Bond 150.00 10.25

The lending rate of scheduled banks stood ■higher at 12.40% in June 2011 as compared to 12.17% in May, 2011. The deposit rate of scheduled banks also stood higher at 7.26% in June, 2011 as compared to 7.24% in May, 2011.

The weighted average call money rate in the ■inter-bank money market decreased to 10.54% in 21 August, 2011 as compared to 11.21% in July, 2011.

The weighted average yield on 30-Day Bangladesh ■bank bill remained unchanged at 3.50% in November, 2010 as it was in October , 2010


Economic OverviewUS economy grew at an annual rate of 1% in the second ■quarter from the fi rst quarter of 2011. Gross domestic product expanded only a feeble 0.4% in the fi rst quarter. US economy faces 30% chance of second dip. The chances of the US economy slipping into another recession have risen signifi cantly and now stand at 30%. Even if the United States avoids a recession, the economists see economic growth at a sluggish 2.5% next year, down from 3.1% in April, 2011 survey. The economy must grow above 3% to signifi cantly cut unemployment. As a result, the economists predict the jobless rate will fall slowly, dipping only to 8.8% in the next 12 months. The estimated unemployment would be 8.2% by mid-2012.

Japan’s core consumer price index rose 0.1% in July, 2011 ■ from a year earlier, according to the ministry of internal aff airs and communications. The reading for July, 2011 which excludes volatile fresh food prices, came on the back of a 0.2% year on year decline logged a month earlier and exceeded median economists’ forecasts for a 0.1% retraction.

China is still facing high infl ation pressure. ■ In the middle of August, 2011, a Chinese state think tank forecast that China’s average infl ation rate is likely to accelerate in the third quarter to 6.2% from 5.7% in the previous quarter, warning that food price pressures would persist.

India’s annual infl ation slowed in July, 2011 ■ but remained near double digits, making further interest rate hikes likely despite global economic uncertainty. Infl ation, according to the benchmark wholesale price index, slipped to 9.22% in July, 2011 from June’s 9.44%, mainly due to a fall in food prices, while May’s infl ation rate was revised up to 9.6% from 9.1%.

Euro-area infl ation fell unexpectedly to an annual rate of ■2.5% in July, 2011. In June prices were 2.7% higher than a year earlier. The European Central Bank has twice raised interest rates this year to return infl ation to its target of just under 2%.

Eurozone growth slides to 0.2%The eurozone posted meagre 0.2% growth in the second quarter on August 16, 2011, dragged down by a rapid decline in German performance and a stagnant France economy. Moving in the opposite direction from the United States and Japan, which both logged steady improvement, Eurostat’s preliminary estimate showed the eurozone slowing from 0.8% growth in the fi rst three months of 2011. Its powerhouse economy, Germany, saw growth collapse spectacularly from a downward-revised 1.3% to a meagre 0.1% expansion. France, the eurozone’s second largest economy, reported that its growth stalled in the second quarter, following 0.9% in the fi rst. Italy and Spain, each under pressure on bond markets with the European Central Bank being forced to step in to reduce lending rates, logged only 0.3% and 0.2% growth respectively. Analysts polled by Dow Jones had forecast 0.3% growth across the single currency area of 330 mn people. Another eurozone powerhouse, the Netherlands, saw a similarly sharp contraction in its rate of growth, from 0.8% to the same 0.1% level as Germany. Notable eurozone exceptions were triple-A rated Austria, which held up at 1% growth, and Finland, which logged 1.2%. Belgium, a country without a stable government for more than a year, posted 0.7% growth. The 27-member European Union as a whole posted the same 0.2% growth rate in the second quarter.

Japan economy shrank less than thought after quakeJapan’s economy shrank less than expected in the April-June quarter of 2011 fuelling hopes that its recovery from March, 2011 quake and tsunami disasters is on track. Japan’s economy shrank an annualised 1.3% in the fi rst full quarter since the nation’s worst post-war disaster, beating bleak market expectations of a 2.7% contraction. On-quarter, Japan’s gross domestic product (GDP) shrank by 0.3% in April-June, after a 0.9% contraction in the January-March period and shrinkage of 0.6% in the previous quarter. Exports plunged by an annualised 18.1% in the second quarter, when tsunami damage to factories in Japan’s northeast still hobbled supply chains, especially in the crucial auto and electronics sectors. As the scale of the disaster weighed on the nation, private consumer spending, nearly two-thirds of Japan’s GDP fell 0.1% on-quarter. However, rebuilding eff orts also stimulated the economy. Government consumption rose 0.5% and public investment increased 3% due to relief and reconstruction projects for the quake-hit areas.

Commodity News Gold price touches USD 1,900 ■ before retreating. Gold climbed to an all-time high for a fourth straight session on August 23, 2011 as investors continued to worry about the health of the global economy, while industrial metals were propelled by data showing China’s factory output remains robust. The precious metal is headed for a 7th straight session of gains and a monthly rise of more than 16%, the highest since September 1999.


Commodity Unit Price on August 26, 2011

(USD/unit)

Price on July 29, 2011 (USD/unit)

Change

+/(-)

Crude Oil Barrel 85.37 95.70 -10.79%

Platinum Ounce 85.37 95.70 -10.79%

Palladium Ounce 1,812 1,779 1.85%

Gold Ounce 747 824 -9.34%

Silver Ounce 1,788.00 1,628.50 9.79%

Nickel Tonne 41 40 3.61%

Tin Tonne 21,148.00 24,522.50 -13.76%

Lead Tonne 23,501 28,025 -16.14%

Aluminium Tonne 2,463 2,695 -8.60%

Zinc Tonne 2,367.80 2,640.00 -10.31%

Copper Tonne 2,216 2,505 -11.54%

Source: Internet

Markets Index

Aug 31st

2011

% Change onOne

Week

Dec 31st 2010In local currency

In USD

United States (DJIA) 11,613.5 +2.6 +0.3 +0.3

United States (S&P 500) 1,218.9 +3.5 -3.1 -3.1

United States (NAScomp) 2,579.5 +4.5 -2.8 -2.8

Japan (Nikkei 225) 8,955.2 +3.7 -12.5 -7.1

China (SSEA) 2,689.1 +1.0 -8.5 -5.5

Britain (FTSE 100) 5,394.5 +3.6 -8.6 -4.9

Canada (S&P TSX) 12,768.7 +3.4 -5.0 -3.5

Germany (DAX) 5,784.9 +1.8 -16.3 -10.2

Hong Kong (Hang Seng) 20,534.9 +5.5 -10.9 -11.0

India (BSE) 16,676.8 +2.4 -18.7 -21.0

Pakistan (KSE) 11,070.6 +1.2 -7.9 -9.6

Singapore (STI) 2,885.3 +6.1 -9.6 -3.6

Source: The Economist

International Commodity Prices International Market Movement

International Economic Forecast

Year on year percentage changeGDP CPI

2010 2011 2012 2010 2011 2012

Global (PPP Weight) 4.90% 3.70% 3.80% 4.20% 5.30% 4.40%

Global (Market Exchange Rates) 3.70% 2.50% 2.60% n/a n/a n/a

Advanced Economies1 2.90% 1.60% 2.10% 1.50% 2.80% 2.10%

United States 3.00% 1.70% 1.90% 1.60% 2.90% 2.40%

Eurozone 1.70% 1.90% 1.80% 1.60% 2.50% 1.90%

United Kingdom 1.40% 1.10% 1.70% 3.30% 4.30% 2.50%

Japan 4.00% -0.70% 2.20% -0.70% 0.30% 0.20%

Korea 6.20% 4.20% 4.00% 3.00% 4.10% 3.20%

Canada 3.20% 2.80% 2.60% 1.80% 2.70% 2.20%

Developing Economies 7.30% 6.10% 5.80% 7.60% 8.30% 7.20%

China 10.40% 9.30% 8.60% 3.30% 5.70% 4.30%

India 8.50% 7.40% 7.80% 12.10% 8.50% 7.00%

Mexico 5.00% 4.00% 4.20% 4.20% 3.20% 3.70%

Brazil 7.50% 4.20% 4.30% 5.00% 6.50% 4.70%

Russia 4.00% 4.40% 3.60% 6.90% 8.90% 8.00%

Forecast as of August 10, 2011 1Aggregated using PPP weightSource: Wells Fargo Securities, LLC


Rewards and RecognitionsGreen Delta Insurance Company Limited received “Bizz ■Award-2011” in USA on August 23, 2011 from Nicolas Caff aro, Director of World Business Confederation of Businesses, USA

(WORLDCOB). WORLDCOB hosts this programme each year to honor the business organizations of the world for their quality and services.

Management Change - Banks & FIsOrganization Position NameInvestment Corporation of Bangladesh Chairman S M Mahfuzur RahmanBank Asia Limited MD Md Mehmood HusainGrameen Bank MD Mohammad ShahjahanAB Bank Limited MD M Fariduddin AhmedPrime Bank Limited MD Md Shirajul Islam MollahCity Bank Capital Resources Limited MD Ershad Hossain

NEWS IN BRIEFBusiness - Firm Specifi c CSR Activities In The MonthIFIC Bank signs deal with Bangladesh Bank ■ for utilizing the central bank’s fund in the Small Enterprise Sector. Under the agreement, IFIC Bank Limited will avail re-fi nancing facility from a revolving fund of the central bank worth BDT 6 bn for the development of small enterprise sector.Green Delta LR Financial Services Limited has signed an agreement ■with InGen Technology Limited to be the mandated lead arranger to raise a long-term loan of BDT 720 mn from local and overseas debt markets. Syed Moinuddin Ahmed, Managing Director of Green Delta LR Financial Services Limited; Waqar A Choudhury, Director, and Asif Mahmood, Chairman of InGen, inked the deal at a programme in Dhaka.BRAC Bank Limited has arranged a syndicated project fi nancing ■ of BDT 1,092.5 mn for City Seed Crushing Industries Limited. The project is an expansion of City Group’s existing seed crushing facilities, located in Rupshi, Narayanganj. The project will produce crude edible oil and also oil cakes to meet huge demand of raw materials of feed for poultry, fi sh and cattle farms. The project will be a step forward for developing backward linkage for import-dependent edible oil and feed industry as well. Standard Chartered launches special services for young ■professionals to serve them with one-stop services more conveniently. The preferred banking product will off er a range of diff erentiated services, including dedicated relationship manager, preferential queues, a platinum debit card with enhanced withdrawal and retail spending and a pre-approved credit card.

HSBC Amanah, ■ the Shariah compliant banking service from the world’s leading international bank, has organized a ‘Joy of Giving’ campaign during the month of Ramadan. The campaign included collecting books, toys, clothes and other non-cash gift items for underprivileged children through special “Boxes of Hope” placed at all HSBC branches in Bangladesh. Also included in the campaign were charity Iftaars in diff erent towns and cities organized for street children and orphans. Prothom Alo Bondhushobha, Jaago Foundation and ActionAid are HSBC’s partners in this endeavour. At the fi rst phase of distributing collected items, an HSBC team led by CEO Sanjay Prakash met underprivileged children at a facility run by Jaago Foundation in the Korail slum area of Dhaka recently. Over 160 kids received toys, cloths, books and other accessories as their Eid gifts.

Western Marine Shipyard ■ launched a tree plantation programme in its yard on August 02, 2011. The shipbuilder will plant 1,000 trees in phases in the yard.

Bangladesh Post Offi ce’s software wins prestigious mBillionth AwardBangladesh Post Offi ce’s (BPO’s) software for Electronic Money Transfer Service (EMTS) won the prestigious ‘mBillionth Award South Asia 2011’ on August 03, 2011 for providing money transfer service through mobile phone. Apart from wining the

award under m-business and commerce/banking category, the EMTS service was also marked as the most innovative digital service in the entire South Asia in the mBillionth International Mobile and Telecom Congress and Award Gala in New Dilhi.


IDLC NEWS

Upcoming EventsEvent Period Location

Destination Bangladesh Expo-2011 16-17,September, 2011 LondonGerman Trade Show 2011 27-29 October, 2011 Dhaka, BangladeshDutch Trade Fair 2011 27-29 October, 2011 Dhaka, Bangladesh

Note: The information in this and the preceding pages has been compiled from press reports and miscellaneous publicly available sources unless otherwise specifi ed. The authenticity and correctness of the information has not been verifi ed.

Management Change - Other org.Organization Position NameBangladesh Employers' Federation President Md Fazlul HoqueRupali Insurance Company Limited. Chairman Mostafa Golam QuddusAgrani Insurance Company Limited Chairman Mahmudul HoquePeoples Insurance Company Limited Chairman Golam Faruk AhmedRupali Insurance Company Limited Chairman Mostafa Golam QuddusGlobal Insurance Limited Chairman RA HowladerHomeland Life Insurance Company Limited Chairman (Re-elected) Major (retd) Mohammad JahangirRupayan Group CEO KM AliGermanischer Lloyd (GL) Bangladesh Limited MD A K M Masud KarimGMG Airlines Limited CEO Sanjiv Kapoor

IDLC Group opened its 27th branch in Tongi on August 09, 2011. The new branch off ers a range of SME & Personal Financial products such as Term Loans, Lease Finance Services, Women Entrepreneur Loan, Commercial Vehicle Loan, Supplier Finance Services, Home Loans, Car Loans, Personal Loans and attractive Deposit schemes. H. M. Ziaul Hoque Khan, General Manager & Chief Financial Offi cer and Zahid Ibne Hai, Head of SME Division were present at the opening ceremony. IDLC began operations in 1985 and is currently the largest multi-product non-banking fi nancial institution in Bangladesh with 810 staff and a broad range of Corporate, SME, Personal and Capital Market products.

IDLC Opened New Branch in Tongi

IDLC organized a day long training program on “Let’s Get Ready for the Corporate Environment” for new entrants and sales team-PFD on July 15, July 29 and July 30, 2011. A total 75 participants

attended the training session in three diff erent groups. The training was conducted by Mr. Rubaiyat A. Tanzeen (trainer of BDjobs.com) to help our executives to groom up themselves properly.

IDLC organized a day long training program


IDLC Finance Limited has formed another subsidiary company named “IDLC Investments Limited”

As per requirement of the Securities & Exchange Commission (SEC), IDLC Finance Limited has formed a subsidiary company under the name and style of “IDLC Investments Limited” duly incorporated in the Offi ce of the Registrar of Joint Stock Companies & Firms, Bangladesh. The authorized and paid-up capital of IDLC Investments Limited are BDT 3 bn and BDT 400 mn respectively with due approval from the Securities and Exchange Commission, Bangladesh.

IDLC Investments Limited has taken over the business, operation and services of Merchant Banking Division of IDLC Finance Limited that has been eff ective from August 16, 2011. The conversion and transfer of the activities of Merchant Banking Division of IDLC Finance Limited to IDLC Investments Limited shall not, in any way, change/alter the status of any contract which has been executed

between the Merchant Banking Division of IDLC Finance Limited and portfolio investors, issuer companies, listed brokers and other relevant parties, and will also not aff ect any right or obligation attached thereto. IDLC Investments Limited shall be the successor in title and interest of all rights and obligations of the Merchant Banking Division of IDLC Finance Limited. All present Portfolio Investors and Customers/Clients of Merchant Banking Division of IDLC Finance Limited shall be treated as portfolio investors and Customers/Clients of IDLC Investments Limited henceforth.

IDLC Investments Limited as a subsidiary company of IDLC Finance Limited shall keep the existing offi ce location(s), telephone, facsimile numbers, email addresses and other modes of communication for the convenience of the investors, customers etc.

Customized training program on “Business Leadership ‒ Becoming Management Material” A two day customized training program on “Business Leadership ‒ Becoming Management Material” was organized on July 24-25, 2011 at Pinnacle LLP’s offi ce, Banani. The training was conducted by Dr. Samir Asaf, CEO Pinaccle LLP. This was a comprehensive course for a total number of 25 midlevel management that provides the necessary overview and guidelines essential for managerial success.

Subscribe online to IDLC’s Monthly Business Review in our new website (www.idlc.com)!We are glad to inform our valued readers that IDLC’s Monthly Business Review is now available on our newly upgraded website. Please visit us at www.idlc.com and subscribe online to get your copy every month!


CAPITAL MARKET REVIEWThe market continued its bearish trend that started in late July throughout August, with decreased investor participation. SEC’s declaration of legal moves against suspected investors acted as a catalyst behind the downtrend leaning. Ramadan was also a contributing factor as money moved from the capital market to other areas of the economy. With persistent decline in index and daily turnover, DGEN ended at 6,211.99 with an average daily turnover of BDT 5,670.07 million.

The depressed mode of market was right from the beginning of the month, as investors panicked from SEC’s vow to legal actions against suspected investors. The dread was visible with a more than 50% drop of daily turnover, from BDT 13,412 mn on July 31 to BDT 6,186 mn by August 4, the very fi rst week of the month. Meanwhile market showed a small resistance on august 3, basically from SEC’s less stringent positioning on legal actions, coupled up with fi nancials disclosure of mutual funds and investor hope.

The decline continued, although at a slower pace, over the following weeks of the month. As Eid‒Ul-Fitr came closer,

fund was withdrawn from the market, resulting declining daily turnover. And similar to previous years, market had a bearish trend throughout Ramadan, both in movement of index and turnover. Trading activity bottomed on August 23, with turnover falling to 2,856.46 mn, lowest since 21 January 2011. Interestingly, market showed a good resistance at DGEN near 6000.

However, in the last two trading days of August, market saw a slight increase in activity, as the 9-day long closure (August 26th to September 3rd) of the bourse made investors taking some speculative actions for the post Eid opening. With this little jump in the end of August, DGEN reached to 6,211.99 with trading volume reaching 5,452.19 mn

Corporate activities were on the wane, apart from BEXIMCO continuing its acquisition activities in the textile industry. Lafarge Surma Cement was fi nally able to continue importing limestone from its subsidiary, as the Indian High court passed judgment in Lafarge’s favor. IPO activities, however, continued to be on the wane in August.

Monthly Market StatisticsIndex Movement (August 2011) Market Statistics (August, 2011) Index Point Change % Change YTD change

DSI 5,195.68 -184.41 -3.43% -26.33%

DSE-20 4,190.47 -74.17 -1.74% -21.30%

DGEN 6,212.00 -247.63 -3.83% -26.93%

Advance/Decline (August, 2011) Advanced Declined Unchanged

All Category 34 211 6

Unit 25-Aug-11 31-Jul-11 % Change

Mcap (All)Mn BDT 2,957,858 3,032,653 -2.47%

Mn USD 40,270 41,289 -2.47%

Mcap (Equity)Mn BDT 2,379,109 2,468,079 -3.60%

Mn USD 32,391 33,602 -3.60%

TurnoverMn BDT 5,452 13,413 -59.35%

Mn USD 74 183 -59.35%

Top Ten Gainers’ List (August, 2011)Top Ten Gainers 25-Aug-11 31-Jul-11 % Change

LAFSURCEML 630.25 501.75 26%

DSHGARME 619.50 532.00 16%

MONNOCERA 907.50 824.75 10%

SAMATALETH 211.75 194.00 9%

BDAUTOCA 516.75 475.50 9%

ALLTEX 241.25 225.50 7%

CITYBANK 618.75 593.25 4%

DULAMIACOT 331.00 318.75 4%

BANKASIA 521.25 502.50 4%

ICBISLAMIC 361.00 348.25 4%

Top Ten Losers’ List (August, 2011)Top Ten Losers 25-Aug-11 31-Jul-11 % Change

FEDERALINS 66.90 184.90 -64%

ILFSL 718.00 1282.50 -44%

NATLIFEINS 4419.75 7420.75 -40%

UNITEDAIR 32.00 51.60 -38%

AIMS1STMF 6.99 10.06 -31%

PF1STMF 9.40 12.70 -26%

EASTRNLUB 430.00 572.60 -25%

SQURPHARMA 2700.50 3542.00 -24%

MJLBD 145.30 184.70 -21%

NAVANACNG 127.90 162.00 -21%


Top Ten Mkt Cap BDT (mn) % Change GP 242,649 -5.22%ICB 92,644 0.78%TITASGAS 78,054 0.18%SQURPHARMA 68,870 -0.89%NBL 61,516 -1.52%ISLAMIBANK 55,318 2.89%BSRMSTEEL 44,170 -6.82%UCBL 38,048 -4.74%LAFSURCEML 36,598 25.61%PRIMEBANK 35,793 -3.57%

Top Ten Market Capitalization (August, 2011) Market Capitalization (FY2010 & FY2011)

DSE Turnover (BDT in mn) (FY2010 & FY2011)

Lowest P/E Lowest Price/BVISLAMIBANK 7.88 POPULAR1MF 76%DHAKABANK 8.95 PHPMF1 76%NBL 9.55 GREENDELMF 77%BRACBANK 10.27 8THICB 78%ONEBANKLTD 10.67 TRUSTB1MF 79%RNSPIN 10.86 PRIME1ICBA 79%ALARABANK 10.87 IFIC1STMF 79%SOUTHEASTB 10.88 IFILISLMF1 80%BANKASIA 11.11 1JANATAMF 80%PRIMEBANK 11.18 SEBL1STMF 80%

Top Ten (Value)

25-Aug-11 31-Jul-11 % Change Value(mn BDT)

BEXIMCO 3,629 GP 179.70 189.60 -5.22% 3,050 RNSPIN 94.50 107.90 -12.42% 2,885 UNITEDAIR 32.00 51.60 -37.98% 2,807 KEYACOSMET 111.40 113.60 -1.94% 2,650 MALEKSPIN 67.30 71.00 -5.21% 2,581 LAFSURCEML 630.25 501.75 25.61% 2,371 MICEMENT 191.80 204.20 -6.07% 2,308 TITASGAS 828.50 827.00 0.18% 2,094 NBL 71.50 72.60 -1.52% 2,029

Lowest P/E and Lowest P/BV ratioTop Ten by Value (August, 2011)

Recent Corporate DeclarationCompany name Record Date AGM Date SD* CD** Rights Split

EBL First Mutual Fund 21-Aug-11 - - 21% - -

Trust Bank First Mutual Fund 21-Aug-11 - - 18% - -

IFIC Bank First Mutual Fund 21-Aug-11 - - 15% - -

1st Janata Bank Mutual Fund 21-Aug-11 - - 9% - -

DBH First Mutual Fund 23-Aug-11 - - 17% - -

Barakatullah Electro Dynamics Ltd. 24-Aug-11 22-Sep-11 20% - - -

Pragati Life Insurance Ltd. 25-Aug-11 15-Sep-11 12% - - -

*SD = Stock Dividend **CD = Cash Dividend

(USD in bn)

Jan-10 Feb-10 Arp-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Jul-11

60,000

55,000

50,000

45,000

40,000

35,000

30,000

25,000


Sector Value in mill Tk. % of Total Trade Industry Cap Forward PE Trailing PE Price/BV

Bank 1,103.98 20.76% 31.64% 14.13 12.34 12.13

Textile 553.05 10.40% 3.14% 30.92 28.12 11.38

Fuel & Power 512.54 9.64% 12.28% 34.03 28.76 7.98

Pharma 498.52 9.37% 8.26% 31.13 25.92 6.20

Engineering 374.87 7.05% 5.42% 17.08 17.92 7.10

Mutual Fund 325.96 6.13% 1.07% n/a n/a n/a

NBFI 325.08 6.11% 12.05% 30.57 24.62 15.84

Cement 305.40 5.74% 2.20% 26.20 35.28 22.12

General Ins. 263.16 4.95% 3.33% 34.48 30.86 14.83

Miscellaneous 242.76 4.56% 1.15% 31.90 32.70 4.05

Travel & Leisure 161.89 3.04% 0.63% 21.48 21.48 31.84

Tele 152.36 2.86% 10.82% 17.93 19.20 5.05

Food 148.92 2.80% 2.10% 25.33 23.05 3.29

Ceramic 85.93 1.62% 1.61% 34.22 39.37 4.02

Life Insurance 75.15 1.41% 2.22% n/a n/a n/a

Service 42.98 0.81% 0.85% 224.81 28.46 10.99

IT 29.64 0.56% 0.20% 56.36 56.36 2.82

Tannery 15.47 0.29% 0.64% 23.17 16.97 3.99

Corporate Bond 5.45 0.10% 0.31% n/a n/a n/a

Jute 0.83 0.02% 0.03% 93.69 31.03 9.27

Paper & Printing 0.50 0.01% 0.04% 40.42 41.66 3.75

Average 5,319.11 25.12 21.29 10.02

Sector Indicators (August, 2011)

Emerging Market StatisticsCountry Name

Index NameMarket P/E (31.08.2011)

Yield (%) (31.08.2011)

Index

01.08.2011 31.08.2011 Monthly Return(August, 2011) 2011 High 2011 Low

Hong-kong Hang Seng 9.7 3.4% 22663.37 20534.85 -9.39% 24468.64 18868.11

India BSE Sens 16.2 1.4% 18314.33 16676.75 -8.94% 20664.80 15765.53

Indonesia Jakarta Comp 16.2 2.3% 4193.44 3841.73 -8.39% 4195.72 3309.62

Malaysia FTSE Bursa KLCI 14.9 3.4% 1558.01 1447.27 -7.11% 1597.08 1423.47

Pakistan KSE 100 8.3 6.4% 12253.39 11070.58 -9.65% 12768.40 10760.91

Phillipines Manila Comp 22.0 2.4% 4550.53 4348.50 -4.44% 4563.65 3705.18

Srilanka CSE All Share 24.5 1.7% 6854.14 6879.29 0.37% 7863.74 6413.11

Taiwan Weighted Pr 13.0 4.3% 8701.38 7741.36 -11.03% 9220.69 7148.76

Thailand Bangkok SET 12.4 3.3% 1144.14 1070.05 -6.48% 1148.28 937.06Source : www.world-exchanges.org / www.market.ft.com


Pharmaceuticals Sector AnalysisSector Summary**Company Name DSE Code Mkt Price*

(BDT)No. of Shares (in mn)

Mkt Cap(in mn BDT)

Mkt Cap(in USD)

Free Float

GSK ltd GLAXOSMITH 986.90 12.04 9,870.86 134.39 18%Pharma Aids Limited PHARMAID - 0.31 807.07 10.99 56%KEYA COSMETICS KEYACOSMET 118.50 61.15 6,763.46 92.08 66%Kohinoor chemical KOHINOOR 2,364.50 0.50 1,140.00 15.52 59%LIBRA INFUSIONS Ltd LIBRAINFU 4,111.25 0.13 504.71 6.87 50%MARICO BD MARICO 538.10 31.50 15,334.20 208.77 10%

* Mkt price as of August 25, 2011

Relative Value MetricsDSE Code P/E P/BV P/CF

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

GSK ltd - 51.61 27.82 26.98 33.80 - 2.97 4.65 8.42 10.89 - 27.16 60.12 19.24 22.53Pharma Aids Ltd. - - - - - - - - - - - - - - -Keya Cosmetics 9.50 11.24 20.55 26.83 22.54 1.67 2.37 3.39 4.22 5.64 (16.31) (13.06) 23.34 9.96 259.46Kohinoor chemical - - - - - - - - - - - - - - -Libra Infusions Ltd - - 19.73 - - - - 1.51 - - - - 5.32 - -MARICO BD - - - 30.53 28.73 - - - 11.89 10.30 - - - 21.08 13.71

Un-audited quarterly results declared in AugustDSE Code Profi t

(BDT mn)EPS (BDT)

APEXSPINN 3.97 4.72

SINOBANGLA 5.67 0.57

SQURPHARMA 974.80 49.69

Yearly Profi t declarationsin August

DSE CodeLatest Financial YearProfi t(BDT mn)

EPS (BDT)

AIMS1STMF 168.39 0.51

APEXFOODS 10.79 18.93

BEDL 164.12 2.32

MONNOCERA 30.19 18.64 MONNOJTX 1.88 26.05 POPULAR1MF (5.50) -

Un-audited half yearly results declared in AugustDSE Code Profi t

(BDT mn)EPS (BDT)

AGRANINS 12.24 6.74 BDTHAI 56.84 13.83 BDWELDING 2.81 0.13 BEACHHATCH 50.48 1.78 BERGERPBL 357.92 15.44 BGIC 44.67 0.97 BIFC (46.03) (8.32)CENTRALINS 30.26 13.47 CMCKAMAL 25.43 1.11 CONTININS 30.18 14.88 EBL 1,120.14 2.47 EXIMBANK 510.95 0.55 GLOBALINS 23.09 11.56 GOLDENSON 237.07 2.23 JANATAINS 10.27 12.63 KARNAPHULI 46.49 1.26 NCCBANK 812.19 1.37

DSE Code Profi t(BDT mn)

EPS (BDT)

NITOLINS 26.89 16.00 NORTHRNINS 35.73 16.08 NTC (49.53) (75.05)PHENIXINS 66.28 2.16 PIONEERINS 59.53 25.40 PRIMEINSUR 29.19 1.09 PROVATIINS 14.80 8.81 PURABIGEN 4.71 6.48 RUPALIBANK 675.48 49.13 SAFKOSPINN 10.63 5.73 SALVOCHEM 22.99 9.46 SAPORTL 102.72 0.85 SONARBAINS 13.55 7.47 STANDBANKL 424.04 10.44 UCBL 874.47 1.29 UTTARABANK 853.18 2.97 UTTARAFIN 424.64 5.74

Forthcoming IPO under Fixed Price MethodName of the issue

Sponsors’ Equity and Pre-IPO paid up capital (BDT mn)

IPO Amount (BDT mn) Public Off er (in unit) Date for subscription

Zahintex Industries Limited 250.00 500.00 2,000,000 18-22 September 2011


Per Share (BDT)DSE Code Basic EPS BVPS (On Avg. Net Worth)

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

GSK ltd (1.42) 3.74 11.87 26.88 34.05 65.83 64.99 71.04 86.16 105.63Pharma Aids Limited 131.74 - - - - 153.32 - - - -KEYA COSMETICS 2.78 3.40 3.14 3.01 5.26 15.80 16.13 19.04 19.11 20.99Kohinoor chemical - - 7.49 - - - - 83.32 - -LIBRA INFUSIONS Ltd - - 51.25 34.93 - - - 671.70 680.41 -MARICO BD - - 29.70 14.95 21.43 - - 94.20 38.39 59.78

Financial PerformanceDSE Code Net Profi t after Tax (NPAT) (BDT in mn) Operating Income (BDT in mn)

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010GSK ltd (17.12) 45.05 142.95 323.79 410.18 (10.23) 79.06 212.63 431.86 535.60Pharma Aids Limited 6.85 - - - - 8.86 - - - -KEYA COSMETICS 66.70 97.84 90.56 86.61 151.38 155.43 181.02 160.03 79.24 82.71Kohinoor chemical - - 31.72 38.35 - - - 57.29 73.03 -LIBRA INFUSIONS Ltd - - 6.41 4.37 - - - 28.30 27.95 -MARICO BD - - 267.29 470.87 675.11 - - 413.14 494.97 755.96

Financial PerformanceDSE Code ROE (%) Average Shareholder's Equity (BDT in mn)

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010GSK ltd -2% 6% 17% 31% 32% 793.05 782.88 855.79 1,037.96 1,272.43Pharma Aids Limited 86% - - - - 7.97 - - - -KEYA COSMETICS 18% 21% 17% 16% 25% 379.23 464.69 548.22 550.40 604.60Kohinoor chemical - - 9% 11% - - - 352.84 351.65 -LIBRA INFUSIONS Ltd - - 8% 5% - - - 84.07 85.16 -MARICO BD - - 32% 39% 36% - - 847.84 1,209.27 1,882.96

Financial PerformanceDSE Code ROA(%) Average Shareholder's Equity (BDT in mn)

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010GSK ltd -2% 4% 12% 21% 21% 1,041.90 1,039.72 1,215.41 1,531.93 1,957.89Pharma Aids Limited 12% - - - - 57.10 - - - -KEYA COSMETICS 7% 9% 9% 9% 15% 927.81 1,049.35 1,008.06 981.96 1,037.88Kohinoor chemical - - 3% 4% - - - 1,013.80 1,081.31 -LIBRA INFUSIONS Ltd - - 2% 1% - - - 305.65 365.19 -MARICO BD - - 18% 23% 22% - - 1,489.49 2,012.59 3,137.85

Following table exhibits the open-end mutual funds (3) in order of YTD change in NAV. Two open-end funds, managed by ICB AMCL, had NAV above face value, while one managed by PAMC had NAV below face value. On the basis of NAV, among the open-end Mutual Funds, ICB AMCL Pension Holder’s Unit Fund performed relatively better, adding 0.03% over the week.

Weekly (August 21 - 25, 2011) Update on Open-end Mutual Funds

Sl No.

Name of Mutual Funds Initial Fund Size (BDT mn)

Re-Purchase Price

Selling Price

Eff ective Date*

NAV % Change in NAV from last week

Annualized %Change in NAV during 2011

Fund Manager

1 ICB AMCL Pension Holders' Unit Fund 100 234 239 16-Aug-11 234.12 0.03% 0.72% ICB AMCL2 Prime Financial First Unit Fund 200 97 100 7-Sep-11 97.8 0.00% -1.51% PAMC3 ICB AMCL Unit Fund 100 261 266 16-Aug-11 261.28 0.05% -2.30% ICB AMCL

* For ICB AMCL, eff ective date is the date from which repurchase price, selling price and NAV are applicable. For PAMC, eff ective date is the date until which repurchase price, selling price and NAV are applicable.


Weekly (August 21 - 25, 2011) update on closed-end Mutual FundsFollowing table exhibits the closed-end mutual funds (36) in order of YTD change in NAV based on latest NAV/unit as on 25 August 2011. On the basis of Price/NAV, 25 mutual funds out of 36 were traded below their respective NAV. POPULAR1MF and PHPMF1 had the lowest Price/NAV and were traded at 25% and 24% discount respectively. GRAMEEN1 and AIMS1STMF were traded at higher multiple than others, 89% and 49% respectively. Last week, NAV of 21 Mutual Funds decreased, while rest 15 Mutual Funds increased. On the other hand, price of 26 Mutual Funds decreased, 4 increased while 6 remained unchanged. On an average, price of mutual funds decreased by 3.94% while NAV decreased by 1.62% from previous week, against a positive 1.54% change in DGEN over the week. In terms of price changes, 3 Mutual funds outperformed DGEN over last week. Among all the asset managers, BDBL outperformed most in terms of change in NAV of its funds, adding an additional 0.9% on an average over mutual funds managed by it.

DSE Code Name of Mutual Funds

Price(August25, 2011)*

Latest NAV/unit

Price/NAV

%Change of Price from last week

%Change in NAV from last week

YTD Change in NAV

Performance against DGEN

"Redemp-tion Year"

"Fund Manager"

AIMS1STMF Aims 1st M.F. 6.99 4.69 149% -22.07% 0.21% 22.77% Outperformed 2015 AIMS

SEBL1STMFSoutheast Bank 1st Mutual Fund

8.60 10.75 80% -1.15% 0.09% 2.97% Outperformed 2021 VIPB

EBLNRBMFEBL NRB MUTUAL FUND

9.20 10.53 87% -4.17% 0.77% 2.53% Outperformed 2021 RACE

RELIANCE1RELIANCE ONE MUTUAL FUND

10.20 10.55 97% -2.86% 0.09% 0.38% Outperformed 2021 AIMS

MBL1STMFMBL 1st Mutual Fund

7.60 10.01 76% -5.00% 0.81% 0.30% Outperformed 2021 LR Global

AIBL1STIMFAIBL 1st Islamic Mutual Fund

8.20 10.09 81% -1.20% 0.50% -0.59% Outperformed 2021 LR Global

POPULAR1MFPopular Life First Mutual Fund

7.60 10.07 75% 1.33% 0.70% -3.82% Outperformed 2020 RACE

PHPMF1PHP First Mutual Fund

7.30 9.64 76% 0.00% 0.84% -4.08% Outperformed 2020 RACE

1JANATAMFFirst Janata Bank Mutual Fund

8.20 10.30 80% -8.89% 0.49% -4.36% Outperformed 2020 RACE

IFIC1STMFIFIC Bank 1st Mutual Fund


TRUSTB1MFTrust Bank 1st Mutual Fund


EBL1STMFEBL First Mutual Fund

12.50 14.51 86% -17.76% -0.27% -6.69% Outperformed 2019 RACE

IFILISLMF1IFIL Islamic Mutual Fund-1

7.20 8.96 80% -1.37% -0.88% -10.13% Outperformed 2019 ICB AMCL

GRAMEENS2Grameen One : Scheme Two

22.60 19.38 117% -13.08% -0.36% -10.61% Outperformed 2016 AIMS

GREENDELMFGreen Delta Mutual Fund

7.30 9.58 76% 0.00% 0.52% -11.13% Outperformed 2020 LR Global

DBH1STMFDBH First Mutual Fund

12.80 12.07 106% -4.48% 0.58% -11.45% Outperformed 2019 LR Global

GRAMEEN1Grameen Mutual Fund One

99.70 52.71 189% -17.67% 0.04% -13.45% Outperformed 2015 AIMS

1STICB 1st ICB M.F. 9936.00 11007.71 90% -1.13% -1.57% -14.57% Outperformed 2011 ICB


DSE Code Name of Mutual Funds

Price(August25, 2011)*

Latest NAV/unit

Price/NAV

%Change of Price from last week

%Change in NAV from last week

YTD Change in NAV

Performance against DGEN

"Redemp-tion Year"

"Fund Manager"

1STBSRS1ST Bangladesh Shilpa Rin Sangstha M.F.

1449.00 1812.15 80% 1.86% 0.90% -20.42% Underperformed 2011 BDBL

ICBISLAMICICB AMCL Islamic Mutual Fund

361.00 270.06 134% -0.07% -1.04% -24.60% Underperformed 2014 ICB AMCL

ICB3RDNRBICB AMCL Third NRB Mutual Fund

8.80 9.01 98% 0.00% -1.21% -25.29% Underperformed 2019 ICB AMCL

PRIME1ICBAPrime Bank 1st ICB AMCL Mutual Fund


PF1STMFPhoenix Finance 1st Mutual Fund


ICB1STNRBICB AMCL 1st NRB Mutual Fund


ICBAMCL1ST ICB AMCL 1st M.F. 579.00 585.56 99% 5.75% -1.44% -26.71% Underperformed 2013 ICB AMCL

ICB2NDNRBICB AMCL 2nd NRB Mutual Fund


1STPRIMFMFPrime Finance First Mutual Fund


ICBEPMF1S1ICB Employees Provident MF 1: Scheme 1


3RDICB 3rd ICB M.F. 2470.00 2104.19 117% 0.00% -4.65% -28.22% Underperformed 2011 ICB

ICBAMCL2NDICB AMCL Second Mutual Fund


2NDICB 2nd ICB M.F. 3617.00 2834.79 128% 0.00% -3.43% -32.96% Underperformed 2011 ICB

6THICB 6th ICB M.F. 681.75 702.02 97% 3.02% -6.46% -34.77% Underperformed 2011 ICB

5THICB 5th ICB M.F. 1,568.00 1911.28 82% -0.27% -8.62% -34.98% Underperformed 2011 ICB

8THICB 8th ICB M.F. 680.00 816.55 83% -0.33% -6.92% -35.72% Underperformed 2011 ICB

4THICB 4th ICB M.F. 2220.00 2223.46 100% -0.59% -4.48% -37.52% Underperformed 2011 ICB

7THICB 7th ICB M.F. 1146.00 1127.50 102% 0.00% -6.39% -37.65% Underperformed 2011 ICB


Investment Terminologya) Market Sentiment

The feeling or tone of a market. It is shown by the activity and price movement of securities. For example, rising prices would indicate a bullish market sentiment. A bearish market sentiment would be indicated by falling prices.

b) Market Timing

The act of attempting to predict the future direction of the market, typically through the use of technical indicators or economic data. Some investors, especially academics, believe it is impossible to time the market. Other investors, notably active traders, believe strongly in market timing. Thus, whether market timing is possible is really a matter of opinion.

c) Financial Crisis

A situation in which the value of fi nancial institutions or assets drops rapidly. A fi nancial crisis is often associated with a panic or a run on the banks, in which investors sell off assets or withdraw money from savings accounts with the expectation that the value of those assets will drop if not withdrawn.

d) Paper Profi t (Paper Loss)

Unrealized capital gain (or capital loss) in an investment. It is calculated by comparing the market price of a security to the original purchase price. Gains or losses only become realized when the security is sold.

e) Synergy

The idea that the value and performance of two companies combined will be greater than the sum of the separate individual parts. This term is used mostly in mergers and acquisitions. For example, if Company A has an excellent product but poor distribution whereas Company B has a great distribution system but poor products, the companies could create synergy with a merger.

f) Financial Structure

The specifi c mixture of long‒term debt and equity that a company uses to fi nance its operations. This fi nancial structure is a mixture that directly aff ects the risk and value of the business. Also referred to as capital structure.

Source: www.investopedia.com

Selected DSE News of the monthDSE CODE NEWS

BANKASIA SEC has accorded approval vide its letter dated August 23, 2011 to the Bank for raising paid up capital through issuance of 10,509,581 Ordinary Shares of BDT 100 each at par totaling BDT 105,09,58,100 off ered on the basis of 1R:4 (i.e. 1 Rights Share for every 4 shares held). The purpose of the proposed rights issue is to strengthen the capital base of the Bank and to comply with the Capital Adequacy Requirements (CAR) under Basel II Capital Accord.

BEDL Board of Directors of the company has taken the following decision: (1) To convene an Extra- Ordinary General Meeting (EGM) and pass a Special Resolution for incorporating the following object clause in the Memorandum of Association of the Company subject to the approval in the 7th EGM and with the permission of the Honorable High Court Division of the Supreme Court of Bangladesh on petition under-section 13 of the Companies Act, 1994 necessary steps shall be taken to insert the following Object clause iii (36) in the Memorandum of Association of the company after Clause iii (35); "to give guarantee to any scheduled Bank or fi nancial institution or any party as standing surety of repayment of any loan and/or any credit facility payable by any associate or subsidiary company or companies and/or any third party as the case may be, with whom the company has any business relation and also to mortgage, charge, hypothecate, lien or encumber otherwise the immovable and movable properties including but not limited to land, building, plant, machinery, shares, stocks, debentures, FDR etc. of the company to any scheduled Bank or fi nancial institution as security of loan(s) and/or any credit facility(s) sanctioned/to be sanctioned by them to any associate or subsidiary company or companies and/or any party with whom the company has any business relation." and (2) To approve utilization of the IPO proceeds as per recommendation of the Board of Directors: (a) Payoff term loan of BDT 738.74 mn out of net IPO proceeds


DSE CODE NEWS

of BDT 1,138.74 mn and (b) Rest amount i.e. BDT 400 mn invest to Baraka Patenga Power Limited (Subsidiary of the Company) as Share Capital. Date of 7th EGM: September 22, 2011. Time of EGM: 1:00 PM, Venue of the EGM: Sunrise Community Center, Pathantula, Sylhet-3100. Record Date of the EGM: August 24, 2011

BEXIMCO Board of Directors of the company has approved the following: (1) Issuance of upto USD 350 m., Foreign Currency Convertible Bonds (FCCB) to be issued by the Company on such terms and conditions (including a coupon rate and conversion price) to be fi xed at the time of issue thereof, which would convert into a maximum of upto 100 m. ordinary shares of the company, subject to: (a) the approval of Shareholders in an EGM (b) the approval of Board of Investment, Bangladesh Bank and SEC; (c) Satisfactory legal and accounting due diligence by Jones Day and Ernst & Young who have been appointed for this purpose and (2) The funds so raised shall be utilized for meeting capital expenditure for expansion programs, working capital and repayment of debts

BEXIMCO Board of Directors of the Company has approved the following:- 1. Issuance of 16,490,463 ordinary shares of BDT 10 each of the Company amounting to BDT 164,904,630 for acquisition of all shares of International Knitwear & Apparels Limited, Beximco Fashions Limited, Crescent Fashion and Design Limited and Freshtex Bangladesh (Pvt) Limited and the Lands and Building of Beximco Engineering Limited including BEL Tower, subject to approval of the Shareholders in an EGM; and the Consent of the SEC under rule 3 of the Securities and Exchange Commission (Issue of Capital of Companies) Rules, 2001 read together with section 155(2) of the Companies Act, 1994, 2. Increase in the Authorised Capital of the Company from BDT 5 bn divided into 50,00,00,000 ordinary shares of BDT 10 each to BDT 10 bn divided into 100,00,00,000 Ordinary Shares of BDT 10 each by amending Clause-V of the Memorandum of Association and Article-4 of the Articles of Association of the Company, 3. Inclusion of the following new Article 122A, after existing Article 122, to the Articles of Association of the Company:- "122A The Directors may appoint in addition to or in place of Managing Director, Chief Executive Offi cer (CEO), Chief Operating Offi cer (COO) and/or Chief Financial Offi cer (CFO) of the Company or its Division or Units on such terms and conditions and for such period as decided by the Directors. The CEO, COO or CFO may or may not be a Director of the Company. The CEO, COO or CFO shall exercise such authorities, and be responsible for such duties, as decided by the Directors." and 4. Inclusion of some new objects to the Object Clause of the Memorandum of Association of the Company, subject to approval of the Shareholders in an EGM; and confi rmation of the High Court Division of the Supreme Court of Bangladesh under section 13 of the Companies Act, 1994. The EGM of the Company will be held on September 15, 2011 at 10:00 AM at the Beximco Industrial Park, Sarabo, Kashimpur, Gazipur. The Record Date for the EGM will be August 25, 2011

BSC Board of Directors of the company has decided the following: (1) to re-fi x the off er price for its Repeat Public Off ering (RPO) at BDT 500 with face value of BDT 100 each for increasing the paid-up capital by public issue of BDT 627.4 mn through RPO and (2) Government equity of Tk. 2.67 bn will be converted into shares along with premium.

FAREASTLIF As per un-audited half yearly accounts as on June 30, 2011 (Jan' 11 to June' 11), the Company has reported an increase in life insurance fund of BDT 1,275.36 mn with total life insurance fund of BDT 14,804.87 mn as against BDT 925.48 mn and BDT 10,207.64 mn respectively for the same period of the previous year. Whereas increase in life insurance fund was BDT 1,020.47 mn for the period of 3 months (Apr' 11 to June' 11) ended on June 30, 2011 as against BDT 657.93 mn for the same period of the previous year.

MONNOCERA Board of Directors of the company has taken the following decision: (1) Considered the proposal of merger of Monno Jutex Industries Limited and Monno Printing and Packaging Limited with Monno Ceramic Industries Limited eff ective from July 1, 2011 subject to approval from all legal/regulatory authorities; (2) approved the Scheme of Amalgamation, determining the exchange ratio of the ordinary share of Monno Jutex Industries Limited and Monno Printing and Packaging Limited with that of Monno Ceramic Industries Limited at 0.39 share of Mormo Jutex Industries Limited; and 2.69 shares of Monno Printing and Packaging Limited for 1 share of Monno Ceramic Industries Limited as determined by the Valuer, Messrs Ata Khan & Co., Chartered Accountants; and (3) also approved the Draft Petition of Monno Ceramic Industries Limited and Monno Jutex Industries Limited and Monno Printing and Packaging Limited for submission to the High Court Division of the Supreme Court of Bangladesh for Amalgamation of these companies under section 228 read with section 229 of the Companies Act, 1994 as drawn up by the Legal Counsel, Messrs Huq & Co., Barristers and Advocates.


This document has been prepared and issued by IDLC on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst all reasonable care has been taken to ensure that the facts stated here are accurate as on the date of this document, neither IDLC nor any of its directors, management, or employees shall, in any way, be responsible for the contents and no representation or warranty, expressed or implied, is made as to their accuracy, completeness, and correctness. IDLC endeavours to update the information provided in this document on a reasonable basis. However, IDLC has no obligation to inform the recipients when such changes occur. This document is for general information of the stakeholders of IDLC. It does not solicit any action based on the materials contained and should not be construed as an off er or solicitation to buy, sell, or subscribe to any security. This document or any information contained herein shall not form the basis of or be relied upon in connection with any contract or commitment whatsoever. All investors are strongly advised to take professional advice regarding any investment decision.

DISCLAIMER

DSE CODE NEWS

MONNOJTX Board of Directors of the company has taken the following decision: (1) Considered the proposal of merger of Monno Jutex Industries Limited and Monno Printing and Packaging Limited with Monno Ceramic Industries Limited eff ective from July 1, 2011 subject to approval from all legal/regulatory authorities; (2) approved the Scheme of Amalgamation, determining the exchange ratio of the ordinary share of Monno Jutex Industries Limited and Monno Printing and Packaging Limited with that of Monno Ceramic Industries Limited at 0.39 share of Mormo Jutex Industries Limited; and 2.69 shares of Monno Printing and Packaging Limited for 1 share of Monno Ceramic Industries Limited as determined by the Valuer, Messrs Ata Khan & Co., Chartered Accountants; and (3) also approved the Draft Petition of Monno Ceramic Industries Limited and Monno Jutex Industries Limited and Monno Printing and Packaging Limited for submission to the High Court Division of the Supreme Court of Bangladesh for Amalgamation of these companies under section 228 read with section 229 of the Companies Act, 1994 as drawn up by the Legal Counsel, Messrs Huq & Co., Barristers and Advocates

MONNOJTX Honorable High Court Division of the Supreme Court of Bangladesh has passed an Order on August 23, 2011- "(a) admitting the Petition of Monno Ceramic Industries Ltd. for amalgamation of Monno Jutex Industries Ltd. and Monno Printing and Packaging Ltd. with Monno Ceramic Industries Ltd. and for approval of the draft Scheme of Amalgamation of Monno Jutex Industries Ltd. and Monno Printing and Packaging Ltd. with Monno Ceramic Industries Ltd. for the purpose of section 228 read with section 229 of the Companies Act, 1994 b) directing the Company to convene an EGM of its Shareholders for approving with or without modifi cation the aforesaid Draft Scheme of Amalgamation on September 30, 2011 and for fi ling the same before the Hon'ble High Court Division within October 07, 2011 and (c) fi xing the case for hearing before the Hon'ble High Court Division on October 09, 2011."

NATLIFEINS As per un-audited half yearly accounts as on June 30, 2011 (Jan' 11 to June' 11), the Company has reported an increase in life insurance fund of BDT 1,349.62 mn with total life insurance fund of BDT 18,980.14 mn as against BDT 1,336.22 mn and BDT 15,375.46 mn respectively for the same period of the previous year. Whereas increase in life insurance fund was BDT 807.42 mn for the period of 3 months (Apr' 11 to June' 11) ended on June 30, 2011 as against BDT 660.26 mn for the same period of the previous year.

PRAGATILIF As per un-audited half yearly accounts as on June 30, 2011 (Jan' 11 to June' 11), the Company has reported an increase in life insurance fund of BDT 89.18 mn with total life insurance fund of BDT 2,208.28 mn as against BDT 416.23 mn and BDT 1,927.46 mn respectively for the same period of the previous year. Whereas increase in life insurance fund was BDT 38.41 mn for the period of 3 months (Apr' 11 to June' 11) ended on June 30, 2011 as against BDT 268.59 mn for the same period of the previous year.

PRIMELIFE As per un-audited half yearly accounts as on June 30, 2011 (Jan' 11 to June' 11), the Company has reported an increase in life insurance fund of BDT 381.61 mn with total life insurance fund of BDT 3,760.49 mn as against BDT 435.40 mn and BDT 2,693.57 mn respectively for the same period of the previous year. Whereas increase in life insurance fund was BDT 230.66 mn for the period of 3 months (Apr' 11 to June' 11) ended on June 30, 2011 as against BDT 272.65 mn for the same period of the previous year.

PROGRESLIF As per un-audited half yearly accounts as on June 30, 2011 (Jan' 11 to June' 11), the Company has reported an increase in life insurance fund of BDT 263.37 mn with total life insurance fund of BDT 2,267.42 mn as against BDT 248.95 mn and BDT 1,659.69 mn respectively for the same period of the previous year. Whereas increase in life insurance fund was BDT 169.66 mn for the period of 3 months (Apr' 11 to June' 11) ended on June 30, 2011 as against BDT 185.14 mn for the same period of the previous year.

BRANCH NETWORK OF IDLC FINANCE LIMITED

BRANCH NETWORK OF IDLC SECURITIES LIMITED

BRANCH NETWORK OF IDLC INVESTMENTS LIMITED

IDLC OFFICES AND BRANCHES

IDLC FINANCE LIMITEDCorporate Head OfficeBay’s Galleria (1st Floor)57 Gulshan AvenueGulshan 1, Dhaka 1212Tel : +880 (2) 883 4990

IDLC SECURITIES LIMITEDHead Office36, Dilkusha C/A (13th Floor)Dhaka 1000Tel: +880 (2) 957 1842

IDLC INVESTMENTS LTD.Head OfficeEunoos Trade Centre (Level 21) 52-53 Dilkusha C/A, Dhaka 1000 Tel: +880 (2) 957 1170

DILKUSHA BRANCHEunoos Trade CentreLevel 13, 52-53 Dilkusha C/ADhaka 1000.Tel : +880 (2) 9560111

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SYLHET BRANCHCasablanca (2nd Floor) 982 Dargah GateSylhet 3100Tel: +880 (821) 283 2461-3

DHANMONDI BRANCHMunicipal Holding No. 405/C (3rd & 4th floor)Road No. 27 (old), 16 (new)Dhanmondi R/A, Dhaka-1209Tel: +88-02-9102991-3

MIRPUR BRANCHKhan Plaza (1st Floor)Plot No. 6, Main Road No. 1Mirpur 10, Dhaka 1216Tel: +880 (2) 805 1845

TONGI BRANCHBanesa Complex (Ground Floor)26, Anarkoli RoadTongi BazarTongi, Gazipur.

DHANMONDI BRANCHHouse # 39A (3rd Floor) Road # 14A, DhanmondiDhaka 1209Tel: +880 (2) 815 7632

GULSHAN BRANCHTaj Marriot (1st Floor)25 Gulshan AvenueDhaka 1212Tel: +880 (2) 9886837

UTTARA BRANCHMonsur Complex (2nd Floor)Plot 59/A, Road 7, Sector 4Uttara Model Town, Dhaka 1230Tel: +880 (2) 8932340

KERANIGANJ BRANCHA.K Tower, Nagar Mahal RoadNadidhara IspahaniEast AgarnagarSouth Keraniganj, Dhaka 1310

IMAMGANJ SME BOOTH75 Midfort Road (2nd Floor)ImamganjDhaka 1100Tel: +880 (2) 7343766-7

NARSHINGDI BRANCHT Hussain Tower, Holding # 382Kalibari Road, Narshingdi BazarNarshingdiTel: +880 (2) 945 2075-76

NARAYANGANJ BRANCHSattar Tower (Ground Floor)50 S.M. Maleh RoadTanbazar, Narayanganj 1400Tel: +880 (2) 764 8213-4

GAZIPUR SME BOOTHRahmat Tower (2nd Floor)Holding No. 1034, OutparaJoydebpur, Gazipur 1700Tel: +88 (02) 926 3505

SAVAR BRANCHAlam Plaza (2nd Floor)122/B Jaleshwar, SavarDhaka 1340Tel: +880 (2) 774 4961-3

CHITTAGONG BRANCHJahan Building 4, (Ground Floor)76/77 Agrabad C/AChittagong 4100Tel: +880 (31) 711 034

NANDANKANON BRANCHA.K. Mansion (1st Floor)Holding No. 17 J.C. Guha RoadNandankanon, Chittagong 4100Tel: +880 (31) 612 732

BOGRA BRANCHSairul Complex (2nd Floor)Sherpur Road, SutrapurBogra 5800Tel: +880 (51) 69917

COMILLA BRANCHNasir Center (2nd Floor)437 Nazrul AvenueKandirpar, Comilla 3500Tel: +88 (081) 64907-8

GULSHAN BRANCHSouth Avenue Tower (5th floor)House No. 50, Unit No. 502Road No.-3, 7 Gulshan AvenueDhaka 1212Tel: +880 (2) 988 3898

DOHS MOHAKHALI BRANCHHouse No. 109, Park RoadBlock A, New DOHSMohakhali, Dhaka 1206Tel: +880 (2) 8715081

UTTARA BRANCHMonsur Complex (4th Floor)Plot # 59/A, Road # 7, Sector # 4Uttara, Dhaka 1230Tel: +880 (2) 895 9392 + 880 (2) 895 9046

BANANI BRANCHCaldwell Center (2nd floor)Plot- 54, Road-11, Block CBanani, Dhaka – 1213Tel: +88-02-8826031

GAZIPUR BRANCHRahmat Tower (2nd Floor)Holding No. 1034Mouza Outpara, GazipurTel: +880 (2) 926 3503

NARAYANGANJ BRANCHSattar Tower (Ground Floor)Municipal Holding No. 50S.M. Maleh Road, TanbazarNarayanganj 1400Tel: +880 (2) 763 2891

CHITTAGONG BRANCHAyub Trade Centre (6th Floor)1269/B Sk. Mujib RoadAgrabad C/A, Chittagnong 4100Tel: +880 (31) 251 4051

KHATOONGONJ BRANCHM.H No. 3/ARamjoy Mohajan Lane, (5th floor)Khatungonj, Kotwali, ChittagongTel: +88 (031) 2866491-3

SYLHET BRANCHCasablanca (2nd Floor)982 Dargah GateSylhet 3100Tel: +88 (0821) 2832461-4

PEOPLES INSURANCEBHABAN BRANCH36 Dilkusha Commercial Area (13th floor), Dhaka 1000Tel: +880 (2) 957 1842

BANANI BRANCHCaldwell Center (2nd floor), Plot- 54, Road-11, Block C, Banani, Dhaka 1213 Tel: +88-02-8826031, 8826048

DHANMONDI BRANCHHouse # 405/C (3rd & 4th Floor) 24/C Sk. Kamal Sarani (New)Road # 27 (Old) 16, (New).Dhanmondi R/A, Dhaka-1209Tel: +880-2- 9102991-3

UTTARA BRANCHMonsur Complex (4th floor)Plot # 59/A, Road # 7Sector # 4, Uttara, Dhaka 1230Tel: + 880 (2) 8959392, 8959046

CHITTAGONG BRANCHAyub Trade Centre (6th floor) 1269/B Sk. Mujib RoadAgrabad Commercial AreaChittagong 4100Tel: +880 (31) 251 4051-52

KHATOONGONJ BRANCHM.H No. 3/ARamjoy Mohajan Lane, (5th floor) Khatoongonj, P.S. Kotwali Chittagong 4100Tel: +88-031- 2586491-3

GAZIPUR BRANCHRahmat Tower (2nd Floor)Holding No. 1034Mouza: Outpara, GazipurTel: +880-9263503, 9263505

DOHS MOHAKHALI BRANCHHouse No. 109, Park Road Block: A, New DOHS MohakhaliDhaka 1206 Tel: +880 (2) 8715081

GULSHAN BRANCHCapita South Avenue Tower(5th Floor), House No. 50Unit: 502 , 7 Gulshan AvenueDhaka 1212 Tel: +880 (2)-988 3898, 988 9861

MOTIJHEEL DMEx BRANCHPeople Insurance Building (13th foor)36 Dilkusha, Dhaka-1000Tel: +880 (2) 9571842

SYLHET BRANCHCasablanca (2nd Floor) 982 Dargah Gate, Sylhet 3100Tel: +880 (821) 283 2461-3

Recycle NewspaperEach time we recycle a three-foot stack of newspaper,

we could save250 million trees each year

it saves a tree. If we all recycled our newspapers,

monthly business review - august 2011

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