Monthly Business Review - August 2011

Volume 7 Issue 08 August 2011
Industry and Equity Analysis Team

Credit Risk Management
IDLC Finance Limited
For Private Circulation Only
HIGHLIGHTS
ECONOMY
ADP spending improves in FY 2010-11 Inflation hits 3-year high in July, 2011 on soaring food prices 2 3
IDLC Investments Limited, a newly formed subsidiary, commences its operation from August 16, 2011 and takes over the business, operation and service of Merchant Banking Division of IDLC Finance Limited
See Page 14
TRADE
Trade deficit expands due to 4 soaring commodity prices Export earnings up by 28% 4 in July, 2011
BUSINESS
Credit-deposit ratio reaches safe limit in June, 2011 Sales of savings certificates drop in 2010-11 6 6
REGULATORY NEWS
BB moves to better monitor NBFI Face value of shares, MF units to turn to BDT 10 from December, 2011 7 7
INTERNATIONAL
Debt crisis: Global markets plunge as eurozone contagion speads Asia lacks social benefits despite growth: ADB 9
COMMODITY NEWS
Gold price touches USD 1,900 before retreating 10
IDLC NEWS
Subscribe online to Monthly 14 Business Review in our new website (www.idlc.com)!
CONTENTS
ECONOMY SELECTED ECONOMIC INDICATORS TRADE CATERGORY WISE EXPORT BUSINESS REGULATORY NEWS MARKET ROUNDUP EXCHANGE AND FORWARD RATES WEEKLY CURRENCY ROUNDUP TREASURY BILL/BOND AUCTION INFORMATION INTERNATIONAL INTERNATIONAL ECONOMIC FORECAST INTERNATIONAL COMMODITY PRICES INTERNATIONAL MARKET MOVEMENT NEWS IN BRIEF BUSINESS - FIRM SPECIFIC CSR ACTIVITIES IN THE MONTH REWARDS AND RECOGNITIONS MANAGEMENT CHANGE - BANKS & FIS MANAGEMENT CHANGE OTHER ORG. UPCOMING EVENTS IDLC NEWS CAPITAL MARKET REVIEW MONTHLY MARKET STATISTICS Index Movement (August, 2011) Advance/Decline (August, 2011) Market Statistics (August, 2011) Top Ten Gainers List (August, 2011) Top Ten Losers List (August, 2011) Top Ten by Value (August, 2011) Lowest P/E and Lowest P/BV ratio Top Ten Market Capitalization (August, 2011) Market Capitalization DSE TURNOVER AND DGEN RECENT CORPORATE DECLARATION SECTOR INDICATORS (AUGUST, 2011) EMERGING MARKET STATISTICS FORTHCOMING IPO UNDER FIXED PRICE METHOD YEARLY PROFIT DECLARATIONS IN AUGUST UN-AUDITED HALF YEARLY RESULTS DECLARED IN AUGUST UN-AUDITED QUARTERLY RESULTS DECLARED IN AUGUST PHARMACEUTICALS SECTOR ANALYSIS
2 2 4 4 6 7 8 8 8 9 9 11 11 11 12 12 12 12 12 13 13 13 15 15 15 15 15 15 15 16 16 16 16 16 16 17 18 18 18 18 18 18 19 20 22 22
Industry and Equity Analysis Team Credit Risk Management IDLC Finance Limited
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WEEKLY (AUGUST 21 - 25, 2011) UPDATE ON OPEN-END MUTUAL FUNDS WEEKLY (AUGUST 21 - 25, 2011) UPDATE ON CLOSED-END MUTUAL FUNDS INVESTMENT TERMINOLOGY SELECTED DSE NEWS OF THE MONTH
ECONOMY
ADP spending improves in FY 2010-11
The implementation of annual development programme (ADP) was better last scal year, rising by 27% compared to the previous year. In 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 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 scal 200910, 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.
Industrial credit growth boosts

Industrial credit, generally known as term loan, disbursement recorded a signicant rise by nearly 22% in the third quarter of the scal 2010-11 compared to the corresponding period in the previous 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.
USD 54.27 mn foreign aid received in July, 2011

Bangladesh received USD 54.27 mn as foreign aid during July of the current 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 scal was USD 1,777.33 mn, including USD 726.62 mn as grants and USD 1050.71 mn as credit.
Selected Economic Indicators

Item Foreign Exchange Reserve (USD) Workers Remittances (USD) Revenue Collection (BDT) Broad Money (M2) (BDT) Bank deposits (BDT) Bank credit (BDT) Total Domestic Credit (BDT) Credit to Private Sector (BDT) Excess Liquidity (BDT) Period/ As of Aug 11 Jul 11 Jul 11 Jun 11 May 11 May 11 Jun 11 Jun 11 Jul'11 Value/ bn 10.986 1.028 103 4,405 3,753 3,430 4,334 3,407 325 Period/ As of Aug'10 Jul'10 Jul 10 Jun 10 May 10 May 10 Jun 10 Jun 10 Jul 10 Value/ bn 10.992 0.857 86 3,630 3,076 2,717 3,402 2,708 331 +/(-)% -0.05% 19.93% 19.93% 21.34% 22.00% 26.26% 27.41% 25.84% -1.93%
Source: Selected Indicators: Weekly Update: August 24, 2011; Bangladesh Bank.
Ination hits 3-year high in July, 2011 on soaring food prices

Ination, which had remained at a double-digit level for the 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 ination in the current scal year has been continuously increasing on the back of soaring food prices. In January 2008, during the immediate past interim government, ination reached 11.43%, the highest single-month average ination in the country. The average rural ination rose to 11.09% in July, 2011 from 10.91% in June, 2011 The urban ination rose to 10.65% in July, 2011 from 8.33% in June, 2011 However, Ination accelerated faster in urban areas than in rural areas in July, 2011. overall ination increased 2.32 percentage points in urban areas, whereas, it increased 0.18 percentage points In rural areas Food ination 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 ination stood at 6.46%, in July, 2011 increasing from 4.15% in the same month of the previous year.
Consumer Price Index(CPI) and Rate of Ination at National Level (Base : FY96=100)
10.67% 9.04% 10.49% 9.79% 8.36% 8.14% 8.21% 8.54% 8.67% 8.88% 10.96% 10.20% 10.17% 9.11%
3.85% 4.36% 4.32% 3.97% 4.78% 11.91% 12.77% 13.87% 14.36% 13.16% 13.40% 6.46%
12.51% 5.73%
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Twelve month average basis
Point-to-Point Basis
Non-Food Inflation (point to point)
Food Inflation (point to point)
Rising trend in manpower exports

Bangladesh 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 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 sixmonth overseas recruitment number is 20% higher than what it was in the corresponding period of 2010.
Overseas Employment and Workers Remittances
4 TRADE
Trade decit expands due to soaring commodity prices

Country s overall trade decit widened more than 42% to USD 7.33 bn in the last 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 decit 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 signicantly in the last 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 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 scal. The widening trade gap, lower growth of remittance and decit balance in the nancial account has sent the country s overall balance of payments (BoP) into the negative territory (decit 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 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 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 akes around USD 3.21 mn in July, 2011, up by 86.63% from USD 1.72 mn fetched in July, 2010.
Catergory wise Export

Figures in USD mn
Item Knitwear Woven RMG Frozen Food Home Textile Leather Chemical Products Foot Wear Engineering Products Agricultural Products Raw Jute Others Total
Jul-11 1,007.88 888.00 58.69 64.33 29.30 13.95 38.51 27.40 34.40 19.77 157.29 2,339.52
Jul-10 798.66 671.28 44.93 42.41 24.01 12.54 26.31 22.79 28.66 9.74 136.48 1,817.81
Change +/(-) 26.20% 32.28% 30.63% 51.69% 22.03% 11.24% 46.37% 20.23% 20.03% 102.98% 15.25% 28.70%
Source: Export performance for the month of July, 2011-12; Export Promotion Bureau, Bangladesh
16 export sectors get BDT 18.40 bn cash subsidy in the scal 2010-11
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 scal year 201011. The table below shows the amount of incentives to some major export sectors in the last scal with apparel sector having the highest incentive:
Sector Apparel sector Frozen food Leather and leather goods Agriculture products Agro- processing Products made of 'hogla' and 'khor'
BDT mn 8,770 3,070 1,690 450 731 138
In the budget for 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 nance recently released BDT 11 bn to disburse among the export oriented sectors in the rst six months of the corrent scal.
Exports to Europe rise in scal 2010-11

Driven 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 scal compared to the scal 2009-10 year. In the 2010-11 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 gures of the Export Promotion Bureau (EPB). EPB gures show that: Exports to the UK totalled USD 2,065.38 mn during July-June period of last 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 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 scal 2009-10, showing a 47.52% growth. Exports to Italy totalled USD 866.42 mn in the last 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 gures. The Netherlands, another big export destination for Bangladesh, imported goods worth USD 1,107.13 mn during the last scal. This included knitwear USD 591.07 mn, woven garment USD 374.13 mn and frozen shrimp USD 62.19 mn.
Export Processing Zones (EPZs) Statistics

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

9% 5% 31% 21%
Employment in 8 EPZs - 2010-11 (Total Emplyment : 43,666)

39%
Export from 8 EPZs - 2010-11 (Total Export : USD 3,697.62 mn)

28% 5%
46% 52%
2% 12% 20% 0% Dhaka EPZ Mongla EPZ 5% Comilla EPZ
2% 1% 4% 4% 1% 0% Uttara EPZ Ishwardi EPZ 7% 1% 3% 2% Adamjee EPZ Karnaphuli EPZ
Chittagong EPZ
Imports grow by 38.6% in last scal followed by growth in July, 2011

Country 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 plantsrelated imports increased is August, 2011.
6 BUSINESS
NBR revenue receipts rise 14% in July, 2011

Revenue receipts grew 14% to BDT 51.47 bn in July, 2011 of the current 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 eorts to generate more resources from domestic sources. The central tax administration collected BDT 45.34 bn in July, 2011.
Credit-deposit ratio reaches safe limit in June, 2011

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 State commercial banks Private commercial banks Foreign commercial banks Credit-deposit ratio (CDR) 72.9% 82.92% 76.96% Inter-bank surplus deposits out of total (BDT bn) 45.8 29.92 0.32
BB s operational prot rises 95% in FY 2010-11

The 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) prots at over 95% in the last scal year (FY) that ended on June 30, 2011. BB earned BDT 25.17 bn as prots 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 scal year. BB s earnings from domestic sources rose to BDT 19.41 bn in the last 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 decit of BDT 19.32 bn in the previous scal on account of this.
Of the 30 private commercial banks, only 9 included inter-bank deposits of over BDT 10 bn in their CDR.
BB advised to avoid fund mismatch through raising borrowers equity

Bangladesh Bank (BB) has advised the commercial banks to avoid fund mismatch through enhancing borrowers equity or accessing foreign funds for long-term 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 certicates drop in 2010-11

Sales of National Savings Certicates (NSCs) in 2010-11 scal dropped by nearly BDT 95.34 bn compared to the previous year because of the tax imposed by the government on prots 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 scal. The sales of the certicates in the last scal were 77% less than the target set at BDT 74.77 bn.
Default loans on the rise

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 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.
Agriculture Credit
Disbursement & Recovery of Agri Credit
(USD in bn) 19.15
Disbursement 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
11.64 14.68 8.88 6.11 8.78 7.57
11.26 9.29 9.13 9.79
12.28
9.74
5.48
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Disbursement
Recovery
Total Number of cell phone users l b f ll h is crossed 78 mn in July, 2011

The 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 scal year, a 29% rise from a year earlier.
Service Provider
GrameenPhone Banglalink Robi Airtel CityCell Teletalk Total
New Subscriber Addition in July 2011 [In mn] 0.59 0.87 0.16 0.05 (0.01) (0.01) 1.64
Total Subscribers at the end of July 2011 [In mn] 34.41 21.07 14.64 5.10 1.72 1.13 78.07
REGULATORY NEWS
BB moves to better monitor NBFI
Bangladesh Bank (BB) has started strict monitoring of nonbank nancial institutions (NBFIs) as their involvement in the 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 led and settled suit in Artha Rin Adalat and other court: BB has decided to collect information regarding such cases led by the NBFIs. 3. According to the circular no. DFIM-13 regarding setting up of Complaint Cell in head oce of the nancial institutes: BB also asked all 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 ocials posted in the cells.
Face value of shares, MF units to turn to BDT 10 from December, 2011

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 nance ministry and a suggestion of the probe committee on the January, 2011 stock market crash.
BB asks banks to pay freight brokerage charges to Shippers Council

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 caps interest rate on fertilizer import nance

Bangladesh Bank advised all commercial banks not to charge more than 14% interest on 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.
MARKET ROUNDUP
WEEKLY CURRENCY ROUNDUP (August 28-31, 2011)
Global Markets, Standard Chartered Bank
Call money rate hits 20% to meet cash demand in Aug. 2011
The 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 rise

Bangladesh Taka (BDT) has continued to appreciate signicantly against the US dollar on the 4th week of the month August, 2011 as the inow 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 73.4573.85 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.
Money Market
Call money rates on August 29, 2011 ranged around 20% due to a tight liquidity scenario before eid.
Foreign Exchange Market

Local: 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 oer 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.
EXCHANGE AND FORWARD RATES:

Major Currency Exchange Rates Currency USD EUR GBP AUD JPY CHF SEK CAD HKD SGD AED SAR DKK KWD BC Sell BDT 74.30 108.66 122.61 80.42 1.04 94.05 12.19 77.44 9.55 63.39 20.40 19.92 14.88 269.17 TT Buy BDT 73.30 104.69 118.52 76.37 0.95 89.16 11.30 73.97 9.38 60.52 19.88 19.44 13.79 264.01 INR PKR LKR THB MYR (As on August 29, 2011) Exchange Rate of Some Currencies Currency Currency Per USD 45.88 87.45 109.9 30.01 2.98 BDT per Currency 1.61 0.84 0.67 2.46 24.76
Source: Standard Chartered Bank
Financial Sector Prices

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
Treasury Bill/Bond Auction Information

Auction Date 23-Aug-11 25-Aug-11 25-Aug-11 2-Aug-11 9-Aug-11 16-Aug-11 23-Aug-11 Tenure & Name of the Securities 91 days T. Bill 182 days T. Bill 364 days T. Bill 5 years T. Bond 10 years T. Bond 15 years T. Bond 20 years T. Bond Sale Value (in BDT mn) 3,436.60 2,831.98 2,271.11 2,940.00 3,000.00 147.00 150.00 Weighted Average Yield (%) 7.40 7.65 7.90 8.30 9.50 9.65 10.25
INTERNATIONAL
Debt crisis: Global markets plunge as eurozone contagion speads
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 gures and a warning from Wall Street bank Morgan Stanley that the US and Europe are hovering dangerously close to recession triggered sell-os 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 ocial gures showed a fall in US consumer spending for the 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 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 safehaven investments - including gold, which hit another record high, and the Swiss franc.
Asia lacks social benets despite growth: ADB

Most Asian economies have not done enough to provide good jobs and adequate social benets 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 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.
10
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 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 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 quake

Japan s economy shrank less than expected in the AprilJune 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 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 eorts 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.
Economic Overview
US economy grew at an annual rate of 1% in the second quarter from the rst quarter of 2011. Gross domestic product expanded only a feeble 0.4% in the rst quarter. US economy faces 30% chance of second dip. The chances of the US economy slipping into another recession have risen signicantly 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 signicantly 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 aairs 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 ination pressure. In the middle of August, 2011, a Chinese state think tank forecast that China s average ination 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 ination slowed in July, 2011 but remained near double digits, making further interest rate hikes likely despite global economic uncertainty. Ination, 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 ination rate was revised up to 9.6% from 9.1%. Euro-area ination 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 ination to its target of just under 2%.
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.
11
International Economic Forecast

GDP Year on year percentage change Global (PPP Weight) Global (Market Exchange Rates) Advanced Economies1 United States Eurozone United Kingdom Japan Korea Canada Developing Economies China India Mexico Brazil Russia
Forecast as of August 10, 2011 Source: Wells Fargo Securities, LLC
CPI 2012 3.80% 2.60% 2.10% 1.90% 1.80% 1.70% 2010 4.20% n/a 1.50% 1.60% 1.60% 3.30% 2011 5.30% n/a 2.80% 2.90% 2.50% 4.30% 0.30% 4.10% 2.70% 8.30% 5.70% 8.50% 3.20% 6.50% 8.90% 2012 4.40% n/a 2.10% 2.40% 1.90% 2.50% 0.20% 3.20% 2.20% 7.20% 4.30% 7.00% 3.70% 4.70% 8.00%
2010 4.90% 3.70% 2.90% 3.00% 1.70% 1.40%
2011 3.70% 2.50% 1.60% 1.70% 1.90% 1.10%
4.00% -0.70% 6.20% 3.20% 7.30% 10.40% 8.50% 5.00% 7.50% 4.00% 4.20% 2.80% 6.10% 9.30% 7.40% 4.00% 4.20% 4.40%
2.20% -0.70% 4.00% 2.60% 5.80% 8.60% 3.00% 1.80% 7.60% 3.30%
7.80% 12.10% 4.20% 4.30% 3.60% 4.20% 5.00% 6.90%
1Aggregated using PPP weight
International Commodity Prices

Commodity Unit Price on August 26, 2011 (USD/unit) 85.37 85.37 1,812 747 1,788.00 41 21,148.00 23,501 2,463 2,367.80 2,216 Price on July 29, 2011 (USD/unit) 95.70 95.70 1,779 824 1,628.50 40 24,522.50 28,025 2,695 2,640.00 2,505 Change +/(-)
International Market Movement

Markets Index Aug 31st 2011 One % Change on Dec 31st 2010 In local currency +0.3 -3.1 -2.8 -12.5 -8.5 -8.6 -5.0 -16.3 -10.9 -18.7 -7.9 -9.6 In USD +0.3 -3.1 -2.8 -7.1 -5.5 -4.9 -3.5 -10.2 -11.0 -21.0 -9.6 -3.6 Week +2.6 +3.5 +4.5 +3.7 +1.0 +3.6 +3.4 +1.8 +5.5 +2.4 +1.2 +6.1
Crude Oil Platinum Palladium Gold Silver Nickel Tin Lead Aluminium Zinc Copper
Barrel Ounce Ounce Ounce Ounce Tonne Tonne Tonne Tonne Tonne Tonne
-10.79% -10.79% 1.85% -9.34% 9.79% 3.61% -13.76% -16.14% -8.60% -10.31% -11.54%
Source: Internet
United States (DJIA) United States (S&P 500) United States (NAScomp) Japan (Nikkei 225) China (SSEA) Britain (FTSE 100) Canada (S&P TSX) Germany (DAX) Hong Kong (Hang Seng) India (BSE) Pakistan (KSE) Singapore (STI)
11,613.5 1,218.9 2,579.5 8,955.2 2,689.1 5,394.5 12,768.7 5,784.9 20,534.9 16,676.8 11,070.6 2,885.3
Source: The Economist
12
NEWS IN BRIEF
Business - Firm Specic
IFIC 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-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 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, sh and cattle farms. The project will be a step forward for developing backward linkage for importdependent 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 oer a range of dierentiated services, including dedicated relationship manager, preferential queues, a platinum debit card with enhanced withdrawal and retail spending and a pre-approved credit card.
CSR Activities In The Month

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 dierent 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 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.
Rewards and Recognitions

Green Delta Insurance Company Limited received Bizz Award-2011 in USA on August 23, 2011 from Nicolas Caaro, 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.
Bangladesh Post Oce s software wins prestigious mBillionth Award

Bangladesh Post Oce 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.
Management Change - Banks & FIs

Organization Investment Corporation of Bangladesh Bank Asia Limited Grameen Bank AB Bank Limited Prime Bank Limited City Bank Capital Resources Limited Position Chairman MD MD MD MD MD Name S M Mahfuzur Rahman Md Mehmood Husain Mohammad Shahjahan M Fariduddin Ahmed Md Shirajul Islam Mollah Ershad Hossain
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Management Change - Other org.

Organization Bangladesh Employers' Federation Rupali Insurance Company Limited. Agrani Insurance Company Limited Peoples Insurance Company Limited Rupali Insurance Company Limited Global Insurance Limited Homeland Life Insurance Company Limited Rupayan Group Germanischer Lloyd (GL) Bangladesh Limited GMG Airlines Limited Position President Chairman Chairman Chairman Chairman Chairman Chairman (Re-elected) CEO MD CEO Name Md Fazlul Hoque Mostafa Golam Quddus Mahmudul Hoque Golam Faruk Ahmed Mostafa Golam Quddus RA Howlader Major (retd) Mohammad Jahangir KM Ali A K M Masud Karim Sanjiv Kapoor
Upcoming Events
Event Destination Bangladesh Expo-2011 German Trade Show 2011 Dutch Trade Fair 2011 Period 16-17,September, 2011 27-29 October, 2011 27-29 October, 2011 Location London Dhaka, Bangladesh Dhaka, Bangladesh
Note: The information in this and the preceding pages has been compiled from press reports and miscellaneous publicly available sources unless otherwise specied. The authenticity and correctness of the information has not been veried.
IDLC NEWS
IDLC Opened New Branch in Tongi
IDLC Group opened its 27th branch in Tongi on August 09, 2011. The new branch oers 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 Ocer 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 nancial institution in Bangladesh with 810 sta and a broad range of Corporate, SME, Personal and Capital Market products.
IDLC organized a day long training program

IDLC organized a day long training program on Let s Get Ready for the Corporate Environment for new entrants and sales teamPFD on July 15, July 29 and July 30, 2011. A total 75 participants attended the training session in three dierent groups. The training was conducted by Mr. Rubaiyat A. Tanzeen (trainer of BDjobs.com) to help our executives to groom up themselves properly.
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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 Oce 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 eective 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 aect 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 oce 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 oce, 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!
15
CAPITAL MARKET REVIEW

The 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 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 nancials disclosure of mutual funds and investor hope. The decline continued, although at a slower pace, over the following weeks of the month. As EidUl-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 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 Statistics

Index Movement (August 2011)
Index Point DSI DSE-20 DGEN 5,195.68 4,190.47 6,212.00 Change % Change -184.41 -74.17 -247.63 -3.43% -1.74% -3.83% YTD change -26.33% -21.30% -26.93% Mcap (Equity) Mn USD Unchanged 6 Mn BDT Turnover Mn USD 74 183 -59.35% 32,391 5,452 33,602 13,413 -3.60% -59.35% Mcap (All) Mn USD Mn BDT 40,270 2,379,109 41,289 2,468,079 -2.47% -3.60%
Market Statistics (August, 2011)

Unit Mn BDT 25-Aug-11 2,957,858 31-Jul-11 3,032,653 % Change -2.47%
Advance/Decline (August, 2011)

Advanced All Category 34 Declined 211
Top Ten Gainers List (August, 2011)

Top Ten Gainers LAFSURCEML DSHGARME MONNOCERA SAMATALETH BDAUTOCA ALLTEX CITYBANK DULAMIACOT BANKASIA ICBISLAMIC 25-Aug-11 630.25 619.50 907.50 211.75 516.75 241.25 618.75 331.00 521.25 361.00 31-Jul-11 501.75 532.00 824.75 194.00 475.50 225.50 593.25 318.75 502.50 348.25 % Change 26% 16% 10% 9% 9% 7% 4% 4% 4% 4%
Top Ten Losers List (August, 2011)

Top Ten Losers FEDERALINS ILFSL NATLIFEINS UNITEDAIR AIMS1STMF PF1STMF EASTRNLUB SQURPHARMA MJLBD NAVANACNG 25-Aug-11 66.90 718.00 4419.75 32.00 6.99 9.40 430.00 2700.50 145.30 127.90 31-Jul-11 184.90 1282.50 7420.75 51.60 10.06 12.70 572.60 3542.00 184.70 162.00 % Change -64% -44% -40% -38% -31% -26% -25% -24% -21% -21%
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Top Ten by Value (August, 2011)

Top Ten (Value) BEXIMCO GP RNSPIN UNITEDAIR KEYACOSMET MALEKSPIN LAFSURCEML MICEMENT TITASGAS NBL 25-Aug-11 31-Jul-11 % Change Value (mn BDT) 3,629 3,050 2,885 2,807 2,650 2,581 2,371 2,308 2,094 2,029
Lowest P/E and Lowest P/BV ratio

Lowest P/E ISLAMIBANK 7.88 DHAKABANK NBL BRACBANK ONEBANKLTD RNSPIN ALARABANK SOUTHEASTB BANKASIA PRIMEBANK 8.95 9.55 10.27 10.67 10.86 10.87 10.88 11.11 11.18 Lowest Price/BV POPULAR1MF 76% PHPMF1 GREENDELMF 8THICB TRUSTB1MF PRIME1ICBA IFIC1STMF IFILISLMF1 1JANATAMF SEBL1STMF 76% 77% 78% 79% 79% 79% 80% 80% 80%
179.70 94.50 32.00 111.40 67.30 630.25 191.80 828.50 71.50
189.60 107.90 51.60 113.60 71.00 501.75 204.20 827.00 72.60
-5.22% -12.42% -37.98% -1.94% -5.21% 25.61% -6.07% 0.18% -1.52%
Top Ten Market Capitalization (August, 2011)

Top Ten Mkt Cap GP ICB TITASGAS SQURPHARMA NBL ISLAMIBANK BSRMSTEEL UCBL LAFSURCEML PRIMEBANK BDT (mn) 242,649 92,644 78,054 68,870 61,516 55,318 44,170 38,048 36,598 35,793 % Change -5.22% 0.78% 0.18% -0.89% -1.52% 2.89% -6.82% -4.74% 25.61% -3.57%
Market Capitalization (FY2010 & FY2011)

60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 Jan-10 Feb-10 Arp-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Jul-11 (USD in bn)
DSE Turnover (BDT in mn) (FY2010 & FY2011)
Recent Corporate Declaration

Company name EBL First Mutual Fund Trust Bank First Mutual Fund IFIC Bank First Mutual Fund 1st Janata Bank Mutual Fund DBH First Mutual Fund Barakatullah Electro Dynamics Ltd. Pragati Life Insurance Ltd. Record Date 21-Aug-11 21-Aug-11 21-Aug-11 21-Aug-11 23-Aug-11 24-Aug-11 25-Aug-11 AGM Date 22-Sep-11 15-Sep-11 SD* 20% 12% CD** 21% 18% 15% 9% 17% Rights Split -
*SD = Stock Dividend **CD = Cash Dividend
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Sector Indicators (August, 2011)

Sector Bank Textile Fuel & Power Pharma Engineering Mutual Fund NBFI Cement General Ins. Miscellaneous Travel & Leisure Tele Food Ceramic Life Insurance Service IT Tannery Corporate Bond Jute Paper & Printing Average Value in mill Tk. 1,103.98 553.05 512.54 498.52 374.87 325.96 325.08 305.40 263.16 242.76 161.89 152.36 148.92 85.93 75.15 42.98 29.64 15.47 5.45 0.83 0.50 5,319.11 % of Total Trade 20.76% 10.40% 9.64% 9.37% 7.05% 6.13% 6.11% 5.74% 4.95% 4.56% 3.04% 2.86% 2.80% 1.62% 1.41% 0.81% 0.56% 0.29% 0.10% 0.02% 0.01% Industry Cap 31.64% 3.14% 12.28% 8.26% 5.42% 1.07% 12.05% 2.20% 3.33% 1.15% 0.63% 10.82% 2.10% 1.61% 2.22% 0.85% 0.20% 0.64% 0.31% 0.03% 0.04% Forward PE 14.13 30.92 34.03 31.13 17.08 n/a 30.57 26.20 34.48 31.90 21.48 17.93 25.33 34.22 n/a 224.81 56.36 23.17 n/a 93.69 40.42 25.12 Trailing PE 12.34 28.12 28.76 25.92 17.92 n/a 24.62 35.28 30.86 32.70 21.48 19.20 23.05 39.37 n/a 28.46 56.36 16.97 n/a 31.03 41.66 21.29 Price/BV 12.13 11.38 7.98 6.20 7.10 n/a 15.84 22.12 14.83 4.05 31.84 5.05 3.29 4.02 n/a 10.99 2.82 3.99 n/a 9.27 3.75 10.02
Emerging Market Statistics

Country Name Index Name Market P/E (31.08.2011) Yield (%) (31.08.2011) 01.08.2011 Hong-kong India Indonesia Malaysia Pakistan Phillipines Srilanka Taiwan Thailand Hang Seng BSE Sens Jakarta Comp FTSE Bursa KLCI KSE 100 Manila Comp CSE All Share Weighted Pr Bangkok SET 9.7 16.2 16.2 14.9 8.3 22.0 24.5 13.0 12.4 3.4% 1.4% 2.3% 3.4% 6.4% 2.4% 1.7% 4.3% 3.3% 22663.37 18314.33 4193.44 1558.01 12253.39 4550.53 6854.14 8701.38 1144.14 31.08.2011 20534.85 16676.75 3841.73 1447.27 11070.58 4348.50 6879.29 7741.36 1070.05 Index Monthly Return (August, 2011) -9.39% -8.94% -8.39% -7.11% -9.65% -4.44% 0.37% -11.03% -6.48% 2011 High 24468.64 20664.80 4195.72 1597.08 12768.40 4563.65 7863.74 9220.69 1148.28 2011 Low 18868.11 15765.53 3309.62 1423.47 10760.91 3705.18 6413.11 7148.76 937.06
Source : www.world-exchanges.org / www.market.ft.com
18
Forthcoming IPO under Fixed Price Method

Name of the issue Zahintex Industries Limited Sponsors Equity and Pre-IPO IPO Amount (BDT mn) paid up capital (BDT mn) 250.00 500.00 Public Oer (in unit) 2,000,000 Date for subscription 18-22 September 2011
Yearly Prot declarations in August

Latest Financial Year DSE Code AIMS1STMF APEXFOODS BEDL MONNOCERA MONNOJTX POPULAR1MF Prot (BDT mn) 168.39 10.79 164.12 30.19 1.88 (5.50) EPS (BDT) 0.51 18.93 2.32 18.64 26.05 -
Un-audited half yearly results declared in August

DSE Code AGRANINS BDTHAI BDWELDING BEACHHATCH BERGERPBL BGIC BIFC CENTRALINS CMCKAMAL CONTININS EBL EXIMBANK GLOBALINS GOLDENSON JANATAINS KARNAPHULI NCCBANK Prot (BDT mn) 12.24 56.84 2.81 50.48 357.92 44.67 (46.03) 30.26 25.43 30.18 1,120.14 510.95 23.09 237.07 10.27 46.49 812.19 EPS (BDT) 6.74 13.83 0.13 1.78 15.44 0.97 (8.32) 13.47 1.11 14.88 2.47 0.55 11.56 2.23 12.63 1.26 1.37 DSE Code NITOLINS NORTHRNINS NTC PHENIXINS PIONEERINS PRIMEINSUR PROVATIINS PURABIGEN RUPALIBANK SAFKOSPINN SALVOCHEM SAPORTL SONARBAINS STANDBANKL UCBL UTTARABANK UTTARAFIN Prot (BDT mn) 26.89 35.73 (49.53) 66.28 59.53 29.19 14.80 4.71 675.48 10.63 22.99 102.72 13.55 424.04 874.47 853.18 424.64 EPS (BDT) 16.00 16.08 (75.05) 2.16 25.40 1.09 8.81 6.48 49.13 5.73 9.46 0.85 7.47 10.44 1.29 2.97 5.74
Un-audited quarterly results declared in August

DSE Code APEXSPINN SINOBANGLA SQURPHARMA Prot (BDT mn) 3.97 5.67 974.80 EPS (BDT) 4.72 0.57 49.69
Pharmaceuticals Sector Analysis

Sector Summary** Company Name GSK ltd Pharma Aids Limited KEYA COSMETICS Kohinoor chemical LIBRA INFUSIONS Ltd MARICO BD Relative Value Metrics DSE Code 2006 GSK ltd Pharma Aids Ltd. Keya Cosmetics Kohinoor chemical Libra Infusions Ltd MARICO BD 2007 P/E 2008 2009 26.98 26.83 30.53 2010 33.80 22.54 28.73 2006 1.67 2007 2.97 2.37 P/BV 2008 4.65 3.39 1.51 2009 4.22 2010 5.64 2006 2007 27.16 P/CF 2008 60.12 23.34 5.32 2009 19.24 21.08 2010 22.53 13.71 DSE Code GLAXOSMITH PHARMAID KEYACOSMET KOHINOOR LIBRAINFU MARICO Mkt Price* (BDT) 986.90 118.50 2,364.50 4,111.25 538.10 No. of Shares (in mn) 12.04 0.31 61.15 0.50 0.13 31.50 Mkt Cap (in mn BDT) 9,870.86 807.07 6,763.46 1,140.00 504.71 15,334.20 Mkt Cap (in USD) 134.39 10.99 92.08 15.52 6.87 208.77 Free Float 18% 56% 66% 59% 50% 10%
* Mkt price as of August 25, 2011
- 51.61 27.82 9.50 11.24 20.55 - 19.73
8.42 10.89
(16.31) (13.06)
9.96 259.46
- 11.89 10.30
19
Per Share (BDT) DSE Code 2006 GSK ltd Pharma Aids Limited KEYA COSMETICS Kohinoor chemical LIBRA INFUSIONS Ltd MARICO BD Financial Performance DSE Code GSK ltd Pharma Aids Limited KEYA COSMETICS Kohinoor chemical LIBRA INFUSIONS Ltd MARICO BD Financial Performance DSE Code GSK ltd Pharma Aids Limited KEYA COSMETICS Kohinoor chemical LIBRA INFUSIONS Ltd MARICO BD Financial Performance DSE Code GSK ltd Pharma Aids Limited KEYA COSMETICS Kohinoor chemical LIBRA INFUSIONS Ltd MARICO BD 2006 -2% 12% 7% 2007 4% 9% ROA(%) 2008 12% 9% 3% 2% 18% 2009 21% 9% 4% 1% 23% 2010 21% 15% 22% Average Shareholder's Equity (BDT in mn) 2006 2007 2008 2009 2010 1,041.90 1,039.72 1,215.41 1,531.93 1,957.89 57.10 927.81 1,049.35 1,008.06 1,013.80 305.65 1,489.49 981.96 1,081.31 365.19 2,012.59 1,037.88 3,137.85 2006 -2% 86% 18% 2007 6% 21% ROE (%) 2008 17% 17% 9% 8% 32% 2009 31% 16% 11% 5% 39% 2010 32% 25% 36% Average Shareholder's Equity (BDT in mn) 2006 2007 2008 2009 2010 793.05 782.88 855.79 1,037.96 1,272.43 7.97 379.23 464.69 548.22 550.40 604.60 352.84 351.65 84.07 85.16 847.84 1,209.27 1,882.96 Net Prot after Tax (NPAT) (BDT in mn) 2006 2007 2008 2009 2010 (17.12) 45.05 142.95 323.79 410.18 6.85 66.70 97.84 90.56 86.61 151.38 31.72 38.35 6.41 4.37 - 267.29 470.87 675.11 2006 (10.23) 8.86 155.43 Operating Income (BDT in mn) 2007 2008 2009 79.06 212.63 431.86 181.02 160.03 79.24 57.29 73.03 28.30 27.95 413.14 494.97 2010 535.60 82.71 755.96 (1.42) 131.74 2.78 2007 3.74 3.40 Basic EPS 2008 11.87 3.14 7.49 51.25 29.70 2009 26.88 3.01 34.93 14.95 2010 34.05 5.26 21.43 2006 65.83 153.32 15.80 BVPS (On Avg. Net Worth) 2007 64.99 16.13 2008 71.04 19.04 83.32 671.70 94.20 2009 86.16 19.11 680.41 38.39 2010 105.63 20.99 59.78
Weekly (August 21 - 25, 2011) Update on Open-end Mutual Funds

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. Sl No. 1 2 3 Name of Mutual Funds Initial Re-Purchase Fund Size Price (BDT mn) 100 234 200 100 97 261 Selling Price 239 100 266 % Change in Annualized Fund NAV from last %Change in NAV Manager week during 2011 16-Aug-11 234.12 0.03% 0.72% ICB AMCL 7-Sep-11 97.8 0.00% 0.05% -1.51% -2.30% PAMC ICB AMCL 16-Aug-11 261.28 Eective Date* NAV
ICB AMCL Pension Holders' Unit Fund Prime Financial First Unit Fund ICB AMCL Unit Fund
* For ICB AMCL, eective date is the date from which repurchase price, selling price and NAV are applicable. For PAMC, eective date is the date until which repurchase price, selling price and NAV are applicable.
20
Weekly (August 21 - 25, 2011) update on closed-end Mutual Funds

Following 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 (August 25, 2011)* 6.99 8.60 9.20 10.20 7.60 8.20 7.60 7.30 8.20 10.60 11.10 12.50 7.20 22.60 7.30 12.80 99.70 Latest NAV/ unit 4.69 10.75 10.53 10.55 10.01 10.09 10.07 9.64 10.30 13.49 14.08 14.51 8.96 Price/ NAV %Change %Change YTD Change of Price in NAV in NAV from last from last week week 149% -22.07% 0.21% 22.77% 80% 87% 97% 76% 81% 75% 76% 80% 79% 79% 86% 80% -1.15% -4.17% -2.86% -5.00% -1.20% 1.33% 0.00% -8.89% -13.11% -15.91% -17.76% -1.37% -13.08% 0.00% -4.48% -17.67% -1.13% 0.09% 0.77% 0.09% 0.81% 0.50% 0.70% 0.84% 0.49% 1.05% 0.21% -0.27% -0.88% -0.36% 0.52% 0.58% 0.04% -1.57% 2.97% 2.53% 0.38% 0.30% -0.59% -3.82% -4.08% -4.36% -4.87% -6.07% -6.69% -10.13% -10.61% -11.13% -11.45% -13.45% -14.57% Performance against DGEN "Redemption Year" "Fund Manager"
AIMS1STMF SEBL1STMF EBLNRBMF RELIANCE1 MBL1STMF AIBL1STIMF POPULAR1MF PHPMF1 1JANATAMF IFIC1STMF TRUSTB1MF EBL1STMF IFILISLMF1 GRAMEENS2 GREENDELMF DBH1STMF GRAMEEN1 1STICB
Aims 1st M.F. Southeast Bank 1st Mutual Fund EBL NRB MUTUAL FUND RELIANCE ONE MUTUAL FUND MBL 1st Mutual Fund AIBL 1st Islamic Mutual Fund Popular Life First Mutual Fund PHP First Mutual Fund First Janata Bank Mutual Fund IFIC Bank 1st Mutual Fund Trust Bank 1st Mutual Fund EBL First Mutual Fund IFIL Islamic Mutual Fund-1 Grameen One : Scheme Two Green Delta Mutual Fund DBH First Mutual Fund Grameen Mutual Fund One 1st ICB M.F.
Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed Outperformed
2015 2021 2021 2021 2021 2021 2020 2020 2020 2019 2019 2019 2019 2016 2020 2019 2015 2011
AIMS VIPB RACE AIMS LR Global LR Global RACE RACE RACE RACE RACE RACE ICB AMCL AIMS LR Global LR Global AIMS ICB
19.38 117% 9.58 76%
12.07 106% 52.71 189% 90%
9936.00 11007.71
21
"Redemption Year" "Fund Manager"
DSE Code
Name of Mutual Funds
Price (August 25, 2011)* 1449.00
Latest NAV/ unit
Price/ NAV
%Change of Price from last week 1.86%
%Change in NAV from last week 0.90%
YTD Change in NAV
Performance against DGEN
1STBSRS
1ST Bangladesh Shilpa Rin Sangstha M.F. ICB AMCL Islamic Mutual Fund ICB AMCL Third NRB Mutual Fund Prime Bank 1st ICB AMCL Mutual Fund Phoenix Finance 1st Mutual Fund ICB AMCL 1st NRB Mutual Fund ICB AMCL 1st M.F. ICB AMCL 2nd NRB Mutual Fund Prime Finance First Mutual Fund ICB Employees Provident MF 1: Scheme 1 3rd ICB M.F. ICB AMCL Second Mutual Fund 2nd ICB M.F. 6th ICB M.F. 5th ICB M.F. 8th ICB M.F. 4th ICB M.F. 7th ICB M.F.
1812.15
80%
-20.42%
Underperformed
2011
BDBL
ICBISLAMIC ICB3RDNRB PRIME1ICBA PF1STMF ICB1STNRB ICBAMCL1ST ICB2NDNRB 1STPRIMFMF
361.00 8.80 8.70 9.40 370.75 579.00 173.00 20.10
270.06 134% 9.01 9.85 9.64 403.58 585.56 175.94 98% 88% 98% 92% 99% 98%
-0.07% 0.00% -2.25% -6.93% -4.20% 5.75% -0.72% -4.74%
-1.04% -1.21% -10.29% -1.43% -1.36% -1.44% -1.26% -1.34%
-24.60% -25.29% -25.77% -26.02% -26.51% -26.71% -27.11% -27.50%
Underperformed Underperformed Underperformed Underperformed Underperformed Underperformed Underperformed Underperformed
2014 2019 2019 2019 2017 2013 2018 2015
ICB AMCL ICB AMCL ICB AMCL ICB AMCL ICB AMCL ICB AMCL ICB AMCL ICB AMCL
18.45 109%
ICBEPMF1S1 3RDICB ICBAMCL2ND 2NDICB 6THICB 5THICB 8THICB 4THICB 7THICB
10.20 2470.00 116.25 3617.00 681.75 1,568.00 680.00 2220.00 1146.00
9.87 103% 2104.19 117% 110.45 105% 2834.79 128% 702.02 1911.28 816.55 97% 82% 83%
-3.77% 0.00% -0.21% 0.00% 3.02% -0.27% -0.33% -0.59% 0.00%
-1.40% -4.65% -1.42% -3.43% -6.46% -8.62% -6.92% -4.48% -6.39%
-27.69% -28.22% -28.89% -32.96% -34.77% -34.98% -35.72% -37.52% -37.65%
Underperformed Underperformed Underperformed Underperformed Underperformed Underperformed Underperformed Underperformed Underperformed
2019 2011 2019 2011 2011 2011 2011 2011 2011
ICB AMCL ICB ICB AMCL ICB ICB ICB ICB ICB ICB
2223.46 100% 1127.50 102%
22
Investment Terminology
a) 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 nancial institutions or assets drops rapidly. A nancial crisis is often associated with a panic or a run on the banks, in which investors sell o assets or withdraw money from savings accounts with the expectation that the value of those assets will drop if not withdrawn. d) Paper Prot (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 specic mixture of longterm debt and equity that a company uses to nance its operations. This nancial structure is a mixture that directly aects the risk and value of the business. Also referred to as capital structure. Source: www.investopedia.com
Selected DSE News of the month

DSE CODE BANKASIA NEWS 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 oered 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. 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 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 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) Payo term loan of BDT 738.74 mn out of net IPO proceeds
BEDL
23
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 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 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 Ocer (CEO), Chief Operating Ocer (COO) and/or Chief Financial Ocer (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 conrmation 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 Board of Directors of the company has decided the following: (1) to re-x the oer price for its Repeat Public Oering (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. 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. 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 eective 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.
BEXIMCO
BSC
FAREASTLIF
MONNOCERA
24
DSE CODE MONNOJTX NEWS
MONNOJTX
NATLIFEINS
PRAGATILIF
PRIMELIFE
PROGRESLIF
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 eective 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 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 modication the aforesaid Draft Scheme of Amalgamation on September 30, 2011 and for ling the same before the Hon'ble High Court Division within October 07, 2011 and (c) xing the case for hearing before the Hon'ble High Court Division on October 09, 2011." 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. 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. 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. 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.
DISCLAIMER
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 oer 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.
IDLC OFFICES AND BRANCHES

BRANCH NETWORK OF IDLC FINANCE LIMITED IDLC FINANCE LIMITED
Corporate Head Ofce Bays Galleria (1st Floor) 57 Gulshan Avenue Gulshan 1, Dhaka 1212 Tel : +880 (2) 883 4990
DILKUSHA BRANCH
Eunoos Trade Centre Level 13, 52-53 Dilkusha C/A Dhaka 1000. Tel : +880 (2) 9560111
DHANMONDI BRANCH
House # 39A (3rd Floor) Road # 14A, Dhanmondi Dhaka 1209 Tel: +880 (2) 815 7632
Taj Marriot (1st Floor) 25 Gulshan Avenue Dhaka 1212 Tel: +880 (2) 9886837
GULSHAN BRANCH
Monsur Complex (2nd Floor) Plot 59/A, Road 7, Sector 4 Uttara Model Town, Dhaka 1230 Tel: +880 (2) 8932340
UTTARA BRANCH
MIRPUR BRANCH
Khan Plaza (1st Floor) Plot No. 6, Main Road No. 1 Mirpur 10, Dhaka 1216 Tel: +880 (2) 805 1845
KERANIGANJ BRANCH
A.K Tower, Nagar Mahal Road Nadidhara Ispahani East Agarnagar South Keraniganj, Dhaka 1310
75 Midfort Road (2nd Floor) ImamganjDhaka 1100 Tel: +880 (2) 7343766-7
IMAMGANJ SME BOOTH
NARSHINGDI BRANCH
T Hussain Tower, Holding # 382 Kalibari Road, Narshingdi Bazar Narshingdi Tel: +880 (2) 945 2075-76
NARAYANGANJ BRANCH
Sattar Tower (Ground Floor) 50 S.M. Maleh Road Tanbazar, Narayanganj 1400 Tel: +880 (2) 764 8213-4
Rahmat Tower (2nd Floor) Holding No. 1034, Outpara Joydebpur, Gazipur 1700 Tel: +88 (02) 926 3505
GAZIPUR SME BOOTH
Alam Plaza (2nd Floor) 122/B Jaleshwar, Savar Dhaka 1340 Tel: +880 (2) 774 4961-3
SAVAR BRANCH
TONGI BRANCH
Banesa Complex (Ground Floor) 26, Anarkoli Road Tongi Bazar Tongi, Gazipur.
CHITTAGONG BRANCH
Jahan Building 4, (Ground Floor) 76/77 Agrabad C/A Chittagong 4100 Tel: +880 (31) 711 034
NANDANKANON BRANCH
A.K. Mansion (1st Floor) Holding No. 17 J.C. Guha Road Nandankanon, Chittagong 4100 Tel: +880 (31) 612 732
Casablanca (2nd Floor) 982 Dargah Gate Sylhet 3100 Tel: +880 (821) 283 2461-3
SYLHET BRANCH
Sairul Complex (2nd Floor) Sherpur Road, Sutrapur Bogra 5800 Tel: +880 (51) 69917
BOGRA BRANCH
Nasir Center (2nd Floor) 437 Nazrul Avenue Kandirpar, Comilla 3500 Tel: +88 (081) 64907-8
COMILLA BRANCH
BRANCH NETWORK OF IDLC SECURITIES LIMITED

Head Ofce 36, Dilkusha C/A (13th Floor) Dhaka 1000 Tel: +880 (2) 957 1842
IDLC SECURITIES LIMITED
GULSHAN BRANCH
South Avenue Tower (5th oor) House No. 50, Unit No. 502 Road No.-3, 7 Gulshan Avenue Dhaka 1212 Tel: +880 (2) 988 3898
DOHS MOHAKHALI BRANCH

House No. 109, Park Road Block A, New DOHS Mohakhali, Dhaka 1206 Tel: +880 (2) 8715081
Monsur Complex (4th Floor) Plot # 59/A, Road # 7, Sector # 4 Uttara, Dhaka 1230 Tel: +880 (2) 895 9392 + 880 (2) 895 9046
UTTARA BRANCH
Caldwell Center (2nd oor) Plot- 54, Road-11, Block C Banani, Dhaka 1213 Tel: +88-02-8826031
BANANI BRANCH
DHANMONDI BRANCH
Municipal Holding No. 405/C (3rd & 4th floor) Road No. 27 (old), 16 (new) Dhanmondi R/A, Dhaka-1209 Tel: +88-02-9102991-3
Rahmat Tower (2nd Floor) Holding No. 1034 Mouza Outpara, Gazipur Tel: +880 (2) 926 3503
GAZIPUR BRANCH
NARAYANGANJ BRANCH
Sattar Tower (Ground Floor) Municipal Holding No. 50 S.M. Maleh Road, Tanbazar Narayanganj 1400 Tel: +880 (2) 763 2891
CHITTAGONG BRANCH
Ayub Trade Centre (6th Floor) 1269/B Sk. Mujib Road Agrabad C/A, Chittagnong 4100 Tel: +880 (31) 251 4051
KHATOONGONJ BRANCH
M.H No. 3/A Ramjoy Mohajan Lane, (5th oor) Khatungonj, Kotwali, Chittagong Tel: +88 (031) 2866491-3
Casablanca (2nd Floor) 982 Dargah Gate Sylhet 3100 Tel: +88 (0821) 2832461-4
SYLHET BRANCH
BRANCH NETWORK OF IDLC INVESTMENTS LIMITED IDLC INVESTMENTS LTD.

Head Office Eunoos Trade Centre (Level 21) 52-53 Dilkusha C/A, Dhaka 1000 Tel: +880 (2) 957 1170 36 Dilkusha Commercial Area (13th floor), Dhaka 1000 Tel: +880 (2) 957 1842
PEOPLES INSURANCE BHABAN BRANCH
MOTIJHEEL DMEx BRANCH

People Insurance Building (13th foor) 36 Dilkusha, Dhaka-1000 Tel: +880 (2) 9571842
DOHS MOHAKHALI BRANCH

House No. 109, Park Road Block: A, New DOHS Mohakhali Dhaka 1206 Tel: +880 (2) 8715081
Capita South Avenue Tower (5th Floor), House No. 50 Unit: 502 , 7 Gulshan Avenue Dhaka 1212 Tel: +880 (2)-988 3898, 988 9861
GULSHAN BRANCH
Caldwell Center (2nd floor), Plot- 54, Road-11, Block C, Banani, Dhaka 1213 Tel: +88-02-8826031, 8826048
BANANI BRANCH
House # 405/C (3rd & 4th Floor) 24/C Sk. Kamal Sarani (New) Road # 27 (Old) 16, (New). Dhanmondi R/A, Dhaka-1209 Tel: +880-2- 9102991-3
DHANMONDI BRANCH
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Monthly Business Review - August 2011

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Monthly Business Review - August 2011

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Volume 7 Issue 08 August 2011

Industry and Equity Analysis Team

Volume 7 Issue 08 August 2011

Design & Printing nymphea

Volume 7 Issue 08 August 2011

Industrial credit growth boosts

USD 54.27 mn foreign aid received in July, 2011

Selected Economic Indicators

Volume 7 Issue 08 August 2011

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

Twelve month average basis

Non-Food Inflation (point to point)

Food Inflation (point to point)

Rising trend in manpower exports

Overseas Employment and Workers Remittances

Volume 7 Issue 08 August 2011

Trade decit expands due to soaring commodity prices

Export earnings up by 28% in July, 2011

Catergory wise Export

BDT mn 8,770 3,070 1,690 450 731 138

Volume 7 Issue 08 August 2011

Exports to Europe rise in scal 2010-11

Export Processing Zones (EPZs) Statistics

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

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

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

2% 12% 20% 0% Dhaka EPZ Mongla EPZ 5% Comilla EPZ

2% 1% 4% 4% 1% 0% Uttara EPZ Ishwardi EPZ 7% 1% 3% 2% Adamjee EPZ Karnaphuli EPZ

Imports grow by 38.6% in last scal followed by growth in July, 2011

Volume 7 Issue 08 August 2011

NBR revenue receipts rise 14% in July, 2011

Credit-deposit ratio reaches safe limit in June, 2011

BB s operational prot rises 95% in FY 2010-11

BB advised to avoid fund mismatch through raising borrowers equity

Sales of savings certicates drop in 2010-11

Default loans on the rise

Volume 7 Issue 08 August 2011

11.64 14.68 8.88 6.11 8.78 7.57

11.26 9.29 9.13 9.79

Total Number of cell phone users l b f ll h is crossed 78 mn in July, 2011

GrameenPhone Banglalink Robi Airtel CityCell Teletalk Total

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

Volume 7 Issue 08 August 2011

BB asks banks to pay freight brokerage charges to Shippers Council

BB caps interest rate on fertilizer import nance

Bangladesh Taka on the rise

Foreign Exchange Market

EXCHANGE AND FORWARD RATES:

Source: Standard Chartered Bank

Volume 7 Issue 08 August 2011

Financial Sector Prices

Treasury Bill/Bond Auction Information

Asia lacks social benets despite growth: ADB

Volume 7 Issue 08 August 2011

Eurozone growth slides to 0.2%

Japan economy shrank less than thought after quake

Volume 7 Issue 08 August 2011

International Economic Forecast

2010 4.90% 3.70% 2.90% 3.00% 1.70% 1.40%

2011 3.70% 2.50% 1.60% 1.70% 1.90% 1.10%

7.80% 12.10% 4.20% 4.30% 3.60% 4.20% 5.00% 6.90%

1Aggregated using PPP weight

International Commodity Prices