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The Dhaka Stock Exchange on Saturday hailed the proposed budget for the 2005-06 fiscal as it feels that fiscal packages would rejuvenate the capital market.
   The new budget, placed in parliament on Thursday, has both direct and indirect incentives for market players and investors, which would give further impetus to the market, the executives of the prime bourse have said.
    The chairman of the Securities and Exchange Commission has also echoed the same view, saying, ‘The latest budgetary measures will benefit those who are in the stock trade.’
   ‘The market has got a good recognition this time,’ Mirza Azizul Islam told New Age.
   However, the market is yet to see any reflection of proposed fiscal incentives, hailed by the bourse and the regulators as well. The general index gained slightly by 3.9 points or 0.23 per cent to 1694.7 with gainers topping the losers.
   The DSE welcomed the extension of tax holiday for 18 sectors up to June 30, 2008.
   The finance bill 2005 has also made it conditional for the beneficiary industrial units to invest 10 per cent of their profit in the share market every year.
   ‘This is definitely a positive move for the market,’ DSE chief executive Salahuddin Ahmed Khan said.
   DSE president Shahik Khan hoped that finance minister’s budgetary pledge to offload government’s shares would be implemented soon.
   ‘This announcement reflects our long-drawn demand. We hope it will be implemented on priority basis,’ he told a press briefing at his office.
   The bourse urged the government to take steps so that foreign direct investment is channelled through the stock exchanges.
   In his budget speech, finance minister, Saifur Rahman, said that the actual foreign direct investment in 2004 was $653 million.
   Also the country has received investment proposal worth $12 billion from some major entrepreneurs in different countries, he said adding that it would take three to four years to implement those projects given the negotiations completed in times.
   DSE vice president Ahmad Rashid said, ‘We want the government to make a policy so that after certain period foreign firms get listed with the stock exchanges.’
   He cited that Unilever and Standard Chartered Bank are listed with Indian and Pakistani stock exchanges, but they are aloof from capital market here. ‘We are being deprived due to lack of guidelines.’
   Highlighting few of the key policy packages proposed for the capital market, the DSE president Shahik said that corporate tax for non-listed companies has been raised to 40 per cent for the assessment year 2006-07 instead of 37.5 per cent while for listed companies, it remained unchanged at 30 per cent.
   The widening of tax gap to 10 per cent would encourage good-performing companies to get listed with the bourses, he observed.
   Though a 10 per cent advance income tax has been imposed on shareholders on dividend receipts, the stock exchange felt that the withdrawal of existing provision of 10 per cent dividend distribution tax from the companies would encourage them to pay more dividends.
   The stock exchange appreciated the proposed deduction of 0.015 per cent tax at source on the transaction value of shares for the members of the stock exchanges. This will eliminate harassment by the tax authority, it said.
   However, it suggested that proposed rate should be lowered to 0.01 per cent.
   Reduction of tax to 10 per cent from the existing 20 per cent on income from approved securities and bonds would also encourage investors to put money in bond market, Shahik said.
   Proposed lowering of provision requirement against bad debts to 1 per cent from existing 2 per cent would give a boost to the banking stocks that account for nearly 50 per cent of the market capitalisation.
   As the finance minister proposed a one-year extension of money whitening scheme with paying 7.5 per cent income tax, the DSE suggested that there should be a provision so that a part of this money comes into the capital market.

The proposed budget has failed to address the crisis of the poor and middle class people, while it gives some people a chance to legalise their ill-gotten money, said economist Atiur Rahman.
   Proposed extension of the money whitening facility would hurt the honest taxpayers and encourage corruption, he said while presenting his key observations on the new budget on Saturday.
   Atiur, who chairs Samunnoy, an NGO, appreciated the increase in allocation for agriculture sector, but stressed that good governance, strong monitoring and involvement of civil society have to be ensured to reach the real benefit to farmers.
   Higher allocation for local government development has every possibility to serve the local influential people ahead of the next general election due in early 2007, he said.
   Widening of value added tax areas would add to the miseries of the commoners already hit hard by the spiralling prices of essentials, the economist felt.
   The finance minister projected VAT revenue of Tk 12,675 crore, which is up by 19 per cent over the outgoing fiscal’s estimate. ‘The higher projection is a matter of worry as VAT is mostly paid by general and poor people,’ Atiur said.
   Increased budgetary allocations for education and social security are appreciable, but the proposed budget lacks specific directions and mechanism to ensure delivery of quality services to the targeted sectors and people, he pointed out.
   The budget review of the Samunnoy revealed that direct allocation in poverty reduction projects has been reduced, while a number of projects has been included for the same purpose, which will rather expose the government to a bigger challenge in reducing hardcore poverty.
   Though the revised budget shed 156 development projects, the proposed new budget allocated Tk 4000 crore more in the annual development programme with concentration on more on building and road construction, which the economist identified as major source of corruption.
   He suggested that the government should withdraw the proposed tax .2 per cent on income from apparel exports and should rather allocate money for backward and forward linkage sectors to help the sector overcome post multi-fibre arrangement effects, he said.
   The Samunnoy also felt that the budget should have a mechanism in place to make sure that the fund for seasonal unemployment would really benefit targeted people, more specifically the people affected by famine-like situation in northern region.
   Samunnoy executives AKM Moksudul Alam, Dilruba Yasmin Choudhury and Shah Mahbubul Alam were also present at the function.

Computer software traders have urged the government to exempt 10 per cent income tax imposed on their business and demanded tax exemption till 2010 to help the industry flourish.
   The Bangladesh Association of Software and Information Services made the demands at a press conference on Saturday.
   The new budget proposed to introduce a ‘reduced rate of tax at 10 per cent on the income from computer software business up to June 30, 2008.
   The industry people felt that the tax measure goes against the sprit of the government policy of using ICT as a tool for national development and poverty alleviation.
   The association leaders identified ‘mistreatment and mindset’ as major roadblocks to the development of software industry despite its huge export potentials.
   They said software and other IT sectors are strategically important parts of the economy and big supports for other major industries.
   Sarwar Alam Chowdhury, president of the software association termed that projection of $2 billion income from software exports would remain an illusion until the industry is denied necessary policy supports. The software industry needs to sustain and serve the local market first, he said.
   Currently there are more than 350 registered software companies employing near 7000 high skilled professionals and the local software market size is more than Tk 250 crore yearly.
   The software export earnings figured around $ 7.2 million in 2004, but growth was 72 per cent over a year ago period, the association claimed.
   BASIS president said
   that the local market growth rate will be more than 100 per cent in few years and the local software industry has also reached a take-off stage and created opportunity for employment.
   The budget measure would block this growth and confirm the domination of foreign companies in the local market, he cautioned.
   The association recommended similar tax exemption for IT enabled services and accelerated depreciation for procurement of computer hardware and software by any business enterprises in the country.
   They also suggested that annual development programme should have 2 per cent allocation for ICT procurement or investment by different ministries and agencies of government.
   Secretary general of the association Forkan Bin Quasem, directors AKM Fahim Mashrur and Zahidul Hasan, treasurer Rafiqul Islam Rowlin, Bangladesh Computer Samity president SM Iqbal, IT industry leaders SM Kamal, Akbar Uddin Ahmed and Sawadesh Ranjan Saha were present at the programme.

Reconditioned vehicle importers on Saturday demanded withdrawal of proposed additional supplementary duty on import of used vehicles in the budget 2005-06.
   The finance minister proposed 5 to 10 per cent increase in the supplementary duty on import of reconditioned vehicles, said Abdul Mannan Chowdhury Khasru, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association, at a press conference at the National Press Club.
   The present supplementary duty is fixed at 30 per cent and import duty at 98 per cent.
   ‘If the additional duty provision is enforced, the average price of vehicles would go up by Tk 40, 000 to Tk 2.5 lakh,’ he said.
   Giving a cite, he said price of a 1300CC Corolla DX would be Tk 9.4 lakh as the total duty would stand at Tk 4.67 lakh from Tk 4.27 lakh.
   ‘The price of the similar car was Tk 5 lakh in 2002 as the total duty was Tk 2.51 lakh,’ Khasru said.
   He said about 18,000 cars were imported annually before 2002 but the number is decreased to 7,500 a year due to increased duties and taxes.
   If the proposed additional duty is not withdrawn, the importers would not release any vehicle from the Chittagong port from July 1, he declared.
   The BARVIDA president also demanded withdrawal of restriction on import of recondition vehicles of over 1650CC.
   He demanded that the government should allow import of pick-up, trucks and delivery vans cars up to seven years old from the current ceiling of four years.

India will be hit hard as cheap imports are expected to flood the market under the India-Thailand free trade agreement (FTA), according to a survey by Federation of Indian Chambers of Commerce and Industries.
   Drawing sharp reactions from certain quarters, the survey pointed out that the new trading dispensation would result in a huge surge in the imports from Thailand. While exports from India will not benefit, given the small size of the Thai market.
   According to the survey, industry has been complaining about the higher cost of infrastructure services in India and the huge difference in interest rates between the two countries.
   For example, electricity cost in Thailand is Rs 2.50 per kilowatt-hour (KWH) compared with Rs 5.50 per KWH in India. The average interest rate in Thailand is 4 to 5 per cent against nearly 13 per cent in India.
   Outlining the issues of concern of companies that produce goods listed in the 82 items for the early harvest import from Thailand, the survey said, internal cost disabilities were eroding the competitiveness of domestic companies.
   A comparison of import duties on certain raw materials in India and Thailand revealed that major inputs such as glass parts and chemicals (used by colour picture tube manufacturers) could be imported free into Thailand, but attract a 15 per cent duty for Indian importers. Similarly, alloy steel and stainless steel attract 5 per cent higher import duty in India than in Thailand.
   In order to gear up for competition with Thailand, 32 per cent of the respondents in the survey said they were focusing on improving productivity. Another, 28 per cent said they had implemented cost cutting measures.

Imam Anwar Hossain has been elected chairman while Nafis Sikder vice-chairman of the executive committee of board of director of Prime Bank Ltd, says a press release.
   Born in Narsingdi, Anwar obtained graduation from
   Juldia Marine Academy in 1969. He is the chairman of Imam Group.
   He is also a member of the French-Bangladesh Chamber of Commerce and Industry.
   Anwar was the vice-chairman of Pragati Insurance Ltd and also the ex-president of the Bangladesh Ocean-going Ship Owners Association.
   Nafis did his Bache-lor of Science in Business Admini-stration from Washington University, St. Louis, USA. He has been involved in his family business Palmal Group.
   He is the managing director of Palmal Group and also the managing director of Ayesha Clothing Co. Ayesha Fashions and Ayesha Washing Ltd.

Prices of Sri Lanka teas ended higher at the latest auction with buyers going for varieties that showed a significant quality improvement, brokers said.
   ‘Best varieties in particular saw substantial price gains with the below- best types too moving up in prices,’ Forbes and Walker Tea Brokers said.
   Prices of high grown teas like Broken Orange Pekoes from the high altitude regions like Udapu-ssellawa appreciated by around 8.0 to 10.0 rupees per kg.

China said Saturday it will limit growth in exports of 10 textile and clothing products to the European Union to eight-12.5 per cent a year in a bid to defuse a trade row straining ties between them.
   The announcement came after more than 10 hours of negotiations between Chinese commerce minister Bo Xilai and EU trade commissioner Peter Mandelson in Shanghai on Friday, in which the two sides agreed to curb Chinese textiles exports to Europe in the next three years.
   ‘China and the European Union have agreed that, in the period from 11 June 2005 to the end of 2007, with an agreed base quantity, we will determine China’s amount of exports to Europe by a growth rate of between eight to 12.5 per cent per year,’ the Ministry of Commerce said in a statement on its website.
   In 2008, the EU will only apply ‘with restraint’ paragraph 242 of China’s World Trade Organisation accession protocol on textiles, which requires China to limit exports of textile products, the statement said without explanation.
   According to a memorandum, the EU has agreed to stop its investigation into Chinese exports of 10 textile products to Europe, including cotton cloth, T-shirt, flax yarn, bed sheets, table-cloth and trousers, the statement said.
   ‘During the negotiations, both sides recognise that the textile trade is an important component in the China-EU bilateral trade relations,’ it said.
   ‘On the basis of all-round China-EU strategic partnership and bilateral cooperation, we agreed to abide by the win-win principle and to actively promote the stable and healthy development of the textile trade,’ it said.
   China’s textile exports to EU were worth 10.79 billion dollars in 2004, six per cent of the total China-EU bilateral trade, which totalled 177.3 billion dollars, state news agency Xinhua said.
   China’s official media Saturday hailed the agreement, saying the 25-nation bloc’s positive approach contrasted sharply with that of the United States.
   Xinhua published a lengthy commentary praising the EU for upholding ‘the principles of free trade’ and criticising the United States’ ‘protectionist’ stance.
   ‘EU’s move is in sharp contrast with the US slapping of import limits, an approach that is widely criticised by the international community as discriminatory and protectionist, undercutting the very principles it is promoting,’ it said.
   The EU and the United States have both expressed concern over a huge jump in Chinese T-shirt and flax yarn exports following the end of the global textile quota system on January 1.
   Washington has since slapped import quotas on seven categories of Chinese textile goods.
   But Chinese official statistics showed clothing and apparel exports between January and April this year were only up 15.16 per cent over the same period of last year.
   Xinhua said the United States’ restrictive measures will likely cause two billion dollars in losses to the Chinese textile industry and will also cost some 400,000 workers their jobs.
   State media said the agreement with the EU will safeguard the interest of the Chinese textile industry and provide a stable trading environment for Chinese companies.
   ‘For Chinese companies, the best news is that the EU promised ... that it will limit the special restrictive measures imposed on Chinese textile industry,’ it said. ‘(This) will ensure a stable trade environment for the textile industry in the next three years.’
   But some Chinese expressed dissatisfaction over their country’s action, lambasting the government for selling out Chinese workers’ interests and giving in to foreign pressure.
   ‘It feels like we have made a one-sided concession. Under the WTO rules the textile trade should be completely free,’ said one Internet posting on the bulletin board on the popular sina.com website.

The Group of 77 plus China will take up UN reform and measures to strengthen their developing economies next week in Doha, Qatar, their first meeting in five years.
   Leaders from the 132 countries now in the G-77, as the UN alliance of developing states is called, will discuss South-South partnerships, North-South relations and UN reform at the June 15-16 summit, said an official for the group who asked not to be named.
   The G77 is the largest Third World coalition, tackling economic development since its founding in 1964. However, some of its members, such as Brazil, India and associate member China, have become rising economic forces on the world stage.
   The official said the group hopes to ‘come up with minimal consensus’ on UN reform, adding that reform should ‘take into account the interests of the South.’ Indeed, two G77 members, India and Brazil, are vying for permanent seats on an expanded UN Security Council in an effort with Germany and Japan.
   However, India’s rival and a G77 member, Pakistan, has publicly denounced the plan.
   Despite the gamut of economic prowess in the G-77, which runs the gamut from powerhouses like Malaysia and Saudi Arabia to the tiny economies of Zambia and Mali, the official insisted the coalition is based on solidarity.
   ‘Yes there are 132 countries, with different levels of development,’ he said. ‘But I think there is a common denominator, in that we all agree that we need to be unified to face the challenges of globalization,’ he said.
   The Havana meeting five years ago was the first summit to gather heads of state since the group’s creation 41 years ago and reflected a shift in global politics, said the official.
   ‘The world has changed since the Cold War,’ he said. ‘For the South to be taken seriously into account, we needed to raise the level of commitment.’
   The official said there has been progress in South-South partnerships, with politicians such as Brazilian president Luiz Inacio Lula da Silva taking the lead, but the still group hopes to improve trade, access to Northern markets and the transfer of technologies.
   British Prime Minister Tony Blair will also speak at the Qatar summit, ahead of hosting a G8 meeting in Gleneagles, Scotland next month, where Africa aid will be a prime issue.

Chevron Corp, the world’s No 5 oil company, won approval from US antitrust authorities on Friday to buy Unocal Corp for about $16 billion, after resolving antitrust charges over patents for reformulated gasoline.
   As part of the settlement, Unocal agreed to stop enforcing the reformulated gasoline patents in dispute and will make them public by the time the deal closes, the US Federal Trade Commission said.
   The FTC last year reinstated charges against Unocal, the No. 9 US oil and gas producer, for urging California regulators to adopt standards for cleaner-burning gasoline on which it had applied for patents, accusing the company of making ‘misrepresentations.’
   The FTC alleged the patents could have imposed more than $500 million in additional costs a year on consumers in California, a state where gasoline prices are among the highest in the United States.
   ‘The settlement provides the full relief sought in the (patent) monopolization case and resolves the only competitive issue with the proposed merger,’ the commission said.
   Chevron is now waiting for the US Securities and Exchange Commission to finish reviewing its registration statement, that is necessary to issue shares for the deal. Unocal shareholders will also have to vote on the acquisition.
   The settlement ‘will eliminate expensive litigation over the patents and reduce the costs of producing reformulated gasoline,’ David O’Reilly, chairman and chief executive officer of Chevron, said.
   The deal will give Chevron production assets spanning from waters off Indonesia to Congo. Chevron will also assume $1.6 billion in debt.

Citigroup Inc said on Friday it will pay $2 billion to Enron Corp. investors who accused it of helping the energy trader in a massive accounting fraud, a move that cleans up one of the bank's top legal problems and could pressure others to settle the case.
   The class-action settlement with stock and bond holders is the biggest in the long-running Enron debacle and one of the largest in corporate history, though less than the $2.58 billion Citigroup agreed to pay WorldCom Inc. investors in 2004.
   Analysts said the agreement with Citigroup, the world's largest financial services company, could prompt settlements from other banks facing claims for their roles in Enron's December 2001 collapse.
   'I think this will force the hand of other big banks like JPMorgan Chase (NYSE:JPM - news). Usually once one settles, the others follow,' said Tim Ghriskey, chief investment officer at Solaris Asset Management in New York.
   Besides JP Morgan Chase and Co, other financial institutions involved include Barclays Plc, Credit Suisse First Boston, Merrill Lynch, Canadian Imperial Bank of Commerce, Toronto Dominion Bank, Royal Bank of Canada, Deutsche Bank AG and the Royal Bank of Scotland.
   Representatives from JP Morgan Chase, CSFB, Merrill Lynch, and Deutsche Bank declined to comment while no one was immediately available at the other banks.
   Citigroup did not admit wrongdoing in agreeing to settle.
   It said the pre-tax payment was fully covered by its existing litigation reserves, which were boosted to $6.7 billion after the WorldCom settlement.
   The bank does not plan to adjust its remaining reserves and considers them adequate for its exposure to additional pending Enron and investment research-related lawsuits.
   Citigroup Chief Executive Charles Prince, who took over at the helm of the company in 2003, said it was a key priority for the bank to resolve major cases like this one and 'to put a difficult chapter in our history behind us.'
   'By doing so, we will be better positioned to realize our goals,' Prince said in a statement.
   Citigroup was told by the US Federal Reserve in March to delay any big takeover plans until the company tightened internal controls and addressed a slew of regulatory problems.
   The settlement with Enron investors needs approval from the bank's board of directors, the board of regents of the University of California-the lead plaintiff for investors in the case-and a federal court in Houston. It covers holders of stock and bonds that were issued by Enron between Sept. 9, 1997 and Dec. 2, 2001.
   Tim Woolston, a portfolio manager at Boston Advisors, said the Enron settlement 'clears up history' for Citigroup.
   'Prince is able to close a chapter on a less-than-savory period at the bank, and lets it go forward. He is clearly in fix-it mode. Obviously, there is more to do,' he said.
   Analysts said the settlement was not a market-moving event for Citigroup stock but was positive as it helps the company move forward.
   Citigroup shares slipped 19 cents, or 0.4 per cent, to $47.49 in afternoon trade after small gains in the morning.
   William Lerach, the lawyer representing the University of California, which lost millions when Enron collapsed, said he was pleased with the settlement.
   'It's particularly significant in that several large, similarly situated banks remain as defendants in the case, so this is a step down the road, not the last step on the road.'
   Lerach, who estimates the recoverable damages for Enron investors are in the 'tens of billions of dollars,' declined comment on whether he is in settlement talks with any others.

Halliburton Co said on Friday it was working to resolve a customs dispute in Kazakhstan, where a subsidiary of the oil field services company is the target of a criminal probe.
   Kazakhstan’s state-owned news agency Kazinform reported that customs officials said the Houston-based company must pay $230 million in customs fees.
   A Halliburton company spokeswoman said she believed the amount was about $230,000 because the report also said the payment was 30.5 million tenges, which at 133.26 per dollar on the Kazakh Stock Exchange on Friday equalled about $230,000. But she said she could not immediately confirm the amount.
   ‘We believe we have complied with the Kazakhstan procedures and regulations as we understand them,’ the company said in an e-mail response to a query.
   Kazinform said on Friday Halliburton’s Kazakhstan operations violated customs laws by shifting imported equipment to operations that were not exempt from customs duties.
   Halliburton, the world’s No 2 oil services company, has worked in Kazakhstan for Agip, Kazakhoil Aktobe and Tengizchevroil (TCO), the joint venture between Exxon Mobil, Chevron Corp and KazmunayGas.
   Agip and TCO are exempted from customs duties and taxes. Equipment brought in to the country as part of those companies’ operations is also exempted.
   However, an audit by customs officials showed Halliburton imported goods that were being used on other projects, Kazinform reported, which resulted in the criminal case.
   The company said it was cooperating with the customs investigation into its operations there.
   ‘Halliburton continues to participate in this ongoing assessment of its customs operations and we will continue to work with the customs authorities in Kazakhstan to resolve any issues that may arise as part of this review process,’ the company said.
   ‘Halliburton is committed to doing the right thing wherever we operate,’ it added.
   Halliburton’s operations in Nigeria are also currently being investigated by US and Nigerian authorities for illegal payments made by a former executive of its Kellogg Brown and Root (KBR) engineering unit.

The European Union urged parts of its textile industry on Saturday to adapt to growing competition after the bloc won breathing space in a deal with China to limit imports of Chinese textiles.
   The deal, reached in Shanghai after marathon negotiations between EU trade commissioner Peter Mandelson and Chinese Commerce Minister Bo Xilai, will see China limit the export growth of 10 categories of textile products.
   ‘There is a challenge for our industry to move up the value chain and to find its niche,’ said Mandelson’s spokeswoman, Claude Veron-Reville.
   ‘An important part of the industry has already adapted, another part of the industry needs an additional breathing space, an additional respite, and they will have to make use of it to adjust,’ she said.
   The accord, which came amid a trade row caused by Chinese exports flooding the market after global textile quotas ended in January, does not affect other such products from China and runs for three years.
   However Veron-Reville warned that all bets would be off after 2008, when a special textiles safeguard in China’s accession protocol with the World Trade Organisation (WTO) comes to an end.

As many as nine employees from Morgan Stanley's trading unit are leaving the company en masse to go to a competitor, The Associated Press confirmed Friday.
   According to two sources close to the company, who spoke on condition of anonymity, three managing directors and up to six others have left the company's equity derivatives desk, which handles trading in options and futures contracts and works closely with hedge funds and big institutional investors.
   Company spokeswoman Melissa Stonberg would not confirm the departures, but said it was 'disappointing' whenever an employee leaves the company. She said Morgan Stanley would continue moving forward in an area in which the company sees strong potential.
   Morgan Stanley Chief Executive Phil Purcell, in a recent speech to analysts, highlighted the derivatives group as one of the company's strengths.
   Business news channel CNBC initially reported the departures Friday afternoon, saying that as many as 12 employees were leaving the company for Wachovia Securities. A spokeswoman for Wachovia did not immediately return a call from The AP seeking comment.

Satellite TV firm BSkyB could be about to lock horns with Irish TV group Setanta over rights to show coverage of Premier League Football matches.
   Deputy managing director of Sky Sports, Trevor East, has been approached to lead sports rights acquisitions for Setanta, an FT report says.
   Mr East has not yet decided whether to accept the offer, the report said.
   His departure would be a major blow as BSkyB faces losing exclusive coverage rights to Premier League games in 2006.
   BSkyB and Setanta declined to comment on the report in the Financial Times.
   Rights clash
   A new media rights contract is due to be drawn up next year by the Premier League after pressure from the European Commission (EC) to make sure there will be more than one buyer of rights to live games.
   BSkyB has built its pay-TV empire around the acquisition of sports coverage rights and paid £1.02bn for its current three-year contract.
   That contract, which was split into four packages, was won because BSkyB outbid other broadcasters, but now rival Setanta is reported to be keen to strengthen its portfolio of sports rights.

Rubber: Rubber prices climbed owing to higher demand and the ongoing rainy season in major Asian producing countries. In Osaka, the RSS 3 July contract rose to 162.20 US cents on Friday, from 161.80 cents a week earlier.
   Cocoa: On LIFFE, London’s futures exchange, the price of cocoa for September delivery decreased to 826 pounds per tonne on Friday from 835 pounds a week earlier. On the CSCE, the New York futures market, the July contract stood at 1,409 dollars per tonne on Friday, from 1,425 dollars.
   Coffee: Coffee prices hit a fresh five-year high of 1,300 dollars per tonne on Monday in London—the highest level since December 1999 — on the back of prolonged dry weather in major producer Vietnam. On LIFFE, Robusta quality for September delivery plunged to 1,166 dollars per tonne on Friday from 1,321 dollars a week earlier.
   Cotton: Cotton prices dropped to the lowest point for three and a half months on speculative selling. Cotton fell to 46.10 dollars per pound on Thursday in New York, the lowest level since mid-February.
   Grains and soya: Soya and grains prices mainly fell amid rainfall in producing regions of the United States and Australia.
   Maize for July delivery dropped to 213.50 cents per bushel on Friday from 217.50 cents.
   Soyabeans for July delivery dipped to 671.50 cents per bushel on Friday from 672.50 cents.
   July-dated soyabean meal—used in animal feed—firmed to 213.50 dollars per tonne on Friday from 213.30 dollars.

Gainers, losers at DSE
   The gainers outnumbered the losers at the Dhaka Stock Exchange on Saturday. A total of 159issues traded on the day. Out of which, 69 issues advanced (A-44, B-10, G-1 and Z-14) and 64 issues declined (A-42, B-5 and Z-17) and 26 remained (A-10, B-3 and Z-13) unchanged.
   
   No dividend for Eagle Star shareholders
   The board of directors of Eagle Star did not recommend any dividend for the year 2003-2004. The board has also decided to hold the annual general meetings for the 2003 and 2004 after receiving permission from the High Court.
   
   Padma Cement share trading resumes today
   Trading of the shares of the Padma Cement will resume from today. The board of directors of the company resolved that all the eight sponsor directors of the company will sell their entire holdings of 13,800,000 shares of the company at prevailing market price through Dhaka Stock Exchange within next 30 working days. The ownership of the majority shares of the company will be changed through this transfer of shares.
   
   Ibn Sina Pharma declares 21pc dividend
   The Ibn Sina Pharmaceutical Industry Ltd declared 21 per cent dividend for the year 2004 at its 21st annual general meeting at Gazipur on Friday, says a press release. The chairman of the company, Mojibur Rahman, presided over the meeting held on at the factory premises of Ibn Sina. Abu Naser Mohammed Abduz Zaher, managing director along with directors of the company, was also present. The meeting approved a proposal to increase the company's authorised capital to Tk 50
   crore from Tk 12 crore. The meeting was told that the company earned a pre-tax profit of Tk 28.66 million in 2004, which accounts for 6.79 per cent of its sales profit. In the meeting, Shah Abdul Hannan and Dr AKM Sadrul Islam has been re-elected directors from Group A while Motiur Rahman from Group B.

Handlooms produce 60 crore metres of cloth
The handloom factories produce 60 crore meters of cloths annually which meet 40 per cent of the local demand. Textile and jute minister Shajahan Siraj told this while addressing a government grant distribution function as chief guest on Friday among the flood affected handloom factory owners in Kalihati upazila in Tangail. The Bangladesh Handloom Board organised the function. Presided over by Handloom Board chairman M Abdus Salam, the function was also addressed by board member Shifique Ullah and Kalihati upazila Tanti Samity president Abdul Gani. The minister said the present government has sanctioned Tk 10.52 crore for the flood affected handloom factory owners across the country to provide working capital and help renovate and repair their flood affected
factories.
— UNB

ICCB for autonomous central bank
President of the International Chamber of Commerce, Bangladesh chapter (ICCB) Saturday said the central bank should be autonomous soon for carrying out the reforms in financial sector. ‘Independence or full autonomy of the central bank is sine qua non for carrying out the reforms agenda,’ said the ICC,B president, Mahbubur Rahman, while inaugurating a two- day workshop on credit risk management. He also felt that a transparent mechanism is needed for proper accountability for its (central bank) officials. The Bangladesh Bank should enhance its regulatory and supervisory capacity and guide the scheduled banks to effectively and efficiently compete in the fiercely competitive business environment, he said. Some 90 executives from different banks are participating in the workshop held at the Hotel Sheraton conducted by NC Raghava, an international renowned expert from Singapore on corporate banking and credit risk management.
— New Age

DSE finishes down
All shares price indices on Dhaka Stock Exchange closed higher Saturday as the gainers outnumbering the losers. The DSE all share price index increased by 2.35 points or 0.18 per cent to close at 1307.81 points from 1305.46005 points on Thursday, the previous trading day. DSE General Index up by 3.86 points or 0.22 per cent to close at 1694.67 points from 1690.81 points on Thursday. A total of 159 issues traded Saturday. Of them, 69 gained, 64 declined and 26 remained unchanged. Some 2.96 million shares and debentures worth Tk 254.5 million changed hands Saturday. Market capitalisation stood at Tk 219.13 billion on Saturday.
— UNB

G8 draft sees weaker ‘05 growth
Group of Eight finance ministers expect global economic growth to remain robust in 2005, although it would be weaker than last year, a G8 source told Reuters on Saturday quoting the draft communiqué. The source said the communiqué did not contain a reference to the need for more flexible exchange rates in Asia, possibly because central bankers from the club of rich nations were not attending the meeting in London. The communiqué will say that high and volatile oil prices and global imbalances remain the main challenges to the global economy and will call on all countries to take vigorous action to address imbalances, the source said. The ministers will also call for more fiscal consolidation in the United States and more structural reforms in Europe and Russia.
— Reuters

OPEC output hike ‘taken for granted’: Saudi
Saudi Oil Minister Ali al-Nuaimi has said an output hike of 500,000 barrels per day (bpd) at OPEC’s upcoming meeting was “taken for granted,” Al-Arabiya television reported Saturday. The news channel said Nuaimi made the statement to its correspondent in Norway during a visit to Oslo for talks with his Norwegian counterpart. Al-Arabiya gave no further details, but the remark attributed to Nuaimi is in line with statements made by OPEC’s president ahead of the cartel’s June 15 meeting in Vienna. Sheikh Ahmed Fahd al-Sabah, who is also Kuwait’s energy minister, said on Tuesday he would propose a 500,000 bpd hike in the cartel’s output ceiling if prices remained at current high levels.
— AFP

US announces another mad-cow case
A cow has tested positive for mad-cow disease in the United States, agriculture officials announced late Friday. Further tests are planned to confirm the diagnosis because the animal had previously tested disease-free, Doctor John Clifford of the US Department of Agriculture (USDA) said. ‘Because of the conflicting results... a sample from the animal will be sent to the ... reference laboratory for BSE in Weybridge, England,’ he said . USDA will also be conducting further testing, which will take several days to complete,’ Clifford said in a statement. A confirmation would bring to two the number of known cases of bovine spongiform encephalopathy (BSE) in the United States, where a diseased animal was discovered in the northwestern state of Washington in 2003.
— AFP

Australia refuses to give SIA Pacific access
Australia has delayed granting Singapore Airlines (SIA) access to the lucrative Australia-US route indefinitely as it prepares for a review of the aviation industry that could remove foreign ownership restrictions on Qantas, a report said Saturday. The Weekend Australian newspaper said Prime Minister John Howard phoned his Singaporean counterpart Lee Hsien Loong Friday to tell him of the decision, which follows three years of lobbying for SIA access to the route. SIA had sought to break Qantas Airways’ stranglehold on the route, which it estimates is costing Australia more than 90 million US dollars a year in lost tourism revenue.
— AFP

Coke tests new citrus-flavoured drink in US
Coca-Cola Co, the world’s largest soft drink maker, said on Friday it had begun testing a new citrus-flavoured drink that could compete with rival PepsiCo Inc.’s popular Mountain Dew brand. A Coke spokesman confirmed a report by trade publication Beverage Digest that the company was testing a drink called Vault in parts of North Carolina, Virginia, Michigan, Tennessee and Alabama. The Atlanta-based soft drink maker, struggling to boost sluggish soft drink sales in North America, has not made a decision on a national roll-out of Vault, which is a hybrid soft drink and energy drink.
— Reuters