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Turnover at the Dhaka Stock Exchange on Sunday crossed the Tk 200 crore mark for the first time in the history of country’s capital market.
   The market indicator rose to Tk 206.80 crore on the day breaking its previous highest of Tk 178.98 crore on May 27.
   The prime bourse’s benchmark index also set a new record as it closed at 2007.05 points on Sunday, scaling over its last week’s peak.
   ‘Investors are consolidating their positions ahead of the announcement of the national budget,’ said Sharif Ataur Rahman, vice-president of the DSE, analyzing the pre-budget bull run of stock prices.
   The budget for 2007-08 fiscal is set to be announced on June 7.
   ‘Institutional investors, prime movers of the market, are injecting fresh funds into the market,’ said Salahuddin Ahmed Khan, DSE chief executive officer.
   He said surplus liquidity in the banking system brought increased flow of fund to the stock market, contributing greatly to the extending upward trend of the market.
   Active participation of institutional, retail and foreign investors put the market into a bullish trend from the end of April, he said.
   Turnover continued to stay over Tk 150 crore for the last seven consecutive trading days and over Tk 100 crore for the last 15 days.
   The market recently has been witnessing huge demand for the shares and investors of all categories were hunting for new stocks to put their money, said Salahuddin. ‘Market needs supply of more shares to avoid a possible overheating,’ he cautioned.
   More mutual funds need to be floated to keep the market sound, he said.
   Chittagong Stock Exchange’s turnover on Sunday also increased to Tk 30.29 crore from Thursday’s Tk 29.87 crore.
   On Thursday, DSE turnover was Tk 170.18 crore.
   Meanwhile, stocks on the Dhaka and Chittagong bourses ended mixed on Sunday.
   The DSE general index on Sunday gained 3.46 points or 0.17 per cent to close at 2007.05 points, the index’s all time high. The index crossed 2000 points mark on last Thursday for the first time since its introduction.
   The bourse’s blue chips index, DSE20, however, lost 10.37 points or 0.58 per cent to close at 1784.31.
   The CSE selective categories index gained 5.92 points or 0.18 per cent to close at 3217.56 points.
   The bourse’s blue chips index, CSE30, however, lost 32.09 points or 0.72 per cent to close at 4416.94.
   Of the total 192 issues traded on the DSE, 88 advanced, 79 declined and 25 remained unchanged.
   Of the total 94 issues traded on the CSE, 50 advanced, 38 declined and six remained unchanged.
   Power Grid Company Bangladesh topped the turnover leaders on the DSE with total sales of Tk 27.98 crore.
   Other turnover leaders on the prime bourse were BRAC Bank, Prime Bank, Southeast Bank, Square Pharmaceuticals, Summit Power, Premier Bank, Dhaka Electric Supply Company, Pubali Bank and Exim Bank.

Homebuilders have announced a Tk 500 increase in apartment price per square feet to cope with the soaring prices of construction materials.
   Their apex body, Real Estate and Housing Association of Bangladesh made the announcement at a press conference at the National Press Club on Sunday.
   ‘Many members of our association have already increased their flat selling prices by Tk 500 per square feet on an average and many others are going to implement the increase,’ said SM Anwarul Iqbal, acting president of REHAB.
   Justifying the increase, he said MS (mild steel) rod price has gone up by about 19 per cent, while cement prices surged by about 32 per
   cent, bricks 62 per cent and sand 72 per cent from their 2005 levels.
   Developers have no other option but to pass a part of surging construction costs on to the apartment buyers to stay in the capital-intensive businesses, the REHAB leader argued.
   He suggested that the government should reduce registration fees from 15.5 per cent now to below 5 per cent to lower the burden on middle-income homebuyers.
   Land price increases vary from place to place and the government should consider the variation while it fixes the registration fees, he felt.
   Anwarul said flat sales of REHAB members dropped by 65 to 70 per cent recently as various drives initiated by different government agencies have scared the potential real estate investors and slowed transactions with banks by clients.
   He urged the government to reduce tax and duties on import of key construction materials to help homemakers keep costs within the reach of middle-income people.
   General secretary of REHAB Tanveer Haque Probal said works on some ongoing housing projects might be delayed by six months to one year due to time-consuming design approval process of Rajdhani Unnayan Kartripakkha and non-availability of some construction materials.
   ‘This is why we fear that we may fail to maintain delivery schedules in some cases as per contracts signed with landowners and clients,’ he said.
   The unwanted delays would also add to their expenditures and loan interests, developers also said.
   Among others, the association’s treasurer Syed Sirajul Haque and joint treasurer MGR Nasir also spoke at the press conference.

Group of Eight rich countries, gathering for a summit this week, are under fire from Africa and activist movements that accuse them of reneging on aid pledges at a time when China is looming large on the continent.
   ‘I am sorry to say that the promises made at Gleneagles have not been kept,’ Niger Prime Minister Hama Amadou said at a recent meeting to prepare for the G8 summit, to be held June 6-8 in the German Baltic Sea resort of Heiligendamm.
   It was at a G8 gathering in Gleneagles, Scotland two years ago that the leaders of Britain, Canada, France, Germany, Italy, Japan, Russia and the United States vowed to increase aid to developing nations by 50 billion dollars a year by 2010, of which 25 billion dollars would be earmarked for Africa.
   It was also agreed that the multilateral debt of 18 of the world’s poorest nations would be immediately cancelled.
   While the debt commitment has been met, according to non-governmental organisations, the aid pledge made at Gleneagles has languished.
   Action Aid recently released a report in London sharply critical of G8 compliance with commitments made at the Gleneagles gathering, which was backed by mass pop concerts in cities worldwide calling for an end to poverty in Africa.
   ‘In 2005 there was a massive public mandate worldwide calling for an end to poverty but the G8 are just defrauding the public and failing Africa,’ said Collins Magalasi, Head of Action Aid’s South Africa Country Programme.
   ‘Aid to Africa fell short by eight billion dollars in 2006 despite the G8’s pledge at Gleneagles to increase aid,’ he said, noting that Germany, France and Italy were each responsible for around two billion dollars of that shortfall.
   ‘It’s time for them to back their promises with money,’ he insisted.
   Oxfam International said this week that the G8, under pressure from Canada and Italy, was in fact hesitant even to renew its Gleneagles promises.
   ‘It is outrageous that the countries of the G8 are not even in a position to reiterate their 2005 commitments,’ said Sebastien Fourmy of Oxfam France.
   ‘They are breaking their word and dodging their responsibilities.’
   Oxfam estimates that G8 nations are 30 billion dollars short of meeting their increased aid pledge at a time when their economies are flourishing to a degree not seen for 30 years.

India’s central bank is likely to keep monetary policy tight in the coming months to tame prices after the economy expanded at a faster-than-expected 9.4 per cent in the year to March, analysts said.
   While key interest rates, at a four-year high of 7.5 per cent, may remain stable, analysts said the Reserve Bank of India will ask banks to set aside more cash as reserves in order to cut the amount available to lend for homes, cars and other goods, in order to cool the economy and prices.
   Inflation in India has declined from levels well above six per cent earlier this year to a ten-month low of 5.06 per cent for the week ended May 19, official data showed Friday.
   But that is still above the central bank ‘tolerance zone’ of 4.5 to 5.0 per cent.
   ‘Inflation easing is largely due to the base effect,’ economist DK Joshi of rating agency Crisil told AFP.
   ‘We expect the RBI to maintain a stance of tightening monetary policy. Growth has been strong. The bank needs to ease the demand side of prices.’
   The faster-than-expected growth reported last week means the central bank and the government may revise upwards forecasts of 8.5 to 9.0 per cent growth for the year started April, said analysts, who have also or are ready to revise higher.
   ‘We expect firmness in growth to continue into fiscal year 2008. If strength in credit growth and industrial production numbers is reflected in the first quarter, we could revise upwards our GDP growth forecast of 8.2 per cent,’ said Manika Premsingh, economist with brokerage Edelweiss Capital.
   India’s industrial production grew a record 12.9 per cent in March, from the same month a year earlier, with April data to be released this month.
   Morgan Stanley Asia-Pacific has already revised a conservative gross domestic product forecast higher.
   ‘Domestic demand has slowed only marginally despite tightening measures by the RBI. Hence we are revising up our GDP growth forecast for fiscal 2008 to 7.7 per cent from the 7.5 per cent previously,’ analyst Mihir Sheth of Morgan Stanley, said in a note to clients.
   The RBI has raised short-term lending rates twice in 2007 and has also hiked twice the amount of cash that commercial banks must hold on deposit. This figure now stands at 6.50 per cent, almost double the level from three years ago.
   But despite the tightening, demand for services, goods and industrial commodities such as steel, cement and metals has stayed strong and prices have gained.
   Offsetting high commodity prices worldwide is a stronger rupee against the dollar.
   The local currency has gained nine per cent against the dollar since the start of the year to a near decade high of 40.50, which has helped bring down the cost of major imports such as crude oil.
   But the currency’s gains come on the back of strong capital flows—largely through foreign direct investment and overseas fund flows—that bring a flood of money into the country, which is blamed for driving prices higher.

Financial institutions should revise their lending procedures as a large number of small and medium enterprises still find it difficult to meet requirements for getting loans, speakers at a city seminar said.
   Bankers, business leaders, entrepreneurs and officials of SME Foundation agreed that most of the SMEs operate in traditional and non-formal ways, thus lending rules for them should be fit with such businesses.
   The Federation of Bangladesh Chambers of Commerce and Industry organised the seminar at its conference room on Sunday.
   The SME Foundation chairman, Abdul Muyeed Chowdhury, additional secretary of industries ministry Ayub Miah spoke, among others, at the seminar.
   Moyeed Chowdhury said the foundation does not have any lending programme.
   He said with high lending rates commercial banks can not promote SMEs.
   The foundation would request the Bangladesh Bank to supply cheaper funds for SMEs, he said.
   M Aminuzzaman, president of the Association of Bankers, Bangladesh, said the SME Foundation should prepare profiles of some viable small projects and make them available to potential entrepreneurs.
    ‘It is difficult for most of the SMEs to arrange required papers for loans as they operate their business in traditional ways,’ he said.
   Aminuzzaman, managing director of National Bank Limited, observed that banks prefer to do business with existing SMEs but they should encourage new enterprises with technical and market potentials.
   Presenting the keynote paper, professor MA Baqui Khalili of department of Finance of Dhaka University, said lack of collateral and high transaction cost hinder bank credit facilities to SMEs.
   Ayub Miah said lending institutions should be innovative in developing financial products for SMEs.

Exim Bank declared 25 per cent stock dividend for 2006 at its 8th annual general meeting held in Dhaka on Sunday.
   Md Nazrul Islam Mazumder, chairman of the bank, presided over the meeting, says a press release.
   Members of the board AKM Nurul Fazal Bulbul, Md Abdul Mannan, Md Nurul Amin, Abdullah Al-Zahir Sapan, Mohammed Shahidullah, professor Suraiya Begum, sponsor and former director Md Nazrul Islam Swapan, Mohammed Abdullah, Md Altaf Hossain, Md Mazakat Harun, Aminur Rahman Khan, Md Nur Hossain, managing director Mohammed Lakiotullah, additional managing director Kazi Masihur Rahman, DMDs Ekramul Haque, Md Sirajul Islam Bhuiyan and company secretary Md Golam Mahbub were present at the meeting.
   A large number of shareholders attended the meeting and expressed their highest satisfection to the achievement of the bank during the year and put their valuable sugges- tion and comments for better performance of the bank in future.

The Retailers Association of New Zealand will extend support for promotion and marketing of Bangladeshi product in the country’s markets.
   This was disclosed by association president Barry Hellberg during a meeting with Bangladesh high commissioner M Humayun Kabir Sunday morning.
   He also suggested for exchange of business delegations, holding of trade fairs and seminars to familiarise the business potentials of Bangladesh and its products to market in New Zealand.
   In this context, he offered to connect the association members with any such effort or mutual benefit.
   In response, the high commissioner thanked him for his readiness to work with Bangladesh for promoting business in New Zealand.
   He then briefed the association president about the range of export products from Bangladesh such as garments, pharmaceuticals, ceramics, light engineering and environment friendly jute products, which have good potentials in his country’s market.
   The high commissioner also informed that Bangladesh was a leading producer of RMG and had been competing successfully in the global market in the post MFA phase out period with continuing growth.
   Likewise pharmaceutical and ceramic products along with light engineering products have been creating more in road in the global market in recent time.

The latest economic data point to an acceleration in the US economy after the weakest growth in over four years, but some analysts say a full recovery is not yet in sight.
   Friday’s Labor Department report showing a surprise gain of 157,000 jobs in May along with other robust data appeared to validate the view of the Federal Reserve that the world’s biggest economy will gather steam over 2007, with strong consumer spending offsetting a slump in housing.
   If that view proves correct, the sluggish 0.6 per cent growth pace in gross domestic product for the first quarter—the worst since the fourth quarter of 2002 — would represent a low point from which a rebound has already begun.
   The report on payrolls growth, which showed the unemployment rate steady at 4.5 per cent, ‘adds to the evidence that the economy is bouncing back in the second quarter,’ said economist Nigel Gault at research firm Global Insight.
   Gault said he sees economic growth in the range of 2.5 to 3.0 per cent in the second quarter after the ‘anemic’ pace of the first quarter.
   Data show resurgent activity in other segments of the economy as well.
   A survey by the Institute of Supply Management showed a rise in factory activity, with the national manufacturing index rising to 55 per cent, well above the 50 per cent reading signifying expansion.
   Consumer spending—the main driver of economic activity—rose 0.5 per cent in April, according to a separate Commerce Department report Friday.
   Stephen Gallagher, an economist at Societe Generale in New York, said he has now scrapped his prediction that the Fed would cut rates to stimulate flagging growth.
   ‘The rise in manufacturing activity and the solid underpinnings of employment as we approach mid-2007 indicate it is time to officially change our old forecast of modest rate cuts to an unchanged rate view through to the end of 2007,’ Gallagher said.
   ‘More and more, we are convinced the mid-cycle slowdown has ended and the economy is currently firming to trend. Against a backdrop of stubborn inflation and tight labor markets, our analysis going forward will be more focused on the timing of rate hikes, not cuts.’

A much-vaunted plan to revive the fortunes of the struggling European aircraft manufacturer Airbus, unveiled four months ago in response to damaging production delays, is taking its time getting off the ground.
   Airbus workers and management in France and Germany, where the principal assembly sites are located, are only now meeting to discuss details of the overhaul, known as Power8 and seen as critical to the manufacturer’s future.
   The sluggish pace of implementation appears to reflect the pan-European make-up of both Airbus and its parent company, the European Aeronautic Defence and Space Company.
   Power8 was publicly announced on February 28 in the face of delays averaging two years in the delivery to clients of the A380, the world’s largest airliner and a key component in Airbus’s bid to catch up with US rival Boeing.
   The setbacks saddled Airbus with its first-ever operating loss last year and slashed net profit at EADS to 99 million euros (133 million dollars) from 1.676 billion in 2005.
   The recovery plan, expected to cost EADS 688 million euros, aims to trim costs by 30 per cent at Airbus, largely through the elimination of 10,000 jobs over the next four years.
   Employees and management in France are to hold their first meeting to discuss the scheme, which has already sparked strikes by thousands of Airbus workers in France, Germany, and Spain, at company headquarters in Toulouse, southern France on June 6.
   Similar talks have yet to be held in Germany but are to get underway at some unspecified time this month, according to Airbus. Consultations have already taken place at sites in Spain and Britain.
   ‘The application of the (Power8) measures will not start until the national consultations have been completed,’ an Airbus source said.
   Administering Airbus over the years has been complicated by the shareholding structure at EADS, where the principal interests are held by private and public entities in France and Germany.
   The French state holds 15 per cent, while the French media and defence group Lagardere owns an equivalent stake that it is reducing to 7.5 per cent.
   On the German side, automaker DaimlerChrysler has 15 per cent and 7.5 per cent is held by state investors, including regional governments.
   Under a shareholder pact established when EADS was created in 2000, voting rights are held by the private companies, which in theory take major decisions for the group, although in reality the governments retain major influence.

A long battle came to a close on June 1 when the European Union and non-member Switzerland formally removed barriers to the trade in cheese, a product that stimulates national pride and commercial acumen as much as tastebuds.
   Smelly, soft French cheeses—and other EU varieties—and hard Swiss cheeses with or without holes will be sold in shops on each side of the border on equal terms from now on, without being weighed down by import tariffs or buoyed by export subsidies.
   The tiny Alpine nation is counting on its traditional rural cheesemaking skills and some renowned names to resist an invasion of cheaper Camembert, Gorgonzola, Gouda or Manchego from the 27-nation EU.
   Emmental—and its famed holes—Gruyere and Appenzell were already thriving abroad, well before Swiss producers could benefit from more competitive pricing in shops in their biggest European export markets.
   ‘We believe the opening of the markets presents us with greater opportunities than risks,’ said Ruth Stadelmann Kohler, a spokeswoman for Emmi, the largest Swiss dairy firm, with an eye on the EU’s 370 million consumers.
   Cheese is Switzerland’s top agricultural export. Last year, the Swiss sold some 56,068 tonnes abroad and imported just 33,346 tonnes of foreign cheeses, according to official trade data.
   In Switzerland, patriotism reaches well beyond a typical winter fondue: local production accounts for 78 per cent of the annual 20 kilogrammes (44 pounds) of cheese the Swiss eat.
   However, some producers fear that the removal of tariff barriers and the resulting decrease in prices for foreign cheeses will ultimately nibble away at domestic production, especially industrial-scale mass produced cheeses.
   Swiss-made ‘French’ Brie or ‘Italian’ mozzarella have the most to fear from foreign competition, rather than traditional Swiss varieties, according to Swiss agriculture ministry official Christian Haeberli.
   The lifting of trade barriers on cheese was negotiated ten years ago and started to intervene in 2002 with a gradual lowering of import tariffs in Switzerland and the EU, he explained.
   ‘Everything was prepared a long time ago. If there is some unease, it’s only among those who were sleeping,’ Haeberli emphasised.
   Francesca Heininger, a spokeswoman for Switzerland’s cheese marketing board, said gourmet consumers of traditional Swiss cheeses ‘should continue to look for the kind of quality they’ve grown up with.’

The fear of power cuts soars when sweltering summer heat arrives in India, spurring demand for generators as electricity-starved residents increasingly produce their own power.
   Except for VIPs in official bungalows, everyone from stall-holders to former ambassadors are hit by the power outages, and those who can afford it are increasingly making alternative arrangements.
   The shopkeepers at New Delhi’s popular Janpath tourist bazaar are a case in point, as all now have portable petrol generators.
   When the power fails, sometimes for hours on end, the road becomes a thicket of cables and a cacophony of chugging machines.
   ‘Business people cannot sell without light,’ said Satinder Grover, 55, who runs a traditional Indian shoe store. ‘Power is a necessary item, the goverment must take care.’
   The government says the gap between electricity supply and demand nationwide averages up to 14 per cent at peak times. Even so not everybody gets power—only 44 per cent of rural Indian households have access to grid electricity.
   Business body Assocham predicts generator sales will jump more than 20 per cent this summer. Private generators currently supply 25,000 megawatts, the power ministry estimates, equal to 20 per cent of India’s grid power.
   It is no longer just businesses that invest in large generators—households are increasingly turning to private power sources.
   In May, former Indian diplomats installed back-up diesel generators at their east Delhi retirement complex, built two decades ago.
   ‘At that time maybe there was an expectation things would get better,’ said Kalarickal Pranchu Fabian, a former ambassador who now heads the complex’s management committee.
   ‘Over the years people have become less convinced they could expect an improvement in the immediate future,’ said Kalarickal, who estimated that the complex suffered 300 hours of outages last year.
   About 150 families signed up for the back-up power scheme, each contributing up to 50,000 rupees (1,190 dollars). The generator power will cost almost 10 rupees a unit, twice that of grid power.
   But this summer residents of the complex will not have to worry about whether they can use their air-conditioners when temperatures pass 40 degrees Celsius (101 degrees Fahrenheit).
   There just isn’t enough power to go around, says Shubhra Puri, editor of electricity magazine ‘Power Line’. India only has about 600 kilowatt-hours of electricity per capita—half as much as war-torn Iraq.
   ‘We are so power-starved that no matter whatever little management jugglery they do, there is going to be a blackout,’ said Puri.
   It is no wonder that even the country’s leader despairs of whether there will be enough power to keep the economy growing at nine per cent a year.
   ‘The scene in the power sector does not look very promising,’ Prime Minister Manmohan Singh said last week. ‘One area in which performance has not been up to the mark is in capacity addition.’
   The power ministry says everyone will have an electricity connection by 2012 and that generation will rise to 212,000 megawatts.
   That would involve adding 80,000 megawatts in the next five years—four times as much as India was able to add in the last five years.
   Playing it safe, most new housing complexes being built around sprawling Indian cities include generator backup.
   Electricity consultants like Keshava Narayan are working overtime to keep up with demand.
   Narayan, who helped the retired diplomats install their generators, did the same for the capital’s colonial-era Gymkhana Club.
   Some towns have started including generators in their planning.
   In Pune, in western Maharashtra state, industries are asked to use generators at peak times, even when their grid power has not cut out. Their share of the grid power then goes to residents who would otherwise face cuts.
   Consumers who use more than a fixed amount of electricity each month pay a surcharge to the companies to reimburse them for fuel.

A US anti-terrorism official warned Swiss banks not to do business with Iran on Saturday, saying Iranian officials sought to conceal their identity in deals designed to fund Iran’s uranium enrichment program.
   Stuart Levey, the US Treasury’s top anti-terrorism official, said he came to Switzerland as part of a European tour to warn banks that they risked tarnishing their reputations if they did business with Iran, OPEC’s second-largest oil producer.
   ‘We delivered new evidence that implicates Iranian financial institutions in the uranium enrichment program,’ Levey said in an interview in French-language daily Le Temps.
   ‘We came to offer new information to Swiss bank executives to make them aware of the risks to their reputation they could run by maintaining financial relations with Iran.’
   Washington is leading efforts to isolate the Islamic Republic over its atomic program and has slapped sanctions on two Iranian banks. United Nations sanctions have targeted one bank. Iran denies US claims it aims to build the bomb.
   US officials have worked hard behind the scenes to ensure that Iran cannot raise the cash it needs to finance key oil projects as well.
   Switzerland’s largest bank, UBS AG, said last year it would cut all ties to Iran, an rare move in a country that has long proven a safe harbor for international deposits.
   Rival Credit Suisse said it would not accept any new business but would not sever old ties.
   Levey said banks in Switzerland—the world’s largest haven for foreign cash and proud of its tradition of banking secrecy—had been cooperating well with US efforts but that Iranian parties were seeking to conceal their identities.
   ‘Cooperation is good but it takes a continuous effort to prevent development of the Iranian financial system, which is attempting by any means possible to remove the names of the people who are conducting transactions,’ he told the paper.

These are definitely bitter times for Indian sugar millers, who are seeing losses mounting on account of production exceeding consumption, besides lack of demand in export markets.
   With carry over stocks of 4 million tonnes and production expected to be 27 MT in the current season ending September this year against domestic demand of 19 MT, things only appear more bleak going ahead.
   According to results of 32 listed companies in the sugar sector, as many as 21 firms reported a loss aggregating to Rs 114.07 crore, while only 11 of them earned profits during the quarter ended March 31, 2007.
   Interestingly, of the 21 sugar mills that went into red in the January-March quarter, as many as 16 firms including the likes of EID Parry, DCM Shriram, JK Sugar and Oudh Sugar Mills had reported profits during the quarter ended December 31.
   The companies that bore the brunt in the March quarter were Uttar Pradesh-based Simbhaoli Sugars with a net loss of Rs 16.01 crore, south India’s EID Parry Rs 10.72 crore and Uttam Sugar Mill Rs 15.91 crore.
   Millers blamed their woes on the government’s delayed decision to lift the ban on sugar exports.
   The government, which had imposed the ban in July 2006 due to inflation concerns, had lifted it in January after satisfying itself that output would far exceed consumption.
   Companies, however, contended that it was too late for them to strike export deals owing to falling global prices.
   Surplus stocks of the sweetener also resulted in margins of the companies falling freely. ‘Free sale sugar prices fell to a level below cost of production in March quarter,’ Simbhaoli Sugar said in a statement earlier.

US auto sales steadied in May to show surprising strength in the face of high gas prices and a weak housing market, led by gains for industry leaders General Motors Corp. and Toyota Motor Corp.
   Ford Motor Co posted a 10 per cent sales drop as it pulled back from low-margin sales to rental agencies and failed to make up for the lost volume in its US showrooms.
   With its seventh consecutive monthly sales decline, Ford also surrendered the No. 2 spot in the US market for the year-to-date to Toyota.
   Across the industry, fuel-efficient passenger cars continued to outsell trucks. But analysts said the surprise was that overall sales were up slightly, especially after a weak April that had stoked fears of a deepening slump.
   ‘We thought auto sales may be weaker because of high gas prices,’ Global Insight analyst Rebecca Lindland said. ‘We are very pleasantly surprised. The consumer seems to be pretty resilient.’
   Toyota shot past all its rivals with a 10 per cent sales gain, while GM also topped Wall Street expectations with a 5 per cent rise. Nissan Motor Co sales grew 3 per cent.
   Chrysler Group posted a sales rise of less than a per cent, capping a month in which it announced a deal to be acquired by Cerberus Capital Management from Germany’s Daimler.
   Apart from Ford, Honda was the only automaker to report lower sales with a 1.4 per cent decline. Together the top six automakers account for almost 85 per cent of the US market.
   Per centage sales changes as reported were adjusted for an additional selling day last month compared to a year earlier—a reporting style favored by GM, Toyota and others.
   Industry-wide sales for May ticked up to 16.16 million units on a seasonally adjusted, annualized rate. That was up from 16.15 million units on the same basis a year earlier, according industry tracking firm Autodata Corp.
   ‘As fuel prices and consumer confidence rose, the industry saw a move to passenger cars, with retail business posting sharp gains over a very challenging April,’ said Jim Lentz, Toyota’s US sales chief.
   Alex Rosten, an analyst at Edmunds.com, said some of the May sales gains may have represented delayed demand from April, but other industry executives said the results suggested a stronger start to the summer, when automakers look to clear out inventory and make room for new models.
   Ford sales analyst George Pipas said the May sales result for the industry was ‘encouraging,’ adding that Ford itself appeared on track to halt a fall in its own market share at above 14 per cent as it restructures.
   ‘I think most manufacturers saw sales as having rebounded from April levels,’ Pipas told reporters and analysts.
   GM pointed to areas of strength in its own results, including a 2 per cent rise in average sales prices, but conceded for the first time that the industry was likely to be weaker this year than last.
   GM cut its forecast for US light vehicle sales to less than 16.5 million units in 2007, down from 16.6 million sold in 2006 and in line with many analyst forecasts.
   The top-selling US automaker had begun the year with
   the more optimistic view that sales could reach 16.7 million units.
   ‘This downward revision is not a surprise, given the headwinds affecting the industry in the spring selling season and given what we anticipate will be the effects of the housing correction,’ GM chief sales analyst Paul Ballew said.
   Ford said it would produce 640,000 cars and trucks in the third quarter in North America, barely changed from the same period a year ago.
   GM said it would produce 1.075 million vehicles in the third quarter, up 2 per cent from a year earlier.
   JP Morgan analyst Himanshu Patel said the GM third-quarter production forecast was stronger than some had expected. ‘Overall we expect a positive reaction,’ he said in a note for clients.

After an acquisition binge that transformed the smallest Baby Bell into a telecommunications heavyweight, AT&T Inc. is undergoing another change Sunday: a new chief executive.
   Randall Stephenson, 47, rose through the ranks of AT&T and previously served as its chief financial officer and chief operating officer. He is credited with helping position the company so it could afford the buying spree that turned it into the nation’s largest provider of traditional phone, wireless and broadband services.
   Stephenson takes over for Edward Whitacre Jr. in time for what might be the most hyped telecommunications device launch in a generation, Apple Inc.’s iPhone. AT&T — whose wireless division was formerly known as Cingular — will be the exclusive carrier for the combination cell phone, portable music player and Web device when it launches in the US later this month.
   ‘Whatever your expectations are from this device, they are probably too low,’ Stephenson said in a recent interview. ‘It changes how we think about the PDA (personal digital assistant), the iPod and the cell phone interacting.’
   More than 1 million people have signed up through AT&T’s Web site for a call when the iPhone becomes available, Stephenson said. It will be available in two models, priced at $499 or $599.
   It’s not clear how many of the devices will be available at launch, but Stephenson said, ‘I’ll be really disappointed if there’s not a shortage.’
   AT&T plans to grow through wireless, using that business segment to drive sales of its traditional phone, high-speed Internet and other services.
   ‘The company is going to be positioned as a wireless-centered company,’ Stephenson said. ‘Once you have mom and dad and the kids on wireless, then you get them on broadband and television.’
   He said he doesn’t plan major departures from the path San Antonio-based AT&T is following, after takeovers of BellSouth Corp., the Cingular Wireless business and the AT&T long-distance business. The BellSouth acquisition gave it full control of Cingular.
   Most of the major consolidation in the telecommunications business is done, he said.
   ‘No hard left or right turns. We’ve set the direction of this business over the last two to three years,’ he said.
   AT&T’s stock has been trading at five-year highs, but despite the excitement around the iPhone, Stephenson still faces significant challenges.

State-owned Saudi Basic Industries Corp said Saturday it would fund its 11.6 billion dollar purchase of General Electric’s plastics division with bonds and loans.
   ‘I expect the bonds will make up 25 per cent and the bank loans the remaining 75 per cent,’ said SABIC chairman Prince Saud bin Thunayan Al-Saud, adding that the bonds would be sold in the United States and Europe.
   The transaction marks one of the largest acquisitions of a US business by a Middle East company.
   Saud said GE Plastics would be completely transferred to SABIC in the third quarter of this year.
   GE Plastics produces plastic resins used in the automotive, healthcare, building and construction, telecommunications and other sectors. Saud said SABIC intends to boost production to 120 million tonnes from 50 million by 2020.
   SABIC is the Middle East’s largest public company by market capitalization and one of the world’s 10 biggest petrochemicals manufacturers.
   Its US arm, SABIC Americas, is based in Houston, Texas, and already runs some operations in the United States, but the deal with GE will significantly enlarge its global footprint, including in the fast-growing Chinese and Indian markets.

The burgeoning property boom in Dubai looks set to continue until at least 2010, a report released on Sunday said, dismissing widespread forecasts of a looming correction in property prices.
   The report by Dubai-based businessman Fouad Bardawil, for the Middle East Economic Digest, estimated that 181,000 new residential units would be needed by 2010 but that only 175,000 would be available.
   MEED said demand would outstrip supply because of continuing population growth in the wealthy emirate, one of seven comprising the United Arab Emirates.
   It said Dubai’s population could rise to 2.5 million by 2010 from 1.4 million in 2006 due to expansion in the business sector.
   A falling occupancy rate was also a factor behind the demand for more housing, MEED said, predicting that the average number of residents per unit by 2010 would be 5.5, down from 6 in 2000.

A Beijing court has ordered three Chinese companies to pay French clothing giant Lacoste a total of 760,000 yuan (99,000 dollars) in damages for trademark infringement, stat media said Sunday.
   The decision from the Beijing No.1 Intermediate People’s Court follows a suit filed by La Chemise Lacoste against the three companies in July last year, the Xinhua news agency reported.
   The court decided that one of the defendants, Guangzhou Taie Dress Co. Ltd., had a registered “Golden Crocodile” trademark that consisted of a crocodile, waves and two Chinese characters, according to Xinhua.
   However, the company only used or highlighted the image of the crocodile, making it appear almost identical to Lacoste’s logo, Xinhua reported, citing a spokesman for the court.
   The court ordered Taie to stop producing and selling clothes with the crocodile logos and fined it 500,000 yuan, Xinhua said, citing the court’s ruling.
   Beijing-based Nianniangao Garments Co. Ltd., was fined 200,000 yuan, and Beijing Urban-Rural Trade Center Co. Ltd. 60,000 yuan for failing to confirm the legality of the trademarks on products they sold, according to Xinhua.
   Flawed protection of intellectual property rights in China is a constant top concern among foreign companies, especially producers of luxury items whose main asset is the exclusivity of their brand.

Shekhar Bajaj-spearheaded Bajaj Electricals Limited plans to outsource manufacturing of gas appliances and water dispensers as per its specifications, which will be marketed under its own brand.
   The company plans to introduce these two new lines of products into the market by this year-end.
   ‘Bajaj Electricals will design the products and get them manufactured outside. We are contemplating tie-ups with manufacturers in Himachal Pradesh and Uttaranchal because tax benefits are available there,’ the company’s Executive Director R Ramakrishnan told PTI here today.

Asian currencies ended the week mostly flat against the dollar with markets tending to domestic concerns and feeling on the strength of the greenback mixed.
   Japanese Yen: The yen in the past week lost earlier gains to the dollar, which was supported by robust US economic data and ahead of the highly anticipated improvement in US payrolls, dealers said.
   The Japanese yen stood at 121.86 to the dollar Friday, down from 121.16 yen a week ago.
   Australian Dollar: The Australian dollar is expected to remain rangebound next week, with local interest rates likely to remain on hold and market attention focused on developments in China, dealers said.
   The Aussie was trading at 82.87 US cents at 5:00 pm Friday, almost a cent up on the previous week’s 81.95 US cents.
   CommSec chief equities economist Craig James said the interest rate differential between Australia and the US looked set to remain steady for the foreseeable future.
   James did not expect falls in the Chinese share market caused by a government hike on charges for stock trades to have a major impact on the Australian currency.
   New Zealand Dollar: The New Zealand dollar ended the week at 73.96 US cents, up sharply from 72.55 the previous Friday.
   On Thursday next week, eyes will be on the central bank decision on interest rates after it hiked rates by a quarter per centage point at each of its last two reviews.
   Chinese Yuan: The yuan closed at 7.6460 to the dollar.
   Hong Kong Dollar: The US-pegged Hong Kong dollar ended the week at 7.8097, from 7.824 a week earlier.
   Indonesian Rupiah: The rupiah ended the week’s trading weaker at 8,830/8,840 to the dollar.
   Philippine Peso: The Philippine peso was at 46.05 to the dollar.
   Singapore Dollar: The dollar was at 1.5296 Singapore dollars.
   South Korean Won: The won closed at 928.40 won per dollar.
   Taiwan Dollar: The Taiwan dollar rose 0.69 per cent in the week to June 1 to close at 33.009 against the US dollar.
   Thai Baht: The Thai currency closed at 34.56-58 to the dollar.

Profit
   Sonargaon Textiles
   As per audited accounts as on December 31, 2006, the company has reported net profit of Tk 11.47m with EPS of Tk 11.57 as against Tk 11.39m and Tk. 11.48 respectively as on December 31, 2005.
   
   Dividend
   Bengal Biscuits
   The board of directors did not recommend any dividend for the year 2005-2006. Annual general meeting of the company will be held on June at the Barisal Auditorium, Band Road, Barisal. Book closure on June 18 to 28.
   
   Transaction
   Jamuna Bank
   Md Fazlur Rahman, one of the directors of the bank, has reported his intention to buy 15,000 Shares of the bank at prevailing market price through stock exchange within next 30 working days.
   Southeast Bank
   Rose Corner (Pvt) Ltd and Mutual Trading Co Ltd both are corporate sponsors of the bank as well as Monzoor Ahmed Chowdhury another sponsor of the bank, have reported their intention to sell 50,000, 50,000 and 11,400 shares out of their total holdings of 1,33,436, 2,71,965 and 57,017 shares of the bank respectively at prevailing market price through stock exchange within next 30 working days.
   
   Trade
   In Tech Online Ltd.
   Trading of the shares of the company will be allowed only in the spot market and block/odd lot transactions will also be settled as per spot settlement cycle with cum benefit from June 4 to. Trading of the shares will remain suspended on record date on 7.
   Aziz Pipes
   Trading of the shares of the company will also be allowed in spot market from June 4 to 11 as book closure will start from June 13.
   Mercantile Insurance Co. Ltd.
   Normal trading of the shares of the company will resume on June 4 after record date.
   Eastern Insurance
   Trading of the shares of the company will also be allowed in spot market with cum benefit from June 4 to 5 as book closure will start from Jun 7.
   Agran Insurance co. Ltd.
   Normal trading of the shares of the company will resume on June 4 after record date.
   Himadri
   Trading of the shares of the company will also be allowed in spot market with cum benefit from June 4 to 5 as book closure will start from June 7.
   Eastern Cables
   Trading of the shares of the company will also be allowed in spot market with cum benefit from June 4 to 5 as book closure will start from June 7.
   
   AGM
   Eastern Cables
   The company has further informed that the 20th annual general meeting of the company will now be held on June 24 instead of 21 and book closure will be from June 7 to 24 instead of June 7 to 21. Other information of annual general meeting as announced earlier.
   
   Response to DSE query
   Bata Shoe
   In response to a DSE query, the company has informed that there is no undisclosed price sensitive information of the company other than dividend information approved in the last AGM which was announced earlier.
   Source: DSE, CSE

South Korean oil firm plans foreign purchase
South Korea’s state-run oil developer is seeking the acquisition of a foreign oil firm this year in an effort to compete with global players, a report said Sunday. The planned acquisition would help boost the self-sufficiency rate of crude oil and gas being produced in fields that were wholly or partially owned by South Korean companies, Yonhap news agency reported. Korea National Oil Corp has just seven fields in six countries that produce oil, with 21 others in the developmental stage or under exploration. ‘Buying up a company can help the KNOC immediately control an operational field,’ an unidentified senior official was quoted saying. KNOC executive vice president Poo Bum-Suk told Yonhap that while his company was no match in terms of manpower and resources to majors like BP and Shell, it had acquired solid technology knowhow.
— AFP

Greenspan promises surprises in Sept book
Former US Federal Reserve chairman Alan Greenspan promised on Friday to deliver surprises and insights about the future in an eagerly awaited book, but he gave little away for now beyond saying interest rates were low. Greenspan, who can still move markets with the slightest word, said he would bring to bear the lessons learned steering the world’s biggest economy to discuss his views on the future in the book to be published in September. He said the prevalence of low interest rates throughout the world was one of the things that surprised him as he came to the conclusion of his book, ‘The Age of Turbulence.’
— Reuters/bdnews24.com