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The Securities and Exchange Commission on Sunday re-fixed the maximum rate of margin loan for merchant banks at 1:1 with effect from February 10.
   ‘We have re-fixed the rate with a view to improving the liquidity situation at the market,’ said Mansur Alam, member of the SEC.
   Earlier on November 25, the SEC lowered the margin loan rate at 1: 0.5 for the merchant banks, withdrawing its earlier order through which the regulatory body stopped merchant banks from providing loan to their clients from November 20, 2006.
   Mansur said the commission raised the margin loan ratio to its previous level as the market had recently been going through somewhat shortage of liquidity inflow.
   On October 23 last, the SEC under amended rules fixed the loan ratio at 1:1 for the merchant banks. Prior to the amendment there was no SEC guideline on offering margin loans and the merchant banks followed their internal code of conduct to approve loans to their clients.
   The ratio depicts the value of the collateral in relation to the loan. As the ratio is set at 1:1, the clients will get loans amounting to the value of the collaterals.
   To improve the liquidity situation in the market, the SEC also reintroduced financial adjustment facility on last Wednesday against the trading of shares of ‘A’, ‘B’, ‘G’ and ‘N’ categories effective from yesterday (Sunday).
   The SEC’s move came after a group of retail investors demonstrated in front of the Dhaka Stock Exchange amid continuous fall in the share prices.
   Farhad Ahmed, executive director of the SEC, said normal behaviour of the market after reintroduction of the financial adjustment facility encouraged the commission for raising the margin loan ratio to its previous level.
   He said the commission reintroduced the financial adjustment facility with a view to improving the liquidity situation in the market which had recently been going through somewhat shortage of liquidity due to selling off shares of two state-owned companies — Jamuna Oil Company and Meghna Petroleum.
   Under the financial adjustment or netting facility, the investors are allowed to purchase stocks with the sale proceeds immediately after completing a sale.
   ‘Earlier the commission had to take different measures to cool down the fast swelling stock market by curbing funds flow to it,’ said Mansur referring to the SEC’s market containing moves taken late last year.
   The commission reintroduced the facility and raised the margin loan ratio considering the changed situation, the SEC member added.

The Securities and Exchange Commission has suspended the share trading of the United Commercial Bank over the bank’s annual general meeting related issues, said a senior official of the stock market regulatory body.
   ‘We have asked the bourses on Thursday to keep suspended the trading of shares of the bank until further communication,’ said Anwarul Kabir Bhuiyan, executive director of the SEC.
   He said the commission kept the share trading of the bank halted for the interest of the investors and the capital market.
   The bank on Sunday submitted requisite documents of its AGM held on Thursday, said Anwarul Kabir adding that ‘The commission is yet to scrutinise the documents.’
   The Dhaka Stock Exchange and the Chittagong Stock Exchange on Thursday halted trading of the shares of United Commercial Bank over the bank’s annual general meeting related issues, said DSE and CSE officials.
   ‘We halted the trading of the bank’s shares after the first session of the Thursday’ trading,’ said Salahuddin Ahmed Khan, chief executive officer of the DSE.
   Md Atiquzzaman, general manager of the CSE, said, ‘We will take next course of actions after getting the SEC’s instruction.’
   The UCBL reportedly at its 23rd AGM held in a city hotel on Thursday saw wrangle among the shareholders of the banks. It was pending AGM for the year 2006.
   Earlier, on January 2, the SEC formed a committee to probe the unusual trading of the shares of the United Commercial Bank Ltd at the stock exchanges.
   Anwarul Kabir said the two-member committee was asked to submit its reports in 30 working days. The SEC’s deputy directors, M Rezaul Karim and M Abul Kalam, are the members of the committee.
   ‘The committee is working to probe the matter,’ he told New Age on Sunday.
   In late November, the High Court directed the UCBL to hold the overdue AGMs for the years 2003, 2004, 2005 and 2006 before December 31, 2007. Later the court extended the date up to January 31, 2008.
   The bank held its 20th, 21st and 22nd AGMs for the years 2003, 2004 and 2005 on January 10, sources said.

The International Finance Corporation will support banks to promote energy efficiency as a new business and investment product in Bangladesh, an executive said in Dhaka.
   The World Bank’s private sector lending arm has been in talks with a number of private commercial banks to sell the idea of developing energy efficiency as a viable market for the private sector as well as lenders.
   ‘We would like to help banks understand the energy efficiency market. We will support them to attract new investment and create new clients in the area,’ said Rachel Kyte, IFC director for environment and social development.
   The global agency, which already has a good presence in Bangladesh’s energy sector, will help banks introduce new technologies for efficient use of energy resources and encourage private sector ventures in the area. ‘We are still in a planning stage,’ she said to a group of journalists Sunday, offering the country’s banking sector ‘consulting expertise’ to understand the market and technologies as well. She also saw a good business prospect of renewable energy sources in Bangladesh.
   The government needs to change its energy regulations and focuses to encourage exploration of new sources of energy to reduce dependence on gas and to secure the country’s energy future, the IFC director said.
   She cited Indian success in exploring renewable energy sources, particularly wind power, through some changes in the regulatory policies.
   ‘You can create a condition for exploring other energy options through some regulatory changes,’ Kyte said at the IFC office in Dhaka Sunday.
   She said she does not believe renewable energy will be a ‘magical solution,’ but stressed that Bangladesh should have a mix of energy sources like gas and coal depending of economic, social and environmental viabilities.
   She hoped that solar energy would have a good market in Bangladesh in near future given the recent proliferation of solar panels in areas, which are left out of the national grid coverage.
   Ensuring efficient use of energy resources and limiting environmental and social risks during exploration and mine development are among the IFC’s interests in developing countries including Bangladesh.
   ‘Environmental regulations are already there. This government is committed to ensure environmental standards,’ she said, and pointed out that the costs of compliances and risk mitigations needed to be looked into.

China’s grains output will remain stable at around 500 million tonnes this year if there are no major natural disasters, the State Grain Administration said on Saturday.
   The ongoing snow, the worst in the country in five decades, has rendered limited effects on grains production, Chen Xiwen, head of the Office of the Central Leading Group on Rural Work, told the media.
   ‘The ratio of grains reserves to consumption in China is much higher than the safe line recognised internationally,’ said the SGA in a written reply to a Xinhua interview request, without disclosing details.
   The grains watchdog said the country produced 501.5 million tonnes of grain in 2007, the fourth consecutive year of increase despite months of severe drought. The year ended with a relatively high level of grain reserves.
   SGA figures show China consumed 5 million tonnes of grains in 2006. Grain consumption was expected to have grown steadily in 2007, but with a narrower gap between supply and demand, according to the administration.
   A long-lasting drought, the worst in a decade in the country, caused losses of 37.36 billion kilograms of grain last year.
   Snowstorms that started to hit southern China in mid January, however, have taken a limited toll on grain output as most winter grain crops were planted in the north. Fresh vegetables, however, have suffered severe blows, Chen said.
   Meanwhile, grain price increases in the second half of 2007 may affect the price level in 2008, the SGA said.
   China’s consumer price index rose 4.8 per cent in 2007, with the prices of grains, such as soybean, reaching a record high.
   The government also took a series of measures to reign in price increases. These included injecting state grain reserves into the market and promoting sales of grain purchased at minimum prices from farmers.

The finance and planning adviser, AB Mirza Azizul Islam, Sunday asked the Rajshahi Krishi Unnayan Bank to play special role in making the government’s northern region development programme successful.
   ‘The government has undertaken various development programmes to remove income disparity of people of the northern region,’ he told RAKUB managers’ conference at the Ziaur Rahman Medical College Auditorium in Bogra.
   The adviser gave the directive a day after the Council of Advisers held its first-ever meeting outside Dhaka to set a strategy to remove income disparity of the northern region.
   The Council of Advisers at its meeting in Rangpur on Saturday gave a nod to a 14-point programme for the rapid socioeconomic development of the region.
   The programmes include close and round-the-clock supervision for ensuring the boro production in the coming season, formation of a committee headed by an Adviser to resolve Monga problem, setting up of a fully-fledged university in Rangpur, activating the airports of the region and taking measures to export more manpower from the region.
   The adviser called upon the RAKUB executives to take more initiatives to bring in more entrepreneurs in the agriculture sector for increasing production and creating employment opportunities. The agriculture sector contributes 60 per cent in employment, he said.
   ‘Shun bureaucratic attitude,’ he told the conference, advising the bank executives to be sincere with the loan applicants and infuse team spirit in the bank’s internal management.
   Aziz stressed the need for simplifying the bank’s credit procedure to make it as realistic as necessary to alleviate poverty.
   He expressed satisfaction over the bank’s loan disbursement of Tk 376.59 crore so far out of its total credit target of Tk 800 crore in the current fiscal year. He, however, asked the bankers to overcome all limitations to achieve the credit target.
   RAKUB managing director Jaglul Karim, DGM of Bogra region Mohammed Abdul Khaleque Khan and DGM of Chapainababganj Asadur Rahman also addressed the conference, presided by bank chairman Mohammed Yahya Molla.

Most Asian currencies finished the week up against the greenback amid continuing fears over the United States economy.
   The yen edged up over the past week to the mid-106 level against the dollar amid continuing fears of a recession in the world’s largest economy.
   The Japanese currency closed at 106.33-35 on Friday, compared with 107.63-65 a week earlier.
   It had gradually slipped back to the mid-107 level after earlier this month hitting 105.62 to the dollar, the yen’s highest level since May 2005, as the United States pressed a stimulus plan to head off recession.
   But analysts in Tokyo said investors will not have much appetite for the dollar this week due to market uncertainty and persistent concern that the United States is headed for a slump.
   ‘The risk of a US recession and sharp global slowdown persist, despite the Fed’s aggressive interest rate cuts last month,’ wrote NAB Capital senior strategist John Kyriakopoulos in a note to clients.
   ‘The slowing in US consumer spending is bound to weigh on Asian economic growth via weaker exports. We doubt that we’ve heard the end of subprime mortgage-related write-downs,’ he added.
   After another rate cut by the US Federal Reserve this week by a half-point to 3.0 percent, dealers said the markets expected it to continue cutting rates if needed to keep the economy out of recession.
   They said a reduction of a quarter point was seen as near certain at the next meeting on March 18.
   David Mann, a currency strategist at Standard Chartered Bank, said, ‘Sentiment on the dollar remains weak, though its decline against major currencies is slowly grinding to a halt, unlike in the previous months.’
   The yuan closed at 7.1830 to the dollar Friday on the exchange-traded market, compared with 7.1818 on Thursday, and 7.2087 the week before. On the over-the-counter market, it ended at 7.1890 to the dollar against 7.1818 the previous day.
   The central bank had set the yuan central parity rate at 7.1903 to the dollar Friday, compared with 7.1853 on Thursday.
   The Australian dollar was at 89.57 US cents on Friday, up from last week’s close of 88.40 US cents.
   The prospect of a further interest rate rise is tipped to see the Australian dollar rise this week, dealers said.
   The city’s currency finished the week at 7.798 to the US dollar, up from 7.807 the Friday before.

Private sector airliner GMG Airlines formally launched its flight to Dubai on Sunday.
   Mahbub Jamil, special assistant to the chief adviser, inaugurated the flight through a function held at Zia International Airport in the Dhaka city as chief guest, said a press release.
   GMG Airlines, since its inception in 1998, has emerged as one of the leading private sector airlines. With the induction of the 2nd Boeing 747-300, GMG has an elite fleet of 3 Dash8, 2 McDonnell Douglas, 1 737-800 new generation aircraft and 2 Boeing 747-300, with which GMG plans to cover Muscat, Doha, Kuwait City and Karachi by 2008.
   Khalfan Battan Ali Al Monsuri, ambassador of the UAE to Bangladesh, and Altaf Ali, secretary of the ministry of civil aviation, were also present at the launching ceremony, among others.

Oil cartel OPEC, which this week maintained its production target amid uncertainty over the US economy, could well sit tight again when it meets in the Austrian capital in early March, analysts said.
   On Friday at an extraordinary meeting in Vienna, the Organisation of Petroleum Exporting Countries left its official daily output ceiling at 29.67 million barrels of oil, insisting the market was adequately supplied.
   The cartel, which produces 40 per cent of world oil, snubbed US demands for an increase and focused instead on supporting prices that have fallen 10 per cent since the start of the year.
   ‘OPEC is meeting again in five weeks on March 5th for a regular session and such a move would give it more time to assess latest developments in the US,’ said oil analyst Andrey Kryuchenkov at the Sucden brokerage.
   Fears of a US recession abound after the US government revealed on Friday that the economy lost 17,000 jobs in January, marking a decline in employment for the first time since August of 2003.
   ‘OPEC remains concerned about a potentially deep recession in the US, which could reduce demand growth for energy and until this becomes clear the group is unlikely to make any significant policy shifts,’ said Kryuchenkov.
   Friday’s freeze was a snub to the United States after president George W Bush recently urged OPEC to increase output to help bring down high oil prices that stunt economic growth and fuel inflation.
   Since striking a high above 100 dollars at the start of the year, the price of oil has slid owing to fears of a US recession and a global economic slowdown. However at around 90 dollars a barrel currently, it remains almost double the level of a year ago.
   Even so, this is not enough to please some OPEC members, analysts said.
   ‘Their instinct was to cut’ on Friday, said Simon Wardell of Global Insight.
   Only pressure from the US made them ‘wary,’ he added.
   OPEC members, notably Iran and Venezuela, said in Vienna this week that the organisation may have to cut output in March should crude prices continue to weaken.
   Lower oil prices are not welcomed by the cartel’s producers as their export income drops. Saudi Arabia, the world’s biggest exporter of crude, is producing about 9.0 million barrels of oil per day, so even small changes in prices significantly affect the kingdom’s revenue.
   OPEC feels justified in ignoring US calls for higher output simply because oil futures have fallen by a significant amount since the price of New York crude struck an historic high of 100.09 dollars a barrel on January 3, analysts said.
   But winning public support for a cut in production in March would be much harder, especially if prices hold at current high levels, they added.
   ‘If they stay in a 90-dollar range, how could they be cut?’ questioned Paul Tossetti of PFC Energy.
   Nigeria, an OPEC member and Africa’s biggest oil producer, said Friday’s decision had been unanimous.
   ‘March’s decision maybe more difficult to take but we’ll see what happens,’ Nigeria’s minister of State for Energy, Odein Ajumogobia, told reporters.

Faced with record inflation, the European Central Bank is expected to resist pressure for an interest rate cut when its governing council meets this week, in the wake of moves by the US Federal Reserve.
   Despite a spectacular decrease in US lending rates and growing concern over the 15-nation eurozone economy, analysts say the ECB will keep its main rate at 4.0 per cent, where it has been since June, at Thursday’s meeting.
   It does not feel the time has come to cut the cost of borrowing, or even to signal that a cut is in the cards — in contrast to the Bank of England, which economists expect to ease its main rate the same day.
   ‘ECB president Jean-Claude Trichet will show more concerns about the economy,’ said Commerzbank chief economist Joerg Kraemer.
   But that would be it.
   ‘At the same time, he will warn about the risks of inflation, as he did at the beginning of January, and stress that the ECB is ready to act’ to counter them, a way of threatening tighter monetary conditions, Kraemer added.
   Eurozone inflation hit 3.2 per cent in January, fuelling concern at the loss of purchasing power in Europe.
   Trade unions, especially in Germany, see it as a good reason to press for significantly higher wages.
   But the ECB, which considers inflation to be under control if it remains just below 2.0 per cent, is worried that stiff pay increases will create long-term inflation.
   Given its primary mission of guaranteeing price stability, the bank is likely to reiterate its warnings, said Holger Sandte of WestLB bank.
   But words seem to be the only weapon at its disposal. Raising rates would be nearly impossible as the United States flirts with recession and the eurozone begins to pay the price.

Transaction
   Monno Ceramic
   Harunar Rashid Khan, one of the sponsors/directors of the company, has reported his intention to buy 2,000 shares of the company at prevailing market price through the stock exchange within next 30 working days.
   
   Profit
   Rahima Food
   The company has reported net profit of Tk 23.9 lakh with EPS of Tk 1.19 as against last year’s half yearly of Tk 18.9 lakh and Tk 0.94. Accumulated loss of the company was Tk 1.32 crore as on December 31, 2007.
   
   Olympic Industries
   The company has reported net profit of Tk 1.52 crore with EPS of Tk 8.79 as against last year’s half yearly of Tk 1.15 crore and Tk 6.66 respectively.
   
   Loss
   Tulip Dairy and Food
   The company has reported net loss of Tk 27.6 lakh with EPS of Tk 11.54 as against last year’s half yearly of Tk 34.4 lakh and Tk 14.38 respectively. Accumulated loss of the company was Tk 9.50 crore as on December 31, 2007.
   Source: DSE, CSE

StanChart to provide loan for Chinese microfinance
The Standard Chartered Bank China has signed a loan and co-operation agreements with the China Foundation for Poverty Alleviation, said a press release. Peter Sands, group chief executive, singed the agreements with China premier Wen Jiabao and British prime minister Gordon Brown at the Great Hall of the People in Beijing. According to the agreement, Standard Chartered will provide the initial amount of RMB20 million as a credit loan facility to CFPA, which will finance the microfinance projects and thus provide financial support to farmers and owners of micro-enterprises in the poorer regions of China.
— New Age

LASER Shaving Products enters Bangladesh
The LASER Shaving Products is going to launch their products in Bangladesh with the ACI Consumer Brands as their sole distributor to market their products. KM Dubey, head of marketing and sales, Malhotra Group, India Ltd, as chief guest and S Alamgir, executive director of ACI Limited, as special guest will explain about the brands at a press briefing to be held at Fu-Wang Bowling Club in the Dhaka city today, said a press release.
— New Age

Singapore GIC to buy Westin Hotel Tokyo
The Government of Singapore Investment Corp has agreed to buy the Westin Tokyo luxury hotel for 77 billion yen ($723m) from Morgan Stanley, a newspaper said Sunday. The parties have reached a basic accord on the purchase of the land and the building located in Tokyo’s high-end residential and commercial district of Ebisu, the Nikkei business daily said. They plan to complete the deal by late February, the newspaper said. GIC will likely have the hotel continue its current operations and aim to increase the asset’s value by making it a long-term investment.
— AFP