The chief of stock market watchdog has stressed the need for bringing more discipline share market to prevent any unfair play, appreciating, however, the current trends of slight ups and downs in share prices.
   The chairman of the Securities and Exchange Commission, Ziaul Haque Khondoker, made the observation about the stock market while speaking at the launching ceremony of a brokerage house on Wednesday.
   ‘We have to remain cautious about any unfair play in the share market. More discipline in the country’s share markets should be ensured with specific disclosers about shares,’ he said.
   City Bank Limited, a private bank, launched its brokerage operations at a function at Dhaka Sheraton Hotel. City Bank chairman Aziz Al Kaiser, its managing director and chief executive officer K Mohmood Sattar, Dhaka Stock Exchange president Mohammad Rakibur Rahman and Chittagong Stock Exchange president Nasiruddin Ahmed Chowdhury attended the function
   The SEC chairman said mutual funds and new IPOs [Initial Public Offerings] of different companies would come to the stock markets in the coming months.
   ‘Like the City Bank brokerage, other houses do have the responsibility to protect the interest of their clients’ he added.
   Rakibur Rahman said certain quarters in the public sector used to maintain ‘too much caution’ about the country’s two stock markets — Dhaka and Chittagong — when the prices of shares rose.

The NGO Foundation expressed concern about the survival of the micro-credit institutions due to an embargo imposed on recovery of agricultural and micro-credit money disbursed in the Aila-hit areas of the country’s southern districts.
   ‘The NGOs that disbursed loans in the areas will face closure if they are to suspend loan recovery for one year,’ Foundation chairman Dr Muhammad Ibrahim told Finance Minister AMA Muhith at a meeting at the Finance Ministry Wednesday.
   Recently, the Microcredit Regulatory Authority slapped the restriction suspending loan recovery by the NGOs for one year from June 28 this year and asked for rescheduling the unrealized and default loans for next one year as the cyclone last May hit hard life and livelihood of people in the coastal belt.
   It also asked the micro-credit institutions to lend fresh credits to their members after rescheduling the previous loans and instructed taking measures so the borrowers do not face any harassment in fresh borrowing.
   ‘We’ll have to look into it as they raised the concern,’ Muhith told reporters after the meeting, adding that the decision in this regard would be taken in consultation with the authorities concerned.
   Dr Ibrahim apprehended that the suspension of loan recovery would affect financial discipline of the micro-credit institutions and requested the minister to put off the recovery on case-to-case basis.
   NGO Foundation, the federation of NGOs in Bangladesh, also aired concern over the initiative for establishing NGO Commission as the government did not yet discuss with them the possible framework of the proposed watchdog body.
   They also urged the Finance Minister to set the criteria for NGOs which would be engaged in implementing government programmes.

The state-run Bangladesh Petroleum Corporation is now in trouble with a consignment of 10,900 metric tons of ‘substandard’ jet fuel shipped from Kuwait and seeks government authorities’ help for a rescue.
   The country might face a shortage of jet fuel if the government does not take necessary steps to collect the fuel within a short time, says a BPC letter sent to the National Board of Revenue on July 20.
   A vessel, MT AL-Kuwaititiyah, anchored at Chittagong seaport with the jet fuel (Jet A-1) along with 21,914 metric tons of diesel (Gasoil 0.25%S) on July 16.
   The 21,914 mt diesel was unloaded from the vessel after completing all necessary activities. But the BPC declined to unload the jet fuel (Jet A-1) as inspections found out that the standard of the fuel is not up to the mark.
   For the import of the diesel and jet fuel the BPC opened LC on June 24 with Janata Bank in Dhaka. The jet fuel was loaded on the vessel MT AL-Kuwaititiyah on July 2 while the diesel loaded on July 3 after completing an agreement with Kuwait Petroleum Corporation.
   As per the agreement between BPC and KPC, the prices of the diesel and the jet fuel have to be paid within 30 days of the bill of lading (BL).
   But the prices of the diesel and jet fuel were not paid yet.
   According to the letter, signed by BPC chairman Anwarul Karim, the corporation will not pay the price of the jet fuel as it did not unload the fuel, which is used for airplanes.
   The BPC chairman in the letter to NBR stated that they would submit all necessary documents, including the no-objection certificate from Bangladesh Bank, to the authority concerned. Submitting these documents is a time-consuming matter.
   ‘BPC will take the responsibility in the future if any complexities arise later on,’ the BPC chairman said.
   The BPC already has informed the KPC about the matter and requested them to take back their jet fuel that was found substandard.
   The chairman said that his organization has to pay US$ 20,000 per day as demurrage if the vessel MT AL-Kuwaititiyah makes delay in departing from the port.
   Furthermore, crisis will arise for jet fuel (Jet A-1) if there be delay in finding another vessel with same kind of fuel, the BPC chairman said in his letter. ‘As a result, supply of fuel to different airlines will be disrupted.’
   According to the available sources, the demand for jet fuel in the country is on average 600 metric tons per day while the current reserve is not more than 12,000 metric tons.
   Sources in BPC said that as the reserve is in the danger level, the BPC asked the state-run Eastern Refinery Limited (ERL) to produce 300 metric tons of jet fuel a day.
   In this situation, the BPC chairman urged the NBR to take urgent steps and provide directives to the commissioners deployed at Chittagong Customs House (Export and Import) to release the vessel MT AL-Kuwaititiyah for avoiding crisis of jet fuel in the country and help BPC avert demurrage.

Foreign direct investment flows should take two years to regain momentum after a sharp drop in 2009, a UN thinktank said Wednesday as it warned of the risk of economic nationalism during the recovery.
   Transnational companies expect a slow recovery in their investment expenditure abroad to begin next year and accelerate in 2011, the UN Conference on Trade and Development said in its annual survey of 241 multinationals.
   The World Investment Survey 2009 found that about half of them even expected their foreign direct investment (FDI) expenditure in 2011 to rise above 2008 levels, when inflows worldwide reached an estimated 1.4 trillion dollars — about a fifth less than the 2007 peak.
   However, manufacturing industries, hard hit in recent months, are likely to lag behind in the recovery, and the corporate world also fears a bout of investment protectionism.
    ‘The prospects for FDI in the primary sector — mining, agriculture — and services would remain bright for the next few years while prospects for manufacturing would be less optimistic,’ said UNCTAD investment division director James Zhan.
   Zhan said that feared protectionism — barriers to foreign investment in local companies or takeovers — had not materialised so far.
    ‘Few new laws and regulations could be characterised as restrictive to FDI, instead the crisis has triggered a new effort to promote and facilitate FDI and enhance the clarity and stability of the investment framework,’ he explained.
   But he acknowledged that the concerns were not unfounded, especially for a more subtle form of ‘smart protectionism’ in economic stimulus packages.
    ‘Furthermore, a new wave of economic nationalism could occur in the aftermath of the crisis when the exit of public investment from the bailout of flagship industries might lead to protectionism of ‘national champions’ from foreign takeovers,’ Zhan said.
   Global foreign direct investment inflows fell by 54 per cent in the first quarter of 2009, compared to the same period last year, according to UNCTAD data released in May.
   That figure is expected to reflect the pattern for the whole year, mainly affecting investment in developing nations and transition economies.
   One component, cross border corporate mergers and acquisitions, is expected to suffer an even sharper decline of about two-thirds globally this year compared to 2008, said Zhan.
    ‘The picture is gloomy this year in contrast with the longer term, in 2010 and 2011,’ he added.
   Fifty eight per cent of the companies surveyed were reducing their investments this year.
   But the survey also found that companies were intent on pursuing an international approach to production, employment and investment as well as sales.

Barnes & Noble launched what it bills as the world’s largest online electronic book shop with virtual shelves holding more than 700,000 titles.
   The major US bookseller is challenging online retail powerhouse Amazon.com with electronic works readable on an array of platforms, including computers, iPod Touch MP3 players, and iPhone and BlackBerry smart phones.
   Barnes & Noble added that it will be the exclusive provider of ‘eBooks’ for electronic readers to be released by Plastic Logic.
   ‘We want to make eBooks simple, accessible, affordable and convenient for everyone,’ said William Lynch, president of the book giant’s website BN.com.
    ‘Today marks the first phase of our digital strategy, which is rooted in the belief that readers should have access to the books in their digital library from any device, from anywhere, at any time.’
   Amazon staked out a place in the electronic book market with the release of Kindle reader devices in late 2007 and has more than 300,000 titles for sale at its website.

HAkan Rusch, a Swedish national, has been appointed new president of Ericsson Bangladesh Limited, one of the leading technology and services providers to telecom operators, a company release said Wednesday.
   With 30 years experience in telecommunications, Rusch succeeds Arun Bansal, who has been appointed as president of Ericsson Indonesia.
   Rusch worked for Ericsson’s offices in various management roles in Europe, Africa and Asia.
   Prior to this announcement, he was vice president and head of market development, Ericsson South East Asia based in Malaysia for four years.
   Ericsson’s South East Asia president Jan Signell, says that Rusch’s predecessors have left a strong legacy in Bangladesh, not only in enhancing Ericsson’s position as a strong and reliable partner to the operators, but also in ensuring that Ericsson is a trusted partner and employer of choice in the country.
   He considers Bangladesh as one of the fastest growing markets for Ericsson in the region.
   Rusch reiterated Ericsson’s commitment to support telecommunications operators in the country, especially in increasing their market share and revenue streams, as well as in network expansion with new technologies to reach new subscribers in line with the government’s vision for establishing ‘Digital Bangladesh’, said the release.

The finance minister, AMA Muhith, Tuesday criticised the Bangladesh Telecommunications Regulatory Commission for its failure to play the role of facilitator in providing the required services to the entrepreneurs of the telecommunications sector.
   ‘BTRC should play its role as a regulatory body, not as a controller. It should provide the latest services to the entrepreneurs of the telecommunications sector,’ he said.
   Muhit was speaking at the inaugural ceremony of the country’s first-ever wireless broadband technology ‘Augere’ at a Dhaka city hotel in the evening.
   Post and tele communications minister Raziuddin Ahmed Raju and information minister Abul Kalam Azad were also present at the function organised by Augere Wireless Broadband Bangladesh Limited with Augere chairman and chief executive officer Sanjiv Ahuja in the chair.
   Speaking on the occasion, Muhith urged the entrepreneurs of the telecommunications sector to reach the digital communications system to the doorsteps of the rural people.
   The finance minister hoped that the Wimax technology will be available at every divisional headquarters within a year.
   Information minister Abul Kalam Azad said Augere Bangladesh is poised to fulfil the demand for Internet connections using WiMAX technology. ‘Its understanding of the market and technology will help it play a positive supporting part in realising the vision of Digital Bangladesh.’
   Raziuddin Ahmed Raju said the government is trying to make the internet technology available in every upazila.
   Sanjiv Ahuja said, ‘It has been only a few months since Augere successfully bid for a WiMAX license in this vibrant and dynamic country, and I’m delighted to say that today our pilot network is operational in some selected areas of Dhaka.’
   WiMAX is a technology which provides wireless transmission of data using a variety of transmission modes, from point-to-multipoint links, up to portable and fully mobile internet access. The technology supports peak download rates of up to 46Mbps and peak
   uplink rates of up to 14 Mbps.
   Augere, set up in September 2007, currently has access to spectrum in Pakistan and Uganda. Augere’s modems will hit the market in November next.

Citi, for the ninth time, topped the AsiaMoney’s Cash Management poll of polls, according to a Citi news release issued Tuesday.
   Asiamoney’s Cash Management Poll has consistently rated which banks do the best job helping Asia’s corporates and financial institutions when it comes to advising them on payments and settlements or moving money between countries and currencies. Through the recent credit crisis, Citi has provided consistent service to it’s’ customers through global payments and clearing.
   In Bangladesh, as well, Citi has been adjudged as the Best Corporate/Institutional Internet Bank by Global Finance and Best Domestic Cash Manager by Euromoney Cash Management Polls in 2008. Citi has been providing end-to-end transaction services solutions with seamless delivery to satisfy customer needs since its inception in Bangladesh, the news release said.

BRAC signed a memorandum of understanding with two US-based enterprises, ClickDiagnostics and Alliance Forum Foundation on mobile-based automation of data management for BRAC Health's Manoshi programme, a news release of BRAC said Tuesday.
   Under the MOU, signed Monday, BRAC will use mobile phones equipped with special software to collect patient data, which will be used for real-time screening of risky patients and strategic interventions for patient management.
   Faruque Ahmed, director of BRAC health, Rubayat Khan, chief of Bangladesh of ClickDiagnostics, and Sumala Chowdhury, country representative, Alliance Forum, signed the MOU on-behalf of their respective sides.

A four-day international solar and renewable energy trade show and conference will begin at Bangabandhu International Conference Centre on October 29.
   Commerce Minister Faruq Khan is scheduled to inaugurate the curtain raiser programme of the tradeshows on July 25.
   ZAK Trade Fairs and Exhibitions Private Limited, an event management company, is going to organize the trade shows to project Bangladesh in global arena, ZAK Director Syed Ahad Ahmed told UNB Wednesday.
   Ahad said ZAK Trade Shows are a platform of Powertech and Lighting Expo, Dhaka-Build, Dhaka International Engineering Expo, Solar Energy Expo and Renewable Energy Expo to attract the local and international investors.
   ‘The goals of the trade shows are to focus on the immense potential of biofuel, geothermal, hydropower, solar energy, wave energy, wind energy, cogeneration and energy efficiency of Bangladesh,’ Ahad said.
   Seventy companies from 15 countries are expected to take part in the exhibition.

The dollar was mixed Tuesday as traders weighed Federal Reserve chairman Ben Bernanke’s remarks that the US economy was improving but not enough to warrant a shift in monetary policy.
   In late morning trading here, the European single currency dipped to 1.4191 dollars from 1.4227 dollars in New York late on Tuesday.
   The dollar fell to 93.45 yen from 93.73 yen reached late Tuesday.
   Investors were closely watching stock markets and any clues on the outlook for major economies, said Marito Ueda, currency dealer at FX Prime.
   Global stock markets have enjoyed a rebound recently on signs of an improvement in the US economy and corporate earnings.
   Bernanke, delivering his semi-annual economic report to Congress on Tuesday, cited ‘notable improvements’ in financial markets and a somewhat brighter economic outlook. ‘In light of the substantial economic slack and limited inflation pressures, monetary policy remains focused on fostering economic recovery,’ he said.
   Standard Chartered analysts wrote in a note that Bernanke had ‘surprised the markets with a more dovish statement than expected, highlighting that the Fed’s focus remained firmly on growth... and that interest rates would remain low.’

The Board of Directors of Apex Spinning Limited has recommended 15 per cent cash dividend for the year 2008-2009.
   There will be no price limit on the trading of the shares of the company today following its corporate declaration.
   The annual general meeting of company will be held on July 27.
   
   Peoples Insurance
   Mabia Khatun, one of the Sponsors of the company, has reported her intention to sell 3,000 shares out of her total holdings of 4,164 shares of the company at prevailing market price through Stock Exchange within next 30 working days.
   
   Al-Haj textile
   The company has informed the DSE that the management has taken decision to extend the lay off of the factory for further 30 days from 22 July to 20 August 2009 for bank’s non-refund of special fund created by the mill and delayed review of Cash Credit renewal. If situation improves, Lay Off can be withdrawn.
   
   People Insurance
   Md. Nurul Islam Patwari, one of the Sponsors/Directors of the company, has reported his intention to sell 3,000 shares (bonus shares) out of his total holdings of 20,000 shares of the company at prevailing market price through Stock Exchange within next 30 working days.
   
   IPDC
   News: As per un-audited half yearly accounts as on 30.06.09, the Company has reported profit after tax of Tk. 20.02 m with EPS of Tk. 2.55 as against last year’s half yearly of Tk. 80.12 m and Tk. 10.22 (restated) respectively.
   Source: DSE

Heads may have turned when more Chinese firms than ever made Fortune’s list of 500 top global companies, but experts say the increase reflects Beijing’s power — not companies’ competitiveness.
   An unprecedented 34 firms from mainland China made the list of the world’s top companies by revenue, up from 25 last year. Conversely, the number of US firms fell to 140, the lowest since Fortune began the list in 1995.
   The Chinese firms may not be global household names, but the impact of companies like top-10-ranked Sinopec is felt around the world as they jostle with other Fortune 500 firms to snap up acquisitions.
   In the past month alone, the Chinese oil giant has signed deals in Iraq, Angola and Canada.
   However, unlike other countries represented, the Chinese companies are all state-owned enterprises — with one exception, steelmaker Shagang Group, which has been fully private since 2004.
    ‘You can be big because you are competitive and you have rolled out good products,’ said Yasheng Huang, author of ‘Capitalism with Chinese Characteristics’.
    ‘Or you can be big because you are a state-sanctioned monopoly that stifles competition. The list makes no distinction,’ said Huang, a professor at the Massachusetts Institute of Technology’s (MIT) Sloan School of Management.
   Fortune’s list is based on sales revenue, but if it were based on profitability, the Chinese contingent would shrink, said Zhang Ming, an economist at Beijing’s China Academy of Social Sciences.
    ‘Most of the (list’s) Chinese companies are state-run because they enjoy monopolies, favourable policies and state funding. If they lost their monopoly positions, would they still be big and profitable? That’s doubtful,’ he said.
   After 30 years of reforms aimed at transforming China from a controlled economy to a market-based system, state firms’ dominance shows the need for more private assets and allowing more competition, Zhang said.
    ‘The monopoly role means they can reap profits very easily,’ he said, adding: ‘They lack the initiative to explore high-tech and research.’
   The list underlines the protection that Chinese government ties can provide against the financial crisis, analysts said, pointing to independent companies that dropped off the list this year including computer maker Lenovo and Ping An Insurance — 16.8 per cent owned by HSBC.
    ‘State-owned enterprises have ample access to the financial and political resources of the state and they are protected. The private-sector firms are not so fortunate,’ MIT’s Huang said.
   That same support should help state firms rise further in global rankings as others fall, said Jianmao Wang, a professor at the China Europe International Business School in Shanghai.
   China has predicted its economy will grow eight per cent this year while the International Monetary Fund has forecast the Organisation for Economic Cooperation and Development grouping of 30 developed countries will see a four per cent contraction.
   Although state firms’ dominance may hurt efficiency in the short term, they do not threaten China’s economic long-term development because market reforms will continue, Wang said.
    ‘As China’s pension funds develop, they will own more and more shares in these listed companies and improve their corporate governance,’ he said.
   But even if its control becomes less direct, the government is unlikely to let its giants go fully independent, Wang said.
    ‘As a socialist country, China should not allow any individuals to control the most important firms in the country,’ he said.
   Beijing aims to add even more state firms to Fortune’s Global 500 under a plan to consolidate companies into 80 to 100 very large state-owned enterprises, half of which it wants to see on the list next year, Wang said.
   Is there hope for an independent Chinese Sony or Apple?
   Huawei Technologies in Shenzhen is a company to watch, analysts said. With 43 per cent of its 87,500 employees dedicated to research and development and nearly 9,000 domestic filings last year, it led the world in patents, Wang said.
    ‘Huawei is a company with great potential,’ Zhang agreed.
    ‘But funding channels are very limited for private companies in China, especially after the financial crisis.’

Apple on Tuesday reported 1.23 billion dollars in profit in its latest fiscal quarter on strong sales of iPhones and Macintosh computers.
   Apple said the quarter that ended June 27 saw profit of 1.35 dollars per share as compared to 1.19 dollars per share, or 1.07 billion dollars, in the same period last year.
   The Cupertino, California-based company reported revenue of 8.34 billion dollars in the quarter as compared to 7.46 billion in revenue in the same three-month period in 2008.
    ‘We’re making our most innovative products ever and our customers are responding,’ Apple chief executive Steve Jobs said in an earnings release.
    ‘We’re thrilled to have sold over 5.2 million iPhones during the quarter and users have downloaded more than 1.5 billion applications from our App Store in its first year.’
   The strong earnings could help dispel recurring concerns that Apple’s fate rests on the health of Jobs, its world-renowned front man credited with reversing the company’s fortunes with his return to the helm in 1996.
   Late last month, Jobs returned from a six-month medical leave of absence during which he underwent a liver transplant. Jobs underwent treatment for pancreatic cancer in 2004 and Apple has been tight-lipped about his health.
   Despite Jobs being absent for the recently-ended quarter, sales of iPhones reportedly rocketed 626 per cent and sales of Macintosh computers rose to 2.6 million, four per cent higher than the same quarter last year.
   However, sales of iPod MP3 players dipped seven per cent to 10.2 million in a year-over-year comparison, Apple reported.
    ‘We’re extremely pleased to report record non-holiday quarter revenue and earnings and quarterly cash flow from operations of 2.3 billion dollars,’ said Apple chief financial officer Peter Oppenheimer.
    ‘We are very proud of this result, particularly given the economic climate around us.’
   Oppenheimer said Apple expects revenue in the current quarter to be in the range of 8.7 to 8.9 billion dollars and earnings per share to be from 1.18 dollars to 1.23 dollars.
   Apple anticipated declining sales of ‘traditional’ iPod devices and that was one of the reasons it created iPhone smart phones with MP3 capabilities, according to Oppenheimer.
   Apple expects to see sales of most iPod models ebb annually but significant growth in purchases of iPod Touch devices, essentially iPhones without telephone capabilities.
    ‘We have a great business we expect to last many, many years,’ Oppenheimer said of the evolving iPod line.
   Demand for iPhone 3G S models has outpaced Apple’s ability to deliver since the new-generation smart phones hit the market in June, according to Oppenheimer.
    ‘We are currently unable to make enough iPhone 3G S to meet high demand and we are working to improve that,’ Oppenheimer said.
   IPhone 3G S devices are sold in 18 countries and Apple is intent on expanding to new markets, according to company executives.
   Selling iPhones in China continues to be a priority and Apple hopes ‘to be there within a year,’ said chief operating officer Tim Cook.

Caterpillar Inc.’s second-quarter profit tumbled on slumping sales of heavy equipment and the cost of staff cuts, but it saw signs that the global economy is starting to stabilize after a prolonged slide.
   The company boosted its 2009 profit forecast, citing evidence that government stimulus plans, particularly in China, are beginning to work. The company’s global reach and diverse products — from bulldozers to mining trucks to cargo ship engines — give a snapshot of industrial strength.
   The optimistic forecast lifted shares nearly 8 per cent in Tuesday trading.
    ‘There is still a great deal of economic uncertainty in the world, but we are seeing signs of stabilization that we hope will set the foundation for an eventual recovery,’ Caterpillar Chairman and CEO Jim Owens said in a statement.
   An estimated $1.7 trillion in stimulus money is being pumped into economies worldwide for infrastructure projects, the company said, enough to start a recovery. China shows ‘definite signs of improvement,’ and Caterpillar dealers there reported significantly higher machine deliveries in June compared with the same month last year.
   Spending under the US stimulus, however, has been ‘fairly small’ so far, and Caterpillar said the package wasn’t likely to have a big impact on its results this year.
   The company’s net income fell 66 per cent to $371 million, or 60 cents per share, in the second quarter. That compared with $1.11 billion, or $1.74 per share, a year earlier.
   The cost of thousands of job cuts lowered earnings by 12 cents per share. Caterpillar has undertaken dramatic cost-cutting measures, including the planned elimination of more than 22,000 positions and sweeping production cuts. The company employed 112,887 people at the end of 2008 and 95,761 at the end of June.
   Revenue dropped 41 per cent to $7.98 billion in the second quarter, with equipment and engine sales down 43 per cent.
   Global equipment sales — Caterpillar’s largest source of revenue — plunged by 49 per cent, led by a 61 per cent decline in Europe, Africa and the Middle East and followed by a 51 per cent drop in North America.
   The results reflect weakened global demand and prices for commodities such as iron ore, a key steel ingredient that is mined by some of Caterpillar’s customers and hauled in its huge yellow-and-black trucks.
   Dealers that sell Caterpillar equipment are cutting stockpiles to keep up with falling demand, the company said. The value of equipment pulled from inventories could reach nearly $3 billion by the end of the year, the company said.
   Caterpillar trimmed the top end of its revenue forecast for the year. It now expects a range of $32 billion and $34 billion, compared with an earlier forecast of $31.5 million to $38.5 billion.
   Sales and profit are expected to be at their weakest this year in the third quarter, excluding costs tied to job cuts. And Caterpillar is planning ‘widespread and significant rolling factory shutdowns’ during the period, Mike DeWalt, the company’s director of investor relations, said in a conference call.
   Still, the company expects a higher profit in 2009 of between $1.15 and $2.25 per share, excluding the job cut costs. It previously forecast about $1.25 per share, while analysts predicted $1.01 per share.
   Owens said credit markets have improved significantly and commodity prices have risen from their lows in the first quarter. Better credit markets may make it easier for customers to borrow money to buy Caterpillar’s products.
   Morgan Stanley analyst Robert Wertheimer wrote in a client note the Caterpillar’s performance exceeded his expectations, helped partly by lower costs.
   Sterne Agee analyst Lawrence T. De Maria said his firm does not expect a demand rebound until 2011 at the earliest, and that cost cuts, a better tax rate, foreign exchange and accounting for inventory helped Caterpillar during the quarter.
   In April, Caterpillar reported its first quarterly loss in 17 years, citing weak sales and the cost of laying off thousands of workers. It also lowered its outlook for 2009, saying the global economy was clouded by uncertainty. Last year, Caterpillar generated 67 per cent of its revenue overseas.
   Its sales of large equipment sank in May. That was the third consecutive month of declines.
   Caterpillar shares rose $2.81, or 7.7 per cent, to close at $39.46 Tuesday. In the past year, they’ve ranged between $75.87 and $21.71.

Sri Lanka welcomed Tuesday a tentative agreement with the IMF for a 2.5-billion-dollar bailout as the country emerged from a near four-decade-long separatist war.
   Sri Lanka’s Central Bank chief Nivard Cabraal said the International Monetary Fund’s announcement Monday of the preliminary agreement on the loan would send a much-needed positive signal to investors.
    ‘For the government and private sector, the confidence-building is complete (with the IMF loan),’ Cabraal said.
   The IMF assistance comes after Sri Lanka crushed the Tamil Tiger rebels — who had been fighting since 1972 to carve out a separate state for minority Tamils — in May. The war had claimed up to 100,000 lives.
   Sri Lankan stocks rose just under two per cent Tuesday to close at 2,468.91. Brokers said they expected the market to remain bullish in the coming days on the back of the IMF step.
   IMF managing director Dominique Strauss-Kahn said in Washington on Monday that an IMF staff mission had reached agreement with Sri Lankan authorities on an economic program that ‘could be supported’ by a 20-month stand-by credit.
   He said Sri Lanka’s government had developed an ‘ambitious program aimed at restoring fiscal and external viability and addressing the significant reconstruction needs of the conflict-affected areas’.
   The IMF executive board is expected to formally consider the program on Friday. If approved by the board, Sri Lanka would be eligible to draw about 313 million dollars immediately.
   The IMF said the end of the conflict provides Sri Lanka with an opportunity to undertake economic reform and reconstruction that would be key to laying the basis for higher economic growth in the years ahead.
   The Sri Lankan government had requested a 1.9-billion-dollar loan in March to help stave off its first balance of payments deficit in four years after foreign currency reserves fell to around six weeks’ worth of imports.
   Analysts say the end of the civil war has opened avenues for wider economic activity and will spur investment, especially into areas like infrastructure, to reap the post-war benefits.
   The Sri Lankan government in early July raised its 2009 economic growth forecast to a range of 3.5-4.5 per cent, from the 2.5-3.0 per cent expansion projected at the start of the year.

The World Trade Organization and Asia-Pacific trade ministers warned here Wednesday against rising protectionism amid signs that the global economic slump may be nearing its end.
   ‘The global economy appears to be bottoming out, but the outlook remains uncertain and significant risks remain,’ the ministers from the Asia-Pacific Economic Cooperation forum said in a statement after two days of talks.
   ‘We will therefore persist with efforts to support growth and facilitate trade and investment flows, keep our markets open, and give a new push to concluding the Doha Round.’
   The WTO’s Doha Round of talks were launched in the Qatari capital in late 2001 to forge a new deal on freer flow of goods and services.
   However, it has repeatedly foundered, notably over disputes between rich and developing nations on agricultural and industrial products.
   The APEC meeting took place two weeks after a Group of Eight summit in L’Aquila, Italy, where leaders of the world’s most powerful nations and emerging economies agreed to wrap up the talks by 2010.
   WTO chief Pascal Lamy, who was in Singapore to meet the APEC ministers, urged governments to show ‘political resolve’ against protectionism.
    ‘Pressure is likely to be increased on policymakers to resort to contingency measures and other actions that restrict trade, particularly if the upward trend in unemployment persists before things hopefully get better,’ he added.
   The APEC trade ministers, whose economies account for half the world’s economic output, said the ‘best insurance’ against protectionism will be a ‘successful and speedy conclusion’ of the Doha Round.