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DT 10 Business SUNDAY, APRIL 16, 2017 CAPITAL MARKET SNAPSHOT: PAST WEEK DSE Broad Index 5,645.9 -1.6% ▼ Index 1,294.9 -1.4% ▼ 30 Index 2,087.3 -2.2% ▼ Turnover in Mn Tk 35,932.4 -25.0% ▼ Turnover in Mn Vol 1,094.2 -11.4% ▼ CSE All Share Index 17,472.3 -1.8% ▼ 30 Index 15,521.9 -2.5% ▼ Selected Index 10,593.7 -1.8% ▼ Turnover in Mn Tk 2,418.4 -26.9% ▼ Turnover in Mn Vol 91.9 -0.2% ▼ Costly car parts being stolen from ports ‘Negligence’ of authorities blamed for lack of security at the country’s two sea ports • Shariful Islam Reconditioned car importers have alleged that different parts of their imported vehicles are being stolen from the country’s major two sea ports, Chittagong and Mongla, costing them dearly. They blamed the authorities for their “negligence” to maintain security in the ports and stop thefts. According to them, some of the port staff are behind the theft and irregularities. Importers said insects like rats are also infiltrating into the vehicles and causing damage to different parts. They said the cars were also parked randomly at the sheds, which caused scratches on the car bodies. In Chittagong port, a car shed is yet to open although 10 months have passed after launching. “We are losing Tk30,000- Tk100,000 a car due to irregularities and negligence of the authorities,” said Habibullah Dawn, president of Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida). “It (the loss) has increased significantly in last five months. Last month, a company had to buy parts worth Tk3,50,000 for its 16 cars,” he said. Barvida sent two separate letters to Chittagong Port Authority and Mongla Port Authority seeking immediate actions against the flaws in services. The letters signed by Barvida president were sent to MPA Chairman Commodore AKM Faruque Hasan on March 18 and CPA Chairman Rear Admiral Mohammad Nizamuddin Ahmed on March 28. According to Barvida, expensive parts of imported cars such as brand logo, looking glasses, Expensive parts of imported cars such as brand logo, looking glasses, air-conditioners, SD cards and other parts are being stolen from sea ports We are losing Tk30,000-Tk100,000 a car due to irregularities and negligence of the authorities air-conditioners, SD cards and other parts are being stolen from Mongla port during the car shifting time from ships to car sheds. Barvida asked the Mongla port authorities to provide them with online banking facilities. The dealers demanded a change in daily schedules of car delivering. MPA Chairman Commodore AKM Faruque Hasan said: “We are about to install 30 CCTV cameras at the port to ensure security. Surveillance will be increased to stop stealing of parts.” He blamed inadequate manpower as one of the main reasons behind such incidents. He said currently the Mongla port has 1,200 workers while it needs 2,929. Another letter which was sent to CPA said the newly constructed car shed with the capacity of 900 cars at Chittagong port has not been functional yet though it was formally inaugurated on May 7, 2016. Md Zafar Alam, member (admin DHAKA TRIBUNE and planning) of CPA said: “We could not start operation (of the new shed) as Bangladesh railway authorities did not provide any land for the 20 feet road at the adjoining areas of the shed.” “This is not our responsibility any more as we have handed it over to customs. The customs has the authority to declare the car shed as bonded warehouse and operate it,” he said. The car importers and dealers have urged port authorities to in car carrier facilities to ensure security in car carrying and reducing risk of losses in accidents. • China’s Q1 growth stabilises at 6.8% • AFP, Beijing China’s growth stabilised in the first quarter thanks to rising investments and a recovery in exports, experts said, though they warned the reprieve may be temporary. According to an AFP survey of 16 economic analysts, the gross domestic product expanded 6.8% in the first three months of this year - the same level of growth as in the last quarter of 2016. The official GDP growth figure will be released tomorrow. “Our expectation is stable to stronger growth in the first quarter, based on faster industrial production and investment related mostly to the housing sector bubble and increased fiscal spending on infrastructure,” Brian Jackson of IHS Markit told AFP. Cheap credit has bolstered the construction sector since last year, attracting savers and speculators who have fuelled housing prices in large cities and accelerated manufacturing activity. While the country attempts to rebalance its economy around services and domestic consumption, “the question we need to ask is whether China has returned to the same old property-driven model,” ANZ Bank’s chief economist for greater China, Raymond Yeung, told AFP. •
Tanners fear cancellation of huge export orders • Ibrahim Hossain Ovi and Shariful Islam Leather factory owners are fearing the loss of export orders following the shutdown of Hazaribagh tanneries over their failure to relocate to Savar Tannery Estate. The tanners who have already shifted their units to the Savar estate are also facing the same threat as they are yet to install their crust and finished leather sections as the gas connection is still not available there. Talking to Dhaka Tribune, a good number of factory owners expressed their apprehension of losing orders and buyers while some claimed they had already lost some of their export orders. “Our factory had a work order of $15 million from a Malaysian buyer. But, the order has been canceled and shifted to India and Pakistan,” FM Rafikul Islam, director (technical) of Dhaka Hide and Skins told the Dhaka Tribune. “We are also fearing huge losses as there are pending work orders worth around $30 million, which have to be completed within the next three months,” said Islam. Delay in shipment may erode buyers confidence, which would ultimately hurt the country’s second largest foreign currency earning sector, he added. “The manufacturers of leather footwear might have to import processed leather as the tanning is being hampered due to the relocation of tanneries,” said M Abu Taher, former chairman of Bangladesh Finished Leather, Leather Goods, and Footwear Exporters Association. In a press briefing on April 2, Bangladesh Tanners Association (BTA) claimed that the leather industry might suffer a loss of over Tk1,000cr export orders after the closure of the Hazaribagh tanneries. In the fiscal year 2015-16, Bangladesh exported leather and leather products worth $1.16. After court order, the government disconnected gas, electricity and water connections to Hazaribagh tanneries. • Business 11 SUNDAY, APRIL 16, 2017 US: China, Germany must do more to reduce trade surpluses • AFP, Washington DT China and Germany are not manipulating the value of their currencies to gain an unfair trade advantage, but both should do more to reduce their large trade surpluses with the United States, the Treasury Department said Friday. The decision was expected after President Donald Trump this week reversed himself and said China was not a currency manipulator. The administration’s first report to Congress on foreign exchange policies of US trading partners continues the stance of the Obama administration, putting those and four other countries on a watch list, though using a much tougher tone. Unlike the previous administration, which issued its final re port in October, the latest semi-annual report urges specific policy actions the countries should pursue that would lead to a lower trade surplus. Trump repeatedly pledged in his election campaign to name China as a currency manipulator on his first day in office, but did not do so. He has retreated from that position after meeting with Chinese President Xi Jinping in Florida last weekend. China met only one of the three criteria required to be labeled a currency manipulator - a large trade surplus with the United States - while Germany also met a second: a current account surplus amounting to more than three percent of the nation’s economic output. Beijing has not intervened in markets to weaken the value of its currency - the third criteria - and in fact has tried to keep the renminbi from falling further amid the country’s relatively sluggish growth rate. And Germany, as part of the eurozone, cannot act unilaterally to change the value of the euro. A weaker currency makes exports cheaper compared with those of competitors. Japan, South Korea, Taiwan and Switzerland also were again included on the monitoring list. Even though China has not moved to keep its currency weak in recent years, the country “has a long track record of engaging in persistent, large-scale, one-way foreign exchange intervention, doing so for roughly a decade,” the report said. That “distortion in the global trading system... imposed significant and long-lasting hardship on American workers and companies.” With a trade surplus in goods with the United States of $347bn last year, and continued policies that restrict free trade, “Treasury will be scrutinizing China’s trade and currency practices very closely.” The department said Germany should take steps, notably spending policies, “to encourage stronger domestic demand growth, which would place upward pressure on the euro’s nominal and real effective exchange rates and help reduce its large external imbalances.” Treasury Secretary Steven Mnuchin said ensuring a level playing field for US businesses is an “essential component of this administration’s strategy.” “Expanding trade in a way that is freer and fairer for all Americans requires that other economies avoid unfair currency practices, and we will continue to monitor this carefully,” he said in statement. • Citi Foundation honours 14 entrepreneurs and institutions with Citi Microentrepreneurship Awards this year. The function was attended yesterday by Planning Minister AHM Mustafa Kamal, State Minister for Finance and Planning MA Mannan, Bangladesh Bank Deputy Governor SK Sur Chowdhury, Chairperson of the 12th CMA Advisory Committee Dr Wahiduddin Mahmud, Sub-Cluster Head of Citi Bangladesh and Sri Lanka James Morrow and Managing Director of Citi Bangladesh Rashed Maqsood Walton takes part in Canton Fair • Tribune Business Desk Electronics goods brand Walton has taken part at the “Canton Fair 2017” to explore global markets and consumers. Canton Fair 2017, also known as China Import and Export Fair, is the largest biannual China trade fair began April 15 and will end on 19 at Pazhou Complex in Guangzhou. Walton, as a Bangladeshi company, is participating in the expo for the second consecutive year and will show products with “Made in Bangladesh” level to promote and brand Bangladesh as a manufacturer of electronics products, according to a press statement released yesterday. Roqibul Islam Rakib, Head of International Marketing of Walton Group, said Walton secured the apex position in the local electronics and electrical market. He said: “Now the target is to make a strong foot on the international market. Canton Fair would play a vital role in the successful implementation of the company’s target.” As people of all countries of the world usually visit this mega expo, Walton’s participation would help the company creating a business relationship with the importers of household electronics and electrical appliances across the world, he added. To attract the fair’s visitors, Walton is conducting massive branding campaigns in different countries like UK, USA, Africa and Middle East. •
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