Business Supplement Issue-24

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6 Sunday, August 6, 2017 DT Stocks W E E K L Y M a r k e t O v e r v i e w SUMMARY Points Change (%) Turnover (BDTmn) Volume (mn) Advanced issues Declined issues Unchanged Issues DSEX 5,880.5 DSEX 5,880.5 1.12% 53,219 1,814 177 142 15 (+) 1.12% CSE ASI 18,236.6 1.09% 3,225 120 156 118 15 Banking stocks drive bull market • Tribune Business Desk Stocks gained moderately last week as banking stocks showed strength by sustaining its momentum throughout the week. Banking sector stocks rose 4.9%, thanks to positive earnings results posted by several banks over the week. Investors were seen trading mostly on the banking and textile sector stocks with the expectation of positive earnings, said traders at several stock brokerage firms. Banking stocks contributed 25.6% of the week’s total turnover, said the weekly market report of UCB Capital Management Ltd. Participation in the Dhaka Stock Exchange increased sharply by 70.7% to amount an average Most Traded Price Weekly change LankaBangla 57.0 0.88% City Bank 41.9 9.69% BBS Cables 84.3 - CNA Textiles 13.1 10.08% One Bank 24.7 7.39% SAIF Powertec 48.7 4.28% Mercantile Bank 24.3 7.05% Fu Wang Food 25.7 11.26% IDLC 79.0 3.81% Generation Next 12.0 3.45% Dhaka Tribune has accumulated the stock market related data primarily from Dhaka Stock Exchange website. The basis of information collected was primarily from daily stock quotations and audited/unaudited reports of publicly listed companies. High level of caution has been taken to collect and present the above information and data. The publisher will not take any responsibility if any body uses this information and data for his/her investment decision. For any query please email to news@dhakatribune.com. US jobs report sends global stocks higher • AFP, New York daily turnover of Tk1,064cr from previous week’s Tk624cr. The benchmark index, DSEX closed at 5,880.5 points on Thursday with a weekly gain of 65.4 points or 1.1% over the week while 5,900 5,880 5,860 5,840 5,820 5,800 5,780 5,760 5,740 Rosy US jobs numbers sent Wall Street higher on Friday, with the Dow Jones Industrial Average rising to an eighth straight record finish. The beleaguered US dollar also got a shot in the arm from the strong July employment report, which showed the world’s largest economy adding north of 200,000 new positions for the second straight month. Across the Atlantic, European equities also pushed higher amid unequivocal signs of American economic strength. In New York, the Dow rose 0.3%, while the S&P 500 and Nasdaq each gained 0.2%. But Adam Sarhan, CEO of 50 Park Investments, told AFP the jobs numbers were a “double-edged sword.” “On the one hand, it is good to see the economy growing, jobs coming in,” he said. “At the same time, it is a hawkish data point for the Fed.” The strong job creation and slowly rising wages could spur the Fed to raise the cost of borrowing a third time this year to keep a tight rein on inflation. But a rate increase would boost bank profits, and that fueled banking shares. Goldman Sachs jumped 2.6%, and JP Morgan Chase added 1.3%, leading the Dow higher. Dhaka Tribune CSE ASI advanced 197.2 points or 1.1% to end at 18,236.6 points. Contrarily to the benchmark index, the blue-chip index DS30 lost 6.0 points or 0.28% to end at 2,123.1 points, while DSE Shariah MOVEMENT OF DSEX INDEX LAST WEEK Meanwhile, the dollar jumped 0.8% against a basket of other major currencies, rising off a 15-month low. European markets higher “Strong wage growth is key takeaway today,” ING Economics said, but one strong jobs report may not be enough to sway skeptical based index declined by 6.0 points or 0.46% to close at 1,311.6 points. Among the traded issues 177 gained, 142 declined and 15 remained unchanged during the week. Dulamia Cotton Ltd secured the highest weekly gain of 32.1% while Union Capital Ltd turned out the worst loser with its price declining by 9.5%. LankaBangla Finance secured leadership position for the second time in a row on the weekly top turnover chart with a turnover of Tk245cr over the week with its share price advancing 0.9% by the end of week. The Dhaka Stock Exchange currently has a market capitalisation of BDT 395,570cr with the benchmark index, DSEX up by 16.8% since beginning of this year. • DAY 0 DAY 1 DAY 2 DAY 3 DAY 4 DAY 5 The eurozone is today seen by many as a zone of stability investors trying to second-guess the US central bank. The data also helped European equities extend early tentative gains ahead of the weekend, with Frankfurt and Paris seeing increases of better than one percent and London adding 0.5%. The newfound dollar strength took the pressure off the euro whose recent rise has been threatening to undermine the competitiveness of eurozone exporters. But fundamentals are still in favor of the European single currency, many analysts say. “The eurozone is today seen by many as a zone of stability,” Philippe Waechter, an economist at Natixis, told AFP. • DSE NEWS SHURWID: The Company has informed the following, “Due to crisis of power i.e insufficient supply of gas and electricity our production was seriously hampered and comprehensive loss was incurred. For this reason the Board of Directors of Shurwid Industries Limited has decided to sign an Agreement with Eurodesh Group that the management of Shurwid Industries Limited will be handed over to Eurodesh Group. In this connection, in the 111th board meeting which was held on 27 July 2017 at 7:30 pm, the draft agreement was approved by the Board of Directors.” CITYBANK: Q2 Un-audited – Consolidated EPS was Tk. 1.51 for April-June, 2017 as against Tk. 1.51 for April-June, 2016; Consolidated EPS was Tk. 2.18 for January-June, 2017 as against Tk. 2.30 for January-June, 2016. Consolidated NOCFPS was Tk. (10.98) for January-June, 2017 as against Tk. 0.82 for January-June, 2016. Consolidated NAV per share was Tk. 32.86 as of June 30, 2017 and Tk. 27.98 as of December 31, 2016. ISLAMIBANK: Q2 Un-audited – Consolidated EPS was Tk. 1.18 for April-June, 2017 as against Tk. 1.65 for April-June, 2016; Consolidated EPS was Tk. 1.80 for January-June, 2017 as against Tk. 2.15 for January-June, 2016. Consolidated NOCFPS was Tk. (14.06) for January-June, 2017 as against Tk. (4.30) for January-June, 2016. Consolidated NAV per share was Tk. 31.15 as of June 30, 2017 and Tk. 30.34 as of December 31, 2016. ONEBANKLTD: Q2 Un-audited – Consolidated EPS was Tk. 0.67 for April-June, 2017 as against Tk. 0.29 for April-June, 2016; Consolidated EPS was Tk. 1.90 for January-June, 2017 as against Tk. 0.85 for January-June, 2016. Consolidated NOCFPS was Tk. 7.58 for January-June, 2017 as against Tk. 2.36 for January-June, 2016. Consolidated NAV per share was Tk. 17.75 as of June 30, 2017 and Tk. 17.23 as of December 31, 2016. BATASHOE: Q2 Un-audited – EPS was Tk. 26.74 for April-June, 2017 as against Tk. 14.18 for April-June, 2016; EPS was Tk. 39.29 for January-June, 2017 as against Tk. 25.79 for January-June, 2016. NOCFPS was Tk. 11.80 for January-June, 2017 as against Tk. 5.99 for January-June, 2016. NAV per share was Tk. 288.77 as of June 30, 2017 and Tk. 232.03 as of June 30, 2016. BRACBANK: Q2 Un-audited – Consolidated EPS was Tk. 1.25 for April-June, 2017 as against Tk. 1.25 for April-June, 2016; Consolidated EPS was Tk. 2.66 for January-June, 2017 as against Tk. 2.10 for January-June, 2016. Consolidated NOCFPS was Tk. 13.45 for January-June, 2017 as against Tk. 10.75 for January-June, 2016. Consolidated NAV per share was Tk. 27.86 as of June 30, 2017 and Tk. 26.15 as of June 30, 2016. •
OPINION 7 DT Sunday, August 6, 2017 The fault in how we measure things THE lAST WORD • Tim Worstall We are quite obviously going through a massive technological revolution at present – Bangladesh imported 31 million mobile phones last year, a product that didn’t even exist at all well within my own adult lifetime. The smart-phone has made mobile internet a possibility and that’s almost certainly the fastest adopted technology in the entire history of the human species. All of which is great of course, technological advance makes us richer and we’re just fine with getting richer. However, the one great problem is that we can’t quite see is this is the normal economic numbers. If technology is changing, in a manner that adds more value, then we should see productivity rising. Yet we don’t, not as much as we think we should be at least – so there’s something wrong with the story that the new technology is adding value. One answer here is that we’re just measuring stuff wrong. Hal Varian, the chief economist at Google, has pointed out that GDP does deal well with free. The same is true of most of our normal economic statistics. Take the case of WhatsApp. There is no charge for it, it carries no advertising, therefore the output doesn’t appear in GDP at all. There are some 200 people within Facebook who work on it so the costs do appear in GDP. The net effect is, if we record the costs of producing something but not the value of what is produced, a reduction in productivity. Yet we’ve some 1 billion people getting some to all of their telecoms needs from the work of 200 people. That’s quite obviously a massive rise in productivity right there. Part of our problem is therefore just the way we measure things. But there’s another problem too. We generally do vastly underestimate the difficulties of gaining something useful out of a new technology. It’s not the new thing which adds value, it’s what people do with it. That in turn is hugely influenced by two things the jargon calls path dependency and incumbency. What’s going to happen is hugely reliant upon what has already happened – that internet access in Bangladesh is largely on mobile phones is dependent upon the fact that there never was a widespread Implementing a new technology is difficult because the world works in a certain way already. We’re therefore disrupting those who work by the current rules and there will thus be some resistance landline phone network before. The US and UK have much more cable and wire internet access because there was such a network before mobile phones, before even the internet. Incumbency just means that whatever the current arrangements are there are people who benefit from them. Those people therefore provide a certain resistance to changes in the way we do things. On Thursday, this newspaper had a super piece on YouTube tutorials and the like (web tutorials help Bangladeshi kids get their maths right) which neatly illustrates both problems for us. Our basic method of teaching, and this is even more so at university level, is actually a medieval technology. The one person up at the front, the teacher, reading out from a book, or explaining to the students, whatever it is, started because books were so expensive. Before Gutenberg and movable type in Europe, one single copy of a book took some full year of labour from two people. A book was therefore worth the same as two full years of human labour. Even the most exalted professor might therefore expect to acquire a library of say a dozen volumes in his life – and the students most certainly weren’t going to have a series of textbooks. Thus that medieval technological solution – the teacher reads out, or explains, the subject to the listening audience. Cheap printing should rather have replaced that but the university lecture lives on. It’s difficult to get an institution built around one technology to change. YouTube videos is bringing another such change. It’s possible for the student to sit through the same lecture as often as necessary to get the point across. This very much changes how education should be structured. For example, we simply do not want to measure education achieved by attendance. For attendance in one room, or a school, for a period of time is no longer the evidence we want that something has been learned. Why would it be when there is this other method of being able to understand something? That, of course, poses something of a problem for the education system we currently have. They currently mix and match two tasks, only one of which is actually teaching things to people. The other is providing a qualification, evidence, that something has been learned. Now of course, it’s possible to take this too far for not everyone is going to learn everything online. But what we almost certainly want to do is separate out those two tasks. Divorce the proof that something has been learned from BIGSTOCK the attendance for a period of time at a certain institution. It’s possible to think of ways to do this, say just the one system of public exams which anyone can take whenever, with anyone who wants to be able to contribute, in whatever manner, to people being able to pass them. That is, with this new way of teaching we want to be able to separate out the proof of what has been learned from the current system of teaching things to people. Note that this isn’t really a diatribe on how to reform education. It’s just an example. Implementing a new technology is difficult because the world works in a certain way already. We’re therefore disrupting those who work by the current rules and there will thus be some resistance. Think of the push-back we’d get if we announced that you don’t have to attend, or pay for, a school or university but you can still get your degree just by passing the exam? There will be at least some professors who will object, no? Technological advance is a wonderful thing and it is indeed what will make us all richer in the future. But it’s also not easy – that’s why it’s taken us 10,000 years and counting of civilisation to get even this far. • Tim Worstall is a Senior Fellow at the Adam Smith Institute in London.
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