Daily News Flash: 12th May 2020

Contents
GLOBAL NEWS ................................................................................................................................... 1
OIL PRICES CLIMB AS SAUDI ARABIA PLEDGES FURTHER PRODUCTION CUT ......................................... 1
ASIAN STOCKS SET TO FALL ON GROWING SECOND VIRUS WAVE FEARS.............................................. 1
MACRO ECONOMY ........................................................................................................................... 1
DEVELOPMENT BUDGET TO BECOME A CASUALTY OF STIMULUS PACKAGES ....................................... 1
BIG TAXPAYERS TARGETED TO BEAT SHORTFALL ................................................................................. 1
HEALTH SPENDING TO REMAIN UNCHANGED IN NEXT ADP! ................................................................ 2
VAT RECEIPT SLUMPS BY 39PC IN APRIL ............................................................................................... 2
GOVERNMENT SIGNS $500M LOAN AGREEMENT WITH ADB ............................................................... 2
BANK..................................................................................................................................................... 2
STANDARD BANK'S NET PROFIT JUMPS 243PC IN Q1 ........................................................................... 2
BRAC BANK NET PROFIT RISES TO BDT 5,646M IN 2019 ....................................................................... 3
FINANCIAL INSTITUTIONS ............................................................................................................. 3
IPDC FINANCE DECLARES 10PC CASH, 5.0PC STOCK DIVIDEND ............................................................. 3
TELECOMMUNICATION .................................................................................................................. 3
ROBI ACCUSES GP OF USING PANDEMIC FOR BUSINESS GAIN .............................................................. 3
CAPITAL MARKET ............................................................................................................................ 3
BANGLADESH’S BOURSE IS THE ONLY ONE IN THE WORLD IN RECESS .................................................. 3
CASH DIVIDEND PAY-OUT BY BANKS HALTED TILL SEPTEMBER ............................................................ 4
GLOBAL NEWS

OIL PRICES CLIMB AS SAUDI ARABIA PLEDGES FURTHER PRODUCTION CUT

 Oil futures rose on Tuesday, boosted by an unexpected commitment from Saudi Arabia to
deepen production cuts in June to help drain the glut in the global market that has grown as the
coronavirus pandemic crushed fuel demand.
 Brent crude LCOc1 futures climbed to a high of $30.11 a barrel and were up 0.8%, or 24 cents, at
$29.87 at 0206 GMT, reversing some of the previous session's losses. The benchmark fell $1.34
on Monday.
 Saudi Arabia said overnight it would cut production by a further 1 million barrels per day (bpd)
in June, slashing its total production to 7.5 million bpd, down nearly 40% from April
Source: https://tbsnews.net/world/global-economy/oil-prices-climb-saudi-arabia-pledges-further-production-cut-80263

ASIAN STOCKS SET TO FALL ON GROWING SECOND VIRUS WAVE FEARS

 Asian equities and oil prices were set to slip on Tuesday amid growing investor worries about a
second wave of coronavirus infections after the Chinese city where the pandemic originated
reported its first new cases since its lockdown was lifted.
 The central Chinese city of Wuhan reported five new confirmed cases on Monday, casting
doubts over efforts to lower coronavirus-related restrictions across the country as businesses
restart and individuals went back to work.
 A second wave of infections would likely snuff out the recent rally in equity markets and lead
investors to position for a severe and prolonged global recession.
Source: https://tbsnews.net/world/global-economy/asian-stocks-set-fall-growing-second-virus-wave-fears-80239

MACRO ECONOMY

DEVELOPMENT BUDGET TO BECOME A CASUALTY OF STIMULUS PACKAGES

 The annual development programme (ADP) is set to become a big casualty of the resource
reshuffling that the government is set to deploy to bankroll the massive stimulus packages
announced to jumpstart the economy once the rogue coronavirus has been tamed.
 Over the years, the government has always increased the size of the development budget by
about 20 per cent from the outgoing year.
 But the ADP that the Planning Minister MA Mannan would be finalising today for fiscal 2020-21
would be 6.33 per cent higher than this year's revised development budget at Tk 205,145 crore.
Source: https://www.thedailystar.net/business/news/development-budget-become-casualty-stimulus-packages-1901773

BIG TAXPAYERS TARGETED TO BEAT SHORTFALL

 The National Board of Revenue, or NBR, will step up its focus on large taxpayers until June of the
current fiscal year after it has found VAT collection slipped by nearly 40 per cent last month.
 The board has decided to depend on top revenue generating sectors such as tobacco, telecom,
bank, mobile financial services, internet, pharmaceuticals and some other sectors to achieve the
VAT collection target.
 VAT collection fell by 39 per cent to Tk 36.48 billion in April, down from Tk 60.15 billion in March
and officials attribute the slump to the government-enforced shutdowns.
Source: https://today.thefinancialexpress.com.bd/first-page/big-taxpayers-targeted-to-beat-shortfall-1589219411

1
HEALTH SPENDING TO REMAIN UNCHANGED IN NEXT ADP!
 The allocation for health sector in the development budget is unlikely to see any notable boost
in the fiscal year 2020-21, undermining the importance of plugging the holes that have come to
light during the ongoing coronavirus pandemic, officials said.
 They, however, said the weak project implementation capacity has prevented the government
from scaling up investments in the healthcare sector.
 The Planning Commission is likely to channel Tk 122.67 billion fund for the health sector in the
upcoming annual development programme, or ADP. The amount represents only 1.86 per cent
increase over the amount allocated in the original development blueprint for FY2020.
Source: https://today.thefinancialexpress.com.bd/first-page/health-spending-to-remain-unchanged-in-next-adp-1589219359

VAT RECEIPT SLUMPS BY 39PC IN APRIL

 The value-added tax collection by the National Board of Revenue dropped by 39 per cent to
Tk 3,648 crore in April compared with that in the previous month due to the coronavirus
pandemic fallout amid a countrywide lockdown in the month, according to the revenue board.
 The nosedive in VAT collection in April pushed the overall collection of the indirect tax in the 10
months (July-April) of the current fiscal year 2019-2020 into negative growth of 0.62 per cent
compared with that in the same period of the last FY2019.
 According to the NBR provisional data, VAT collection stood at Tk 67,760 crore in July-April of
the current FY20 against Tk 68,183 crore in the same period of last FY19.
Source: https://www.newagebd.net/article/106200/vat-receipt-slumps-by-39pc-in-april

GOVERNMENT SIGNS $500M LOAN AGREEMENT WITH ADB

 The Asian Development Bank (ADB) will provide Bangladesh $500 million budget assistance to
support the country's efforts to mitigate the socio-economic impacts of Covid-19 crisis.
 Economic Relations Division Secretary Fatima Yasminand ADB Country Director Manmohan
Parkash signed the loan agreements remotely on behalf of Bangladesh and ADB, respectively,
yesterday.
 The Asian Infrastructure Investment Bank is also planning to provide $250 million in cofinancing
with ADB to support the government's programmes. And the total assistance package is
expected to benefit over 15 million poor and vulnerable people in Bangladesh, reads a press
release.
Source: https://tbsnews.net/economy/government-signs-500m-loan-agreement-adb-80191
Source: https://today.thefinancialexpress.com.bd/last-page/govt-adb-sign-500m-loan-deal-1589219691

BANK

STANDARD BANK'S NET PROFIT JUMPS 243PC IN Q1

 The net profit of Standard Bank surged 243 per cent year-on-year to nearly Tk 365 million in the
first quarter (Q1) for January-March, 2020 despite ongoing Covid-19 pandemic.
 The board of directors of the bank in a virtual meeting through digital platform recently
approved among others, the un-audited financial statements of the bank for the first quarter
ended on March 31, 2020 and disclosed it.
 As per the disclosure, the bank's net profit after tax stood at Tk 364.95 million in January-March,
2020 which was Tk 106.25 million in the same period of the previous year.
Source: https://today.thefinancialexpress.com.bd/stock-corporate/standard-banks-net-profit-jumps-243pc-in-q1-1589211399

2
BRAC BANK NET PROFIT RISES TO BDT 5,646M IN 2019
 As the nation-wide COVID-19 shutdown continues, BRAC Bank held its earning disclosure for
financial year 2019 through an online virtual platform.
 Local and foreign investment analysts, media professionals and capital market experts were all
connected to the event digitally.
 BRAC Bank’s Managing Director and CEO, Selim R. F. Hussain, and Members of the Senior
Management Team presented the financial results and also spoke about the bank’s strategy at
the event held recently said a press release.
 Earlier in a price sensitive information, the bank had declared a dividend of 15 per cent for 2019
in the form of 7.5 per cent cash and 7.5 per cent stock.
Source: https://thefinancialexpress.com.bd/stock/brac-bank-net-profit-rises-to-bdt-5646m-in-2019-1589222571

FINANCIAL INSTITUTIONS

IPDC FINANCE DECLARES 10PC CASH, 5.0PC STOCK DIVIDEND

 The 38th Annual General Meeting (AGM) of IPDC Finance Ltd was virtually held on Monday
through a video conferencing. The company declared 10 per cent cash and 5.0 per cent stock
dividend for the year of 2019, as approved by the shareholders, said a statement.
Source: https://today.thefinancialexpress.com.bd/stock-corporate/ipdc-finance-declares-10pc-cash-50pc-stock-dividend-
1589211545

TELECOMMUNICATION

ROBI ACCUSES GP OF USING PANDEMIC FOR BUSINESS GAIN

 Robi Axiata, the second largest telecom operator in the country, on Monday alleged that the
leading operator Grameenphone had recently launched a number of offers in the name of
corporate social responsibility to acquire more market share using the coronavirus outbreak
crisis.
 Robi made the allegation at an online press briefing where it announced initiatives involving
around Tk 170 crore amid the pandemic.
 ‘It is regrettable that such remarks are made,’ he said, adding, ‘we appreciate that others are
inspired and coming forward.’
Source: https://www.newagebd.net/article/106205/robi-accuses-gp-of-using-pandemic-for-business-gain

CAPITAL MARKET

BANGLADESH’S BOURSE IS THE ONLY ONE IN THE WORLD IN RECESS

 Bangladesh is the only country in the world where stock trading has remained closed because of
the coronavirus pandemic.
 Until this week, Bangladesh, Sri Lanka and Jordan were the three countries where stock markets
had been shut.
 Sri Lanka started the trading yesterday and witnessed a huge sale pressure.
 The Colombo stock market's index of the most liquid shares, S&P SL 20, plunged more than 10
per cent on the first day of the trading since March 20.
 Jordan, where trading had been suspended since March 16, also experienced the same when it
reopened on Sunday. The Amman Stock Exchange's ASE Index dropped more than 15 per cent.
Source: https://www.thedailystar.net/business/news/bangladeshs-bourse-the-only-one-the-world-recess-1901800

3
CASH DIVIDEND PAY-OUT BY BANKS HALTED TILL SEPTEMBER
 In a bid to make a strong capital base and retain an adequate liquidity in the banking system to
support the virus-struck economy, banks have been asked to refrain from disbursing cash
dividends till September this year.
 The Bangladesh Bank has issued a dividend policy for all banks, limiting the declaration of the
highest dividend at 30 percent including maximum 15 percent in cash for 2019.
 Banks that have already announced dividends for 2019 but the amount is inconsistent with the
new policy have been asked to suspend it.
Source: https://tbsnews.net/economy/banking/dividend-disbursement-banks-stopped-till-september-80071
Source: https://www.thedailystar.net/business/news/bb-finally-orders-banks-suspend-dividends-prime-the-pump-1901821

4
 CONTACT US
Pakistan, Bangladesh & Sri Lanka Research
Anshuman Ray, MBA Founder, Chairman & CEO USA aray@1857advisors.net +12019209252
Rhoyce Sommerhaug, CFA Sr. Advisor, Top Down & Thematic Research USA rhoyce@1857advisors.net +14152267757
Dr. Ashish Chandra Ray, MS Sr. Advisor, Indian Specialty Pharmaceuticals IND dracray@1857advisors.net +917044067726
Dr. Krishna Ray, MD Sr. Advisor, Medical Diagnostics IND drkray@1857advisors.net +917044067726
Neelanjana Sarker, RIA, CPA, Finra S7/63 Forensic &Accounting Research USA investments@1857advisors.net +12019209252
Bijay Das, ACA Forensic &Accounting Research IND bijay@1857advisors.net +911146688777
Shafiqud Doulah, MBA Bangladesh Market Research BD shafiq@1857advisors.net +88029574328
Suranga Pradeep, ACA Forensic &Accounting Research SL suranga@1857advisors.net +94112505516
Surjeet Singh Web Delivery & Bloomberg IND itsupport@1857advisors.net +919350078193
Sanjaya Udara IT & Database SL itsupport@1857advisors.net +94112505516
Kanika Sharma Corporate Finance IND legal @1857advisors.net +919999033418

South Asia: Domestic & Foreign Institutional Research Sales

Anshuman Ray, MBA Member, Idea Generation Committee USA aray@1857advisors.net +12019209252
Rhoyce Sommerhaug, CFA VP – International Research Sales USA rhoyce@1857advisors.net +14152267757
Seshan Siva Subramanian VP – Institutional Sales/Block Deal FacilitationIND siva@1857advisors.net +971564742764
Sushobhan Bhattacharjee VP –Executive Coordinator IND sushobhan@1857advisors.net +917044067726
Shafiqud Doulah, MBA AVP, Institutional Sales/Block Deal FacilitationBD shafiq@1857advisors.net +88029574328

Offices

INDIA PAKISTAN BANGLADESH SRI LANKA UAE

1857 Investment Advisors India Pvt Ltd
D-77, 2nd Floor, Defence Colony,
New Delhi - 110024 India
T: +911146688777, 46688700
F: +911146688770
ArifHabib 1857 (Pvt) Ltd 1857 Advisors Bangladesh Holdings Ltd Sepoy Advisors (Pvt) Ltd 1857 Advisors FZC F.Z.C
ArifHabib Centre Cosmic Tower (9th Floor), 106/KA, 104/1/1, Havelock Rd, P.O. Box: 5232 Fujairah
23, M.T Khan Road Naya Paltan, Box Culvert Road, Colombo 05 Sri Lanka United Arab Emirates
Karachi - 74000 Pakistan Dhaka - 1000 Bangladesh T: +94112505516 T: +971559956389
T: +922132460717 T: +88029574328
F: +922132429653 F: +88029574329

INDIA | PAKISTAN | BANGLADESH | SRI LANKA | UAE

For trade related queries please contact us at

1857trading1@bloomberg.net
Limitation of Liability:

The information and opinions presented in this research report (“Report”) have been procured or derived by 1857 Advisors FZC (herein after referred to as “1857”) from sources
believed to be reliable, but 1857 makes no representation as to their accuracy, completeness or timeliness and does not assume any liability or responsibility for any loss
arise to any person or entity in connection with the use of the material presented in this report. The information is provided merely as a complementary service and do not
constitute an offer, solicitation for the purchase or sale of any financial instruments, inducement, promise, guarantee, warranty, or as an official confirmation of any
transactions or contract of any kind.

1857 may have issued at any time in the past, and may at any time in the future that are inconsistent with, and reach different conclusions from, the information presented in
this report and is under no obligation to ensure that such other communications are brought to the attention of any recipient of this report.

Prospective investors and others are cautioned that any forward-looking statements are not indication or guarantee of future performance and no representation or warranty,
express or implied, is made regarding future performance. The information, estimates and opinions in this report reflect a judgment at the time of publication by 1857 and are
subject to change without notice. While we endeavor to update on a reasonable basis the information discussed in the reports, there may be regulatory, compliance, internal
procedures within Sepoy Advisors or other reasons that prevent us from doing so.

The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any
use made of this information. Each recipient of the reports should make such investigation as deemed necessary to arrive at an independent evaluation of an investment in
the securities of companies referred to in such reports.

The reports are not for public distribution. Reproduction or dissemination, directly or indirectly, of research data and reports in whole or in part, is prohibited except with the
written permission of 1857. Persons into whose possession the reports may come are required to observe these restrictions.

1857and/or its Affiliates and its officers, directors and employees including the analysts/authors shall not be in any way responsible for any indirect, special, consequential,
punitive or exemplary damages including lost profits that may arise to any person from any inadvertent error in the information contained in the reports nor do they take
guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of
action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

www.1857advisors.net