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MONTHLY BUSINESS REVIEW

September 2009 Vol. 5 Issue 09

Industry and Equity Analysis Team, Credit Risk Management , IDLC Finance Limited

Monthly Business Review September 2009 ECONOMY AND BUSINESS

CONTENTS...

th

ECONOMY AND BUSINESS ................................................................ 1 SELECTED ECONOMIC INDICATORS ..................................................... 3 IMPORT LC STATISTICS

.................................................................... 3

EXPORT STATISTICS

................... 3

REGULATORY NEWS ........................................................................... 3 INTERNATIONAL................................................................................... 4 MARKET ROUNDUP.............................................................................. 5 WEEKLY CURRENCY ROUNDUP ............................................................ 5 EXCHANGE AND FORWARD RATES ...................................................... 5 TREASURY BILL/BOND AUCTION INFORMATION ................................ 5 INTERNATIONAL COMMODITY PRICES ................................................. 5 IDLC NEWS .............................................................................................. 5 NEWS IN BRIEF...................................................................................... 6 ECONOMY.................................................................................................. 6 BUSINESS-GENERAL ............................................................................... 6 BUSINESS - FIRM SPECIFIC .................................................................... 6 TRAINING / SEMINARS / WORKSHOPS.................................................. 7

Bangladesh ranks 20 in list of food shortage risk Most of sub-Saharan Africa and South Asia are facing extreme or high risk of food shortages, according to a ranking of 148 nations obtained by AFP on September 07, 2009. The three most populous countries in South Asia also face food precariousness: Pakistan, ranked 11th on the index, is at "extreme risk," while th th Bangladesh and India are both at "high risk," ranked 20 and 25 respectively. The five countries topping the risk list -- Angola, Haiti, Mozambique, Burundi and Democratic Republic of Congo -are all mired in poverty, but other factors also boost vulnerability. The United States is least at risk followed by France, Canada, Germany and the Czech Republic, according to the Food Security Risk Index, calculated from dozens of variables that determine a country's capacity to feed its people. Loan defaults spike, state banks better off Bank loan defaults increased by 0.22% or BDT 4.92 bn in the first six months of this calendar year, but state banks have been able to bring the rate down through rescheduling. On June 30, 2009, banks registered BDT 2187.29 bn in outstanding loans, of which BDT 229.73 bn or 10.5% was counted as loan defaults. The outstanding loan reached BDT 2083.62 bn on December 31, 2008, while loan defaults piled up to BDT 224.81 bn or 10.79% of the total unrealised loan.

REWARDS AND RECOGNITIONS ............................................................ 7

LOAN DEFAULT TREND IN DEC’ 08-JUN’ 09

CSR ACTIVITIES IN THE MONTH............................................................. 7 INTERNATIONAL ....................................................................................... 7 UPCOMING EVENTS............................................................................. 8

in BDT bn

127.64 119.25

KEY DIPLOMATIC / INTERNATIONAL ORGANIZATIONS APPOINTMENTS .................................................................................... 8

56.98 67.57

MANAGEMENT CHANGE - BANKS & FIS....................................... 8

2.86

MANAGEMENT CHANGE - OTHER ORGANIZATIONS................ 8 CAPITAL MARKET REVIEW ............................................................... 9 DSE TOP 15 APPRECIATING ISSUES IN THE MONTH .......................... 9 DSE TOP 15 DECLINING ISSUES IN THE MONTH ................................. 9 DSE CAPITALIZATION AND GAINING, LOSING & UNCHANGED ISSUES ....................................................................................................... 9 DSE INDUSTRY-WISE STATISTICS ....................................................... 10 MOVEMENT OF DSE AND CSE INDICES .............................................. 10 FORTHCOMING IPO APPROVED BY SEC ............................................ 10 INTERNATIONAL MARKET MOVEMENTS ............................................ 10 YEARLY PROFIT & DIVIDEND DECLARATIONS IN SEPTEMBER ...... 11 DIVIDEND DECLARATIONS IN SEPTEMBER ....................................... 11 MUTUAL FUNDS VALUE AT THE END OF AUGUST............................ 11 SELECTED DSE NEWS OF THE MONTH .............................................. 11 FINANCIAL GLOSSARY.......................................................................... 12

Prepared by: Industry and Equity Analysis Team Credit Risk Management IDLC Finance Limited If you have any comments and/or suggestions, please write to [email protected]

State Banks

3.68

Priv ate Banks Foreign Banks

Default Loan as of Dec-08

37.32 39.22 Specialised Banks

Default Loan as of Jun-09

Tech products drive bank profitability According to a recent Bangladesh Bank (BB) study on "Innovative Technology and Bank Profitability: The Bangladesh Experience", banks that adopt technology are more profitable and reduce risks as they gain maturity in offering such services. The use of technology-driven products by local banks does not date back long. In 1998, one PCB had credit card facilities, while there were no debit card facilities, ATMs or POS. Another foreign bank operated credit cards and ATM service at the time. In 2006, 14 out of 30 PCBs launched credit card services, 17 launched debit cards, 17 had ATM services, 7 had POS, 3 had internet while 22 had online banking. Three out of the four state-owned banks introduced debit cards in 2006. Now, almost all private banks have the technology-driven business model to give better and faster services to their clients. Nearly 100% of the 3,500 private bank branches are computerized, which was 46% a decade ago. According to the latest BB data, payments and transactions by credit card were nearly BDT 11 bn in June 2008, which was BDT 20 bn for debit card, BDT 40.6 bn for ATMs and BDT 1.80 bn for POS. The transactions were almost half in December 2007. SoBs giving in to PCBs State-owned commercial banks (SoBs) have been losing ground to private commercial banks (PCBs) in their transactions and

Page 1 of 12

Monthly Business Review September 2009 according to Bangladesh Bank (BB) data, deposit and lending position of SoBs showed a dismal performance up to June, 2009 as they trailed behind the PCBs by a large margin. The deposit position of SoBs until June 2009 stood at BDT 840 bn and loans and advances BDT 495 bn while the PCBs deposit was BDT 1,600 bn and lending BDT 1,388 bn. The advance of the SoBs was 59% of their total deposit while it was 87% of the PCBs, the data revealed. The number of SoBs branches up to July this year was 3,347 whereas the number of branches of PCBs was 2,142. Investments in EPZs M/s Vancot Limited, a Bangladeshi company, will invest USD 9.865 mn in setting up a knit garments manufacturing industry in the Karnaphuli EPZ. The 100% local company will create employment opportunities for 3560 Bangladeshi workers including four foreign nationals. Poor infrastructure suffocates businesses th Bangladesh has moved up to the 106 position among 133 th economies this year from the previous year’s 111 among 134 countries in the global competitiveness index, but inadequate infrastructure, corruption, low-quality higher education and ineffective bureaucracy continue to plague the business sector. The country improved its rank slightly, advancing by five ranks, by making substantial progress in basic requirements including macro-economic stability and better performance of public institutions in 2008, , according to the Global Competitiveness Report (GCR) 2009-10 - a study by the World Economic Forum released recently. Infrastructure in Bangladesh ranks among the th worst in the world, securing only the 126 position in 133 nations. THE MOST PROBLEMATIC FACTORS FOR DOING BUSINESS Inadequate supply of infrastructure

20.3

Corruption

16.0 15.4

Inefficient government bureaucracy Access to financing

10.8

Policy instability

9.3

Inadequately educated workforce

5.2

Tax regulations

4.7

Government instability/coups

4.6

Crime and theft Inflation Foreign currency regulations Tax rates Poor work ethic in national labor force

3.4 2.6 2.4 1.8

reducing the time required from 35 days to just a day. Bangladesh has also reduced the corporate income tax rate from 40% to 37.5%, while increasing the capital gains tax rate from 5% to 15%.The time required to acquire a bonded warehouse was reduced by three months, while the time needed to register property dropped by nearly 200 days. Trade was expedited by an automation of customs clearance at the Chittagong Port as it condensed the time required to clear goods. However, the report suggests Bangladesh needs to adopt a more strategic and institutionalised approach to regulatory reforms to keep up with an increasingly competitive global environment where other countries are reforming fast. Among South Asian nations, Pakistan tops the th list with the 85 position, followed by the Maldives at 87, Sri Lanka at 105, Nepal at 123, Bhutan at 126, India at 133 and Afghanistan at 160. Poverty reduction rate belies expectation during last 4 yrs The rate of the country's poverty reduction has slowed down over the last few years despite government's increased expenditure, about 60% of the annual budget outlays over the previous few years, on the reduction of hunger. A World Bank poverty assessment report said Bangladesh's poverty reduction rate slowed down between 2005 and 2008 due to food price shocks and regional disparity in government spending. Though the gross domestic product grew at around 6% annually during 2005-2008, the poverty rate had fallen only two percentage points from 40% of the population as against the expected decline of around five percentage points during the period, according to the WB report. FDI prospect seen gloomy Foreign direct investment in Bangladesh crossed USD 1 bn mark in 2008 for the first time, but prospect looks gloomy for the current year due to delayed impacts of global recession. Bangladesh received foreign capital amounting to USD 1,086 mn in 2008, 63% more than that of 2007, according to the World Investment Report (WIR) 2009 of the UN Conference on Trade and Development (UNCTAD), released globally on September 17, 2009. Despite an inflow of billion-dollar foreign direct investment into the country in 2008, the investment proposals registered with the investment promotion agency declined 9% in 2009. The investment board has registered BDT 42.61 bn worth investment proposals in the first eight months of 2009 as against BDT 46.68 bn proposals during the corresponding period of the previous year, according to Board of Investment (BoI) data. Registration of domestic investment proposals also dropped significantly to BDT 126 bn involving 971 projects during this period from BDT 154 bn on 1104 projects in the same period of the last year.

1.5

Poor public health

1.1

Restrictive labor regulations

0.7

Bangladesh goes down in global ranking Bangladesh fell four notches to the 119th position in a survey of 183 nations, mainly because of slower reforms, according to the seventh “Doing Business 2010” report jointly published by the World Bank and IFC and released globally on September 09, 2009. The World Bank explains that Bangladesh has reformed in three areas in the reported period (June 2008 to May 2009), but other countries have done more. Bangladesh has been recognized as the most active reformer in South Asia, implementing three reforms -- introduction of an online company registration system, corporate income tax cuts and expedited cross-border trade by automating customs clearance systems. According to the report, Bangladesh has simplified business startup by implementing an online company registration system,

Slack sales for mobile operators in August Mobile phone operators added a mere 0.94 mn customers to their networks in August 2009. According to Bangladesh Telecommunication and Regulatory Commission (BTRC) statistics released on September 29, 2009, the six mobile operators provided mobile phone services to 48.91 mn subscribers till August 2009. The total number of mobile phone subscribers was 47.97 mn in July. Service Provider GrameenPhone Banglalink AKTEL Warid Telecom PBTL (CityCell) Teletalk Total

Page 2 of 12

New Subscriber Addition Total Subscribers at in August 2009 the end of August 2009 [In Million] [In Million] (0.02) 21.13 0.63 11.90 0.30 10.20 0.02 2.63 0.01 1.97 0.00 1.08 0.94 48.91

Monthly Business Review September 2009 SELECTED ECONOMIC INDICATORS Item Broad Money (M2) Bank deposits Bank credit Total Domestic Credit Revenue Collection Export Opening of LC Foreign Exchange Reserve Workers’ Remittances Annual rate of Inflation

Period/ As of

Value/bn

Period/ As of

Value/bn

+/(-)%

July’09

2,981

July’08

2,513

18.64%

June’09

2,605

June’08

2,161

20.52%

June’09

2,259

June’08

1,966

14.92%

July’09

2,902

July’08

2,520

15.15%

July’09

37

July’08

38

-2.51%

July’09

1.438

July’08

1.543

10.31%

July’09

2.127

July’08

2.332

-10.77%

September ’09

9.356

September ’08

5.821

60.73%

August’09

0.938

August’08

0.722

29.92%

July’09

6.04%

July’08

10.00%

Source: Selected Indicators: Weekly Update: September 30, 2009; Bangladesh Bank.

IMPORT LC STATISTICS Items Capital Machinery Textile Fabrics (B/B & Others) Rice and Wheat Chemicals & Chem. Products Petroleum & Petro Products Edible Oil & Oil Seeds Raw Cotton Scrap Vessels Pulses Cotton Yarn Paper and Paper Board Synthetic Fibre & Yarn Sugar and Salt Others

Total

Figures in USD mn

July – June 2008-09 FLCO SOLC OSTLC

July – June 2007-08 FLCO SOLC OSTLC

1,235

1,404

881

1,754

1,415

1,080

2,995

3,037

1,373

3,034

2,693

1,456

838

871

171

2,026

1,412

361

2,210

2,244

582

2,267

1,797

728

1,865

2,037

872

2,577

2,290

960

990

915

344

1,305

1,112

327

1,277 782 256 473

1,217 795 214 501

474 15 101 280

1,283 650 323 530

1,123 593 320 437

425 55 78 313

324

299

94

309

267

82

322

321

136

337

288

149

328 7,909 21,803

337 7,254 21,444

156 3,265 8,745

513 7,528 24,436

346 6,280 20,373

204 2,969 9,186

FLCO = Fresh LC Opening, SOLC = Settlement of LC, OSTLC=Outstanding LC Source: Major Economic Indicators: Monthly Update; Aug 2009; Bangladesh Bank.

EXPORT STATISTICS Item Knitwear Woven RMG Frozen Food Home Textile Leather Chemical Products Foot Wear Engineering Products Agricultural Products Raw Jute Others Total

Figures in USD mn

July 2009 651.85 521.78 32.27 25.90 14.78 27.51 20.99 16.02 13.29 6.44 107.35 1,438.18

July 2008 640.50 547.30 64.06 28.99 19.13 39.96 18.58 19.74 15.65 11.57 137.61 1,543.09

Change +/(-) 1.77% -4.66% -49.63% -10.66% -22.74% -31.16% 12.97% -18.84% -15.08% -44.34% -21.99% -6.80%

Source: Export performance for the month of July 2009; Export Promotion Bureau, Bangladesh

REGULATORY NEWS Potato seed producers to get soft loan Bangladesh Bank (BB) has decided to provide soft loan for producing potato seeds through tissue culture. BB issuing a circular on August 26, 2009 advised all the commercial banks that the potato seed production through tissue culture would be given low cost loan facility under the guideline of the Agriculture and Rural Credit Policy and Programme for the fiscal year 2009-10. BB eases rules for advance payment against imports Bangladesh Bank (BB) has relaxed the foreign exchange regulations relating to advance payment against imports, particularly by exporters. Under the amended regulations, a local exporting firm will be allowed to send a maximum of USD 10,000 instead of USD 5,000 without any bank guarantee against a bonafide business purpose using their own Exporter's Retention Quota (ERQ). BB issued a circular in this connection on August 27, 2009 and asked the commercial banks to follow the new instruction relating to advance payment against imports properly. BB ups NOP limits for banks Bangladesh Bank (BB) has increased the net open position (NOP) limits of commercial banks for holding foreign exchange in order to keep the inter-bank foreign exchange market stable. BB refixed the NOP limit of 45 commercial banks out of 48 to USD 517 mn on September 13, 2009 from USD 432 mn earlier. The new NOP has been determined on the basis of 15% of the total capital of the banks as on December 31, 2008. BB strengthens monitoring on disbursement of farm loan Bangladesh Bank (BB) has strengthened its monitoring on disbursement of farm loan through introduction of new reporting system aiming to ensure credit to the real farmers across the country. Under the new system, the banks will have to report on disbursement of agricultural loan with prescribed forms mentioning land phone and mobile telephone numbers of branches to the central bank from this month. The report must be submitted to the concerned department of BB within 15 days of the next month. The banks will report to BB separately if they use non-government organisations (NGO) linkage for disbursement of the farm credit. The central bank issued a circular in this connection on September 07, 2009 and asked the commercial banks to follow new reporting system properly for ensuring accountability and transparency of the agro-credit disbursement. 15 exportable items to get cash subsidy this year The government has announced a fresh list of 15 exportable products with inclusion of two new items that will receive cash subsidy in the current fiscal year. The exporters will receive cash subsidy on the products against net repatriation of the FOB (free on board) prices from July 1, 2009 to June 30, 2010. Bangladesh Bank (BB) on September 07, 2009 issued a circular in this connection and asked the commercial banks to follow the provisions for providing cash subsidy on the exportable products. The government has included two products - plastic pet bottle flakes and finished leather - in the list, which will enjoy cash subsidies at 10% and 7.5% respectively from this fiscal. According to the circular, the government will provide 20% cash incentive for exporting agro-products, including vegetables and fruits, while it is 17.5% for leather goods. BB asks banks to disburse 70% of cash subsidy against exports before auditing Bangladesh Bank (BB) has asked the commercial banks to disburse 70% of cash subsidy against exports before auditing

Page 3 of 12

Monthly Business Review September 2009 while the rest amount will be cleared after final inspections. Under the new instructions, the banks are empowered to release the large portion of cash subsidy immediately after receiving preliminary documents of exports. BB issued a circular in this connection on September 08, 2009 asking the commercial banks to follow the new instructions relating to disbursement of cash subsidy to exporters. The banks have been instructed to preserve necessary documents against disbursement of cash subsidy for BB's surprise visit. BB asks banks to participate in DIBOR Bangladesh Bank (BB) has asked the commercial banks to participate in the Dhaka Inter-bank Offered Rate (DIBOR) for setting the country's benchmark interest rate for the financial market. The advice was made during a bankers' meeting held at the central bank on September 27, 2009 with BB Governor Atiur Rahman in the chair. SEC allowed to issue 50 merchant bank license The government has given the Securities and Exchange Commission (SEC) permission to issue licences for a maximum of 50 merchant banks to cater for stock market investors. The ceiling was earlier 35 and 31 merchant banks were so far registered, but only 10 of them were actively operating as full-fledged investment banks. The finance ministry on August 31, 2009 issued a circular allowing SEC to raise the number to 50. DSE won't allow non-government PLCs for direct listing Dhaka Stock Exchange (DSE) will not allow any non-government public limited company (PLC) to go under the direct listing regulations. If the companies want to go public, they have to choose other available price discovery methods like book building and IPO. The decision will be sent to the Securities and Exchange Commission (SEC) for approval. 15% VAT on rented space, machinery imposed The government has imposed a 15% value added tax on commercially rented space, establishment and machinery to boost revenue. The National Board of Revenue (NBR) issued the order earlier this month, making it effective from the first day of the current fiscal year. The tax would be deducted from the tolls, fees, rent, charges and royalty that a tenant pays on commercially rented space, machinery or establishment. The order will not be applicable for residential tenants or finally transferred or sold space, establishment or machinery. VAT on power production waived to boost investment The government has waived 15% value added tax (VAT) on power production to boost investment in the key sector in an effort to end electricity crunch in the country. The authorities also eased tax burden on power distributors by removing 2.25% VAT on entities such as Power Development Board and Rural Electrification Board who buy electricity from state-owned and private producers and supply to the retail consumers. The National Board of Revenue (NBR) recently issued the order, making it effective from the first day of the current fiscal year. New rates of land value, fees, tax effective from September 1 In one of some major moves made by the new government, land prices have been jacked up three to four times in metropolitan areas of the country while land tax, and registration and other fees lowered for three years. The new rates of land value, fees and tax will be effective from September 01, 2009. Law Minister Shafique Ahmed declared the government decision at a press briefing at his office on August 31, 2009. As per the re-fixed rates, in Dhaka and Chittagong cities land price has been increased four times and in Rajshahi, Khulna, Sylhet and Barisal cities three times.

Land prices in the municipalities at district headquarters have been raised 2.5 times. Besides, buyers will have to pay three times higher for buying lands in municipalities having business importance, namely, Bogra, Narayanganj, Gazipur, Tongi and Savar. However, stamp and registration fees, local-government tax, and the tax on income at source have been lowered to 8% of the land price from the present rate of 14.5% in Dhaka, Chittagong, Rajshahi, Khulna, Sylhet and Barisal cities and municipalities of district headquarters. Land price has not been raised in upazilas, but stamp, registration fee, local-government tax have been re-fixed at 6% of the land price against the present 9.5%. Cabinet body okays new import-export policy The cabinet committee on Economic Affairs at a meeting held on September 27, 2009, with Finance Minister AMA Muhith in the chair, approved a new three-year import and export policy. The policy allowed imports of raw materials and capital machinery for the garment industry without opening letter of credits (L/C). To keep commodity prices stable, essentials and raw materials of industries with 100% FDI are also allowed without L/C opening. In the case of importing powdered milk, a certificate that ensures that the item is melamine-free should be attached to the import documents. Additionally, the private sector will be allowed to import telecommunication equipment, fulfilling some conditions. In the export policy, the number of thrust sectors -- agro-products and agro-processing commodities, light engineering goods, shoes and leather products, pharmaceutical products, software and ICT products and home textiles -- has been increased from six to seven, adding the sea-going ship building industry. The number of special development sectors has been increased to eleven from nine, adding ceramic, melamine and plastic goods. The previous export policy included cash incentives for the thrust and special development sectors. But the new export policy will also include cash incentives for the emerging sectors.

INTERNATIONAL Global recession ending: OECD The global recession is coming to an end faster than thought just a few months ago and may already be over, according to forecasts published by the Organisation for Economic Cooperation and Development (OECD) on September 03, 2009. The OECD forecasts show a third-quarter return to expansion of economic output, as measured by gross domestic product, in the United States and the 16-country euro zone, led by its two largest economies, Germany and France. The forecasts showed an annualised expansion of 1.6% in the United States in the third quarter, 0.3% in the euro zone and 1.1% in Japan, and were generally more optimistic than the last update in June. While it predicted continued third-quarter contractions in Britain and Italy, and a rise followed by a fourth-quarter dip for Japan, the OECD said the broad picture for the G7 group of industrialised powers was better. The OECD is still predicting GDP contractions for 2009 as a whole across the G7 group, primarily because of a particularly bad first half, despite the improvement now in the pipeline. But it sees annualised GDP rises of 1.2 and 1.4 per cent in the third and fourth quarters for the G7 as a whole, also signalling an exit from recession at that level. Global investment to pick up slowly Global investors are expected to scale back their activities almost 30% overall in 2009, but a recovery should begin ‘slowly’ in 2010, the UN’s trade development mission said on September 17, 2009. ‘Global FDI (foreign direct investment) prospects are set to remain gloomy in 2009, with inflows expected to fall below USD 1.2 TN’,

Page 4 of 12

Monthly Business Review September 2009 the UN Conference on Trade and Development (UNCTAD) said in a report. ‘However, recovery of these flows is expected to begin slowly in 2010 to reach up to USD 1.4 TN, and will gain momentum in 2011 when the level could approach an estimated USD 1.8 TN — almost the same as in 2008.’ While the fall in investment in developed countries was compensated for by growth in Africa, Asia, Latin America and the Caribbean, southeast Europe and ex-Soviet states in 2008, all regions are expected to post declines this year. ‘The United States, along with China, India, Brazil and the Russian Federation are likely to lead the future FDI recovery,’ according to UNCTAD. WEF ranks US among most economically unstable nations The United States fared badly in a new assessment of world economies, with the financial crisis accentuating its weakness as one of the most economically unstable nations, according to the World Economic Forum. In contrast with its overall ranking second only to Switzerland in the WEF's 2009 Global Competitiveness Report, the United States now placed 93rd among the 133 countries in terms of macroeconomic stability.

MARKET ROUNDUP WEEKLY CURRENCY ROUNDUP (September 27-October 01, 2009) Global Markets, Standard Chartered Bank

Money Market Money market was active on September 30, 2009. The market was liquid; and the majority of deals traded around 2%. Call money rates eased off on September 30, 2009, as the liquidity pressure was reduced due to maturing bills. Foreign Exchange Market Local: Local inter-bank FX market was actively trading on September 30, 2009. There was ample liquidity in the market and the USD/BDT rate traded in a similar range to the previous working day. International: The dollar fell against major currencies on September 30, 2009, with month- and quarter-end buying lifting sterling and the yen, and surprisingly strong Australian retail sales figures pushing the Aussie sharply higher. The euro held firm ahead of the European Central Bank's one-year cash tender results. The biggest gainer against the dollar was the Australian dollar, which rose 1% on the day to a 13-month peak. EXCHANGE AND FORWARD RATES: (As on September 30, 2009) Major Currency Exchange Rates Currency

BC Sell BDT

TT Buy BDT

USD EUR GBP AUD JPY CHF SEK CAD HKD SGD AED SAR DKK KWD

69.42 103.42 113.05 62.42 0.84 69.06 10.54 65.39 8.98 50.28 19.06 18.66 14.26 238.82

68.42 98.13 107.62 58.62 0.74 64.02 9.27 62.60 8.81 48.19 18.48 18.10 13.44 235.05

Exchange Rate of Some Currencies Currency

Currency Per USD

BDT per Currency

INR PKR LKR THB MYR

47.83 83.18 114.82 33.56 3.48

1.44 0.83 0.60 2.05 19.80

TREASURY BILL/BOND AUCTION INFORMATION Auction Date

Tenure & Name of the Securities

Sale Value (in BDT mn)

Weighted Average Yield %

29-Sep-2009

91 days T. Bill

2,982.90

2.29

29-Sep-2009

182 days T. Bill

1.965.60

3.49

23-Sep-2009

364 days T. Bill

35.80

4.50

16-Sep-2009

5 years T. Bond

02-Sep-2009

10 years T. Bond

4,518.40

09-Sep-2009

15 years T. Bond

360.000

8.80

26-Aug-2009

20 years T. Bond

1,250.000

8.59

Buy 68.49 68.56 68.66 68.94

8.49

Source: Bangladesh Bank Website

INTERNATIONAL COMMODITY PRICES Commodity

Unit

Price on Sep 27, Price on Aug 30, USD/unit USD/unit

Change +/(-)

Platinum Gold

Ounce Ounce

1,330

1,243

7.00%

992

956

3.77%

Palladium

Ounce

299

290

3.01%

Silver

Ounce

16.20

14.54

11.42%

Nickel

Tonne

16,876

19,525

-13.57%

Tin

Tonne

14,400

14,175

1.59%

Lead Aluminiu

Tonne

2,198

2,130

3.19%

Tonne

1,832

1,925

-4.83%

Zinc

Tonne

1,880

1,887

-0.37%

Copper

Tonne

5,928

6,518

-9.05%

Crude Oil

Barrel

66.62

72.70

-8.36%

Sugar Maize

Pound Bushel

0.2178

0.2291

-4.93%

Coffee Cocoa

Tonne Tonne

3.38 1,404

3.31 1,415

2.11% -0.78%

3,079

2,811

9.53%

Wheat

Bushel

4.72

5.05

-6.53%

Source: The Financial Express

IDLC NEWS IDLC opens its second SME booth at Imamganj IDLC Finance Limited on September 09, 2009 inaugurated its 2nd SME booth at Imamganj in Dhaka, one of the major wholesale trading hubs of the country. The booth is located at 75 Mitford nd Road (2 Floor), Imamganj, Dhaka-1100. This SME booth will cater to the financing needs of many small and medium entrepreneurs of Imamganj by providing business solutions through financial products like business loan, machinery loan, lease finance and women entrepreneur loan etc.

USD forward rate against BDT

1 Month 2 Months 3 Months 6 Months

No Bid Accepted

Sell 69.66 70.14 70.46 71.38

Source: Standard Chartered Bank

Page 5 of 12

Monthly Business Review September 2009 IDLC CEO and managing director (current charge) Yongbok Jo inaugurated the SME booth. IDLC Deputy Managing Director Arif Khan welcomed the distinguished guests at the inauguration ceremony which was attended by IDLC Chief Financial Officer HM Ziaul Hoque Khan, Head of SME Division Zahid Ibne Hai and other senior officials. IDLC launches its newly designed website www.idlc.com IDLC Finance Limited on September 06, 2009 launched a newly designed website www.idlc.com. Yongbok Jo, CEO and Managing Director (current charge), Arif Khan, Deputy Managing Director, HM Ziaul Hoque Khan, Chief Financial Officer, Mir Tariquzzaman, Deputy General Manager, Head of i.Cons Limited and other senior officials were present while launching the new website. IDLC arranges annual iftar party for its employees IDLC Finance Limited arranged an iftar party for its employees at Emmanuelle’s Banquet Hall, Gulshan 1, Dhaka on September 10, 2009. IDLC Chairman Anwarul Huq, CEO and MD (Current Charge) Yongbok Jo, and Deputy Managing Director Arif Khan, among other officials of IDLC, were present in the function. Arif Khan takes over the current charge of IDLC CEO & MD As per the decision of the Board, Arif Khan, Deputy Managing Director of the Company, has taken over the current charge of the CEO & Managing Director of IDLC Finance Limited from October 01, 2009. He will remain in the current charge of the CEO & Managing Director of IDLC until the appointment of new CEO & Managing Director.

NEWS IN BRIEF ECONOMY Asian Development Bank (ADB) forecast Bangladesh's economic growth at 5.2% for the current fiscal year (200910), down from nearly 5.9% of the previous year. The government has significantly raised the target of borrowing from savings instruments to BDT 32.76 bn for the current fiscal year to finance its big budget deficit. The raised borrowing target is up by nearly BDT 4.90 bn or 17.59% from that of the last fiscal. The government has fixed the target of paying interest against the borrowings from savings tools at BDT 71.53 bn, up from the last fiscal's target of BDT 60.86 bn. Overseas employment for female workers increased by 22% in the first seven months of this year although overall migration has fallen due to the global recession. According to the Bureau of Manpower Employment and Training (BMET), 13,293 women went abroad with jobs till July, 2009, up from 10,890 during the same period last year. Some 0.33 mn Bangladeshi workers migrated to more than 100 countries across the globe between January and August this year, down from 0.53 mn during the same period of 2008. The country's longest serving finance minister M Saifur Rahman who steered the Bangladesh economy toward a free market path and presided over series of economic reforms died on September 05, 2009 in a car crash. IDLC Finance Limited has expressed its profound condolences on the sad demise of M Saifur Rahman. BUSINESS-GENERAL Dhaka Stock Exchange (DSE) on September 06, 2009 introduced the over-the-counter (OTC) market, a separate trading floor for trading of shares of companies that will be

removed from the main board. The OTC market was introduced at the DSE in accordance with the SEC rules in this connection. Securities and Exchange Commission’s chairman Ziaul Haque Khondker inaugurated the OTC market at a ceremony at the bourse’s building in Dhaka. Industrial credit disbursement declined slightly in the last fiscal as against the previous fiscal reflecting an investment slowdown in the backdrop of the ongoing global financial meltdown. The disbursement of term loan fell by 0.88% to BDT 199.72 bn in FY09 from BDT 201.50 bn of the previous fiscal, according to the central bank provisional statistics. Mutual fund growth in turnover trebled in just three months. Mutual funds amounted to less than 3% of the total turnover on the Dhaka Stock Exchange (DSE), the premier bourse, at the end of June this year, while the figure rose to more than 8% by the end of August 2009. BUSINESS - FIRM SPECIFIC Premier Bank along with Prime Bank, Dhaka Bank, EXIM Bank and First Security Islami Bank led a Hire Purchase Investment Syndication for BDT 478.70 mn with Protik Ceramic Ltd. The signing ceremony was held in Dhaka on September 08, 2009. Out of total Syndication amount BDT 393.7 mn will be used as investment finance and BDT 85 mn will be used as working Capital. Eighteen banks have agreed to arrange BDT 1.8 bn syndicated loan for Kazi Grand Parents Limited (KGPL), a concern of Kazi Farms Group, to raise its capital for expansion of product lines. The Hong Kong and Shanghai Banking Corporation (HSBC) is the lead arranger of the loan, the biggest-ever poultry sector financing. The Hongkong and Shanghai Banking Corporation Limited in Bangladesh has signed a memorandum of understanding with Lanka Bangla Securities LTD, one of the premium brokerage houses of the country. Under the MoU, the nonresident Bangladeshis who availed HSBC SMART CAPITAL and acquired shares through IPO can sell their shares through Lanka Bangla Securities LTD. The cabinet on August 31, 2009 approved the transformation of Small Enterprise Development Project (SEDP) into Agrani SME Financing Company Ltd, which becomes a subsidiary of Agrani Bank Limited. Mercantile Bank Limited has signed an agreement with AAA Financial Advisor and Consultant Limited. Under the agreement, the AAA Financial Advisor and Consultant will work as Issue Manager for issuance of rights shares and Bonds of the bank. Marico, a leading Indian group in consumer products and services in the global beauty and wellness space, got listed with the Chittagong Stock Exchange (CSE) on September 09, 2009. The company's total paid up capital is BDT 315 mn. Grameenphone Limited signed an agreement with Central Depository Bangladesh Limited (CDBL) at the Grameenphone Corporate Headquarters in Dhaka on September 10, 2009. The agreement was signed as part of the company's on-going process for listing in both the stock exchanges. Landmarx Construction and Development Limited, a real estate company founded by non-resident Bangladeshis living in Canada, has recently announced the launch of its business in Bangladesh after two years of successful business in Canada. Managing director of the company Mohammed Alimullah Khokon made the announcement at a press

Page 6 of 12

Monthly Business Review September 2009 conference held at Lake Shore Restaurant in Dhaka on September 19, 2009. The Western Union Company, a worldwide leader in money transfer services, on September 15, 2009 announced the signup of two new Principal Agents - Dhaka Bank & Mercantile Bank to offer the Western Union® Money TransferSM service in Bangladesh. TRAINING / SEMINARS / WORKSHOPS Citibank, NA Bangladesh has recently organized a workshop on SWIFT (Society for Worldwide Interbank Financial Telecommunication) for Branch In-Charge, Foreign Exchange In-Charge and Officials involved in Letter of Credit Issuance & Payments of Private Commercial Banks for the southern region of the country. The workshop was held in Khulna and attended by participants from Khulna, Barisal, Jessore, Kushtia, Jhenaidah and Satkhira. Mutual Trust Bank has recently arranged workshop titled ‘Workshop on encouraging women entrepreneurs — access to finance, inclination to borrow and compliance of credit’ in association with SME Foundation held at the SME Foundation’s Conference Room in Dhaka. MTB Managing Director and Chief Executive Officer Anis A Khan was present as chief guest while Deputy managing director Md Ahsan-uz Zaman, and SME and Consumer Banking Division senior assistant vice-president Mohammad Iqbal attended the function as special guests. SME Foundation Managing Director and Chief Executive Officer Dr Momtaz Uddin Ahammed was present as chairperson of the programme. The programme was attended by a large number of women entrepreneurs, who were provided with information on bank facilities available in the country. REWARDS AND RECOGNITIONS Standard Chartered Bank has been named the ‘Best Foreign Commercial Bank in Bangladesh 2009’ by FinanceAsia, a leading financial publication in the region. The bank received the prestigious award as part of FinanceAsia 2009 Country Awards for Achievement. This year the bank also received the same award for India. Standard Chartered Bank Bangladesh Chief Executive Officer Osman Morad received the award at a ceremony in Hong Kong recently. Raihan M Chowdhury, Special Correspondent of The Financial Express has won Tokyo-based Developing Asia Journalism Awards (DAJA) 2009. According to an invitation sent by the director of Asian Development Bank Institute (ADBI), Raihan has been selected as a finalist for the prestigious annual competition among the ADB member countries. The write-up written by the FE journalist titled 'facing the natural disasters' published on July 15, 2009 brought the international award for Raihan. The announcement of the final winners will be made at the awards dinner and ceremony to be held in Tokyo October 23, 2009. CSR ACTIVITIES IN THE MONTH AB Bank has recently joined hand with Mosabbir Cancer Care Centre. Under corporate social responsibility initiative, the bank has donated BDT 0.5 mn to the clinic. Bank Asia has donated contraceptive device worth about BDT 1.5 mn to Marie Stopes in an effort to enhance birth control of poor in the society.

As a part of corporate social responsibility (CSR), the board of directors of Pubali Bank Limited has recently donated BDT 0.3 mn to Asiatic Society of Bangladesh (ASB) to compile a 'Children's Banglapedia' in three volumes. Heidelberg Cement Bangladesh Limited has donated money to Community Development Library (CDL), a non-government development organization, to run its school Chetona Bikash Kendra (CBK). The company made the donation as part of its Corporate Social Responsibility (CSR) activities. Singer Bangladesh Limited, as part of its corporate social responsibility, has sponsored an unmanned railway level crossing in Tangail. The sponsorship for appointment of three guards at Bohontoli level crossing under Mirzapur upazila will help save lives from possible accident. Air Alliance Ltd, authorized service contractor for UPS in Bangladesh has won 2 outstanding awards out of 3 on "Service Quality Excellence (SQE)"' and on "Volume & Growth" for the year 2008 at a conference organized at the UPS House in Singapore, recently. Leading drug manufacturer Beximco Pharmaceuticals Ltd. (BPL) on September 13, 2009 donated 5000 pieces of Oseflu (Oseltamivir) capsule to ICDDR,B as a gesture of BPL's support for the swine flu affected community of the country. This donation was a part of BPL's ongoing CSR activities as a response to this major public health problem. Beximco Pharma has also started a public awareness Programme against swine flu which comprises public awareness posters, inserts, patient information guide, sticker and advertisement in the newspaper. AKTEL, a leading cell phone operator in the country, has donated floor mats and ceiling fans to a number of mosques located in Chittagong, Netrokona, Muktagachha, Rajshahi and Dhaka as part of its corporate social responsibility (CSR). AKTEL arranged an Iftar Mehfil for the orphans and underprivileged children of Dhaka at AKTEL Executive Club in the city recently. AKTEL Managing Director Michael Kuehner hosted the iftar mehfil. INTERNATIONAL The International Monetary Fund foresees a stronger than anticipated recovery from the economic crisis, with global growth approaching 3% in 2010. The IMF had estimated in July a global contraction of 1.4% in 2009, followed by sluggish growth of 2.5% in 2010. Asian Development Outlook (ADO) 2009 report, released on September 22, 2009, has forecast economic expansion in developing Asia to come in at 3.9%, up from the 3.4% predicted in March. In 2010, the growth projection is likewise upgraded to 6.4% from 6%. India's inflation gained pace, fuelled by a massive leap in food prices on the back of the worst drought in decades. Annual inflation rose by a faster-than-expected 0.37% for the week ended September 12, 2009, according to the Wholesale Price Index (WPI), India's most-watched cost-ofliving benchmark. Economists had forecast about a 0.30% increase in the inflation rate. US consumer prices rose 0.4% in August 2009, driven by higher gasoline costs. The Labour Department's consumer price index (CPI) showed a year-over-year decline of 1.5%. Consumer prices in the 16 euro countries fell by 0.2% in August over 12 months -- markedly smaller than the record 0.7% fall registered in July. August preliminary figures from the official Eurostat EU data agency marked the third month of the

Page 7 of 12

Monthly Business Review September 2009 first-ever drop in prices since the euro bloc was formed in 1999, and a remarkable U-turn for Europe's economy. Japan's core consumer prices dropped 2.4% in August year-on-year, the fourth successive month of record falls. India's economy grew by 6.1% in the three months to June, picking up pace from the previous quarter and signalling the country's emergence from the global downturn. The expansion, spurred by government stimulus packages and aggressive monetary easing that has made loans cheaper, was up from 5.8% growth in the March quarter. Sri Lanka's economy grew 1.8% year on year in the first half of 2009, dragged down by weak demand for clothing and tea. The figure contrasted with 6.6% expansion in the first half of 2008. The war-battered economy slowed to 2.1% in the second quarter, from 7% in the same period a year earlier, as the services sector including banks, shipping and telecom were slow to recover. The European Union economy will shrink by 4% in 2009 but will climb out of recession in the third quarter, according to the European Commission. The deep recession in Britain is easing, boosting hopes that the nation will soon join other major economies in returning to growth before the end of 2009. British output contracted 0.6% in the second quarter compared with activity in the first three months of 2009, better than the previous estimate of minus 0.7%, according to the Office for National Statistics (ONS). Gross domestic product (GDP) shrank 5.5% between April and June compared with GDP in the second quarter of 2008.

International Conference on "Ideas and Innovations for the Development of Bangladesh: the Next Decade" Bangladesh Trade Fair

Single

Country

Japan Trade Fair-2009 First Bangladesh Office Fair2009 2nd Bangladesh Buildtech and Housing Expo 2009 Bangladesh Single Country Trade Fair Bangladesh Single Country Trade Fair SME Financing Fair international solar and renewable energy trade shows Expo Bangladesh 2009 5th Knitexpo-09

Period 05-07 BATEXPO-09 November 2009 Bangladesh Engineering and 07-10 January Industrial Tradeshow 2010 2010 07-10 January Showcase Bangladesh 2010 2010 6th International Plastic Fair- 25-28 January 2010 2010 Bangladesh Architecture, Construction and Engineering January 2010 Expo - BACE Expo 2010 International Power and Electric Engineering Technology January 2010 Tradeshow - ElPower 2010 International Fabrics and January 2010 Accessories Sourcing Fair 02-05 March FOODEX Japan-2010 2010

Location Dhaka, Bangladesh Dhaka, Bangladesh Kuala Lumpur, Malaysia Dhaka, Bangladesh Dhaka, Bangladesh Dhaka, Bangladesh Dhaka, Bangladesh Chiba, Japan

KEY DIPLOMATIC / INTERNATIONAL ORGANIZATIONS APPOINTMENTS Name

Position

Naveed Mahbub

Country Head

Organization Nokia Siemens Networks Bangladesh

MANAGEMENT CHANGE - BANKS & FIS

UPCOMING EVENTS Event Bangladesh Travel and Tourism Fair (BTTF) 2009 Made in Bangladesh Trade Show

Event

Period 01-03 October 2009 02-06 October 2009 09-10 October 2009 09-11 October 2009 15-17 October 2009 21-23 October 2009 21-23 October 2009 22-24 October 2009 23-25 October 2009 29-31 October 2009 29 October 01 November 2009 01-03 November 2009 02-04 November 2009

Location Dhaka, Bangladesh New York, USA Kennedy School of Government of Harvard University, USA Kuala Lumpur, Malaysia Dhaka, Bangladesh Dhaka, Bangladesh Dhaka, Bangladesh Copenhagen, Denmark Kuala Lumpur, Malaysia Dhaka, Bangladesh Dhaka, Bangladesh London Dhaka, Bangladesh

Name

Position

Babel Miah

Chairman

Professor Abul Barakat Professor Khonodker Bazlul Hoq Kazi Baharul Islam Rear Admiral (Retd) A. Taher Professor Dr. M. Khairul Hossain Waqar A Choudhury MA Majid

Organization Progressive Life Insurance Co. Ltd

Chairman

Janata Bank Ltd

Chairman

Agrani Bank Ltd

Chairman

Sonali Bank Ltd

Chairman

Ansar-VDP Unnayan Bank

Chairman MD and CEO MD and CEO

Investment Corporation of Bangladesh Green Delta Financial Services Ltd. (GDFSL) Meghna Life Insurance Company Ltd

MANAGEMENT CHANGE ORGANIZATIONS Name Sheikh Abdul Hye Bachchu

Position Chairman

ATM Rafique

Chairman

Salahuddin Ahmad

CEO

-

OTHER

Organization Bangladesh Small Industries and Commerce Bank Ltd Padma Islami Life Insurance Limited (PILIL) Karnaphuli Fertilizer Company Ltd (KAFCO)

Note: The information in this and the preceding pages has been compiled from press reports and miscellaneous publicly available sources unless otherwise specified. The authenticity and correctness of the information has not been verified.

Page 8 of 12

Monthly Business Review September 2009

CAPITAL MARKET REVIEW DSE* TOP 15 APPRECIATING ISSUES IN THE MONTH

SECTOR

MONTHLY APPRECIATION

PHARM. & CHEM. PHARM. & CHEM. TEXTILE TEXTILE CERAMIC TEXTILE FOOD & ALLIED TEXTILE INVESTMENT TEXTILE TEXTILE PHARM. & CHEM. IT-SECTOR INSURANCE CERAMIC

3,432.2% 67.9% 58.8% 52.8% 46.7% 38.4% 38.3% 36.3% 35.9% 34.8% 34.6% 33.3% 32.6% 29.2% 27.2%

DSE CODE

MARICO KOHINOOR METROSPIN MITHUNKNIT STANCERAM APEXWEAV GEMINISEA SAIHAMTEX 1STBSRS RAHIMTEXT SONARGAON IMAMBUTTON DAFODILCOM PURABIGEN MONNOCERA

STD. LAST LAST CASH Av. MARKET DEV. OF MONTHLY STOCK TRADING TRADING PRICES/ CAPITALIZATION DIV. IN Av. P/E DIV. DAY DAY P/E BDT BDT mn Av. RATIO PRICE RATIO PRICE 45.3 48.8 414.2 7.9% 12,097.89 41.9 55.1 3,497.8 15.0% 1,327.70 30.0 25.8 17.7 57.6 30.1% 578.08 1.2 15% 29.7 39.7 587.5 15.6% 219.48 10.0 (31.3) (40.2) 477.3 12.7% 217.85 5.0 23.8 29.0 324.0 11.7% 1,033.47 10.0 11% 34.9 39.8 1,695.3 9.3% 163.50 23.0 26.2 31.5 397.0 9.6% 412.36 10.0 107.7 136.1 1,782.8 14.4% 705.41 10.5 30.9 34.7 1,749.8 12.1% 283.74 17.5 (47.5) (56.7) 422.8 13.1% 351.34 5.0 46.6 55.6 421.0 10.0% 246.93 8.0 95.5 118.2 52.5 13.3% 864.92 0.4 6% 109.4 131.9 1,039.3 14.2% 569.12 10% 179.3 200.2 824.5 7.9% 996.76 10.0 -

*The above is based on all DSE A, N-Category Stocks and selected B & Z category stocks. Earnings and dividend figures are the latest as available (audited) from DSE archives in the period of the review. “-“indicates “not available” or “zero”. For further information, please write to [email protected]

DSE* TOP 15 DECLINING ISSUES IN THE MONTH DSE CODE

MONTHLY DECLINE

SECTOR

SAMORITA SERVICES & REAL ESTATE PRIMELIFE INSURANCE PRAGATIINS INSURANCE MEGHNACEM CEMENT ABBANK BANK PROGRESLIF INSURANCE POPULARLIF INSURANCE MEGHNALIFE INSURANCE CENTRALINS INSURANCE PRAGATILIF INSURANCE MONNOJTX ENGINEERING BDFINANCE BANK EASTLAND INSURANCE FAREASTLIF INSURANCE PRIMEFIN BANK

-13.5% -6.2% -6.1% -5.5% -5.3% -5.3% -4.9% -4.4% -4.3% -4.0% -3.7% -3.6% -2.9% -2.9% -2.6%

STD. DEV. LAST CASH Av. MARKET LAST MONTHLY STOCK OF TRADING CAPITALIZATION DIV. IN TRADING Av. P/E DIV. PRICES/ DAY P/E BDT BDT mn DAY PRICE RATIO Av. PRICE RATIO 34.6 35.0 800.0 4.6% 522.30 10.0 na na 1,768.0 1.7% 2,150.59 30% 32.3 31.7 1,291.0 3.4% 5,098.55 20.0 15% 76.5 75.1 772.0 3.1% 1,769.48 15.0 9.5 9.3 835.3 1.5% 21,883.50 15.0 15% na na 1,573.3 2.6% 1,210.96 10% na na 2,526.5 1.6% 2,346.68 12.0 26% na na 1,715.0 2.6% 2,111.27 5.0 30% 28.2 27.9 542.3 3.3% 786.71 10% na na 2,344.3 1.9% 1,783.45 10.0 61.7 not traded not traded 2.2% 198.10 10.0 35.2 34.5 605.3 2.6% 2,263.50 10% 24.9 24.6 810.3 3.2% 1,738.99 30% na na 2,385.5 2.1% 4,688.07 5.0 40% 39.8 38.8 1,721.3 1.9% 11,371.82 40%

*The above is based on all DSE A, N-Category Stocks and selected B & Z category stocks. Earnings and dividend figures are the latest as available (audited) from DSE archives in the period of the review. “-“indicates “not available” or “zero”. For further information, please write to [email protected]

DSE CAPITALIZATION AND GAINING, LOSING & UNCHANGED ISSUES Movement in DSE Market Capitalization

Number of Gaining, Losing and Unchanged Issues in DSE

150 BDT in billion

No. of Shares

200

100 50 0 1Sep

3Sep

5Sep

7Sep

9Sep

11Sep

13Sep

Gained

15Sep

17Sep

19Sep

Lost

21Sep

23Sep

25Sep

27Sep

29Sep

Unchanged

Page 9 of 12

1,060 1,050 1,040 1,030 1,020 1,010 1,000 990 980 970 960 1Sep

8Sep

15Sep

22Sep

29Sep

Monthly Business Review September 2009 DSE* INDUSTRY-WISE STATISTICS Sector/Industry Banks Cement Ceramic Corporate Bond Engineering Food & Allied Fuel & Power Insurance Investment IT-Sector Jute Miscellaneous Pharm. & Chem. Paper & Printing Services & Real Estate Tannery Textile TOTAL

Capitalization BDT mn (Avg.) 359,506 40,519 7,800 2,714 47,993 22,156 168,234 58,605 59,964 3,552 146 46,890 111,839 4 33,732 9,483 28,535 1,001,672

% Sector Caps 35.89% 4.05% 0.78% 0.27% 4.79% 2.21% 16.80% 5.85% 5.99% 0.35% 0.01% 4.68% 11.17% 0.00% 3.37% 0.95% 2.85% 100.0%

Simple Av. Price Change in Period 1.63% 2.05% 24.50% 0.49% 6.62% 13.46% 3.98% 1.54% 14.57% 15.54% 19.34% 11.48% 203.18% 0.00% -1.44% 10.82% 25.67% 24.81%

Number 48 4 3 1 15 9 9 35 19 5 1 9 18 1 7 3 14 201

Weighted Av. P/E Ratio 15.06 31.78 (211.57) 56.02 28.61 26.94 73.96 43.19 66.17 48.65 17.35 24.06 38.42 11.71 31.75

Simple Av. P/E Ratio 18.16 22.34 61.53 39.89 33.65 51.65 24.25 36.40 76.84 48.65 58.90 38.90 36.78 11.83 25.74

*The above includes all DSE A, G, N-Category Stocks and selected B & Z category stocks. Earnings and dividend figures are the latest as available (audited) from DSE archives in the period of the review. For further information, please write to [email protected]

MOVEMENT OF DSE AND CSE INDICES

Change in Index

2.0% 5.83

1.5% 1.0%

5.27

5.0

5.16

4.97

4.35 4.46

4.46

0.5%

4.39

5.43

5.81

6.0

4.88

4.83

5.0

3.36

0.0%

4.0 3.0

-0.5% -1.0%

2.0

-1.5%

1.0 0.0

-2.0% 1Sep

3Sep

5Sep

7Sep

DSE txn value BDT

9Sep

11Sep

DSI

13Sep

15Sep

DGEN

Sponsors’ Equity (BDT mn)

Grameenphone 12,151.74797 Limited

IPO Amount (BDT mn) 694.394

Golden Son Limited

275.3021

100.00

Provati Insurance Company Ltd

60.00

90.00

R.N. Spinning Mills Limited

673.0156

300.00

Dhaka Insurance Ltd

60.00

90.00

Source: DSE Website

17Sep

19Sep

DSE-20

FORTHCOMING IPO APPROVED BY SEC Name of the issue

Daily Trade Volume in BDT bn

7.11 7.35 8.0 7.0

2.5%

Private placement

Date for subscription

65,685,800 ordinary shares 10,000,000 ordinary shares 900,000 ordinary shares 3,000,000 ordinary shares 900,000 ordinary shares

04-08 October 2009 08-12 November 2009 15-19 November 2009 22-26 November 2009 06-10 December 2009

21Sep

23Sep

CASPI

25Sep CSE-30

27Sep

29Sep CSCX

INTERNATIONAL MARKET MOVEMENTS Markets

Index Sep 30

% Change on st

One Week United States (DJIA) United States (S&P 500) United States (NAScomp) Japan (Nikkei 225) China (SSEA) Britain (FTSE 100) Canada (S&P TSX) Germany (DAX) Hong Kong (Hang Seng) India (BSE) Pakistan (KSE) Singapore (STI) Source: The Economist

Page 10 of 12

9,712.3 1,057.1 2,122.4 10,133.2 2,916.7 5,133.9 11,395.0 5,675.2 20,955.3 17,126.8 9,349.7 2,672.6

-0.4 -0.4 -0.4 -2.3 -2.2 -0.1 -1.1 -0.5 -3.0 +2.4 -0.9 -0.5

Dec 31 2008 In local In currency USD +10.7 +10.7 +17.0 +17.0 +34.6 +34.6 +14.4 +15.8 +52.6 +52.5 +15.8 +28.8 +26.8 +45.8 +18.0 +24.1 +45.6 +45.7 +77.5 +79.8 +59.4 +51.7 +51.7 +55.1

Monthly Business Review September 2009 YEARLY PROFIT & DIVIDEND DECLARATIONS IN SEPTEMBER DSE Code DBH EXCELSHOE RAHIMAFOOD

Latest Financial Year Profit EPS (BDT mn) (BDT) 233.89 64.00 2.00 6.07

0.67 3.03

Dividend Declaration Cash 17.00%

Stock 15.00%

DSE Code

Right -

NO DIVIDEND 5.00% -

RAHIMTEXT

Latest Financial Year Profit EPS (BDT mn) (BDT) 9.18

50.43

Dividend Declaration Cash

Stock

Right

17.50%

-

-

-

DIVIDEND DECLARATIONS IN SEPTEMBER DSE Code CONTININS

Dividend Declaration Cash Stock Right 10.00% -

Dividend Declaration Cash Stock Right 10.00% -

DSE Code GLOBALINS

DSE Code STANDARINS

Dividend Declaration Cash Stock Right 5.00% -

MUTUAL FUNDS VALUE AT THE END OF AUGUST DSE Code

NAV BDT/Unit

Face Value BDT/Unit

DSE Code

NAV BDT/Unit

Face Value BDT/Unit

1STBSRS 1STPRIMFMF AIMS1STMF GRAMEEN1 GRAMEENS2 ICB1STNRB

890.51 12.74 3.32 35.36 13.04 268.88

100 10 1 10 10 100

ICB2NDNRB ICBAMCL1ST ICBISLAMIC First ICB Second ICB Third ICB

132.21 376.68 227.96 6,220.59 1,702.69 1,225.53

100 100 100 100 100 100

DSE Code

NAV BDT/Unit

Face Value BDT/Unit

Fourth ICB Fifth ICB Sixth ICB Seventh ICB Eighth ICB EBL1STMF

1,359.47 1,175.79 459.00 730.60 514.73 10.30

100 100 100 100 100 10

SELECTED DSE NEWS OF THE MONTH DSE CODE

BGIC

BXPHARMA

DSE NEWS

EXIMBANK

ICB

NEWS SEC has given consent to the company under the provisions of the Securities and Exchange Commission (Rights Issue) Rules, 2006, for issuance of 20,88,252 ordinary shares of BDT 100 each at an issue price of BDT 200 per share (including premium of BDT 100 each) amounting BDT 417.6504 mn only at a ratio of 1:1 i.e. one right share for each existing share. The approval has been accorded subject to the condition that the company shall comply with the requirements embodied in the aforesaid Rules and other relevant laws and regulatory requirements, and shall also adhere to the conditions imposed by SEC under section -2CC of the Securities and Exchange Ordinance, 1969. The EGM of the company will be held on October 15, 2009 at BEXIMCO Industrial Park, Sarabo, Kashimpur, Gazipur to transect the following businesses as special business: I. To approve issuance upto 41 mn Fully Convertible, 5% Dividend, Preference Shares of BDT 100 each subject to SEC's consent to the aforesaid preference share issue, on the following terms and conditions: 1. The Preference Shares shall be converted into Ordinary Shares in two stages. a. One-half (50%), i.e., BDT 50, of each preference share will be converted into ordinary shares on February 01, 2010 at 25% discount to the weighted average price of the Dhaka Stock Exchange during the three-months ending January 31, 2010. b. And the remaining One-half (50%), i.e., BDT 50, of each preference share will be converted into ordinary shares on May 02, 2010 at 25% discount to the weighted average price of the Dhaka Stock Exchange during the three-months ending April 30, 2010. 2. Once Preference Shares are converted into Ordinary Shares; and lockin period thereof expires, such ordinary shares shall be listed like other ordinary shares of the company in the stock exchanges and tradable thereat. 3. An interim dividend at 2.5% for each quarter will be paid on February 01, 2010 and May 02, 2010 against the preference shares. Record date for interim dividend on Preference Shares shall be January31, 2010 and April 29, 2010. 4. Shareholders on Record date on September 17, 2009 will have the prerogative to subscribe for 15.115 mn Preference Shares as above on a 10:1 basis, i.e., shareholders holding 10 existing Ordinary Shares will have the prerogative to subscribe for 1 Preference Share within October 25, 2009. 5. The unsubscribed Preference Shares referred to in paragraph 4 above; and remaining 25.885 mn Preference Shares will be privately placed. 6. Preference Shares will be issued on November 01, 2009 provided SEC's consent to the aforesaid Preference Share Issue is obtained prior to that date. 7. There will be a one-year lock-in on the converted Ordinary Shares from the date of issue of the Preference Shares. 8. The Preference Shares will not be listed and/or publicly placed. However, these will be transferable like any other shares. 9. The funds raised will be used for capital expenditures to finance ongoing BMRE projects and working capital of the company. 10. An Information Memoranda will be used to facilitate investment in the aforesaid Preference Share Issue. II) To approve increase in the Authorised Share Capital of the Company shall be increased to BDT 9.1 bn, consisting of 500 mn Ordinary Shares of BDT 10 each amounting to BDT 5 bn; and 41 mn Fully Convertible, 5% Dividend, Preference Shares of BDT 100 each amounting to BDT 4.1 bn in view of the aforesaid Preference Share Issue and to amend Clause-V of the Memorandum of Association and Articles of Association of the company for the said purpose. As per decision of the Board of Directors of DSE, trading of the shares of Marico Bangladesh Limited has been started at DSE with effect from September 16, 2009 under 'N' category. DSE Trading Code for Marico Bangladesh Limited is "MARICO" and DSE company code # 18481. The Share Division of the Bank has been shifted from Printers Building, 5 Rajuk Avenue, Dhaka-1000 to Head Office of the Bank at Gulshan. The new address is as under: Export Import Bank of Bangladesh Limited, Head Office, 'SYMPHONY', Plot No. SE (F)-9, Road No. 142, Gulshan Avenue, Dhaka-1212, PABX: 880-2-9889363, Fax: 880-2-9889358. The Corporation has informed that in pursuance of the Board of Directors of Investment Corporation of Bangladesh (ICB) and the approval of the Ministry of Finance, Finance Division, Government of the People's Republic of Bangladesh, the Authorized Capital of ICB has been raised from BDT 1 bn to BDT 5 bn with effect from September 27, 2009.

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Monthly Business Review September 2009 DSE CODE

GOLDENSON

IBBLPBOND

LANKABAFIN

NCCBANK

PRIMELIFE

PROGRESLIF

SALAMCRST

SALAMCRST

SEC NEWS SONARBAINS

SUMITPOWER

NEWS SEC has accorded consent to the company under section 2A, sub-sections (2)(a) and (2)(b), read with section 2B of the Securities and Exchange Ordinance, 1969 and the Securities and Exchange Commission (Public Issue) Rules, 2006, based on all the documents and information provided to SEC by the company, to the further issue of 10 mn ordinary shares of BDT 10 each at an issue price of BDT 20 each (including premium of BDT 10 per share) worth BDT 200 mn only through Repeat Public Offer and also approves the prospectus of Golden Son Limited concerning the issue. The Bank has decided to deposit the Profit of Mudaraba Perpetual Bond of IBBL (MPB) for the year 2008 to the MPBholders of respective Banks, who maintained Bank Account with second & Third generation Banks as per the bank account details disclosed in the CDBL data on record date (July 14, 2009) and the Profit of MPB will be directly distributed in the Dhaka Zilla Krira Sangstha, Jheelpar, Motijheel, Dhaka, on 04, 05 and 06 October, 2009 to the MPBholders who are maintaining their Bank Accounts with the state owned commercial banks and some specialized banks. The Board of Directors of LankaBangla Securities Limited (a 99.998% held subsidiary company of LankaBangla Finance Limited) in its 51st meeting held on September 29, 2009 has declared Interim Dividend in the form of Bonus Shares @ 63.40%, i.e. 634 shares for each 1,000 shares (dividend in amount total BDT 155.2032 mn). The Board of Directors also decided to convert the Company into a Public Limited Company from Private Limited Company. The Board of Directors in its 198th meeting held on September 14, 2009 has recommended as under for approval in the Bank's 6th EGM to be held on October 14, 2009 1. The contents of earlier announcement dated August 20, 2009 regarding proposed Rights Issue and Date, Time, Venue and Record Date for EGM of the Bank shall remain unchanged. 2. As regards to categorization of Bank's shares as announced earlier. The Board of Directors of the Bank has now recommended to supersede its previous recommendations made in the Emergency meeting held on August 20, 2009 and has made fresh recommendations for cancellation of categorization of Bank's shares and accordingly for amendments of the relevant Articles of the Bank's Articles of Association in conformity with the decision taken on the issue in SEC's meeting held with Bangladesh Association of Banks, Association of Bankers Bangladesh, Bangladesh Bank and Controller of Insurance on June 24, 2008 as communicated vide SEC's Circular Letter dated July 10, 2009. The Board of Directors has now recommended to make amendments in the relevant Articles of the Bank's Articles of Association subject to approval by the shareholders in the Bank's proposed Sixth EGM to be held on September 14, 2009 through special Resolutions and subsequently, subject to prior permission of Bangladesh Bank in this regard. The Board of Directors of the company has adopted the following decision unanimously that the Ordinary Shares of BDT 100 only each of the company be splitted to BDT 10 only each and market lot shall be of 50 shares subject to approval of the SEC, Chief Controller of Insurance and Shareholders in the EGM. Necessary amendments to the respective clauses in the Memorandum and Articles of Association of the company shall also be made. The Board of Directors of the company has approved the deal of purchase of 51% Equities i.e. 25,500 shares out of total 50,000 shares from the shareholders of M/s. Galaxy Capital Limited on a mutually agreed price BDT 1,210 per share. After successful testing and commissioning, S. Alam Refined Sugar Industries Limited, one of the corporate members of S. Alam Group, has on 14th September 2009 started commercial operation of its carbonation based sugar refining plant having a production capacity of 1200 Metric Ton per day and equipped with its own 6 MW power generation plant to meet its own electricity requirements as well as to sell the excess of its requirements to the Palli Biddut Samity. The company verbally informed that there is no stake of S. Alam Cold Rolled Steels Ltd. in the share capital of S. Alam Refined Sugar Industries Limited. After successful testing and commissioning, S. Alam Power Plant Limited, one of the corporate members of S. Alam Group has commenced its commercial operation from September 15, 2009 at its 6 MW power plant. It may however be clarified here that there is no stake of S. Alam Cold Rolled Steels Limited in the capital of S. Alam Power Plant Limited therefore its operation and profitability have no impact whatsoever to operation/profitability of S. Alam Cold Rolled Steels Limited or on the trade of shares of the company. As per SEC Directive No. SEC/CMRRCD/2001-16/164 dated September 06, 2009, Dhaka Stock Exchange under sub-rule (3) of rule 3 of the Securities and Exchange Commission (Over-the-Counter) Rules, 2001 shall provide OTC facilities to the issuers of the securities already delisted by DSE, excluding those securities which have been delisted upon application of the issuers concerned. The company has informed that the corporate office of the company will be shifted to its own space at 'Paramount Heights' (14th floor), 65/2/1, Box Culvert Road, Paltan, Dhaka-1000 with effect from September 27, 2009. Summit Uttaranchol Power Company Limited (SUPCL) and Summit Purbanchol Power Company Limited (SPPCL), 99% Subsidiaries of Summit Power Limited (SPL), today, has signed an agreement with Industrial and Infrastructure Development Finance Company Limited (IIDFC) regarding conversion of the term loan facilities into redeemable preference shares subject to the approval of the Regulatory Authorities and of the shareholders of the respective companies' in EGMs. The conversion may save approximately 3% funding cost of both the companies.

FINANCIAL GLOSSARY Investment product line (IPL) Investments

Investment value

The line of required returns for investment projects as a function of beta (non-diversifiable risk). As a discipline, the study of financial securities, such as stocks and bonds, from the investors viewpoint. This area deals with the firms financing decision, but from the other side of the transaction. Mainly applies to dealer securities. Fixed income value of a convertible, the price at which the convert would have to sell as a straight debt instrument relative to the yield of other bonds of like maturity, size and quality; represents a presumed floor to the bond, allowing, of course, for the continued credit worthiness of the issuer and the general level of interest rates.

Source: Forbes.com DISCLAIMER This document has been prepared and issued by IDLC on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst all reasonable care has been taken to ensure that the facts stated here are accurate as on the date of this document, neither IDLC nor any of its directors, management, or employees shall, in any way, be responsible for the contents and no representation or warranty, expressed or implied, is made as to their accuracy, completeness, and correctness. IDLC endeavours to update the information provided in this document on a reasonable basis. However, IDLC has no obligation to inform the recipients when such changes occur. This document is for general information of the stakeholders of IDLC. It does not solicit any action based on the materials contained and should not be construed as an offer or solicitation to buy, sell, or subscribe to any security. This document or any information contained herein shall not form the basis of or be relied upon in connection with any contract or commitment whatsoever. All investors are strongly advised to take professional advice regarding any investment decision.

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