59

MARKET PULSE 

FEB-2018

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Current Account Balance (USD mn)

Source: Bangladesh Bank

(890)

JUL-JAN FY17

(5,347)

JUL-JAN FY18

BDT slid by 161bps, 30bps and 11bps against USD on MoM basis 

and the official exchange rate at the end of Feb’18 stood at BDT 

82.92 per USD. The last four months has seen a 2.59% depreciation 

of the BDT, even after the structural support provided by open 

market dollar sale by the central  bank. strong forex reserve BDT 

is continuing to depreciate due to rising demand for dollar. 20%+ 

remittance growth on January and February has helped depreciation 

to slow in Feb’18. The current account balance posted a huge deficit 

in the first half of the fiscal year. This reflects the existing foreign 

currency shortage in the country’s economic system. With USD 

20.59bn worth of new L/Cs being opened during Jul-Nov’17 and 

USD 36.40 bn import L/Cs outstanding, the pressure on the BDT 

looks set to continue.
If we look at the official inter-bank rates, BDT depreciated by 5.02% 

in the twelve months since Jan’17. This depreciation against USD 

was expected and this might ultimately bring some positive result for 

us in the long run, especially for our exports, as BDT was becoming 

overvalued compared to many currencies. Our expectation was  an 

overall depreciation of 3%-4% against USD in 2017 which was 

exceeded by actual events and the pressure might continue over the 

rest of the FY. 
Market continued falling trend with 3.89% index loss in 

February 2018
Market trailing P/E stood at 16.86x
Average daily turnover stood at BDT 4.04 bn, decreasing by 

7.70% month-on-month basis compared to January 2018
After January closed with sustained downward momentum, 

Bangladesh equities saw continuation of the trend as financial stocks 

Monthly Import (C&F) (USD mn)

Remittance Inflow (USD mn)

Source: Bangladesh Bank

Source: Bangladesh Bank

22.16%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

 -

 1,000

 2,000

 3,000

 4,000

 5,000

 6,000

Feb-16

Ma

r-

16

Apr-

16

Ma

y-

16

Jun-16

Jul-

16

Aug-16

Sep-16

Oct-

16

Nov-16

Dec-16

Jan-17

Feb-17

Ma

r-

17

Apr-

17

Ma

y-

17

Jun-17

Jul-

17

Aug-17

Sep-17

Oct-

17

Nov-17

Dec-17

Jan-18

Monthly Import (USD mn)

YoY Growth (RHS)

22.73%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

 -

 200

 400

 600

 800

 1,000

 1,200

 1,400

 1,600

Dec-15

Jan-16

Feb-16

Ma

r-

16

Apr-

16

Ma

y-

16

Jun-16

Jul-

16

Aug-16

Sep-16

Oct-

16

Nov-16

Dec-16

Jan-17

Feb-17

Ma

r-

17

Apr-

17

Ma

y-

17

Jun-17

Jul-

17

Aug-17

Sep-17

Oct-

17

Nov-17

Dec-17

Jan-18

Feb-18

Remittance (USD mn)

YoY Growth (RHS)

Foreign Exchange Reserve (USD bn)

Source: Bangladesh Bank

33.37 

0%

5%

10%

15%

20%

25%

 -

 5

 10

 15

 20

 25

 30

 35

 40

Oct/1

5

Dec/15

Feb/16

Apr/16

Jun/16

Aug/16

Oct/1

6

Dec/16

Feb/17

Apr/17

Jun/17

Aug/17

Oct/1

7

Dec/17

Feb/18

Reserve (USD bn)

YoY Growth (RHS)

Average Exchange Rate (BDT per USD)

Source: Bangladesh Bank

58.94 

61.39 

67.08 

69.03 

68.60 

68.80 

69.18 

71.17 

79.10 

79.93 

77.72 

77.67 

78.27 

79.13 

81.57 

 40

 45

 50

 55

 60

 65

 70

 75

 80

 85

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

*FY1

8

Index Trend Jan-Feb’18

5400

5700

6000

6300

6600

1/Jan8/Jan

15/Jan

22/Jan

29/Jan

5/Feb12/Feb19/Feb26/Feb

Source:  DSE