Dear Shareholders of Janata Capital and Investment Limited,
Please accept my sincere greetings on the occasion of 10th Annual General Meeting (AGM) of Janata Capital and
Investment Limited (JCIL). I offer my profound thanks to you all for gracing the AGM as esteemed shareholders of
this full-fledged merchant bank.
As we assemble for the 10th AGM, Bangladesh, as a nation and as a country, is enthusiastically celebrating the
‘MujibBorsho’, the centenary birth anniversary of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman.
Bangabandhu is the most revered and towering personality not only in Bangladesh but also in the whole world. Let us all
today pledge to follow the ideals of Bangabandhu and contribute meaningfully to the nation’s efforts to fulfill his dreams.
Respected shareholders, as you all know, Bangladesh have been making commendable progress in economic sectors.
Bangladesh has achieved GDP growth of nearly 8% in the last two years. There was acceleration in the growth rate of
industry from 12.1% in FY 2018 to 13.1% in FY 2019. The rate of inflation diminished from of 5.8% in FY 2018 to 5.5% in
FY 2019. Export growth rose sharply from 6.7% in FY 2018 to 10.1% in FY 2019. The amount of remittances surged
sharply by 9.6% and reached US $16.4 billion in FY 2019. It is a matter of great pride that GDP growth in Bangladesh
was the highest in South Asian region in 2019. Bangladesh also received praise for commendable improvement in some
social indicators, such as, increase in life expectancy, decrease in infant mortality and better women empowerment.
But it is disappointing to note that the achievement in the broader economy was not reflected in the stock market in
Bangladesh. The Bangladesh stock market experienced sluggish position in 2019. The benchmark index of the Dhaka
Stock Exchange, DSEX, at the end of 2019 was 4452 as compared to 5385 at the end of 2018. At the same time, total
turnover in 2019 was Tk 1138402 million; down from total turnover of Tk 1333638 in 2018. The total market
capitalization of DSE fell down from Tk 3872953 million in 2018 to Tk 3395510 million in 2019.
But you will be glad to note that, your merchant bank’s performance in 2019 was fairly well in spite
of adverse situation in the stock market. JCIL undertook transaction of securities on account of its
proprietary portfolio and other merchant activities in a judicious manner. It maintained regular
communication with its investment account holders with a view to helping them design appropriate
investment and trading strategies. When down trend prevails in the stock market
JCIL made capital gains of Tk 41 million in 2019 as a result of realistic trading strategies. JCIL
earned a profit of Tk 17.5 million after tax, resulting in Earnings Per Share of Tk 0.04 in 2019 as
compared to net profit after tax of Tk 51 million and EPS of Tk 0.12 in 2018. In consideration of the
fact that the stock market position was unfavorable in 2019, JCILs operation and financial results
can be termed satisfactory.
You all know that this year’s AGM is being held in the midst of a severe global health, social and
economic catastrophe unleashed by the highly contagious and infectious virus, COVID-19. The virus,
called pandemic by World Health Organization, originated in early January in China and quickly
spread to large part of the world. In an effort to tame the transmission of the virus and its fatality, an
overwhelming number of countries imposed lockdown or curfew along with ‘stay at home’, and ‘social
distancing’ advice for a long period. These measures have disrupted economic and business activities
in an unprecedented manner. Bangladesh has also declared general holiday for than two months.
The World Bank, International Monetary Fund, Asian Development Fund have all predicted grim
economic, financial and business outlook for the global economy and for individual countries. Many
countries including Bangladesh have provided wide range of stimulus packages and financial
assistance for the very badly affected sectors and population. A number of countries are striving to
produce effective medication. But at this juncture, it is too early to determine the ultimate
implications of the virus.
While management of JCIL adopted timely steps and strategies to attain good results, the board of
directors of JCIL provided the necessary guidelines and supervisory supports. The activities and
performance of JCIL are reviewed regularly at the meeting of the board of the directors. The board of
the directors and management of JCIL keep a close eye on the stock market of Bangladesh to take
suitable actions at the right time to sustain JCILs good operation and financial health. We will
appreciate your guidance in this regard.
I would like to thank you all again for your gracious presence.