Message of Chairman

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.