BANGLADESH

The benchmark index of Dhaka Stock Exchange (DSE) went down in the early trading on Monday.

DSE general index dropped 29 points to 4205 points at 12pm.

Shares and mutual funds worth Tk 730 million changed hands until then.

Prices of 40 issues advanced, 168 declined and 17 retained their opening prices.

On Sunday, the DGEN lost 50 points with a turnover of Tk 2610 million.

The index advanced 118 points or 2.84 percent last week, 2 points in the week before last week but declined 125.85 points or 2.93 percent in the previous week.

If Apple Inc's weaker-than-expected quarterly result is anything to go by, the global smartphone industry is a lot more vulnerable to economic shocks these days than during the 2008-2009 financial crisis.

In developed markets, every other person already owns a smartphone. In emerging markets, penetration rates are much lower, but cheaper phones that cost under $100 are squeezing profit margins.

That was not the case during the last recession, when Apple's iPhone and Google Inc's Android were still in their infancy. Smartphone demand remained strong even as sales of other electronics declined because consumers felt it was worthwhile to upgrade to a device with so much to more to give - touchscreens, email and full Web browsers.

Without a technology breakthrough such as touchscreen - made popular by the first iPhone in 2007 - people are in far less of a hurry to upgrade their phones this time around, analysts said.

That was evident from Apple's June quarterly results, which showed a much bigger hit from the European debt crisis than Wall Street expected.

"The economy is having an impact on all electronic goods. Even Apple, which did defy gravity in the last recession, is not escaping now," said Hudson Square Research analyst Daniel Ernst.

Smartphone users, who typically upgrade their phones every 18 to 24 months, are now holding on for three months longer than usual, according to Gartner analyst Carolina Milanesi.

"The reason to upgrade is less urgent" she said.

PRICE PRESSURE

Overall smartphone shipments rose 32 percent in the second quarter, their slowest pace since 2009's 16 percent increase, according to Strategy Analytics. The research firm forecast annual smartphone shipment growth would slow to 40 percent in 2012 from 68 percent in 2011 and ease further to 23 percent in 2013.

Analysts say demand from emerging markets will support smartphone shipments even if the global economy takes a turn for the worse, but a growing supply of lower price devices from vendors such as Huawei Technologies Co Ltd HWT.UL and ZTE Corp 000063.SZ will pressure prices even if the economy improves.

"We're forecasting ASPs (average selling prices) to dip in 2013 and accelerate from there on," said Strategy Analytics analyst Neil Mawston. "If the economy continues to flat line or dip that will accelerate the move to lower cost models."

The popularity of Apple's iPhone and Samsung Electronics Co Ltd's (005930.KS) Galaxy S will give these companies some pricing insulation, analysts said.

But there could be much more pressure for price cuts at already struggling smartphone vendors, such as LG Electronics Inc (066570.KS), HTC Corp (2498.TW), Nokia Oyj (NOK1V.HE) and BlackBerry maker Research In Motion Ltd (RIM.TO).

"Apple and Samsung's ownership of the high-tier and intense price erosion means the fight among others will be cutthroat," said CCS Insight analyst Geoff Blaber.

The tough road ahead for smaller vendors became more apparent this week, when market leader Samsung reported its best quarterly smartphone sales in history as it outsold Apple and won customers from smaller rivals. Samsung's bigger size allowed it to drive down costs and still make a profit on phones that would generate a loss for smaller rivals.

Some of Apple's earnings miss was attributed to consumers postponing purchases in anticipation of a new iPhone model hitting store shelves this fall. LG did not have that excuse - its cellphone division, which accounts for around one-fifth of sales, posted a quarterly loss as competition forced LG to spend more on marketing for cheaper phones.

LESS PURCHASING POWER

According to Gartner, about 35 percent of an estimated 1.9 billion cellphones sold this year will be smartphones. Between 20 percent and 25 percent of people in the world already own smartphones, with the penetration rate rising to 50 percent to 55 percent in the United States.

"The first wave is selling expensive models to affluent buyers. The second wave is selling lower cost models to less affluent buyers," Strategy Analytic's Mawston said.

Gartner's Milanesi said Huawei and ZTE are in the best position among the lower-tier smartphone vendors.

"If price is the first driver I'm going to pick the Chinese," said Milanesi, who said LG and HTC are most vulnerable to price declines as they "need more to stand out."

Also putting pressure on handset makers are the wireless service providers on which they are heavily dependent in many regions such as Europe and the United States for promotions. Carriers often subsidize phones to encourage their customers to commit to long term contracts.

In Europe, some operators such as Telefonica have been dropping subsidies entirely [ID:nL6E8FB56H]. The top three U.S. operators, Verizon Wireless, AT&T Inc (T.N) and Sprint Nextel Corp (S.N) have all been improving profit margins because they cut down on their subsidy costs by offering customers upgrades less frequently.

If consumers do have to cut spending because if the weak economy, IDC analyst Ramon Llamas said: "There's smartphone available for just about every single budget out there."

Nobel Peace laureate Muhammad Yunus on Sunday visited celebrated writer Humayun Ahmed's mother.

Yunus met Ayesha Foyez at Humayun's younger brother Ahsan Habib's Mirpur residence in the afternoon. Humayun's two sisters and brothers were there during the visit that lasted about an hour.

The writer-filmmaker's elder son Nuhash Humayun reached the residence some 40 minutes after Yunus arrived there.

"He (Humayun Ahmed) created a league of readers which Bangladesh never had. He brought the attitude to Bengali literature it did not have," Yunus told reporters after the visit.

"So far we have seen Humayun was a popular writer. But after his death it seemed he reached deep inside his readers. So people are failing to fill his absence," he added.

Humayun died on July 19 aged 64 after fighting with cancer for about nine months at a New York hospital.

The High Court was moved on Sunday for withdrawal within 24 hours the VC's order to shut down Bangladesh University of Engineering and Technology (BUET).

Dr Mohammad Yunus Ali Akanda, a father of a BUET admission-seeker, filed the motion seeking suspension on the activities of the Vice-Chancellor (VC) and Pro-Vice Chancellor (Pro-VC) and other teachers, students and staff's agitation until the ruling is disposed of.

Alongside BUET, the Education Secretary, Inspector General of Police, DMP Commissioner, the university's VC and Pro-VC, BUET Teachers Association President and General Secretary have been made respondents in the petition.

The BUET authorities had shut the institution for 44 days from July 11 in the wake of raging protest by teachers and students demanding removal of the VC and Pro-VC.

Akanda also sought court directives for the Education Secretary to form a judicial committee within seven days to investigate the recent incidents at BUET.

He asked for a directive for the respondents to publish the admission notice for the 2012-13 session within three days of the verdict.

The counsel told bdnews24.com the BUET authorities shut the institution citing summer vacation in the rainy season and it was creating terrible backlog. He said all universities had published their admission notice for the first year admission except BUET.

He said the court might hear the petition on Monday.

Foreign Secretary Mohamed Mijarul Quayes said on Sunday Dhaka was ready to engage with New Delhi to finalise extradition treaty to exchange convicts.

"India wants to sign the treaty and handed over the draft to its Bangladesh," he said at a press briefing on his recent visit to New Delhi.

The Secretary attended the Foreign Office Consultation with India on July 24 where entire range of bilateral issues was discussed.

Teesta agreement

Quayes said Bangladesh was ready to provide space to India to complete the internal consultation to resolve Teesta problem.

Dhaka asked New Delhi to complete the necessary formalities for an early conclusion of the agreement for water-sharing of Teesta, he said.

"I want to say categorically that Bangladesh gives utmost importance to signing of Teesta agreement and we raised it as a main issue in the Foreign Secretary-level meeting and sooner the issue is resolved the better impact it would have on the public domain and perception."

Bangladesh and India failed to strike an interim Teesta water-sharing deal during the visit of the Indian Prime Minister Manmohan Singh in September last year over strong resistance from West Bengal Chief Minister Mamata Banerjee.

Fast-track implementation

The Secretary said both the government agreed to fast track the implementation of the issues that had been stipulated in the two summit level meetings that were held between Bangladesh and India during the current Awami League-led government.

In those meetings, the head of governments agreed to implement land boundary agreement, Teesta agreement, trade facilitation and regional connectivity among other things, Quayes said.

"All these will be implemented through fast-track system."

Tipaimukh issue

Quayes said he had a meeting with Indian Water Secretary Dhruv Bijai Singh and the date of the first meeting of the Joint Expert Group on Tipaimukh multipurpose dam project was fixed on Aug 27-28.

The experts would study all aspects of the project with specific reference to its impact on Bangladesh.

"We also discussed the issue in the meeting with Indian Foreign Secretary Ranjan Mathai," he added.

Tipaimukh dam project is a contentious issue between the two countries as Dhaka fears that if the project is implemented, water would be withdrawn and Surma and Kushiara and other rivers in the Sylhet region would be affected.

India has sought to dispel the apprehension saying that it would not take any unilateral decision that may affect Bangladesh.

Land Boundary agreement

Bangladesh sought an early completion of all the legal processes by India side for full implementation of the 1974 Land Boundary Agreement and its additional protocol.

Dhaka requested Delhi to complete its internal process soon as the sooner it would be done, the better the public perception would be about the Indo-Bangla relationship, Quayes said.

Bangladesh and India signed the land boundary agreement in 1974 to resolve the demarcation dispute and later during the visit of Indian Prime Minister Singh in Dhaka last year, they also signed a protocol for implementation of the agreement.

The LBA stipulates that it would not be in force until the countries ratifies it. Bangladesh ratified the agreement in 1974 but India is yet to ratify it.

The headcount of the enclaves have been done, adversely possessed land has been identified and the demarcation would be settled when India ratifies the agreement.

Sergeant Helal Uddin of Dhaka Metropolitan Police has testified in court in the 10-truck arms case, claiming torture by RAB officials.

Helal Uddin was posted at Chittagong Coal Depot Police Outpost when 10 truckloads of arms were captured in Chittagong in 2004. Helal and another sergeant, Alauddin, were the first to spot the unloading of the weapons on the night of Apr 1, 2004.

He was heard on Sunday afternoon by Chittagong Metropolitan Sessions Judge and Senior Special Tribunal One Judge S M Mujibur Rahman. His statements were recorded for an hour before the session was dismissed. The remainder of the statement will be taken on Monday.

According to Helal, on Aug 19, 2005, he was called up by wireless to the Dhaka Detective Branch police headquarters, where he was detained by Rapid Action Battalion officials.

"When I was brought there, a Lt Col Gulzar asked me many questions about the 10-truck arms haul," Helal said in his statement. "Alauddin was also brought there."

"Then the two of us were sent to Chittagong RAB headquarters," he said.

"In Chittagong, I was called to RAB-7 director's room. When I went into the room and introduced myself, the director slapped me and threw me on the ground. He started beating me with a rod and broke my left leg," he said.

At one stage in his statement Helal broke into tears. The defence lawyers, however, were laughing at the moment.

"When I asked him what my fault was, he said, 'it is because of you that the country is in this state'. I replied that I was only following orders," Helal said.

The sergeant said he and sergeant Alauddin were sent to jail showing them arrested in an arms case in Noakhali. Later they both obtained bail and rejoined work.

During further investigation of this sensational case both sergeants told CID officers that the former National Security Intelligence Deputy Director Liakat Hossain was present during the unloading of weapons.

The High Court on Sunday asked the government to explain why the indemnity from prosecution for the military officers and other law-enforcing personnel in the 'Operation Clean Heart' during the BNP-led government would not be declared illegal.

The bench of justices Mirza Hussain Haider and Kazi Mohammad Ejarul Haque Akondo also demanded why the indemnity law over the joint operation conducted by the armed forces, police and paramilitary forces would not be declared to be in conflict with the Constitution.

Z I Khan Panna, chief of the outgoing Bangladesh Bar Council's Human Rights and Legal Assistance Affairs, filed the writ petition.

The High Court ruling came around a decade after the operation was initiated. Advocate Shahdin Malik argued for the petitioner while Deputy Attorney General Al Amin Sarkar represented the state at the hearing.

Top bureaucrats of the law, home and defence ministries, Commander-in-Chief of the Armed Forces and Inspector General of Police have been directed to reply to the rule within six weeks.

The High Court also sought to know why a Tk 1 billion fund will not be raised to compensate those harmed during the operation.

Soon after the BNP-Jamaat-e-Islami coalition government took office, the military ran 'Operation Clean Heart' from Oct 16, 2002 to Jan 9, 2003 to 'restore' law and order.

Many people died during the operation slated by rights groups but the authorities claimed the deaths were due to 'heart attacks'.

Then the BNP-led coalition government claimed the operation was conducted to check terrorism, while chief opposition Awami League alleged it was to annihilate the opposition leaders and supporters.

According to New York-based Human Rights Watch, 60 people were killed during the operation. Then government admitted that 12 of the detained people died of 'heart attack'.

On Feb 24, 2003, the BNP-Jamaat government passed a law, providing indemnity to the military officials who took part in the special operation.

Lawyer Shahdin Malik told bdnews24.com Bangladesh had signed the international convention forbidding torture in 1998. Section 14 of the law talks about raising fund to compensate anyone harmed at the hand of the government forces.

He added the Supreme Court of India had also issued many orders on the issue.

Z I Khan told bdnews24.com: "This indemnity law is one of the darkest laws in the world. No other country has this type of laws... no civilised country can have such law. Having [this law] is a blatant disregard for the rule of law."