Stocks
Asian Stock Markets Slump as Investors Brace for Prolonged Rate Hikes
Global financial markets took a sharp nosedive on Tuesday as investors grew increasingly anxious about the possibility of another interest rate hike in the United States. Concerns were compounded by worries that these elevated rates might persist to combat stubbornly high inflation.
Despite a brief rebound on Wall Street, early Asian trading saw the dollar strengthen even further, driven by a surge in US Treasury yields to their highest levels in 16 years. This development reignited fears that the world’s largest economy could slip into a recession.
Adding to the uncertainty, lawmakers in Washington struggled to reach an agreement on spending, raising the specter of a government shutdown. This political deadlock prompted warnings that it could negatively impact the US credit rating. The recent surge in oil prices further fueled concerns that central banks’ efforts to curb inflation might be derailed after over a year of tightening measures.
Last week, the US Federal Reserve indicated that it could raise borrowing costs once again before the year’s end. This announcement dealt a blow to many market participants who had hoped that the interest rate hike in July would be the last for a while. Additionally, policymakers hinted that rates might need to remain at their highest levels in over two decades for an extended period.
Market analysts from the BlackRock Investment Institute believe that “rates will stay high” and that Treasury yields could continue to climb. They suggest that rising long-term bond yields reflect the market’s adjustment to increased macro and market volatility. The prevailing sentiment, as noted by National Australia Bank’s Tapas Strickland, is that rates will remain elevated for an extended period, reflecting the Federal Reserve’s stance.
In early Asian trading, major stock markets including Tokyo, Hong Kong, Shanghai, Seoul, Singapore, Sydney, Taipei, and Wellington all experienced declines, reflecting the uncertainty gripping investors. The situation in China’s property sector also raised concerns, with the troubled developer Evergrande announcing that it had missed an onshore bond repayment.
On the currency front, the dollar remained near 11-month highs against the yen, prompting Japanese authorities to express their willingness to intervene if the dollar’s ascent becomes excessive. However, analysts do not anticipate a significant strengthening of the yen, given the Bank of Japan’s commitment to its ultra-loose monetary policy.
The ongoing political standoff in Washington, where hardline Republicans in the House of Representatives have blocked key spending bills, is causing unease among investors. If an agreement is not reached by the weekend, it could lead to a government shutdown, a scenario that Moody’s warns would have negative implications for the US’s top-tier credit rating.
Dhaka Stock Exchange DSE, Bourse on the fourth working day of the week, 15th May, ended with a drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
526 crore 33 lakh taka shares were traded on this day. 138 crore 3 lakh less tradings were done in DSE today compared to the previous workday, 14th May , Shares worth Tk 664 crores 36 lakh shares were traded last time, Tuesday.
The benchmark DSEX lost 58.22 points or 5,527 The Shariah-based index DSES dropped 12.79 points or 1,212, and the blue-chip index DS30 decreased by 14.14 points or 1,977.
Of the issues traded, 61 advanced, 301 declined and 33 remained unchanged.
Reliance One the first scheme of Reliance Insurance Mutual Fund ranked top gainer on DSE, the share price increased by Tk 1.50 paisa or 8.77 percent. On this day, the share was last traded at Tk 18.60 paisa.
Bay Leasing & Investment Limited ranked top loser on the DSE, the share price dropped by Tk 0.30 paisa or 3.00 percent. On this day, the share was last traded at Tk 9.70 paisa.
DSE topped on trade is Alif Industries Limited 19 crore 21 lakh takas of company shares have been traded.
A total of 45 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 68 lakh 31 thousand 91 shares of the companies were traded. The financial value of which is 37 crore 38 lakh taka
Dhaka Stock Exchange DSE, Bourse on the third working day of the week, 14th May, ended with a drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
664 crore 36 lakh taka shares were traded on this day. 17 crore 86 lakh less tradings were done in DSE today compared to the previous workday, 9th May , Shares worth Tk 968 crores 2 lakh shares were traded last time, Monday.
The benchmark DSEX lost 81.14 points or 5,585 The Shariah-based index DSES dropped 15.76 points or 1,225, and the blue-chip index DS30 decreased by 26.04 points or 1,991.
Of the issues traded, 31 advanced, 343 declined and 25 remained unchanged.
Reliance One the first scheme of Reliance Insurance Mutual Fund ranked top gainer on DSE, the share price increased by Tk 1.50 paisa or 9.55 percent. On this day, the share was last traded at Tk 17.10 paisa.
Union Insurance Company Limited ranked top loser on the DSE, the share price dropped by Tk 4.00 paisa or 9.32 percent. On this day, the share was last traded at Tk 38.90 paisa.
DSE topped on trade is eGeneration Limited 28 crore 18 lakh takas of company shares have been traded.
A total of 45 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 74 lakh 95 thousand 900 shares of the companies were traded. The financial value of which is 34 crore 92 lakh taka
One of the listed companies, Asia Insurance Limited discloses its financial reports for the first quarter, (January – March 24).
The company’s earnings per share (EPS) was Tk 0.37 paisa in Q1 of the current financial year (January – March 24). EPS was Tk 0.21 (restated) paisa during the same period last year. As of March 31, 2024, at the end of the first quarter of the fiscal year, the company’s net asset value (NAV) per share stood at Tk 27.87.
