Stocks
Fed Rate Cut Expectations Trigger Market Pause in Asian Trading
Asian markets turned bearish on Thursday as investors eased off the gas following a prolonged rally driven by expectations of interest rate cuts by the Federal Reserve in the coming year. Recent data indicating a slowing inflation rate and a softening job market, coupled with positive economic indicators, fueled the market optimism. However, investors pulled back amid uncertainty about the Fed’s future decisions.
On Wednesday, US consumer confidence exceeded forecasts, and home sales rebounded from a 13-year low. The upcoming release of the personal consumption expenditures (PCE) price index on Friday, considered by the Fed in decision-making, has become pivotal for market dynamics. The Fed’s indication of potential rate cuts in 2024 led to a buying frenzy, but officials are now attempting to manage expectations.
Stephen Innes of SPI Asset Management noted that the PCE figures could influence market dynamics into the year-end and beyond. An upside surprise might reinforce the Fed’s efforts against rate cut expectations, while a downside surprise could challenge expectations of a rate cut in March.
Despite positive data, investors took profits, leading to a pullback in the market. Cameron Dawson of Newedge Wealth cautioned about the market being overbought and extended, emphasizing the potential for a pullback. Wall Street’s major indices experienced declines, and Asian markets, including Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Taipei, Jakarta, and Manila, followed suit. Singapore and Wellington saw marginal gains.
In corporate news, Toyota shares dropped nearly four percent in Tokyo after its subsidiary, Daihatsu, announced a suspension of shipments for all car models in Japan and abroad due to safety test irregularities. The world’s largest carmaker later revealed a recall of around a million Toyota and Lexus vehicles in the United States over concerns about their airbag systems.
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
