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 last working day of the week, 25th July, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.
497 crore 34 lakh taka shares were traded on this day. 337 crore 97 lakh more tradings were done in DSE today compared to the previous workday, July 24th, Shares worth Tk 159 crores 37 lakh shares were traded last time, Wednesday.
The benchmark DSEX increased 62.81 points or 5,413 The Shariah-based index DSES added 13.81 points or 1,183 and the blue-chip index DS30 gained by 24.25 points or 1,932.
Of the issues traded, 286 advanced, 66 declined and 40 remained unchanged.
Techno Drugs Limited ranked top gainer on DSE, the share price increased by Tk 3.80 paisa or 9.87 percent. On this day, the share was last traded at Tk 42.30 paisa.
Rangpur Foundry Limited ranked top loser on the DSE, the share price dropped by Tk 5.40 paisa or 2.98 percent. On this day, the share was last traded at Tk 175.70 paisa.
DSE topped on trade is Square Pharmaceuticals PLC 35 crore 9 lakh takas of company shares have been traded.
A total of 28 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 82 lakh 94 thousand 29 shares of the companies were traded. The financial value of which is 21 crore 92 lakh taka
One of the listed companies, Eastland Insurance Company Limited discloses its financial reports for the second quarter, (April – June 24).
The company’s earnings per share (EPS) Tk 0.27 paisa in Q2 of the current financial year (April – June 24). EPS was Tk. 0.41 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. NAV per share was Tk. 20.85 as of June 30, 2024.
One of the listed companies, Shahjalal Islami Bank PLC discloses its financial reports for the second quarter, (April – June 24).
The company’s Consolidated earnings per share (EPS) Tk 1.50 paisa in Q2 of the current financial year (April – June 24). Consolidated EPS was Tk. 1.50 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. Consolidated NAV per share was Tk. 20.85 as of June 30, 2024.
