Stocks
Asian Markets Rally Amid Rate Cut Hopes, Geopolitical Tensions
Asian markets experienced an upswing on Monday as traders assessed US inflation data, renewing optimism for an imminent interest rate reduction. However, gains were tempered by geopolitical concerns following recent joint US-UK strikes on Huthi targets in Yemen.
These airstrikes, targeting Iran-backed rebels, were a response to their threats of further attacks on Red Sea shipping, mirroring similar actions by Western forces on Friday. The developments triggered a four percent surge in oil prices on Friday, though gains were later trimmed as traders observed an uptick in non-OPEC production and indications of a slowing global economy. Both major oil contracts exhibited fluctuations on Monday.
Against the backdrop of these events, apprehensions have risen that the crisis, coupled with Israel’s ongoing conflict with Hamas in Gaza, might escalate into a regional conflict, potentially disrupting trade routes and propelling crude oil prices beyond $100.
Bloomberg reported that over 350 oil tanker owners had temporarily halted journeys through the Red Sea, with more likely to follow suit as Western forces caution ships to stay clear of the region.
Concerns have emerged that a broader conflict could push up energy prices, reigniting fears of inflation. This comes after a period of declining inflation last year, prompting central banks to contemplate interest rate cuts.
However, Friday’s data revealing a third consecutive monthly decline in the US producer price index, the best streak since 2020, injected optimism into expectations for a rate cut in the first quarter.
The producer price index figures provided a boost after a higher-than-expected rise in the consumer price index, along with robust job numbers and Federal Reserve minutes indicating a commitment to keeping rates elevated.
As a result, Treasury yields dropped, with traders factoring in an 80 percent likelihood that monetary policymakers would cut rates as early as March, compared to 62 percent the previous week. The market is anticipating approximately 170 basis points in reductions for 2024.
On Wall Street, the three main indexes closed slightly higher on Friday, with financials being a drag due to corporate reports warning of lower interest income this year as Fed borrowing costs decrease.
In the Asian markets, Tokyo continued its upward trajectory from last week, where the Nikkei surpassed 35,000 for the first time since 1990, buoyed by renewed inflation and a weaker yen that benefits exporters. Hong Kong and Shanghai also experienced gains, following China’s decision to refrain from cutting short-term interest rates while injecting billions of dollars into financial markets.
In Taipei, stocks rose as pro-sovereignty candidate Lai Ching-te won Taiwan’s presidential election. However, Lai’s Democratic Progressive Party (DPP) lost its legislative majority, signaling potential compromises with smaller parties, including the pro-China Kuomintang.
The modest winning margin for Lai and the legislative impasse suggest constraints on pursuing radical agendas, especially concerning Taiwan’s independence, according to Redmond Wong of Saxo Markets. He noted that while mainland China has expressed dissatisfaction, measured reactions may alleviate immediate concerns of heightened cross-strait tensions.
The Bangladesh Securities and Exchange Commission (BSEC) has today approved appointment of Ms. Nuzhat Anwar as the new Managing Director of Dhaka Stock Exchange PLC. (DSE).
Ms. Nuzhat Anwar brings over two decades of experience in financial markets, banking, and development finance. Prior to her appointment, she worked at the International Finance Corporation (IFC), the private sector arm of the World Bank Group, where she held multiple senior leadership roles across Africa and South Asia. Her positions included Resident Representative for Liberia and Sierra Leone, Senior Country Officer for Bangladesh covering Bangladesh, Bhutan, and Nepal, and acting Cluster Manager during the COVID-19 pandemic and the subsequent transition period.
Ms. Anwar also served as an IFC Country Officer in Botswana and Namibia, where she played a key role in establishing IFC’s presence in Gaborone and advancing a sustainable investment program, including IFC’s first investment in Botswana. She offers deep expertise in capital management, treasury and liquidity, transaction services, portfolio optimization, and market advocacy. Earlier in her career, she spent 16 years with Citibank Bangladesh and Standard Chartered Bank Bangladesh in various senior management roles.
Ms. Anwar holds a Master’s degree in Commerce (Finance) from the University of Dhaka.
On her appointment as the Managing Director of DSE, the Chairman of the Board of DSE Mr. Mominul Islam said, “We are pleased to receive the approval of BSEC for appointment of Ms. Anwar as the new Managing Director. Over the last one year the NRC and Board of have worked hard to recruit a competent leader as the MD of DSE. We are confident that Ms. Anwar, with her excellent leadership trait, vast experience in the financial sector in home and abroad and deep passion for transformation in the Capital Market of the Country, is the right candidate to lead DSE in the days ahead. Now, we will complete the internal processes to onboard Ms. Anwar at soonest.”
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.
