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.
Dhaka Stock Exchange DSE, Bourse on the last working day of the week, 2nd May, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.
710 crore 62 lakh taka shares were traded on this day. 125 crore 9 lakh more tradings were done in DSE today compared to the previous workday, 30th April , Shares worth Tk 835 crores 72 lakh shares were traded last time, Tuesday.
The benchmark DSEX added 30.99 points or 5,615 The Shariah-based index DSES gained 4.92 points or 1,232, and the blue-chip index DS30 increased by 12.55 points or 2,007.
Of the issues traded, 207 advanced, 140 declined and 48 remained unchanged.
Sinobangla Industries Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.95 percent. On this day, the share was last traded at Tk 44.20 paisa.
Rupali Bank PLC ranked top loser on the DSE, the share price dropped by Tk 4.10 paisa or 15.07 percent. On this day, the share was last traded at Tk 23.10 paisa.
DSE topped on trade is Sonali Aansh Limited 63 crore 49 lakh takas of company shares have been traded.
A total of 43 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 67 lakh 76 thousand 965 shares of the companies were traded. The financial value of which is 70 crore 01 lakh taka
8 listed mutual funds disclose their financial reports for the third quarter, (January – March 24). This information is known from DSE sources.
SEML FBLSL Growth Fund: earnings per unit (EPU) loss Tk 0.74 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.08 paisa during the same period last year. NAV per unit at Market Price was Tk. 9.35 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.50 as of March 31, 2024.
SEML Lecture Equity Management Fund: earnings per unit (EPU) loss Tk 0.55 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.11 paisa during the same period last year. NAV per unit at Market Price was Tk. 9.47 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 11.12 as of March 31, 2024.
AB Bank 1st Mutual Fund: earnings per unit (EPU) loss Tk 1.24 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.04 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.87 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 11.22 as of March 31, 2024.
Popular Life First Mutual Fund: earnings per unit (EPU) loss Tk 1.55 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.04 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.49 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.98 as of March 31, 2024.
EBL NRB Mutual Fund: earnings per unit (EPU) loss Tk 1.50 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.05 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.67 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.97 as of March 31, 2024.
PHP First Mutual Fund: earnings per unit (EPU) loss Tk 1.50 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.02 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.54 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.93 as of March 31, 2024.
Green Delta Mutual Fund: earnings per unit (EPU) loss Tk 0.94 paisa in Q3 of the current financial year (January – March 24). EPU was loss Tk 0.02 paisa during the same period last year. NAV per unit at Market Price was Tk. 9.06 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.33 as of March 31, 2024.
DBH First Mutual Fund: earnings per unit (EPU) loss Tk 1.07 paisa in Q3 of the current financial year (January – March 24). EPU was loss Tk 0.018 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.92 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.19 as of March 31, 2024.
One of the Listed companies, Standard Bank PLC has recommended 2.5% Cash Dividend & 2.5% stock Dividend for the year ended December 31, 2023.
In terms of financial performance, The Company has also reported Consolidated EPS of Tk. 1.27 for the year ended December 31, 2023. NAV per share of Tk. 16.93 paisa.
The Annual General Meeting (AGM) of the company will be held on July 29, through the digital platform. The record date for this has been fixed at June 11.
