Stocks
Asian Stocks Retreat on Middle East Concerns and Fed Rate Cut Uncertainty
Asian stocks edged lower on Tuesday as concerns over the situation in the Middle East overshadowed expectations for an early Federal Reserve interest rate cut. The absence of trading catalysts due to a holiday in Wall Street limited buying activity, and analysts cautioned that optimism about substantial monetary policy loosening by the US central bank might be excessive. Equities had surged at the end of 2023 amid signs of decreasing inflation and a softening job market, fueling speculation of a Fed rate cut. However, recent developments, including strong employment data and higher-than-expected consumer prices, have tempered those expectations.
Market pricing indicates anticipation of nearly seven rate cuts in 2024, reflecting the belief that disinflation is firmly entrenched. Analysts, such as Stephen Innes at SPI Asset Management, questioned whether the market is now overestimating the Fed’s readiness to implement rate cuts over the next 12 months. While inflation is generally trending downward, concerns persist that it could resurface, especially amid ongoing tensions in the Middle East.
Recent US and UK strikes against Yemen’s Huthis, in response to attacks on Red Sea shipping, have heightened geopolitical tensions, with fears of potential retaliation. Despite initial upward movement, oil prices remain subdued due to global economic struggles, particularly in China. Investors are now awaiting key US data releases on retail sales, industrial production, and jobs later in the week.
Most Asian markets experienced declines, with Tokyo seeing a small drop after six consecutive gains that lifted the Nikkei to a 34-year high. Hong Kong, Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei, and Manila also reported losses. The weak performance follows European losses tied to Germany’s slight economic contraction in 2023, attributed to factors such as costly energy, high-interest rates, and weakening foreign demand.
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.
