Stocks
Asian Markets Fluctuate Amid Speculation on Fed Interest Rate Cuts
Asian markets experienced fluctuations on Monday as traders assessed the likelihood of the Federal Reserve implementing interest rate cuts this year, following a robust US jobs report that tempered expectations for an immediate move in June.
Friday saw a rally in Wall Street’s three main indexes after news of 303,000 new jobs created in the United States for March. Investors focused on the positive implications for the economy rather than the potential effects on monetary policy.
However, analysts cautioned that the strong figures, which also indicated a decline in unemployment and sustained wage growth, could deter the Fed from implementing the three anticipated rate cuts in 2024, as previously indicated.
Market participants now await the release of minutes from the central bank’s recent meeting, along with the latest consumer price index (CPI) reading.
Saxo’s Redmond Wong noted that the CPI figures would be critical in determining whether the recent inflation surge is a lasting trend, referring to earlier-than-expected inflation figures at the beginning of the year.
Marc Chandler of Bannockburn Global Forex cautioned that there are fewer reasons to discount the employment data, as the economy continues to outpace the Fed’s long-term non-inflation growth pace.
There is increasing speculation that the Fed may not be able to execute the projected three rate cuts this year. Some suggest that if economic data remains robust, officials may face pressure to delay rate adjustments until 2025.
Asian investors struggled for direction on a mixed day, with Hong Kong, Tokyo, Sydney, Seoul, and Taipei seeing gains, while Shanghai, Singapore, Manila, and Wellington registered declines.
Additionally, geopolitical developments are being closely monitored, with talks in Cairo aimed at brokering a truce between Israel and Hamas showing progress, as reported by state-linked Egyptian outlet Al-Qahera.
However, Israel’s announcement of ongoing military preparations in Gaza’s Rafah city and Iran’s threats of retaliation against Israel following an attack on its embassy in Damascus contribute to ongoing tensions in the region.
Oil prices dipped on Monday amidst hopes for a ceasefire, but concerns about supply disruptions in the event of a broader conflict between Israel and Iran continue to support prices near five-month highs.
Gold prices retreated after reaching a new record on Friday, buoyed by expectations of rate cuts and geopolitical uncertainties.
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.
