Stocks
Asia Stocks Rise Amid Focus on US Inflation Data
Equities mostly climbed in Asia on Wednesday after a subdued day on Wall Street, as investors focused on the imminent release of crucial US inflation data, which could significantly impact interest rate expectations.
Following last week’s robust jobs report, indicating a resilient economy, there’s apprehension on trading floors that a third consecutive overshoot in consumer prices might prompt the Federal Reserve to postpone rate cuts.
“The consumer price index is the critical number this week,” remarked Andrew Brenner of NatAlliance Securities. “The fear is that CPI has continued to be a thorn in the side of the Fed.”
He noted that market sentiment is strongly bearish.
Expectations for rate cuts this year have diminished from six at the year’s onset to possibly three, with some even considering zero. However, some argue that no rate cuts could be the price for sustained economic health and robust earnings.
Atlanta Fed chief Raphael Bostic struck a pragmatic tone on Tuesday when discussing the bank’s strategy. While reiterating a forecast of one reduction this year, he remained open to reassessment based on incoming data.
Responding to inquiries about the possibility of maintaining rates unchanged all year, he stated, “I do think the risks are balanced, and given that the US economy has been so robust and resilient… I can’t rule out the possibility that rate cuts may need to be postponed further.”
However, he also acknowledged, “if I started to receive different signals suggesting potential labor market distress, then I’d consider altering our policy stance and possibly cutting rates sooner.”
Krishna Guha at Evercore maintained optimism ahead of the CPI reading, suggesting that “the odds are the data will come in good enough to proceed.”
On Wall Street, the S&P 500 and Nasdaq registered modest gains, while the Dow dipped marginally.
In early Asian trading, Hong Kong surged over one percent, with Sydney, Taipei, and Wellington also in positive territory, although Shanghai edged lower.
Tokyo experienced declines as a stronger yen weighed on exporters. The currency strengthened against the dollar following less-dovish comments from Bank of Japan chief Kazuo Ueda.
The yen’s exchange rate, particularly against the dollar, has been closely monitored, with many observers identifying 152 yen per dollar as a threshold prompting authorities to intervene to support the Japanese currency.
Last month, the central bank raised interest rates for the first time since 2007, as inflation remains significantly above officials’ target, fueling speculation about future moves.
Addressing lawmakers on Tuesday, Ueda noted, “We must consider scaling back monetary easing if the underlying price trend aligns with our outlook.”
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.
