Stocks
Asian Markets React to US Inflation Data, Dollar Hits 34-Year High Against Yen
Asian markets experienced a reversal on Thursday following forecast-topping US inflation data, which dealt a substantial blow to hopes for a June interest rate cut. Traders were forced to re-evaluate the outlook for monetary policy, with a warning that the next move could even be a hike.
The losses mirrored a sell-off on Wall Street and resulted in the dollar reaching a 34-year high against the yen, sparking speculation that Japanese authorities would intervene to support their struggling currency.
Figures revealing a 0.4 percent on-month and 3.5 percent on-year increase in the consumer price index were both above consensus for the third consecutive month. Observers cautioned that the pick-up might not be a temporary blip but could indicate a concerning trend.
These numbers followed other data, including a forecast-beating jobs report, suggesting that the US economy, despite borrowing costs being at a two-decade high and inflation well above target, remained robust.
The reading provides Federal Reserve officials with more to consider ahead of their May policy meeting, with their recent guidance of three rate cuts this year now in question.
Investors began the year hopeful that the central bank would implement six cuts in 2024, starting with one in March. However, they are now considering at most two cuts, with the likelihood of a June reduction decreasing.
However, some remain less optimistic. Torsten Slok from Apollo Global Management stated, “We are sticking to our view that the Fed will not cut rates in 2024.” Meanwhile, former Treasury Secretary Lawrence Summers warned that traders must “take seriously the possibility that the next rate move will be upwards rather than downwards.”
Despite concerns, minutes from the Fed’s recent meeting indicated that while decision-makers were apprehensive about recent figures, they still envisioned cuts this year.
“However, a few participants noted that residual seasonality could have affected the inflation readings at the start of the year,” the Fed stated.
Neil Wilson from Finalto added that “despite the hot number, there are many reasons why the Fed may still cut in June… but if the market moves too far out of step then the Fed may be forced to wait a little longer.”
The disappointing data sent all three main indexes on Wall Street into the red, and Asia followed suit, with Hong Kong, Tokyo, Sydney, Seoul, Singapore, Wellington, Taipei, and Manila all seeing declines.
“The fallout from the hotter-than-expected US inflation read… will reverberate across regional equity markets (Thursday),” observed Tony Sycamore of IG Australia.
“Investors were keeping tabs on Tokyo as the dollar surged to 153.24 yen, the strongest since 1990, on the US CPI reading.”
Authorities in Tokyo have indicated they would keep their options open on supporting the yen. However, while top currency official Masato Kanda has attributed volatility in the dollar-yen exchange to speculators, analysts noted that the latest moves were more related to the US data.
“It’s clearly a US dollar move and Japanese officials can’t really argue its speculators attacking the yen,” commented Peter Vassallo of BNP Paribas Asset Management.
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.
