Stocks
Asian Traders Navigate Volatility Amidst Rate Cut Forecasts
Asian traders endeavored to regain momentum in the recent rally on Thursday following a lukewarm performance on Wall Street. However, soaring achievements in Europe underscored optimism surrounding potential interest rate cuts by central banks.
London celebrated another milestone, reaching an all-time high ahead of an anticipated Bank of England meeting. Many anticipate that officials will signal their intention to commence the normalization of monetary policy in the summer.
This development follows Sweden’s central bank’s decision to lower borrowing costs for the first time in eight years, hinting at further reductions in the future.
The Riksbank’s move comes almost two months after the Swiss National Bank’s groundbreaking decision, making it the first major Western central bank to adjust its policies amidst a global tightening campaign aimed at combatting inflation driven by Covid recovery and the Ukraine conflict.
Traders, who had been anticipating rate cuts from the Federal Reserve, experienced a tumultuous journey this year. A series of inflation readings surpassing forecasts compelled them to revise down their expectations. Initially estimated at six, the consensus now stands at around two rate cuts by January 2024.
Several Federal Reserve policymakers have also attempted to moderate expectations. Boston Fed President Susan Collins, the latest to weigh in, suggested that rates might need to remain at their highest levels in two decades for a longer period to rein in prices. Her sentiments echoed those expressed by her Minneapolis counterpart, Neel Kashkari, the previous day.
Nevertheless, a slew of positive corporate results, reassuring remarks from Fed Chair Jerome Powell regarding the likelihood of a rate hike, and a significant shortfall in US jobs data last month have buoyed trader sentiment over the past week.
Analysts maintain a generally positive outlook on equities despite the absence of encouraging news on inflation. Mark Hackett of Nationwide noted, “As the Federal Reserve extends the timeline for interest rate cuts, historical data shows that longer Fed pauses often correlate with better equity returns. This should give investors reasons to be optimistic.”
Following London’s record-breaking performance and gains in Paris and Frankfurt, New York witnessed a mixed session, while Asian markets encountered challenges.
Hong Kong resumed its upward trajectory after a two-day decline following a ten-day winning streak, with Tokyo, Shanghai, and Manila also posting gains. However, Sydney, Singapore, Seoul, Wellington, and Taipei experienced marginal declines.
Oil prices saw a second consecutive increase as investors monitored efforts towards a ceasefire in the Middle East, notwithstanding Israel’s ongoing assault on Rafah in southern Gaza.
One of the listed companies, Provati Insurance Company Limited discloses its financial reports for the first quarter, (January – March 24).
The company’s earnings per share (EPS) was Tk 0.55 paisa in Q1 of the current financial year (January – March 24). EPS was Tk 0.73 (restated) paisa during the same period last year. As of March 31, 2024, at the end of the first quarter of the fiscal year, the company’s net asset value (NAV) per share stood at Tk 21.56.
One of the listed companies, Delta Life Insurance Company Limited, discloses its financial reports for the first quarter, second quarter. This source is known from DSE.
Q1: The company’s consolidated life revenue account for January to March 2022 shows significant growth and increased activity in its life insurance segment.
As of March 31, 2022, the balance of the Life Insurance Fund stood at 39,447.09 million taka. This marks an increase from 38,669.99 million taka recorded on March 31, 2021, resulting in a net growth of 777.10 million taka over the year.
The company also reported a substantial rise in net premium income for the first quarter of 2022. Net premiums collected from January to March 2022 amounted to 1,534.55 million taka, compared to 1,277.77 million taka during the same period in 2021.
However, the company experienced a rise in total expenses for the first quarter of 2022. Expenses reached 2,624.33 million taka, up from 2,137.90 million taka during the same period in 2021.
Q2: According to the company’s consolidated life revenue account for the half year ending June 30, 2022, the Life Insurance Fund grew significantly. The balance of the fund was 39,757.84 million taka as of June 30, 2022, compared to 38,752.46 million taka on March 31, 2021, resulting in a net increase of 1,005.38 million taka.
Net premiums collected from April to June 2022 were 2,042.16 million taka, up from 1,549.95 million taka during the same period in 2021, showing a healthy increase in premium income.
Total expenses for April to June 2022 were 2,523.06 million taka, compared to 2,282.25 million taka during the same period in 2021. This rise in expenses reflects the company’s expanded operations and investments.
Q3: According to the company’s consolidated life revenue account for the third quarter ending September 30, 2022, the Life Insurance Fund showed significant growth. The balance was 39,908.687 million taka as of September 30, 2022, compared to 38,745.166 million taka on September 30, 2021, marking a net increase of 1,163.521 million taka.
Net premiums collected during July-September 2022 were 1,751.352 million taka, up from 1,665.650 million taka in the same period in 2021, indicating an increase in premium income.
Total expenses for July-September 2022 were 2,289.415 million taka, down from 2,493.825 million taka during the same period in 2021. This decrease in expenses reflects improved cost management.
Dhaka Stock Exchange DSE, Bourse on the first working day of the week, 19th May, ended with a drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
409 crore 18 lakh taka shares were traded on this day. 267 crore 60 lakh less tradings were done in DSE today compared to the previous workday, 16th May , Shares worth Tk 676 crores 79 lakh shares were traded last time, Thursday
The benchmark DSEX lost 86.13 points or 5,431 The Shariah-based index DSES dropped 20.52 points or 1,191, and the blue-chip index DS30 decreased by 25.55 points or 1,948.
Of the issues traded, 22 advanced, 347 declined and 19 remained unchanged.
Shepherd Industries PLC ranked top gainer on DSE, the share price increased by Tk 1.30 paisa or 9.35 percent. On this day, the share was last traded at Tk 15.20 paisa.
Desh General Insurance Company Limited ranked top loser on the DSE, the share price dropped by Tk 0.90 paisa or 3.00 percent. On this day, the share was last traded at Tk 29.10 paisa.
DSE topped on trade is Beach Hatchery Limited 18 crore 94 lakh takas of company shares have been traded.
A total of 53 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 32 lakh 72 thousand 812 shares of the companies were traded. The financial value of which is 41 crore 57 lakh taka
