Stocks
Asian markets track Wall St record ahead of Nvidia results, Fed minutes
Asian investors fought Wednesday to revive a recent rally across markets as they turned their focus on the release later in the day of earnings from US tech darling Nvidia.
Record closes for the S&P 500 and Nasdaq provided a little inspiration, even with few catalysts to drive buying, with minutes from the Federal Reserve’s May policy decision possibly giving an insight into officials’ thinking with regard to interest rates.
A slowdown in US inflation and China’s announcement last week of plans to support its crucial but battered property sector have helped propel equities but, with that euphoria petering out, traders are taking a breather.
The next major driver could be the results from Nvidia — the third-largest US company by market capitalisation — which is being seen as a gauge of overall market sentiment.
The chip-making giant’s stock price has rocketed in recent years — its shares are up around 90 percent in 2024 — with the high-end processors prized by firms looking to get ahead in the booming artificial intelligence sector.
However, there is a worry that the figures do not match sky-high expectations, which some observers say could spark a hefty sell-off, particularly among market-heavyweight tech firms.
After the previous day’s retreat, most Asian markets rose Wednesday, with Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta all in positive territory. Tokyo fell, however.
Investors are also looking forward to getting an eye on the minutes from the Fed’s May 1 rate decision, which will be pored over for an idea about the thought process as decision-makers considered three straight months of above-forecast consumer inflation data.
While the April reading on prices showed a slowdown, a number of central bank officials are reluctant to begin cutting too early.
Fed governor Christopher Waller said he wanted to see “several” months of additional data, while Atlanta boss Raphael Bostic warned that “one number is not a trend” and he did not see a reduction before the fourth quarter.
Bostic’s comments were echoed by his Cleveland and Boston counterparts Loretta Mester and Susan Collins.
“I think this is a moment or a period when patience really matters,” Collins said. “I think the data has been very mixed
“It’s going to take longer than I had previously thought.”
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: DOWN 0.6 percent at 38,719.35 (break)
Hong Kong – Hang Seng Index: UP 0.4 percent at 19,303.62
Shanghai – Composite: UP 0.2 percent at 3,164.06
Dollar/yen: UP at 156.24 yen from 156.18 yen on Tuesday
Euro/dollar: UP at $1.0862 from $1.0858
Pound/dollar: UP at $1.2722 from $1.2708
Euro/pound: DOWN at 85.39 from 85.41 pence
West Texas Intermediate: DOWN 0.7 percent at $78.08 per barrel
Brent North Sea Crude: DOWN 0.7 percent at $82.33 per barrel
New York – Dow: UP 0.2 percent at 39,872.99 (close)
London – FTSE 100: DOWN 0.1 percent at 8,416.45 (close)
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.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
