Stocks
Asian markets track Wall St record as US jobs fuel rate cut hopes
Asian markets extended a surge on Wall Street Thursday as another round of soft US jobs data ramped up bets on the Federal Reserve cutting interest rates this year.
Worries about the world’s top economy sparked by a below-par factory gauge earlier this week appear to have been superseded by renewed optimism that an extended period of elevated borrowing costs is finally kicking in.
Figures from payroll firm ADP on Wednesday showed private-sector hiring slowed far more than estimated in May.
That came a day after news that job openings had fallen more than expected and pointed to a softening labour market, a key goal of Fed officials along with falling inflation.
The data fanned hopes that the Fed can start to cut interest rates from their two-decade highs, and traders have priced in almost two before the end of 2024, with some pencilling in September for the first.
“Momentum continues as US data starts to weaken… possibly supporting earlier rate cuts from the Fed this year,” said Charu Chanana at Saxo.
Investors are now set up for the release of the crucial non-farm payrolls report, which is due Friday and should provide a clearer snapshot of the labour market and the US economy.
That comes ahead of next week’s Fed policy meeting, where it will also unveil its latest “dot plot” of rate expectations.
Its previous guidance — in March — was for three cuts but many are preparing for that to be whittled down in light of recent data showing inflation remains sticky and decision-makers’ reluctance to move too early.
“The ‘dots’ are likely to cluster around one or two interest rate cuts this year,” Capital Economics’ Stephen Brown said.
“Nevertheless, as inflation falls a bit faster than officials expect and (gross domestic product) growth disappoints, our base case remains that the Fed will cut in September.”
Optimism over a rate cut has been boosted by news that Canada’s central bank had done so on Wednesday, while the European Central Bank is expected to later on Thursday.
All three main indexes on Wall Street advanced, with the S&P 500 and Nasdaq hitting fresh records.
The rally in New York came on the back of a surge in tech titans including chip-making darling Nvidia, which became only the third US company in history to break $3 trillion in market capitalisation, after Apple and Microsoft.
Asian markets built on the gains, with Hong Kong, Tokyo, Shanghai, Sydney, Singapore, Taipei, Manila and Jakarta all enjoying buying interest.
Mumbai futures rose after Indian Prime Minister Narendra Modi formed a coalition government — having lost his majority in the country’s general election — raising hopes he will be able to push through economy-boosting measures.
Shares in India have swung wildly between big gains and losses this week after exit polls pointing to a landslide for Modi’s Bharatiya Janata Party (BJP) were proved wrong.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: UP 0.9 percent at 38,841.75 (break)
Hong Kong – Hang Seng Index: UP 1.0 percent at 18,616.78
Shanghai – Composite: UP 0.3 percent at 3,075.88
Dollar/yen: DOWN at 155.70 yen from 156.12 yen on Wednesday
Euro/dollar: UP at $1.0889 from $1.0873
Pound/dollar: UP at $1.2803 from $1.2789
Euro/pound: UP at 85.05 pence from 85.00 pence
West Texas Intermediate: UP 0.6 percent at $74.50 per barrel
Brent North Sea Crude: UP 0.4 percent at $78.74 per barrel
New York – Dow Jones: UP 0.3 at 38,807.33 (close)
London – FTSE 100: UP 0.2 percent at 8,246.95 (close)
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.
