Stocks
Asian stocks extend recovery, yen weakens as some calm returns
Asian stocks rose again Wednesday as some stability returned after a volatile start to the week, though Tokyo saw more big swings and the yen weakened further as analysts warned more upheaval could be in store.
After Monday’s collapse that saw trillions of dollars wiped off valuations globally, traders returned to pick up bargains on Tuesday, with Japan’s Nikkei bouncing back from a 12.4 percent loss to enjoy a more than 10 percent gain.
The recovery continued on Wall Street, with some observers saying the selling may have been a little overdone.
And Asia extended the rally, with Bank of Japan deputy governor Shinichi Uchida helping to soothe anxiety in a dovish speech in which he said officials would maintain their ultra-loose policies while there were ructions in markets.
“As for the future conduct of monetary policy, in a nutshell, I believe that the Bank needs to maintain monetary easing with the current policy interest rate for the time being, with developments in financial and capital markets at home and abroad being extremely volatile,” Uchida said in a speech.
He added that the yen has in recent days “appreciated significantly against the US dollar, since large positions that had been built up on a weaker yen are being unwound”.
“Moreover, partly due to the correction of the yen’s depreciation, stock prices in Japan have declined to a greater extent than other economies.”
Investors had been sent scurrying after data released on Friday showed that the US economy created far fewer jobs than expected in July, fanning recession fears.
That came soon after the Federal Reserve hinted at a September interest rate cut, hours after the Bank of Japan hiked them for the second time in 17 years — sending shivers through financial markets.
Uchida’s comments were much welcomed by investors.
Tokyo ended the morning more than two percent higher, having fallen more than two percent soon after the open, while Hong Kong, Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei, Manila and Jakarta were also in positive territory.
The yen also weakened further to more than 146 per dollar, having hit less than 142 Monday, its strongest in six months.
The stronger Japanese currency had thrown a spanner into a common trading strategy of borrowing at low interest rates in Japan and investing in high yielding assets elsewhere, such as US tech stocks.
With Fed and BoJ rates going in different directions this so-called yen carry trade saw many investors dump assets to cover their positions, magnifying the rout.
While there is a relative calm on trading floors at the moment, observers warned investors to remain wary.
“Turnaround Tuesday truly lived up to its name with the dramatic surge in Japanese stocks,” said analyst Stephen Innes, adding that the previous two days had been “a real financial rollercoaster”.
“This volatility is typical of more prolonged and chaotic market downturns, which could prompt investors to adopt a cautious stance, hold on tight, and keep the antacids ready,” he said in his Dark Side Of The Boom newsletter.
“Brace yourself for some rapid swings in both directions — the market could soon resemble a teeter-totter on a caffeine high.”
And Asset Management One said in a commentary: “It is important to note that the current situation may continue for some time, as it did during the recovery from the 1987 Black Monday.
“The increased market volatility shouldn’t be ignored.”
– Key figures around 0300 GMT –
Tokyo – Nikkei 225: UP 2.3 percent at 35,464.61 (break)
Hong Kong – Hang Seng Index: UP 1.3 percent at 16,858.87
Shanghai – Composite: UP 0.2 percent at 2,873.16
Dollar/yen: UP at 146.50 yen from 144.68 yen on Tuesday
Euro/dollar: DOWN at $1.0917 from $1.0933
Pound/dollar: UP at $1.2708 from $1.2691
Euro/pound: DOWN at 85.91 pence from 86.12 pence
West Texas Intermediate: DOWN 0.2 percent at $73.06 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $76.41 per barrel
New York – Dow: UP 0.8 percent at 38,997.66 (close)
London – FTSE 100: UP 0.2 percent at 8,026.69 (close)
Major General Mohammad Quamruzzaman (retd) has stepped down from his role as an independent director of the board of the Dhaka Stock Exchange, citing personal reasons.
He also served as a member of the DSE’s Nomination and Remuneration Committee (NRC).
Quamruzzaman was appointed to the DSE board on 1 September 2024, following the fall of the Awami League-led government. After serving for nearly one year and nine months, he submitted his resignation on Saturday (24 May).
Speaking to Quamruzzaman confirmed his resignation, saying, “Yes, I have resigned as an independent director for personal reasons.”
Md Shafiqur Rahman, Deputy General Manager of Public Relations and Publications at the DSE, said Quamruzzaman submitted a resignation letter mentioning personal reasons behind his decision.
“The DSE board will now take a decision regarding the resignation,” Shafiqur Rahman said.
He also indicated that Quamruzzaman may be planning to join another company, which could have influenced his decision to resign.
Earlier, another independent director of the DSE board, Shahnaz Sultana, also resigned from her position. She was likewise a member of the NRC.
According to the DSE annual report, Shahnaz Sultana is the CEO and Chief Consultant of FINS Alliance Risk Advisory and Consultancy and has served as the Founder and Chairperson of the WE Global Women Foundation since 2020.
The Bangladesh Securities and Exchange Commission (BSEC) has today approved appointment of Ms. Nuzhat Anwar as the new Managing Director of Dhaka Stock Exchange PLC. (DSE).
Ms. Nuzhat Anwar brings over two decades of experience in financial markets, banking, and development finance. Prior to her appointment, she worked at the International Finance Corporation (IFC), the private sector arm of the World Bank Group, where she held multiple senior leadership roles across Africa and South Asia. Her positions included Resident Representative for Liberia and Sierra Leone, Senior Country Officer for Bangladesh covering Bangladesh, Bhutan, and Nepal, and acting Cluster Manager during the COVID-19 pandemic and the subsequent transition period.
Ms. Anwar also served as an IFC Country Officer in Botswana and Namibia, where she played a key role in establishing IFC’s presence in Gaborone and advancing a sustainable investment program, including IFC’s first investment in Botswana. She offers deep expertise in capital management, treasury and liquidity, transaction services, portfolio optimization, and market advocacy. Earlier in her career, she spent 16 years with Citibank Bangladesh and Standard Chartered Bank Bangladesh in various senior management roles.
Ms. Anwar holds a Master’s degree in Commerce (Finance) from the University of Dhaka.
On her appointment as the Managing Director of DSE, the Chairman of the Board of DSE Mr. Mominul Islam said, “We are pleased to receive the approval of BSEC for appointment of Ms. Anwar as the new Managing Director. Over the last one year the NRC and Board of have worked hard to recruit a competent leader as the MD of DSE. We are confident that Ms. Anwar, with her excellent leadership trait, vast experience in the financial sector in home and abroad and deep passion for transformation in the Capital Market of the Country, is the right candidate to lead DSE in the days ahead. Now, we will complete the internal processes to onboard Ms. Anwar at soonest.”
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
