Stocks
Asian stocks build on gains ahead of US inflation data
Asian stocks mostly rose again Tuesday as worries about a US recession that sent markets into turmoil last week eased ahead of key inflation data, while oil prices held gains on concerns about a broader war in the Middle East.
Tokyo’s Nikkei returned from a long weekend to lead the rally and briefly top the levels touched at the start of the month before last Monday’s rout, helped by a weaker yen and a Bank of Japan pledge not to hike interest rates further.
While the mood on trading floors has calmed since last week’s upheaval, investors remain cagey after a big miss on US jobs creation fanned concerns about the world’s top economy, while geopolitical concerns also remain a drag on sentiment.
And trade was cautious ahead of the release of US consumer and wholesale price figures this week that could play a role in the Federal Reserve’s monetary policy decision-making.
Observers warned that the inflation readings could cause big market moves in either direction, with a weaker-than-expected print adding to worries about the economy, while a strong reading could dent rate-cut bets.
The Fed is also walking a thin line between nurturing growth and trying to bring prices under control, with some saying recent soft data suggests officials have waited too long to cut.
“One of the major risks is the timing and magnitude of the Fed’s rate cuts,” said ACY Securities’ Luca Santos.
“If the Fed delays easing monetary policy, the US economy could risk entering a deeper slowdown, leading to a potential recession.
“Conversely, if the Fed cuts rates too aggressively, it might reignite inflationary pressures or create financial market instability. Balancing these risks will be crucial for maintaining economic stability.”
After a tepid day on Wall Street, Asian markets swung in and out of positive territory to extend a strong start to the week.
Tokyo rose more than two percent — and briefly broke above the August 2 closing price before last Monday’s plunge — while Hong Kong, Sydney, Singapore, Wellington, Manila and Jakarta also rose.
Shanghai, Seoul and Taipei dipped.
Oil prices ticked down but remain up about eight percent for the week owing to fears of a possible spiralling conflict in the Middle East and an escalation of tensions in major producer Russia.
The White House warned Monday that a “significant set of attacks” by Iran and its proxies against Israel was possible as soon as this week after top leaders of Hezbollah and Hamas were assassinated in late July.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: UP 2.2 percent at 35,785.55 (break)
Hong Kong – Hang Seng Index: UP 0.2 percent at 17,153.33
Shanghai – Composite: UP 0.1 percent at 2,860.62
Euro/dollar: UP at $1.0935 from $1.0931 on Monday
Pound/dollar: UP at $1.2771 from $1.2766
Dollar/yen: UP at 147.30 yen from 147.26 yen
Euro/pound: UP at 85.63 pence from 85.61 pence
West Texas Intermediate: DOWN 0.6 percent at $79.56 per barrel
Brent North Sea Crude: DOWN 0.6 percent at $81.80 per barrel
New York – Dow: DOWN 0.4 percent at 39,357.01 (close)
London – FTSE 100: UP 0.5 percent at 8,210.25 (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.
