Stocks
Asian markets boosted by Fed chief’s rate cut talk
Most Asian equities rose with the yen on Monday after US Federal Reserve boss Jerome Powell said “the time has come” to start cutting interest rates, lining up the central bank for a move as soon as next month.
The comments provided investors with an extra boost and helped put the market turmoil earlier in August behind them, though analysts warned to be on guard for any unexpected data that could burst the optimistic bubble.
Traders were also keeping an eye on developments in the Middle East after a lare-up in hostilities between Israel and Hezbollah that fanned fears of an escalation in the region.
In a much-anticipated speech to a symposium of central bankers at Jackson Hole, Wyoming, Powell said: “The time has come for policy to adjust.
“The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks,” he added.
“My confidence has grown that inflation is on a sustainable path back to two percent,” he said, referring to the central bank’s target.
Equities had already been on the rise on expectations the Fed would start cutting from two-decade highs next month, with debate now mostly centred on how big the reduction would be and how many more would follow.
Traders are betting on around one percentage point of reductions before the end of the year.
“Importantly there was a notable absence of caveats such as ‘gradual/gradualism’ as used by other Fed officials,” said National Australia Bank’s Tapas Strickland.
“The absence of caveats is likely what excited markets.”
The remarks helped push all three main indexes more than one percent higher in New York.
Most of Asia followed suit on Monday, with Hong Kong, Sydney, Singapore, Taipei and Wellington all in the green.
However, there were losses in Tokyo, Shanghai and Seoul.
“Yep, the Fed is ready to start slicing those interest rates. With the labour market cooling off and inflation finally inching closer to that elusive two percent target, Powell served up exactly what Wall Street had been drooling over,” said independent analyst Stephen Innes.
“Right now, investors are in dreamland — having their cake, eating it too The dream scenario? A series of rate cuts that somehow dodge the recession bullet.”
However, he warned that “the market’s next big move hinges on whether the latest US data points to a gentle slowdown or the first tremors of a full- blown recession. The stakes? They couldn’t be higher”.
Attention will now turn to the release of a string of economic figures, including US jobs, inflation and personal income.
Tokyo stocks were weighed by a strengthening yen, which rallied Friday on Powell’s comments and an indication from Bank of Japan chief Kazuo Ueda that it could hike rates again if inflation and the economy performed as expected.
The yen was sitting at less than 144 per dollar in early trade.
Traders were keeping a nervous eye on the Middle East after Israel launched air strikes into Lebanon on Sunday, saying it had destroyed “thousands” of Hezbollah rocket launchers and thwarted a major attack.
The Lebanese group said it had unleashed a drone and rocket barrage of its own.
The news sent the price of oil higher, though the gains were tempered by hopes that the crisis will not develop into a full-blown war taking in other regional powers including Iran.
For its part, Hezbollah said its operation “was completed and accomplished”.
Both main contracts rose Monday, extending Friday’s more than two percent rally that came on the back of Powell’s interest rate comments.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: DOWN 1.1 percent at 37,944.68 (break)
Hong Kong – Hang Seng Index: UP 0.9 percent at 17,775.80
Shanghai – Composite: DOWN 0.1 percent at 2,850.49
Dollar/yen: DOWN at 143.62 yen from 144.34 yen on Friday
Euro/dollar: UP at $1.1199 from $1.1193
Pound/dollar: UP at $1.3219 from $1.3209
Euro/pound: UP at 84.72 pence from 84.70 pence
West Texas Intermediate: UP 0.8 percent at $75.39 per barrel
Brent North Sea Crude: UP 0.6 percent at $78.65 per barrel
New York – Dow: UP 1.1 percent at 41,175.08 (close)
London – FTSE 100: UP 0.5 percent at 8,327.78 (close)
Dhaka Stock Market DSE, Bourse on the last working day of the week, 12th September, ended with a mixed performance in Indices and hike in Turnover from the previous working session. This information is known from DSE sources.
733 crore 39 lakh taka shares were traded on this day. 108 crore 23 lakh more tradings were done in DSE today compared to the previous workday, 11th September, Shares worth Tk 625 crores 15 lakh shares were traded last time, Wednesday.
The benchmark DSEX added 12.55 points or 5,726 The Shariah-based index DSES gained 4.76 points or 1,245 and the blue-chip index DS30 decreased by 7.05 points or 2,100.
Of the issues traded, 158 advanced, 181 declined and 58 remained unchanged.
Paper Processing & Packaging Limited ranked top gainer on DSE, the share price increased by Tk 12.80 paisa or 9.98 percent. On this day, the share was last traded at Tk 141.00 paisa.
Confidence Cement PLC ranked top loser on the DSE, the share price dropped by Tk -5.00 paisa or 6.82 percent. On this day, the share was last traded at Tk 68.30 paisa.
DSE topped on trade is Linde Bangladesh Limited 61 crore 65 lakh takas of company shares have been traded.
A total of 31 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 41 lakh 19 thousand 413 shares of the companies were traded. The financial value of which is 54 crore 78 lakh taka.
The Financial Institutions Division (FID) under the Ministry of Finance has decided to terminate ATM Tariquzzaman from his role as commissioner at the Bangladesh Securities and Exchange Commission (BSEC). According to an official FID order issued on Wednesday (11 September), he will receive a three-month notice before his dismissal, with his tenure ending on 10 December.
Tariquzzaman had only been appointed as BSEC commissioner on 8 May, following his resignation as Executive Director of the commission. In September 2023, he briefly served as Managing Director of Dhaka Stock Exchange (DSE) before stepping down to take the BSEC role.
The development comes in the wake of the fall of the Hasina-led government on 5 August, after which BSEC Chairman Shibli Rubayat Ul Islam, along with Commissioners Shaikh Shamsuddin Ahmed and Rubana Islam, resigned. However, Tariquzzaman and fellow Commissioner Mohsin Chowdhury chose not to relinquish their positions.
In response, the interim government appointed Khondoker Rashed Maqsood as BSEC chairman, with Ali Akbar and Farzana Lalarukh joining as commissioners.
The political transition also triggered upheaval in the Dhaka Stock Exchange. According to BSEC and DSE sources, seven independent directors of the DSE resigned following the fall of the previous government, creating legal complications for the commission in selecting replacements. The BSEC disregarded the DSE’s recommendations and on 1 September appointed independent directors unilaterally, sparking discontent among DSE shareholders who viewed the decision as arbitrary.
Sources indicated that ATM Tariquzzaman had played a significant role in BSEC’s decision-making, which included appointing independent directors KAM Majedur Rahman, Helal Uddin, and Nahid Hossain—all of whom faced allegations of conflicts of interest. Majedur and Helal were accused of having ties to brokerage houses, while Nahid Hossain, as Additional Secretary of the Financial Institutions Division, was deemed ineligible under the law to serve as an independent director. Majedur Rahman has since refused the position.
The DSE Brokers Association expressed concerns in a letter dated 5 September, accusing the BSEC of making “anti-investor, non-transparent, and self-serving” decisions, leading to instability in the capital market. The association called for a revision of the selection process for appointing independent directors, urging the invocation of Clause 24 of the Demutualisation Act 2013 to form a Nomination and Remuneration Committee with four elected DSE directors to recommend candidates for BSEC’s approval.
Dhaka Stock Market DSE, Bourse on the fourth working day of the week, 11th September, ended with a mixed performance in Indices and hike in Turnover from the previous working session. This information is known from DSE sources.
625 crore 15 lakh taka shares were traded on this day. 62 crore 43 lakh more tradings were done in DSE today compared to the previous workday, 10th September, Shares worth Tk 562 crores 72 lakh shares were traded last time, Wednesday.
The benchmark DSEX added 11.12 points or 5,713 The Shariah-based index DSES gained 5.56 points or 1,240 and the blue-chip index DS30 decreased by 6.92 points or 2,107.
Of the issues traded, 64 advanced, 289 declined and 44 remained unchanged.
Shinepukur Ceramics Limited ranked top gainer on DSE, the share price increased by Tk 1.60 paisa or 10.00 percent. On this day, the share was last traded at Tk 17.60 paisa.
Prime Textile Spinning Mills Limited ranked top loser on the DSE, the share price dropped by Tk 1.50 paisa or 9.32 percent. On this day, the share was last traded at Tk 14.80 paisa.
DSE topped on trade is Agni Systems Limited 32 crore takas of company shares have been traded.
A total of 33 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 10 lakh 62 thousand 781 shares of the companies were traded. The financial value of which is 36 crore 38 lakh taka.
