Stocks
Asian markets slip as traders await US data, Nvidia release
Equity investors stepped cautiously Wednesday ahead of key US data and the release of earnings by tech titan Nvidia that could shine a light on demand for all things artificial intelligence after this year’s tech-led markets rally.
While a Federal Reserve interest rate cut next month is baked into prices, traders are also keenly awaiting next week’s crucial non-farm payrolls figures, which are seen as key to determining how big the central bank goes.
Traders remain largely upbeat, with August’s early rout — sparked by US recession fears and a Bank of Japan rate cut — in the rearview mirror and some markets within a whisker of records touched this year thanks to the tech-fuelled rally.
On Tuesday, the US Conference Board’s consumer confidence survey for August beat expectations and came in at its highest level since February.
The news had minimal impact on markets, with all three main indexes on Wall Street ending only slightly higher.
But Ray Attrill, of National Australia Bank, said: “The rebound in stock markets after the July crunch, lower gasoline prices and the heightened prospect of near-term interest rate cuts (reflected in lower mortgage rates) look to have overwhelmed the impact on confidence of softening labour market indicators.”
Now attention turns to the release of a series of US indicators, including gross domestic product growth, the Fed’s favoured gauge of inflation, jobless claims and personal income, which will provide fresh insight into the state of the world’s top economy.
But the headliner is the earnings report from Nvidia, which is due for release after the US market closes.
The company has soared around 16 percent this year — and about 1,000 percent from its low in October 2022 — on the back of a global race to jump on the AI bandwagon.
Nvidia has seen profits soar thanks to demand for its powerful GPU chips, which have set the industry’s pace in pushing new advances in AI, pushing its stock up about 160 percent this year.
That has made it a key indicator for the sector, but analysts warned that if it fails to deliver on its earnings, or just doesn’t top forecasts, it could spark a sell-off in the sector.
“This is the one that could either lift all boats or sink the entire fleet,” said analyst Stephen Innes in his Dark Side Of The Boom newsletter.
“With Nvidia holding a hefty seven percent of the market cap weight, directional bets were scarce — no one wants to go all-in when the 800-pound gorilla is about to shake the room.
“Nvidia’s influence is undeniable, making it nearly impossible to take your eyes off it.”
After Wall Street’s tepid performance, there was little buying inspiration among Asian traders.
Hong Kong, Tokyo, Shanghai, Sydney, Singapore, Seoul, Taipei, Wellington and Jakarta all dropped.
Oil prices edged higher after big swings Monday and Tuesday as dealers kept tabs on developments in the Middle East crisis and Libya, where the eastern-based administration said it would close fields under its control and suspend production and exports “until further notice”.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: DOWN 0.2 percent at 38,199.52 (break)
Hong Kong – Hang Seng Index: DOWN 1.0 percent at 17,696.30
Shanghai – Composite: DOWN 0.2 percent at 2,843.77
Dollar/yen: UP at 144.33 yen from 143.96 yen on Tuesday
Euro/dollar: DOWN at $1.1173 from $1.1185
Pound/dollar: DOWN at $1.3250 from $1.3261
Euro/pound: DOWN at 84.32 pence from 84.34 pence
West Texas Intermediate: UP 0.5 percent at $75.91 per barrel
Brent North Sea Crude: UP 0.5 percent at $79.97 per barrel
New York – Dow: FLAT at 41,250.50 (close)
London – FTSE 100: UP 0.2 percent at 8,345.46 (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.
