Stocks
Hong Kong, Shanghai rally on China stimulus on mixed day for markets
Hong Kong and Shanghai stocks rallied Tuesday after China unveiled fresh stimulus measures as the country’s leaders struggle to kickstart growth in the world’s number two economy.
After a string of weak data that has fanned worries about the financial health of the country and led to calls for more help to boost growth, the central bank said it would make it easier for lenders and lower a key interest rate.
The decision came as traders were already upbeat after the Federal Reserve last week lowered borrowing costs for the first time since 2020 and indicated more were in the pipeline through to 2026.
China’s economy, the world’s second-largest, has yet to achieve a highly anticipated post-pandemic recovery as it is battered by a prolonged property sector debt crisis, continued deflationary pressure and high unemployment.
While Beijing has resisted calls to unveil a so-called bazooka stimulus similar to that seen during the global financial crisis, it has pushed through a series of piecemeal measures that appear to have done little to turn things around.
People’s Bank of China chief Pan Gongsheng told a news conference that “the reserve requirement ratio will be cut by 0.5 percentage points in the near future to provide long-term liquidity to the financial market of about one trillion yuan ($141.7 billion)”.
It will also “lower the interest rates of existing mortgage loans and unify the down payment ratios for mortgage loans”, he added.
Hong Kong stocks jumped more than two percent and Shanghai was up around 0.8 percent.
There were also gains in Tokyo as dealers returned from a long weekend, while Singapore and Manila also rose, but Sydney, Seoul, Taipei and Wellington retreated.
The advances came after a positive day on Wall Street, where the Dow and S&P 500 ended at new record highs.
Traders are awaiting the release Friday of the personal consumption expenditures index — the Fed’s preferred inflation metric — hoping for an idea about its next rate move.
After Wednesday’s bumper 50-basis-point cut, debate is now swirling about how big monetary policymakers will go at their next meeting.
Minneapolis Fed boss Neel Kashkari said he was for another big reduction owing to weakness in the labour market, while his Chicago counterpart Austan Goolsbee added that slowing jobs growth would likely mean there were many more cuts to come.
Atlanta Fed chief Raphael Bostic said he wanted to base his decision on incoming data.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: UP 0.7 percent to 37,974.98 (break)
Hong Kong – Hang Seng Index: UP 2.3 percent to 18,673.74
Shanghai – Composite: UP 0.8 percent to 2,770.82
Euro/dollar: DOWN at $1.1107 from $1.1113 on Monday
Pound/dollar: UP at $1.3349 from $1.3345
Dollar/yen: UP at 143.66 yen from 143.57 yen
Euro/pound: DOWN at 83.20 pence from 83.27 pence
West Texas Intermediate: UP 0.6 percent at $70.80 per barrel
Brent North Sea Crude: UP 0.6 percent at $74.31 per barrel
New York – Dow: UP 0.2 percent at 42,124.65 points (close)
London – FTSE 100: UP 0.4 percent at 8,259.71 (close)
The Bangladesh Securities and Exchange Commission (BSEC) has directed the Dhaka Stock Exchange (DSE) to investigate the abnormal rise in the share price and trading volume of Islami Bank Bangladesh PLC. The regulatory body issued this instruction following a noticeable and suspicious surge in the bank’s stock price.
On Wednesday, September 25, BSEC sent a letter to DSE’s Chief Regulatory Officer, instructing an immediate investigation into the matter.
The letter highlighted that the recent spike in Islami Bank’s share price and trading activity is concerning and could indicate market manipulation or other irregularities. BSEC has asked DSE to examine potential reasons behind this unusual increase, such as market manipulation, insider trading, or other forms of market abuse, and submit a detailed investigation report to BSEC’s Surveillance Department within 30 working days.
The letter also stated that if any suspicious transactions during the investigation are found to have violated the Securities and Exchange Commission (Stock Dealer, Stock Broker, and Authorized Representative) Regulations 2000—particularly codes of conduct 6, 8, and rule 11—the relevant AR/Compliance Officer/CEO should be immediately informed.
Market analysis shows that between August 6 and September 25, the share price of the listed company rose from BDT 32.60 to BDT 70.40, marking a jump of BDT 37.80 or 115.95%. This increase is seen as abnormal and possibly the result of manipulation, according to the commission.
The Dhaka Stock Exchange (DSE) has downgraded 27 publicly listed companies from their current categories to the ‘Z’ category, effective from Thursday, September 26. This move impacts companies previously classified under the ‘A’ and ‘B’ categories, marking a significant shift for these firms due to their poor performance.
According to DSE sources, starting Thursday, these companies’ shares will only be traded under the ‘Z’ category.
The companies that have been reclassified are National Bank, BD Thai, Central Pharma, Phoenix Finance, Olympic Accessories, Western Marine Shipyard, National Tubes, Miracle Industries, GSP Finance, FAR Chemical Industries, Anlima Yarn, Atlas Bangladesh, Bay Leasing, Libra Infusion, Lub-Rref, SK Trims, Shepherd Industries, VFS Threads Dyeing, Energypac, Fortune Shoes, Pacific Denims, Khulna Printing, Advent Pharma, Desh Garments, Beach Hatchery, Indo-Bangla Pharma, and Associated Oxygen.
These firms are being moved to the ‘Z’ category due to their underperformance in various financial and operational metrics, raising concerns among investors and market regulators. The reclassification reflects their current inability to meet the standards required to remain in the ‘A’ or ‘B’ categories.
The ‘Z’ category typically includes companies that have failed to hold annual general meetings (AGMs), declared no dividends for a prolonged period, or are financially unstable, according to DSE guidelines.
Dhaka Stock Market DSE, Bourse on the fourth working day of the week, 24th September, ended with a mixed performance in Indices and hike in Turnover from the previous working session. This information is known from DSE sources.
796 crore 93 lakh taka shares were traded on this day. 78 crore 30 lakh more tradings were done in DSE today compared to the previous workday, 24th September, Shares worth Tk 718 crores 63 lakh shares were traded last time, Tuesday.
The benchmark DSEX dropped 41.45 points or 5,736 The Shariah-based index DSES gained 5.07 point or 1,293 and the blue-chip index DS30 decreased by 14.40 points or 2,095.
Of the issues traded, 28 advanced, 355 declined and 14 remained unchanged.
Islami Bank Bangladesh PLC ranked top gainer on DSE, the share price increased by Tk 6.40 paisa or 10.00 percent. On this day, the share was last traded at Tk 70.40 paisa.
Fu-wang Food Limited ranked top loser on the DSE, the share price dropped by Tk 1.70 paisa or 9.94 percent. On this day, the share was last traded at Tk 15.40 paisa.
DSE topped on trade is BRAC Bank PLC 113 crore 82 lakh takas of company shares have been traded.
A total of 35 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 36 lakh 85 thousand 508 shares of the companies were traded. The financial value of which is 10 crore 98 lakh taka
