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)
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
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.
