Stocks
Asian shares slip as China says economy slowed further
Asian shares were mostly lower on Tuesday (17 January) after China reported its economy expanded at a 3 percent pace last year, less than half 2021′s rate.
Tokyo advanced while most other regional markets declined. Investors are watching to see if Japan’s central bank will alter its longstanding policy of keeping its key interest rate at minus 0.1 percent when it wraps up a policy meeting on Wednesday.
US futures fell after markets on Wall Street were closed Monday for a holiday, while oil prices were mixed.
The Chinese economy is gradually reviving after antivirus controls and a real estate slump dragged on growth last year. Restrictions that kept millions of people at home have been lifted, but a surge in Covid-19 infections is keeping consumers cautious about travel, shopping and dining out.
Data reported Tuesday showed growth of the world’s second-largest economy slid to 2.9 percent over a year earlier in December from the previous months 3.9 percent.
The government has begun to soften a crackdown on technology industries and to roll out more support for private businesses and the property sector, seeking to spur a recovery.
“The good news is that there are now signs of stabilization, as policy support doled out towards the end of 2022 is showing up in the relative resilience of infrastructure investment and credit growth,” Louise Loo of Oxford Economics said in a research note.
U.S. Treasury Secretary Janet Yellen was set to meet with her Chinese counterpart in Switzerland on Wednesday. Yellen and Chinese Vice Premier Liu He plan to discuss economic developments between the U.S. and China at a time of persisting tensions over trade and technology.
Hong Kong’s Hang Seng index lost 1 percent to 21,528.84 and the Shanghai Composite index edged 0.3 percent lower to 3,219.68. In Seoul, the Kospi declined 0.5 percent, to 2,388.35. Australia’s S&P/ASX 200 gave up 0.2 percent to 7,376.70.
Tokyo’s Nikkei 225 index gained 1.2 percent to 26,137.15. Bangkok’s benchmark was nearly unchanged.
On Monday, European markets gained after Germany reported inflation cooled in December. The DAX in Frankfurt gained 0.3 percent to 15,134.04 and the CAC 40 in Paris also added 0.3 percent to 7,043.31. Britain’s FTSE 100 edged 0.2 percent higher to 7,860.07.
The year has begun with optimism that cooling inflation could lead the Federal Reserve to ease off soon on sharp interest rate hikes that slow the economy and risk causing a recession. They also hurt investment prices.
Slowing segments of the U.S. economy and still-high inflation are dragging on profits for companies, which are one of the main levers that set stock prices. Friday marked the first big day for companies in the S&P 500 to show how they fared during the final three months of 2022, with a bevy of banks at the head of the line.
One big worry on Wall Street is that S&P 500 companies may report a drop in profits for the fourth quarter from a year earlier.
If the economy does fall into a recession, as many investors expect, sharper drops for profits may be set for 2023. That’s why the forecasts for upcoming earnings that CEOs give this reporting season may be even more important than their latest results.
In other trading Tuesday, U.S. benchmark crude oil lost 53 cents to $79.33 per barrel in electronic trading on the New York Mercantile Exchange. It gained $1.47 to $79.86 per barrel on Monday.
Brent crude, the pricing standard for international trading, picked up 24 cents to $84.70 per barrel in London.
The dollar was trading at 128.70 Japanese yen, up from 128.53 yen. The euro rose to $1.0830 from $1.0822.
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.
