Stocks
Asian Markets Rally Amid Rate Cut Hopes, Geopolitical Tensions
Asian markets experienced an upswing on Monday as traders assessed US inflation data, renewing optimism for an imminent interest rate reduction. However, gains were tempered by geopolitical concerns following recent joint US-UK strikes on Huthi targets in Yemen.
These airstrikes, targeting Iran-backed rebels, were a response to their threats of further attacks on Red Sea shipping, mirroring similar actions by Western forces on Friday. The developments triggered a four percent surge in oil prices on Friday, though gains were later trimmed as traders observed an uptick in non-OPEC production and indications of a slowing global economy. Both major oil contracts exhibited fluctuations on Monday.
Against the backdrop of these events, apprehensions have risen that the crisis, coupled with Israel’s ongoing conflict with Hamas in Gaza, might escalate into a regional conflict, potentially disrupting trade routes and propelling crude oil prices beyond $100.
Bloomberg reported that over 350 oil tanker owners had temporarily halted journeys through the Red Sea, with more likely to follow suit as Western forces caution ships to stay clear of the region.
Concerns have emerged that a broader conflict could push up energy prices, reigniting fears of inflation. This comes after a period of declining inflation last year, prompting central banks to contemplate interest rate cuts.
However, Friday’s data revealing a third consecutive monthly decline in the US producer price index, the best streak since 2020, injected optimism into expectations for a rate cut in the first quarter.
The producer price index figures provided a boost after a higher-than-expected rise in the consumer price index, along with robust job numbers and Federal Reserve minutes indicating a commitment to keeping rates elevated.
As a result, Treasury yields dropped, with traders factoring in an 80 percent likelihood that monetary policymakers would cut rates as early as March, compared to 62 percent the previous week. The market is anticipating approximately 170 basis points in reductions for 2024.
On Wall Street, the three main indexes closed slightly higher on Friday, with financials being a drag due to corporate reports warning of lower interest income this year as Fed borrowing costs decrease.
In the Asian markets, Tokyo continued its upward trajectory from last week, where the Nikkei surpassed 35,000 for the first time since 1990, buoyed by renewed inflation and a weaker yen that benefits exporters. Hong Kong and Shanghai also experienced gains, following China’s decision to refrain from cutting short-term interest rates while injecting billions of dollars into financial markets.
In Taipei, stocks rose as pro-sovereignty candidate Lai Ching-te won Taiwan’s presidential election. However, Lai’s Democratic Progressive Party (DPP) lost its legislative majority, signaling potential compromises with smaller parties, including the pro-China Kuomintang.
The modest winning margin for Lai and the legislative impasse suggest constraints on pursuing radical agendas, especially concerning Taiwan’s independence, according to Redmond Wong of Saxo Markets. He noted that while mainland China has expressed dissatisfaction, measured reactions may alleviate immediate concerns of heightened cross-strait tensions.
Dhaka Stock Exchange DSE, Bourse on the last working day of the week, 16th May, ended with a drop in Indices and hike in Turnover from the previous working session. This information is known from DSE sources.
676 crore 79 lakh taka shares were traded on this day. 150 crore 46 lakh more tradings were done in DSE today compared to the previous workday, 15th May , Shares worth Tk 526 crores 33 lakh shares were traded last time, Wednesday.
The benchmark DSEX lost 9.98 points or 5,517 The Shariah-based index DSES dropped 0.80 points or 1,212, and the blue-chip index DS30 decreased by 3.79 points or 1,973.
Of the issues traded, 122 advanced, 215 declined and 57 remained unchanged.
MBL 1st Mutual Fund ranked top gainer on DSE, the share price increased by Tk 0.50 paisa or 10 percent. On this day, the share was last traded at Tk 5.50 paisa.
Sonali Paper & Board Mills Limited ranked top loser on the DSE, the share price dropped by Tk 11.80 paisa or 3.00 percent. On this day, the share was last traded at Tk 382.50 paisa.
DSE topped on trade is Asiatic Laboratories Limited 46 crore 23 lakh takas of company shares have been traded.
A total of 43 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 3 crore 22 lakh 1 thousand 792 shares of the companies were traded. The financial value of which is 49 crore 85 lakh taka
Dhaka Stock Exchange DSE, Bourse on the fourth working day of the week, 15th May, ended with a drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
526 crore 33 lakh taka shares were traded on this day. 138 crore 3 lakh less tradings were done in DSE today compared to the previous workday, 14th May , Shares worth Tk 664 crores 36 lakh shares were traded last time, Tuesday.
The benchmark DSEX lost 58.22 points or 5,527 The Shariah-based index DSES dropped 12.79 points or 1,212, and the blue-chip index DS30 decreased by 14.14 points or 1,977.
Of the issues traded, 61 advanced, 301 declined and 33 remained unchanged.
Reliance One the first scheme of Reliance Insurance Mutual Fund ranked top gainer on DSE, the share price increased by Tk 1.50 paisa or 8.77 percent. On this day, the share was last traded at Tk 18.60 paisa.
Bay Leasing & Investment Limited ranked top loser on the DSE, the share price dropped by Tk 0.30 paisa or 3.00 percent. On this day, the share was last traded at Tk 9.70 paisa.
DSE topped on trade is Alif Industries Limited 19 crore 21 lakh takas of company shares have been traded.
A total of 45 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 68 lakh 31 thousand 91 shares of the companies were traded. The financial value of which is 37 crore 38 lakh taka
Dhaka Stock Exchange DSE, Bourse on the third working day of the week, 14th May, ended with a drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
664 crore 36 lakh taka shares were traded on this day. 17 crore 86 lakh less tradings were done in DSE today compared to the previous workday, 9th May , Shares worth Tk 968 crores 2 lakh shares were traded last time, Monday.
The benchmark DSEX lost 81.14 points or 5,585 The Shariah-based index DSES dropped 15.76 points or 1,225, and the blue-chip index DS30 decreased by 26.04 points or 1,991.
Of the issues traded, 31 advanced, 343 declined and 25 remained unchanged.
Reliance One the first scheme of Reliance Insurance Mutual Fund ranked top gainer on DSE, the share price increased by Tk 1.50 paisa or 9.55 percent. On this day, the share was last traded at Tk 17.10 paisa.
Union Insurance Company Limited ranked top loser on the DSE, the share price dropped by Tk 4.00 paisa or 9.32 percent. On this day, the share was last traded at Tk 38.90 paisa.
DSE topped on trade is eGeneration Limited 28 crore 18 lakh takas of company shares have been traded.
A total of 45 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 74 lakh 95 thousand 900 shares of the companies were traded. The financial value of which is 34 crore 92 lakh taka
