Stocks
Global Markets Decline as Hopes for Early Rate Cuts Diminish, Slows China’s Economy
Asian markets faced further declines on Wednesday as expectations for an immediate interest rate cut by major central banks faded. The buoyancy that marked the end of 2023 has been replaced by cautious sentiment, with the US Federal Reserve signaling a reluctance for a first-quarter dovish pivot due to persistent inflation and resilient labor markets. Fed governor Christopher Waller’s remarks, though expressing confidence in reaching a sustainable inflation level, emphasized a methodical approach to rate cuts, causing uncertainty in the markets.
Fed Governor Waller Points to Potential Rate Cut, Cautions Against Hastiness
Fed governor Christopher Waller, known for his dovish stance, suggested on Tuesday that the central bank could cut borrowing costs this year, provided inflation remains in check. However, he emphasized a deliberate and careful approach to rate reductions, stating that lowering rates should be done methodically. Waller’s comments followed recent data and signals from the Fed, indicating a preference for maintaining high rates to combat inflation. This tempered expectations for an early interest rate cut and impacted global market sentiment.
Global Economic Recovery Faces Headwinds Amid Rising Geopolitical Tensions
Rising tensions in the Middle East and Eastern Europe, coupled with the persistent US-China trade dispute, are contributing to concerns about the fragility of the global economic recovery. Investors are apprehensive that geopolitical uncertainties could potentially disrupt the ongoing economic rebound. The combination of these factors has added a layer of caution to the optimism seen at the close of 2023.
China’s GDP Growth Hits Three-Decade Low, Adding Pressure for Stimulus
China’s economy recorded its slowest growth in over three decades, expanding by 5.2% in the previous year. The data, while in line with expectations, underscored the impact of a property crisis, subdued consumption, and global challenges on the world’s second-largest economy. Calls for Beijing to implement substantial stimulus measures to boost growth and address the property sector’s debt crisis have intensified. Premier Li Qiang, however, asserted that the growth was achieved without massive stimulus in a speech at the World Economic Forum in Davos.
Market Reactions: Asian and Global Markets Slide Amid Rate Cut Uncertainty
Equity markets across Asia, including Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Wellington, Jakarta, and Manila, experienced declines as investors reacted to the uncertainty surrounding interest rate cuts. The negative sentiment spilled over to European markets and contributed to losses in Wall Street indexes. Tokyo, however, bucked the trend and resumed its rally after a brief drop, fueled by a weaker yen and positive inflation figures.
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.
