Stocks
Asian Markets Mixed Amid Wall Street Slump, Investors Seek Catalysts
Asian Markets showed a mixed performance on Wednesday, following a negative trend on Wall Street. Observers are cautioning that the recent surge in equities might be losing momentum, and investors are eagerly awaiting fresh catalysts to reignite buying.
The subdued market activity across the region this week precedes key data releases from the US, including the Federal Reserve’s preferred measure of inflation and the upcoming corporate earnings season. Although the central bank hinted at three interest rate cuts this year, some investors are skeptical due to recent indicators and statements from policymakers.
Recent figures on February’s durable goods sales, released on Tuesday, indicated a healthy state of the world’s largest economy and a slight improvement in consumer confidence, albeit with less optimism about the future.
Upcoming releases include jobless claims, economic growth readings, and the crucial Personal Consumption Expenditures (PCE) index on Friday. Analysts anticipate a modest uptick from January in the PCE index, which is not likely to unsettle markets significantly, although a significant deviation could raise concerns.
The following month marks the onset of earnings releases, which could profoundly impact sentiment. The recent market rally has been partly fueled by expectations for future profits, making corporate earnings performance crucial.
Stephen Innes of SPI Asset Management remarked, “With market valuations at lofty levels, there’s little room for corporate earnings performance to falter or for the Federal Reserve to deviate from its anticipated course of three rate cuts. Any divergence from these expectations could potentially lead to market turbulence.”
On Wall Street, all three main indexes closed in negative territory, despite spending most of the day in positive territory. In Asian trading, Hong Kong, Shanghai, Seoul, Jakarta, and Wellington experienced declines, while Sydney, Singapore, Taipei, and Manila saw gains. Tokyo advanced by one percent, driven by a weaker yen fueled by comments from Bank of Japan board member Naoki Tamura, indicating a continued stance of easy monetary policy for now.
Dhaka Stock Exchange’s Managing Director, ATM Tariquzzaman, has been designated as a commissioner at the Bangladesh Securities and Exchange Commission (BSEC), the regulatory authority overseeing the capital market. The Financial Institutions Division (FID) of the Finance Ministry issued a notification confirming this appointment, alongside two other commissioners, including Dr. Shaikh Shamsuddin Ahmed from Dhaka University’s Finance Department, and Md Mohsin Chowdhury, formerly of the Bangladesh Karmachari Kallyan Board (BKKB).
The newly appointed commissioners, as per the gazette, will serve a four-year term upon joining the commission. This announcement comes as the current five-member commission’s tenure is set to conclude this month.
Notably, Dr. Rubana Islam, the current commissioner and the first female to hold the position at BSEC since May 2022, will continue her tenure with the new commission for another two years.
ATM Tariquzzaman’s transition from executive director at BSEC to commissioner underscores his significant role in regulatory affairs. His predecessor, Prof Swapan Kumar Bala, also formerly of DSE, had similarly served as a commissioner.
Dr. Shaikh Shamsuddin Ahmed, a seasoned academic and economist, previously served as a director at Janata Bank and held a senior position at the World Bank’s Dhaka office before his appointment to BSEC.
Md Mohsin Chowdhury, with a background in government service, notably as DG of BKKB, brings valuable experience to his new role as commissioner, effective June 2nd.
This reshuffling within BSEC’s leadership reflects the ongoing efforts to ensure effective governance and oversight within Bangladesh’s capital market regulatory framework.
One of the listed companies, Premier Bank PLC discloses its financial reports for the first quarter, (January – March 24).
The company’s Consolidated earnings per share (EPS) was Tk 0.64 paisa in Q1 of the current financial year (January – March 24). Consolidated EPS was Tk 0.59 (restated) paisa during the same period last year. As of March 31, 2024, at the end of the first quarter of the fiscal year, the company’s Consolidated net asset value (NAV) per share stood at Tk 22.71.
One of the listed companies, City Bank PLC discloses its financial reports for the first quarter, (January – March 24).
The company’s Consolidated earnings per share (EPS) was Tk 0.75 paisa in Q1 of the current financial year (January – March 24). Consolidated EPS was Tk 0.73 (adjusted) paisa during the same period last year. As of March 31, 2024, at the end of the first quarter of the fiscal year, the company’s Consolidated net asset value (NAV) per share stood at Tk 30.84.
