Stocks
Asian Markets Fluctuate Amid Speculation on Fed Interest Rate Cuts
Asian markets experienced fluctuations on Monday as traders assessed the likelihood of the Federal Reserve implementing interest rate cuts this year, following a robust US jobs report that tempered expectations for an immediate move in June.
Friday saw a rally in Wall Street’s three main indexes after news of 303,000 new jobs created in the United States for March. Investors focused on the positive implications for the economy rather than the potential effects on monetary policy.
However, analysts cautioned that the strong figures, which also indicated a decline in unemployment and sustained wage growth, could deter the Fed from implementing the three anticipated rate cuts in 2024, as previously indicated.
Market participants now await the release of minutes from the central bank’s recent meeting, along with the latest consumer price index (CPI) reading.
Saxo’s Redmond Wong noted that the CPI figures would be critical in determining whether the recent inflation surge is a lasting trend, referring to earlier-than-expected inflation figures at the beginning of the year.
Marc Chandler of Bannockburn Global Forex cautioned that there are fewer reasons to discount the employment data, as the economy continues to outpace the Fed’s long-term non-inflation growth pace.
There is increasing speculation that the Fed may not be able to execute the projected three rate cuts this year. Some suggest that if economic data remains robust, officials may face pressure to delay rate adjustments until 2025.
Asian investors struggled for direction on a mixed day, with Hong Kong, Tokyo, Sydney, Seoul, and Taipei seeing gains, while Shanghai, Singapore, Manila, and Wellington registered declines.
Additionally, geopolitical developments are being closely monitored, with talks in Cairo aimed at brokering a truce between Israel and Hamas showing progress, as reported by state-linked Egyptian outlet Al-Qahera.
However, Israel’s announcement of ongoing military preparations in Gaza’s Rafah city and Iran’s threats of retaliation against Israel following an attack on its embassy in Damascus contribute to ongoing tensions in the region.
Oil prices dipped on Monday amidst hopes for a ceasefire, but concerns about supply disruptions in the event of a broader conflict between Israel and Iran continue to support prices near five-month highs.
Gold prices retreated after reaching a new record on Friday, buoyed by expectations of rate cuts and geopolitical uncertainties.
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.
