Stocks
Asian Traders Navigate Volatility Amidst Rate Cut Forecasts
Asian traders endeavored to regain momentum in the recent rally on Thursday following a lukewarm performance on Wall Street. However, soaring achievements in Europe underscored optimism surrounding potential interest rate cuts by central banks.
London celebrated another milestone, reaching an all-time high ahead of an anticipated Bank of England meeting. Many anticipate that officials will signal their intention to commence the normalization of monetary policy in the summer.
This development follows Sweden’s central bank’s decision to lower borrowing costs for the first time in eight years, hinting at further reductions in the future.
The Riksbank’s move comes almost two months after the Swiss National Bank’s groundbreaking decision, making it the first major Western central bank to adjust its policies amidst a global tightening campaign aimed at combatting inflation driven by Covid recovery and the Ukraine conflict.
Traders, who had been anticipating rate cuts from the Federal Reserve, experienced a tumultuous journey this year. A series of inflation readings surpassing forecasts compelled them to revise down their expectations. Initially estimated at six, the consensus now stands at around two rate cuts by January 2024.
Several Federal Reserve policymakers have also attempted to moderate expectations. Boston Fed President Susan Collins, the latest to weigh in, suggested that rates might need to remain at their highest levels in two decades for a longer period to rein in prices. Her sentiments echoed those expressed by her Minneapolis counterpart, Neel Kashkari, the previous day.
Nevertheless, a slew of positive corporate results, reassuring remarks from Fed Chair Jerome Powell regarding the likelihood of a rate hike, and a significant shortfall in US jobs data last month have buoyed trader sentiment over the past week.
Analysts maintain a generally positive outlook on equities despite the absence of encouraging news on inflation. Mark Hackett of Nationwide noted, “As the Federal Reserve extends the timeline for interest rate cuts, historical data shows that longer Fed pauses often correlate with better equity returns. This should give investors reasons to be optimistic.”
Following London’s record-breaking performance and gains in Paris and Frankfurt, New York witnessed a mixed session, while Asian markets encountered challenges.
Hong Kong resumed its upward trajectory after a two-day decline following a ten-day winning streak, with Tokyo, Shanghai, and Manila also posting gains. However, Sydney, Singapore, Seoul, Wellington, and Taipei experienced marginal declines.
Oil prices saw a second consecutive increase as investors monitored efforts towards a ceasefire in the Middle East, notwithstanding Israel’s ongoing assault on Rafah in southern Gaza.
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.
