Stocks
Asian markets track Wall St record as US jobs fuel rate cut hopes
Asian markets extended a surge on Wall Street Thursday as another round of soft US jobs data ramped up bets on the Federal Reserve cutting interest rates this year.
Worries about the world’s top economy sparked by a below-par factory gauge earlier this week appear to have been superseded by renewed optimism that an extended period of elevated borrowing costs is finally kicking in.
Figures from payroll firm ADP on Wednesday showed private-sector hiring slowed far more than estimated in May.
That came a day after news that job openings had fallen more than expected and pointed to a softening labour market, a key goal of Fed officials along with falling inflation.
The data fanned hopes that the Fed can start to cut interest rates from their two-decade highs, and traders have priced in almost two before the end of 2024, with some pencilling in September for the first.
“Momentum continues as US data starts to weaken… possibly supporting earlier rate cuts from the Fed this year,” said Charu Chanana at Saxo.
Investors are now set up for the release of the crucial non-farm payrolls report, which is due Friday and should provide a clearer snapshot of the labour market and the US economy.
That comes ahead of next week’s Fed policy meeting, where it will also unveil its latest “dot plot” of rate expectations.
Its previous guidance — in March — was for three cuts but many are preparing for that to be whittled down in light of recent data showing inflation remains sticky and decision-makers’ reluctance to move too early.
“The ‘dots’ are likely to cluster around one or two interest rate cuts this year,” Capital Economics’ Stephen Brown said.
“Nevertheless, as inflation falls a bit faster than officials expect and (gross domestic product) growth disappoints, our base case remains that the Fed will cut in September.”
Optimism over a rate cut has been boosted by news that Canada’s central bank had done so on Wednesday, while the European Central Bank is expected to later on Thursday.
All three main indexes on Wall Street advanced, with the S&P 500 and Nasdaq hitting fresh records.
The rally in New York came on the back of a surge in tech titans including chip-making darling Nvidia, which became only the third US company in history to break $3 trillion in market capitalisation, after Apple and Microsoft.
Asian markets built on the gains, with Hong Kong, Tokyo, Shanghai, Sydney, Singapore, Taipei, Manila and Jakarta all enjoying buying interest.
Mumbai futures rose after Indian Prime Minister Narendra Modi formed a coalition government — having lost his majority in the country’s general election — raising hopes he will be able to push through economy-boosting measures.
Shares in India have swung wildly between big gains and losses this week after exit polls pointing to a landslide for Modi’s Bharatiya Janata Party (BJP) were proved wrong.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: UP 0.9 percent at 38,841.75 (break)
Hong Kong – Hang Seng Index: UP 1.0 percent at 18,616.78
Shanghai – Composite: UP 0.3 percent at 3,075.88
Dollar/yen: DOWN at 155.70 yen from 156.12 yen on Wednesday
Euro/dollar: UP at $1.0889 from $1.0873
Pound/dollar: UP at $1.2803 from $1.2789
Euro/pound: UP at 85.05 pence from 85.00 pence
West Texas Intermediate: UP 0.6 percent at $74.50 per barrel
Brent North Sea Crude: UP 0.4 percent at $78.74 per barrel
New York – Dow Jones: UP 0.3 at 38,807.33 (close)
London – FTSE 100: UP 0.2 percent at 8,246.95 (close)
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.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
