Stocks
Asian markets drift ahead of key US figures, eyes on China
Asian markets stuttered Tuesday as investors steel themselves for a high-stakes US jobs report at the end of the week while keeping tabs on China after fresh data stoked renewed worries over the world’s number two economy.
While the Federal Reserve is widely expected to cut interest rates at its next meeting later in September, close attention is being paid to Friday’s non-farm payrolls (NFP) figures, which are seen as playing a major role in how big the central bank will go.
However, analysts warned that traders were sensitive to a reading that is too far above or below forecasts. A miss to the upside could temper hopes for a series of reductions but a reading well below expectations would likely revive worries about a possible recession.
“This week’s overload of labour data… will be crucial in breaking the debate between a 25 or 50 basis point cut in September,” said Charu Chanana at Saxo Capital Markets, referring to the NFP as well as job openings and private hiring figures.
“If the data remains robust, a 25-basis-point cut is more likely. However, a weak NFP, particularly if it falls below 130,000 with another jump higher in unemployment rate, could push the rates market closer to pricing a 50-basis-point cut.”
Chanana added that investors will be paying close attention to comments from New York Fed boss John Williams and governor Christopher Waller later in the week for an idea about officials’ thinking.
With Wall Street closed Monday for a public holiday, there were few major catalysts to drive business, and Asia fluctuated.
Tokyo edged up along with Singapore, Seoul, Taipei, Manila and Jakarta, though Hong Kong, Shanghai, Sydney and Wellington struggled.
Nervousness over the Chinese economy was keeping buyers at bay after another round of data showed the country’s manufacturing sector contracted for a fourth straight month.
A stream of indicators have highlighted weaknesses in the economy since leaders lifted painful Covid curbs at the end of 2022, but Beijing has refused to embark on the sort of big-ticket stimulus it unveiled during the global financial crisis.
With no sign that the government will give in to the calls for support, investors are left waiting nervously for the latest round of data this month, with inflation and trade due next week.
In company news, the Hong Kong-listed shares of Cathay Pacific slipped after it announced the temporary grounding of its A350 aircraft for inspections after a “first of its type” engine component failure forced a flight to Zurich to turn back to Hong Kong on Monday.
The Hong Kong carrier said it had cancelled 24 return flights operating up until the end of Tuesday as it carried out an inspection of its 48 Airbus A350 planes.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: UP 0.2 percent at 38,787.80 (break)
Hong Kong – Hang Seng Index: DOWN 0.3 percent at 17,632.73
Shanghai – Composite: DOWN 0.3 percent at 2,803.28
Euro/dollar: UP at $1.1069 from $1.1067 on Monday
Pound/dollar: DOWN at $1.3145 from $1.3147
Dollar/yen: DOWN at 146.67 yen from 147.01 yen
Euro/pound: UP at 84.20 pence from 84.18 pence
West Texas Intermediate: UP 0.7 percent at $74.07 per barrel
Brent North Sea Crude: DOWN 0.2 percent at $77.39 per barrel
London – FTSE 100: DOWN 0.2 percent at 8,363.84 (close)
New York – Dow: Closed for public holiday
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.
