Stocks
Asian markets rebound from sell-off but US data keps traders wary
Asian markets bounced Thursday after the turmoil of the previous day as traders assess the outlook for US interest rate cuts after another set of below-par data put extra focus on the upcoming jobs report.
Equities on Wednesday endured the most tumultuous day since early August after a weak read on US factory activity combined with a collapse in tech firms to cause a rout across the board.
While some of the selling was put down to profit-taking, news that the manufacturing sector contracted for a fifth straight month revived worries that the world’s top economy could tip into recession.
A big miss on labour creation in July was one of the catalysts for last month’s bloodbath.
Figures on Wednesday showed job openings fell to their lowest level since the start of 2021, stoking the sense that the economy and labour market are not as strong as thought.
With the Fed widely expected to cut rates at its meeting next month, observers said the recent figures are making a strong case for a 50-basis-point reduction, as opposed to the 25 points largely expected.
“Given that September historically claims the title of the worst month for stock returns — with August a close runner-up — this seasonal swoon could just be par for the course,” said analyst Stephen Innes.
“And yet, there’s always that lingering worry that the sharp pullback from near-record highs might signal something deeper. Enter this week’s critical US employment report, coupled with (Wednesday’s job openings) data, which threw another wrench into the mix.”
He pointed out that the job openings report also showed a downward revision for June, “adding to growing evidence that the US labour market is finally cooling.”
“While that’s a positive in terms of easing wage pressures and keeping inflation in check, it also raises questions about the economy’s underlying strength.”
While Wall Street struggled for a second day — only the Dow ended in positive territory — Asia mostly eked out gains though many markets drifted in and out through the morning.
Tokyo dipped as exporters were weighed by a strengthening yen, but Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Wellington and Manila all rose.
Still, Kelvin Wong at OANDA warned: “The hard-landing playbook narrative is back at the forefront as the market participants are ‘fearful’ that the US Federal Reserve has been late in enacting the interest rate cut cycle in the US.
“In turn, the higher beta (mega-cap technology and semiconductor stocks) were the worst performers as these groups of stocks have been leading in the US stock market since the start of 2024.”
Dealers are keeping an eye on developments in China after a report said officials were considering cutting interest rates on more than $5 trillion of mortgages in a bid to support homeowners and ease pressure on the banking system.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: DOWN 0.4 percent at 36,917.44 (break)
Hong Kong – Hang Seng Index: UP 0.2 percent at 17,499.10
Shanghai – Composite: UP 0.2 percent at 2,970.70
Dollar/yen: DOWN at 143.61 yen from 143.72 yen on Wednesday
Euro/dollar: DOWN at $1.1080 from $1.1082
Pound/dollar: UP at $1.3152 from $1.3147
Euro/pound: DOWN at 84.25 pence from 84.29 pence
West Texas Intermediate: UP 0.6 percent at $69.59 per barrel
Brent North Sea Crude: UP 0.5 percent at $73.09 per barrel
New York – Dow: UP 0.1 percent at 40,974.97 (close)
London – FTSE 100: DOWN 0.4 percent at 8,229.60 (close)
The Bangladesh Securities and Exchange Commission (BSEC) has initiated an investigation into Strategic Equity Management Limited (SEML), an asset management company owned by Chowdhury Nafeez Sarafat and his wife. The move comes following allegations of irregularities tied to the firm.
On September 17, the capital market regulator established a committee, led by BSEC Additional Director Md Emdadul Haque, to conduct the inquiry. Other members of the committee include Deputy Director Rafiqun Nabi and Assistant Director Md Abu Hena Mostafa.
According to sources within the regulatory agency, Nafeez, who previously served as the chairman of Padma Bank, allegedly diverted Tk245 crore from the troubled bank into SEML. This misuse of funds prompted BSEC to take swift action and initiate a detailed probe into the company’s operations.
In its notification, BSEC stated that the committee has been given a 60-working-day timeline to submit a report addressing several specific concerns. Key areas of investigation include whether SEML’s investments through the “Alternative Investment Fund of Bangladesh” adhered to regulatory guidelines and investment parameters from its inception to the present day.
The committee is also tasked with collecting concrete evidence related to all investments made by the fund. They will assess any conflicts of interest arising from dealings with individuals or entities connected to the fund manager and trustee.
Furthermore, the investigators will review official bank statements of the fund, tracking account balances at the end of each fiscal year. They will also verify any interest or profits generated from term deposits and other investments with banks or financial institutions throughout the fund’s lifespan.
The probe will examine dividends and capital gains earned from both listed and non-listed securities, and evaluate the fund’s operating expenses, including annual fees, management fees, trustee fees, and other related charges since the fund’s inception.
Additionally, the committee will seek to uncover any illicit payments made from the fund’s accounts that may have benefited the fund manager or other parties. BSEC has emphasized the importance of reviewing these details thoroughly.
The inquiry will also assess the roles of the fund manager and trustee in ensuring proper governance and oversight, in accordance with BSEC’s rules and the fund’s constitutive documents. The committee may address other related matters as deemed necessary during the course of their investigation.
Dhaka Stock Market DSE, Bourse on the third working day of the week, 18th September, ended with a hike in Indices and drop in Turnover from the previous working session. This information is known from DSE sources.
553 crore 65 lakh taka shares were traded on this day. 81 crore 30 lakh less tradings were done in DSE today compared to the previous workday, 17th September, Shares worth Tk 634 crores 96 lakh shares were traded last time, Tuesday.
The benchmark DSEX added 12.53 points or 5,694 The Shariah-based index DSES gained 7.49 point or 1,245 and the blue-chip index DS30 increased by 8.36 points or 2,076.
Of the issues traded, 113 advanced, 224 declined and 59 remained unchanged.
Beacon Pharmaceuticals PLC ranked top gainer on DSE, the share price increased by Tk 12.60 paisa or 9.98 percent. On this day, the share was last traded at Tk 138.90 paisa.
Premier Leasing & Finance Limited ranked top loser on the DSE, the share price dropped by Tk 0.40 paisa or 9.52 percent. On this day, the share was last traded at Tk 3.80 paisa.
DSE topped on trade is Sonali Aansh Industries Limited 25 crore 36 lakh takas of company shares have been traded.
A total of 36 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 43 lakh 94 thousand 483 shares of the companies were traded. The financial value of which is 45 crore 50 lakh taka.
1 Mutual Fund, Asian Tiger Sandhani Life Growth Fund from Dhaka Stock Exchange (DSE) have disclosed their Dividends for the year ended June 30, 2024. This source is known from the DSE official website. The Fund has recommended Null Dividend for the year ending June 30, 2024.
It has reported EPU loss of Tk 1.95 paisa, and NAV per unit at a market price of Tk. 8.31, NAV per unit at cost price of Tk. 11.25 for the year ended June 30, 2024. Record date: 08.10.2024
