Economy
Reaction to ECB Likely to Drive Trading on Wall Street
By Investors Hub
The major U.S. index futures are pointing to a modestly lower opening on Friday following the lackluster performance seen in the previous session.
Trading activity on the day may be somewhat subdued, with a lack of major U.S. economic data keeping some traders on the sidelines.
Uncertainty about the near-term outlook for the markets may also contribute to choppy trading following the recent move to record highs by the major averages.
Earnings news is likely to attract attention, however, with several big-name companies recently releasing the quarterly results.
Stocks showed a lack of direction over the course of the trading session on Thursday, with the major averages bouncing back and forth across the unchanged line. Despite the lackluster performance, the tech-heavy Nasdaq reached a new record closing high.
The major averages finished the day on opposite sides of the unchanged line. While the Nasdaq inched up 4.96 points or 0.1 percent to 6,390.00, the Dow dipped 28.97 points or 0.1 percent to 21,611.78 and the S&P 500 edged down 0.38 points or less than a tenth of a percent to 2,473.45.
The choppy trading on Wall Street partly reflected uncertainty about the outlook for the markets after the major averages reached new record closing highs on Wednesday.
Traders were also digesting the European Central Bank’s monetary policy decision, with the bank leaving its key interest rates unchanged.
The ECB also reiterated its plan to purchase 60 billion euros worth of government bonds and other assets each month through December, or beyond, if necessary.
Additionally, the ECB noted it stands ready to increase the program in terms of size or duration if the outlook becomes less favorable.
ECB President Mario Draghi indicated in his subsequent press conference that the asset purchase program would continue until there is a sustained adjustment in the path of inflation consistent with the bank’s target.
On the U.S. economic front, a report released by the Labor Department showed a much bigger than expected decrease in first-time claims for U.S. unemployment benefits in the week ended July 15th.
The report said initial jobless claims fell to 233,000, a decrease of 15,000 from the previous week’s revised level of 248,000. Economists had expected jobless claims to edge down to 245,000.
The Federal Reserve Bank of Philadelphia also released a report showing that regional manufacturing activity grew at a notably slower rate in the month of July.
The Philly Fed said its index for current manufacturing activity in the region slumped to 19.5 in July from 27.6 in June.
While a positive reading still indicates growth in regional manufacturing activity, economists had expected the index to show a much more modest drop to 24.0.
Meanwhile, the Conference Board said its index of leading economic indicators rose by more than expected in the month of June.
The Conference Board said its leading economic index climbed by 0.6 percent in June after rising by a revised 0.2 percent in May. Economists had expected the index to rise by 0.4 percent
Telecom stocks showed a significant move to the downside on the day, dragging the NYSE Arca Telecom Index down by 2.1 percent. With the drop, the index fell to its lowest closing level in a year.
Communications chip maker Qualcomm (QCOM) posted a notable loss after reporting third quarter results that beat estimates but providing disappointing guidance.
Considerable weakness was also visible among trucking stocks, as reflected by the 2.1 loss posted by the Dow Jones Trucking Index. C.H. Robinson (CHRW) led the trucking sector lower after reporting second quarter earnings that came in below analyst estimates.
Railroad and oil service stocks also came under pressure on the day, while notable strength was visible among biotechnology and pharmaceutical stocks.
Within the biotech sector, Sarepta Therapeutics (SRPT) moved sharply higher after the biopharmaceutical company reported a narrower than expected second quarter loss.
By Adedapo Adesanya
Nigeria, through the Debt Management Office (DMO), has offered three bonds for subscription to interested investors to the tune of N450 billion.
The DMO, in its offer circular on Monday, said that the first offer was an April 2029 FGN bond, valued at N100 billion at an interest rate of 19.30 per cent per annum. (5-year re-opening).
It listed the second offer as a February 2031 FGN bond valued at N150 billion at an interest rate of 18.50 per cent per annum. (7-year re-opening) and the third offer (January 2035 FGN bond) valued at N200 billion.
The auction date is January 27, and the settlement date is January 29, the notice stated.
According to the DMO, the FGN bonds are offered at N1,000 per unit subject to a minimum subscription of N50 million, and in multiples of N1,000 thereafter.
“For re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.
“Interest is payable semi-annually, while bullet repayment (principal sum) is on the maturity date, ” the DMO said.
It said that the bonds were backed by the full faith and credit of the Federal Government, and were charged upon the general assets of Nigeria.
“They qualify as securities in which trustees can invest under the Trustee Investment Act.
“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among others.
“They are listed on the Nigeria Exchange Limited, ” it said.
It said that they qualified as liquid assets for liquidity ratio calculations for banks,” the debt office added.
By Aduragbemi Omiyale
Nigerians have been warned against putting their hard-earned money in Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, commonly known as Stecs, as they could lose their funds.
The capital market regulator in a circular in Abuja said investments in these entities, which it described as unregistered and unregulated, could expose investors to the risk of fraud and potential loss of investment.
SEC said Risevest and Stecs had not been authorised to carry out capital market operations in the country, and as such, investing in them was risky.
“The attention of the Securities and Exchange Commission has been drawn to the activities of Risevest (Victoria Island) Cooperative Multipurpose Society Limited, which is engaging in capital market activities by inviting the public to invest in its various investment schemes.
“The commission hereby notifies the public that Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society are not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by them have not been authorized by the commission.
“Accordingly, the SEC advised the public to refrain from engaging with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society in respect of any business pertaining or relating to the Nigerian capital market,” the notice read.
In the same vein, the agency said, “Our attention has been drawn to Stecs (Alausa) Multipurpose Cooperative Society (popularly known as Stecs), which is engaging in capital market activities by inviting the public to invest in its Stecs Commodity Mudarabah Investment Series I.
“The commission hereby notifies the public that Stecs (Alausa) Multipurpose Cooperative Society is not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by the cooperative society have not been authorized by the commission.”
“Accordingly, the public is advised to refrain from engaging with Stecs (Alausa) Multipurpose Cooperative Society in respect of any business pertaining or relating to the Nigerian capital market.”
“The commission uses this medium to reiterate that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to the risk of fraud and potential loss of investment.”
“The SEC remains committed to the protection of investors in the Nigerian capital market and is working diligently to combat the activities of illegal/unregistered entities.”
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange saw a 65.1 per cent boost in its market capitalisation in the fourth trading week of 2025, closing at N1.770 trillion compared with the N1.075 trillion it quoted in the preceding week (Week 3), as the NASD Unlisted Security Index (NSI) rose by 0.68 per cent or 21.29 points to 3,133.20 points from 3,111.91 points.
The sterling performance occurred amid a surge in the volume of transactions by 4,402.4 per cent to 425.3 million units from the 9.45 million units recorded in the previous week.
Equally, the total value of trades during the week jumped by 740.5 per cent to N410.5 million from the previous week’s N48.4 million, with these transactions carried out in 102 deals involving 16 stocks.
In the week, there were eight appreciating securities and four depreciating securities led by Impresit Bakolori Plc, which shed 9.5 per cent to end at 95 Kobo per share compared with N1.05 per share, Geo-Fluids Plc lost 6.8 per cent to close at N4.38 per unit versus N4.70 per share, FrieslandCampina Wamco Plc depreciated by 2.7 per cent to N38.58 per unit from N39.65 per unit, and UBN Property Plc, which slid by 1.4 per cent to N1.84 per unit from N2.20 per unit.
On the flip side, Okitipupa Plc gained 33.1 per cent to trade at N52.69 per share against the former value of N39.55 per share, Industrial and General Insurance (IGI) Plc expanded by 11.1 per cent to 40 Kobo per unit versus 36 Kobo per unit, Nipco Plc grew by 10 per cent to N165.11 per share from N150.10 per share, and Mixta Real Estate Plc rose by 9.7 per cent to N2.83 per unit from N2.58 per unit.
Further, Food Concepts Plc increased by 8.8 per cent to N1.74 per share from N1.60 per share, Access Bank jumped by 8.8 per cent to N19.30 per unit from N9.68 per unit, First Trust Microfinance Bank improved by 8.8 per cent to 39 Kobo per share from 37 Kobo per share, and Central Securities Clearing System (CSCS) Plc soared by 3.5 per cent to N24.00 per unit from N23.20 per unit.
The most traded stock for the week by value was Impresit Bakolori Plc with N386.5 million, FrieslandCampina Wamco Plc recorded N8.5 million, IGI Plc traded N7.04 million, 11 Plc recorded N2.7 million, and Okitipupa Plc posted N1.7 million.
Also, Impresit Bakolori Plc was the most traded stock by volume with 406.5 million units, IGI Plc transacted 17.5 million units, UBN Property Plc recorded 0.67 million, Mixta Real Estate Plc traded 0.27 million units, and FrieslandCampina Wamco Plc transacted 0.22 million units.
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