Economy

Dow May Look To Reverse Recent Downward Trend

Published

9 years ago

20/04/2017

Investors Hub

The major US index futures are pointing to a higher opening on Thursday following the mixed performance seen in the previous session.

Traders may look to pick up stocks at reduced levels following the recent downward trend by the Dow, which ended the previous session at its lowest closing level in two months.

Stocks turned in a mixed performance during trading on Wednesday, as traders reacted to the latest earnings news as well a steep drop by the price of crude oil. The major averages eventually ended the session on opposite sides of the unchanged line.

While the tech-heavy Nasdaq rose 13.56 points or 0.2 percent to 5,863.03, the Dow slid 118.79 points or 0.6 percent to a two-month closing low of 20,404.49 and the S&P 500 dipped 4.02 points or 0.2 percent to 2,338.17.

A notable decline by shares of IBM Corp. (IBM) weighed on the Dow, with the tech giant tumbling by 4.9 percent to its lowest closing level in over four months.

The steep drop by IBM came after the company reported first quarter earnings that beat analyst estimates but on weaker than expected revenues.

Meanwhile, some positive sentiment was generated by upbeat earnings news from Morgan Stanley (MS) after disappointing results from Goldman Sachs (GS) weighed on the markets on Tuesday

Shares of Morgan Stanley rose by 2 percent after the financial services giant reported better than expected first quarter results.

Yahoo (YHOO), which is in the process of selling its core internet business to Verizon (VZ), also reported first quarter results that exceeded analyst estimates.

Overall trading activity was somewhat subdued, however, with lingering geopolitical uncertainty keeping some traders on the sidelines.

Late in the trading day, the Federal Reserve released its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts.

The Fed said economic activity increased in each of the twelve districts between mid-February and the end of March, with the pace of expansion equally split between modest and moderate.

The report also said employment expanded across the nation. The job growth also ranged from modest to moderate during the period.

Modest wage increases broadened, the Fed said while noting prices rose modestly since the previous report on balance.

Gold stocks moved sharply lower over the course of the trading session, dragging the NYSE Arca Gold Bugs Index down by 3.7 percent. The index pulled back further off the nearly two-month closing high it set last Wednesday. The sell-off by gold stocks came amid a decrease by the price of the precious metal.

A steep drop by the price of crude oil also weighed on energy stocks, as oil prices came under pressure after the release of a report showing an unexpected weekly increase in gasoline inventories.

Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index plunged by 2.7 percent, while the NYSE Arca Natural Gas Index and the NYSE Arca Oil & Gas Index slumped by 1.7 percent and 1.6 percent, respectively.

On the other hand, airline stocks saw notable strength on the day, resulting in a 1.1 percent advance by the NYSE Arca Airline Index. With the gain, the index reached a two-month closing high.

Hawaiian airlines parent Hawaiian Holdings (HA) and SkyWest (SKYW) turned in two of the sector’s best performances. United Continental (UAL) also rebounded after falling sharply on Tuesday.

Economy

NBA Demands Suspension of Controversial Tax Laws

Published

1 day ago

24/12/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.

In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.

A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.

To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”

“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.

It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”

“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.

“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.

“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.

“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.

Economy

MRS Oil, Two Others Raise NASD Bourse Higher by 0.52%

Published

1 day ago

24/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.

The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.

Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.

Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.

Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.

The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.

By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.

In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.

Economy

NGX All-Share Index Soars to 153,354.13 points

Published

1 day ago

24/12/2025

Dipo Olowookere

By Dipo Olowookere

It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.

The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.

Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.

Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.

At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.

This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.

VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.

In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.