Economy
Concerns About Trade War May Continue to Hit Markets
By Investors Hub
The major U.S. index futures are pointing to a lower opening on Monday after turning higher over the course of the previous session.
Lingering concerns about a global trade war may weigh on the markets, as President Donald Trump plans to implement tariffs on steel and aluminum imports.
In a post on Twitter, Trump indicated that the tariffs on steel and aluminum would only be removed if the U.S. negotiates a ?new & fair? NAFTA agreement.
?We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed,? Trump tweeted.
He added, ?Also, Canada must treat our farmers much better. Highly restrictive. Mexico must do much more on stopping drugs from pouring into the U.S. They have not done what needs to be done. Millions of people addicted and dying.?
Trading activity may be somewhat subdued, however, as traders look ahead to the Labor Department?s monthly employment report due to be released on Friday.
After coming under pressure early in the session, stocks showed a significant turnaround over the course of the trading day on Friday. The major averages bounced well off their lows of the session, with the Nasdaq and the S&P 500 climbing into positive territory.
The major averages ended the session mixed, as the Dow climbed well off its worst levels but was unable to turn positive. While the Dow fell 70.92 points or 0.3 percent to 24,538.06, the Nasdaq jumped 77.31 points or 1.1 percent to 7,257.87 and the S&P 500 climbed 13.58 points or 0.5 percent to 2,691.25.
Despite the recovery on the day, the major averages all moved lower for the week. The Dow plunged by 3 percent, the S&P 500 tumbled by 2 percent and the Nasdaq slumped by 1.1 percent.
Bargain hunting may have contributed to the rebound on Wall Street, as the early weakness came on the heels of the sharp pullback seen over the three previous sessions.
The initial drop came as traders expressed concerns about the impact President Donald Trump’s plans to impose new tariffs on steel and aluminum imports will have on global trade.
Trump indicated Thursday that he plans to impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports.
The tariffs are likely to benefit U.S. steel and aluminum producers, although some officials have warned of retaliation by the European Union and China.
Trump shrugged off the concerns in a post on Twitter early Friday morning, calling trade wars “good” and “easy to win”
“When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win,” Trump said.
He added, “Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!”
Following Trump’s announcement, several industry groups warned that the tariffs would lead to increased costs and hamper their ability to create jobs.
A steep drop by shares of McDonald’s (MCD) weighed on the Dow, with the fast food giant slumping by 4.8 percent.
The drop by McDonald’s came after RBC Capital Markets cut its price target on the company’s stock to $170 from $190 after a slow start for the chain’s new value menu.
Biotechnology stocks showed a substantial move to the upside on the day, driving the NYSE Arca Biotechnology Index up by 3.2 percent. The index rebounded after closing lower for three straight sessions.
Biogen (BIIB) and AbbVie (ABBV) turned higher despite voluntarily withdrawing their relapsing multiple sclerosis drug Zinbryta from the global markets.
Significant strength also emerged among natural gas stocks, as reflected by the 2.3 percent gain posted by the NYSE Arca Natural Gas Index. The strength in the sector came despite a modest decrease by the price of natural gas stocks.
Tobacco, semiconductor, and healthcare stocks also moved notably higher, while steel stocks pulled back following the strength seen in the previous session.
By Adedapo Adesanya
The Federal Ministry of Finance has directed the National Insurance Commission (NAICOM) to suspend enforcement of disputed recapitalisation fees and a directive requiring NICON Insurance Limited and the Nigeria Reinsurance Corporation to transfer their entire fresh capital into an escrow account with the Central Bank of Nigeria (CBN).
The ministry also demanded a detailed response and legal justification from NAICOM over assessments of N305 million against NICON and N375 million against Nigeria Re as part of the ongoing insurance industry recapitalisation exercise.
The directive was contained in a letter dated August 6, 2026, signed by the Permanent Secretary, Finance, Mr Raymond Omachi, on behalf of the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
The letter followed a July 27 petition by NICON and Nigeria Re over the implementation of the Nigerian Insurance Industry Reform Act, 2025. The companies challenged NAICOM’s demand for a one per cent capital injection fee, alongside processing and verification charges under the commission’s Minimum Capital Requirement Guidelines.
They also disputed a directive requiring existing insurance companies to transfer their entire recapitalisation funds into a CBN escrow account, arguing that Section 16(3) of NIIRA 2025 provides for a statutory deposit of only 10 per cent.
According to the Finance Ministry, NICON and Nigeria Re had injected N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank, exceeding their adjusted capital requirements of N16 billion and N28 billion.
The companies also deposited N2.5 billion and N3.5 billion respectively with the CBN as statutory deposits and paid initial fees of N80 million and N75 million.
The ministry said the companies therefore considered themselves compliant with the July 31, 2026 recapitalisation deadline.
“Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation,” the letter stated.
The ministry consequently asked NAICOM to explain the basis and legal justification for the disputed charges and escrow requirement.
The intervention comes amid the Federal Government’s efforts to strengthen the capital base of insurance companies and reinsurers, improve their capacity to underwrite larger risks and enhance the sector’s contribution to economic development.
The dispute, however, has raised questions over the extent of NAICOM’s authority to impose additional fees and require existing insurers to place their entire recapitalisation funds in escrow.
The Finance Ministry’s letter did not disclose whether NAICOM had responded to the issues raised. It also referenced an alleged N500 million demand and an additional N180 million capitalisation charge in its subject, although the substantive section specifically put the disputed assessments at N305 million for NICON and N375 million for Nigeria Re.
For now, enforcement of the contested fees and full-capital escrow directive against the two state-owned insurers has been suspended pending NAICOM’s response and legal clarification.
By Adedapo Adesanya
Four price decliners overpowered the two price gainers recorded at the NASD Over-the-Counter (OTC) Securities Exchange on Monday, August 10, weakening it by 0.32 per cent at the close of transactions.
The advancers were led by Food Concepts Plc, which chalked up 25 Kobo to sell at N2.75 per unit versus the previous price of N2.50 per unit, and Mass Telecoms Innovation Plc appreciated by 3 Kobo to 35 Kobo per share from 32 Kobo per share.
However, 11 Plc lost N24.75 to close at N222.75 per unit versus N247.50 per unit, FrieslandCampina Wamco Nigeria Plc declined by N3.09 to N145.00 per share from N148.09 per share, Industrial and General Insurance (IGI) Plc went down by 5 Kobo to 50 Kobo per unit from 55 Kobo per unit, and Geo-Fluids Plc slid by 1 Kobo to N2.27 per share from N2.28 per share.
As a result, the market capitalisation contracted by N8.94 billion to N2.798 trillion from the previous session’s N2.807 trillion, and the NASD Security Index (NSI) retreated by 14.9 points to 4,663.18 points from 4,678.08 points.
The trading data showed that the volume of securities exchanged by investors rose by 108.9 per cent to 1.1 million units from 535,7560 units, and the value of securities jumped by 69.5 per cent to N10.2 million from N6.0 million, while the number of deals executed receded by 2.8 per cent to 35 deals from 36 deals.
Great Nigeria Insurance (GNI) Plc closed the trading session as the most traded stock by value on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 77.0 million units transacted for N5.5 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
By Adedapo Adesanya
The Naira opened the week on a positive note, appreciating against the US Dollar by N5.55 or 0.41 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, August 10, to N1,360.14/$1 from N1,365.69/$1.
The domestic currency also improved its exchange rate against the Pound Sterling in the official market during the session by 67 Kobo to sell at N1,838.50/£1 compared with the preceding session’s N1,839.17/£1, and gained N4.64 against the Euro to quote at N1,571.09/€1, in contrast to last Friday’s N1,575.73/€1.
However, the Naira maintained stability against the Dollar in the black market and the GTBank forex counter on Monday at N1,400/$1 and N1,371/$1, respectively.
Data from the Central Bank of Nigeria (CBN) showed that interbank FX turnover fell by 46 per cent yesterday to $213.845 million from the $393.477 million recorded at the close of trading on Friday.
The decline came despite a sharp increase in the volume of foreign exchange transactions executed during the session, indicating weaker participation by high-ticket FX customers and other major market participants.
The lower turnover suggests reduced demand for FX among large-scale buyers, even as market makers continued to facilitate transactions through the NAFEM window, with the number of FX traded rising to 182 from 102.
In the cryptocurrency market, traders and investors took profit as broader markets’ focus shifted to rising bond yields, higher oil prices and upcoming US inflation data.
Cardano (ADA) depreciated by 5.2 per cent to $0.1873, Ethereum (ETH) slipped by 2.6 per cent to $1,873.43, Ripple (XRP) slumped by 2.3 per cent to $1.01, Bitcoin (BTC) fell by 1.8 per cent to $63,949.22, Solana (SOL) crashed by 1.3 per cent to $75.81, and Binance Coin (BNB) tumbled by 0.6 per cent to $599.49.
But TRON (TRX) gained 0.5 per cent to trade at $0.3314, and Dogecoin (DOGE) grew by 0.2 per cent to $0.0700, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
