Economy
Asian Equities Close Mixed on Sustained Trade Worries
By Investors Hub
Asian stocks ended mixed on Friday as trade worries persisted and investors digested key data from China and Japan.
The White House is holding off on a decision about licenses for U.S. companies to restart business with Huawei Technologies Co., Bloomberg reported after Chinese companies halted purchases of U.S. agricultural products.
Chinese shares fell after the release of mixed inflation data. The benchmark Shanghai Composite Index ended down 19.80 points or 0.1 percent at 2,774.75.
Consumer prices in China rose an annual 2.8 percent in July, the National Bureau of Statistics said in a report. That exceeded expectations for 2.7 percent, which would have been unchanged from the June reading.
On a monthly basis, consumer prices were up 0.4 percent after easing 0.1 percent in the previous month.
The bureau also said that producer prices sank 0.3 percent year-on-year, beneath expectations for a flat reading that would have been unchanged from the previous month.
Hong Kong’s Hang Seng Index slid 181.47 points or 0.7 0.69 percent to 25,939.30 as demonstrators gathered at Hong Kong’s international airport to reiterate their demands for human rights and freedom and put their case “in front of an international audience.”
Meanwhile, Japanese shares advanced after data showed the country’s economy grew at a faster than expected pace in the second quarter.
Japan’s GDP grew 0.4 percent sequentially in the second quarter of 2019, the Cabinet Office said in a report. That beat expectations for an increase of 0.1 percent following the upwardly revised 0.7 percent gain in the previous quarter.
On an annualized basis, GDP gained 1.8 percent – again exceeding expectations for an increase of 0.5 percent following the upwardly revised 2.8 percent gain in the three months prior.
The Nikkei 225 Index rose 91.47 points or 0.4 percent to 20,684.82, while the broader Topix ended up 0.4 percent at 1,503.84.
Mining, textile and apparel, and precision instrument issues led the gainers. Chip-related stocks fell on reports the Trump administration is delaying a decision on handing out licenses for U.S. companies to resume shipping to China’s Huawei. Shiseido jumped 8.1 percent and Toray Industries surged 6.1 percent on solid earnings.
Australian markets eked out modest gains, led by banks and miners. The benchmark S&P/ASX 200 Index rose 16.30 points or 0.3 percent to 6,584.40, while the broader All Ordinaries index inched up 21.10 points or 0.3 percent to 6,663.40.
Lithium miners Orocobre and Pilbara Minerals soared 7-10 percent after the world’s biggest lithium producer Albemarle said it would delay construction of 125,000 metric tons of additional lithium processing capacity due to a supply glut.
Nickel miner Independence Group jumped 5.3 percent as nickel prices hit a 16-month high. Mining heavyweight BHP ended little changed, while rival Rio Tinto shed 0.9 percent.
Banks ANZ, Commonwealth and Westpac rose between half a percent and 0.7 percent. Tech stocks rallied, with Wisetech climbing 2.7 percent and Afterpay Touch jumping 6.1 percent.
On the other hand, casino operator Crown Resorts declined 1.3 percent after saying it would cooperate in a probe into Melco Resorts and Entertainment’s planned stake purchase in Crown.
Seoul stocks rose sharply as the Chinese yuan held steady after the release of consumer and producer inflation data. The benchmark Kospi climbed 17.14 points or 0.9 percent to 1,937.75.
YG Entertainment shares slumped 11 percent after the police launched a preliminary investigation into suspicions that the company’s founder engaged in overseas gambling.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 1.41 per cent on Friday, May 15, supported by four securities on the platform.
During the session, FrieslandCampina Wamco Plc added N14.24 to its share price to sell for N159.00 per unit, in contrast to the previous day’s N144.76 per unit.
Further, Central Securities and Clearing System (CSCS) Plc appreciated by N1.34 to N72.34 per share from N71.00 per share, Geo-Fluids Plc improved its price by 4 Kobo to N2.94 per unit from N2.90 per unit, and Industrial and General Insurance (IGI) Plc gained 1 Kobo to trade at 61 Kobo per share compared with Thursday’s closing price of 60 Kobo per share.
As a result, the NASD Unlisted Security Index (NSI) rose by 58.20 points to 4,188.41 points from 4,130.21 points, and the market capitalisation soared by N34.82 billion to N2.506 trillion from N2.471 trillion on Thursday.
During the session, the volume of trades went up by 180.8 per cent to 1.2 million units from 417,349 units, and the value of transactions increased by 29.8 per cent to N29.8 million from N23.2 million, while the number of deals fell by 22.6 per cent to 24 deals from 31 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 60.8 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.9 million units valued at N1.9 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
By Dipo Olowookere
The bears overpowered the Nigerian Exchange (NGX) Limited on Friday, sinking it further by 0.76 per cent when the closing gong was struck by 4 pm.
The nation’s flagship equity market was under selling pressure during the session, as investors booked profits after the shares witnessed price appreciation in the past trading sessions.
The energy sector was the most impacted, as it shed 4.43 per cent. The consumer goods index declined by 0.90 per cent, the banking counter decreased by 0.15 per cent, and the industrial goods sector lost 0.08 per cent, while the insurance counter gained 2.42 per cent, which was not enough to salvage the situation.
Consequently, the All-Share Index (ASI) contracted by 1,912.19 points to 250,330.92 points from 252,243.11 points, and the market capitalisation moderated by 1.225 trillion to N160.444 trillion from N161.669 trillion.
Zichis was the worst-performing stock for the session after it gave up 9.97 per cent to close at N29.43, FTN Cocoa slipped by 9.95 per cent to N8.96, The Initiates slumped by 9.90 per cent to N32.30, LivingTrust Mortgage Bank tumbled by 9.88 per cent to N3.83, and International Energy Insurance dropped 9.71 per cent to trade at N2.79.
The best-performing stock was ABC Transport, which grew by 10.00 per cent to N6.27. May and Baker also appreciated by 10.00 per cent to N47.30, SCOA Nigeria surged by 9.98 per cent to N33.05, Trans-Nationwide Express expanded by 9.97 per cent to N7.06, and DAAR Communications jumped 9.76 per cent to N2.25.
Yesterday, investors traded 1.1 billion shares worth N44.3 billion in 65,744 deals compared with the 1.0 billion shares valued at N41.6 billion transacted in 74,822 deals a day earlier. This indicated a dip in the number of deals by 12.13 per cent, and a rise in the trading volume and value by 10.00 per cent and 6.49 per cent, respectively.
Chams was the busiest equity for the day, with 328.5 million units sold for N1.1 billion. UBA traded 61.6 million units worth N2.7 billion, First Holdco transacted 58.7 million units valued at N4.2 billion, Secure Electronic Technology exchanged 51.9 million units worth N45.0 million, and Access Holdings traded 51.8 million units valued at N1.3 billion.
By Adedapo Adesanya
The last trading session of the week at the Nigerian Autonomous Foreign Exchange Market (NAFEX) ended on a negative note for the Naira on Friday, May 15, as it lost N15 Kobo or 0.1 per cent against the Dollar to trade at N1,371.04/$1 compared with the previous day’s N1,370.89/$1.
However, it further appreciated against the Pound Sterling in the same market segment yesterday by N20.77 to close at N1,830.61/£1 versus Thursday’s value of N1,851.38/£1, and gained N7.91 against the Euro to settle at N1,595.07/€1 versus N1,602.98/€1.
At the GTBank FX desk, the Naira lost N2 against the US Dollar during the session to sell at N1,383/$1 compared with the preceding session’s N1,381/$1, and at the black market, it remained unchanged at N1,385/$1.
The Naira is forecast to be broadly stable, supported by Dollar sales by the Central Bank of Nigeria (CBN) amid steady, higher oil receipts, with the market settling into a balance.
Policy direction is also expected to give the market some boost as the CBN said the new edition of the FX market guidelines will deepen liquidity, improve transparency and strengthen confidence in the country’s foreign exchange market.
According to the Governor of the CBN, Mr Yemi Cardoso, the update is due to changing global economic realities, domestic reforms and the need for a more coherent and forward-looking regulatory framework. According to him, the last edition of the FX manual was issued in 2018, making the latest review both timely and necessary.
Meanwhile, the cryptocurrency market plunged into the red zone as rising bond yields hit risk assets across markets, while traders are increasingly betting the Federal Reserve may need to raise rates again. Rising energy prices and resurging inflation could force central banks back into tightening mode.
Cardano (ADA) shrank by 4.4 per cent to $0.2557, Dogecoin (DOGE) slid by 3.7 per cent to $0.1104, Ripple (XRP) depreciated by 3.5 per cent to $1.41, Solana (SOL) crashed by 3.5 per cent to $87.81, and Binance Coin (BNB) slumped by 3.4 per cent to $659.64.
Further, Bitcoin (BTC) declined by 2.6 per cent to $78,547.49, Ethereum (ETH) lost 2.1 per cent to quote at $2,209.19, and TRON (TRX) tumbled by 0.7 per cent to $0.3509, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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