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 Dipo Olowookere
The presence of the bulls further strengthened the Nigerian Exchange (NGX) Limited on Tuesday, as the performance indices further gained 0.19 per cent.
The nation’s stock market survived profit-taking witnessed in the banking sector during the session, which crashed its index by 0.02 per cent.
This loss was offset by the gains recorded by the other sectors, with the insurance segment chalking up 0.49 per cent. The consumer goods space appreciated by 0.47 per cent, the industrial goods counter expanded by 0.04 per cent, and the energy sector rose by 0.03 per cent.
At the close of business, the All-Share Index (ASI) was elevated by 475.60 points to 246,659.56 points from 246,183.96 points, and the market capitalisation improved by N307 billion to N159.119 trillion from N158.812 trillion.
The market breadth index was positive yesterday after the bourse finished with 34 price gainers and 22 price losers, implying strong investor sentiment.
UPDC REIT grew by 9.86 per cent to N11.70, Thomas Wyatt advanced by 9.73 per cent to N3.72, Ikeja Hotel climbed 9.53 per cent to N46.55, The Initiates went up by 9.52 per cent to N33.95, and Neimeth increased by 9.47 per cent to N9.25.
Conversely, Mecure depreciated by 9.95 per cent to N76.95, Haldane McCall dropped 9.86 per cent to trade at N3.29, CMFC declined by 9.85 per cent to N3.02, Trans-Nationwide Express lost 9.68 per cent to close at N2.80, and Academy Press shrank by 9.38 per cent to N5.80.
The activity level was mixed during the session, as investors traded 932.5 million equities worth N49.3 billion in 50,059 deals versus the 851.6 million equities valued at N49.6 billion transacted in 56,873 deals a day earlier.
This showed that the trading volume soared by 9.50 per cent, the trading value moderated by 0.61 per cent, and the number of deals retreated by 11.98 per cent.
The busiest equity for the day was Access Holdings, which sold 336.6 million units for N8.7 billion. FCMB exchanged 88.8 million units worth N1.0 billion, First Holdco transacted 72.7 million units valued at N7.7 billion, Zenith Bank traded 37.4 million units for N4.4 billion, and UBA transacted 32.1 million units worth N1.5 billion.
By Aduragbemi Omiyale
Thirty-one companies on Tuesday emerged as winners of the 2025 licensing round of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The energy firms competed to take control of 50 oil and gas blocks put on offer by the Nigerian government.
They were among the 143 companies that submitted 200 bids for the oil facilities drawn from diverse terrains, including the Niger Delta Onshore, Niger Delta Shallow Water, Niger Delta Deep Offshore, Benin Basin Onshore, Anambra Basin Onshore, Chad Basin Onshore and Benue Trough.
Business Post gathered that investors, however, were only interested in 37 out of the 50 oil blocks put up for sale by the NUPRC. This is the first time in Nigeria’s energy history that frontier basins would attract such a level of investor interest.
The organisations that won the bids include SSonic Petroleum Limited (PPL 2A29), CFP Pipeline and Flowlines (2A30), Dutchford E&P Limited (2A32), Attabanson Global Company Limited (2A33 and PPL 901), Rosem Energy Limited (2A38), Pivot-GIS Limited (2A39), Network E&P (2A40), Asharami (2A41), LexOil (2A42), BVOF (2A43), GupscoEnergy Limited (2A44 and 2A51), Saratoga (2A45), Volante (2A46), Concept-Reel Petroleum Services Limited (2A47 and 2A55), Clinton Oil Field (2A48 and 2A62) and Nuway Oaklane Limited (2A49).
Others are Ramec (2A50), Italia (2A53), Blueridge E&P (2A54), Up Energies Limited (2A56), AYM Shafa (2A57), Blackrock Holdings Limited (2A58), Funtay Integrated Business Limited (2A59), Riparian Development and Production Limited (2A60), Nikstallis (2A61 and PPL 900), Stardeep Petroleum (PPL 2010), Dakoda & U Limited (PPL308 and PPL 800), Southborne Oil and Gas Limited (PPL 902), Lanaka Petroleum (PPL 903) HighbanResources Limited (PPL 700), Eyre Energy Limited (PPL 801).
By Adedapo Adesanya
Oil prices rose roughly 2 per cent on Tuesday as investors reacted to mounting concerns that escalating hostilities between the United States and Iran and threats by Yemen’s Houthis to blockade Saudi Arabia could disrupt global energy supplies.
Brent futures rose $1.79 or 2.0 per cent to $91.01 a barrel, while the US West Texas Intermediate (WTI) crude gained $1.68 or 2.0 per cent to settle at $84.91 per barrel.
US forces bombed targets in the south and west of Iran while Iran targeted American sites in Bahrain, Kuwait and Jordan and at least one tanker was hit in the Strait of Hormuz.
Supply concerns resurfaced with the Strait essentially closed again and tanker traffic at multi-month lows, to the level from before the ceasefire between the US and Iran, which appears to be over at the moment.
Prices could go much higher if the renewed conflict drags on for a few more months, as the world has now drained a lot of the buffers that had kept oil surges in check between March and May.
Drained strategic and commercial inventories in many key oil-consuming economies, including the US, are setting the stage for further oil price rallies during the busiest oil demand season.
The just-declared Houthi blockade on Saudi maritime shipping has already begun to witness ill-effects, as reports emerge of two oil tankers having made U-turns while initially en route toward the Suez Canal. It was reported that their crews received threats from Houthi militants in Yemen.
The two oil tankers, which loaded Saudi crude for China and India, made U-turns in the Red Sea and headed toward the Suez following the warning from the militia.
Meanwhile, Kuwait’s power and desalination plants caught fire for a second straight day as US and Iran traded strikes for a tenth day.
As Russia’s war with Ukraine expands beyond Ukraine’s borders, the Caspian Pipeline Consortium (CPC) has stopped receiving oil from Kazakhstan after suspending loadings on Monday due to attacks on oil tankers at its Black Sea terminal.
