Economy

Asian Equities Crash Amid Fresh Liquidity Injections in China

Published

6 years ago

16/03/2020

By Investors Hub

Asian stocks fell sharply on Monday despite emergency rate cuts by the U.S. Federal Reserve and the Reserve Bank of New Zealand and a fresh round of liquidity injections in China. Weak economic data from China added to investor worries about the impact of the coronavirus.

Chinese stocks fell after the release of dismal industrial data. The benchmark Shanghai Composite Index tumbled 98.17 points, or 3.4 percent, to 2,789.25, while Hong Kong’s Hang Seng Index slumped 969.34 points, or 4 percent, to 23,063.57.

China’s central bank added more funds into the banking system today but kept its borrowing cost unchanged after the U.S. Federal Reserve unexpectedly reduced interest rates by a steep 100 basis points.

The central bank last week had reduced the reserve requirement ratio by 50-100 basis points for qualifying banks to shore up the economy hit by the outbreak of covid-19.

In economic news, official data showed that Chinese industrial production and retail sales plunged more than expected at the start of the year amid a widespread shutdown of manufacturing operations.

Industrial production plunged 13.5 percent in the January to February period after rising 6.9 percent in December, the National Bureau of Statistics said. Economists had forecast a moderate 3 percent decrease.

Retail sales logged a sharp fall of 20.5 percent, reversing an 8 percent increase in December. Sales were forecast to drop only 4 percent.

Fixed asset investment was down 24.5 percent versus a 5.4 percent rise in January to December 2019. The jobless rate surged to 6.2 percent.

Home sales decreased 34.7 percent annually in the first two months of 2020, while property investment fell 16.3 percent after rising 9.9 percent in January to December 2019.

Japanese shares fluctuated before finishing lower despite the Bank of Japan announcing emergency monetary policy measures and core machinery orders data, an indicator of capital spending in the coming six to nine months, pointing to a rebound.

The total value of core machine orders in Japan climbed a seasonally adjusted 2.9 percent sequentially in January, the Cabinet Office said, coming in at 839.4 billion yen. That exceeded expectations for a decline of 1.0 percent following the upwardly revised 11.9 percent decline in December (originally -12.5 percent).

On a yearly basis, core machine orders eased 0.3 percent – again beating forecasts for a drop of 1.1 percent following the 3.5 percent decline in the previous month.

The Nikkei 225 Index tumbled 429.01 points, or 2.5 percent, to 17,002.04, while the broader Topix closed 2 percent lower at 1,236.34.

Australian markets extended their sell-off into a fourth week and plunged deep into bear market territory despite the Reserve Bank of Australia pumping extra liquidity into the banking system to ensure businesses and households have access to credit amid the coronavirus outbreak.

The benchmark S&P/ASX 200 Index plummeted 537.30 points, or 9.7 percent, to 5,002.00, marking the biggest loss since the Black Monday crash in 1987. The broader All Ordinaries Index ended down 532.50 points, or 9.5 percent, at 5,058.20.

Energy stocks succumbed to heavy selling pressure, with Woodside Petroleum, Santos, Oil Search and Beach Energy falling 14-20 percent. The big four banks gave up 10-12 percent.

Miners heavyweights BHP, Fortescue Metals Group and Rio Tinto dropped 3-6 percent, while gold miner Evolution Mining plunged 11.4 percent, Newcrest lost 13.2 percent and Regis Resources declined 13 percent.

Hearing implants maker Cochlear plummeted 19 percent after withdrawing its earnings outlook.

South Korea’s Kospi dropped 56.58 points, or 3.2 percent, to 1,714.86 as the mainstay industries such as automobiles and steel faced a crisis for their first quarter performance.

Economy

Dangote Values Refinery at $39bn, Seeks $1bn in Private Placement

Published

10 hours ago

11/06/2026

Adedapo Adesanya

By Adedapo Adesanya

Dangote Petroleum Refinery is seeking to raise about $1 billion through a private placement that values the company at $39.1 billion.

According to reports, the refinery is offering 3 billion ordinary shares at $0.35 per share. Investors must subscribe for at least 1 million shares, equal to $350,000, with additional subscriptions accepted in multiples of 500,000 shares. The shares will be subject to a 365-day lock-up period from allotment.

It was reported that demand for the offer has already exceeded $2 billion, suggesting that the placement may be oversubscribed.

The operation is already attracting the interest of local investors. Recall that Nigerian billionaire, Mr Femi Otedola, has committed $100 million, while Afrobeats superstar, Mr David Adeleke, popularly known as Davido, also announced he would participate.

The proceeds will be used for expansion projects and general corporate purposes as the refinery deepens its role in Nigeria’s fuel supply market.

The facility has a nameplate capacity of 650,000 barrels per day and began fuel production in 2024. It produces diesel, aviation fuel, naphtha and premium motor spirit.

Standard Bank Group has also said it plans to play a leading role in the refinery’s future public listing, after the facility completed test runs at 700,000 barrels per day. It aims to reach 1.4 million barrels per day by 2028.

The fundraising is likely to renew expectations of a future public listing with a major stakeholder, Mr Aliko Dangote, saying the refinery could be listed, though no timeline was disclosed in the memorandum.

The current placement is seen as an early step that could expand ownership ahead of any future initial public offering (IPO).

Mr Dangote plans to sell between 5 and 10 per cent of the refinery on five major African exchanges: the Nigerian Exchange (NGX), the Johannesburg Stock Exchange (JSE), the BRVM, the Nairobi Securities Exchange (NSE) and the Ghana Stock Exchange (GSE).

It has appointed Stanbic IBTC Capital, Vetiva Capital Management and FirstCap to lead the planned initial public offering of its refinery business on the Nigerian Exchange.

Economy

Investors Lose N3.1bn as NASD Exchange Remains Red

Published

14 hours ago

11/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange entered a third straight day of losses after it fell by 0.12 per cent on Wednesday, June 10.

The depletion trimmed the market capitalisation further by N3.1 billion to N2.590 trillion from N2.593 trillion, and cut the NASD Unlisted Security Index (NSI) by 5.19 points to 4330.12 points from 4,335.31 points.

11 Plc lost N22.21 during the session to finish at N221.00 per share versus the previous day’s N243.21 per share, MRS Oil Plc depreciated by N6.90 to N158.10 per unit from N165.00 per unit, and Central Securities Clearing System (CSCS) Plc decreased by N2.81 to N78.32 per share from N81.13 per share.

On the flip side, FrieslandCampina Wamco Nigeria Plc went up by N9.27 to N183.08 per unit from N173.81 per unit, Nitrox Industrial Gases Plc added N1.92 to its value to close at N23.80 per share compared with the preceding day’s N21.88 per share, and Food Concepts Plc gained 10 Kobo to exchange at N2.58 per unit, in contrast to Tuesday’s closing price of N2.48 per unit.

At the close of business, the volume of securities traded by investors contracted by 92.6 per cent to 117,374 units from 1.6 million units, and the value of securities moderated by 80.5 per cent to N12.2 million from N62.3 million, while the number of deals increased by 4.9 per cent to 43 deals from 41 deals.

Great Nigeria Insurance (GNI) Plc finished the day as the most traded stock by value on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units traded for N6.5 billion, and CSCS Plc with 65.2 million units exchanged for N4.4 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 valued at N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million

Economy

Naira Crashes to N1,362.05/$1 at Official Window After N1.50 Loss

Published

15 hours ago

11/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira fell against the United States Dollar by N1.50 or 0.11 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) to sell at N1,362.05/$1 on Wednesday, June 10, compared with the N1,360.55/$1 it traded on Tuesday.

Also, the local currency lost N4.33 against the Pound Sterling in the official window yesterday to trade at N1,827.33/£1 versus the preceding day’s N1,823.00/£1, and depreciated against the Euro by N1.74 to quote at N1,575.35/€1, in contrast to N1,573.61/€1 of the previous session.

However, at the GTBank forex desk, the Naira gained N3 against the US Dollar to sell at N1,370/$1 versus N1,373/$1, and at the parallel market, it remained unchanged at N1,380/$1.

Updated data from the Central Bank of Nigeria (CBN) showed that foreign reserves surged further due to additional inflows from various sources. Nigeria’s gross external reserves increased to $50.439 billion, its highest level since March 2026, reflecting sustained inflows from oil revenue and other FX sources.

Also, the International Monetary Fund (IMF) has said increased confidence in the Naira, supported by lower and more stable inflation, would encourage households, businesses and investors to hold more local currency assets and reduce reliance on foreign currencies.

The global lender, in a recent assessment, stressed the importance of strengthening the CBN’s operational framework and aligning liquidity management operations more closely with monetary policy objectives.

In the cryptocurrency market, there were recoveries from recent losses as US headline inflation rose an expected 0.5 per cent in May, but the beat on the core rate — which cuts out food and energy costs — pleased markets. The core rate, though, rose just 0.2 per cent in May against forecasts for 0.3 per cent.

The print reinforces the view that the US Federal Reserve will keep interest rates at 350-375 basis points at its June 17 meeting, but is likely to increase rates by 25 basis points by the end of the year.

Cardano (ADA) went up by 2.4 per cent to $0.1647, Bitcoin (BTC) rose by 2.3 per cent to $62,794.09, Binance Coin (BNB) jumped 1.8 per cent to $596.23, Ethereum (ETH) grew by 1.7 per cent to $1,658.12, and Solana (SOL) also soared by 1.7 per cent to $65.23.

Further, Dogecoin (DOGE) appreciated by 1.5 per cent to $0.0849, Ripple (XRP) expanded by 0.4 per cent to $1.11, and TRON (TRX) increased by 0.05 per cent to $0.3218, while the US Dollar Tether (USDT) lost 0.10 per cent to close at $0.9989, and the US Dollar Coin (USDC) declined by 0.01 per cent to $0.9997.