Economy
Asian Equities Decline as Trump, Kim Leave Vietnam With No Deal
By Investors Hub
Asian stocks ended Thursday’s session mostly lower as comments by U.S. Trade Representative Robert Lighthizer dampened recent optimism about the U.S.-China trade talks.
Investor sentiment was also dented by weak data from China and news that U.S. President Donald Trump and North Korean leader Kim Jong Un abruptly ended summit talks earlier than scheduled.
Chinese shares fell as weak data reinforced fears that the world’s second-largest economy is losing momentum.
The benchmark Shanghai Composite Index dropped 12.87 points or 0.4 percent to 2,940.95, while Hong Kong’s Hang Seng Index fell 124.26 points or 0.4 percent to 28,633.18.
Activity in China’s vast manufacturing sector continued to contract in February, and at a faster rate, the latest survey from the National Bureau of Statistics revealed with a manufacturing PMI score of 49.2.
That missed expectations for a score of 49.5, which would have been unchanged from the previous month.
The non-manufacturing PMI came in with a score of 54.3 in February – shy of expectations for 54.5 and down from 54.7 in the previous month.
Japanese shares fell as hopes for progress in U.S-China trade talks faded and a historic summit ended without agreement on the denuclearization of the Korean Peninsula. Weak industrial output and retail sales data also weighed on markets.
The Nikkei 225 Index slid 171.35 points or 0.8 percent to 21,385.16, while the broader Topix closed 0.8 percent lower at 1,607.66.
Machinery and shipping stocks fell the most, with Fanuc, Mitsui OSK Lines and Komatsu falling 2-3 percent. Gaming firm Nexon Co. soared 4.7 percent on buzz that its holding firm NXC Corp. is up for grabs.
In economic news, industrial production in Japan plunged a seasonally adjusted 3.7 percent in January, a government report showed. That missed expectations for a decline of 2.5 percent following the 0.1 percent dip in December.
The total value of retail sales in Japan was down a seasonally adjusted 2.3 percent sequentially in the month, missing expectations for a decrease of 0.8 percent following the 0.9 percent increase in December.
Meanwhile, Australian markets eked out modest gains, with financials and healthcare companies leading the surge.
The benchmark S&P/ASX 200 Index rose 18.70 points or 0.3 percent to 6,169, taking the monthly gain to over 5 percent, its biggest monthly gain since July 2016. The broader All Ordinaries Index ended up 19.10 points or 0.3 percent at 6,252.70.
The big four banks rose between 0.4 percent and 1.3 percent in light of a less harsh outcome from a bank inquiry into financial misconduct. Healthcare stocks witnessed defensive buying, with CSL jumping 3.1 percent.
Ramsay Health Care surged up 5.9 percent as it reported a nearly 10 percent increase in first-half profits and reaffirmed its outlook for full-year earnings.
Mining stocks ended mixed after the release of weaker Chinese factory data. BHP fell 1.2 percent and Fortescue Metals Group tumbled 5.2 percent, while Rio Tinto rose over 1 percent.
On the data front, reports on private capital spending and private sector credit proved to be a mixed bag.
Seoul stocks closed sharply lower as the U.S.-North Korea summit ended abruptly with no deal. The benchmark Kospi plunged 39.35 points or 1.8 percent to 2,195.44 ahead of a long holiday weekend.
The local markets will be closed Friday to commemorate the March 1 Independence Movement, which took place in 1919.
Tech stocks succumbed to heavy selling pressure, with LG Electronics, Samsung Electronics and SK Hynix losing 2-5 percent.
Investors ignored positive industrial output data showing that production in South Korea climbed a seasonally adjusted 0.5 percent in January, rebounding from the 0.8 percent contraction in December.
By Adedapo Adesanya
Aradel Holdings Plc is set to commence production of Premium Motor Spirit (PMS) at its modular refinery in 2027, following the removal of fuel subsidies and the deregulation of the downstream petroleum market.
According to Aradel’s general manager of refinery, Mr Temitayo Ogunbanjo, the removal of government control over fuel prices had created an opportunity for the company to begin manufacturing petrol.
Speaking on the sidelines of a conference in Abuja, Mr Ogunbanjo told Bloomberg that the company’s 11,000 barrels-per-day modular refinery currently already produces kerosene, diesel, gas oil and naphtha.
He noted that the deregulation of the downstream petroleum market has now created a pathway for Aradel to commence gasoline production at its refinery.
He added that Aradel is also considering an expansion of the refinery, with the company assessing potential crude supply sources and export logistics as part of its plans.
The company’s integrated operations across crude oil production, refining and distribution have benefited from recent volatility in global oil markets triggered by the US-Iran war, he told the publication.
Mr Ogunbanjo also disclosed that Aradel is considering investments in aviation fuel production, as the product has emerged as an important export to the European market.
The planned petrol production is expected to further expand Aradel’s refining operations as Nigeria’s downstream petroleum sector adjusts to the post-subsidy regime and increased private-sector participation.
It could also mean competition for other dominant refiners and importers, particularly the 700,000 barrels per day Dangote Refinery. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that Dangote supplied 87.55 per cent of Nigeria’s petrol demand in May 2026.
By Adedapo Adesanya
The decline in the share price of Central Securities Clearing System (CSCS) Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.02 per cent on Wednesday, August 12.
The securities depository company suffered a N10.88 loss to close at N106.00 per unit compared with the previous day’s N116.88 per unit.
As a result, the market capitalisation, for the third time this week, closed lower, losing N28.04 billion to finish at N2.720 trillion compared with the N2.748 trillion it ended a day earlier. The NASD Security Index (NSI) dropped 46.71 points to end at 4,532.03 points versus Tuesday’s 4,578.74 points.
Yesterday, there was a price gainer, which was FrieslandCampina Wamco Nigeria Plc. Its price increased by N13.50 to N170.00 per share from N156.50 per share.
The level of activity for the session waned on Wednesday, with the volume of securities down by 89.8 per cent to 150,340 units from the previous session’s 1.5 million units. The value of securities slumped by 55.9 per cent to N18.7 million from N42.3 million, and the number of deals depreciated by 37.3 per cent to 32 deals from Tuesday’s 51 deals.
At the close of business, Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and CSCS Plc with 77.2 million units traded for N5.5 billion.
GNI Plc was also 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 exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
By Adedapo Adesanya
Foreign exchange (FX) pressure eased on the Naira on Wednesday. August 12, at the Nigerian Autonomous Foreign Exchange Market (NAFEX). Its value appreciated against the United States Dollar by 0.17 per cent or N2.31 to close at N1,360.58/$1 compared with the previous day’s N1,364.89/$1.
The Nigerian Naira also improved its value against the Pound Sterling at midweek at the official FX market by N1.62 to quote at N1,840.99, in contrast to Tuesday’s rate of N1,842.61/£1. It gained N3.49 against the Euro during the session to settle at N1,572.01/€1 versus the preceding session’s N1,575.50/€1.
However, the Naira depreciated against the greenback yesterday at the GTBank forex counter by N3 to sell for N1,370/$1 compared with the previous day’s N1,367/$1, and at the parallel market, it maintained stability at N1,395/$1.
Data from the Central Bank of Nigeria (CBN) indicated that interbank FX turnover rose sharply by 481 per cent to $168.758 million from $29.060 million due to an increase in banks’ activities as intermediaries for their customers.
The apex bank data indicated that the number of deals at the interbank FX market surged to 190 from 47 the previous day.
As for the digital currency market, benchmarked tokens were more positive in line with the US inflation report that eased nerves but failed to spark a broad crypto rally.
Headline inflation rose 0.1 per cent on the month and 3.4 per cent on the year, with the core measure that strips out food and energy up 0.2 per cent and easing to 2.5 per cent.
July inflation matched forecasts, reinforcing expectations that the Federal Reserve can wait on further rate moves and prompting modest gains in gold, equities and some digital assets.
TRON (TRX) grew by 0.7 per cent to $0.3374, Binance Coin (BNB) jumped by 0.4 per cent to $612.84, Ethereum (ETH) rose by 0.3 per cent to $1,892.73, Solana (SOL) increased by 0.3 per cent to $76.37, and Bitcoin (BTC) added 0.2 per cent to sell at $63,768.51.
On the flip side, DOGE slipped by 1.6 per cent to $0.0705, Cardano (ADA) lost 1.1 per cent to end at $0.1844, and Ripple (XRP) declined by 0.7 per cent to $1.01, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
