Economy
Asian Shares Appreciate Amidst Weak Economic Data
By Investors Hub
Asian stocks ended mostly higher on Monday as weak economic data from the U.S. and China raised hopes of further stimulus from global central banks.
Data released Friday showed weaker than expected U.S. jobs growth in the month of August, while data from China showed that the country’s exports unexpectedly fell during the month.
Buoying market confidence were expectations that the European Central Bank would also cut interest rates on Thursday to boost growth.
Chinese stocks advanced as the country’s central bank pumped 120 billion yuan (about $16.94 billion) into the financial system to shore up the flagging economy.
The benchmark Shanghai Composite Index gained 25.14 points, or 0.8 percent, to close at 3,024.74, although Hong Kong’s Hang Seng Index ended marginally lower at 26,681.40.
Investors shrugged off official data showing that Chinese exports unexpectedly decreased in August amid the ongoing trade dispute with the U.S. administration.
In dollar terms, exports decreased 1 percent on a yearly basis in August, confounding expectations for an increase of 2.1 percent. At the same time, imports declined 5.6 percent, slower than the expected fall of 6.3 percent.
As a result, the trade balance showed a surplus of $34.8 billion in August versus the $42.8 billion surplus forecast by economists.
Japanese shares hit a 5-1/2-week high on hopes that central banks in some of the world’s largest economies would deploy new monetary stimulus to stave off a brewing global recession.
The Nikkei 225 Index rose 118.85 points, or 0.6 percent, to 21,318.42, its highest closing level since August 2, while the broader Topix Index closed 0.9 percent higher at 1,551.11.
Nissan Motor shares edged down slightly on a Nikkei report that Nissan CEO Hiroto Saikawa has expressed his intention to step down.
On the economic front, the Ministry of Finance said that Japan had a current account surplus of 1,999.9 billion yen in July, down 1.3 percent from last year. That was shy of expectations for a surplus of 2,046 billion yen and up from 1,211.2 billion yen in June.
The trade balance showed a deficit of 74.5 billion yen, shy of expectations for a deficit of 24.0 billion yen and down from the 759.3-billion-yen surplus in the previous month.
Japan’s economy grew an annualized 1.3 percent in the April-June quarter, weaker than the preliminary reading for 1.8 percent annualized growth on the back of softer capital spending, Cabinet Office data showed.
Australian markets fluctuated before ending roughly flat. Both the benchmark S&P/ASX 200 Index and the broader All Ordinaries Index closed marginally higher at 6,648 and 6,760.10, respectively.
The big four banks rose between 0.3 percent and 1 percent on expectations of further policy easing by the U.S. Federal Reserve and the European Central Bank. Investors are also betting that Australia’s central bank will cut interest rates more steeply than previously thought.
Mining and energy stocks ended on a subdued note as investors digested new data out of China showing that exports unexpectedly fell in August with a large contraction for shipments to the United States. Gold miners Evolution and Newcrest Mining dropped 2-3 percent as gold prices fell on improved risk appetite.
Australia’s mortgage approvals increased more-than-expected in July, figures from the Australian Bureau of Statistics showed today. The number of owner occupier loans increased 4.2 percent, much larger than the expected growth of 1.5 percent.
Seoul stocks extended gains for the fourth straight session on hopes the European Central Bank will announce new stimulus measures during its meeting slated for Thursday. Traders also remained optimistic about the upcoming U.S.-China trade talks.
The benchmark Kospi climbed 10.42 points, or 0.5 percent, to finish at 2,019.55. Market heavyweight Samsung Electronics rose 1.3 percent, while chipmaker SK Hynix rallied 2.9 percent.
Meanwhile, logistics firm Hyundai Glovis declined 1.6 percent on reports its ship accidentally tilted sideways off the east coast of the United States.
By Aduragbemi Omiyale
The Debt Management Office (DMO) on Monday allotted bonds worth N929.3 billion to investors from the N1.7 trillion bids it received from subscribers.
The exercise, which took place on Monday, July 20, 2026, was oversubscribed by market participants, reflecting the confidence investors have in the government’s ability to redeem the debt instrument on maturity.
On offer for sale for the July auction was N1.2 trillion worth of the FGN bonds, but the DMO allotted below this, despite receiving bids above the offer.
The papers were offered in 10-year, 15-year, and 20-year tenors, at N400 billion each.
For the decade-old note, investors staked N444.47 billion, but the debt office sold N245.73 billion at an 18.34 per cent coupon rate. For the one and a half-decade-old paper, bids valued at N518.00 billion were received by the DMO, with a non-competitive bid of N50.00 billion, with N302.13 billion allotted to investors at 18.40 per cent, and for the two-decade paper, the DMO got competitive bids of N665.19 billion and N381.46 billion was sold to bondholders at 18.35 per cent.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, disclosed that Nigeria’s external reserves had risen to $52.5 billion, enough to finance about nine months of imports.
He disclosed this on Tuesday at the end of the 306th meeting of the Monetary Policy Committee (MPC) held in Abuja, where the Monetary Policy Committee (MPC) retained the benchmark interest rate at 26.50 per cent as well as the standing facilities corridor at +50/-450 basis points around the MPR.
Similarly, the Cash Reserve Requirement (CRR) was maintained at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
Speaking on FX developments, the central banker said at the $52 billion level, the country’s external reserves were significantly above the internationally recommended threshold of three months of import cover.
On the Naira exchange rate, Mr Cardoso said the foreign exchange market had deepened and was now operating on a transparent willing-buyer, willing-seller basis.
He said the apex bank remained committed to maintaining a liquid and functional foreign exchange market, adding that daily market turnover sometimes exceeded $1 billion.
According to him, the long-term stability of the naira would depend on key economic fundamentals, including increased oil exports, foreign direct investment, and improved domestic productivity to reduce dependence on imports.
He also added that the MPC welcomed the federal government’s renewed commitment to stronger policy coordination, particularly collaboration between fiscal and monetary authorities, which he said had helped reduce the impact of the Middle East crisis on the Nigerian economy.
Mr Cardoso said members of the committee also commended efforts to improve crude oil production and urged relevant agencies to intensify reforms in other sectors, including solid minerals, to boost government revenue.
On the regulatory forbearance granted to banks during the COVID-19 period, he reiterated that this had been discontinued because it had served its purpose.
According to him, the policy had “outlived its time” and was no longer necessary in assessing the health of the banking sector.
“Forbearance, we felt, had outlived its time. Many of you will recall this is something that came as a result of COVID. And now we are in 2026; we did not see the reason why that should continue to form part of the analysis of the banking system,” he said.
Mr Cardoso explained that banks had begun recalibrating their portfolios following the end of the policy, leading to a temporary reduction in outstanding risk assets.
He, however, assured that the development was part of a transition towards a stronger and more sustainable credit environment.
“It reflects a transition to a more sustainable and better quality credit environment, which is what we all want. We don’t want unanticipated shocks that come in a boom-and-bust fashion,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its recent positive run by 1.17 per cent on Tuesday, July 21, triggered by appreciation seen in four bellwethers.
Leading the pack was FrieslandCampina Wamco Nigeria Plc, which added N12.00 to its value to close at N153.15 per share compared with the previous day’s N141.15 per share. NASD Plc appreciated by N1.90 to N36.00 per unit from N34.10 per unit, Food Concepts Plc improved by 23 Kobo to N2.48 per share from N2.25 per share, and Afriland Properties Plc grew by a marginal 1 Kobo to N15.01 per unit from N15.00 per unit.
As a result, the market capitalisation of the bourse increased by N30.40 billion to N2.637 trillion from Monday’s N2.606 trillion, and the NASD Security Index (NSI) gained 50.70 points to finish at 4,393.97 points, in contrast to the 4,343.27 points it ended a day earlier.
The unlisted securities exchange recorded a price loser yesterday, and it was Geo-Fluids Plc, which shed 1 Kobo to settle at N2.30 per share versus N2.31 per share.
During the trading day, the volume of securities traded by market participants on Tuesday dropped 99.4 per cent to 322,147 units from the previous day’s 52.6 million units, the value of securities dipped by 89.8 per cent to N19.4 million from the preceding session’s N191.2 million, and the number of deals contracted by 3.6 per cent to 27 deals from 28 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 traded for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 75.4 million units exchanged for N5.3 billion.
GNI Plc also closed 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 valued at N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
