Economy

Asian Shares Close Lower on Weak Japanese Data

Published

5 years ago

29/11/2019

By Investors Hub

Asian stocks moved mostly lower on Friday in the absence of fresh cues from Wall Street and after the release of weak Japanese data. Caution prevailed amid worries that tensions between the U.S. and China over Hong Kong could delay a potential phase one trade deal.

Chinese shares hit a three-month low as investors fretted about Hong Kong unrest and uncertainty over the prospects for a U.S.-China trade deal. The Shanghai Composite Index slid 17.71 points or 0.6 percent to 2,871.98, while Hong Kong’s Hang Seng Index plunged 547.24 points or 2 percent to 26,346.49.

Tokyo shares ended lower amid lingering trade tensions and a lack of overnight cues from Wall Street. The Nikkei 225 Index dropped 115.23 points or 0.5 percent to 23,293.91, while the broader Topix closed 0.5 percent lower at 1,699.36. Exporters ended mixed, with Toyota Motor falling 1.1 percent, while Panasonic rallied 2.3 percent.

Official data showed Japanese industrial production declined more than expected in October, signaling a notable contraction in GDP during the fourth quarter. The unemployment rate remained unchanged as expected in October, a separate report revealed.

According to preliminary data, industrial production plunged 4.2 percent month-on-month in October, in contrast to September’s 1.7 percent increase. Economists had forecast a moderate decrease of 2 percent.

On a yearly basis, industrial production decreased by 7.4 percent after rising 1.3 percent a month ago. The unemployment rate held steady at seasonally adjusted 2.4 percent in October, matching economists’ expectations.

Australian markets gave up early gains to finish modestly lower in thin trading after five sessions of gains. The benchmark S&P/ASX 200 Index slipped 18.00 points or 0.3 percent to 6,846.00, while the broader All Ordinaries Index fell 17.60 points or 0.3 percent to 6,948.

Banks Commonwealth, NAB and Westpac ended down between 0.7 percent and 1.1 percent amid increased speculation of further rate cuts by the Reserve Bank of Australia next year.

Healthcare stocks rose modestly to extend gains from the previous session. Gold miners Newcrest and Evolution fell around 1 percent as the precious metal remained on track for its worst month in three years.

Select Harvests’ shares jumped 6.9 percent after the horticultural firm said its almond harvest for the full year exceeded its own upgraded forecast in August.

Seoul stocks fell sharply amid selling by foreign investors as Hong Kong braced for a fresh round of protests over the weekend. The benchmark Kospi tumbled 30.64 points or 1.5 percent to 2,087.96.

The Bank of Korea retained its benchmark interest rate after lowering it twice this year. The Board said it would maintain its accommodative monetary policy stance and judge whether to adjust the degree of monetary policy accommodation while carefully monitoring developments in the U.S.-China trade negotiations.

Economy

Naira Weakens to N1,547/$1 at Official Market, N1,670/$1 at Black Market

Published

9 minutes ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.

It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.

The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.

At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.

As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.

A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.

The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.

The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.

The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.

Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.

Economy

Dangote Refinery Makes First PMS Exports to Cameroon

Published

1 hour ago

12/12/2024

Aduragbemi Omiyale

By Aduragbemi Omiyale

The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.

In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.

However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.

In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.

Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.

Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.

“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.

“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.

His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.

“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.

“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”

Economy

Strong Investor Sentiment Keeps NGX Index in Green Territory by 0.31%

Published

1 hour ago

12/12/2024

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited remained in the green territory on Wednesday after it rallied by 0.31 per cent on the back of sustained bargain-hunting activities by investors.

Business Post reports that all the key sectors of the market closed higher at midweek as a result of the renewed interest in local equities.

Data showed that the energy index appreciated by 2.59 per cent, the insurance space grew by 2.34 per cent, the industrial goods sector improved by 0.15 per cent, the banking counter expanded by 0.06 per cent, and the consumer goods industry rose by 0.04 per cent.

At the close of business, the All-Share Index (ASI) gained 302.71 points to settle at 98,509.68 points compared with Tuesday’s closing value of 98,206.97 points and the market capitalisation added N183 billion to close at N59.715 trillion versus the preceding day’s N59.532 trillion.

It was observed that the level of activity yesterday waned as the trading volume, value and number of deals decreased by 65.93 per cent, 49.22 per cent, and 12.70 per cent, respectively.

On Wednesday, a total of 320.1 million stocks valued at N6.5 billion were transacted in 7,943 deals, in contrast to the 939.4 million stocks worth N12.8 billion traded in 9,098 deals.

The busiest equity at midweek was eTranzact, which transacted 70.3 million units for N474.2 million, Universal Insurance traded 23.8 million units worth 8.1 million, Zenith Bank exchanged 21.2 million units valued at N933.5 million, FBN Holdings sold 18.6 million units worth N491.2 million, and UBA traded 14.0 million units valued at N465.8 million.

At the close of transactions, 34 shares ended on the gainers’ log and 17 shares finished on the losers’ chart, representing a positive market breadth index and strong investor sentiment.

Africa Prudential gained 10.00 per cent to quote at N14.30, Conoil also improved by 10.00 per cent to N352.00, and RT Briscoe expanded by 10.00 per cent to N2.42, as Golden Guinea Breweries jumped by 9.95 per cent to N7.18, while NEM Insurance grew by 9.74 per cent to N10.70.

However, Julius Berger lost 10.00 per cent to close at N155.25, Secure Electronic Technology shed 9.52 per cent to trade at 57 Kobo, Multiverse declined by 7.63 per cent to N5.45, Haldane McCall tumbled by 6.07 per cent to N4.95, and Honeywell Flour crashed by 5.62 per cent to N4.70.