Economy
Most Asian Shares Rise After US Govt Debt Yields Fall
By Investors Hub
Most Asian stocks rose on Friday after U.S. government debt yields fell from multi-year highs reached on Wednesday, helping ease worries about inflation and higher interest rates.
The dollar edged up against the yen on improved risk appetite and oil held onto overnight gains after an unexpected drawdown in U.S. crude inventories, while gold prices dipped on dollar strength and remained on track for their sharpest weekly drop in two-and-a-half months.
Japanese shares eked out modest gains as bond markets regained stability. The Nikkei 225 Index rose 156.34 points or 0.7 percent to 21,892.78, while the broader Topix Index closed 0.8 percent higher at 1,760.53.
Exporters Canon, Toyota Motor, Honda Motor and Panasonic rose between 0.6 percent and 1.4 percent as the dollar edged up against the yen and other currencies. Oil firm Inpex rallied 2.1 percent and Japan Petroleum rose 1.1 percent.
In economic news, the Ministry of Internal Affairs and Communications said that overall nationwide consumer prices in Japan climbed an annual 1.4 percent in January. That exceeded forecasts for 1.3 percent and was up from 1.0 percent in December.
Australian stocks extended gains for the third straight session, with mining and energy stocks leading the way higher after oil prices rose around 1.5 percent Thursday.
The benchmark S&P/ASX 200 Index climbed 48.90 points or 0.8 percent to 5,999.80, while the broader All Ordinaries Index advanced 47.50 points or 0.8 percent to 6,105.20.
Energy majors Beach Energy, Origin Energy, Oil Search and Woodside Petroleum rose between half a percent and 0.8 percent. Commonwealth Bank of Australia advanced 1.1 percent after it denied most of the claims against it alleging breaches of money laundering laws.
Mining giant BHP Billiton rallied 1.6 percent to extend gains for the second straight session as Chinese iron ore prices ticked higher. Rival Rio Tinto and Fortescue Metals Group gained 0.8 percent and 1.6 percent, respectively.
Gold miners Newcrest Mining and Evolution rose 1-2 percent after a modest increase in gold prices overnight. Shares of Accent Group, brand owner of The Athlete Foot, soared 18.5 percent after the company lifted its first-half profit by 19 percent.
Regis Healthcare climbed 8.4 percent despite the company posting lower half-year profits. Woolworths Group tumbled 2.6 percent despite the retail giant reporting a 38 percent jump in first-half profit.
China’s Shanghai Composite Index closed up 20.68 points or 0.6 percent at 3,289.02, while Hong Kong’s Hang Seng Index jumped 301.49 points or 1 percent to 31,267.17.
Economy
NASD OTC Securities Exchange Closes Flat
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Thursday, December 12 after it ended the trading session with no single price gainer or loser.
As a result, the market capitalisation remained unchanged at N1.055 trillion as the NASD Unlisted Security Index (NSI) followed the same route, remaining at 3,012.50 points like the previous trading session.
However, the activity chart witnessed changes as the volume of securities traded at the bourse went down by 92.5 per cent to 447,905 units from the 5.9 million units transacted a day earlier.
In the same vein, the value of securities bought and sold by investors declined by 86.6 per cent to N3.02 million from the N22.5 million recorded in the preceding trading day.
But the number of deals carried out during the session remained unchanged at 21 deals, according to data obtained by Business Post.
When trading activities ended for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, Okitipupa Plc came next with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc was in third place with 297.5 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units sold for N5.3 billion.
Economy
Naira Firms to N1,534/$1 at NAFEM, Crashes to N1,680/$1 at Black Market
By Adedapo Adesanya
The Naira appreciated against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N14.79 or 0.9 per cent to trade at N1,534.50/$1 compared with the preceding day’s N1,549.29/$1 on Thursday, December 12.
The strengthening of the domestic currency during the trading session was influenced by the introduction of the Electronic Foreign Exchange Matching System (EFEMS) by the Central Bank of Nigeria (CBN).
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN; publication of real-time prices and buy-sell orders data from this system has lent support to the Naira at the official market.
Equally, the local currency improved its value against the British Pound Sterling by N3.91 to wrap the session at N1,954.77/£1 compared with the previous day’s N1,958.65/£1 and against the Euro, the Nigerian currency gained N2.25 to sell for N1,610.41/€1 versus N1,612.66/€1.
However, in the black market, the Naira crashed further against the US Dollar on Thursday by N10 to quote at N1,680/$1 compared with Wednesday’s closing rate of N1,670/$1.
Meanwhile, the cryptocurrency market majorly corrected after earlier gains as US President-elect Donald Trump reiterated his ambition to embrace crypto assets, but a bond market rout dragged risk assets lower.
Mr Trump said, “We’re going to do something great with crypto” while ringing the opening bell at the New York Stock Exchange, reiterating his ambition to embrace digital assets in the world’s largest economy and create a strategic bitcoin reserve.
Alongside, the European Central Bank trimmed its benchmark interest rates by 25 basis points and in its dovish policy statement hinted that more rate cuts were likely to happen.
The biggest loss was made by Cardano (ADA), which fell by 4.9 per cent to trade at $1.10, followed by Ripple (XRP), which slid by 4.1 per cent to $2.33 and Dogecoin (DOGE) recorded a value depreciation of 2.9 per cent to sell at $0.4064.
Further, Solana (SOL) slumped by 1.8 per cent to $225.89, Binance Coin (BNB) slipped by 1.3 per cent to $746.92, Bitcoin (BTC) declined by 0.6 per cent to $99,998.18, Ethereum (ETH) crumbled by 0.5 per cent to $3,909.43, and Litecoin (LTC) dipped by 0.3 per cent to $121.52, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
Economy
Oil Market Falls on Expected Increase in Supply Surplus
By Adedapo Adesanya
The oil market slumped on Thursday, pressured by an expected increase in supply, supported by rising expectations of a Federal Reserve interest rate cut.
The International Energy Agency (EIA) made a slight upward revision to its demand outlook for next year but still expected the oil market to be comfortably supplied, with Brent crude futures losing 11 cents or 0.15 per cent to trade at $73.41 per barrel and the US West Texas Intermediate (WTI) crude futures declining by 27 cents or 0.38 per cent to finish at $70.02 per barrel.
The IEA in its monthly oil market report increased its 2025 global oil demand growth forecast to 1.1 million barrels per day from 990,000 barrels per day last month, largely in Asian countries due to the impact of China’s recent stimulus measures.
At the same time, the IEA expects nations not in the Organisation of the Petroleum Exporting Countries and Allies (OPEC+) group to boost supply by about 1.5 million barrels per day next year, driven by the US, Canada, Guyana, Brazil and Argentina – more than the rate of demand growth.
On Wednesday, OPEC cut its demand growth forecast for 2024 for the fifth straight month.
The IEA said that, even excluding the return to higher output quotas, its current outlook is to a 950,000 barrels per day supply overhang next year, which is almost 1 per cent of the world’s supply.
The Paris-based agency said this would rise to 1.4 million barrels per day if OPEC+ goes ahead with its plan to start unwinding cuts from the end of next March.
Next year’s surplus could make it harder for OPEC+ to bring back production. The hike was earlier due to start in October 2024, but OPEC+ has delayed it amid falling prices.
Meanwhile, inflation rose slightly in November increasing the possibility of a US Federal Reserve rates cut again as the data fed optimism about economic growth and energy demand.
Support also came as crude imports in China grew annually for the first time in seven months in November, up more than 14 per cent from a year earlier.
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