Economy
Asian Shares Tumble as US Markets Record Overnight Plunge
By Investors Hub
Asian stocks fell sharply on Thursday after U.S. shares plunged overnight on the back of disappointing corporate earnings and weak economic data.
Lingering concerns about global economic growth, worries about the U.S.-China trade war and rising geopolitical tensions also dented investor sentiment.
Mainland Chinese shares bucked the global downtrend to end little changed after recent heavy losses. The benchmark Shanghai Composite index finished marginally higher at 2,603.80, although Hong Kong’s Hang Seng Index tumbled 255.32 points or 1 percent to 24,994.46.
Japanese shares closed near seven-month lows, with chip-related stocks taking a heavy beating after a steep drop on Wall Street pulled the Nasdaq into correction territory.
The Nikkei 225 Index plunged 822.45 points or 3.7 percent to 21,268.73, the lowest closing level since March 29th. The broader Topix Index plummeted 3.1 percent to 1,600.92, a fresh one-year low.
Semiconductor maker Tokyo Electron tumbled 2.3 percent, Advantest lost 9.8 percent and Screen Holdings plunged 7 percent.
Exporters Canon, Toyota Motor, Honda Motor and Sony also fell 3-5 percent as the yen and the Swiss franc rose against the dollar. Sharp Corp nosedived 9 percent after cutting its April-September sales estimate.
Australian stocks tumbled heavily to wipe out all the gains over the past 12 months and dive into a technical correction. The benchmark S&P/ASX 200 Index fell 164.90 points or 2.8 percent to 5,664.10, marking its worst performance since February. The broader All Ordinaries Index ended down 167 points or 2.8 percent at 5,759.50.
BHP Billiton, Rio Tinto, Fortescue Metals Group, South32 and Whitehaven Coal lost 4-7 percent after base metal prices fell across the board.
The big four banks also fell more than 2 percent, while wealth manager AMP plunged 24.5 percent. Investment bank Macquarie Group dropped 3.2 percent and insurer Suncorp gave up 2 percent.
In the healthcare sector, Bellamy’s Australia slumped 6 percent to extend losses from the previous session on brokerage downgrades.
Meanwhile, gold miners Evolution and Newcrest eked out modest gains as gold prices climbed towards a more than three-month high on safe-haven demand.
South Korean stocks tumbled to a 21-month low on concerns about weak U.S. earnings, the U.S.-China trade war and mounting geopolitical tensions.
The benchmark Kospi slumped 34.28 points or 1.6 percent to 2,063.30, extending losses for a third straight session. Automaker Hyundai Motor plunged 6 percent after its third quarter net profit fell 67 percent from last year. Its affiliate Kia Motors also ended down about 6 percent.
Economy
FG Offers 18% Interest on Savings Bonds
By Adedapo Adesanya
The federal government is offering two new savings bonds with interest rates between 17 and 18 per cent through the Debt Management Office (DMO).
In a statement by the agency, the country said retail investors can purchase the two-year bond maturing in January 2027 at 17.23 per cent interest, while the three-year paper maturing in January 2028 at a coupon rate of 18.23 per cent.
Bonds are very safe financial instrument that serve as investments because they are backed by the federal government, which promises to pay back the money.
According to the DMO, people can buy these bonds starting January 13, 2025, until January 17, 2025, with allotment expected on January 22, 2025, and the interest to be paid to investors every three months – in April, July, October, and January.
These bonds have some special features. They are tax-free under both company and personal tax laws.
Big investors like pension funds and trustees are allowed to buy them and each bond costs N1,000 each.
However, interested investor can only buy at least N5,000 worth, and can’t buy more than N50 million.
This comes after the Ms Patience Oniha-led debt office said the Nigerian government was offering three bonds worth N150 billion in September 2024.
Economy
Reps Express Readiness to Pass Tax Reform Bills
By Aduragbemi Omiyale
The House of Representatives has said it would make efforts to pass the controversial tax reform bills forwarded to the National Assembly by President Bola Tinubu last year.
Mr Tinubu, in a bid to improve revenue of the government, asked the parliament to pass the bills, but this has been resisted mostly by northern lawmakers and others.
At the resumption of plenary session on Tuesday in Abuja, the Speaker of the House of Representatives, Mr Abbas Tajudeen, assured that the green chamber of the legislative arm of government would prioritise the tax reform bills.
“The legislative agenda of the House for 2025 prioritises the passage of the Appropriation Bill and the Tax Reform Bills, both of which are pivotal to economic recovery and fiscal stability.
“These reforms are essential for broadening the tax base, improving compliance and reducing dependency on external borrowing.
“The House will ensure that these reforms are equitable and considerate of the needs of all Nigerians, particularly the most vulnerable,” Mr Abbas said through the Deputy Speaker, Mr Ben Kalu, who presided over the session.
He also expressed grief over the loss of lives in stampedes in Ibadan, Abuja and Anambra State last month due to hardship in the country.
Several Nigerians died in the stampedes while trying to receive palliatives given to alleviate their sufferings.
“Tragic events, such as the stampedes in Ibadan, Abuja and Okija, during the distribution of palliative aid, underline the urgent need for improved planning and safety protocols in humanitarian efforts. On behalf of the House, I extend our deepest sympathies to the families and communities affected.
“These incidents serve as a stark reminder of the socio-economic hardships facing our citizens and the imperative for policies that tackle hunger and poverty at their roots.
“Turning to the economy, 2024 presented both difficulties and opportunities. While inflation remains a pressing concern, progress in GDP growth and the positive trajectory of economic reforms provide hope for a more stable and prosperous 2025,” the Speaker said.
Economy
NASD Index Appreciates 0.69% to 3,095.00 Points
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.69 per cent appreciation on Monday, January 13, as investors showed renewed interests in unlisted securities.
During the trading session, the NASD Unlisted Security Index (NSI) increased by 21.07 points to wrap the session at 3,095.00 points compared with the 3,073.93 points recorded in the previous session.
In the same vein, the value of the local alternative stock exchange went up by N7.22 billion to close at N1.061 trillion compared with last Friday’s N1.051 trillion.
Yesterday, FrieslandCampina Wamco Nigeria Plc recorded a growth of N3.78 to close at N42.00 per share versus N38.22 per share, Mixta Real Estate Plc improved by 20 Kobo to end at N2.35 per unit versus the preceding closing rate of N2.15 per unit, and Industrial and General Insurance (IGI) Plc gained 1 Kobo to finish at 25 Kobo per share compared with the previous session’s 24 Kobo per share.
Conversely, Geo-Fluids Plc lost 29 Kobo to quote at N4.56 per unit compared with the preceding day’s N4.85 per unit, and Afriland Properties Plc slid by 75 kobo to end the session at N15.50 per share versus the preceding closing rate of N16.25 per share.
During the session, the volume of securities traded decreased by 27.2 per cent to 3.1 million units from 4.3 million units, the value of securities slumped by 81.5 per cent to N3.2 million from N17.2 million, and the number of deals expanded by 57.9 per cent to 30 deals from 19 deals.
At the close of trades, FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 1.9 million units worth N74.2 million, followed by 11 Plc with 12,963 units valued at N3.2 million, and IGI Plc with 10.7 million units sold for N2.1 million.
Also, IGI Plc remained the most traded stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, trailed by FrieslandCampina Wamco Nigeria Plc with 1.9 million units valued at N74.2 million, and Acorn Petroleum Plc with 1.2 million units worth N1.9 million.
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