Economy

Disappointing Chinese Trade Data Weigh on US Stocks

Published

6 years ago

14/01/2019

By Investors Hub

The major U.S. index futures are pointing to a lower opening on Monday, with stocks likely to come under pressure following the strong upward move seen last week.

Concerns about the global economic outlook are likely to lead to early weakness following the release of disappointing Chinese trade data.

Data from China?s General Administration of Customs showed exports tumbled by 4.4 percent year-over-year in December, reflecting the biggest drop in two years. Economists had expected exports to increase by 3 percent.

The report also said Chinese imports plunged by 7.6 percent in December compared to the same month a year ago, defying expectations for a 5 percent jump.

ING Greater China Economist Iris Pang said the contraction in Chinese imports and exports ?is likely to continue into 2019 due to falling foreign demand, including demand for Chinese-made electronic products.?

A negative reaction to quarterly results from Citigroup (C) may also weigh on the markets, as the financial giant reported fourth quarter earnings that exceeded analyst estimates but on weaker than expected revenues.

Financial giants JPMorgan Chase (JPM), Wells Fargo (WFC), Bank of America (BAC), and Goldman Sachs (GS) are also due to report their quarterly results in the coming days.

After initially moving to the downside, stocks once again staged a recovery attempt over the course of the trading session on Friday. The major averages climbed well off worst levels of the day session but still closed slightly lower.

While the Nasdaq fell 14.59 points or 0.2 percent to 6,971.48, the Dow and the S&P 500 both edged down by less than a tenth of a percent. The Dow dipped 5.97 points to 23,995.95 and the S&P 500 slipped 0.38 points to 2,596.26.

Despite the modestly lower close on the day, the major averages moved significantly higher for the week. The Nasdaq surged up by 3.5 percent, while the Dow and the S&P 500 jumped by 2.4 percent and 2.5 percent, respectively.

The early weakness on Wall Street was partly due to profit taking, with traders cashing in on the gains seen over the five-session winning streak.

Concerns about the ongoing government shutdown and skepticism about a potential trade deal between the U.S. and China also weighed on the markets.

Selling pressure remained somewhat subdued, however, with recent upward momentum helping to limit the downside for the markets.

Traders seemed worried about missing out on further upside if the markets rebounded from the early pullback as they did in the previous session.

On the economic front, the Labor Department released a report showing a slight drop in consumer prices in the month of December.

The Labor Department said its consumer price index slipped by 0.1 percent in December after coming in unchanged in November. The slight drop in consumer prices matched economist estimates.

Energy prices showed another significant decrease during the month, plunging by 3.5 percent in December following a 2.2 percent slump in the previous month.

A steep drop in gasoline prices led the way lower, with gas prices plummeting by 7.5 percent in December after tumbling by 4.2 percent in November.

On the other hand, the report said food prices climbed by 0.4 percent in December, the largest increase since May of 2014. Prices for fruits and vegetables surged higher.

Excluding food and energy prices, the core consumer price index rose by 0.2 percent in December, matching the increases seen in the two previous months as well as expectations.

Higher prices for shelter, recreation, medical care, and household furnishings and operations more than offset lower prices for airline fares, used cars and trucks, and motor vehicle insurance.

The report said the annual rate of consume price growth slowed to 1.9 percent in December from 2.2 percent in November, while the annual rate of core consumer price growth was unchanged at 2.2 percent.

Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets.

Tobacco stocks showed a substantial move to the upside, however, with the NYSE Arca Tobacco Index surging up by 2.6 percent. With the jump, the index reached its best closing level in almost a month.

Strength also emerged among semiconductor stocks, while oil service stocks climbed off their worst levels but still closed notably lower.

Economy

NGX All-Share Index Tumbles 0.05% as Investors Recalibrate Portfolios

Published

2 hours ago

24/01/2025

Dipo Olowookere

By Dipo Olowookere

The recalibration of portfolios by investors further depressed the Nigerian Exchange (NGX) Limited on Thursday by 0.05 per cent in the absence of a positive trigger.

Amid the profit-taking, the banking space continued to witness bargain-hunting during the session, rising at the close of business by 1.04 per cent.

However, sell-offs crushed the insurance sector by 1.23 per cent, the consumer goods index depreciated by 0.81 per cent, and the energy sector lost 0.36 per cent, while the industrial goods counter closed flat.

As result, the All-Share Index (ASI) depreciated by 47.93 points to 102,788.20 points from 102,836.13 points and the market capitalisation gained N1 billion to close at N63.148 trillion compared with the preceding day’s N63.147 trillion.

Like the previous session, the market breadth index was flat after the bourse ended with 28 price gainers and 28 price losers.

Morison Industries depleted by 9.98 per cent to N3.61, C&I Leasing slumped by 9.91 per cent to N3.91, Ikeja Hotel crashed by 8.89 per cent to N12.30, Neimeth went down by 8.51 per cent to N3.44, and Sunu Assurance shed 8.03 per cent to settle at N5.50.

But SCOA Nigeria gained 9.76 per cent to sell for N3.60, DAAR Communications increased by 9.09 per cent to 84 Kobo, May and Baker jumped by 8.43 per cent to N9.00, Prestige Assurance appreciated by 6.82 per cent to N1.41, and Red Star Express chalked up 4.99 per cent to finish at N5.05.

The activity chart was mixed yesterday after the trading volume shrank by 0.10 per cent, the trading grew by 50.00 per cent, and the number of deals leapt by 12.95 per cent.

A total of 394.4 million stocks valued at N22.8 billion were traded in 12,160 deals during the session versus the 394.8 million stocks worth N15.2 billion transacted in 10,766 deals in the preceding day.

GTCO ended as the busiest equity after the sale of 42.2 million units for N2.6 billion, UBA traded 37.5 million units worth N1.3 billion, Zenith Bank transacted 25.2 million units valued at N1.2 billion, Access Holdings exchanged 24.3 million units for N601.6 million, and Jaiz Bank traded 13.8 million units worth N41.4 million.

Economy

Oando Wins Bid to Operate Angola’s KON 13 Oil Block

Published

19 hours ago

23/01/2025

Adedapo Adesanya

By Adedapo Adesanya

Nigerian energy company, Oando Plc, has won the bid for the operatorship of oil block KON 13 in Angola.

The company, which recently acquired Eni of Italy’s oil assets in Nigeria, disclosed on Wednesday that the award of the oil block located in Angola’s onshore Kwanza Basin followed a competitive bidding process by the country’s oil and gas sector regulator.

Oando disclosed that the asset, in which it owns 45 per cent participating interest, has an estimated prospective resources of 770 to 1,100 million barrels of oil. Oando is handling its operations relating to the asset through its upstream subsidiary, Oando Energy Resources (OER).

“Oando Plc (the company), Africa’s leading indigenous energy solutions provider listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange is pleased to announce that its upstream subsidiary, Oando Energy Resources (OER), has been awarded operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin, following a competitive bidding process organised by the Angolan National Agency for Petroleum, Gas, and Biofuels (ANPG).

“Block KON 13 is strategically located in the prolific Kwanza Onshore Basin which represents significant exploration potential in both pre-salt and post-salt plays, with estimated prospective resources of 770 to 1,100 million barrels of oil.

“The block has two exploration wells previously drilled to a target depth of 3,000m, with oil and gas observed across various depths. With a 45 per cent participating interest, OER will lead the development of the block as an operator, alongside Effimax (30 per cent) and Sonangol (15 per cent) as co-venturers,” it stated.

Commenting on the award, the chief executive of Oando Plc, Mr Wale Tinubu, expressed confidence in the capacity of the company, in collaboration with its co-venturers, to unlock the full potential of the asset for the country.

“We look forward to collaborating with our co-venturers and other key stakeholders to harness this opportunity and unlock its full potential for Angola and Africa as a whole,” Mr Tinubu said.

This milestone, the company said, marks its strategic entry into the Angolan oil and gas market and represents a significant step in its long-term vision to grow its upstream operations across Africa.

According to Oando Plc, it also solidifies the company’s position as a prominent player in the continent’s energy landscape, evolving from a local indigenous operator to a regional powerhouse.

Following the company’s recent successful acquisition of NAOC Ltd in Nigeria, the addition of Block KON 13, the energy firm stressed, further bolsters the company’s upstream portfolio and reflects its commitment to driving regional growth and energy security.

Economy

NASD Index Gains 0.74%

Published

20 hours ago

23/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange appreciated by 0.74 per cent on Wednesday, January 22 as a result of buying pressure on the market.

Yesterday, the NASD Unlisted Security Index (NSI) garnered 22.86 points to wrap the session at 3,123.19 points compared with 3,100.33 points recorded in the previous session, as the value of the unlisted securities market went up at midweek by N5 billion to close at N1.076 trillion, in contrast to the preceding day’s N1.071 trillion.

The alternative bourse ended with three price gainers and two price losers at the Wednesday session.

Mixta Real Estate Plc improved its value by 25 Kobo to end at N2.83 per unit compared with the previous day’s N2.58 per unit, Okitipupa Plc jumped by N3.56 to close at N43.55 per share versus N39.99 per share, and First Trust Mortgage Bank Plc added 2 Kobo to settle at 39 Kobo per unit compared with Tuesday’s trading price of 37 Kobo per unit.

On the flip side, UBN Property Plc lost 16 Kobo to end at N1.86 per share, in contrast to the preceding session’s N2.00 per share, and Mass Telecomm Innovation Plc went down by 1 Kobo to 41 Kobo per unit from 40 Kobo per unit.

During the session, there was a 216.2 per cent rise in the volume of securities traded to 581,160 units from 183,780 units, the value of securities traded by investors decreased by 48.9 per cent to N2.3 million from N4.5 million, while the number of deals increased by 84.6 per cent to 24 deals from 13 deals.

When the bourse closed for the day, Industrial and General Insurance (IGI) Plc was the stock with the highest trading volume (year-to-date) with 25.3 million units valued at N5.9 million, followed by Geo-Fluids Plc with 9.1 million units sold for N44.0 million, and FrieslandCampina Wamco Nigeria Plc with 4.1 million units worth N162.9 million.

By value, FrieslandCampina Wamco Nigeria Plc topped the activity chart after selling 4.1 million units worth N162.9 million, trailed by Geo-Fluids Plc with 9.1 million units sold for N44.0 million, and 11 Plc with 55,358 valued at N14.5 million.