Economy
Dow May Look To Reverse Recent Downward Trend
Investors Hub
The major US index futures are pointing to a higher opening on Thursday following the mixed performance seen in the previous session.
Traders may look to pick up stocks at reduced levels following the recent downward trend by the Dow, which ended the previous session at its lowest closing level in two months.
Stocks turned in a mixed performance during trading on Wednesday, as traders reacted to the latest earnings news as well a steep drop by the price of crude oil. The major averages eventually ended the session on opposite sides of the unchanged line.
While the tech-heavy Nasdaq rose 13.56 points or 0.2 percent to 5,863.03, the Dow slid 118.79 points or 0.6 percent to a two-month closing low of 20,404.49 and the S&P 500 dipped 4.02 points or 0.2 percent to 2,338.17.
A notable decline by shares of IBM Corp. (IBM) weighed on the Dow, with the tech giant tumbling by 4.9 percent to its lowest closing level in over four months.
The steep drop by IBM came after the company reported first quarter earnings that beat analyst estimates but on weaker than expected revenues.
Meanwhile, some positive sentiment was generated by upbeat earnings news from Morgan Stanley (MS) after disappointing results from Goldman Sachs (GS) weighed on the markets on Tuesday
Shares of Morgan Stanley rose by 2 percent after the financial services giant reported better than expected first quarter results.
Yahoo (YHOO), which is in the process of selling its core internet business to Verizon (VZ), also reported first quarter results that exceeded analyst estimates.
Overall trading activity was somewhat subdued, however, with lingering geopolitical uncertainty keeping some traders on the sidelines.
Late in the trading day, the Federal Reserve released its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts.
The Fed said economic activity increased in each of the twelve districts between mid-February and the end of March, with the pace of expansion equally split between modest and moderate.
The report also said employment expanded across the nation. The job growth also ranged from modest to moderate during the period.
Modest wage increases broadened, the Fed said while noting prices rose modestly since the previous report on balance.
Gold stocks moved sharply lower over the course of the trading session, dragging the NYSE Arca Gold Bugs Index down by 3.7 percent. The index pulled back further off the nearly two-month closing high it set last Wednesday. The sell-off by gold stocks came amid a decrease by the price of the precious metal.
A steep drop by the price of crude oil also weighed on energy stocks, as oil prices came under pressure after the release of a report showing an unexpected weekly increase in gasoline inventories.
Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index plunged by 2.7 percent, while the NYSE Arca Natural Gas Index and the NYSE Arca Oil & Gas Index slumped by 1.7 percent and 1.6 percent, respectively.
On the other hand, airline stocks saw notable strength on the day, resulting in a 1.1 percent advance by the NYSE Arca Airline Index. With the gain, the index reached a two-month closing high.
Hawaiian airlines parent Hawaiian Holdings (HA) and SkyWest (SKYW) turned in two of the sector’s best performances. United Continental (UAL) also rebounded after falling sharply on Tuesday.
By Adedapo Adesanya
The National Pension Commission (PenCom) has defended its decision to allow Pension Fund Administrators (PFAs) to invest in the parent companies of their custodians, insisting that adequate safeguards are in place to protect contributors’ funds.
The director-general of the pension regulator, Ms Omolola Oloworaran, speaking on Tuesday during the Meet the Press Briefing at the Presidential Villa, Abuja, said the commission’s decision to relax the investment restriction followed a comprehensive risk assessment that found minimal conflict of interest.
She explained that under PenCom’s investment regulations, PFAs are only permitted to invest pension assets in carefully selected instruments that meet stringent criteria, including profitability, strong credit ratings and proven track records.
According to her, the commission regularly reviews its investment regulations, conducts routine examinations and spot checks on PFAs to ensure strict compliance with established risk management guidelines.
“PFAs cannot just go into the stock market and buy any kind of stock. There are strict guidelines. Companies must demonstrate profitability, have a proven track record and satisfy other criteria before pension funds can invest,” she said.
Ms Oloworaran noted that each PFA also operates under the oversight of a board, an investment committee and a risk management committee, providing additional layers of governance to safeguard contributors’ funds.
She said PenCom recently issued a circular allowing PFAs to invest in the parent companies of their custodians after determining that the potential conflict of interest was negligible.
The PenCom boss explained that the parent companies involved are largely Tier-1 banks, including First Bank, United Bank for Africa (UBA) and Zenith Bank, which she described as A-rated institutions with strong financial foundations.
She said the policy was intended to widen investment opportunities for pension funds without compromising safety.
Using Stanbic IBTC as an example, Ms Oloworaran explained that if its custodian is Zenith Bank, the previous restriction prevented the pension administrator from investing in Zenith Bank shares despite the bank’s strong performance.
“We reviewed the risks and any potential conflict of interest and found the risks to be very low. That is why we opened that investment window,” she said.
By Aduragbemi Omiyale
Analysts at Meristem Research have predicted that the inflation rate for June 2026 in Nigeria should marginally rise to 15.95 per cent on a year-on-year basis from the 15.93 per cent reported in May 2026.
The National Bureau of Statistics (NBS) is expected to release inflation numbers for last month later today, Wednesday, July 15, 2026.
In its report sighted by Business Post, Meristem Research said it expects inflationary pressures to re-emerge across key economies in the near term, as the re-escalation of the US-Iran conflict has reignited upward pressure on global oil prices.
It disclosed that this marks a sharp reversal from most of June, when the ceasefire between the two countries helped drive oil prices lower, raising expectations of some relief on the inflation front.
With conflicts now flaring up again, oil prices are likely to increase again, and the anticipated easing in energy-driven inflation may not materialise as broadly as earlier envisaged.
“Nonetheless, some relief is likely from the food segment, where robust supply conditions across major producing regions and softening demand should continue to ease food price pressures,” it stated.
The team also explained that it projected a 15.95 per cent inflation rate because of the lingering effects of persistent food price pressures.
“However, we expect core inflation to moderate as the sharp reversal in energy prices begins to filter through to transportation, distribution, and other energy-related costs, easing underlying price pressures.
“On a month-on-month basis, the combined effect of lower petrol prices, a relatively stable Naira, and the gradual pass-through of reduced energy costs across the supply chain should exert further downward pressure on inflation.
“Based on our assessment, food inflation is expected to remain the key swing factor, as seasonal pre-harvest supply constraints are likely to offset some of the gains from lower logistics costs,” it said.
By Adedapo Adesanya
The duo of Central Securities Clearing System (CSCS) Plc and Afriland Properties Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.61 per cent on Tuesday, July 14.
CSCS Plc saw its stock value drop N9.08 to close at N82.40 per share compared with the preceding session’s N91.48 per share, and Afriland Properties Plc slid by 17 Kobo to sell at N15.00 per unit versus N15.70 per unit.
The losses recorded by the two securities pulled back the market capitalisation by N41.64 billion to N2.546 trillion from N2.587 trillion, and cracked the NASD Security Index (NSI) by 69.36 points to 4,242.31 points from 4,311.67 points.
It was observed that the exchange witnessed two price advancers during the session, led by FrieslandCampina Wamco Nigeria Plc, which gained N1.37 to end at N151.37 per share compared with the previous day’s N150.00 per share, and Food Concepts Plc chalked up 5 Kobo to settle at N2.50 per unit versus N2.45 per unit.
The volume of securities traded by market participants surged by 50.7 per cent to 13.7 million units from the previous 9.1 million units, while the value of securities went down by 79.7 per cent to N65.2 million from N320.4 million, and the number of deals crashed by 3.6 per cent to 27 deals from the previous session’s 28 deals.
At the close of transactions, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with the sale of 3.4 billion units for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc, which exchanged 2.3 billion units valued at N6.5 billion, and CSCS Plc with 73.9 million units transacted for N5.2 billion.
GNI Plc also closed the trading 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 traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
