Economy
Recent Volatility May Keep US Stock Traders on Edge
By Investors Hub
The major U.S. index futures are pointing to a mixed opening on Wednesday following the sell-off seen in afternoon trading on Tuesday.
Traders may be reluctant to make significant moves following the recent volatility on Wall Street, which has led to wild swings by the major averages.
The upcoming three-day weekend may also contribute to choppy trading, as some traders will be looking to get a head start on the holiday.
After moving mostly higher in morning trading on Tuesday, stocks showed a substantial move to the downside in the afternoon. The major averages pulled back firmly into negative territory, with the tech-heavy Nasdaq largely offsetting the rally seen in the previous session.
The major averages all closed in the red, although the Nasdaq underperformed its counterparts. The Nasdaq plummeted 211.74 points or 2.9 percent to 7,008.81, while the Dow slumped 344.89 points or 1.4 percent to 23,857.71 and the S&P 500 tumbled 45.93 points or 1.7 percent to 2,612.62.
The afternoon sell-off on Wall Street was led by technology stocks, as reflected by the particularly steep loss posted by the Nasdaq.
Social media giant Facebook (FB) helped to lead the way lower, extending a recent downtrend following news CEO Mark Zuckerberg is planning to testify before Congress in the wake of the Cambridge Analytica scandal.
Within the tech sector, semiconductor stocks saw considerable weakness, dragging the Philadelphia Semiconductor Index down by 3.8 percent. The index pulled back sharply after jumping by 4.2 percent on Monday.
Chipmaker Nvidia (NVDA) showed a steep drop after halting testing of its driverless technology on public roads following a fatal crash involving a self-driving car.
Biotechnology stocks also showed a significant move to the downside on the day, as reflected by the 3.3 percent loss posted by the NYSE Arca Biotechnology Index. With the drop, the index fell to its lowest closing level in well over a month.
Retail, banking, and energy stocks also came under pressure on the day, while utilities stocks bucked the downtrend on Wall Street.
On the U.S. economic front, the Conference Board released a report showing an unexpected deterioration in consumer confidence in the month of March.
The Conference Board said its consumer confidence index dipped to 127.7 in March from a downwardly revised 130.0 in February.
The drop surprised economists, who had expected the index to inch up to 131.0 from the 130.8 originally reported for the previous month.
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.
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.
By Adedapo Adesanya
The Nigerian Naira recorded improvements in the official and black markets on Wednesday as the Central Bank of Nigeria (CBN) announced its intention to launch an FX code designed to boost the integrity of the market.
The apex bank explained the code will serve as a guideline for the ethical conduct of FX dealers in the Nigerian forex landscape.
“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of Authorised Dealers in the Nigerian Foreign Exchange Market.
“The bank will formally launch the code at the CBN Head Office Auditorium, Abuja, on Tuesday, January 28, 2025,” a statement from the regulator read.
At the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment of the forex market window, the local currency gained 0..01 per cent or 20 Kobo against the US Dollar to close at N1,552.58/$1 compared with the preceding day’s N1,552.78/$1.
However, the domestic currency depreciated against the British Pound Sterling in the official market yesterday by N8.55 to wrap the session at N1,915.53/£1 compared with Tuesday’s N1,906.98/£1 and against the Euro, the Naira lost N4.24 to sell for N1,617.72/€1 versus N1,613.48/€1.
At the parallel market, the Nigerian currency improved its value against the greenback yesterday by N10 to quote at N1,660/$1, in contrast to the preceding session’s N1,670/$1.
In the cryptocurrency market, it was bearish after it was clarified that an earlier leak on the website of the Chicago Mercantile Exchange (CME), showing regulated XRP (XRP) and Solana (SOL) futures could start trading on February 10 pending regulatory approval, was an error.
This, coupled with profit-taking from the Mr Donald Trump rally, saw Dogecoin (DOGE) fall by 3.9 per cent to $0.3537, as Ethereum (ETH) depreciated by 3.1 per cent to quote at $3,213.39, and Bitcoin (BTC) depleted by 3.0 per cent to trade at $102,654.79.
Further, Cardano slumped by 2.9 per cent to $0.9708, Litecoin (LTC) weakened by 2.7 per cent to $113.62, Solana (SOL) recorded a 2.5 per cent depreciation to sell at $249.58, Binance Coin (BNB) shed 1.9 per cent to close at $686.40, and Ripple (XRP) dropped 1.2 per cent to end at $3.14, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN