Economy
Trump’s Higher Tariffs Threat on Chinese Goods Crashes Asian Stocks
By Investors Hub
Asian stock markets fell on Wednesday as risk appetite waned after U.S. President Donald Trump threatened higher tariffs on Chinese goods if a trade deal is not reached between the two countries.
Hopes for a trade deal further dimmed after the U.S. Senate passed legislation supporting protesters in Hong Kong. China has condemned the U.S. Senate measure.
Chinese shares closed lower amid rising U.S.-China tensions. The benchmark Shanghai Composite Index dropped 22.94 points or 0.8 percent to finish at 2,911.05.
Hong Kong shares fell for the first time in three days. The Hang Seng Index tumbled 204.19 points or 0.8 percent to close at 26,889.61.
The Japanese market extended losses from the previous session and the safe-haven yen strengthened on fresh worries about a U.S.-China trade deal. Data showing Japan’s merchandise trade surplus for October missed expectations also dampened sentiment.
The benchmark Nikkei 225 Index fell 144.08 points or 0.6 percent to close at 23,148.57, while the broader Topix dropped 5.62 points or 0.3 percent to finish at 1,691.11.
Market heavyweight SoftBank Group and Fast Retailing declined 1.2 percent each. The major exporters fell on a stronger yen. Sony lost 0.9 percent, Canon is dipped 1.3 percent, Mitsubishi Electric dropped 0.6 percent and Panasonic edged down less than 0.1 percent.
In the tech space, Tokyo Electron slipped 1.6 percent and Advantest fell 2.7 percent. Among auto stocks, Toyota Motor declined 0.9 and Honda Motor dropped 1.3 percent.
Among the major gainers, Sumitomo Dainippon Pharma soared 6.9 percent, Rakuten rose 2.6 percent and M3 added 2.5 percent.
On the flip side, Nippon Yusen KK lost 4.2 percent, T&D Holdings dropped 4 percent and JGC Holdings fell 3.7 percent.
In economic news, the Ministry of Finance said Japan posted a merchandise trade surplus of 17.3 billion yen in October. That was well shy of expectations for a surplus of 301.0 billion yen following the 124.8 billion yen deficit in September.
Exports fell 9.2 percent year-over-year, missing forecasts for a drop of 7.5 percent following the 5.2 percent decline in the previous month. Imports were down an annual 14.8 percent versus expectations for a drop of 15.4 percent after dipping 1.5 percent a month earlier.
The Australian market closed notably lower, recording its worst day in nearly seven weeks amid fresh uncertainty about a U.S.-China trade deal and sharp losses in the banking sector.
The benchmark S&P/ASX 200 Index fell 91.80 points or 1.4 percent to close at 6,722.40, while the broader All Ordinaries Index lost 85.80 points or 1.2 percent to settle at 6,828.30.
In the banking space, Westpac’s shares fell 3.3 percent after AUSTRAC, Australia’s financial intelligence agency, accused the lender of breaching money laundering and anti-terrorist financing laws 23 million times.
ANZ Banking declined 2.1 percent, Commonwealth Bank dipped 1.3 percent and National Australia Bank lost 3.1 percent.
Among the major miners, BHP declined 0.6 percent and Rio Tinto fell 0.8 percent, while Fortescue Metals added 0.2 percent.
Oil stocks fell as crude oil prices tumbled overnight. Oil Search declined 1.8 percent, while Santos dropped 1.5 percent and Woodside Petroleum lost 1.3 percent.
Origin Energy raised the full-year production outlook for its Australia Pacific LNG project. However, the company’s shares dipped 0.6 percent.
Aristocrat Leisure reported a 29 percent increase in full-year profit and said it will pay a higher fully franked final dividend. The gambling giant’s shares gained 6 percent.
Lifescience and industrial testing company ALS gained 12.1 percent after reporting a 5.3 percent increase in its half-year profit.
Meanwhile, Saracen Mineral Holdings’ shares fell 10.6 percent after coming out of a trading halt following a A$701 million capital raising to fund its acquisition of a 50 percent stake in the Super Pit goldmine in Western Australia.
On the economic front, Australia’s leading index rose moderately in October, but it remained below trend, suggesting weak economic momentum carrying well into 2020, Westpac reported Wednesday.
The six-month annualized growth rate in the Westpac-Melbourne Institute leading index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, increased to -0.91 percent in October from -1.01 percent in September.
Seoul stocks fell for the third straight day amid fresh worries about a U.S.-China trade deal. The benchmark Kospi lost 27.92 points or 1.3 percent to settle at 2,125.32.
Market heavyweight Samsung Electronics fell 2.8 percent and chipmaker SK hynix dropped 3.1 percent. Automaker Hyundai Motor edged down 0.4 percent.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 1.41 per cent on Friday, May 15, supported by four securities on the platform.
During the session, FrieslandCampina Wamco Plc added N14.24 to its share price to sell for N159.00 per unit, in contrast to the previous day’s N144.76 per unit.
Further, Central Securities and Clearing System (CSCS) Plc appreciated by N1.34 to N72.34 per share from N71.00 per share, Geo-Fluids Plc improved its price by 4 Kobo to N2.94 per unit from N2.90 per unit, and Industrial and General Insurance (IGI) Plc gained 1 Kobo to trade at 61 Kobo per share compared with Thursday’s closing price of 60 Kobo per share.
As a result, the NASD Unlisted Security Index (NSI) rose by 58.20 points to 4,188.41 points from 4,130.21 points, and the market capitalisation soared by N34.82 billion to N2.506 trillion from N2.471 trillion on Thursday.
During the session, the volume of trades went up by 180.8 per cent to 1.2 million units from 417,349 units, and the value of transactions increased by 29.8 per cent to N29.8 million from N23.2 million, while the number of deals fell by 22.6 per cent to 24 deals from 31 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 60.8 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.9 million units valued at N1.9 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
By Dipo Olowookere
The bears overpowered the Nigerian Exchange (NGX) Limited on Friday, sinking it further by 0.76 per cent when the closing gong was struck by 4 pm.
The nation’s flagship equity market was under selling pressure during the session, as investors booked profits after the shares witnessed price appreciation in the past trading sessions.
The energy sector was the most impacted, as it shed 4.43 per cent. The consumer goods index declined by 0.90 per cent, the banking counter decreased by 0.15 per cent, and the industrial goods sector lost 0.08 per cent, while the insurance counter gained 2.42 per cent, which was not enough to salvage the situation.
Consequently, the All-Share Index (ASI) contracted by 1,912.19 points to 250,330.92 points from 252,243.11 points, and the market capitalisation moderated by 1.225 trillion to N160.444 trillion from N161.669 trillion.
Zichis was the worst-performing stock for the session after it gave up 9.97 per cent to close at N29.43, FTN Cocoa slipped by 9.95 per cent to N8.96, The Initiates slumped by 9.90 per cent to N32.30, LivingTrust Mortgage Bank tumbled by 9.88 per cent to N3.83, and International Energy Insurance dropped 9.71 per cent to trade at N2.79.
The best-performing stock was ABC Transport, which grew by 10.00 per cent to N6.27. May and Baker also appreciated by 10.00 per cent to N47.30, SCOA Nigeria surged by 9.98 per cent to N33.05, Trans-Nationwide Express expanded by 9.97 per cent to N7.06, and DAAR Communications jumped 9.76 per cent to N2.25.
Yesterday, investors traded 1.1 billion shares worth N44.3 billion in 65,744 deals compared with the 1.0 billion shares valued at N41.6 billion transacted in 74,822 deals a day earlier. This indicated a dip in the number of deals by 12.13 per cent, and a rise in the trading volume and value by 10.00 per cent and 6.49 per cent, respectively.
Chams was the busiest equity for the day, with 328.5 million units sold for N1.1 billion. UBA traded 61.6 million units worth N2.7 billion, First Holdco transacted 58.7 million units valued at N4.2 billion, Secure Electronic Technology exchanged 51.9 million units worth N45.0 million, and Access Holdings traded 51.8 million units valued at N1.3 billion.
By Adedapo Adesanya
The last trading session of the week at the Nigerian Autonomous Foreign Exchange Market (NAFEX) ended on a negative note for the Naira on Friday, May 15, as it lost N15 Kobo or 0.1 per cent against the Dollar to trade at N1,371.04/$1 compared with the previous day’s N1,370.89/$1.
However, it further appreciated against the Pound Sterling in the same market segment yesterday by N20.77 to close at N1,830.61/£1 versus Thursday’s value of N1,851.38/£1, and gained N7.91 against the Euro to settle at N1,595.07/€1 versus N1,602.98/€1.
At the GTBank FX desk, the Naira lost N2 against the US Dollar during the session to sell at N1,383/$1 compared with the preceding session’s N1,381/$1, and at the black market, it remained unchanged at N1,385/$1.
The Naira is forecast to be broadly stable, supported by Dollar sales by the Central Bank of Nigeria (CBN) amid steady, higher oil receipts, with the market settling into a balance.
Policy direction is also expected to give the market some boost as the CBN said the new edition of the FX market guidelines will deepen liquidity, improve transparency and strengthen confidence in the country’s foreign exchange market.
According to the Governor of the CBN, Mr Yemi Cardoso, the update is due to changing global economic realities, domestic reforms and the need for a more coherent and forward-looking regulatory framework. According to him, the last edition of the FX manual was issued in 2018, making the latest review both timely and necessary.
Meanwhile, the cryptocurrency market plunged into the red zone as rising bond yields hit risk assets across markets, while traders are increasingly betting the Federal Reserve may need to raise rates again. Rising energy prices and resurging inflation could force central banks back into tightening mode.
Cardano (ADA) shrank by 4.4 per cent to $0.2557, Dogecoin (DOGE) slid by 3.7 per cent to $0.1104, Ripple (XRP) depreciated by 3.5 per cent to $1.41, Solana (SOL) crashed by 3.5 per cent to $87.81, and Binance Coin (BNB) slumped by 3.4 per cent to $659.64.
Further, Bitcoin (BTC) declined by 2.6 per cent to $78,547.49, Ethereum (ETH) lost 2.1 per cent to quote at $2,209.19, and TRON (TRX) tumbled by 0.7 per cent to $0.3509, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn