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 recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.
On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.
Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.
Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.
At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.
In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.
By Adedapo Adesanya
The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.
The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.
Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.
In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.
At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.
Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).
Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Dipo Olowookere
For the fourth consecutive trading session, the Nigerian Exchange (NGX) Limited closed higher on Friday by 0.63 per cent on sustained renewed buying pressure.
Apart from the energy and industrial goods sectors which closed flat, every other sector ended in the green territory, according to data obtained from the bourse.
Business Post reports that the insurance index appreciated by 1.52 per cent, the banking space improved by 0.63 per cent, and the consumer goods counter expanded by 0.46 per cent.
As a result, the All-Share Index (ASI) gained 617.47 points to settle at 99,378.06 points compared with the preceding day’s 98,760.59 points and the market capitalisation went up by 375 billion to close at N60.242 trillion, in contrast to Thursday’s closing value of N59.867 trillion.
The volume of transactions on Customs Street yesterday grew by 11.13 per cent to 544.2 million shares from the 489.7 million shares transacted a day earlier.
The value of transactions increased during the session by 49.30 per cent to N10.6 billion from N7.1 billion and the number of deals went up by 1.93 per cent to 8,464 deals from the 8,304 deals posted in the previous trading session.
The busiest equity for the trading day was Japaul with the sale of 71.7 million units valued at N158.0 million, eTranzact exchanged 70.7 million units worth N477.5 million, Tantalizers sold 57.3 million units for N101.2 million, FCMB traded 33.0 million units worth N297.3 million, and Universal Insurance transacted 27.1 million units valued at N9.6 million.
A total of 36 stocks ended on the gainers’ chart, while 15 stocks finished on the losers’ table, indicating a positive market breadth index and strong investor sentiment.
The trio of Aradel Holdings, Ikeja Hotel and Caverton gained 10.00 per cent each to trade at N550.00, N8.80, and N1.98, respectively, as Africa Prudential rose by 9.87 per cent to N17.25 and Golden Guinea Breweries soared by 9.64 per cent to N8.64.
On the flip side, Austin Laz lost 10.00 per cent to close at N1.62, ABC Transport crashed by 8.00 per cent to N1.15, Royal Exchange slumped by 7.69 per cent to 60 Kobo, Secure Electronic Technology plunged by 5.26 per cent to 54 Kobo, and The Initiates crumbled by 4.26 per cent to N2.25.
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