Economy

Upbeat Earnings News May Help Stocks Extend Winning Streak

Published

8 years ago

25/05/2017

The major U.S. index futures are pointing to a higher opening on Thursday, with stocks looking to extend the upward trend seen over the past several sessions.

Upbeat earnings news from some big-name retailers may generate early buying interest on Wall Street, as the major averages seek to extend their five-session winning streak.

Traders also continue to respond to the minutes of the Federal Reserve’s latest monetary policy meeting, which included an outline of a plan to trim its $4.5 trillion balance sheet.

Stocks moved mostly higher over the course of the trading session on Wednesday, extending their recent winning streak to five sessions. With the continued advance on the day, the S&P 500 reached a new record closing high.

The major averages ended the day just off their highs of the session. The Dow climbed 74.51 points or 0.4 percent to 21,012.42, the Nasdaq advanced 24.31 points or 0.4 percent to 6,163.02 and the S&P 500 rose 5.97 points or 0.3 percent to 2,404.39.

The continued strength on Wall Street came following the release of the minutes of the Federal Reserve’s latest monetary policy meeting.

The minutes of the meeting noted that growth in economic activity had slowed, although the Fed members agreed that the slower growth during the first quarter was likely to be transitory.

Most participants subsequently said it would soon be appropriate for the Fed to take another step in removing some policy accommodation.

The Fed is widely expected to raise interest rates at its next meeting in mid-June, with CME Group’s FedWatch tool indicating an 83.1 percent chance of a quarter-point rate hike.

However, the minutes said members generally judged it would be prudent to await additional evidence indicating that the recent slowing in the pace of economic activity had been transitory before raising rates.

The comment may increase the focus on the economic data due to be released in the weeks leading up to the June meeting.

The Fed minutes also said staff offered a briefing on a possible approach to winding down the central bank’s $4.5 trillion balance sheet.

Nearly all policymakers expressed a favorable view of the approach, which was seen as consistent with the intention to reduce the Fed’s securities holdings in a gradual and predictable manner.

Under the proposed approach, the Fed would announce a set of gradually increasing caps on the dollar amounts of Treasury and agency securities that would be allowed to run off each month.

Only the amounts of securities repayments that exceeded the caps would be reinvested each month, the minutes said.

Meanwhile, traders largely shrugged off a report from the National Association of Realtors showing a bigger than expected pullback in existing home sales in the month of April.

NAR said existing home sales fell by 2.3 percent to an annual rate of 5.57 million in April after jumping by 4.2 percent to a ten-year high of 5.70 million in March. Economists had expected sales to drop to a rate of 5.65 million.

Gold stocks showed a significant turnaround over the course of the session after coming under pressure in morning trading. Reflecting the strength that emerged in the sector, the NYSE Arca Gold Bugs Index climbed by 1.1 percent.

The rebound by gold stocks came as the price of the precious metal moved higher in electronic trading after ending the regular session lower.

Electronic storage, commercial real estate, and chemical stocks also saw some strength on the day, although buying interest was relatively subdued.

On the other hand, steel stocks saw significant weakness on the day, giving back ground after moving notably higher in the previous session. After surging up by 2.1 percent on Tuesday, the NYSE Arca Steel Index dropped by 1.5 percent

Considerable weakness was also visible among energy stocks, with the Philadelphia Oil Service Index and the NYSE Arca Natural Gas Index sliding by 1.3 percent and 1.2 percent, respectively.

Economy

Afriland Properties, Geo-Fluids Shrink OTC Securities Exchange by 0.06%

Published

15 minutes ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.

The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.

Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.

At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.

The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.

When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.

Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.

Economy

Naira Weakens to N1,547/$1 at Official Market, N1,670/$1 at Black Market

Published

54 minutes ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.

It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.

The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.

At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.

As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.

A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.

The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.

The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.

The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.

Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.

Economy

Dangote Refinery Makes First PMS Exports to Cameroon

Published

2 hours ago

12/12/2024

Aduragbemi Omiyale

By Aduragbemi Omiyale

The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.

In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.

However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.

In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.

Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.

Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.

“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.

“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.

His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.

“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.

“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”