Economy

US Earnings Buoy Asian Stock Markets Thursday

Published

6 years ago

24/10/2019

By Investors Hub

Asian stocks ended mostly higher on Thursday as upbeat U.S. earnings news helped offset investor concerns surrounding Brexit and the U.S.-China trade war.

While luxury electric car maker Tesla reported a surprise third-quarter profit, software giant Microsoft’s quarterly earnings were boosted by cloud and Office revenues.

Chinese stocks closed on a flat note as caution crept in ahead of a crucial meeting of the ruling Communist Party next week.

The benchmark Shanghai Composite Index finished marginally lower at 2,940.92, while Hong Kong’s Hang Seng Index gained 0.9 percent to close at 26,797.95.

Japanese shares hit over a one-year high as investors lapped up technology stocks on hopes for improved earnings following Microsoft’s stronger than expected sales forecasts for its cloud computing services. A weaker yen also helped underpin investor sentiment.

The Nikkei 225 Index climbed 125.22 points, or 0.6 percent, to 22,750.60, while the broader Topix closed 0.3 percent higher at 1,643.74. Tokyo Electron rallied 2.2 percent and Screen Holdings added 1.3 percent.

Pharmaceutical company Eisai Co soared 15.3 percent after it reached an agreement with its U.S. partner Biogen Inc. to revive plans to seek U.S. approval for an Alzheimer’s treatment.

Japan Display jumped 6.8 percent on a Nikkei report that tech giant Apple will be among a group of backers expected to provide as much as 40 billion yen in support for the troubled screen maker.

Softbank dropped 2.9 percent on continued worries that its finances will weaken due to its bailout of office-space sharing startup WeWork.

On the data front, Japan’s private sector contracted in October as a typhoon disrupted service sector activity, survey results from IHS Markit showed.

The Jibun Bank flash composite output index fell to 49.8 from 51.5 in September. The manufacturing PMI came in at 48.5 versus 48.9 in September.

Australian markets eked out modest gains as higher commodity prices helped lift resource stocks. The benchmark S&P/ASX 200 Index rose 20.50 points, or 0.3 percent, to 6,693.60, while the broader All Ordinaries Index ended up 18.50 points, or 0.3 percent, at 6,796.70.

Mining heavyweight BHP climbed 1 percent and Rio Tinto added 0.7 percent after an increase in copper and iron ore prices. Smaller rival Fortescue Metals Group gained half a percent after reporting a rise in first quarter shipments.

Energy stocks such as Santos and Woodside Petroleum jumped over 2 percent after oil prices rose sharply on Wednesday to reach one-month highs following a surprise draw in US crude inventories.

Electronics retailer JB Hi-Fi soared 6.8 percent as it posted strong sales in the July-September period.

AMP rose 1.1 percent. The wealth manager said third-quarter net cash outflows at its Australian wealth management unit rose more than 30 percent amid the fallout of the financial services royal commission.

Qantas Airways tumbled 3.7 percent after the airline reported lower revenue from its domestic routes at its budget carrier Jetstar. Gold miner Newcrest Mining dropped 1.6 percent on reporting weaker gold output in the first quarter.

Australia’s private sector logged weaker growth in October, survey data from IHS Markit showed. The Commonwealth Bank of Australia Flash Composite Output Index dropped to 50.7 from 52.0 in September, reflecting a weaker rise in services activity.

Seoul stocks edged higher as SK Hynix’s third quarter profit beat expectations, raising hopes of a recovery in the chip making industry. The benchmark Kospi inched up 5.04 points, or 0.2 percent, to 2,085.66. while shares of SK Hynix, the world’s second-largest memory chipmaker, jumped 3 percent.

Investors shrugged off preliminary data from the Bank of Korea showing the South Korean economy expanded at a slower pace in the third quarter amid heightened global uncertainties.

Gross domestic product grew 0.4 percent sequentially after rising 1 percent in the second quarter. GDP was forecast to expand 0.5 percent. On a yearly basis, Asia’s fourth-largest economy maintained 2 percent growth, in line with expectations.

Economy

Food Concepts Return NASD OTC Exchange to Danger Zone

Published

7 hours ago

05/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.

Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.

This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.

Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.

Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.

At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.

InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.

Economy

Investors Gain N97bn from Local Equity Market

Published

7 hours ago

05/12/2025

Dipo Olowookere

By Dipo Olowookere

The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.

This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.

UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.

On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.

Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.

Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.

A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.

This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.

For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.

Economy

Naira Loses 18 Kobo Against Dollar at Official Market, N5 at Black Market

Published

7 hours ago

05/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.

At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.

It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.

Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.

Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.

Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.

“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.

Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.

Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.

If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.

Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.