Connect with us

Stock Market

Japanese Equities Take a Hit: Biggest Slide Since October

Published

on

asian stocks

Japanese equities experienced their most significant downturn since October as both the Topix and the exporter-heavy Nikkei 225 plummeted over 2%.

The market turmoil was fueled by mounting speculation that the Bank of Japan (BOJ) might raise interest rates, causing the yen to strengthen and dealing a blow to exporters.

In Tokyo, the Topix concluded 2.2% lower at 2,666.83, with 31 of its 33 sub-sectors recording declines. Similarly, the Nikkei 225 fell by 2.2% to 38,820.49, leading losses across Asia.

The tech sector particularly suffered, mirroring the downward trend observed among US peers, as investors capitalized on profits from top performers of the past year.

The anticipation of policy adjustments at the upcoming March 18-19 BOJ meeting gained traction amidst reports suggesting a potential overhaul of the bank’s yield curve control program.

Also, an increasing number of policymakers leaning toward ending negative interest rates added to market uncertainty.

Data indicating Japan’s economy narrowly avoided recession by the end of last year further fueled speculation regarding a rate hike.

Tony Sycamore, a market analyst at IG Australia Pty Ltd., remarked, “Today’s sell-off reflects the realization that after many false dawns, the Bank of Japan’s exit from the Negative Interest Rate Policy is now likely just over one week away.”

This sentiment triggered a swift re-evaluation of long-term investment strategies by market participants.

The yen’s ascent to 146.98 per dollar following four consecutive days of gains exacerbated concerns, particularly for exporters, who have benefited from a weaker currency.

The market’s reaction underscores the pivotal role BOJ policies play in shaping investor sentiment and market dynamics in Japan.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Nigerian Exchange Limited

NGX Index and Market Cap Up by 0.44%, Gains Hit N246bn

Published

on

stock - Investors King

The Nigerian equity market continued its upward trajectory for the third consecutive day as the Nigerian Exchange (NGX) All-Share Index (ASI) and market capitalisation closed in the green.

The Nigerian Exchange (NGX) All-Share Index (ASI) and market capitalisation increased by 0.44% on Wednesday. This upward movement translated into a significant gain of approximately N246 billion.

The NGX ASI closed at 98,818.04 points, up from the previous day’s 98,383.04 points.

Similarly, the market capitalisation rose to N55.90 trillion from N55.65 trillion, indicating a robust performance across various sectors.

Key contributors to the market rally included Abbey Mortgage Bank, which appreciated by 9.76% to close at N2.70 per share.

The National Salt Company of Nigeria (NASCON) followed closely with a 9.66% rise to N40.85 per share. First City Monument Bank (FCMB) also saw a significant gain of 9.63%, closing at N7.40 per share.

The positive sentiment was not limited to a few stocks; 28 other gainers also contributed to the market’s overall performance.

This widespread optimism among investors helped improve the year-to-date return from 31.6% to 32.2%, reflecting a more bullish outlook for the market.

The Consumer and Industrial Goods sectors were among the top performers. The Consumer Goods Index rose by 0.9%, driven by gains in Dangote Sugar and NASCON Allied Industries Plc.

The Industrial Goods Index saw a modest increase of 0.1%, supported by positive movements in West Africa Gas Pipeline Company.

Despite the overall positive trend, some stocks experienced losses. International Energy Insurance led the laggards, dropping by 9.68% to close at N1.40 per share.

Jaiz Bank shed 6.52% to close at N2.15, and Tantaliser fell by 6.00% to N0.47 per share.

The market saw a slight dip in trading volume and value, which decreased by 7.3% and 27.6%, respectively.

A total of 518.9 million units valued at N4.8 billion were traded on Wednesday, indicating a cautious yet optimistic trading environment.

Market analysts attribute the sustained rally to renewed investor confidence and strategic buy demands in key stocks such as Dangote Sugar, First Bank of Nigeria Holdings, and Zenith Bank.

“The consistent upward movement in the market reflects positive investor sentiment and a stable economic outlook,” said market analyst Chinedu Okafor.

As the market continues to show signs of strength, investors remain hopeful that the positive momentum will sustain. With the year-to-date return improving, market watchers are optimistic about future gains, especially if current economic conditions and investor sentiments remain favorable.

Continue Reading

Nigerian Exchange Limited

Nigerian Equity Market Gains N294bn Amid Bullish Trend

Published

on

Nigerian Exchange Limited - Investors King

The Nigerian equity market continued its bullish momentum on Tuesday, delivering significant gains for investors.

By the close of trading, the market capitalization of the Nigerian Exchange (NGX) surged by N294 billion to settle at N55.65 trillion.

Concurrently, the All-Share Index (ASI) rose by 0.53%, reaching a new high of 98,383.04 basis points.

Surge in Trading Volume

Market participation saw a remarkable increase, with the volume of traded units soaring by 52.49% to 559,608,966 units.

This heightened activity underscored the bullish sentiment that dominated the day’s trading, with the NGX recording 28 gainers compared to 14 losers.

Top Gainers and Losers

Leading the pack of gainers was Dangote Sugar, which appreciated by 10% to close at N42.90 per share. Morison Industries Plc also saw a significant rise, with its stock price increasing by 9.88% to N4.45.

Similarly, the National Salt Company of Nigeria (NASCON) experienced a 9.88% gain, ending the trading session at N37.25 per share.

On the flip side, Sovereign Trust Insurance was among the top losers, shedding 9.52% to close at N0.38 per share. Universal Insurance Plc followed with an 8.33% decline, closing at N0.33, while The Initiate Plc dropped by 7.08% to N1.71.

Sectoral Performance

The bullish activity was reflected across various sectors, with five indexes posting gains. The Banking and Oil and Gas sectors were the standout performers, rising by 2.4% and 1.9%, respectively.

This was largely driven by buy interests in stocks such as United Bank for Africa (UBA), First Bank Holdings, Seplat Energy Plc, and Japaul Gold and Ventures Plc. The Consumer Goods and Insurance indexes also saw gains, increasing by 1.1% and 0.7%, respectively.

Conversely, the Industrial Goods sector was the sole laggard, dipping by 0.20%. Despite this, the overall market sentiment remained positive, buoyed by robust performances in other sectors.

Most Traded Securities

Seplat Energy Plc emerged as the most traded security by value, with N1.60 billion worth of shares exchanged across 51 deals. In terms of volume, Abbey Mortgage Bank led the chart, with 277,527,586 units traded in eight deals.

Outlook

The continued bullish trend in the Nigerian equity market reflects growing investor confidence and optimism.

Analysts suggest that the positive performance could persist if the current market dynamics remain favorable.

However, they also caution that sustained growth will depend on broader economic stability and continued investor interest.

In summary, Tuesday’s trading session was marked by significant gains and heightened trading activity, underscoring the resilience and potential of the Nigerian equity market. As investors capitalize on these bullish trends, the market’s outlook remains cautiously optimistic.

Continue Reading

Nigerian Exchange Limited

Nigerian Exchange Suffers as Foreign Investment Drops 19% in April

Published

on

Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited (NGX) experienced a significant downturn in April with foreign investment inflows dropping by 19.14% month-on-month to N42.58 billion from N52.66 billion in March.

This decline reflects the waning confidence of foreign investors in the local equity market, despite the government’s ongoing efforts to stabilize the economy.

According to the Domestic & Foreign Portfolio Investment Report released by NGX, the decrease in foreign inflows has been accompanied by a dramatic rise in foreign outflows, which surged by 88.10% to N78.25 billion from N41.60 billion in March.

This sharp increase underscores the persistent low appetite of foreign investors for Nigerian equities, a trend that has been evident since the beginning of the year.

Foreign outflows have steadily risen from N37.33 billion in January to N40.88 billion in February, indicating a growing concern over the market’s volatility and economic stability.

The combined foreign transactions on the NGX showed an overall increase of 28.19% to N120.83 billion in April, up from N94.26 billion in the previous month.

However, this uptick was not enough to offset the bearish trend that dominated the market, leading to a loss of approximately N3.54 trillion.

Investors have been shifting their focus towards alternative markets that offer better yields and more stability.

Compounding the situation is the impending settlement of $1.30 billion worth of cleared USD/naira-settled non-deliverable forwards (NDF) contracts on the FMDQ securities.

These contracts, set to mature on Wednesday, could put additional pressure on the already strained naira.

Cleared naira-settled NDFs are agreements where parties commit to an exchange rate for a future date without the obligation to deliver the actual US dollar upon settlement.

Instead, the contracts are cash-settled in naira, with the settlement amount determined by the differential between the contract rate and the Nigerian Autonomous Foreign Exchange Fixing rate at maturity.

Financial market analyst Olaide Baanu highlighted the potential impact of this settlement, stating, “The settlement of $1.3 billion implies a cash payment of approximately N1.8 trillion from the Central Bank of Nigeria (CBN) based on the NAFEX rate of around N1,400/dollar. Such a significant cash outflow is likely to lead to further depreciation of the naira beyond the CBN’s target or desired range.”

The CBN may face challenges in managing the liquidity impact of this large payment. Baanu suggested that the central bank might need to intervene in the foreign exchange market to stabilize the naira’s value, possibly through measures to lower the official exchange rate or by issuing promissory notes to prevent excessive naira circulation at once.

Despite efforts to bolster non-oil revenues, the Nigerian economy remains heavily dependent on oil, which accounts for about 90% of the national budget.

The market’s recent performance reflects the urgent need for diversified revenue sources and more robust economic reforms to restore investor confidence and stabilize the currency.

The ongoing economic challenges underscore the importance of effective policy implementation and transparent governance to attract and retain foreign investment.

As the NGX navigates this turbulent period, stakeholders are closely watching for signs of stability and growth that could reignite investor interest in the Nigerian market.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending