Stock Market

Global Stocks Rebound: Tokyo Leads Rally with Over 10% Surge

Published

1 month ago

August 6, 2024

Global stocks showed a strong rebound on Tuesday following a tumultuous day driven by US recession fears, which had sent investors scrambling and caused a global rout in equities.

The recovery was led by Tokyo, where the Nikkei 225 index soared over 10%, marking a significant turnaround from Monday’s record losses.

On Monday, Tokyo’s Nikkei experienced its worst performance in history, plummeting more than 12%. However, investors took advantage of the beaten-down stock prices, leading to a robust recovery.

Major Japanese companies saw substantial gains, with Toyota’s shares climbing over 12%, Sony rising more than 9%, and chip giant Tokyo Electron surging 16.6%.

The dramatic upswing in Tokyo helped lift other Asian markets as well. Shanghai, Sydney, Seoul, Taipei, Mumbai, Bangkok, and Manila all posted gains.

In contrast, Hong Kong, which initially showed positive movement, ended the day slightly in the red, while Singapore and Wellington also saw further declines.

European markets mirrored the positive sentiment with London’s FTSE 100, Paris’ CAC 40, and Frankfurt’s DAX all showing upward trends. London, in particular, edged up after losing nearly 2% on Monday.

The rebound came after Friday’s disappointing US jobs report, which showed fewer new jobs than expected and highlighted ongoing weaknesses in the manufacturing sector.

This data intensified concerns that the Federal Reserve had maintained high interest rates for too long, potentially risking a recession.

Calls have since emerged for the Fed to cut rates before its next scheduled meeting to mitigate economic downturn risks.

Japan’s Prime Minister, Fumio Kishida, addressed the situation in a news conference, urging for calm and emphasizing the government’s commitment to close cooperation with the Bank of Japan in managing economic policies.

“The stock market has been moving again today, and I think it is important to judge this situation calmly,” Kishida stated. “We will continue to monitor the situation with a sense of urgency.”

In the US, despite another challenging day on Wall Street, a better-than-expected performance in the services sector offered some relief.

The Dow, Nasdaq, and S&P 500 all experienced significant drops, but the services sector data provided a glimmer of hope.

Analysts, however, caution that volatility may persist. Nomura analysts described the gains as “sweeping and across-the-board,” yet highlighted the need for continued vigilance in the forex markets.

The Japanese yen, which had surged to a six-month high on Monday, stabilized just below 145 per dollar, indicating some relief in currency pressures.

Market observers and economists, including Nobel laureate Paul Krugman, have called for immediate rate cuts by the Federal Reserve to preempt further economic weakening.

Krugman noted, “Real case for an emergency cut soon,” citing the potential panic stemming from the recent market behavior.

Despite the recovery, Moody’s Analytics warned that the sell-off and subsequent volatility would likely cause “sleepless nights” for policymakers, particularly at the Bank of Japan.

The central bank, which raised rates last week, is now under scrutiny to ensure that it does not repeat past mistakes of tightening policy prematurely.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Dividends

Guaranty Trust Holding Company Declares N1 Interim Dividend, Sets October 7 for Payout

Published

4 days ago

September 13, 2024

Investors King

Guaranty Trust Holding Company Plc has announced its plan to pay a sum of N1 per share of 50 kobo as interim dividends, to all registered shareholders on October 7, 2024.

According to a recent statement issued by the company on NGX , “the dividend is subject to withholding tax deduction, and will be paid to shareholders whose names appear in the register as of September 25, 2024.”

In its recently released audited consolidated and separate financial statements for the period ended June 30, the Group reported profit before tax (PBT) of N1.004 trillion, becoming the first Nigerian financial institution to cross the N1 trillion mark in profit.

This represented a 206.6 percent increase over N327.4 billion recorded in the corresponding period that ended June 2023.

The group’s profit for the period was slated at N905.67 billion, a 222 percent increase from 280.52 recorded in the corresponding period that ended June 2023.

“On October 7, 2024, the dividend will be paid electronically to ordinary shareholders whose names appear on the Register of Members as at September 25, 2024, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly to their bank accounts,” the statement said.

Nigerian Exchange Limited

Nigeria’s Equities Market Gains 0.32% Boosted by Nestle, Flourmills, and FBN Holdings

Published

4 days ago

September 13, 2024

Investors King

Nigeria’s equities market rose by 0.32 percent or N178billion on Thursday, thanks to Nestle, Flourmills and FBN Holdings that led the league of major advancers on the Lagos Bourse.

FBN Holdings increased from N24 to N26.40, adding N2.40 or 10percent. Caverton rose from N2.10 to N2.31, up by 21kobo or 10percent.

Flour Mills moved from N45.05 to N49.55, up by N4.50 or 9.99percent. RT Briscoe increased from N3.02 to N3.32, down by 30kobo or 9.93 percent, while Nestle rallied from N810 to N890, N80 or 9.88percent.

At the close of trading, the Nigerian Exchange Limited (NGX) All Share Index (ASI) and equities market capitalisation increased from 96,715.04 points and N55.575 trillion respectively to 97,025.17 points and N55.753 trillion.

Access Holdings, FBN Holding, UBA, Caverton and Zenith Bank shares were most trading stocks. In 9,615 deals, investors exchanged 390,546,861 shares valued at N7.974billion.

Ahead of Thursday’s trading, analysts said broader market sentiment will remain balanced, with risk-averse investors maintaining a cautious stance ahead of any major corporate earnings announcements.

Nigerian Exchange Limited

Nigerian Exchange Recovers from Early Week Losses, Market Value Hits N55.6 Trillion

Published

5 days ago

September 11, 2024

Samed Olukoya

Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited (NGX) rebounded on Tuesday after opening the week in the red.

The NGX All-Share Index appreciated by 0.62 percent to 96,802.8 points while the market value of listed equities stood at N55.626 trillion.

Investors traded 406,194,548 shares valued at N13.313 billion in 12,241 transactions during Tuesday’s trading session.

Investors continued to show interest in Oando, which emerged as the most traded equity in both volume and value.

A total of 58,485,705 shares worth N5.521 billion were exchanged, with Oando’s stock appreciating by N6, or 6.7 percent, from N89.5 to N95.5 per share.

The second most traded stock on Tuesday was Access Holdings Plc with 30,379,481 shares valued at N557.65 million transacted.

However, Access Holdings’ shares lost 55 kobo, or 2.96 percent, declining from N18.95 to N18 per share.

The Exchange’s year-to-date (YtD) return improved to 29.46 percent.

SFS REIT led the gainers’ chart, increasing by N14.80, or 9.98 percent, from N148.35 to N163.15 per share. This was followed by Custodian Investment, which gained N1.10, or 8.87 percent, rising from N12.40 to N13.50, while RT Briscoe moved from N2.82 to N3.10 per share.