Stock Market gains N299bn
The Nigerian stock market ended its three days losing streak gaining N299 billion in the process following investors’ bargain hunting on the shares of MTNN.
Thus, the all-share index (ASI) edged higher by 554.15 basis points or 1.1 percent to close at 53,275.49 basis points a drive that continues to set the pace for all other stock markets in the continent. Fortunately, the year-to-date figure sustained it’s upward drive as closed at +24.7 percent.
In the process the equities market gained N298.75 billion or 1.1 percent to close at N28.721 trillion as against its Wednesday trading close of N28.422 trillion.
The gains in the market was a result of massive investors’ attention on the shares of MTNN, SEPLAT, TRANSCORP, CONOIL and NESTLE.
Unfortunately, the market turnover failed to gather enough drive as it decreased by 55.1 percent as investors bought and sold only 274.56 million unit of shares valued at N8.45 billion and exchanged in 5,184 deals.
The gainers’ table was led in percentage parameters by Transcorp Hotels Plc, as it shares rose by 9.89 per cent or 63 kobo to close at N5. 89 kobo per share, followed by BetaGlas Plc and McNichols Plc which gained 9.74 per cent and 9.60 per cent to settle at N62. 55 kobo and N1. 94 kobo per share respectively.
CONOIL which dominated the losers chart yesterday experienced more of a sell trade as it lost 10 percent or N3.15 to close at N28.35 followed by Eterna, Plc which lost 9.59 per cent to close at N6. 60 kobo per share.
UK consumer confidence falls to record low – GfK
The consumer confidence in the United Kingdom fell to record low of -40 in May 2022, surpassing the previous low of -39 set in July 2008.
The consumer confidence data was computed by the GfK group which is a market research company based in Nuremberg, Germany. The consumer confidence in the United Kingdom which unfortunately is the lowest in 14 years was influenced largely by the rising cost of living occasioned by the rising food and energy prices.
“This means consumer confidence is now weaker than in the darkest days of the global banking crisis, the impact of Brexit on the economy, or the Covid shutdown.” Joe Staton, client strategy director at GfK said reflecting how bad the situation in the Uk has become.
The report from GfK showed that consumers pessimism has worsen following how bad the economy has gotten. This was shown in the index score as it fell to -63 for 2021 and -56 for the coming year (2023).
Rising energy bills, record petrol prices and rising food costs drove inflation in the UK to its highest point of 9 percent making it the highest in 40 years.
According to the market research think-tank, it warned that in April economists had warned based on the fall in consumer index to -38 that the British economy was likely going to fall into recession.
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Japan consumer prices hit 7 yr high
With the ongoing war looking more like a dead end, the disruption in the global supply of food items is having a terrible impact on every economy regardless of economic status.
Report from tradingeconomics, showed that consumer prices in Japan rose 2.5 percent yoy in April, 2022, which is highest since October 2014.
Driven by rising food prices, the latest figure showed the fastest it has gotten to in more than 7 years (4 percent as against 3.4 percent in March).
Other factors driving inflation to this level are the fuel price, electricity and water charges (15.7 percent vs 16.4 percent), clothes & footwear (0.8 percent vs 0.7 percent), culture & recreation (1.3 percent vs 1.3 percent), housing (0.4 percent vs 0.3 percent), furniture (2.3 percent vs 0.4 percent), education (0.9 percent vs 1.4 percent), and miscellaneous (1.2 percent vs 1 percent). At the same time, cost of transport fell by 0.2%, much softer than a 7% drop in March.
Meanwhile, “prices of medical care dropped by -0.7 percent as against -0.4 percent in the previous month while the core consumer prices went up 2.1% yoy, the 8th consecutive month of rises and the most since March 2015, matching forecasts and slightly above the BoJ’s 2% target.” The report from tradingeconomics stated.
Apparently, the government’s effort to help drive inflation down is yielding positive results yet as consumer prices went up 0.4 percent on a month-to-month basis in April, the same pace as in the prior two months.
Biden to push Sweden and Finland NATO bid unfazed by Turkey
Despite opposition from Turkey, President Joe Biden plans to show support for Baltic nations, Sweden and Finland desire to join the North Atlantic Treaty Organization (NATO).
The president’s show of support to the Baltic nation will come when it hosts Finnish President Sauli Niinisto and Swedish Prime Minister Madgalena Andersson in a meeting at the White House on Thursday.
Biden, will discuss the two countries’ applications for membership in the wake of Russian attack of Ukraine and threat to both countries if they join NATO.
According to Bloomberg, the US National Security Advisor Jake Sullivan said that both countries leaders will deliver statements to express confidence in their admission into the alliance will be hasten in the wake of the Russian attack on Ukraine.
However, Biden speaking to reporters assured the world that the concerns raised by Turkey will be addressed “I’m not going to Turkey, but I think we’re going to be OK,”
Reports show that the US is ready to throw the bloc’s largest military power behind the two countries’ inclusion, which would re-shape Europe’s post-Cold War security landscape.
Up until now, both Baltic countries who are close neighbours have remained neutral not aligning themselves to either of the military power houses. However, the attack on Ukraine by Russia changes all that driving public sentiments for leaders of both nations to join the NATO alliance as a way of protection from any possible russain aggression.
A move many international affairs analysts see as an embarrassment to President Vladimir Putin who just last month threaten nuclear attack on them if they went on to join the NATO alliance.
However, the small matter of President Recep Tayyip Erdogan objection based on claims that Sweden and Finland supported Kurdish militas in its attack on Turkey must first be resolved before their admission can be ratified.
Of which failure to arrive at an agreement will serve as a major set for the US-backed NATO alliance and a plus to Russia who had strongly objected to Sweden and Finland application.
S.African wealth manager Investec’s annual profit rise by 91%
One of the continent’s biggest asset managers, Investec, has declared that its profit for the full financial year 2021 rose by 91 percent, the highest it has attained in the past 5 years.
The South African lender, which has been structuring investment products for the intermediary market since 2006, linked its rise in profits “to strong loan growth, client acquisitions and increasing funds under management,” a statement issued on Thursday by the firm said.
The company, which services higher-income clients, reported an adjusted earnings per share-profits made in the course of ordinary operations-of 55.1 pence for the year ended March 31, a tad higher than its estimate.
The company announced a final dividend of 14 pence per share, taking its full year dividend to 25 pence per share.
This announcement wasn’t strong enough to drive its shares upward as traders were motivated enough to force its share price to lose 1.37 percent, closing at 9,037 Rand as at 11.55 GMT on Thursday.
Unfazed by the COVID-19 2020 lockdown and the attendant effect on trade and the general South African economy, the lender has been amongst the best banks not only in South Africa but the entire continent of Africa.
The bank said that its outstanding performance was mainly driven by its strategic focus “on acquiring and servicing quality clients, cutting costs, and hiving off non-core businesses.”
Investec primarily operates in specialist banking, whereby it serves the banking needs of high-value clients, and wealth management in South Africa and the UK. This translates into two main sources of revenue for the company—funds under management and loans.
In an interview with Reuters, Fani Titi, the Chief Executive Officer, stated that inflation, fueled primarily by events in Ukraine, will have an impact on the financial industry’s performance.
“The environment and the outlook is cloudy, but we are confident in the quality of our clients… and the fundamental strength of our business,” he said.
