• Wednesday, February 28, 2024
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Five things to know to start your Wednesday

Buyers dominate stock market ahead of MPC outcome

Nigeria’s stock market opens negative

Nigeria’s stock market decreased by 0.16 percent or N47billion on Tuesday, the first trading day in this holiday-shortened week.

At the close of trading session, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation decreased to 53,113.64 points and N28.634trillion respectively, from preceding day’s 53,201.38 points and N28.681trillion.
FCMB Group, UBA, Transcorp, Access Holdings and GTCO were most traded stocks on the Exchange. In 5,394 deals, investors exchanged 299,994,739 shares valued at N3.099billion. The market’s positive return has decreased to 24.34percent year-to-date (YtD).

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Japanese shares unsettled ahead of US Fed rate decision

As the global market awaits the US Fed rate decision, the Japanese stocks market-the Nikkei 225 and Topix indexes both lost 0.6 percent of their market value to close at 26,470bps and 1,867bps respectively.

Investors anticipate another interest rate hike to combat inflation, which reached 8.6 percent in May, the highest level in 40 years, according to the US Bureau of Labor Statistics.

The consensus at today’s monetary policy meeting is that the Jerome Powell-led US Fed will increase rates by 75 basis points rather than the 50 basis points agreed at the May meeting.

On a sector-to-sector analysis, technology shares led the decline as Keyence, Mitsui High-Tec, and Recruit Holdings all registered the most losses for the sector with -2 percent, -5.2 percent, and -2.2 percent, respectively. Energy firms followed the tech sector as they also fell on weaker oil prices, with Inpex Corp sustaining the most loss of-4.2 percent.

US futures rise as Fed rate hike looms

US stock futures gained slightly as investors prepare for further rate hikes following the latest inflation report.

The rate of increase in interest is still being debated amongst analysts as the consensus reading says that the rate will be increased by 75 basis points against 50 basis points.

According to Yahoo Finance, the Dow futures rose 0.43 percent, S&P 500 futures gained 0.52 percent and Nasdaq 100 futures gained 0.65 percent to close at 30,658bp, 3,770bp, and 11,370bps respectively.

However, by the end of regular trading on Tuesday, the S&P 500 and Dow Jones had lost 0.38 percent and 0.5 percent, respectively, while the Nasdaq 100 had gained 0.18 percent.

The S&P 500’s loss was the fifth straight loss for the index, forcing it into a bear market. This is according to tradingeconomics.

Meanwhile, all roads lead to Washington D.C.’s Eccles Building, where the US Federal Reserve is expected to announce its latest monetary policy decision today.

Again, the consensus is that it is going to be a 75 basis point increase rather than a 50 basis point increase.

Canada dropping vaccine mandate for domestic and outbound international travel June 20

According to ctvnews.ca, the government of Canada has decided to drop the requirement that all domestic and outbound international travellers be fully vaccinated against COVID-19, effective June 20.

The new rule maintains that all re-entry COVID-19 requirements are to remain in effect, and all passengers are expected to continue to wear their face masks.

This development will allow about 3.7 million unvaccinated Canadians who have been marginalized because of their decision not to take the vaccine to board planes and trains heading to either domestic or international locations.

“However, they will still be required to follow the current testing and quarantine requirements upon re-entry from international destinations.” The ctvnews.ca report stated

The rule only applies to citizens of Canada, as foreigners coming to Canada will still be required to be vaccinated in order to enter.

European Court steps in as UK migrant flight to Rwanda gets grounded

The European court stepped in as the first flight from Britain to take asylum seekers to Rwanda was grounded at the airport on Tuesday.

The British government had entered into a 120 million pound deal with the government of Rwanda to move migrants to Africa who entered the United Kingdom through the English Channel.

The deal has been heavily criticised by opponents, charities, and religious leaders as being “brutally inhumane.”

Reuters reports that the home office has had to fight a series of legal challenges in London courts aiming to stop it going ahead.

Just recently, at least 30 individuals earmarked to fly to Rwanda argued that they should not be deported to Rwanda based on health or human rights grounds.

According to Reuters, shortly before the plane was due to leave the airport, the European Court of Human Rights (ECHR) granted injunctions to prevent their deportation.

However, the High Court in London is due to hold this judicial review in July to decide on the legality of the scheme.