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Euro share, peripheral bonds fall over election pressure

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LONDON – European shares and peripheral bonds buckled for a second day running on Tuesday, as political angst offset optimism over fresh support from the ECB.

The premiums demanded by investors to hold Spanish, Italian and Portuguese bonds rather than German Bunds rose to two-month highs amid growing nervousness about this week’s European Union elections.

Coupled with recent disappointing growth data, the worry is that strong showings by Eurosceptic parties from Greece to France could derail domestic reforms.

Shares across the region .FTEU3 faltered after a broadly solid start. The main bourses in London .FTSE, Frankfurt .GDAXI and Paris .FCHI dropped 0.5, 0.3 and 0.5 percent respectively. U.S. stock futures pointed to a lower start for Wall Street.

The upcoming elections will be the first time since the euro zone debt crisis began that the European electorate will get a chance to voice its opinion, said Kelly Craig, a global macro strategist at J.P. Morgan Asset Management.

“The polls are suggesting that 25 to 30 percent of seats could go to the Eurosceptic parties … that shows that a lot of people aren’t really happy with the way things are going,” he said. But that “may actually force the more center right and center left parties to work more closely and not have the feared big impact on the policy direction at the European level.”

The euro was back under $1.37, after two weeks of hints the ECB will loosen policy, which have undermined bets the single currency would top $1.40.

A trio of ECB policymakers – Finland’s Erkki Liikanen, Austria’s Ewald Nowotny and Spain’s Luis Linde – are all due to speak later. Analysts will be hoping for further clues on the decisions likely to be made at its meeting at the start of June.

“Largely baked into the (market) prices are a refi rate cut and a negative deposit rate and perhaps something additional like a targeted LTRO,” said J.P. Morgan AM’s Craig. “But the chance of anything firm in terms of asset purchases is low and markets had maybe been pricing a little bit of that in.”

THAI UNREST

Nervousness had also washed in from Asia, where Thailand declared martial law overnight after months of unrest and the Australian dollar dropped on uncertainty about its biggest industry, mining.

Thailand’s baht initially fell against the dollar, then steadied as dealers suspected the Thai central bank had intervened. Bangkok’s SET index .SETI also pared back some of its early losses to end down 0.8 percent.

The declaration of martial law was intended to restore peace and order and does not constitute a coup, deputy army spokesman Colonel Winthai Suvari told Reuters.

Fitch Ratings said the move was not in itself negative. “It may even help to break Thailand out of the political deadlock of the past six months, by which the two sides have failed to agree on arrangements for new elections,” said Andrew Colquhoun, its head of Asia-Pacific Sovereigns.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped about 0.3 percent. But Japan’s benchmark Nikkei stock average .N225 bucked the downtrend and tracked overnight gains on Wall Street.

BOJ ON DECK

The Australian dollar was the main mover on major currency markets on Tuesday, falling more than half a percent after a decline in the price of iron ore, one of the country’s biggest exports. <FRX/>

In the UK, high-flying sterling rose to a 16-month peak against the euro after a report showed British inflation rose more than expected in April. That also helped to widen the gap in yields between UK and euro zone government bonds.

“The data fuels expectations for an early rate hike from the Bank of England, this despite the dovish tone of the Inflation Report last week,” said Alex Edwards, head of corporate desk at UK Forex.

The dollar .DXY was slightly lower against the yen after dropping to its lowest in more than three months overnight. It last bought 101.32 yen, down about 0.2 percent on the day.

The BoJ is set to conclude its latest two-day policy meeting on Wednesday. Governor Haruhiko Kuroda has maintained an optimistic view of the Japanese economy, keeping expectations of further policy easing at bay.

In commodities trading, U.S. crude rose slightly, to $102.77 per barrel, after the weaker dollar lifted it close to a one-month high in the previous session. Spot gold was steady at $1,292.04 an ounce.

– REUTERS

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Marketers Eye Portion of FG’s Petrol Discount

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The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to add its member-stations to the petrol discount programme.

It cautioned that the current arrangement could limit the reach and deny vast consumers in underserved communities the benefits of the 30-day discount window.

The PETROAN also urged the FG to allocate at least 30 percent of the discounted petrol volume to outlets operated by its members.

READ ALSO: Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

The calls followed last week’s announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, of a petrol discount at Nigerian National Petroleum Company Limited (NNPC Ltd) retail outlets, with priority given to public transport operators nationwide.

According to the National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, the exclusion of independent marketers could undermine the programme’s effectiveness, particularly in communities where NNPC retail outlets have limited presence.

He argued that independent marketers, with their extensive nationwide distribution networks, were better positioned to extend the benefits of the intervention to consumers in remote and underserved areas.

“Independent oil marketers have over 90 percent coverage and presence in the nooks and crannies of this country. You are giving NNPC that is situated only in the town. So how do the poor masses, whom you intend to ensure that this petroleum product will alleviate their sufferings, how would they now get it?” Ukadike asked.

He said the association was not opposed to the government’s policy but insisted that independent marketers should be included to ensure wider access to the discounted product.

“But it’s government policies; we are not against government policies, but let it be all-inclusive; let independent marketers be part of it,” he said.

Ukadike also urged the government to extend the discount period to 60 days, citing logistical challenges that could delay the movement of petrol from coastal depots to other parts of the country.

“And the 30 days should be extended to 60 days. Because of the circulation of petroleum products, most times it takes two weeks for a truck to leave Apapa and get to Gombe, Maiduguri, because of the bad road and all the rest of them and loading process,” he added.

Similarly, PETROAN National President, Billy Gillis-Harry, urged the Federal Government to allocate 30 per cent of the discounted petrol volume to the association’s retail outlets to facilitate broader national distribution.

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Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

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In the bid to transform Tanzania into the East African regional energy hub, the country is on the verge of concluding an agreement with a consortium of energy companies, including a $42 billion LNG project.

It was gathered that the project is designed to tap the 47.13 tcf of gas discovered in Tanzania’s deep offshore fields, part of the country’s estimated 57.54 tcf in total discovered reserves, the sixth-largest in Africa, behind Nigeria, Algeria, Senegal, Mozambique and Egypt.

READ ALSO: Shell Identifies Keys to Nigeria’s Energy Future

Equinor and Shell would be the lead operators, alongside involvement from ExxonMobil Pavilion Energy and Medco Energi, while state oil major, the Tanzania Petroleum Development Corporation (TPDC), would also hold an equity stake in the project.

“It’s almost there,” Khamis Mussa Omar, Tanzania’s finance minister, told Reuters.

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Small Investors Take Centre Stage as Dangote IPO Nears Close

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President of Dangote Group, Aliko Dangote, has reaffirmed his commitment to ensuring broad-based participation in the Dangote Refinery’s Initial Public Offering (IPO).

In a statement, the industrialist announced that investors applying with ₦50,000 and below will receive priority consideration as the company seeks to democratize ownership of one of Africa’s most significant industrial assets.

Dangote made the declaration during the final leg of the nationwide IPO roadshow held in Port Harcourt, Rivers State, where investors, financial market experts, business leaders and other stakeholders gathered to discuss the investment opportunity and its implications for Nigeria’s economic transformation.

READ ALSO: Sahara Champions Global Shipping Collaboration for $20m Mercy Ships Healthcare Impact

Speaking at the event, Dangote emphasised that the IPO should be viewed not merely as an investment opportunity, but as a chance for Nigerians to become shareholders in a landmark enterprise that is reshaping the country’s industrial landscape.

“We will prioritise people with ₦50,000 and below,” Dangote stated, underscoring the Group’s determination to make the offering accessible to small and medium-scale investors across the country.

He noted that while international and African investors had already committed substantial capital to the refinery, the IPO now offers Nigerians a rare opportunity to participate directly in the ownership of a world-class industrial project built on Nigerian soil.

According to him, investing in the refinery goes beyond financial returns, representing a vote of confidence in Nigeria’s future, institutional development, corporate governance standards and industrial capacity.

“African investors have invested in this refinery. Now it is time for Nigerians to invest in themselves and participate in a project that is creating value, jobs and opportunities for generations to come,” he said.

Dangote also encouraged prospective shareholders to adopt a long-term investment perspective, noting that participation in the IPO presents a pathway to wealth creation, portfolio diversification and increased public engagement with the capital market.

He added that wider participation in the stock market would deepen financial literacy, promote a savings and investment culture, and enable more Nigerians to better understand how businesses create value and contribute to economic growth.

The roadshow also featured insightful presentations from leading economists and market analysts on the refinery’s economic significance and the broader opportunities associated with the public offering.
Renowned economist Bismarck Rewane highlighted the enormous economic potential of the South-South region and stressed the need to convert the area’s resource endowment into sustainable prosperity, infrastructure development and improved living standards. He also noted that the IPO presents an opportunity to deepen Nigeria’s capital market by encouraging citizens to participate actively in wealth creation.

Similarly, economist Dr. Muda Yusuf outlined the refinery’s far-reaching impact on economic diversification, domestic value addition, energy security, capital formation and employment generation.

According to Yusuf, the refinery represents far more than a petroleum-processing facility, serving as a catalyst for growth across multiple sectors including petrochemicals, packaging, manufacturing, logistics and other downstream industries.

He further emphasized that policy consistency, regulatory stability and sustained stakeholder engagement remain critical to maintaining investor confidence and attracting long-term capital into Nigeria’s industrial sector.

Speaking on the investment outlook, stakeholders urged prospective investors to consider the company’s operational performance, valuation metrics and long-term fundamentals when evaluating the offer.

Yusuf also described the refinery as a major example of domestic value addition, noting that its extensive local content and industrial linkages would significantly amplify its contribution to the Nigerian economy.

Discussions at the event further highlighted the importance of sound monetary policy, affordable financing and a predictable business environment in supporting investment-led growth and industrial expansion.

The Port Harcourt engagement was particularly significant for the South-South region, with legal luminary and business leader Paul Usoro expressing satisfaction at the level of participation from investors across the region.

“My joy is to see the South-South well represented,” Usoro said, stressing the importance of ensuring that investors from the region take advantage of the opportunity presented by the IPO.

The Port Harcourt event marked the final stop of the nationwide IPO roadshow, concluding a series of engagements designed to deepen public awareness and expand participation in what is widely regarded as one of the most significant capital market offerings in Nigeria’s history.

For Dangote Group, the objective remains clear: to provide Nigerians from all backgrounds with an opportunity to participate in the ownership of a transformative industrial enterprise while contributing to economic growth, employment generation and national development.

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