Business
Global stocks knocked down by Crimea crisis
NEW YORK – Yesterday, global equity markets fell due to the ongoing crisis in Ukraine and weak data from China.
Stocks in U.S. fell over concerns that the present crisis in Ukraine could escalate which gave investors a reason to drop some of the market’s biggest trading favourites. A selloff in biotechnology and technology shares sent the Nasdaq reeling for a fourth straight session.
The dollar firmed and the euro slipped after signs of slowing growth in Germany, the euro zone’s largest economy.
The Dow Jones industrial average .DJI ended down 26.08 points, or 0.16 percent, at 16,276.69. The Standard & Poor’s 500 Index .SPX was down 9.08 points, or 0.49 percent, at 1,857.44. The Nasdaq Composite Index .IXIC was down 50.40 points, or 1.18 percent, at 4,226.39.
The Nasdaq biotechnology index .NBI, which jumped 66 percent last year, fell 3 percent, to register a decline of 9 percent since the close of March 18. Alexion Pharmaceuticals Inc (ALXN.O) was one of the Nasdaq’s biggest losers, dropping 10 percent to $149.76.
“Biotech stocks have gone parabolic over the past few months, so this is a necessary correction to that,” said Mark D’Cruz, senior investment analyst at Key Private Bank in Cleveland. “A lot of that interest came from outside traditional biotech investors, who are now being scared off. … Biotechs really have to prove themselves this year, prove that their drugs can deliver.”
Tension between Ukraine and Russia continued to simmer after Ukraine announced the evacuation of its troops from Crimea, essentially yielding the region to Russian forces. Diplomats have raised concerns about a NATO-reported buildup of Russian troops at Ukraine’s border, and there are fears Russia also has designs on Moldova, another former Soviet republic.
Investors are concerned about the potential economic fallout, and shares of European companies with big exposure to Russia came under renewed pressure. President Barack Obama on Monday began talks with European allies on a response to the crisis as the potential for more sanctions looms.
“The issue remains contained for the time being, but Obama will try and garner support for more sanctions, which will ultimately shape our view of how things can end up looking,” said Art Hogan, chief market strategist at Wunderlich Securities in New York. “This remains at the forefront of what we’re paying attention to.”
A decline in China’s manufacturing growth in the first quarter added to worries about the global economy, although it also raised hopes for new stimulative measures from the world’s second-largest economy. Markets in China shrugged off the data, and the Hang Seng Index .HSI gained 1.9 percent.
The flash Markit/HSBC China Purchasing Manager index fell to an eight-month low of 48.1 in March. The index has been below 50, the dividing line between expansion and contraction, since January. Weakness in China is a worry for investors because of its demand for raw materials and technology.
German Bund futures extended losses after the flash composite purchasing managers’ index for France jumped to 51.6 in March from 47.9 last month.
The euro weakened after data showing growth in Germany slowed in March, raising the potential for more monetary easing from the European Central Bank. Data from the euro zone as a whole dipped compared with February.
“Germany is going to determine ECB policy,” said Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management in New York.
The FTSEurofirst 300 index .FTEU3, which rose 1.8 percent last week, ended down 1 percent.
The dollar index .DXY, which measures the greenback against a basket of currencies, was at 79.93 after reaching a session peak of 80.29, not far from Thursday’s three-week high of 80.354.
The euro last stood at $1.3838, down slightly after hitting a high of $1.3875 earlier. The dollar rose a notch against the yen, to 102.23 yen.
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
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