Business
Tech and Biotech selloff cause fall in U.S. stock
NEW YORK – U.S. stocks opened lower, extending the selloff seen at the end of last week, as investors continued to retreat from high-growth stocks in favor of more defensive corners of the market.
The Dow Jones Industrial Average dropped 67 points, or 0.4%, to 16345. The S&P 500 index declined 10 points, or 0.5%, to 1855 and the technology-heavy Nasdaq Composite Index retreated 33 points, or 0.8%, to 4095.Among early stock movers, the fast-growing Internet, social media and biotechnology companies that have been hit hard recently continued to fall Monday amid growing concerns over their high price tags. Facebook fell 1.5%, Tesla Motors declined 1.5% and the iShares Nasdaq Biotechnology exchange traded fund lost 0.8%.
Defensive stocks held up better. Among the 10 major sectors in the S&P 500, only utilities and consumer staples were higher.
Dane Leone, head of U.S. market strategy for Macquarie, said the pullback among many high-growth stocks may have further to go, given that many such companies remain expensive relative to their history.
“There are some fundamental reasons that the reversal trade out of these highflying momentum stocks could have further to play out,” Mr. Leone said. “It’s hard for someone to say that these stocks are cheap versus history.”
On Friday, the Dow hit a record intraday high early in the session before turning sharply lower, shedding 160 points, or 1%. “These stocks lost touch with what we would call reasonable valuations some time ago,” said Erwin Sanft, head of Chinese equity strategy for Standard Chartered in Hong Kong.
Blue-chip technology names rose, underscoring the appetite among investors for more defensive stocks.
Cisco Systems rose 0.5, International Business Machines gained 0.4% and Microsoft climbed 0.5%.
The economic calendar is light on Monday, with consumer credit for February due out at 3 p.m. ET. Later in the week, investors will be looking ahead to the start of the first-quarter earnings season. Dow component Alcoa is due to report after the session close Tuesday, while earnings from Wells Fargo and J.P. Morgan Chase are due on Friday.
The yield on the 10-year Treasury note slipped to 2.704% from 2.726% late Friday. Gold futures slipped 0.4% to $1,299.10 an ounce, while crude oil futures lost 0.6% to $100.51 a barrel. The dollar edged lower against the euro and the yen.
In Europe, the Stoxx Europe 600 fell 1%, after rallying 4.6% over the past nine sessions.
Germany’s DAX 30 index slumped 1.4%, despite data showing German industrial output increased 0.4% on the month in February, beating economists’ expectations of a 0.2% monthly rise. France’s CAC 40 gave up 0.8% and the U.K.’s FTSE 100 dropped 0.7%.
Also weighing on sentiment, Russian stocks came under renewed pressure after antigovernment protesters calling for closer ties with Moscow seized regional government headquarters in two cities in Ukraine’s east Sunday.
Russia’s Micex stock index slumped 3.3%.
Asian markets were broadly lower, with Japan’s Nikkei Stock Average leading the way with a 1.7% decline. Markets in mainland China were closed Monday for a holiday.
– WALLSTREET JOURNAL
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.. . .. .
The 63rd Annual General Meeting (AGM) of the Nigerian Exchange Group Plc (NGX Group), held at the Nigerian Exchange Group House on Monday, April 29, 2024.
During the gathering, the Group concluded on ordinary and special business matters, while also unveiling plans to embark on a comprehensive digital transformation strategy to expand its business operations in line with its overarching strategy.
The meeting’s agenda, approved by the Board of Directors, included the declaration of a final dividend, ratifying the appointment of Temi Popoola as the Group Managing Director/Chief Executive Officer of NGX Group, presenting financial statements to shareholders, re-electing non-executive directors retiring by rotation, authorizing, and disclosing remuneration, among other undertakings.
Notably, the NGX Group, subject to regulatory approval, discussed its authorization on a rights issue to raise capital of up to N10 billion with a subjoined resolution to increase its share capital to sufficiently accommodate the rights issue.
All resolutions were approved by shareholders just as appointment and reelections of directors were ratified.
Following substantial authorization across its agenda, the NGX Group introduced plans to propel the markets with a digital transformation journey that includes an online platform for public offers and deep investments in its technology stack amongst others.
The platform will provide a smarter and efficient way for Issuers to raise capital and enhances the subscription process and operational workflow of POs in the capital market including initial public offerings (IPOs), rights issues and other public offers.
On the development, the Group Chairman, NGX Group, Umaru Kwairanga said, “I am particularly grateful to our shareholders for their assent to the critical business we conducted today. As the Board oversees the strategic direction and gives management the necessary support and guidance, we believe that the coming year will be a better one in terms of value created for our shareholders.
“NGX Group is positioned to capitalize on opportunities amid the positive and forward-looking reforms by the government and our stakeholders should rest assured we will deliver excellently.”
On his part, Group Managing Director/Chief Executive Officer, NGX Group, Temi Popoola, said, “As we complete our 63rd AGM, I extend my sincere gratitude to our shareholders, customers, employees, regulators, and directors for their steadfast support. In a year that underscored NGX Group’s strategic agility and operational excellence, we witnessed growth stemming from our dynamic revenue streams. We are optimistic and well-positioned to forge a future marked by success, resilience, and prosperity.
Addressing the digital transformation agenda, Popoola stated, “The future of our business and the capital markets hinges on technology. That is why we are driving this digital transformation journey across our subsidiaries through the Group. NGX Group’s digital transformation will democratize access to public issuances for every Nigerian with a mobile phone, supporting capital-raising efforts for companies. Additionally, we aim to commercialize our technology solutions and expand our footprint across Africa”.
Key insights and proceedings from the NGX’s AGM can be accessed via the live recording available on NGX Group’s website at www.ngxgroup.com.
. . . Firm Declares N4.5bn Dividend For 2023
The Nigerian Content Development and Monitoring Board (NCDMB) has announced that it had received an interim dividend payment of N450 million out the N1.5bn declared by the Waltersmith Refinery and Petrochemical Company Limited.
The NCDMB made the disclosure on Monday, adding that the payment represented NCDMB’s 30% share in the company for the year ended 2023.
Recall that the NCDMB had in July 2018 invested $10m to acquire 30% stake in the 5000 barrels-per-day (bpd) modular refinery project located at Ibigwe, Imo State, to support the Federal Government’s policy on modular refinery, stimulate investment and create employment opportunities.
Rising from a Board Meeting of Waltersmith Refinery and Petrochemical Company Limited, the Executive Secretary, NCDMB, Engr. Felix Omotsola Ogbe confirmed that a total dividend of N4.5bn had been approved for the year 2023, pending final approval at the Annual General Meeting (AGM).
The company reported a total profit of N23.6bn as profit after tax for the same year.
The Executive Secretary hinted that NCDMB expects to receive additional 30 percent of the outstanding N3bn dividend after the AGM is convened later this year.
He added that the receipt of this interim dividend payment was a testament to the strong performance and profitability of Waltersmith Refinery and Petrochemical Company Limited.
He said, “The NCDMB is proud to be a part of this success and looks forward to continued collaboration with the company in the future.”
He affirmed that the company was upscaling the refinery capacity from 5000 bpd to 10,000bpd and the expansion project was already 44 percent completed and on time to be commissioned by early 2025.
The NCDMB’s investment in the Waltersmith project was also geared to catalyse the industrialisation of the Nigerian oil and gas industry and its linkage sectors and deepen Nigerian Content in the oil and gas industry. It was the first third-party investment embarked by the Board, and it provided proof of concept and paved the way for other successful investments by the Board.
Two weeks ago, NCDMB received a cheque of $1 million from Nedogas Development Company Limited (NDCL), being part of the return on investment (ROI) on one of the Board’s strategic investments.
The cheque was presented by the Chairman of the company, Engr. Emeka Ene when he visited the Nigerian Content Tower in Yenagoa Bayelsa State, where he was received by the Executive Secretary, Engr. Felix Omatsola Ogbe and other members of the Board’s management.
Nedogas Development Company Limited (NDCL) is a joint venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company and it culminated in the construction and commissioning of a 300 MMscfd Capacity Kwale Gas Gathering (KGG) and injection facility located in the Umusam Community, near Kwale in Delta State, Niger Delta, Nigeria.
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