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U.S. stock futures decline on Fed rate worries

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NEW YORK – U.S. stock futures extended the previous session’s declines, as investors weighed the potential for the Federal Reserve to raise interest rates earlier than expected.

Rate worries also hit on overseas markets.

Dow Jones Industrial Average futures lost 38 points, or 0.2%, to 16101 about 50 minutes before Thursday’s opening bell.

S&P 500 index futures dropped five points, or 0.2%, to 1848 and Nasdaq-100 index futures fell 10 points, or 0.3%, to 3664. Changes in stock futures don’t always accurately predict stock moves after the opening bell.

The S&P 500 fell 0.6% on Wednesday, an abrupt reversal after running up 1.7% in the week’s first two sessions.Investors were unsettled by Fed Chairwoman Janet Yellen’s first post-meeting news conference, after Ms. Yellen said the central bank could raise rates “something on the order of six months” after the bank shuts down its bond-buying program. That time frame could mean a rate increase as early as April next year, ahead of the late 2015 market expectation.

The Fed continued to pare back on its monthly bond-purchasing program, a move that was widely expected.

David Kotok, chief investment officer at Sarasota, Fla.-based Cumberland Advisors, which manages about $2.2 billion in assets, said he was surprised by what looked like a “shift away from the Fed’s previous easing policy.”

“The markets are starting to digest what that really means,” he said.

Bond prices and gold extended declines on Thursday.

The yield on the 10-year Treasury note was at 2.782% early Thursday, after jumping 0.09 percentage points to 2.770% late Wednesday. Yields rise as bond prices fall. Gold futures lost 1.5% to $1,321.70 a troy ounce.Kent Engelke, chief economic strategist at Capitol Securities Management, which oversees more than $4 billion, said investors are likely to resume “profit-taking” in stocks Thursday after strong gains earlier in the week.

He said worries about rates may have tilted sentiment to the negative side in the short term. “The odds favor a decline, rather than a further rise from current levels,” Mr. Engelke said.

On the economic front, initial claims for jobless benefits in the latest week rose slightly to 320,000 from 315,000 the week before, in line with expectations.

After the open, existing-home sales for February, due at 10 a.m., are seen slipping 0.4% on the month to a seasonally adjusted annualized rate of 4.6 million. At the same time, the Philadelphia Federal Reserve’s March index of manufacturing activity is forecast to turn up to +4.3 from -6.3 in February, while the Conference Board’s leading economic index for February is expected to increase 0.3%.Crude-oil futures lost 0.6% to $98.54 a barrel. The dollar edged higher against the euro but lost some ground against the yen.

The Stoxx Europe 600 shed 0.7%. Germany’s DAX 30 index dropped 0.7%, France’s CAC 40 fell 0.8% and the U.K.’s FTSE 100 declined 1.1%.

Meanwhile, the European Union will meet for a two-day summit in Brussels later Thursday to discuss whether to take additional action against Russia on the back of the conflict with Ukraine.

Asian markets were also broadly lower on Fed concerns, with China’s Shanghai Composite shedding 1.4% to a two-month low and Japan’s Nikkei Stock Average falling 1.7%.

Among early stock movers, Lennar Corp. rose 2% in premarket trading after the home builder reported fiscal first-quarter earnings and revenue that exceeded analyst estimates as deliveries and selling prices improved.

U.S.-listed shares of GlaxoSmithKline PLC fell 2% after the U.K. drug maker said its MAGE-A3 cancer vaccine failed in a second late-stage study.

– WALLSTREET JOURNAL

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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.

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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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