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U.S. Stocks Open Higher

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NEW YORK – The Dow Jones Industrial Average added 10 points, or 0.1%, to 15383 shortly after the opening bell. On Monday, the Dow tumbled 326 points, or 2.1%, the biggest one-day selloff in more than seven months on growing concerns over a weakening U.S. economyThe S&P 500 index added six points, or 0.3%, to 1748, with health-care and telecommunications shares leading eight of 10 sector groups higher. The Nasdaq Composite advanced 17 points, or 0.4%, to 4014.

Emerging-market currencies rose against the dollar on Tuesday, recovering modestly from their sharp selloff of the past two weeks. The South African rand and Turkish lira, two of the hardest-hit currencies in recent weeks, led the rebound.

Despite some stabilization in emerging-market currencies and stocks, some investors view the strength as a temporary reprieve, with the global selling of stocks likely to resume in the near term.

“Suffice to say investors should steer clear of risk assets over the short term as the turmoil does not look like it will be over anytime soon,” said Mitul Kotecha, an analyst at Crédit Agricole. ACA.FR +2.33%

Richmond Federal Reserve Bank President Jeffrey Lacker did little to calm investors by saying early Tuesday the Fed will likely continue reducing its bond purchases in the coming months because there has been “substantial improvement” in labor market indicators since the program started in late 2012. He doesn’t have a vote this year on the policy-making open-market committee but said on Tuesday that he expects “to see further reductions in the pace of purchases at upcoming meetings.”

Robert Pavlik, chief market strategist at Banyan Partners, said there could be an “intracorrection bounce” after all the recent selling, but “I wouldn’t let that fool me,” as he believes there is “some more downside left” for stocks.

In emerging economies, the Indian rupee and Hungarian forint joined the the Turkish lira and South African rand in rising against the dollar. And the iShares MSCI Emerging Markets exchange traded fund rose.

Investments seen as havens, such as Treasurys and gold, eased slightly as stock bounced. The yield on the 10-year Treasury note inched up to 2.621% from a near three-month low of 2.585% late Monday. Treasury yields rise as prices fall. Gold futures declined 0.7% to $1,251.70 an ounce, after running up 1.6% on Monday.

Meanwhile, crude-oil futures added 1.2% to $97.54 a barrel, and the dollar gained some ground against the euro and the yen.

The economic calendar is light. Factory orders for December, due out at 10 a.m. EST, are expected to show growth of 1.8% on the month. Investors remain focused on jobs data out later this week, as well as the European Central Bank’s policy statement on Thursday.

In Europe, the Stoxx Europe 600 lost 0.1%, after closing at 1½-month low on Monday. The index pared some losses after the producer-price index for the euro zone rose in December for the first time in three months, slightly easing deflation fears.

The DAX 30 index shed 0.5% and the U.K.’s FTSE 100 lost 0.2%, while France’s CAC 40 gained 0.3%.

Japanese stocks tumbled overnight to follow steep declines in the U.S. Monday. Japan’s Nikkei Stock Average dropped 4.2%, rattled by disappointing data out of the U.S., after sliding 2% on Monday. That left the Nikkei down 14% on the year, the worst performance among major global markets. Hong Kong’s Hang Seng Index slumped 2.9%.

In corporate news, Microsoft MSFT +0.75% rose after the software company named company veteran Satya Nadella as its next chief executive.

Yum Brands YUM +9.13% rallied after the parent company of KFC and Taco Bell reported fourth-quarter adjusted earnings that exceeded expectations and affirmed previous 2014 projections.

Michael Kors KORS +20.56% soared after the company reported fiscal third-quarter earnings and revenue that blew past estimates, boosted by strong same-store sales growth in Europe and the U.S.

Take-Two Interactive Software TTWO -12.33% slid after the maker of the Grand Theft Auto game franchise provided a downbeat outlook for the current quarter, although fiscal third-quarter earnings and revenue exceeded estimates.

ATMI ATMI +25.36% surged after the company agreed to be acquired by fellow semiconductor services company Entegris for about $850 million. Entegris also gained.

– WALLSTREET JOURNAL

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Popoola Preaches Pan-African Market At Ethiopian Securities Exchange Launch

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Popoola Commends Access Holdings on Nigeria’s Growth Story

 

The need for stronger regional collaboration, government-private sector synergy, and innovative market solutions to unlock Africa’s economic potential has been brought to the fore.

Group CEO of the Nigerian Exchange Group Plc (NGX Group), Temi Popoola, shed light on the transformative potential of Africa’s capital markets at the launch of the Ethiopian Securities Exchange (ESX).

The NGX Group’s strategic investment in ESX underscores its leadership in advancing Africa’s capital market infrastructure. “The launch of ESX represents a pivotal moment for Ethiopia and the broader African financial landscape,” Popoola stated. “ESX will serve as a crucial mechanism for capital formation and market liquidity, driving sustainable economic growth.”

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Expounding on NGX Group’s investment rationale, Popoola highlighted Ethiopia’s immense market potential and the shared vision of fostering economic growth through innovation. “Our partnership transcends traditional investment parameters,” he explained. “It is about ensuring that ESX evolves into a key player in Africa’s financial ecosystem, enabling cross-border investments and setting benchmarks for market development.”

Popoola also drew parallels with global success stories like India, which has leveraged its capital markets to achieve significant economic transformation. He emphasized the importance of responsible market opening to attract local and continental capital. “By following this path, Ethiopia can become a financial hub in Africa,” he remarked.

Prime Minister Abiy Ahmed lauded the launch of ESX as a transformative milestone in the country’s journey toward economic modernization. “Today, we have officially rung the bell to launch the Ethiopian Securities Exchange, our nation’s first stock exchange,” the Prime Minister announced on X. “This is a call to global investors: Ethiopia offers immense potential, a fast-growing economy, and a clear trajectory toward shared prosperity.”

CEO of the Ethiopian Securities Exchange, Tilahun Esmael Kassahun, expressed confidence in the partnership with NGX Group. “We are pleased to welcome NGX Group as a strategic partner, building upon the existing support we continue to receive from them,” he said. Kassahun also emphasized the value of NGX Group’s expertise in shaping ESX’s growth and success.

Drawing from NGX Group’s six decades of experience, Popoola shared insights on diversifying financial instruments and expanding access to investment opportunities. “With the right mix of innovation, policy support, and regional collaboration, Ethiopia’s capital market can play a transformative role in driving economic development and establish itself as a leader in Africa’s financial ecosystem,” he concluded.

With the ESX poised to redefine Ethiopia’s financial landscape, NGX Group’s involvement highlights the critical role of partnerships and shared expertise in advancing Africa’s economic narrative.

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Audit Report Exposes ₦514bn Financial Infractions In NNPCL

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Nigerian National Petroleum Corporation Limited, NNPCL,

The Office of the Auditor-General of the Federation has uncovered financial irregularities amounting to ₦514 billion in the 2021 operations of the Nigerian National Petroleum Company Limited (NNPC Ltd).

The revelations were contained in a comprehensive audit report highlighting non-compliance and internal control weaknesses within Ministries, Departments, and Agencies (MDAs) during the 2021 financial year.

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Breakdown of Infractions

The audit detailed four major financial discrepancies within NNPCL:

“Irregular Deductions: A total of ₦343.64 billion was deducted from domestic crude oil sales at source without proper documentation.

“Sinking Fund Deposits: ₦83.66 billion, categorized as miscellaneous income, was retained in a sinking fund account.

“Unauthorised Refinery Deductions: ₦82.95 billion was deducted from federation revenue purportedly for refinery rehabilitation.

“Unsubstantiated Payments: ₦3.75 billion was flagged for transactions related to petrol sales that lacked proper verification.

The Auditor-General’s report stated that these financial activities violated the 1999 Constitution and the Financial Regulations Act of 2009, underscoring significant lapses in compliance with statutory guidelines.

According to the report, NNPCL generated ₦484.73 billion from domestic crude oil sales in March and May 2021.

However, ₦343.64 billion was deducted for various purposes, including “Value Shortfall,” “Strategic Stock Holding Cost,” and “Pipeline Maintenance.”

The deductions were made unilaterally by NNPCL without adequate documentation or justification.

Additionally, the report flagged ₦50 billion of the net payable amount for May 2021 as unaccounted for, creating a significant gap in the federation’s revenue.

“Audit observed from the review of NNPC SAP payment record for March and May 2021 payments that the sum of ₦484.73bn was the gross amount generated for the sale of domestic crude for the months of March and May 2021.

“The sum of ₦343.64bn from the gross amount was unilaterally deducted from the gross domestic crude sales as NNPC Value shortfall, Strategic Stock Holding Cost, Crude Oil and Products Pipeline Losses, as well as the pipelines maintenance and management costs.

“The details of each of the cost components deducted were not provided for audit review. Hence, the reasons for the deductions could not be justified by the management.”

On the unremitted ₦50 billion from May 2021, the report noted: “In the month of May, the net payable that could have been remitted ought to have been ₦127.075bn, but only the sum of ₦77.075bn was remitted, leaving an unremitted balance of N50bn to the Federation Account, which has remained unaccounted for.”

The report attributed these anomalies to weaknesses in NNPCL’s internal control systems, warning of the risks they pose to public funds.

It read, “The above anomalies could be attributed to weaknesses in the internal control system at NNPC, now NNPC Ltd. This is a potential loss of Federation revenue, diversion of public funds, or misapplication or misappropriation of funds.”

 

 

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Opayemi Salutes Sanwo-Olu Over Successful Lagos Shopping Festival

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The success of the maiden edition of the Lagos Shopping Festival (LSF), Africa’s first 72-hour non-stop commerce and entertainment event has been credited to the Governor of Lagos State, Babajide Sanwo-Olu.

This is the view of Managing Director/Chief Strategist of Chain Reactions Africa Ltd, Israel Jaiye Opayemi, one of the main organisers of the event.

According to Opayemi, though Chain Reactions Africa conceptualised the event, the festival could be rightly described as the Governor’s baby and owes its success to his leadership. “Firstly, the Lagos Shopping Festival could not have come to fruition if the Governor did not buy into our audacious plan when we first presented the idea to him during the Covid-19 pandemic in 2020. Secondly, it was the Governor’s exemplary leadership of the project as its Chief Marketing Officer which attracted the buy-in of key sponsors like Zenith Bank, Tolaram Group, First Bank Plc, and Guinness Nigeria Plc,” Opayemi revealed.

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While the duo of Zenith Bank and First Bank provided their bank on wheel platforms for buyers at the Lagos Shopping Festival, they also supported the Vendors with special Point of Sale Machines with which to process payments from buyers. The banks were also seen marketing their diverse banking products to guests within the shopping arena.

For Tolaram, it was a time to support the citizens and give back to society. Guests at the Lagos Shopping Festival were freely given some of the products of the group such as PowerOil, Indomie and Kellogg’s packaged into goodie bags and given out to prospective buyers at the shopping arena. The Children’s Arena was however activated by Indomie with the children entertained by Santa Claus within a well-equipped arena manned by the Indomie Brands team and the Lagos State Safety Marshalls. The children were daily treated to free Indomie meals daily and given various gifts to go home with.

On its part, Guinness Nigeria came through as the real life of the Nigerian party by organizing product sampling activation for the teeming guests at the festival using brands such as Singleton, Johnnie Walker, Ciroc, Don Royale and Captain Morgan to deliver pleasant experiences to guests aside from Guinness and Malta Guinness.

While unveiling the identity of the festival last month, Governor Babajide Sanwo-Olu had thanked the management of Zenith Bank Plc, Tolaram Africa Group, Guinness Nigeria Plc and First Bank of Nigeria for supporting the idea of a Lagos Shopping Festival, describing it as a value addition on the state’s tourism calendar and the overall efforts to grow the State’s GDP. The Governor further said, “I must specially acknowledge your pioneering sponsorship role. It is easy for a corporate sponsor to jump on the sponsorship band wagon of an already established festival and fund it. But you are supporting the maiden edition of this Lagos Shopping Festival with us. The competition is watching you now. Do not build this brand with us and yield the space for the competition to take over. I do hope you would all commit long term to this brilliant initiative.”

On his part, Girish Sharma, CEO Guinness Nigeria Plc, expressed enthusiasm for the initiative. “Lagos is the commercial heartbeat of Nigeria and Africa’s entertainment capital, and the Lagos Shopping Festival captures its essence. We see opportunities in this initiative because it is a creative fusion of commerce and entertainment. This partnership reflects our dedication to fostering economic opportunities and support the nation’s vibrant entertainment industry.”

A first-of-its-kind, the festival was a convergence of commerce and entertainment, bringing together buyers and sellers in the MSME ecosystem, and hordes of fun-seekers who were entertained with thrilling performances by A-list entertainers, including Adekunle Gold, Wande Coal, Teni, Young Jonn, BNXN, Ayo Maff, SB Live and EmmaOMG. The list also included some of Nigeria’s most sought after DJs such as DJ Neptune, DJ YK Mule, DJ Baddo while Gbenga Adeyinka the 1st and Larry J dished out rib-cracking comedy performances.

Held from 23rd to 25th Day of December 2024, at the iconic Mobolaji Johnson Arena, Onikan Stadium, Lagos, the Lagos Shopping Festival saw thousands of fans throng the main venue and select Lagos malls during the three-day period to bag the latest bargains from local and top global brands.

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