By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange succumbed to selling pressure on Tuesday, May 12, sinking by 1.1 per cent.

This brought down the NASD Unlisted Security Index (NSI) by 46.05 points to 4,156.52 points from 4,202.57 points, and battered the market capitalisation by N27.55 billion to N2.486 trillion from N2.514 trillion.

The loss suffered by the NASD OTC exchange was influenced by three securities, led by FrieslandCampina Wamco Plc, which lost N12.40 to sell for N133.60 per share compared with Monday’s N146.00 per share. Food Concepts Plc depreciated by 9 Kobo to N2.50 per unit from N2.59 per unit, and Industrial and General Insurance (IGI) Plc declined by 6 Kobo to 60 Kobo per share from 66 Kobo per share.

Yesterday, the volume of transactions surged by 1,041.6 per cent to 2.7 million units from 236,921 units, the value of trades jumped by 294.6 per cent to N65.2 million from N16.5 million, and the number of deals climbed 55 per cent to 31 deals from 20 deals.

Great Nigeria Insurance (GNI) Plc closed the session as the most traded stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion. The second position was occupied by Central Securities and Clearing System (CSCS) Plc with 60.5 million units exchanged for N4.1 billion, and Okitipupa Plc transacted 27.8 million units for N1.9 billion to claim the third spot.

The most active stock by volume on a year-to-date basis was GNI Plc with 3.4 billion units sold for N8.4 billion, followed by Resourcery Plc with 1.1 billion units traded for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units valued at N1.2 billion.

By Adedapo Adesanya

For another trading session, the Naira further depreciated against the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, May 12, by N2.46 or 0.18 per cent to N1,375.62/$1 from the previous day’s N1,373.16/$1.

It was not a different situation for the local currency in the same market window against the Pound Sterling yesterday, as it lost N3.35 to trade at N1,874.42/£1 versus Monday’s value of N1,871.07/£1, and declined against the Euro by N2.90 to settle at N1,621.31/€1 versus N1,618.41/€1.

However, in the parallel market, the Naira remained unchanged against the US Dollar during the session at N1,385/$1, and maintained stability at the GTBank forex counter at N1,375/$1.

The poor performance of the Naira was driven by dampened foreign portfolio investment in­flows into Nigeria’s FX market, resulting in weaker supply con­ditions during the month.

Nevertheless, the currency’s per­formance remains relatively stable compared with previous periods of FX shortages that of­ten resulted in sharp currency depreciation.

Also, escalating geopolitical ten­sions in the Middle East have disrupted global supply chains and altered international trade flows, prompting many import­ers to delay procurement orders and reduce transaction volumes.

The rising uncertainty sur­rounding shipping routes, logis­tics costs, and delivery timelines has made importers more cau­tious about committing to new orders, which is not putting much pressure on the local currency.

Meanwhile, the cryptocurrency market was mostly down after the April US Consumer Price Index came in at 3.8 per cent year-over-year, hotter than economists had estimated, with petrol prices doing most of the lift since the Iran war began.

Cardano (ADA) weakened by 1.7  per cent to $0.2730, Solana (SOL) lost 1.4 per cent to sell at $95.23, Ripple (XRP) shrank by 0.6 per cent to $1.45, Ethereum (ETH) went down by 0.5 per cent to $2,297.25, and Bitcoin (BTC) slipped by 0.2 per cent to $80,986.71.

On the flip side, Binance Coin (BNB) jumped 2.4 per cent to $678.01, Dogecoin (DOGE) gained 1.5 per cent to close at $0.1120, and TRON (TRX) appreciated by 0.1 per cent to $0.3490, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.

By Adedapo Adesanya

The major crude oil grades soared by over 3 per cent on Tuesday as ​differences between the United States and Iran over a proposal to end the war in the Middle East raised fresh concerns.

Brent crude futures gained $3.56 or 3.42 per cent to trade at $107.77 per barrel, and the US West Texas Intermediate (WTI) crude futures increased by $4.11 or 4.19 per cent to $102.18 a barrel.

The fact that the US and Iran cannot come to unifying terms over a proposal to end the war have spurred concerns that supply disruptions could upend the ‌global oil market are likely to be prolonged.

US President Donald Trump said on Monday that ceasefire talks with Iran were on “life support,” pointing to disagreements over Iran’s demands of a cessation of hostilities on all fronts, the removal ​of a US naval blockade, the resumption of Iranian oil sales, and compensation for war damage.

Iran also emphasised its sovereignty over the Strait of ​Hormuz, through which about a fifth of global oil and liquefied natural gas normally flows.

The US Energy Information Administration (EIA) on Tuesday said it now assumes the strait will ​be effectively closed through late May, leading to much larger losses of Middle Eastern oil and gas supplies than its prior forecasts.

The agency had earlier expected the waterway would ​be shut through late April, since it was closed in early March.

It said even after flows resume through the Strait of Hormuz, it will take at least until late 2026 or early 2027 for oil output and trade patterns to return to pre-conflict levels.

The EIA estimates 10.5 million barrels per day of output were lost during April across the Middle East due to the Strait ​closure, limiting exports.

Prolonged loss of Middle Eastern supply is forcing countries around the world to burn through their oil and gas stockpiles. The ​EIA now expects global oil inventories to ​fall about 2.6 million barrels per day this ⁠year, much more than its previous forecast of a 300,000 barrels per day decline.

Already, oil output from the Organisation of the Petroleum Exporting Countries (OPEC) in April fell ​to its lowest level in more than two decades.

The US President is bound to meet his Chinese counterpart, President Xi Jinping, days after the US imposed sanctions on three individuals and nine ​companies for facilitating Iranian oil shipments to China.