Economy
Stock Market: New Pricing Rule Favours Domestic Investors—Experts
By Dipo Olowookere
The recently introduced pricing methodology by the Nigerian Stock Exchange (NSE) has been described by experts as a tool that has favoured domestic investors by increased their participation in the stock market.
According to the Head of Banking and Finance Department at the Nasarawa State University Keffi, Dr Uche Uwaleke, has given local investors the opportunity to be more involved in the capital market because they can now pull volume with penny stocks trading below the former 50 kobo per share threshold.
“Unlike foreign investors who show more interest in high-cap stocks, a good number of domestic investors take positions in penny stocks given their affordability,” Mr Uwaleke told the News Agency of Nigeria (NAN) n Lagos.
The university don was reacting to the price depreciation posted by many penny stocks last month which had Consolidated Hallmark emerging the worst performing stock in percentage terms.
The stock opened trading in February at 50k, but lost 48 percent to close for the month at 26k per share, due to exchange new pricing method.
Mr Uwaleke said the new pricing methodology led to losses posted by most penny stocks.
“It is the new pricing methodology that has injected liquidity into those penny stocks which allowed their prices to fall below 50k,” he said.
The lecturer further said the new method was aimed at improving liquidity, narrowing spreads and ensuring that all price-improving transactions had impact.
He said that the new rule would effectively remove the previous rule which placed minimum allowable price for any stock to trade at its nominal value, irrespective of the market forces.
According to him, it specifies that stock prices will be determined by market forces of demand and supply, as prices can fall below the initial price.
On his part, Mr Ambrose Omordion, the Chief Operating Officer of InvestData Ltd, also attributed the development to the new pricing rule.
Omordion added that the losses posted by some second tier banking stocks were due to profit-taking following rally posted at the beginning of the year.
Data obtained from the NSE showed that Unic Diversified Holdings, another penny stock, came second last month after dropping by 47.83 percent to close at 24k per share against opening price of 46k.
Courtville Business Solutions dipped 46 percent to close at 27k against 50k, while Multiverse Resources lost 37.5 percent to close the month at 30k per share compared with the opening price of 48k.
Other top losers were Skye Bank, which dipped by 34.01 percent to close at 97k against N1.47k in January, while Wema Bank lost 32.65 percent, having closed at 99k in contrast with N1.47k.
Diamond Bank dropped 26.10 percent to close at N2.35k against N3.18k, while Unitykap lost 26 percent to close at 37k against the opening price of 50k.
Lasaco Insurance declined by 21.43 percent to close at 33k against 43k in January, while Royal Exchange lost 21.43 percent to close at 33k per share against 42k opening price.
Conversely, Linkage Assurance was the best performing stock in percentage terms, appreciating by 24.64 percent to close at 86k per share against the opening price of 69k.
Unity Bank trailed with a growth of 17.11 percent to close at N1.78k in contrast with N1.52k in January, while NEM Insurance rose by 16.02 percent to close at N2.10k per share against N1.81k.
Other top gainers were Beta Glass, 15.64 percent; Unilever,15.06 percent; CCNN, 11.27 percent; Transnation Express, 11.11 percent; Prestige Assurance, 10.87 percent; GSK, 10.53 percent; and AIICO Insurance, 10.29 percent.
During the month, the NSE All-Share Index lost 1,013.11 points or 2.28 percent to close at 43,330.54 against 44,343.65 achieved in January.
Also, the market capitalisation which opened at N15.895 trillion shed N146 billion or 2.18 percent to close the month at N15.549 trillion.
The volume of shares traded dipped by 44.96 percent as investors bought and sold 11.95 billion shares worth N106. 08 billion achieved in 112,255 deals.
This was in contrast with January turnover of 21.71 billion shares valued at N197.22 billion traded in 168.649 deals.
By Adedapo Adesanya
Oil was up by nearly 3 per cent on Tuesday as persistent worries about supply constraints from the closed Strait of Hormuz continued, with Brent futures for June rising by $3.03 or 2.8 per cent to $111.26 a barrel, and the US West Texas Intermediate (WTI) crude futures growing by $3.56 or 3.7 per cent to $99.93 a barrel.
An earlier round of negotiations between the United States and Iran collapsed last week after face-to-face talks failed.
Ship-tracking data showed significant disruptions in the region, with six Iranian oil tankers forced to turn back due to the US blockade, but some traffic is still moving.
Prices trimmed some of the advances after the United Arab Emirates (UAE), the fourth-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), said on Tuesday it would exit the group on this Friday, May 1, 2026.
This dealt a blow to the oil-exporting group and its de facto leader, Saudi Arabia.
The UAE could quickly add between 1 million and 1.5 million barrels per day of output. However, with the Strait of Hormuz effectively closed, analysts said that there’s nowhere for that supply to go.
The UAE joined OPEC in 1967, but tension with Saudi Arabia over production quotas has been building for years.
Under the OPEC+ deal, the country has been held to roughly 3 million barrels per day while sitting on capacity above 4 million. It has been pushing toward 5 million barrels per day by 2027, and that target is hard to achieve with quotas built around someone else’s view of the market.
The war in Yemen broke whatever was left of diplomatic patience.
President Donald Trump said he was unhappy with the latest Iranian proposal to end the war. The proposal would avoid addressing the nuclear programme until hostilities cease and Gulf shipping disputes are resolved.
The Idemitsu Maru, a Panama-flagged tanker carrying 2 million barrels of Saudi oil, and an LNG tanker managed by the Abu Dhabi National Oil Company (ADNOC) crossed the Strait on Tuesday, shipping data showed.
Vortexa data showed that the amount of crude oil held around the world on tankers that have been stationary for at least seven days rose to 153.11 million barrels as of April 24.
The American Petroleum Institute (API) estimated that crude oil inventories in the United States fell by 1.79 million barrels in the week ending April 24. The official data from the US Energy Information Administration (EIA) will be released later on Wednesday.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited returned to winning ways on Tuesday after it closed higher by 2.30 per cent amid cautious trading.
Yesterday, investor sentiment at the Nigerian stock market was weak after finishing with 37 price gainers and 40 price losers, indicating a negative market breadth index.
It was observed that the industrial goods sector rose by 4.86 per cent, the energy index appreciated by 4.66 per cent, and the consumer goods segment soared by 2.74 per cent. They offset the 1.38 per cent loss recorded by the banking counter and the 0.20 per cent decline printed by the insurance sector.
At the close of business, the All-Share Index (ASI) was up by 5,137.90 points to 228,740.19 points from 223,602.29 points, and the market capitalisation went up by N3.308 trillion to N147.278 trillion from N143.970 trillion.
The trio of FTN Cocoa, Industrial and Medical Gases, and Lafarge Africa gained 10.00 per cent each to sell for N5.50, N39.60, and N324.50, respectively, while Austin Laz grew by 9.71 per cent to N3.73, and Aradel Holdings jumped 9.52 per cent to N1,840.00.
On the flip side, UBA lost 10.00 per cent trade at N44.55, Trans-Nationwide Express slipped by 9.99 per cent to N6.40, NASCON crashed by 9.18 per cent to N187.90, Jaiz Bank depreciated by 8.93 per cent to N8.01, and Berger Paints crumbled by 8.66 per cent to N68.00.
Yesterday, market participants traded 908.0 million equities valued at N68.2 billion in 72,886 deals compared with the 678.2 million equities worth N44.1 billion transacted in 82,838 deals on Monday, showing a drop in the number of deals by 12.01 per cent, and a spike in the trading volume and value by 33.88 per cent and 54.65 per cent, respectively.
By Adedapo Adesanya
Nigeria’s oil production recorded a five-year high of 1.71 million barrels per day, marking a significant rebound for the country’s upstream sector amid renewed efforts to restore output and improve operational stability.
The latest figure, released by Nigerian National Petroleum Company (NNPC) Limited, covers the period from April 2025 to April 2026 and underscores a steady recovery in crude production after years of disruptions caused by theft, pipeline vandalism and underinvestment.
According to the chief executive of the national oil company, Mr Bayo Ojulari, the performance reflects measurable progress across the company’s upstream, gas and downstream operations, with production gains supported by improved asset management and stronger field performance.
Within its exploration and production business, NNPC recorded a peak daily output of 365,000 barrels in December 2025, the highest level ever achieved by its upstream subsidiary. The company also advanced key contractual reforms, including revised production-sharing terms for deepwater assets aimed at unlocking additional gas reserves.
Nigeria’s gas ambitions are also gaining traction. Gas supply rose to 7.5 billion standard cubic feet per day in 2025, driven by major infrastructure milestones such as the River Niger crossing on the Ajaokuta-Kaduna-Kano pipeline and the commissioning of the Assa North-Ohaji South gas processing plant.
These investments are beginning to strengthen domestic gas utilisation. New supply agreements with major industrial consumers, including Dangote Refinery, Dangote Fertiliser and Dangote Cement, are expected to deepen gas penetration across manufacturing and power generation.
On the downstream front, NNPC has continued crude supply to Dangote Refinery under the crude-for-naira arrangement, a policy designed to reduce foreign exchange demand, support local refining and improve fuel market stability. The company also reaffirmed its 7.25 per cent equity stake in the refinery as part of its long-term energy security strategy.
Financially, the national oil company said it has resumed full monthly remittances to the Federation Account since July 2025. It has also reinstated regular performance reporting and held its first earnings call, moves widely seen as part of a broader push towards greater transparency and corporate accountability.
Despite the progress, challenges remain. Crude theft, pipeline outages and infrastructure bottlenecks continue to threaten production stability. Sustaining this recovery will depend on stronger security, reliable infrastructure and policy consistency as Nigeria seeks to maximise the benefits of rising domestic refining capacity.
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