Economy
Stock Market Grows By N282b As Economy Relapses
By Modupe Gbadeyanka
Trading at the Nigerian Stock Exchange on Thursday gained strength a day after the country’s economy went into recession.
The market capitalisation recorded a growth of N282bn at the close of trading on Thursday with a total of 25 stocks appreciating in price, while 13 recording price declines.
In all, the market traded on 229.225 million shares worth N2.117bn in 3,243 deals.
The NSE market capitalisation soared to N9.760tn from N9.478tn, while the NSE All-Share Index also closed at 28,419.92 basis points from 27,599.03 basis points.
The highest index point attained in the course of trading was 28,419.92 basis points, while the lowest and average index points were 27,368.41 and 27,666.28 basis points respectively.
Dangote Cement Plc, CAP Plc, FCMB Group Plc, AIICO Insurance Plc and Wema Bank Plc emerged as the top five gainers.
The shares of Dangote Cement appreciated by N15.11 (8.59 per cent) to close at N191 from N175.89, while those of CAP closed at N31.57 from N30.09, gaining N1.48 (4.92 per cent).
FCMB share price also appreciated by N0.05 (4.90 per cent) to close at N1.07 from N1.02, while AIICO shares soared to N0.66 from N0.63, gaining N0.03 (4.76 per cent).
Wema Bank shares also gained N0.03 (4.55 per cent) to close at N0.69 from N0.66.
Other gainers were Sterling Bank Plc, Fidson Plc, Trans-nationwide Express Plc, NPF Microfinance Bank Plc, Law Union and Rocks Insurance Plc, Fidelity bank Plc, amonmg others.
On the other hand, Caverton Offshore Support Group Plc, Tripple G Plc, Chellaram Plc, May and Baker Nigeria Plc, Cutix Plc, among others emerged as the top five losers.
The NSE had on Wednesday, appreciated by N36bn despite confirmation by the Nigerian Bureau of Statistics that the economy was in recession.
The equity market maintained positive momentum, appreciating by 0.39 per cent.
The NSE market capitalisation rose to N9.478tn from NN9.442tn, while the All-Share Index closed at 27,599.03 basis points from 27,493.12 basis points.
A total of 262.614 million shares valued at N4.881bn exchanged hands in 3,302 deals.
The second quarter 2016 Gross Domestic Product data showed a contraction of 2.06 per cent year-on-year (Q1 2016: -0.36 per cent). July headline inflation spiked to 17.1 per cent year-on-year from 16.5 per cent and unemployment rate jumped to 13.3 per cent from 12.1 per cent.
On the global scene, markets traded mixed as investors reacted to a slew of data from the Eurozone and looked forward to the key August United States non-farm payroll data due Friday.
Having lost in the previous session, the oil and gas and financial services sectors rebounded to lead advances, following gains on Seplat Petroleum Development Company Limited(+10.25 per cent), Oando Plc (0.61 per cent), Guaranty Trust Bank Plc (1.53 per cent), Ecobank Transnational Incorporated Plc (0.35 per cent) and FBN Holdings Plc (1.67 per cent).
The consumer goods and industrial goods sectors continued on an upward trend, albeit marginal, as 7UP Bottling Company Plc (9.38 per cent gains), Honeywell flour Mill Plc (five per cent loss), Dangote Cement Plc (0.22 per cent gain) and Julius Berger Nigeria Plc (9.71 per cent loss) traded mixed.
Market breadth turned negative with 19 advances and 21 declines.
Source: http://punchng.com/stock-market-grows-n282bn-economy-recedes/
By Aduragbemi Omiyale
A minority equity stake in Chappal Energies Mauritius Limited has been acquired by a Nigerian energy firm, Aradel Holdings Plc.
This deal came a few days after Chappal Energies purchased a 53.85 per cent equity stake in Equinor Nigeria Energy Company Limited (ENEC).
Chappal Energies went into the deal with Equinor to take part in the oil and gas lease OML 128, including the unitised 20.21 per cent stake in the Agbami oil field, operated by Chevron.
Since production started in 2008, the Agbami field has produced more than one billion barrels of oil, creating value for Nigerian society and various stakeholders.
As part of the deal, Chappal will assume the operatorship of OML 129, which includes several significant prospects and undeveloped discoveries (Nnwa, Bilah and Sehki).
The Nnwa discovery is part of the giant Nnwa-Doro field, a major gas resource with significant potential to deliver value for Nigeria.
In a separate transaction, on July 17, 2024, Chappal and Total Energies sealed an SPA for the acquisition by Chappal of 10 per cent of the SPDC JV.
The relevant parties to this transaction are working towards closing out this transaction and Ministerial Approval and NNPC consent to accede to the Joint Operating Agreement have been obtained.
“This acquisition is in line with diversifying our asset base, deepening our gas competencies and gaining access to offshore basins using low-risk approaches.
“We recognise the strategic role of gas in Nigeria’s energy future and are happy to expand our equity holding in this critical resource.
“We are committed to the cause of developing the significant value inherent in the assets, which will be extremely beneficial to the country.
“Aradel hopes to bring its proven execution competencies to bear in supporting Chappal’s development of these opportunities,” the chief executive of Aradel Holdings, Mr Adegbite Falade, stated.
By Adedapo Adesanya
Afriland Properties Plc helped the NASD Over-the-Counter (OTC) Securities Exchange record a 0.04 per cent gain on Tuesday, December 10 as the share price of the property investment rose by 34 Kobo to N16.94 per unit from the preceding day’s N16.60 per unit.
As a result of this, the market capitalisation of the bourse went up by N380 million to remain relatively unchanged at N1.056 trillion like the previous trading day.
But the NASD Unlisted Security Index (NSI) closed higher at 3,014.36 points after it recorded an addition of 1.09 points to Monday’s closing value of 3,013.27 points.
The NASD OTC securities exchange recorded a price loser and it was Geo-Fluids Plc, which went down by 2 Kobo to close at N3.93 per share, in contrast to the preceding day’s N3.95 per share.
During the trading session, the volume of securities bought and sold by investors increased by 95.8 per cent to 2.4 million units from the 1.2 million securities traded in the preceding session.
However, the value of shares traded yesterday slumped by 3.7 per cent to N4.9 million from the N5.07 million recorded a day earlier, as the number of deals surged by 27.3 per cent to 14 deals from 11 deals.
Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units sold for N5.3 billion.
By Adedapo Adesanya
The Naira continued to appreciate on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), gaining 0.7 per cent or N10.23 on Tuesday, December 10 to trade at N1,542.27/$1 compared with the preceding day’s N1,552.50/$1.
The Central Bank of Nigeria (CBN)-backed Electronic Foreign Exchange Matching System (EFEMS) platform introduced to tackle speculation and improve transparency in Nigeria’s FX market has been attributed as the source of the Naira’s appreciation.
Speculators holding foreign currencies, particularly the US Dollar, have seen the value of their money drastically drop due to the appreciation of the local currency. This is forcing them to dump greenback into the system and take the domestic currency alternative- a move that has seen available FX increase.
Equally, the domestic currency improved its value against the Pound Sterling in the official market during the trading day by N6.81 to sell for N1,955.12/£1 compared with Monday’s closing price of N1,961.93/£1 and against the Euro, it gained N10.84 to close at N1,613.00/€1, in contrast to the previous day’s rate of N1,623.84/€1.
Data from the FMDQ Securities Exchange showed that the value of forex transactions significantly increased yesterday by $228.85 million or 257.2 per cent to $401.17 million from the preceding session’s $112.32 million.
However, in the parallel market, the Nigerian currency weakened against the US Dollar on Tuesday by N5 to settle at N1,625/$1 compared with the previous day’s value of N1,620/$1.
In the cryptocurrency market, Dogecoin (DOGE) lost 4.8 per cent to sell at $0.39116, Litecoin (LTC) depreciated by 3.3 per cent to trade at $110.25, Binance Coin (BNB) went south by 2.3 per cent to $681.44, Ethereum (ETH) dropped 1.6 per cent to finish at $3,671.08, and Cardano (ADA) slid by 0.5 per cent to $0.8837
Conversely, Ripple (XRP) jumped by 5.4 per cent to $2.23 amid a continued shift for the coin with its parent company seeing the benefits of a crypto-friendly regulatory environment for US-based companies.
XRP is closely related to Ripple Labs, a high-profile payments company targeted by the SEC in 2020 on allegations of selling the token as a security to U.S. investors. Ripple fully cleared a long-drawn court case in 2024.
Further, Solana (SOL) expanded by 0.8 per cent to $219.75, Bitcoin (BTC) grew by 0.4 per cent to $97,446.95, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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