Economy
39 Stocks Depreciate NSE Index by 2.48% in Four Trading Days
Dipo Olowookere
A total of 39 stocks trading on the Nigerian Stock Exchange (NSE) caused the All-Share Index (ASI) to depreciate by 2.48 percent to settle at 26,987.45 points in the four trading days last week.
The market opened for only four days in the week as a result of the public holiday declared by the federal government to celebrate the 59th anniversary of Nigeria’s independence from Britain in 1960.
The local stock market was mostly bearish for the week as investors stayed back to watch happenings from both the local and the global scenes, especially with the impeachment threat staring at President Donald Trump of the United States of America (USA) as well as activities on the global oil market, which is giving many investors serious concerns because of the price of the Brent crude, which fell below Nigeria’s benchmark of $60 per barrel in the week.
Shares in the oil and gas sector had a feel of this heat as they went down in the week at the domestic bourse by 2.25 percent.
CBN’s Fine Affects Banking Stocks
On the local scene, investors pondered on the action of the Central Bank of Nigeria (CBN) on 12 financial institutions, six of which are listed on the stock exchange. The dozen of banks were punished by the industry watchdog for failing to loan a certain amount of money in their custody to their customers as directed by the CBN.
In July 2019, the central bank had ordered lenders operating in the country to give 60 percent of their deposits to customers as loan so as to boost the economy.
The apex bank was hoping to use its loan policy to promote lending to the real sector of the economy so as to fast-track its recovery process after it slipped into recession over three year ago.
In the circular issued to the banks in July, the central bank had warned that failure do adhere to the 60 percent loan-to-deposit ratio would attract a sanction, which involves taking certain amount from their deposits to their cash reserves with the apex bank.
After the holiday, the CBN fined the 12 financial institutions the sum of N499.2 billion and this development caused selloffs in the banking space in the week, resulting into a 3.94 percent weekly loss.
Also, on the local scene, the persistent low purchasing power of Nigerians affected stocks in the consumer goods space at the market, leaving its barometer going down by 4.92 percent in the week.
Stock Performance In The Week
From the data harvested by Business Post on the NSE, Fidson Healthcare was the week’s heaviest loser as its stocks went down by 18.89 percent to close at N3.65 per share, while Ecobank followed with a loss of 14.61 percent to finish at N7.60 per unit.
UAC Nigeria fell by 14.38 percent to end at N6.55 per share, Africa Prudential depreciated by 9.97 percent to settle at N3.52 per unit, while Beta Glass declined by 9.96 percent to close at N53.80 per share.
At the other end, Continental Reinsurance shares went up by 20.11 percent to finish at N2.27 per unit, while Law Union and Rock Insurance followed with 12.82 percent appreciation to close at 44 kobo per unit.
Niger Insurance gained 10.00 percent to finish at 22 kobo per share, CAP improved by 9.89 percent to close at N25.55 per unit, while Caverton appreciated by 8.33 percent to settle at N2.60 per share.
In all, a total of 15 equities appreciated in price during the week, lower than 22 equities in the previous week, while 39 equities depreciated in price, lower than 42 equities in the previous week, with 112 equities remaining unchanged, higher than 102 equities recorded in the preceding week.
During the week, the market capitalisation also depreciated by 2.48 percent like the index to close and N13.137 trillion. Similarly, all other indices finished lower with the exception of NSE insurance and NSE industrial goods indices, which appreciated by 5.71 percent and 0.14 percent respectively, while the NSE ASeM index closed flat.
Activity Level In The Week
For the market turnover, a total of 660.7 million shares worth N9.2 billion were traded by investors in the week in 12,032 deals against the total of 1.1 billion shares valued at N16.7 billion that exchanged hands a week earlier in 14,717 deals.
A breakdown of the transactions showed that the financial services industry (measured by volume) led the activity chart with 458.2 million shares valued at N5.9 billion traded in 6,720 deals, contributing 69.35 percent and 64.27 percent to the total equity turnover volume and value respectively.
The conglomerates industry followed with 55.8 million shares worth N124.5 million in 545 deals, while the third place was occupied by construction/real estate sector with a turnover of 54.3 million shares worth N62.6 million in 135 deals.
Trading in GTBank Access Bank and FBN Holdings measured by volume accounted for 280.7 million shares worth N4.9 billion in 2,985 deals, contributing 42.49 percent and 53.43 percent to the total equity turnover volume and value respectively.
Other Transactions In The Week
Away from the stock market, investors traded a total of 3,015 units of Extended Traded Funds (ETFs) valued at N701,234.17 in the week in 16 deals compared with a total of 16,253 units valued at N1.103 million transacted the previous week in 13 deals.
For the bond market, a total of 4,250 units of Federal Government Bonds valued at N4.305 million were traded in the week in 6 deals compared with a total of 36,581 units valued at N37.504 million transacted a week earlier in 16 deals.
What to Expect This Week
Business Post returns that as investors prepare for the new week, they would be anticipating the return of bulls to the market, though happenings around don’t indicate this would occur.
At the moment, attention is focused on the decision of the United States Fed on whether it would lower interest rate, which is very much likely to happen. In addition, there would be huge expectations on the proposed talks between Washington DC and Beijing on the trade spat.
Further attention would be on oil, which rose slightly on Friday after enduring series of falls last week. Investors would hope to have things better in the week with news that Saudi’s Aramco has recovered from the attacks on its oil facilities few weeks ago by Yemen’s Iran-backed Houthi rebels.
On the local scene, there are more to worry about especially with the steady decline in the nation’s foreign reserves, which have fallen below $42 billion. This development is expected to put pressure on the Naira at the foreign exchange (forex) market this week.
By Modupe Gbadeyanka
The Nigeria Customs Service (NCS) has approved the activation of the Lagos Free Zone Green Channel to enable the seamless and controlled movement of Free Zone cargo directly from the Lekki Deep Sea Port to the Lagos Free Zone (LFZ).
This development makes LFZ the first and only zone in the country to operate a sanctioned green channel, reflecting globally recognised port-to-free-zone logistics and customs integration models successfully implemented in leading trade hubs in the Middle East and Asia.
With this, businesses in the Lagos Free Zone can now scale their industrial output with total peace of mind, as every consignment is protected by an unbroken chain of 24/7 CCTV surveillance, telemetry, and tamper-evident digital logs that ensure absolute cargo integrity.
This integration not only secures the supply chain but also builds unrivalled investor confidence by establishing a transparent, high-compliance trade environment monitored directly by the customs.
For manufacturers and distributors, the outcome is a predictable, ultra-fast logistics flow that solidifies LFZ as the most efficient regional hub for Nigerian and West African operations.
“This approval is a testament to our commitment to trade modernisation. The Lagos Free Zone Green Channel will enhance Customs visibility while significantly improving investor confidence in Nigeria’s Special Economic Zones,” the Comptroller-General of Customs, Mr Bashir Adeniyi,” stated.
On her part, the chief executive of LFZ, Mrs Adesuwa Ladoja, said, “The activation of the Lagos Free Zone Green Channel is the latest testament to our customer-centricity and our commitment to continually deliver enhanced ease of doing business for our tenants.
“The Green Channel solidifies the advantages of Lekki Deep Sea Port being physically and digitally integrated into our zone. We have effectively removed the ‘last mile’ uncertainty that has historically challenged Nigerian logistics.
“Our tenants no longer need to navigate the complexities of traditional port exits; instead, they benefit from a high-velocity, customs-integrated corridor that moves cargo with precision and speed.
“This is a game-changer for manufacturing and regional distribution, reinforcing Lagos Free Zone as the premier gateway for those looking to dominate the West African market.”
By Adedapo Adesanya
Dangote Refinery has reached its full capacity of 650,000 barrels per day following the successful optimisation of critical processing units, marking a turning point for Africa’s largest refinery, located in Lagos.
The $20 billion facility is now operating at full capacity, a world-record milestone for a single-train refinery.
This achievement comes after the completion of an intensive performance testing on the refinery’s Crude Distillation Unit and Motor Spirit production block.
According to the chief executive of Dangote Refinery, Mr David Bird, the refinery is now positioned to supply up to 75 million litres of petrol daily to the domestic market, a dramatic increase from the 45 million – 50 million litres delivered during the recent festive period.
The development can reshape Nigeria’s energy landscape and reduce the country’s longstanding dependence on imported refined products.
“Our teams have demonstrated exceptional precision and expertise in stabilising both the CDU and MS Block,” Mr Bird said. “This milestone underscores the strength, reliability, and engineering quality that define our operations.”
The refinery has completed a 72-hour series of performance test runs in collaboration with technology licensor UOP, a Honeywell company, to validate operational efficiency and confirm that all critical parameters meet international standards.
The tests covered the naphtha hydrotreater, isomerisation unit, and reformer unit, which together form the backbone of the facility’s gasoline production capability.
The milestone marks another achievement for the businessman and majority stake owner at the facility in his ambition to transform Nigeria from Africa’s largest crude oil producer into a refining powerhouse.
Since the commencement of the facility in 2016, it has faced numerous setbacks, including pandemic-related delays, foreign exchange challenges, and technical complications.
It was finally commissioned in May 2023 to help wean Nigeria off imported petroleum products, due to the chronic underperformance of its state-owned refineries.
Despite being Africa’s largest crude producer, the country has not been able to self-produce, even with four state-owned refineries with a combined capacity of 445,000 barrels per day. This has led to decades of high dependency on importation.
The Dangote refinery’s emergence at full capacity has the potential to eliminate this import dependence while positioning Nigeria as a net exporter to West African markets.
Yet, the refinery faces difficulty securing adequate crude oil supplies from Nigerian producers, forcing it to import feedstock from the US, Brazil, Angola, and other countries.
Mr Bird also confirmed that Phase 2 performance test runs for the remaining processing units are scheduled to commence next week, suggesting further capacity optimisation ahead.
The official emphasised the refinery’s commitment to “enhancing Nigeria’s energy security while supporting industrial development, job creation, and economic diversification.”
By Adedapo Adesanya
For the third consecutive session, the NASD Over-the-Counter (OTC) Securities Exchange closed in positive territory after it gained 0.74 per cent on Wednesday, February 11, amid a flat market breadth index.
The bourse recorded five appreciating securities as well as five depreciating securities during the midweek session.
On the gainers’ side of the market was Central Securities Clearing System (CSCS), which added N5.80 to sell at N70.53 per share versus Tuesday’s closing price of N64.73 per share.
Further, Air Liquide Plc appreciated by N2.02 to N22.34 per unit from N20.32 per unit, Afriland Properties Plc improved by 25 Kobo to N16.20 per share from N15.95 per share, First Trust Mortgage Bank Plc expanded by 6 Kobo to 75 Kobo per unit from 69 Kobo per unit, and Food Concepts Plc grew by 2 Kobo to N2.91 per share from N2.89 per share.
On the flip side, Okitipupa Plc lost N17.00 to sell at N220.00 per unit compared with the previous day’s N237.00 per unit, NASD Plc dropped N5.14 to trade at N46.26 per share versus N51.40 per share, Geo-Fluids Plc depreciated by 39 Kobo to close at N4.02 per unit versus N4.41 per unit, Acorn Petroleum Plc went down by 6 Kobo to N1.31 per share from N1.37 per share, and Industrial and General Insurance (IGI) Plc slipped by 5 Kobo to 54 Kobo per unit from 59 Kobo per unit.
At the close of trading activities, the market capitalisation increased by N17.05 billion to N2.308 trillion from N2.291 trillion, while the NASD Unlisted Security Index (NSI) advanced by 29.50 points to 3,858.81 points from 3,830.31 points.
Yesterday, the volume of securities jumped 15,181.4 per cent to 1.06 billion units from 6.9 million units, the value of securities surged 10.4 per cent to N465.7 million from N89.1 million, and the number of deals rose by 21.8 per cent to 56 deals from 46 deals.
The most active stock by value on a year-to-date basis was CSCS Plc with 18.2 million units worth N790.9 million, trailed by Resourcery Plc with 1.04 billion units valued at N408.6 million, and Geo-Fluids Plc with 29.2 million units sold for N150.8 million.
As for the most active stock by volume on a year-to-date basis, the position was taken over by Resourcery Plc with a turnover of 1.04 billion units valued at N408.6 million, while Geo-Fluids Plc moved to second place with 29.2 million units exchanged for N150.8 million, and the third place was occupied by Mass Telecom Innovation Plc with 20.1 million units worth N8.1 million.
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