Economy
Brent Jumps to $71 on Supply Disruption from Mexico
By Adedapo Adesanya
The Brent crude was sold at $71.11 per barrel on Tuesday after climbing by $2.44 or 3.55 per cent amidst concerns about global demand started to ease.
It was observed that the rise in the price of the commodity was partly buoyed by a supply disruption in Mexico, which also pushed the price of the United States West Texas Intermediate (WTI) crude oil futures northwards by $2.08 or 3.17 per cent to $67.72 per barrel.
On Monday, both jumped more than 5 per cent rebounding from the longest losing streak since 2019 of seven consecutive settlements in the red as investor risk appetite increased and the U.S. dollar softened.
The weaker Dollar continued to support oil prices early on Tuesday but a fire at an oil platform off Mexico on Sunday that has cut state-run Pemex’s oil production by about 25 per cent pushed prices higher.
Reports show that five workers died and the fire injured six others. Currently, the platform and 125 wells are offline, which reduced Mexico’s crude oil production by 421,000 barrels per day.
A restart of the platform could take days, meaning prices of heavy sour crude oil grades are rising on the US Gulf Coast as the market braces for disruption of supplies from Mexico.
Another support for the market was the positive outcome of China’s zero COVID policy, as the world’s top crude oil importer has reported zero symptomatic COVID cases for the first time in weeks.
The country’s zero COVID approach prioritises pandemic mitigation over everything else, especially given the highly contagious nature of the Delta strain. China some weeks ago shut down a key servicing sector due to one person contracting the disease.
In India, the world’s third-largest exporter, refiners’ crude throughput in July bounced to its highest in three months as fuel demand rebounded and buoyed prices.
In addition, the U.S. Food and Drug Administration (FDA) gave the full approval on Monday to the Pfizer-BioNTech COVID-19 vaccine, the first vaccine to get full approval from the FDA, which had given emergency use authorization to the Pfizer and other vaccines.
Some experts say that the full approval could encourage hesitant people to get a vaccine amid surging Delta variant cases in many parts of the world.
Data from trade group the American Petroleum Institute (API) is expected with official data from the Energy Information Administration (EIA) released later on Wednesday.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited again failed to get out the danger zone on Friday after it further shed 0.33 per cent at the close of transactions.
The woes of the domestic stock exchange was compounded by the sustained weak investor sentiment after finishing with 19 price gainers and 40 price gainers, indicating a negative market breadth index.
Berger Paints lost 10.00 per cent to close at N35.10, C&I Leasing declined by 9.86 per cent to N5.03, MeCure Industries slipped by 9.77 per cent to N27.70, Champion Breweries depleted by 9.72 per cent to N13.00, and The Initiates crashed by 9.66 per cent to N10.75.
Conversely, NCR Nigeria gained 9.94 per cent to finish at N19.35, McNichols grew by 9.82 per cent to N3.02, Eunisell rose by 9.24 per cent to N70.90, Deap Capital jumped by 8.81 per cent to N1.73, and Ellah Lakes surged by 8.29 per cent to N11.75.
Data showed that Wema Bank was the most active stock yesterday, selling 90.9 million units worth N1.7 billion, Consolidated Hallmark traded 78.3 million units valued at N317.3 million, AXA Mansard exchanged 32.4 million units for N430.6 million, Access Holdings sold 23.4 million units worth N511.8 million, and Zenith Bank transacted 22.5 million units valued at N1.4 billion.
At the close of trades, investors bought and sold 527.2 million shares worth N15.4 billion in 24,637 deals compared with 619.6 million shares valued at N16.5 billion in 24,865 deals recorded a day earlier.
This indicated that the trading volume, value, and the number of deals contracted by 14.91 per cent, 6.67 per cent and 0.92 per cent, respectively.
Business Post reports that the insurance space slipped by 2.15 per cent, the banking counter shrank by 0.88 per cent, the consumer goods index fell by 0.47 per cent, the energy industry slumped by 0.25 per cent, and the industrial goods sector depleted by 0.11 per cent, while the commodity segment closed flat.
On the last trading day of the week, the All-Share Index (ASI) decreased by 501.74 points to 149,524.81 points from 150,026.55 points and the market capitalisation contracted by N319 billion to N94.998 trillion from N95.317 trillion.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Air Liquide Plc extended the positive run of the NASD Over-the-Counter (OTC) Securities Exchange by a 0.07 per cent on Friday, November 7.
Afriland Properties Plc appreciated by N1.52 during the session to end at N20.73 per unit compared with the previous day’s N19.21 per unit, and Air Liquide Plc rose by 90 Kobo to close at N10.00 per share versus the preceding session’s N9.10 per share.
This raised the market capitalisation of the trading platform by N1.50 billion to N2.190 trillion from the N2.189 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) increased by 2.51 to 3,661.07 points from the 3,658.56 points it ended on Thursday.
The bourse recorded a price loser yesterday and it was Central Securities Clearing System (CSCS) Plc, which fell by 15 Kobo to close at N40.00 per unit, in contrast to the previous day’s N40.15 per unit.
During the trading session, the volume of securities traded by the market participants went down by 57.9 per cent to 197,833 units from the previous day’s 221,284 units, the value of securities decreased by 66.3 per cent to N4.0 million from N11.9 million, while the number of deals went up by 9.1 per cent to 24 deals from 22 deals.
When the market ended for the day, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value with a year-to-date sale of 5.8 billion units valued at N16.4 billion, followed by Okitipupa Plc with 170.3 million units transacted for N8.0 billion, and Air Liquide Plc with 507.4 million units traded for N4.2 billion.
InfraCredit Plc was also the most traded stock by volume on a year-to-date basis with 5.8 billion units sold for N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with 1.2 billion units worth N419.7 million, and Impresit Bakolori Plc with 536.9 million units transacted for N524.9 million.
By Adedapo Adesanya
The Naira appreciated further against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, November 7, by 16 Kobo or 0.12 per cent to close at N1,436.58/$1, in contrast to the N1,436.74/$1 it ended a day earlier.
Equally, the Nigerian Naira gained against the Pound Sterling in the official market yesterday by 21 Kobo to finish at N1,882.35/£1 compared with Thursday’s closing price of N1,882.56/£1 and improved against the Euro by 19 Kobo to trade at N1,657.52/€1 compared with the previous day’s N1,657.71/€1.
Once again, the domestic currency retained its previous day’s value of N1,446/$1 at GTBank forex counter, and at the parallel market, it closed flat at N1,450/$1 during the trading day.
The Naira stability is hinged on continued FX interventions from the Central Bank of Nigeria (CBN) and overall investor sentiment which continues to get backing from strong external reserves and expectations of sustained high crude oil prices.
Nigeria’s gross external reserves increased to $43.324 billion as of November 6, up from $43.197 billion at the end of October.
This week, the country saw a 477 per cent oversubscribed Eurobond raise which provided additional support for the local currency outlook as it signifies good foreign investment sentiments on the Nigerian economy.
In the crypto market, there were some gains as investors clawed back after recent losses as economic data suggests a December Federal Reserve rate cut could be very much back on the table.
Amid the government shutdown and lack of official statistics, the University of Michigan Consumer Sentiment Survey released on Friday showed that suggest the central bank might have to re-consider plans not to cut rates again at its final meeting of the year in December.
Litecoin (LTC) added 10.7 per cent to sell at $99.97, Dogecoin (DOGE) expanded by 8.2 per cent to $0.1795, Cardano (ADA) appreciated by 6.6 per cent to $0.5791, Ripple (XRP) gained 4.2 per cent to close at $2.31, Binance Coin (BNB) oared by 2.8 per cent to $993.06, Ethereum (ETH) jumped by 2.8 per cent to $3,445.19, Solana (SOL) increased by 2.3 per cent to $160.36, and Bitcoin (BTC) advanced by 0.5 per cent to $102,371.77, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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