Economy

Brent Slides to $100 as Demand Worries Cloud Market

Published

3 years ago

07/07/2022

By Adedapo Adesanya

The international crude oil benchmark, Brent, slid to the $100 mark on Wednesday as investors grew more worried energy demand would take a hit in a potential global recession.

The crude oil grade specifically lost $2.43 or 2.36 per cent yesterday to settle at $100.34 per barrel as the American grade, the West Texas Intermediate (WTI) crude fell by $1.11 or 1.12 per cent to $98.39 per barrel.

On Tuesday, Brent tumbled 9 per cent in what was the third biggest for the contract since it started trading in 1988. Its biggest drop was an equivalent of $16.84 in March while WTI lost 8 per cent.

The oil market opened the third quarter on a volatile footing as concerns about a potential recession rattled investors.

As central banks, including the US Federal Reserve, jacked up interest rates to tame inflation, investors have been pricing in the consequences of a slowdown even as physical crude markets continue to show signs of vigour and the war in Ukraine drags on.

With the US central bank expected to keep raising interest rates, investors are cutting back on risky assets like oil.

Oil prices were also slammed by a soaring US Dollar. The rise in the greenback makes oil expensive for holders of other currencies.

In China, the world’s biggest oil importer, the market is worried that new COVID-19 lockdowns could cut demand as some areas are facing local outbreaks and infections have emerged at the community level in Shanghai.

Meanwhile, China’s crude oil imports from Russia in May soared 55 per cent from a year earlier to a record level.

Russia displaced Saudi Arabia as the top supplier, with refiners grabbing discounted supplies as Western countries sanctioned the country over its invasion of Ukraine on February 24.

Further pressuring oil prices, Equinor ASA said all oil and gas fields affected by a strike in Norway’s petroleum sector were expected to be back in full operation within a couple of days.

The strike could have reduced Norway’s gas exports by as much as 60 per cent and would have pushed already excessive European gas prices even higher.

“Workers are going back to work as soon as possible. We are cancelling the planned escalation,” the leader of the Lederne trade union, one of the striking organizations, said.

Economy

VFD Group Bounces Back to Profitability With N11.2bn PBT in 2024

Published

2 hours ago

25/04/2025

Adedapo Adesanya

By Adedapo Adesanya

Proprietary Investment firm, VFD Group Plc, recorded a 1,202 per cent rise in its Profit Before Tax (PBT) in the 2024 financial year, closing December 31, 2024, at N11.2 billion.

This marked a turnaround after VFD Group reported a pre-tax loss of N1 billion in 2023 due to macroeconomic headwinds which affected a lot of businesses locally and globally.

Net investment income surged by 95 per cent to N59.0 billion despite a spike in investment expenses to N15.5 billion from N7.4 billion in 2023.

Other metrics showed that net revenue increased by 90 per cent to N71.0 billion, while operating profit grew by an impressive 104 per cent to N48.8 billion.

The firm, listed on the main board of the Nigerian Exchange (NGX) Limited, noted that the development showcased exceptional growth.

“The journey to this milestone was paved with strategic initiatives and a relentless pursuit of innovation,” it added in a statement on Friday.

The company holds investments in over 20 portfolio businesses spanning key sectors such as financial services, banking, market infrastructure, capital markets, technology, real estate, and hospitality.

As of April 22, 2025, VFD Group’s market capitalisation surged by 116 per cent to hit N121.6 billion from N56.2 billion year to date.

“These outstanding results reflect the success of our team’s efforts. As VFD Group looks to the future, it remains committed to delivering exceptional value to its customers and stakeholders,” the statement added.

Economy

Nigeria Targets $90bn from Textile, Livestock by 2035

Published

2 hours ago

25/04/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

About $90 billion is expected to be generated in economic value by 2035 from new strategies developed by the Nigerian government for agribusiness expansion and livestock transformation.

To achieve this, the National Economic Council (NEC) chaired by the Vice President, Mr Kashim Shettima, has approved the establishment of a Cotton, Textile and Garment Development Board.

At the NEC meeting on Thursday in Abuja, steps to reposition Nigeria’s economy and tackle insecurity at its roots were discussed by the participants, which included the governors of the 36 states of the federation.

The new regulatory body for the cotton, textile and garment sector of Nigeria will have governors representing the six geo-political zones, with Ministers of Agriculture and Food Security, Budget and Economic Planning, and Industry, Trade and Investment as members.

It would be domiciled in the presidency, with representation of the relevant public sector stakeholders, and funded from the Textile Import Levy being collected by the Nigeria Customs Service (NCS), though it would be private sector-driven.

“Nigeria is a nation where cotton can thrive in 34 states. Yet our production level remains a fraction of our potential.

“We currently produce only 13,000 metric tons, while we continue to import textiles worth hundreds of millions of dollars. This is not just an economic imbalance. It is an invitation to act,” he added.

“Our goal is not just regulation. It is a revival. This is our opportunity to re-industrialise, to empower communities, and to restore pride in local production,” the VP stated.

Also at the meeting yesterday, the council approved the establishment of the Green Imperative Project (GIP), with a national office in Abuja and regional offices across the six geopolitical zones.

Economy

CSCS, FrieslandCampina, Geo-Fluids Push NASD OTC Exchange Higher by 0.55%

Published

5 hours ago

25/04/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 0.55 per cent on Thursday, April 24 after the prices of three stocks on the platform ended in green.

This added N10.48 billion to the market capitalisation of the bourse, closing at N1.918 trillion compared with the N1.908 trillion it ended in the preceding session.

In the same vein, the NASD Unlisted Security Index (NSI) went up during the session by 17.90 points to 3,276.98 points from the previous session’s 3,259.08 points.

The market was dominated by bargain-hunting activities due to renewed investor confidence. None of the securities on the NASD ended in red yesterday.

However, Central Securities Clearing System (CSCS) Plc gained N1.97 to close at N21.71 per unit compared with Wednesday’s price of N19.74 per unit, FrieslandCampina Wamco Nigeria Plc appreciated by 15 Kobo to end at N37.95 per share, in contrast to midweek’s value of N37.80 per share, and Geo-Fluids Plc grew by 8 Kobo to settle at N1.70 per unit versus the preceding day’s price of N1.62 per unit.

During the trading day, the volume of securities transacted by the market participants increased by 19,558.9 per cent to 206.2 million units from 1.05 million units, the value of transactions jumped by 13,509.2 per cent to N354.1 million from N2.6 million, and the number of deals rose by 245.5 per cent to 38 deals from 11 deals.

When trading activities finished for the day, Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 533.9 million units sold for N520.9 million, followed by Geo-Fluids Plc with 250.9 million units worth N441.0 million, and Okitipupa Plc with 153.6 million units valued at N4.9 billion.

Also, Okitipupa Plc remained the most active stock by value (year-to-date) with 153.6 million units valued at N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 14.9 million units worth N573.2 million, and Impresit Bakolori Plc with 533.9 million units valued at N520.9 million.