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CWG Leads Losers’ Chart as Stocks Shed N71bn

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By Dipo Olowookere

It was a poor start to the new trading week on the floor of the Nigerian Exchange (NGX) Limited on Monday as stocks depreciated by 0.36 per cent at the close of business.

Selloffs in some financial, consumer goods and industrial goods shares contributed to the decline suffered by the market yesterday, causing the All-Share Index (ASI) to contract by 136.30 points to 37,857.89 points from 37,994.19 points. The selling pressure also shrank the market capitalisation by N71 billion to N19.725 trillion from N19.796 trillion.

Business Post reports that of the five key sectors of the market monitored yesterday, only the energy index closed bullish as it rose marginally by 0.05 per cent.

The banking sector went down by 1.00 per cent, the consumer goods counter depreciated by 0.40 per cent, the industrial goods space lost 0.35 per cent, while the insurance sector went down by 0.03 per cent.

CWG led the losers’ chart on Monday after its share price went down by 9.52 per cent to N1.14 and was followed by International Breweries, which declined by 5.66 per cent to N5.00.

Champion Breweries fell by 3.23 per cent to N2.10, FBN Holdings dropped 2.60 per cent to sell at N7.50, while Axa Mansard Insurance reduced by 2.25 per cent to 87 kobo.

On the gainers’ chart, Tripple Gee was on top after its value went up by 9.89 per cent to N1.00 and was trailed by Regency Alliance, which grew by 8.89 per cent to 49 kobo.

UPDC appreciated by 7.44 per cent to sell at N1.30, FTN Cocoa gained 5.88 per cent to quote at 36 kobo, while Mutual Benefits Assurance rose by 5.00 per cent to 42 kobo.

At the close of transactions, there were 13 price decliners and 16 price risers, indicating that the market breadth, which measures investor sentiment, was positive despite the loss.

On the activity chart, the trading volume reduced by 22.58 per cent to 187.2 million shares from 241.8 million shares, the trading value increased by 6.74 per cent to N2.9 billion from N2.7 billion, while the number of deals grew by 5.18 per cent to 4,017 deals from 3,819 deals.

The most active stock of the day was Zenith Bank as it sold 35.3 million equities valued at N870.9 million, with Sovereign Trust Insurance, which followed, selling 14.2 million equities valued at N4.0 million.

UBA transacted 14.1 million shares worth N106.1 million, Mutual Benefits Assurance sold 13.4 million stocks worth N5.6 million, while Transcorp traded 11.5 million shares valued at N10.4 million.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

Economy

NGX Spurs Capital Market Innovation to Attract Investors

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By Aduragbemi Omiyale

The Nigerian Exchange (NGX) Limited has disclosed that the NGX Made of Africa Awards will spur the next phase of capital market innovation to attract more investors into the space.

On Tuesday, December 6, 2022, the exchange held the award ceremony in Lagos to recognise innovativeness and compliance with best practices in the Nigerian capital market for the calendar year.

The event spotlighted excellence, creativity and integrity as NGX sought to amplify the activities of its stakeholders to further reinforce the values that attract investors to the market and grow the African economy.

Players in the capital market ranging from issuers, securities dealers, issuing houses, fund managers, trustees, legal firms and stakeholders, including the media and content creators were rewarded for their contributions to the development of the market.

In his opening remarks, the Chairman of NGX, Mr Abubakar Balarabe Mahmoud, explained that the goal of the exchange with the awards is to further catalyse innovation, corporate performance, shareholder return, compliance to rules and regulation in driving investor confidence and aiding regulatory oversight on the market.

“It is essential that we continue to collaborate, encourage and incentivise our partners through initiatives like the NGX Made of Africa Awards. At NGX, relationships, partnerships, collaboration and inclusivity continue to drive our actions in the quest to spotlight The Stock Africa is Made Of,” he said.

On his part, the chief executive of the bourse, Mr Temi Popoola, said the event had been reviewed to reflect the dynamism of the capital market and the transformation it had witnessed so far.

“We are delighted to be extending the reach of these Awards to further highlight our commitment to inclusivity, innovation and integrity whilst highlighting NGX as the platform of choice to raise capital,” he stated.

In his goodwill message, the Governor of Edo State, Mr Godwin Obaseki, highlighted the importance of the capital market to the economy, calling together all stakeholders to move Nigeria towards a more productive economy and less import-dependent.

He also noted that NGX has continued to stand out as a market infrastructure of choice for public and private sector capital formation.

Also, the Director-General of the Securities and Exchange Commission (SEC), Mr Lamido Yuguda, represented by the Executive Commissioner, Corporate Services, Mr Ibrahim Boyi, said that the commission had championed innovative measures that have improved the market, including dematerialisation, direct cash settlement and e-dividend.

“The long-term sustainability in the market requires innovation of which the fundamental outcome was a maximum return on investment, reduction in the cost of doing business and increased production,” he said.

Speaking on the African capital market potentials, Mr Aigboje Aig-Imokuede, the Chairman of Coronation Capital and a former President of the Council of the Nigerian Stock Exchange pre-demutualisation, said that after a long haul of liquidity in global markets, central banks across the globe are implementing hawkish monetary policies to revive price stability and tame inflationary pressures.

He noted that the capital market in this period of restrained global growth had an important role to play in stimulating economic growth and development through the efficient allocation of resources.

Business Post reports that a few of the awardees were Dangote Cement as Best Issuer in Terms of Number of Fixed Income Listings; Lafarge Africa as Leader in Sustainability Reporting; Pilot Securities Limited as Most Compliant Trading License Holder; Aluko and Oyebode as Best Solicitor in terms of Value of Deals; and Coronation Securities Limited as Best Sponsoring Trading License Holder of the Year. Lagos State won the State with the Largest Sub-national Debt Instrument; MTN Nigeria Communications won the Most Compliant Listed Company; CardinalStone Securities won the Best Trading License Holder Across Asset Classes; BUA Foods was awarded the Listing of the Year; and Capital Markets Correspondent Association (CAMCAN) won Capital Market Reportage.

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Economy

Crude Oil Prices Fall To Lowest Levels in 10 Months

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By Adedapo Adesanya

The prices of the crude oil grades in the market fell to their lowest levels this year on Wednesday, losing all of the gains they had accumulated since Russia’s invasion of Ukraine.

Brent futures fell by $2.18 or 2.8 per cent to trade at $77.17 a barrel, as the United States West Texas Intermediate (WTI) futures depreciated by $2.24 to $72.01 per barrel.

Oil surged to nearly $140 a barrel in March, close to an all-time record, following the launch of what Russia tagged a “special operation” in Ukraine a month earlier.

The market has been steadily declining recently as economists brace for weakened worldwide growth in part due to high energy costs.

The situation worsened on Wednesday with bigger-than-expected increases in US fuel inventories despite a drop in crude stocks.

The US Energy Information Administration (EIA) reported an inventory decline of 5.2 million barrels for the week of December 2 compared with a sizeable draw of 12.6 million barrels estimated for the previous week, which sent prices higher at the time.

A day before the EIA released its report, the American Petroleum Institute estimated another weekly crude inventory draw for the week to December 2 at 6.43 million barrels.

Meanwhile, the EIA also reported an inventory build in fuel and another rise in middle distillate stocks for the week to December 2. Gasoline (petrol) inventories added 5.3 barrels in the week to December 2, with production averaging 9.1 million barrels daily, in contrast to a build of 2.8 million barrels for the previous week and a production rate of 9.4 million barrels daily.

Prices are also slipping further down as traders relax about the potential consequences of the G7 and EU price cap on Russian oil.

It appears they have assumed that it would not affect the availability of oil in any significant way and are selling crude.

Analysts also note that Russian oil is already trading close to the cap, so it shouldn’t make much of a difference in revenues, but it is worth remembering Russia has said it would not sell oil to countries that enforce the price cap, meaning the supply of Russian oil specifically might tighten for some importers.

Russia has also threatened to set a price floor for its oil in response to the G7 price cap, which may further complicate matters.

Support came as China, the world’s biggest crude importer, announced the most sweeping changes to its anti-COVID regime since the pandemic began. The country’s crude oil imports in November rose 12 per cent from a year earlier to their highest in 10 months, data showed.

Still, warnings from big US banks about a likely recession next year weighed on the value of the commodity.

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Economy

Nigerian Stocks Maintain Upward Trajectory Amid Weak Investor Sentiment

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By Dipo Olowookere

The Nigerian Exchange (NGX) Limited closed higher for the fourth consecutive trading day by 0.12 per cent on Wednesday amid a weak investor sentiment.

At the midweek session, 17 equities shed weight, more than the 12 equities that gained weight. It was observed that traders embarked on profit-taking, but the gains by stocks in the consumer goods sector, especially Nigerian Breweries and Honeywell Flour, left the bourse in the green territory at the close of transactions.

Consequently, the All-Share Index (ASI) rose by 59.80 points to 48,426.49 points from 48,366.69 points, while the market capitalisation, while the market capitalisation jumped by N33 billion to N26.377 trillion from N26.344 trillion.

Yesterday, the consumer goods counter appreciated by 0.96 per cent, the industrial goods sector closed flat, while the insurance, banking and energy indices depreciated by 0.55 per cent, 0.17 per cent, and 0.08 per cent, respectively.

A total of 146.2 million stocks worth N3.4 billion exchanged hands in 2,810 deals on Wednesday compared with the 184.7 million stocks worth N3.6 billion traded in 3,189 deals on Tuesday, representing a decline in the trading volume, value and number of deals by 20.85 per cent, 5.56 per cent, and 11.88 per cent apiece.

FBN Holdings traded the highest number of stocks during the session, 59.3 million units, followed by Geregu, which sold 14.3 million units. Zenith Bank transacted 12.5 million stocks, Sterling Bank exchanged 7.0 million equities, and UBA traded 6.9 million shares.

The best-performing equity on Wednesday was Thomas Wyatt, which improved its share price by 10.00 per cent to close at 44 Kobo. Japaul gained 7.41 per cent to end at 29 Kobo, Honeywell Flour appreciated by 6.14 per cent to N2.42, May and Baker rose by 5.26 per cent to N4.00, and Nigerian Breweries grew by 4.62 per cent to N38.50.

The worst-performing stock yesterday was SCOA Nigeria, which dropped 9.38 per cent to sell for 87 Kobo. Unity Bank depreciated by 7.02 per cent to 53 Kobo, Cornerstone Insurance fell by 6.25 per cent to 45 Kobo, Courteville shrank by 6.00 per cent to 47 Kobo, and Chams lost 4.35 per cent to trade at 22 Kobo.

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