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Economy

Dangote Cement, MRS Oil, Others Extend NGX Rally by 1.07%

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Dangote Cement shares

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited further appreciated by 1.07 per cent on Thursday on the back of buying pressure on Dangote Cement, MRS Oil, Unity Bank and others.

MRS Oil topped the gainers’ chart yesterday with an appreciation of 9.83 per cent to N12.85, Courteville grew by 8.70 per cent to 50 Kobo, Unity Bank improved by 8.33 per cent to 52 Kobo, Dangote Cement expanded by 7.77 per cent to N238.50, and Mutual Benefits increased by 3.70 per cent to 28 Kobo.

Conversely, Julius Berger ended the session on top of the losers’ table after its share price fell by 9.81 per cent to N21.15, Cadbury Nigeria depreciated by 9.69 per cent to N10.25, Prestige Assurance decreased by 9.52 per cent to 38 Kobo, Multiverse went down by 9.41 per cent to N3.85, and Coronation Insurance shrank by 5.71 per cent to 33 Kobo.

Business Post reports that the market breadth finished bearish yesterday as there were 16 price losers and 15 price gainers, indicating a slightly weak investor sentiment.

The insurance and consumer goods counters depreciated during the session by 1.72 per cent and 0.66 per cent, respectively, while the industrial goods, energy, and banking sectors appreciated by 3.51 per cent, 0.12 per cent, and 0.01 per cent, respectively.

Consequently, the All-Share Index (ASI) increased by 465.34 points to close at 43,942.82 points compared with Wednesday’s 43,477.48 points, as the market capitalisation climbed higher by N254 billion to N23.935 trillion from N23.681 trillion.

Sterling Bank ended the day as the most active stock with the sale of 171.2 million units, Access Holdings transacted 78.8 million units, Transcorp traded 36.8 million units, GTCO transacted 23.9 million units, and Zenith Bank sold 17.2 million units.

At the close of business, investors exchanged 405.0 million equities worth N3.1 billion in 3,188 deals, in contrast to the 133.4 million equities worth N1.8 billion transacted in 3,078 deals, indicating an improvement in the trading volume by 203.60 per cent, an increase in the trading value by 72.22 per cent, and a surge in the number of deals by 3.57 per cent.

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

I Fully Agree Oil Has Been a Curse to Nigeria—Moghalu

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kingsley moghalu

By Aduragbemi Omiyale

A former deputy governor of the Central Bank of Nigeria (CBN), Mr Kingsley Moghalu, has said oil has been a curse to Nigeria.

He said this in reaction to the discovery of oil in the northern part of the country.

On Tuesday, President Muhammadu Buhari flagged off the Kolmani Integrated Development Project in Bauchi, and he said the country attracted $3 billion investment in fossil energy from the project at a time when the oil and gas sector was becoming less attractive.

“It is, therefore, to the credit of this administration that at a time when there is near zero appetites for investment in fossil energy, coupled with the location challenges, we are able to attract investment of over $3 billion to this project,” Mr Buhari said.

The Kolmani Integrated Development Project is a fully integrated in-situ development project comprising upstream production, oil refining, power generation and fertilizer.

The Kolmani River field has huge commercial deposits of hydrocarbons, which the President said is “over one billion barrels of oil reserves and 500 billion cubic feet of gas.”

But Mr Moghalu, who contested to be the President of Nigeria in 2019 under the Young Progressives Party (YPP), believes that the country has not gained anything meaningful from being an oil-producing nation.

Nigeria is one of the leading producers of crude oil in Africa. Most of the foreign exchange (FX) earnings come from the sale of the commodity. However, oil theft and corruption have subjected its citizens to abject poverty, with the government resorting to borrowing to fund its budgets.

“I fully agree with those who say oil has been a curse to Nigeria. Many of them question the ultimate value of the reported Kolmani oil find in Northern Nigeria.

“But I am also practical enough to know three things. First, some countries like Saudi Arabia, Gulf States, and Norway were smart enough to use oil to build their economies but diversified into other means of wealth creation and also built-up savings (reserves/Sovereign Wealth Funds) for the rainy day that have served them well.

“Secondly, the real secret of the wealth of nations does NOT lie in natural resources. It lies in economic complexity – the ability to prioritize technological innovation and use it to manufacture complex products that are value-added and competitively produced and then exported to dominate the world trading system. Singapore, South Korea, Japan, Switzerland and many other of the world’s wealthiest countries have NOTHING of value under their soil but have used this principle to create wealth for their citizens. That’s why they are rich, but we in Nigeria and most other African countries, with our so-called blessing of natural resources, are in a poverty trap.

“We in fact have the resource curse. 70% of the world’s strategic minerals are in Africa, but the continent’s share of world trade is just 3% in 2022.

“The third thing I am practical enough to know is that, as Nigeria is currently led and configured, the dominant mentality of its political leadership is still fixated on natural resources and resource rents. They simply do not share in, & do not care, about the secret of the wealth of nations.

“Their minds still haven’t evolved to that knowledge or, more accurately, the political will to de-emphasize natural resource thinking and shift to real wealth creation,” the respected economist said in a series of tweets via his verified Twitter handle, @MoghaluKingsley.

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Economy

Index Rises 2.04% on Interest Airtel Africa, MTN Nigeria Shares

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NSE lists Airtel Africa Shares

By Dipo Olowookere

It was another positive outing for the Nigerian Exchange (NGX) Limited on Friday as it closed higher by 2.04 per cent on the back of buying interest in Airtel Africa, MTN Nigeria and 16 others.

The sustained upward movement was buoyed yesterday by the 1.10 per cent growth posted by the insurance sector, the 0.26 per cent improvement in the industrial goods space, and the 0.25 per cent rise in the banking counter.

The trio offset the 2.37 per cent loss printed by the consumer goods counter, as the energy index closed flat when trading activities were brought to an end at 2:30 pm.

Consequently, the All-Share Index (ASI) closed higher by 949.40 points to 47,554.34 points from 46,604.94 points, as the market capitalisation grew by N517 billion to settle at N25.902 trillion compared with Thursday’s closing value of N25.385 trillion.

The stock market was quiet on Friday as the most active stock, FCMB, only traded 16.8 million units, while MTN Nigeria sold 16.4 million units. Fidelity Bank traded 7.5 million shares, Zenith Bank exchanged 6.4 million equities, and Access Holdings transacted 5.8 million equities.

From an analysis of the activity chart, a total of 99.0 million stocks worth N5.5 billion were traded by investors yesterday in 2,780 deals compared with the 138.6 million stocks worth N2.2 billion traded in 3,434 deals, indicating an increase in the trading value of 154.41 per cent, a decline in the number of deals by 19.04 deals and a drop in the trading volume by 28.58 per cent.

Red Star Express ended the day on top of the gainers’ chart after its value rose by 9.66 per cent to N2.27, Regency Assurance appreciated by 8.70 per cent to 25 Kobo, Livestock Feeds grew by 8.16 per cent to N1.06, Prestige Assurance expanded by 7.50 per cent to 43 Kobo, and Airtel Africa improved by 7.41 per cent to N1,450.00.

Conversely, Capital Hotel topped the losers’ log yesterday after it went down by 10.00 per cent to N3.06, Nestle Nigeria fell by 10.00 per cent to N963.90, International Breweries drained by 2.27 per cent to N4.30, GTCO lost 1.48 per cent to N20.00, and Wema Bank depreciated by 0.97 per cent to N3.07.

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Economy

Naira Gains at P2P, Weakens at I&E

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By Adedapo Adesanya

The Naira closed stronger against the United States Dollar at the Peer-to-Peer (P2P) window of the foreign exchange (FX) market on the last trading session of the week by N1 to sell at N786/$1 compared with the previous day’s exchange rate of N787/$1.

Similarly, in the black market, the Naira appreciated against the American Dollar by N2 to trade at N775/$1 yesterday, in contrast to the N777/$1 it closed on Thursday.

However, in the Investors and Exporters (I&E) segment of the forex market, the domestic currency depreciated against its US counterpart by 0.3 per cent or N1.33 to settle at N446.33/$1 compared with the preceding session’s N445/$1.

Data from FMDQ Securities Exchange indicated that the FX turnover at the I&E window on Friday was $117.26 million, lower than the $145.89 million reported a day earlier by $28.63 million or 19.6 per cent.

In the interbank segment, the Nigerian Naira closed flat against the Pound Sterling and the Euro yesterday at N526.97/£1 or N455.56/€1, respectively.

Meanwhile, in the cryptocurrency market, there were recoveries as a majority of the 10 cryptos tracked by Business Post pointed north, with Dogecoin (DOGE) surging by 14.6 per cent to trade at $0.093.

This happened as the crypto market is still reeling after a brutal month, with investor confidence shattered following news that FTX, once one of the biggest and most popular crypto exchanges, went bust.

Binance Coin (BNB) recorded a 5.5 per cent appreciation to trade at $311.11, Ethereum (ETH) saw its value go up by 3.8 per cent to sell at $1,220.31, Cardano (ADA) recorded a 2.9 per cent rise to quote at $0.319, and Solana (SOL) appreciated by 2.8 per cent to trade at $14.41.

Further, Ripple (XRP) recorded a 2.4 per cent gain to settle at $0.4079, Bitcoin (BTC) made a 1.4 per cent improvement to sell at $16,626.37, Litecoin (LTC) jumped by 1.3 per cent to trade at $77.20.

But the US Dollar Tether (USDT) and Binance USD (BUSD) remained unchanged at $0.9995 and $1.00 apiece.

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