Economy
Equities Gain N128bn on NSE Conversion to Plc, Bargain Hunting
By Dipo Olowookere
The Nigerian Stock Exchange (NSE) rebounded on Wednesday with a 0.63 per cent gain on the back of renewed bargain hunting by investors.
Also, news that the exchange has concluded its conversion into a public company excited investors yesterday as the shares of the regulator would now be available to the general public for trading.
At the close of transactions at the midweek session, the market capitalisation of the bourse grew by N128 billion to N20.369 trillion from N20.241 trillion.
Also, the All-Share Index (ASI) increased by 244.40 points to settle at 38,931.25 points in contrast to 38,686.85 points it closed the preceding session.
Business Post reports that the growth printed yesterday was quite significant to market participants as the exchange has witnessed series of losses in the past trading sessions and investors were yearning for the positive triggers that would soothe the pains.
It was not surprising when the market breadth closed at equilibrium on Wednesday as 23 stocks closed on the price gainers and losers charts apiece.
Morison Industries maintained its upward trajectory yesterday with a 9.72 per cent growth to close at 79 kobo and was trailed by Champion Breweries, which rose by 8.91 per cent to settle at N2.20.
Neimeth grew by 8.85 per cent to N2.09, Mutual Benefits Assurance appreciated by 7.69 per cent to 42 kobo, while NAHCO moved up by 6.64 per cent to N2.25.
On the losers’ table, Consolidated Hallmark Insurance was on top with a price depreciation of 10.00 per cent to sell for 27 kobo and was followed by Eterna, which lost 9.94 per cent to sell at N4.62.
Conoil depreciated by 9.79 per cent to N17.05, Northern Nigerian Flour Mills declined by 9.65 per cent to 55 kobo, while Livestock Feeds depreciated by 9.57 per cent to N1.70.
It was observed that the selloff in UBA shares continued yesterday after the company announced a final dividend of 35 kobo for the 2020 financial year. The lender was the most active at the exchange on Wednesday as it sold 74.8 million units of its stocks worth N523.4 million.
FBN Holding traded 65.4 million units valued at N467.8 million, GTBank exchanged 34.3 million equities for N1.1 billion, Sovereign Trust Insurance sold 34.2 million stocks worth N9.9 million, while Japaul transacted 15.5 million equities valued at N7.2 million.
At the close of business, a total of 368.2 million shares worth N4.9 billion were traded in 4,437 deals in contrast to the 490.0 million shares worth N6.7 billion traded in 4,616 deals on Tuesday, indicating a decline in the trading volume, value and number of deals by 24.85 per cent, 26.17 per cent and 3.88 per cent respectively.
At the market yesterday, the industrial goods, the consumer goods and the insurance sectors improved by 1.74 per cent, 0.40 per cent and 0.18 per cent respectively, while the banking and energy counters lost 0.35 per cent and 0.03 per cent correspondingly.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the south for the fourth consecutive session after it shed 1.18 per cent on Friday, March 13.
The unlisted securities market recorded a loss despite closing without a price decliner, and ending with two price gainers led by Geo Fluids Plc, which gained 1o Kobo to sell at N3.10 per share compared with the previous day’s N3.00 per share. Industrial and General Insurance (IGI) Plc appreciated during the session by 2 Kobo to trade at 54 Kobo per unit versus Thursday’s closing price of 52 Kobo per unit.
When the market closed for the day, the market capitalisation lost N29.83 billion to close at N2.489 trillion compared with the N2.519 trillion it finished a day earlier, and the NASD Unlisted Security Index (NSI) crashed by 49.84 points to 4,160.46 points from 4,210.31 points.
Market activity improved yesterday, as the volume of transactions rose 179.5 per cent to 10.4 million units from 3.7 million units, but the value of trades declined by 68.4 per cent to N29.9 million from N95.0 million, while the number of deals weakened by 11.5 per cent to 46 deals from 52 deals.
Central Securities Clearing Systems (CSCS) Plc remained the most active stock by value on a year-to-date basis with 38.4 million units worth N2.4 billion, Okitipupa Plc followed with 6.4 million units traded at N1.1 billion, and FrieslandCampina Wamco Nigeria Plc transacted 6.3 million units for N584.3 million.
Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.1 billion units valued at N415.6 million, trailed by Geo-Fluids Plc with 130.8 million units valued at N504.5 million, and CSCS Plc with 38.4 million units worth N2.4 billion.
By Adedapo Adesanya
The Naira continued to claw back some gains against the Dollar in the different segments of the foreign exchange (FX) market, as its value was strengthened on Friday.
In the black market, it gained N10 against the United States Dollar yesterday to close at N1,400/$1 compared with the preceding day’s rate of N1,410/$1, and at the GTBank forex counter, it chalked up N6 to close at N1,385/$1, in contrast to the N1,391/$1 it was traded a day earlier.
Similarly, in the Nigerian Autonomous Foreign Exchange Market (NAFEX), it appreciated against the greenback during the session by N5.28 or 0.38 per cent to quote at N1,366.23/$1 versus Thursday’s closing price of N1,371.51/$1.
It also improved its value against the Pound Sterling in the official market on Friday by N21.81 to settle at N1,812.99/£1 compared with the previous day’s N1,834.80/£1, and gained N13.86 against the Euro to sell at N1,568.03/€1 versus N1,581.89/€1.
Pressure eased further on the FX market as the Central Bank of Nigeria (CBN) continued interventionist operations this week, selling Dollars to banks to boost liquidity after a $500 million boost last week.
This was complemented by inflows from foreign investors, exporters and non-bank corporates, among others, while Nigeria’s gross external reserves remained above $50 billion, the highest since 2009.
The Governor of the apex bank, Mr Yemi Cardoso, also eased fears of a Naira devaluation, saying the country’s financial system has been strengthened by reforms.
Regardless, external pressure looms as the US Dollar strengthened globally due to its war with Iran, now ongoing for three weeks.
Meanwhile, the cryptocurrency market was largely down as traders and investors continue to align with current realities.
The market is adapting to the conflict in real time. Early in the war, every headline produced an outsized reaction because nobody could price the tail risk. Now, traders have a framework where strikes happen, oil spikes and bitcoin dips only to recover again.
Cardano (ADA) depreciated by 3.8 per cent to $0.2623, Dogecoin (DOGE) lost 1.7 per cent to finish at $0.0948, Ripple (XRP) slumped 1.5 per cent to $1.39, Solana (SOL) dropped 1.4 per cent to sell for $87.33, Binance Coin (BNB) went down by 1.3 per cent to $653.58, Bitcoin (BTC) declined by 1.1 per cent to $70,670.63, and Ethereum (ETH) decreased by 0.9 per cent to $2,078.78.
However, TRON (TRX) appreciated by 1.7 per cent to $0.2941, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Adedapo Adesanya
The price of the major crude oil grade, Brent crude oil, closed above $100 on Friday for the second consecutive session, as the Iran war heads toward its third week, with oil tanker traffic through the Strait of Hormuz still effectively at a standstill.
It gained 2.67 per cent or $2.68 during the trading day to close at $103.14 per barrel, while the US West Texas Intermediate (WTI) crude oil grade appreciated by 3.11 per cent or $2.98 to settle at $98.71 per barrel.
Brent futures were up about 10 per cent for the week following the 27 per cent rise seen last week, which marked the biggest weekly gain in oil prices since the COVID-19 pandemic in 2020. WTI futures, which saw their best week since 1983 last week, ended the week more than 8 per cent higher.
US President Donald Trump said American forces launched a major bombing raid on Iran’s strategic Kharg Island, targeting military facilities on the key Persian Gulf outpost while warning Iran that its vital oil infrastructure could be destroyed if shipping in the Strait of Hormuz is disrupted.
The terminal accounts for roughly 90 per cent of Iranian crude shipments, loading millions of barrels per day onto tankers bound largely for Asian markets.
The US and Israel’s strikes in the conflict have largely targeted Iranian military and nuclear infrastructure. Oil facilities elsewhere in Iran have been hit, but Kharg’s massive storage tanks, jetties, and pipelines had remained untouched until the latest strike.
Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep fighting in a message delivered via state television.
There have been a number of attacks on foreign ships in or near the Strait, feeding into concerns that a prolonged war could translate to a global economic shock.
Prices are rising despite the US and its allies rolling out some measures to keep a lid on energy costs.
The International Energy Agency (IEA) has agreed to release 400 million stockpiled barrels, the largest such action in history.
The US has issued a 30-day waiver for India to purchase sanctioned oil from Russia. President Donald Trump is considering loosening rules under the Jones Act that require American ships to transport goods between domestic ports, including oil and gas, in an effort to lower costs.
Traders are continuing to monitor developments in the Middle East.
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