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Economy

Equity Market Gains N6bn as Investors’ Risk Appetite Sours

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Investors' Risk Appetite

By Dipo Olowookere

Transactions on the floor of the Nigerian Exchange (NGX) Limited marginally closed higher by 0.02 per cent on Friday as investors’ risk appetite fades.

Business Post reports that the slight bargain hunting witnessed at the local equity market on the last trading session of this week was because investors were treading cautiously.

Not even the declaration of a 30 kobo interim dividend from Zenith Bank could trigger a massive buy pressure, though the results, which was relatively flat, were released almost at the close of trades.

When the market closed for the day, the All-Share Index (ASI) was just up by a mere 8.47 points to 39,485.65 points from 39,477.18 points, while the market capitalisation rose by N6 billion to N20.573 trillion from N20.567 trillion.

The marginal growth recorded yesterday was just due to the mopping up of shares in the energy and banking sectors, rising respectively by 0.31 per cent and 0.29 per cent.

The insurance counter lost 0.65 per cent, the consumer goods space went down by 0.25 per cent, while the industrial goods sector closed flat.

In terms of the transactions on Friday, a total of 232.9 million shares worth N1.9 billion were traded in 3,351 deals compared with the 186.3 million shares worth N1.8 billion traded in 3,595 deals a day earlier, implying that the trading volume and value went up by 24.97 per cent and 3.18 per cent respectively, while the number of deals went down by 6.79 per cent.

A further breakdown of the trades showed that Transcorp was the most active as it sold 45.1 million stocks valued at N42.1 million, followed by Mutual Benefits Assurance, which sold 29.3 million shares valued at N8.9 million,

GTCO transacted 22.1 million equities worth N614.3 million during the session, Zenith Bank transacted 16.4 million stocks valued at N399.2 million, while eTranzact exchanged 13.8 million equities for N26.8 million.

A total of 10 equities closed on the losers’ chart yesterday while 18 stocks closed on the gainers’ log led by Morison Industries, which appreciated by 9.47 per cent to settle at N1.85.

FTN Cocoa grew by 9.09 per cent to 48 kobo, Sovereign Trust Insurance improved by 8.70 per cent to 25 kobo, UPDC went up by 8.28 per cent to N1.83, while BOC Gases gained 6.31 per cent to sell at N11.80.

During the session, Unilever Nigeria had the worst day as its share price went down by 10.00 per cent, selling at N13.50 and was trailed by NASCON, which fell by 9.87 per cent to N14.15.

AIICO Insurance depreciated by 4.85 per cent to 98 kobo, Veritas Kapital declined by 4.17 per cent to 23 kobo, while Transcorp decreased by 3.16 per cent to 92 kobo.

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

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Economy

Investors Gain N1.09bn as NASD Share Price Rises 9.1%

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NASD Exchange

By Adedapo Adesanya

The unlisted securities market closed the last trading session of the week on a positive note after it appreciated by 0.18 per cent on the back of growth in the share price of NASD Plc.

Business Post reports that the NASD Over-the-Counter (OTC) Securities Exchange returned to the bulls’ territory on Friday after it closed flat on Thursday.

NASD Plc was the major driver of the return of the bourse to the green region as its value went up during the session by N2.45 or 9.1 per cent to close at N26.99 per unit in contrast to N24.54 per unit it closed at the previous session.

As a result of this, the NASD unlisted security index (NSI) moved up by 1.32 points to 745.44 points from 744.12 points, while the market capitalisation gained N1.09 billion to wrap the day at N615.86 billion in contrast to the previous day’s N614.77 billion.

On the activity chart, there was an improvement as the trading volume surged by 34,985.6 per cent because of the 2.3 million units of shares exchanged by market participants compared with the 6,688 units transacted at the previous session.

In the same vein, the trading value rose by 17,680.6 per cent to N63.4 million from the previous day’s N356,563.60, while the number of deals witnessed a 100 per cent rise as investors carried out 12 deals compared to the six deals executed at the previous session.

At the close of trades, Food Concepts Plc was the most traded stock by volume (year-to-date) with 11.4 billion units of its shares worth N14.4 billion, Lighthouse Financial Service Plc followed with 1.1 billion units valued at N546.2 million, while Geo Fluids Plc was in third place with 1.0 billion units worth N700.1 million.

Food Concepts Plc was also the most traded stock by value on a year-to-date basis with 11.4 billion units worth N14.4 billion, trailed by Nigerian Exchange (NGX) Group Plc with 456.4 million units valued at N9.2 billion, VFD Group Plc with 10.4 million units valued at N3.5 billion.

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Economy

Naira Trades N414.73/$1 as Cryptos Bleed Heavily

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Cryptos

By Adedapo Adesanya

The Naira appreciated against the US Dollar at the Investors and Exporters (I&E) window of the foreign exchange (forex) market by 0.02 per cent or 7 kobo on Friday, December 4.

Data showed that the local currency was sold for N414.73/$1 at the investors’ window yesterday compared with the N414.80/$1 it traded on Thursday.

At the final trading session of the week, the turnover was $103.01 million as against $139.67 million achieved at the preceding session, indicating a $36.66 million or 26.62 per cent decline.

Also, the exchange rate of the Naira to the United States currency recorded a movement on Friday, though downward as the Nigerian currency depreciated by 4 kobo as it closed at N411.74/$1 versus the preceding day’s N411.70/$1.

The local currency, however, appreciated by N2.17 against the British Pound Sterling to settle at N546.26/£1 compared to N548.43/£1 it traded at the previous trading session and 57 kobo against the Euro to trade at N465.68/€1 compared to the preceding day’s N466.25/€1.

At the cryptocurrency market, investors counted a heavy loss as the new variant of the coronavirus called Omicron and hawkish comments by the US Federal Reserve that it could raise interest rates have raised serious concerns, causing cryptos to bleed heavily.

The heaviest loss was suffered by Dash (DASH), which plunged by 35.3 per cent to sell for N66,595.85. Ripple (XRP) depreciated 30.6 per cent to trade at N381.85, while Litecoin (LTC) sold for N66,595.85 after declining by 24.1 per cent.

Dogecoin (DOGE) went down by 22.7 per cent to sell at N90.29, Cardano (ADA) depreciated by 20.8 per cent to N652.82, Bitcoin (BTC) depleted by 16.9 per cent to quote at N26,800,504.20, Ethereum (ETH) equally saw a 16.9 per cent depreciation to trade at N2,100,100.39, Binance Coin (BNB) recorded a 12.9 per cent depreciation to trade at N218,577.24, Tron (TRX) went down by 12.7 per cent to trade at N48.00, while the US Dollar Tether (USDT) recorded a 0.1 per cent marginal loss to sell for N554.76.

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Economy

Crude Mixed as Market Remains Unsettled by Omicron Jitters

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Crude Oil Prices

By Adedapo Adesanya

Crude prices closed mixed on Friday, December 3 after erasing earlier big gains on growing worries that rising coronavirus cases and a new variant could reduce global oil demand.

Brent crude gained 21 cents or 0.3 per cent to trade at $69.88 per barrel while on the other hand, the United States West Texas Intermediate (WTI) crude lost 24 cents or 0.36 per cent to sell at $66.26 per barrel.

Both benchmarks declined for a sixth week in a row for the first time since November 2018.

Oil prices had witnessed one of the most troubled weeks as the market reeled from the fear brought about by the Omicron variant of the coronavirus with speculations that it could spark new lockdowns and dent fuel demand.

The World Health Organization (WHO) urged countries to vaccinate their people to fight the virus, saying travel curbs were not the answer.

Even with this, the Organisation of the Petroleum Exporting Countries and allies (OPEC+) surprised the market on Thursday when it stuck to its plans to add 400,000 barrels per day supply in January.

However, it said it will continue to monitor the market and this could make it change course if demand suffered from measures to contain the spread of the Omicron coronavirus variant.

The alliance said they could meet again before their next scheduled meeting on January 4.

Analysts noted that with the coronavirus cases rising, the US jobs report for November also didn’t help demand outlook even as the unemployment rate plunged to a 21-month low of 4.2 per cent, suggesting the country’s labour market was rapidly tightening.

US employment growth slowed considerably in November amid job losses at retailers and in local government education.

Meanwhile, in Vienna, diplomats attempting to restore the nuclear deal between Iran and world powers face substantial challenges that need urgent solutions, the top European envoy said Friday. Talks are set to resume next week.

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