Economy
FTN Cocoa Gains 40.91%, Japaul Rises 36% in One Week
By Modupe Gbadeyanka
Shareholders of FTN Cocoa Processors Plc, Japaul Gold and Ventures Plc and 51 others had reasons to smile last week at the Nigerian Stock Exchange (NSE).
In the five-day trading week, the shares of these companies yielded bountiful returns and this gave holders of the securities to smile looking at their portfolios.
For FTN Cocoa, it appreciated by 40.91 per cent to close at 62 kobo per share, while Japaul gained 36.00 per cent to finish at 34 kobo per share.
Airtel Africa improved by 21.00 per cent in the week to end at N774.40 per share, AIICO Insurance gained 19.05 per cent to close at N1.25 per share, while Consolidated Hallmark Insurance appreciated by 15.38 per cent to finish at 30 kobo per share.
At the close of business, the market recorded 53 price gainers compared with the 13 price risers of the preceding week.
However, only 17 equities depreciated in price in the week in contrast to the 46 equities of the earlier week and on top of the chart was Axa Mansard Insurance, which lost 60.00 per cent and Business Post reports that this was as a result of the price adjustment for its bonus share. This made the share price to close at 92 kobo per share as against the previous week’s N2.30 per share.
NEM Insurance depleted by 47.23 per cent as a result of its price adjustment in the week for its bonus share, closing at N1.24 per share in contrast to the previous N2.35 per share.
Omatek Ventures lost 16.67 per cent in the week to finish at 20 kobo per share, International Breweries depreciated by 12.67 per cent to close at N6.27 per share, while Linkage Assurance dropped 10.00 per cent to close at 45 kobo per share.
In the week, the All-Share Index (ASI) and market capitalisation appreciated by 7.46 per cent to close the week at 36,804.75 points and N19.236 trillion respectively. Similarly, all other indices finished higher while the ASeM and NSE Growth indices closed flat.
On the activity chart, 1.9 billion shares worth N17.7 billion were traded in 20,660 deals during the week in contrast to the 2.3 billion shares valued at N21.0 billion traded the previous week in 23,722 deals.
It was gathered that the financial services industry led the activity chart with 1.5 billion shares valued at N8.4 billion traded in 10,834 deals, contributing 78.65 per cent and 47.52 per cent to the total equity turnover volume and value respectively.
The consumer goods sector followed with 107.0 million shares worth N2.4 billion in 3,447 deals, while the services sector closed with a turnover of 74.8 million shares worth N191.8 million in 448 deals.
Further analysis showed that Jaiz Bank, FBN Holdings and Niger Insurance were the most active with 761.9 million shares worth N1.5 billion in 1,395 deals, contributing 40.25 per cent and 8.32 per cent to the total equity turnover volume and value respectively.
By Aduragbemi Omiyale
The ex-depot prices of the two major petroleum products in the country, Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (Diesel), have been slashed by Dangote Petroleum Refinery.
The company, in a statement on Wednesday, disclosed that while petrol is now N1,165 per litre, diesel is now N1,570 per litre.
The energy firm said it slashed the prices to reaffirm its commitment to providing affordable, high-quality petroleum products to the Nigerian market.
The latest cut in the price of PMS represents N50, as it was previously sold to marketers at N1,215 per litre, while diesel witnessed an N80 reduction, as it was formerly being sold at N1,650 per litre.
Dangote Refinery stated that the downward price review reflects its ongoing efforts to enhance energy affordability, improve access to refined petroleum products, and support economic activities across Nigeria, saying it remains committed to ensuring stable supply while leveraging operational efficiencies to deliver value to consumers, businesses, and stakeholders.
As Africa’s largest refinery, Dangote Petroleum Refinery continues to play a pivotal role in strengthening Nigeria’s energy security, reducing reliance on imports, and supporting the nation’s economic development through the supply of world-class petroleum products.
The company reaffirmed its dedication to contributing to the growth of the Nigerian economy and passing on the benefits of improved operational efficiencies to consumers whenever market conditions permit.
By Adedapo Adesanya
Dangote Petroleum Refinery is preparing to raise about $5 billion through an initial public offering (IPO) expected to conclude in October, in what could become the largest stock market listing in Africa’s history.
The company has already submitted an initial application to the Securities and Exchange Commission (SEC), with approval expected in the coming weeks. Once authorised, the refinery is expected to release its prospectus in September ahead of the public offer.
The primary listing will be on the Nigerian Exchange (NGX) Limited, although investors across Africa are expected to participate through structured investment instruments rather than a dual listing.
The proceeds will be used to expand the capacity of the 700,000-barrels-per-day refinery in Lagos and possibly support plans to replicate the project in Kenya as Dangote seeks to deepen Africa’s energy independence.
The proposed IPO comes after the refinery benefited from increased demand for refined products during the recent Iran conflict, supplying jet fuel across Africa and into Western Europe as global shortages disrupted markets.
As per Reuters, stock exchanges in South Africa, Kenya, Egypt, Ghana and Rwanda have held discussions with advisers to the transaction as interest in the offering continues to build across the continent.
Kenya alone could account for as much as $500 million of the targeted capital raise, driven largely by demand from institutional investors, including pension funds, the publication reported.
While the company is targeting a $5 billion raise, the final amount will depend on the outcome of the SEC’s review. If achieved, the offering would represent more than four per cent of the Nigerian Exchange’s current market capitalisation.
The IPO follows a $2.5 billion private placement completed last month, in which a six per cent stake in the refinery was sold, implying a valuation of about $40 billion.
That valuation, however, would place the refinery well above several listed global refining companies. Turkey’s Tupras, which operates a similar combined refining capacity across four facilities, has a market value of roughly $12 billion, while US-listed HF Sinclair, with a comparable processing capacity, is valued at around $16 billion.
Although the NGX generally requires companies on its main board to maintain a minimum free float of 20 per cent, there have been exceptions. Dangote Cement, for instance, currently has a free float of just over 12 per cent.
The publication also reported that investors outside Nigeria are likely to gain exposure through instruments such as global depositary receipts or exchange-traded products linked to the Nigerian-listed shares, rather than through a cross-listing on other African exchanges.
The founder of the 700,000-barrels-per-day capacity plant, Mr Aliko Dangote, said in April that the refinery aims to increase production capacity to 1.4 million barrels per day.
Mr Dangote is also pursuing plans to build another refinery in Lamu along Kenya’s coast in partnership with other East African governments, although it remains unclear whether part of the IPO proceeds will be allocated to that project valued at an estimated $17 billion.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rallied by 0.89 per cent on Tuesday, August 4 amid renewed buying interest in unlisted stocks.
During the session, the market capitalisation added N24.07 billion to end at N2.739 trillion compared with Tuesday’s N2.715 trillion, while the NASD Security Index (NSI) gained 40.11 points to quote at 4,563.96 points compared with the preceding day’s 4,523.85 points.
The NASD OTC Exchange ended the trading session with two price losers and three gainers, led by Central Securities Clearing System (CSCS) Plc, which chalked up N7.80 to close at N119.80 per unit versus the previous session’s N112.00 per unit. Afriland Properties Plc increased its value by N1.27 to N23.95 per share from N22.68 per share, and Nitrox Industrial Gases Plc expanded by N1.15 to N21.15 per unit from N20.00 per unit.
On the flip side, FrieslandCampina Wamco Nigeria Plc slid by N8.64 to sell at N144.00 per share compared with the previous day’s N152.64 per share, and 11 Plc dipped by 1 Kobo to end at N225.00 per unit, in contrast to Monday’s closing price of N225.01 per unit.
Tuesday’s trading data showed that the volume of securities rose by 9.0 per cent to 1.6 million units from 1.5 million units, and the number of deals climbed by 6.5 per cent to 33 deals from 31 deals, while the value of securities dropped by 26.9 per cent to N47.6 million from N65.2 million.
At the close of trades, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 76.9 million units exchanged for N5.5 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date with 3.4 billion units transacted for N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
