Economy

Inflation to Drop Further to 15.84% in November—Analysts

Published

7 years ago

10/12/2017

By Dipo Olowookere

Analysts at FSDH Research have predicted that inflation rate for the month of November will further ease to 15.84 percent from 15.91 percent recorded in October.

In its Inflation Watch report released last Friday, FSDH Research explained that the expected marginal decline in the inflation rate was premised on a slower increase in the food and non-food divisions, compared with the previous month.

The October inflation rate was the ninth consecutive month of decrease in the headline inflation in 2017. Based on the data release calendar on the website of the National Bureau of Statistics (NBS), the stats office will release the inflation rate for the month of November 2017 on December 19, 2017.

The monthly Food Price Index (FPI) from the Food and Agriculture Organization (FAO) shows that the Index averaged 175.8 points. This is 0.46 percent lower than the revised value for October 2017, but 2.26 percent higher than the November 2016 figure.

According to the FAO, the sharp fall in the price of dairy products largely offset the increases recorded in the prices of sugar and vegetable oil. The FAO Dairy Price Index recorded the highest drop, dropping by 4.92 percent from October 2017. The FAO Meat Price Index was marginally down by 0.09 percent largely unchanged from the revised October value.

On the flip side, the FAO Sugar Price Index was up 4.53 percent, the highest level recorded in the last three months. The increase was supported by declining exports from Brazil.

The FAO Vegetable Oil Price Index was up by 1.24 percent. The rise in the Index mainly reflects higher prices for soy, rapeseed and sunflower oils. The FAO Cereal Price Index was up by 0.29 percent in November 2017 as a result of the increase in the prices of wheat and maize.

“Our analysis indicates that the value of the Naira depreciated at both the inter-bank and parallel markets. The Naira lost by 0.07 percent and 0.28 percent to close at $/N306.00 and $/N363.50 at both the inter-bank and parallel markets respectively.

“The drop in the international prices of food moderated the effect of the depreciation in the value of Naira on local prices.

The prices of most of the food items we monitored in November 2017 moderated downwards, while a few items recorded price appreciation. The movement in the prices of food items during the month resulted in 0.8 percent increase in our Food and Non-Alcoholic Index to 258.03 points.

“Our Food and Non-Alcoholic Index increased by 20.15 percent from 214.76 points in November 2016.

“We also noticed increase in the prices of Housing, Water, Electricity, Gas & Other Fuels divisions between October 2017 and November 2017.

“Our model indicates that the general price movement in the consumer goods and services in November 2017 increased the Composite Consumer Price Index (CCPI) to 244.81 points, representing a month-on-month increase of 0.73 percent.

“We estimate that the increase in the CCPI in November 2017 would produce an inflation rate of 15.84 percent lower than the 15.91 percent recorded in October 2017,” the report said.

Economy

MRS Oil, Heyden, Ardova to Sell Dangote Petrol at N970 Per Litre

Published

12 hours ago

19/01/2025

Dipo Olowookere

By Dipo Olowookere

The three major partners of the Dangote Refinery in the Lekki area of Lagos, MRS Oil Nigeria, Heyden and Ardova Plc, will retail premium motor spirit (PMS), otherwise known as petrol, at its stations across the country at N970 per litre.

This information was revealed by Dangote Refinery, owned by one of Africa’s richest businessmen, Mr Aliko Dangote.

The three independent oil marketers entered into a bulk-purchasing agreement with the oil facility, which has the capacity to refinery about 650,000 barrels of crude oil per day.

The deal, first sealed by MRS Oil, ensured that it retailed fuel at its petrol stations at N935 per cent litre.

However, last week, Dangote Refinery increased its ex-depot price from N899.50 per litre to N950 per litre due to a rise in the price of crude oil to $80 per litre in the global market from about $72 per barrel.

In a statement on Sunday made available to Business Post, Dangote Refinery said, “All our partners, including Ardova, Heyden, and MRS Holdings, will offer petrol to Nigerians at a retail price of N970 per litre nationwide.

“We have absorbed the increased logistics costs to guarantee uniform pricing across the 36 states of the federation and the Federal Capital Territory (FCT).”

Economy

NGX All-Share Index Jumps 0.17%

Published

2 days ago

18/01/2025

Dipo Olowookere

By Dipo Olowookere

A 0.17 per cent growth was recorded by the Nigerian Exchange (NGX) Limited on Friday, extending the stay of the local bourse in the positive territory.

This uptrend was maintained despite profit-taking in the banking sector, which left its index down by 0.23 per cent at the close of trading activities.

Business Post reports that the insurance industry expanded by 4.04 per cent during the session, the energy counter improved by 1.05 per cent, and the consumer goods space gained 0.58 per cent, while the industrial goods sector closed flat.

Consequently, the All-Share Index (ASI) went up by 170.62 points to 102,353.68 points from 102,183.06 points and the market capitalisation grew by N541 billion to N62.851 trillion from N62.310 trillion.

There were 34 price gainers and 22 price losers yesterday, indicating a positive market breadth index and strong investor sentiment.

The trio of Caverton, Livestock Feeds and Sovereign Trust Insurance appreciated by 10.00 per cent each during the session to quote at N2.20, N5.94, and N1.10, respectively, as Neimeth jumped by 994 per cent to N3.43, and Royal Exchange increased by 9.88 per cent to 89 Kobo.

On its part, Academy Press lost 9.74 per cent to close at N3.15, PZ Cussons declined by 9.09 per cent to N25.00, DAAR Communications weakened by 8.64 per cent to 74 Kobo, Transcorp Power shed 5.91 per cent to settle at N46.95, and Dangote Sugar fell by 4.94 per cent to N38.50.

A total of 327.8 million shares valued at N11.8 billion were traded in 11,905 deals on Friday versus the 472.2 million shares worth N16.7 billion transacted in 12,336 deals on Thursday, representing a decline in the trading volume, value, and number of deals by 30.58 per cent, 29.34 per cent and 3.49 per cent apiece.

Access Holdings recorded the highest sales with 49.1 million stocks sold for N1.2 billion, Fidelity Bank exchanged 20.4 million shares valued at N359.0 million, UBA traded 20.1 million equities worth N681.0 million, Oando transacted 14.8 million shares for N998.1 million, and Universal Insurance traded 13.8 million stocks worth N8.7 million.

Economy

NASD OTC Exchange Gains 0.26%

Published

2 days ago

18/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange extended its upward movement with a 0.26 per cent gain on Friday, January 17 amid renewed interest in unlisted stocks.

This raised the market capitalisation of the trading platform by N2.79 billion at the close of business to N1.075 trillion from the N1.072 trillion it closed in the preceding session.

In the same vein, the NASD Unlisted Security Index (NSI) went up by 8.08 points at the close of transactions to 3,111.91 points from the 3,103.83 points recorded at the previous session.

Yesterday, the volume of securities traded by investors went down by 606 per cent to 486,215 units from 1.2 million units, the value of shares shrank by 84.7 per cent to N2.8 million from N18.0 million, and the number of deals decreased by 65 per cent to 14 deals from the 33 deals carried out a day earlier.

In the final trading day of the week, there were three price gainers and one price loser, Geo-Fluids Plc, which lost 9 Kobo to finish at N4.70 per unit versus the preceding session’s price of N4.79 per unit.

On the flip side, Okitipupa Plc gained N3.60 to settle at N39.59 per share compared with the previous day’s N35.99 per share, Industrial and General Insurance (IGI) Plc added 3 Kobo to wrap at 36 Kobo per unit compared with the preceding session’s 33 Kobo per share, as FrieslandCampina Wamco Nigeria Plc improved its value by 49 Kobo to N39.65 per unit from N39.16 per unit.

At the close of business, FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 3.4 million units worth N134.9 million, trailed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and Afriland Properties Plc with 690,825 sold for N11.1 million.

The most active stock by volume (year-to-date) remained IGI Plc with 23.5 million units worth N5.3 million, followed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and FrieslandCampina Wamco Nigeria Plc with 3.4 million units sold for N134.9 million.