Economy

Inflation to Drop in June to 10.94% from 11.61%—FSDH Analysts

Published

7 years ago

08/07/2018

By Dipo Olowookere

Analysts at FSDH Research have predicted that the year-on-year inflation rate for the month of June 2018 would moderate further to 10.94 percent from the 11.61 percent recorded in May 2018.

According to its Inflation Watch released last Thursday, the drop in the inflation rate would reflect the base effect in the Composite Consumer Price Index (CCPI) from the previous year and slower rate of increase in prices.

Based on the calendar on its website, the National Bureau of Statistics (NBS) is due to release the inflation rate for the month of June on Friday, July 13, 2018.

FSDH Research said in its report obtained by Business Post that it notes that consumer prices increased in June but at a lower rate than the increases recorded in May.

It noted that the prices of most of the food items monitored in June 2018 increased, leading to a 1.10 percent increase in its Food and Non-Alcoholic Index. This Index increased year-on-year by 12.43 percent, up from 245.10 points recorded in June 2017.

The leading investment firm also observed an increase in the prices of Transport and Housing, Water, Electricity, Gas & Other Fuels divisions between May and June 2018.

According to the Food Price Index (FPI) published last week by the Food and Agriculture Organization (FAO) for the month of June 2018 shows that the Index averaged 173.7 points, 1.3 percent lower than the value for May 2018, and representing the first month-on-month decline in 2018.

The FAO explained that the rising tensions regarding international trade relations among large economies have weakened prices.

The FAO Cereal Price Index was down by 3.7 percent, but 8 percent higher than a year ago, with the drop driven largely by relatively sharp falls in maize and wheat prices, while rice prices increased.

The FAO Dairy Price Index also dropped by 0.90 percent between May and June; driven by the decrease in cheese prices, more than offsetting a rise in skim milk powder prices, while those of butter and whole milk powder remained unchanged.

The FAO Vegetable Oil Price Index was also down by 3 percent, primarily driven by a decline in the prices of palm oil, soybean and sunflower oils occasioned by slow global imports demand and large inventories.

However, the FAO Sugar Index increased by 1.2 percent from May, making it the first increase after six months of consecutive declines. The FAO Meat Index was also marginally up by 0.3 percent driven by the increase in the prices for ovine and pig meat.

FSDH Research said its analysis indicates that the value of the Naira appreciated at the Nigerian Autonomous Foreign Exchange (NAFEX) market in June 2018. The value of the Naira appreciated by 0.15 percent to close at $/N361.08k at the NAFEX market at the end of June.

The general decline in the international prices of food coupled with the appreciation in the value of the Naira muted the prices of imported consumer goods in Nigeria between the two months under review.

Economy

Nigerian Exchange Tumbles 0.46% on Profit-Taking

Published

18 hours ago

10/05/2025

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited suffered its first loss this week with a 0.46 per cent decline on Friday, influenced by profit-taking.

The market was under selling pressure yesterday, with all the key sectors of the bourse closing in red when the gong was struck by 2:30 pm.

The commodity index was down by 1.94 per cent, the insurance sector depreciated by 0.22 per cent, the industrial goods space lost 0.18 per cent, the consumer goods counter went down by 0.05 per cent, the energy industry tumbled by 0.02 per cent, and the banking sector fell by 0.01 per cent.

As a result, the All-Share Index (ASI) contracted by 498.56 points to 108,733.40 points from 109,231.96 points and the market capitalisation retreated by N314 billion to N68.339 trillion from N68.653 trillion.

The market participants traded 459.2 million equities valued at N11.2 billion in 15,723 deals on Friday versus the 554.1 million equities worth N14.4 billion traded 16,704 deals in the preceding session, implying a decrease in the trading volume, value, and number of deals by 17.13 per cent, 22.22 per cent, and 5.87 per cent apiece.

Tantalizers traded 101.4 million shares for N237.3 million, GTCO exchanged 51.3 million equities worth N3.5 billion, Access Holdings transacted 45.2 million stocks valued at N975.3 million, Zenith Bank sold 21.8 million shares worth N1.1 billion, and Sterling Holdings transacted 15.5 million equities valued at N91.8 million.

The heaviest price loser was Transcorp Power with a decline of 9.98 per cent to settle at N328.50, Haldane McCall fell by 9.57 per cent to N4.25, Meyer lost 9.09 per cent to trade at N8.00, Regency Alliance dropped 6.78 per cent to finish at 55 Kobo, and Sunu Assurances crumbled by 6.73 per cent to N4.99.

On the flip side, ABC Transport chalked up 10.00 per cent to quote at N2.86, Sterling Holdings also expanded by 10.00 per cent to close at N6.05, Chellarams improved by 9.94 per cent to N10.40, Academy Press gained 9.92 per cent to finish at N4.32, and Red Star Express appreciated by 9.90 per cent to N5.55.

Business Post reports that a total of 34 stocks appreciated, while 32 stocks depreciated, indicating a positive market breadth index and bullish investor sentiment despite the loss recorded by Customs Street during the session.

Economy

CSCS, Three Others Weaken Unlisted Securities Market by 0.46%

Published

19 hours ago

10/05/2025

Adedapo Adesanya

By Adedapo Adesanya

Four stocks weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.46 per cent on Friday, May 9, bringing down the market capitalisation by N9.02 billion to N1.935 trillion from N1.944 trillion quoted at the preceding session, as the NASD Unlisted Security Index (NSI) dropped 15.42 points to settle at 3,304.74 points, in contrast to the 3,320.16 points recorded a day earlier.

Central Securities Clearing Systems (CSCS) went down by N1.28 during the trading session to finish at N22.60 per share versus Thursday’s value of N23.88 per share, FrieslandCampina Wamco Nigeria Plc lost N1.00 to close at N40.03 per unit compared with previous closing value of N41.03 per unit, Geo-Fluids Plc depreciated by 11 Kobo to end at N1.81 per share versus the previous session’s N1.92 per share, and UBN Property Plc shrank by 4 Kobo to trade at N1.96 per unit, in contrast to the N2.00 per unit it was sold in the preceding day.

However, the price of Impresit Bakolori Plc went up by 11 Kobo yesterday to close at N1.27 per share versus the previous day’s price of N1.16 per share.

The volume of transactions went down on Friday by 33.1 per cent to 231.6 million units from the 346.3 million units recorded a day earlier, the value of trades decreased by 31.3 per cent to N606.4 million from N882.8 million, while the number of deals increased by 256.3 per cent to 57 deals from 16 deals.

At the close of trading activities, Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 533.9 million units worth N520.9 million, followed by Geo-Fluids Plc with 265.8 million units valued at N469.5 million, and Okitipupa Plc with 153.6 million units sold for N4.9 billion.

Similarly, Okitipupa Plc was the most traded stock by value (year-to-date) with 153.6 million units worth N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 19.9 million units valued at N765.5 million, and Impresit Bakolori Plc with 533.9 million units sold for N520.9 million.

Economy

Naira Maintains Stability against Dollar at Official Market

Published

19 hours ago

10/05/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira was relatively flat against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, May 9, though it marginally shed 0.2 per cent or 7 Kobo to settle at N1,609.64/$1, in contrast to the preceding day’s N1,609.57/$1.

Also, the Nigerian Naira traded flat against the Pound Sterling and the Euro in the official market during the session, remaining unchanged at N2,145.48/£1 and N1,818.42/€1, respectively.

In the same vein, the value of the domestic currency to the Dollar remained unchanged in the parallel market yesterday at N1,625/$1, according to data obtained by Business Post.

As for the cryptocurrency market, it remained positive as President Donald Trump announced a comprehensive trade deal with the UK and the cumulative inflows into the spot exchange-traded funds (ETFs) hit a record high above $40 billion.

According to market analysts, this has led to substantial liquidations of bearish short positions, or leveraged plays aimed at profiting from price losses. A position is liquidated or forced closed when the trader’s account balance falls below the required margin level, often due to adverse price movements. This leads the exchange to close the position to prevent further losses automatically.

Meanwhile, the US and China are said to be working on a trade deal but many are skeptical of a deal being reached this month.

Dogecoin (DOGE) appreciated by 7.6 per cent to sell at $0.2229, Litecoin (LTC) improved its value by 5.5 per cent to quote at $103.51, Binance Coin (BNB) rose by 4.6 per cent to $663.22, and Solana (SOL) recorded a 3.6 per cent growth to sell at $171.52.

Further, the price of Ripple (XRP) went up by 1.4 per cent $2.37, Ethereum (ETH) jumped by 0.8 per cent to sell for $2,366.49, and Cardano (ADA) gained 0.7 per cent to trade at $0.7952, while Bitcoin (BTC) went down by 0.3 per cent to $103,670.89, with the US Dollar Tether (USDT) and the US Dollar Coin (USDC) trading flat at $1.00 each.