Economy
Market Down 1.24% as Investors Sell Off After Tinubu’s Remarks
By Dipo Olowookere
Trading activities on the floor of the Nigerian Exchange (NGX) Limited turned bearish on Monday following renewed profit-taking by investors.
The local bourse closed lower by 1.24 per cent on the first trading session of the week due to fresh selling pressure triggered by mixed feelings about the macroeconomic environment.
Investors were not too impressed with Nigeria’s outing at the G20 Summit in India.
President Bola Tinubu was invited to the programme by the Indian Prime Minister, Mr Narendra Modi. He disclosed that the group needed Nigeria because it is incomplete without the presence of the largest economy in Africa as a member.
“Nigeria is poised, able and willing to be a major player in this family of the G-20 and in shaping a new world, without whom the family will remain incomplete,” Mr Tinubu said.
The G20 is a group of the 20 most industrialised countries in the world, accounting for over 70 per cent of the global gross domestic product (GDP).
Back at the stock market, traders were not impressed by Mr Tinubu’s comments, and they sold off some of the equities in their portfolios across the sectors, leading to the decline in the All-Share Index (ASI) by 847.16 points to 67,296.18 points from 68,143.34 points, and a fall in the market capitalisation by N463 billion to N36.832 trillion from N37.295 trillion.
Business Post reports that the banking, insurance, consumer goods, industrial goods, and energy counters went down by 6.11 per cent, 2.07 per cent, 1.45 per cent, 0.28 per cent, and 0.10 per cent apiece.
This left the bourse with 16 price gainers and 43 price losers, indicating a weak investor sentiment and a negative market breadth index.
eTranzact, Secure Electronic Technology and NASCON led the laggards’ group after they shed 10.00 per cent each to settle at N9.00, 27 Kobo, and N52.20 apiece, Dangote Sugar lost 9.98 per cent to close at N57.75, and Learn Africa depreciated by 9.86 per cent to quote at N3.29.
Conversely, Northern Nigerian Flour Mills topped the advancers’ table after it improved by 9.96 per cent to N13.25, Oando increased by 9.74 per cent to N8.45, CWG grew by 9.00 per cent to N6.30, NPF Microfinance Bank appreciated by 8.20 per cent to N1.98, and RT Briscoe appreciated by 7.32 per cent to 44 Kobo.
Yesterday, traders bought and sold 520.1 million shares worth N8.3 billion in 9,914 compared with the 483.5 million shares valued at N8.3 billion traded in 6,660 deals last Friday, showing that the trading volume and the number of deals rose by 7.57 per cent and 48.86 per cent apiece, and the trading value closed flat.
UBA was the busiest stock for selling 73.9 million units valued at N1.1 billion, Access Holdings exchanged 57.7 million units worth N957.3 million, Transcorp traded 52.7 million units valued at N331.5 million, Zenith Bank transacted 43.1 million units worth N1.5 billion, and FBN Holdings sold 26.6 million units for N480.8 million.
By Aduragbemi Omiyale
A minority equity stake in Chappal Energies Mauritius Limited has been acquired by a Nigerian energy firm, Aradel Holdings Plc.
This deal came a few days after Chappal Energies purchased a 53.85 per cent equity stake in Equinor Nigeria Energy Company Limited (ENEC).
Chappal Energies went into the deal with Equinor to take part in the oil and gas lease OML 128, including the unitised 20.21 per cent stake in the Agbami oil field, operated by Chevron.
Since production started in 2008, the Agbami field has produced more than one billion barrels of oil, creating value for Nigerian society and various stakeholders.
As part of the deal, Chappal will assume the operatorship of OML 129, which includes several significant prospects and undeveloped discoveries (Nnwa, Bilah and Sehki).
The Nnwa discovery is part of the giant Nnwa-Doro field, a major gas resource with significant potential to deliver value for Nigeria.
In a separate transaction, on July 17, 2024, Chappal and Total Energies sealed an SPA for the acquisition by Chappal of 10 per cent of the SPDC JV.
The relevant parties to this transaction are working towards closing out this transaction and Ministerial Approval and NNPC consent to accede to the Joint Operating Agreement have been obtained.
“This acquisition is in line with diversifying our asset base, deepening our gas competencies and gaining access to offshore basins using low-risk approaches.
“We recognise the strategic role of gas in Nigeria’s energy future and are happy to expand our equity holding in this critical resource.
“We are committed to the cause of developing the significant value inherent in the assets, which will be extremely beneficial to the country.
“Aradel hopes to bring its proven execution competencies to bear in supporting Chappal’s development of these opportunities,” the chief executive of Aradel Holdings, Mr Adegbite Falade, stated.
By Adedapo Adesanya
Afriland Properties Plc helped the NASD Over-the-Counter (OTC) Securities Exchange record a 0.04 per cent gain on Tuesday, December 10 as the share price of the property investment rose by 34 Kobo to N16.94 per unit from the preceding day’s N16.60 per unit.
As a result of this, the market capitalisation of the bourse went up by N380 million to remain relatively unchanged at N1.056 trillion like the previous trading day.
But the NASD Unlisted Security Index (NSI) closed higher at 3,014.36 points after it recorded an addition of 1.09 points to Monday’s closing value of 3,013.27 points.
The NASD OTC securities exchange recorded a price loser and it was Geo-Fluids Plc, which went down by 2 Kobo to close at N3.93 per share, in contrast to the preceding day’s N3.95 per share.
During the trading session, the volume of securities bought and sold by investors increased by 95.8 per cent to 2.4 million units from the 1.2 million securities traded in the preceding session.
However, the value of shares traded yesterday slumped by 3.7 per cent to N4.9 million from the N5.07 million recorded a day earlier, as the number of deals surged by 27.3 per cent to 14 deals from 11 deals.
Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units sold for N5.3 billion.
By Adedapo Adesanya
The Naira continued to appreciate on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), gaining 0.7 per cent or N10.23 on Tuesday, December 10 to trade at N1,542.27/$1 compared with the preceding day’s N1,552.50/$1.
The Central Bank of Nigeria (CBN)-backed Electronic Foreign Exchange Matching System (EFEMS) platform introduced to tackle speculation and improve transparency in Nigeria’s FX market has been attributed as the source of the Naira’s appreciation.
Speculators holding foreign currencies, particularly the US Dollar, have seen the value of their money drastically drop due to the appreciation of the local currency. This is forcing them to dump greenback into the system and take the domestic currency alternative- a move that has seen available FX increase.
Equally, the domestic currency improved its value against the Pound Sterling in the official market during the trading day by N6.81 to sell for N1,955.12/£1 compared with Monday’s closing price of N1,961.93/£1 and against the Euro, it gained N10.84 to close at N1,613.00/€1, in contrast to the previous day’s rate of N1,623.84/€1.
Data from the FMDQ Securities Exchange showed that the value of forex transactions significantly increased yesterday by $228.85 million or 257.2 per cent to $401.17 million from the preceding session’s $112.32 million.
However, in the parallel market, the Nigerian currency weakened against the US Dollar on Tuesday by N5 to settle at N1,625/$1 compared with the previous day’s value of N1,620/$1.
In the cryptocurrency market, Dogecoin (DOGE) lost 4.8 per cent to sell at $0.39116, Litecoin (LTC) depreciated by 3.3 per cent to trade at $110.25, Binance Coin (BNB) went south by 2.3 per cent to $681.44, Ethereum (ETH) dropped 1.6 per cent to finish at $3,671.08, and Cardano (ADA) slid by 0.5 per cent to $0.8837
Conversely, Ripple (XRP) jumped by 5.4 per cent to $2.23 amid a continued shift for the coin with its parent company seeing the benefits of a crypto-friendly regulatory environment for US-based companies.
XRP is closely related to Ripple Labs, a high-profile payments company targeted by the SEC in 2020 on allegations of selling the token as a security to U.S. investors. Ripple fully cleared a long-drawn court case in 2024.
Further, Solana (SOL) expanded by 0.8 per cent to $219.75, Bitcoin (BTC) grew by 0.4 per cent to $97,446.95, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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