Economy
NDEP, 3 Others Shrink NASD Market Cap by N3.5bn
By Adedapo Adesanya
Four securities admitted on the trading platform of the NASD Over-the-Counter (OTC) Securities Exchange depreciated on Wednesday.
The stocks depressed the total value of equities on the exchange by 0.68 per cent or N3.5 billion at close of transactions yesterday to N514.80 billion from the previous N518.30 billion.
Data from the exchange showed that the benchmark index of the unlisted securities market, NASD Unlisted Security Index (NSI), was also weakened by these four stocks by 0.68 per cent or 4.77 points to 700.82 points from 705.59 points of Tuesday.
These depressing securities were led by the Niger Delta Exploration and Production (NDEP) Plc, which lost N16.18 to close at N273.82 per share in contrast to the preceding day’s N290 per share.
Second on the list was Afriland Properties Plc, which dropped 20 kobo to end the day at N1.98 per share compared to N2.18 per share of the previous session.
in addition, FrieslandCampina WAMCO Nigeria Plc lost 7 kobo to close at N123.27 per share versus N123.34 per share, while UBN Properties shed 4 kobo to end the session at N1.4 per share as against the prior day’s N1.44 per share.
On the activity chart, things pointed south as the total volume of securities traded by investors on Wednesday dropped 3.2 per cent to 405,530 units from the 419,121 units traded on Tuesday.
These transactions came from the 19 deals executed during the session at the exchange compared with the previous day’s 10 deals.
FrieslandCampina WAMCO Nigeria Plc accounted for nine deals; NDEP Plc did four deals, Central Securities Clearing Systems (CSCS) Plc had three deals; Afriland Properties Plc recorded two deals; and UBN Properties Plc with one.
There was also a rise in the value of shares traded on Wednesday as investors traded stocks worth N19.9 million. At the previous day, securities valued at N17.1 million exchanged hands, indicating a 16.5 per cent increase.
ARM Life Plc closed the session as the company with the highest number of traded stocks (year-to-date) with 7.4 billion units of its shares worth N4.6 billion. CSCS Plc was in second place with 199.6 million units worth N2.7 billion, while Food Concept Plc held the third position with 125 million units of its shares worth N88 million.
ARM Life Plc also finished as the firm with the highest trading value (year-to-date). The insurance company has sold 7.4 billion units of its securities worth N4.6 billion, while CSCS Plc has transacted 199.6 million units for N2.7 billion, with NDEP Plc selling 8.4 million units of its securities valued at N2.6 billion.
Economy
Again, OPEC Cuts 2024, 2025 Oil Demand Forecasts
By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries (OPEC) has once again trimmed its 2024 and 2025 oil demand growth forecasts.
The bloc made this in its latest monthly oil market report for December 2024.
The 2024 world oil demand growth forecast is now put at 1.61 million barrels per day from the previous 1.82 million barrels per day.
For 2025, OPEC says the world oil demand growth forecast is now at 1.45 million barrels per day, which is 900,000 barrels per day lower than the 1.54 million barrels per day earlier quoted.
On the changes, the group said that the downgrade for this year owes to more bearish data received in the third quarter of 2024 while the projections for next year relate to the potential impact that will arise from US tariffs.
The oil cartel had kept the 2024 outlook unchanged until August, a view it had first taken in July 2023.
OPEC and its wider group of allies known as OPEC+ earlier this month delayed its plan to start raising output until April 2025 against a backdrop of falling prices.
Eight OPEC+ member countries – Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman – decided to extend additional crude oil production cuts adopted in April 2023 and November 2023, due to weak demand and booming production outside the group.
In April 2023, these OPEC+ countries decided to reduce their oil production by over 1.65 million barrels per day as of May 2023 until the end of 2023. These production cuts were later extended to the end of 2024 and will now be extended until the end of December 2026.
In addition, in November 2023, these producers had agreed to voluntary output cuts totalling about 2.2 million barrels per day for the first quarter of 2024, in order to support prices and stabilise the market.
These additional production cuts were extended to the end of 2024 and will now be extended to the end of March 2025; they will then be gradually phased out on a monthly basis until the end of September 2026.
Members have made a series of deep output cuts since late 2022.
They are currently cutting output by a total of 5.86 million barrels per day, or about 5.7 per cent of global demand. Russia also announced plans to reduce its production by an extra 471,000 barrels per day in June 2024.
Economy
Aradel Holdings Acquires Equity Stake in Chappal Energies
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.
Economy
Afriland Properties Lifts NASD OTC Securities Exchange by 0.04%
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.
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