Economy
NGX Expands by 0.21% as S&P Upgrades Nigeria’s Outlook
By Dipo Olowookere
The first trading session of the new week on the floor of the Nigerian Exchange (NGX) Limited finished on a positive note by Monday after it closed higher by 0.21 per cent.
The NGX posted the growth yesterday following renewed bargain-hunting in some banking and energy equities trading at prices that give room for appreciation in the coming days.
This was boosted by news over the weekend that a global rating organisation, S&P Ratings, has upgraded Nigeria’s outlook to stable from negative.
Investors reacted to this latest development, showing confidence in the fiscal reforms of President Bola Tinubu.
The ratings agency stated in a statement issued last Friday that, “Nigeria’s newly elected government has moved quickly to implement a series of fiscal and monetary reforms, which we believe will gradually benefit public finances and the balance of payments.”
Business Post reports that investors went to the equity market with this S&P rating, causing the banking space to grow by 0.81 per cent and the energy counter to jump by 0.12 per cent, offsetting the losses printed by the three other key sectors.
The insurance index depreciated yesterday by 1.16 per cent, the consumer goods industry went down by 0.05 per cent, and the industrial goods sector slumped by 0.01 per cent.
The All-Share Index (ASI) was up during the trading day by 138.72 points to 65,336.80 points from 65,198.08 points, and the market capitalisation increased by N75 billion to N35.555 trillion from N35.480 trillion.
The market breadth was flat on Monday, as the stock exchange finished with 25 price gainers and 25 price losers, with investors remaining cautious of happenings in the country.
Enamelware closed the session as the best-performing stock after it added 9.86 per cent to its value to close at N19.50. Wema Bank gained 9.77 per cent to trade at N4.72, University Press improved by 9.73 per cent to N2.48, Sunu Assurances expanded by 9.68 per cent to N1.02, and GlaxoSmithKline rose by 9.55 per cent to N9.75.
Conversely, Omatek declined by 8.82 per cent to 31 Kobo, Prestige Assurance shed 7.84 per cent to 47 Kobo, McNichols depleted by 7.35 per cent to 63 Kobo, Cornerstone Insurance lost 7.22 per cent to quote at 90 Kobo, and Coronation Insurance dropped 5.97 per cent to sell at 63 Kobo.
Yesterday, investors traded 334.3 million shares valued at N3.9 billion in 6,940 deals compared with the 363.2 million shares worth N6.1 per cent traded in 6,644 deals last Friday, showing a rise in the number of deals by 4.46 per cent, and a decline in the trading volume and value by 7.96 per cent, and 36.07 per cent apiece.
After trading 55.1 million stocks worth N197.3 million, Sterling Bank was on top of the activity chart on Monday. FCMB traded 28.3 million equities valued at N173.8 million, Fidelity Bank exchanged 18.8 million shares worth N150.9 million, Japaul transacted 17.4 million stocks valued at N17.0 million, and Access Holdings sold 17.1 million shares for N296.6 million.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 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 billion.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
By Aduragbemi Omiyale
The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.
In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.
However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.
In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.
Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.
Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.
“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.
“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.
His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.
“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.
“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”
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