Economy
NGX Further Gives up 0.38% as Failed Coup Rumour Unsettles Investors
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited failed to print its first gain this week as it further crashed by 0.38 per cent on Thursday.
A look at the data showed that investors are treading cautiously as more information is beginning to emerge on the alleged botched coup.
It was reported that 16 military officers were arrested for attempting to remove President Bola Tinubu from office. The military quickly refuted this, saying the persons apprehended were not plotting a coup.
Yesterday, a reputable news platform, Premium Times, published the names of officers believed to have been involved in the alleged act, which is termed treasonable. There were also reports of a military raid on the residence of a relative to a former Governor of Bayelsa State.
These developments, coupled with the silence of the government on the matter, unsettled traders, who are liquidating their shares to be safe. This is already taking its toll on the stock market, which is becoming weaker by the day because of panic sell-offs.
Apart from the banking space, which gained 0.06 per cent yesterday, every other key sector of Customs Street was in red at the close of transactions.
The insurance counter gave up 1.27 per cent, the consumer goods industry depreciated by 1.23 per cent, the commodity index lost 0.52 per cent, the energy sector shrank y 0.32 per cent and the industrial goods landscape fell by 0.25 per cent.
Consequently, the All-Share Index (ASI) retreated by 584.32 points to 153,676.66 points from 154,260.98 points and the market capitalisation moderated by N371 billion to N97.543 trillion from N97.914 trillion.
A total of 795.9 million stocks valued at N35.1 billion exchanged hands in 28,944 deals during the session compared with the 452.9 million stocks worth N14.8 billion traded in 27,654 deals at midweek, showing an uptick in the trading volume, value, and number of deals by 75.73 per cent, 137.16 per cent, and 4.67 per cent, respectively.
Wema Bank was the busiest equity at the session with 305.7 million units sold for N5.7 billion, as GTCO transacted 97.9 million units worth N8.7 billion, Aso Savings traded 75.4 million units valued at N70.9 million, Chams exchanged 24.6 million units worth N87.0 million, and AIICO Insurance traded 16.2 million units valued at N64.2 million.
Business Post reports that 20 shares were on the gainers’ log on Thursday and 39 shares ended on the losers’ table, representing a negative market breadth index and weak investor sentiment.
The trio of Cadbury, Chams, and International Breweries depleted by 10.00 per cent each to sell for N62.55, N3.51, and N12.60 apiece, as Learn Africa lost 9.92 per cent to settle at N5.90, and NAHCO shed 9.49 per cent to close at N113.00.
On the flip side, Oando grew by 9.99 per cent to N46.80, Aso Savings expanded by 9.30 per cent to 94 Kobo, AIICO Insurance chalked up 5.26 per cent to quote at N4.00, May and Baker increased by 5.00 per cent to N17.85, and Deap Capital surged by 4.97 per cent to N1.90.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the south for the fourth consecutive session after it shed 1.18 per cent on Friday, March 13.
The unlisted securities market recorded a loss despite closing without a price decliner, and ending with two price gainers led by Geo Fluids Plc, which gained 1o Kobo to sell at N3.10 per share compared with the previous day’s N3.00 per share. Industrial and General Insurance (IGI) Plc appreciated during the session by 2 Kobo to trade at 54 Kobo per unit versus Thursday’s closing price of 52 Kobo per unit.
When the market closed for the day, the market capitalisation lost N29.83 billion to close at N2.489 trillion compared with the N2.519 trillion it finished a day earlier, and the NASD Unlisted Security Index (NSI) crashed by 49.84 points to 4,160.46 points from 4,210.31 points.
Market activity improved yesterday, as the volume of transactions rose 179.5 per cent to 10.4 million units from 3.7 million units, but the value of trades declined by 68.4 per cent to N29.9 million from N95.0 million, while the number of deals weakened by 11.5 per cent to 46 deals from 52 deals.
Central Securities Clearing Systems (CSCS) Plc remained the most active stock by value on a year-to-date basis with 38.4 million units worth N2.4 billion, Okitipupa Plc followed with 6.4 million units traded at N1.1 billion, and FrieslandCampina Wamco Nigeria Plc transacted 6.3 million units for N584.3 million.
Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.1 billion units valued at N415.6 million, trailed by Geo-Fluids Plc with 130.8 million units valued at N504.5 million, and CSCS Plc with 38.4 million units worth N2.4 billion.
By Adedapo Adesanya
The Naira continued to claw back some gains against the Dollar in the different segments of the foreign exchange (FX) market, as its value was strengthened on Friday.
In the black market, it gained N10 against the United States Dollar yesterday to close at N1,400/$1 compared with the preceding day’s rate of N1,410/$1, and at the GTBank forex counter, it chalked up N6 to close at N1,385/$1, in contrast to the N1,391/$1 it was traded a day earlier.
Similarly, in the Nigerian Autonomous Foreign Exchange Market (NAFEX), it appreciated against the greenback during the session by N5.28 or 0.38 per cent to quote at N1,366.23/$1 versus Thursday’s closing price of N1,371.51/$1.
It also improved its value against the Pound Sterling in the official market on Friday by N21.81 to settle at N1,812.99/£1 compared with the previous day’s N1,834.80/£1, and gained N13.86 against the Euro to sell at N1,568.03/€1 versus N1,581.89/€1.
Pressure eased further on the FX market as the Central Bank of Nigeria (CBN) continued interventionist operations this week, selling Dollars to banks to boost liquidity after a $500 million boost last week.
This was complemented by inflows from foreign investors, exporters and non-bank corporates, among others, while Nigeria’s gross external reserves remained above $50 billion, the highest since 2009.
The Governor of the apex bank, Mr Yemi Cardoso, also eased fears of a Naira devaluation, saying the country’s financial system has been strengthened by reforms.
Regardless, external pressure looms as the US Dollar strengthened globally due to its war with Iran, now ongoing for three weeks.
Meanwhile, the cryptocurrency market was largely down as traders and investors continue to align with current realities.
The market is adapting to the conflict in real time. Early in the war, every headline produced an outsized reaction because nobody could price the tail risk. Now, traders have a framework where strikes happen, oil spikes and bitcoin dips only to recover again.
Cardano (ADA) depreciated by 3.8 per cent to $0.2623, Dogecoin (DOGE) lost 1.7 per cent to finish at $0.0948, Ripple (XRP) slumped 1.5 per cent to $1.39, Solana (SOL) dropped 1.4 per cent to sell for $87.33, Binance Coin (BNB) went down by 1.3 per cent to $653.58, Bitcoin (BTC) declined by 1.1 per cent to $70,670.63, and Ethereum (ETH) decreased by 0.9 per cent to $2,078.78.
However, TRON (TRX) appreciated by 1.7 per cent to $0.2941, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Adedapo Adesanya
The price of the major crude oil grade, Brent crude oil, closed above $100 on Friday for the second consecutive session, as the Iran war heads toward its third week, with oil tanker traffic through the Strait of Hormuz still effectively at a standstill.
It gained 2.67 per cent or $2.68 during the trading day to close at $103.14 per barrel, while the US West Texas Intermediate (WTI) crude oil grade appreciated by 3.11 per cent or $2.98 to settle at $98.71 per barrel.
Brent futures were up about 10 per cent for the week following the 27 per cent rise seen last week, which marked the biggest weekly gain in oil prices since the COVID-19 pandemic in 2020. WTI futures, which saw their best week since 1983 last week, ended the week more than 8 per cent higher.
US President Donald Trump said American forces launched a major bombing raid on Iran’s strategic Kharg Island, targeting military facilities on the key Persian Gulf outpost while warning Iran that its vital oil infrastructure could be destroyed if shipping in the Strait of Hormuz is disrupted.
The terminal accounts for roughly 90 per cent of Iranian crude shipments, loading millions of barrels per day onto tankers bound largely for Asian markets.
The US and Israel’s strikes in the conflict have largely targeted Iranian military and nuclear infrastructure. Oil facilities elsewhere in Iran have been hit, but Kharg’s massive storage tanks, jetties, and pipelines had remained untouched until the latest strike.
Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep fighting in a message delivered via state television.
There have been a number of attacks on foreign ships in or near the Strait, feeding into concerns that a prolonged war could translate to a global economic shock.
Prices are rising despite the US and its allies rolling out some measures to keep a lid on energy costs.
The International Energy Agency (IEA) has agreed to release 400 million stockpiled barrels, the largest such action in history.
The US has issued a 30-day waiver for India to purchase sanctioned oil from Russia. President Donald Trump is considering loosening rules under the Jones Act that require American ships to transport goods between domestic ports, including oil and gas, in an effort to lower costs.
Traders are continuing to monitor developments in the Middle East.
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