Nigerian Equities Rebound by 0.68% as Investors Trade 1.1b Shares
By Dipo Olowookere
The Nigerian Stock Exchange (NSE) rebounded on Tuesday after it went down at the close of business yesterday due to profit-taking.
But gains recorded by large-cap stocks lifted the market and left it in the green territory, closing 0.68 percent higher.
Nigerian Breweries led the 25 gaining stocks after increasing by N6.43k to settle for the day at N137.60k per share.
It was followed by Stanbic IBTC, which appreciated by N1.85k to close at N41.85k per share, and Dangote Cement, which went up by N1 to finish at N241 per share.
Other price gainers were CCNN, which rose by 43k to end at N9.40k, and the newly listed Global Spectrum Energy Services Plc, which appreciated by 26k to close at N5.51k per share.
However, it was a bad day for Mobil and 10 other equities, which recorded various price declines at the market on Monday. The oil stock fell by N5.40k to close at N162.50k per share.
Guinness Nigeria lost N1.42k to finish at N98.58k per share, while PZ Cussons depreciated by N1.15k to end at N22.72k per share.
Okomu Oil declined by 78k to finish at N67.22k per share, and Dangote Sugar went down by 26k to close at N17.55k per share.
The volume and value of shares transacted by investors rose today as a total of 1.1 billion equities exchanged hands on Tuesday in 4,089 deals worth N4.8 billion, compared with 942.7 million units valued at N4.8 billion traded in 3,868 deals on Monday.
The hike in the volume of traded stocks today was mainly influenced by the transactions recorded by WAPIC, which sold 655.4 million units worth N327.7 million.
Diamond Bank traded 68.2 million shares valued at N80.3 million, while Zenith Bank exchanged 62.7 million shares for N1.6 billion.
FBN Holdings transacted 49.9 million shares worth N346.5 million, and Tantalizers sold 43 million shares valued at N21.5 million.
A look at the market indicators showed that the All-Share Index (ASI) increased by 252.95 points to settle at 37,503.73 points, while the market capitalisation appreciated by N88.1 billion to close at N13.1 trillion.
NDEP Pulls Down Unlisted Stock Exchange by 0.08%
By Adedapo Adesanya
Niger Delta Exploration and Production (NDEP) Plc sank the NASD Over-the-Counter (OTC) Securities Exchange by 0.08 per cent on Thursday, June 1, rubbing off the gains posted by three other stocks on the platform.
The share price of NDEP Plc went down by N9.09 to N245.05 per unit from the N254.14 per unit it closed a day earlier.
As earlier stated, it suppressed the growth printed by the trio of FrieslandCampina Wamco Nigeria Plc, Central Securities Clearing System (CSCS) Plc, and Acorn Petroleum Plc.
FrieslandCampina Wamco Nigeria Plc grew by 20 Kobo to N70.20 per share from the previous session’s N70.00 per share, CSCS Plc added 8 Kobo to close at N14.00 per unit versus Wednesday’s value of N14.08 per unit, and Acorn Petroleum Plc gained 1 Kobo to close at 14 Kobo per unit versus 13 Kobo per unit.
At the close of business, the market capitalisation of the unlisted stock exchange fell by N840 million to N1.007 trillion from N1.008 trillion, while the NASD Unlisted Securities Index (NSI) depreciated by 0.61 points to 728.37 points from 728.98 points.
At the close of transactions yesterday, investors traded a total of 1.0 million units of securities, in contrast to the 5.4 million units of securities transacted in the preceding session, indicating a slump of 80.7 per cent.
However, the value of shares exchanged by the market participants went up by 194.3 per cent to N189.5 million from N64.4 million, as the number of deals declined by 16.7 per cent to 15 deals from 18 deals.
Geo-Fluids Plc closed as the most traded stock by volume (year-to-date) for selling 832.1 million units valued at N1.3 billion, followed by Industrial and General Insurance (IGI) Plc with 627.7 units worth N49.4 million, and UBN Property Plc with 395.9 million units valued at N336.6 million.
Also, VFD Group Plc was the most traded stock by value (year-to-date) for exchanging 10.7 million units valued at N2.4 billion, trailed by Geo-Fluids Plc with 832.1 million units worth N1.3 billion, and FrieslandCampina Wamco Nigeria Plc with 17.1 million units valued at N1.2 billion.
Crude Oil Jumps as US Reps Pass Contested Debt Bill
By Adedapo Adesanya
Crude oil increased on Thursday as the US House of Representatives’ passage of a bill to suspend the debt ceiling helped to offset the impact of rising inventories in the country.
Brent jumped by 2.3 per cent or $1.68 to $74.28 per barrel, as the US West Texas Intermediate (WTI) expanded by 3 per cent or $2.01 to settle at $70.10 a barrel.
Both benchmarks recovered from two-straight sessions of losses after the House passed a bill late on Wednesday to suspend the US government’s debt ceiling and improve chances of averting a default.
The Republican-controlled House voted 314-117 to send the legislation to the Senate, which must enact the measure and get it to President Joe Biden’s desk before a Monday deadline when the federal government is expected to run out of money to pay its bills.
The legislation temporarily removes – the US federal government’s borrowing limit through January 1, 2025.
The timeline will allow President Biden and Congress to set aside the politically risky issue until after the November 2024 presidential election.
It would also cap some government spending over the next two years, speed up the permitting process for certain energy projects, claw back unused COVID-19 funds and expand work requirements for food aid programs to additional recipients.
With this good as done, the market’s focus has also shifted to a June 4 meeting of the Organisation of the Petroleum Exporting Countries and its allies, including Russia, collectively called OPEC+.
According to Reuters, sources noted that the alliance is unlikely to deepen supply cuts at the Sunday meeting, but some analysts maintained that it is a possibility as demand indicators from China and the US have been disappointing in recent weeks.
Pressure came as US crude oil stockpiles rose unexpectedly last week, as imports jumped and strategic reserves dropped to their lowest since September 1983.
According to data from the Energy Information Administration (EIA), an inventory build of 4.5 million barrels was reported for the week to May 26.
At 459.7 million barrels, crude oil inventories in the U.S. are around 2 per cent below the five-year average for this time of the year.
The market will also be looking at the next moves by the US Federal Reserve and what it would do concerning its interest rates.
Naira Crumbles at Parallel Market After CBN Devaluation Denial
By Adedapo Adesanya
The Naira tumbled against the Dollar in the parallel market on Thursday after the Central Bank of Nigeria (CBN) refuted reports that it had devalued the local currency to N630/$1 in the official market.
The central bank described the news report as fake news, urging members of the public to disregard it as it had not authorised such.
This affected the value of the Nigerian currency on the streets yesterday as it lost N10 against the US Dollar to close at N750/$1 compared with Wednesday’s value of N740/$1.
In the official segment, which is also the Investors and Exporters (I&E), the domestic currency traded flat against the greenback during the session at N464.67/$1 despite the value of foreign exchange (forex) transactions rising by 53.3 per cent or $87.24 million to $250.98 million from $163.74 million.
In the Peer-2-Peer (P2P) segment, the local currency appreciated against its American counterpart by N9 to trade at N755/$1 versus the preceding day’s rate of N764/$1.
The Naira closed flat against the Pound Sterling on Thursday at N574.37/£1 but appreciated against the Euro by N2.31 to close at N493.58/€1 compared with the midweek session’s N495.89/€1.
In the cryptocurrency market, there was a renewed interest as optimism was injected into the assets, with top coins tracked by Business Post performing well.
Bitcoin (BTC) appreciated by 1.3 per cent to $27,201.31, Ethereum (ETH) improved its value by 2.0 per cent to $1,894.80, Litecoin (LTC) went up by 4.1 per cent to trade at $95.39, Ripple (XRP) recorded a 2.3 per cent gain to quote at $0.5193, and Cardano (ADA) appreciated by 2.2 per cent to trade at $0.3733.
Further, Solana (SOL) made a 2.1 per cent rise to sell at $21.12, Binance Coin (BNB) jumped by 1.2 per cent to sell for $308.33, and Dogecoin (DOGE) added 0.6 per cent to sell at $0.0722, while, the US Dollar Tether (USDT) and Binance USD (BUSD) remained unchanged at $1.00 each.
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