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Nigerian Stock Market Extends Losses to Third Trading Session

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Nigerian Stock Market

By Dipo Olowookere

The downward trajectory on the floor of the Nigerian Stock Exchange (NSE) continued on Wednesday as a result of persistent selloff.

This made it the third consecutive trading session the market was closing in the red zone this week as investors await the release of half year earnings of companies quoted on the stock exchange later this month.

At the close of transactions yesterday, the local bourse finished 0.28 percent lower with the Year-to-Date (YtD) returns standing at -1.95 percent.

Also, the All-Share Index (ASI) reduced by 106.05 points to settle at 37,499.07 points, while the market capitalisation decreased by N38 billion to finish at N13.584 trillion.

However, the volume of shares traded on Wednesday by investors increased by 96.49 percent as well as the value of trades, which went up by 18.08 percent.

A total of 505.7 million shares were traded yesterday in 3,906 deals valued at N3.1 billion compared with the 257.4 million equities worth N2.7 billion transacted the previous day.

However, unlike the past sessions, where the financial stocks dominate trades at the NSE, equities in the Natural Resources sector led the activity chart yesterday with a total of 200 million units of shares in the sector exchanged for N40 billion.

The Financial Services followed with 136.5 million shares transacted for N1.8 billion.

Like in the previous day, shares of Multiverse Resources were the most traded at the market on Wednesday with a total of 200 million units sold for N40 million.

It was followed by NAHCO, which traded 125.1 million units for N747.3 million, and GTBank, which sold 28.4 million units at N1.1 billion.

Access Bank exchanged 18.9 million shares worth N195.4 million, while FCMB traded 13.9 million equities valued at N30.8 million.

On the price movement chart, shares of Nestle Nigeria suffered the heaviest loss after going down by N10 to lead the laggards’ table, closing at N1500 per share yesterday.

It was followed by Unilever Nigeria, which depreciated by N3.75k to close at N51.25k per share, and Nigerian Breweries, which fell by N2.90k to settle at N111 per share.

Forte Oil went down by N2.90k to end at N26.10k per share, while Conoil declined by N2.50k to close at N27.50k per share.

Conversely, Eterna Oil led the gainers’ chart on Wednesday after adding 50 kobo to its share value to close at N7 per share.

GTBank gained 40 kobo to end at N40 per share, while Zenith Bank garnered 30 kobo to settle at N24.30k per share.

May & Baker appreciated yesterday by 20 kobo to close at N2.25k per share, while FCMB also increased by 20 kobo to finish at N2.28k per share.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Economy

Chinese Demand, Europe, Syria Development Buoy Oil Prices

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New Oil Grade

By Adedapo Adesanya

Oil prices rose on Tuesday, influenced by increasing demand in China, the world’s largest buyer, as well as developments in Europe and Syria, with Brent crude futures closing at $72.19 per barrel after chalking up 5 cents or 0.07 per cent while the US West Texas Intermediate finished at $68.59 a barrel after it gained 22 cents or 0.32 per cent.

China will adopt an “appropriately loose” monetary policy in 2025 as the world’s largest oil importer tries to spur economic growth. This would be the first easing of its stance in 14 years.

Chinese crude imports also grew annually for the first time in seven months, jumping in November on a year-on-year basis.

Speculation about winter demand in Europe also contributed to the rise in prices as the period has been known for high demand.

In Syria, rebels were working to form a government and restore order after the ousting of President Bashar al-Assad, with the country’s banks and oil sector set to resume work on Tuesday.

Although Syria itself is not a major oil producer, it is strategically located and has strong ties with Russia and Iran – two of the world’s largest oil producers.

Market analysts noted that the tensions in the Middle East seem contained, which led market participants to price for potentially low risks of a wider regional spillover leading to significant oil supply disruption.

The market is also looking forward to the US Federal Reserve, which is expected to make a 25 basis point cut to interest rates at the end of its December 17-18 meeting.

This move could improve oil demand in the world’s biggest economy, though traders are waiting to see if this week’s inflation data derails the cut.

Crude oil inventories in the US rose by 499,000 barrels for the week ending November 29, according to The American Petroleum Institute (API). Analysts had expected a draw of 1.30 million barrels.

For the week prior, the API reported a 1.232-million barrel build in crude inventories.

So far this year, crude oil inventories have fallen by roughly 3.4 million barrels since the beginning of the year, according to API data.

Official data from the US Energy Information Administration (EIA) will be released later on Wednesday.

Also, the market is getting relief from the recent decision of selected members of the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ to delay the rollback of 2.2 million barrels per day of oil production cuts to April from January. Another 3.6 million barrels per day in output reductions across the OPEC+ group has been extended to the end of 2026 from the end of 2025.

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Economy

Stock Market Rises 0.10% as Golden Guinea Breweries Tops Gainers’ Chart

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golden guinea breweries resume

By Dipo Olowookere

The local stock market bounced back from the danger zone it fund itself on Monday as it appreciated by 0.10 per cent on Tuesday, with the year-to-date return closing at 31.34 per cent.

The Nigerian Exchange (NGX) Limited stood tall yesterday despite a pocket of profit-taking in the industrial goods and banking indices, which closed lower by 0.84 per cent and 0.20 per cent, respectively.

During the trading session, the insurance counter appreciated by 1.98 per cent, the energy sector improved by 1.64 per cent, and the consumer goods space gained 0.17 per cent.

Consequently, the All-Share Index (ASI) rose by 98.45 points to 98,206.97 points from 98,107.52 points and the market capitalisation increased by N60 billion to settle at N59.532 trillion compared with the preceding day’s N59.472 trillion.

According to data obtained from the bourse, Golden Guinea Breweries topped the gainers’ chart on Tuesday after it chalked up 9.93 per cent to trade at N6.53, Guinea Insurance jumped by 9.80 per cent to 56 Kobo, Tantalizers expanded by 9.77 per cent to N1.46, Africa Prudential soared by 9.70 per cent to N13.00, and ABC Transport accelerated by 9.65 per cent to N1.25.

On the flip side, John Holt led the losers’ table after it slumped by 9.96 per cent to N7.23, Haldane McCall shrank by 9.91 per cent to N5.27, Morison Industries moderated by 9.89 per cent to N4.01, Lafarge Africa tumbled by 7.80 per cent to N65.00, and UPDC REIT crashed by 5.83 per cent to N4.85.

At the close of transactions, Customs Street recorded 37 appreciating equities and 21 depreciating equities, representing a positive market breadth index and strong investor sentiment.

Business Post reports that Coronation Insurance was the most traded stock for the trading day with 457.6 million units sold for N503.8 million, Sterling Holdings exchanged 138.4 million units worth N677.5 million, Japual transacted 30.4 million units valued at N66.9 million, UBA traded 28.7 million units worth N962.6 million, and MTN Nigeria sold 24.7 million units valued at N4.3 billion.

A total of 939.4 million shares valued at N12.8 billion exchanged hands in 9,098 deals yesterday compared with the 436.0 million shares worth N12.9 billion traded in 9,489 deals a day earlier, implying a growth in the volume of transactions by 115.46 per cent and a fall in the value of trades and the number of deals by 0.78 per cent and 4.12 per cent, respectively.

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AfDB to Give Nigerian SMEs $50m Loan Through BoI

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SMEs

By Adedapo Adesanya 

The African Development Bank Group (AfDB) through its Affirmative Finance Action for Women in Africa (AFAWA) programme has pledged support towards a new $50 million financing agreement to provide financial and business support to women-led enterprises in Nigeria.

The African Guarantee Fund, which implements the AFAWA Guarantee for Growth programme, and the Bank of Industry (BoI) signed the $50 million loan portfolio guarantee framework at the Africa Investment Forum in Rabat recently.

Through the AfDB AFAWA has approved more than $2.4 billion in lending for Africa’s women-led small and medium enterprises, as well as partnered with 185 financial institutions responsible for disbursing the funds across 44 African countries.

The initiative has unlocked financing for more than 18,600 women-led small and medium enterprises. AFAWA is supported by the African Development Bank’s partners and donors: the Women’s Entrepreneurs Finance Initiative (We-Fi), G7 participating countries Canada, France, Germany and Italy as well as the Netherlands and Sweden.

The transaction will be phased out in three tranches over ten years and will significantly scale up lending from the BoI to small and medium enterprises in the country.

The new deal will support women-led businesses via the AFAWA Guarantee for Growth programme, which makes financing available for women entrepreneurs through de-risking and technical assistance measures.

“This strategic partnership illustrates the commitment of the African Development Bank, especially the Affirmative Finance Action for Women in Africa initiative, to empower women entrepreneurs and foster economic growth in Nigeria,” Mrs Beth Dunford, African Development Bank’s Vice President for Agriculture, Human and Social Development, told signing ceremony attendees.

“This is not just a financial transaction aimed at supporting and catalysing the growth of small and medium enterprises in Nigeria – it is a beacon of hope and progress for African businesses, particularly for those led and owned by women,” she added.

The partnership includes a comprehensive risk-sharing mechanism that focuses on supporting micro, small and medium enterprises, women-owned enterprises and “green businesses” that promote environmental sustainability and gender equity.

African Guarantee Fund Group Chief Executive Officer, Mr Jules Ngankam said, “This transaction with the leading development finance institution in Nigeria is a great milestone that will significantly impact Nigeria’s economy by unlocking up to $100 million in financing for small and medium enterprises. African Guarantee Fund will also provide tailored guarantees and technical assistance towards the special small and medium enterprise products offered by Bank of Industry that target women, youth and green businesses.”

“Bank of Industry is excited to leverage the guarantee framework of the African Guarantee Fund in promoting sustainable growth, gender equity, innovation and advancing more credit to small and medium enterprises in Nigeria in line with [Nigeria] President Bola Tinubu’s government’s Renewed Hope agenda,” said Mr Olasupo Olusi, Bank of Industry’s Managing Director and CEO.

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