Economy

Nigerian Stock Market Loses N416b in One Week amid Political Anxiety

Published

7 years ago

27/05/2018

By Dipo Olowookere

The heating up of the political terrain in the country is gradually having a negative effect on the Nigerian stock market, Business Post reports.

During the just-concluded trading week, the Nigerian Stock Exchange (NSE) lost about N416 billion as a result of huge selling pressure at the market.

Analysts had predicted that trading during the week would be positive as a result of improving macroeconomic indices in the domestic space, especially with the further ease in the inflation rate, positive GDP growth, passage of the 2018 budget and retention of the interest at 14 percent by the apex bank.

However, these did nothing to drive the equity market up last week as the stock market did not record any single rise throughout last week.

This was attributed to profit-taking activities by investors, especially foreign investors, who are parts of the major drivers of the local bourse. It was observed that foreign investors are reassessing their portfolio compositions so as to limit their losses as a result of political intrigues in the country ahead of the 2019 general elections.

Business Post reports that at the close of transactions last week, the All-Share Index (ASI) depreciated by 2.84 percent to settle at 39,323.62 points, while the market capitalization decreased by N416 billion to finish at N14.244 trillion against its previous close of N14.660 trillion.

During the week also, a total of 14 equities appreciated in price, lower than 20 in the previous week, while 61 stocks depreciated in price, higher than 54 equities of the previous week, and 94 counters remained unchanged, lower than 95 recorded in the preceding week.

A total turnover of 1.372 billion shares worth N16.022 billion in 21,099 deals were traded last week by investors on the floor of the exchange in contrast to a total of 1.457 billion shares valued at N23.666 billion that exchanged hands the previous week in 19,674 deals.

It was further observed that the Financial Services Industry, measured by volume, led the activity chart with 1.010 billion shares valued at N8.670 billion traded in 12,049 deals; thus contributing 73.62 percent and 54.11 percent to the total equity turnover volume and value respectively.

The Services Industry followed with 107.246 million shares worth N229.715 million in 712 deals, while the third place was occupied by Consumer Goods Industry with a turnover of 71.946 million shares worth N5.506 billion in 3,818 deals.

Trading in the top three equities; Zenith Bank, African Alliance Insurance Company and Ikeja Hotel, measured by volume, accounted for 276.876 million shares worth N2.939 billion in 2,112 deals, contributing 20.18 percent and 18.35 percent to the total equity turnover volume and value respectively.

The top gainer for the week was Ikeja Hotels, which rose by 44.94 percent to settle at N2.58k per share.

It was followed by MRS Oil Nigeria, which appreciated by 21.18 percent to finish at N36.05k per share, and Law Union and Rock Insurance, which increased by 20.99 percent to close at 98k per share.

Niger Insurance grew by 19.05 percent to end at 25k per share, while Consolidated Hallmark Insurance increased by 11.11 percent to finish at 30k per share.

On the flip side, Eterna closed the week as the worst performing stock after shedding 22.27 percent of its value to close at N5.27k per share.

It was trailed by Japaul Oil, which went down by 20 percent to end at 24k per share, and Dangote Flour, which decreased by 16.82 percent to close at N8.90k per share.

Transcorp declined by 16.35 percent to close at N1.33k per share, while AIICO Insurance fell by 16.18 percent to end at 57k per share.

Also traded during the week were a total of 70 units of Exchange Traded Products (ETPs) valued at N1,943.00 executed in 7 deals, compared with a total of 153,246 units valued at N4.009 million that was transacted in the preceding week in 22 deals.

In addition, a total of 10,754 units of Federal Government bonds valued at N11.412 million were traded during the week in 5 deals, compared with a total of 7,508 units valued at N7.506 million transacted in the previous week in 12 deals.

Economy

NASD Bourse Closes Mixed at Midweek as Paintcom Joins

Published

6 hours ago

16/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange recorded a mixed outcome on Wednesday, January 15 after it welcome a new entrant.

Paintcom Investment Nigeria Plc joined the OTC securities exchange yesterday with shares admitted at a unit price of N10.72 and a market capitalisation of N8.5 billion.

However, when trading activities closed for the session, the alternative stock exchange went down by 0.10 per cent, with the NASD Unlisted Security Index (NSI) depreciating by 3.03 points to 3,093.16 points from the 3,096.19 points recorded in the previous session.

But the value of the trading platform increased by 0.7 per cent or N7.54 billion to settle at N1.068 trillion compared with the preceding day’s N1.061 trillion.

The volume of securities traded in the session went down by 83.2 per cent to 666,494 units from the 3.97 million units recorded in the preceding session, while the value of shares traded during the session jumped by 98.2 per cent to N16.5 million from N8.3 million, with the number of deals going down by 20 per cent to 20 deals from 25 deals.

Industrial and General Insurance (IGI) Plc gained 3 Kobo to close at 30 Kobo per share versus 27 Kobo per share, Mixta Real Estate Plc increased by 23 Kobo to N2.58 per unit from N2.35 per unit, and Central Securities Clearing System (CSCS) Plc added N1.15 to settle at N23.20 per share, in contrast to Tuesday’s closing price of N22.15 per share.

Further, Afriland Properties Plc grew by 75 Kobo to N16.25 per unit from N15.50 per unit and Geo-Fluids Plc expanded by 13 Kobo to N4.79 per share from N4.66 per share.

On the flip side, 11 Plc fell by N27.74 to close at N253.10 per unit compared with the previous session’s N280.84 per unit and FrieslandCampina Wamco Nigeria Plc lost 55 Kobo to finish at N38.95 per share versus N39.50 per share.

FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 3.4 million units worth N134.9 million, followed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and Afriland Properties Plc with 690,825 sold for N11.1 million.

IGI Plc closed the day as the most active stock by volume (year-to-date) with 23.5 million units sold for N5.3 million, trailed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and FrieslandCampina Wamco Nigeria Plc with 3.4 million units worth N134.9 million.

Economy

Naira Crashes to N1,551/$1 at Official Market Amid Inflationary Pressures

Published

7 hours ago

16/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira depreciated on the American currency in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, January 15 by 0.09 per cent or N1.45 to close at N1,551.10/$1 compared with the preceding day’s N1,549.65/$1.

It was the fourth straight session the local currency was losing value on the greenback in the official forex market as the deadline to end the access of Bureaux De Change (BDCs) to the official trading platform nears.

Also, Nigeria’s inflation neared a 29-year high as it rose for the fourth straight month to 34.80 per cent in December 2024 spurred by high festive activities.

On the British currency, which is the Pound Sterling, the domestic currency depreciated by N24.79 to wrap the session at N1,904.43/£1 versus the previous day’s N1,879.64/£1 and against the Euro, it weakened by N14.74 to sell for N1,600.79 per Euro versus N1,586.05/€1.

At the parallel market, the Nigerian Naira traded flat against the US Dollar yesterday at N1,650/$1, according to data obtained by Business Post.

In the cryptocurrency market, most of the tokens gained as the anticipation of Mr Donald Trump’s inauguration as US president is building bullish sentiment for the market, which was also encouraged by a highly anticipated CPI inflation data report in the US.

Litecoin (LTC) grew by 17.7 per cent to quote at $119.82, Ripple (XRP) expanded by 9.0 per cent to a six-year high of $3.10, Solana (SOL) appreciated by 7.2 per cent to trade at $202.81, Dogecoin (DOGE) rose by 5.3 per cent to finish at $0.3789, Ethereum (ETH) increased its value by 4.7 per cent to end at $3,376.28, and Cardano jumped by 3.3 per cent to settle at $1.06, Bitcoin (BTC) gained 2.8 per cent to close at $99,707.22, and Binance Coin (BNB) improved by 1.6 per cent to trade at $710.31, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.

Economy

Oil Market Rallies on US Crude Drop, Russian Sanctions

Published

8 hours ago

16/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The oil market rose more than 2 per cent on Wednesday, supported by a large draw in US crude stockpiles and potential supply disruptions caused by new US sanctions on Russia.

Brent crude futures appreciated by $2.11 or 2.64 per cent to $82.03 a barrel and the US West Texas Intermediate (WTI) crude grew by $2.54 or 3.28 per cent to close at $80.04 a barrel.

The US Energy Information Administration (EIA) reported an inventory dip of 2 million barrels for the second week of the year.

The change estimated by the EIA compared with a modest draw of around 1 million barrels for the previous week, which also saw sizable fuel inventories build that dragged oil prices lower.

For the week to January 10, the EIA estimated an inventory build of 5.9 million in gasoline, with production averaging 9.3 million barrels daily. This compared with a build of as much as 6.3 million barrels for the previous week when production averaged 8.9 million barrels daily. That build was the second sizable weekly one after 2024 ended with a build of 7.7 million barrels in gasoline inventories.

The latest round of US sanctions on Russian oil could disrupt Russian oil supply and distribution significantly, the International Energy Agency (IEA) said in its monthly oil market report.

The Paris-based agency said that the sanctions on Iran and Russia cover entities that handled more than a third of Russian and Iranian crude exports in 2024, adding that the market will be in surplus this year as supply growth led by countries outside the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ exceeds subdued expansion in world demand.

This aligns with an earlier projection by the EIA which assumes that OPEC+ would roll back its production cuts and that non-OPEC production would continue leaping forward.

Limiting the gains was fresh developments in the Middle East as Israel and Hamas agreed to a deal to halt fighting in Gaza and exchange Israeli hostages for Palestinian prisoners.

OPEC in its monthly oil report on Wednesday forecast stronger demand growth than the IEA of 1.45 million barrels per day this year and, in its first look at 2026, predicted a similar expansion of 1.43 million barrels per day next year.

OPEC expects global oil demand to rise by 1.43 million barrels per day in 2026, maintaining a similar growth rate to 2025.