Economy
Nigerian Stocks Begin Week With 1.22% Rise
By Modupe Gbadeyanka
It was a good start for the local equities market on Monday after the Nigerian Stock Exchange (NSE) recorded a 1.22 percent growth as investors take position on stocks trading at attractive prices.
This rise came as the NSE kicked off its new pricing methodology and par value rule yesterday, which saw prices of some stocks such as Red Star and LASACO, which had traded at the old price floor of 50 kobo, depreciate to 48 kobo at the close of business.
The market breadth on Monday closed positive with 42 price gainers and 12 price losers, while the year-to-date return stood at 15.85 percent.
Also, the All-Share Index (ASI) rose by 532.72 points yesterday to settle at 44,306.48 points, while the market capitalisation appreciated by N191 billion to finish at 15.883 trillion.
However, the volume and value of shares transacted by investors at the market depreciated by 39.32 percent and 17.50 percent respectively.
A total of 573.4 million equities worth N5.9 billion were traded on Monday in contrast to 944.9 million stocks valued at N7.1 billion exchanged at the last trading session.
At the close of trading activities yesterday, the Financial Services sector led the activity chart with 477.8 million shares exchanged for N4.2 billion, while the Consumer Goods sector followed with 52.6 million shares traded for N944 million.
FCMB emerged the most traded stock at the market on Monday, exchanging a total of 169 million units valued at N547 million.
It was trailed by Access Bank, which sold 42.5 million equities worth N553.5 million, and UBA, which exchanged 39.5 million shares valued at N513.7 million.
Honeywell Flour transacted 33.7 million shares for N91.5 million, while Zenith Bank sold 32.8 million shares worth N1 billion.
On the price movement chart, Dangote Cement topped the gainers’ chart after growing by N7.90k to close at N268 per share.
Stanbic IBTC increased by N1 to settle at N45 per share, while Forte Oil appreciated by 60k to finish at N50 per share.
UAC of Nigeria also rose by 60k to close at N17.60k per share, while Eterna increased by 43k to settle at N5.89k per share.
On the flip side, Guinness Nigeria emerged the biggest price loser, depreciating by N2 to close at N110 per share.
It was followed by Nigerian Breweries, which declined by N1.80k to finish at N150 per share, and Dangote Sugar, which fell by N1 to end at N20.95k per share.
Flour Mills of Nigeria went down by 50k to finish at N30.90k per share, while GTBank slumped by 30k to settle at N48.70k per share.
Economy
Again, OPEC Cuts 2024, 2025 Oil Demand Forecasts
By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries (OPEC) has once again trimmed its 2024 and 2025 oil demand growth forecasts.
The bloc made this in its latest monthly oil market report for December 2024.
The 2024 world oil demand growth forecast is now put at 1.61 million barrels per day from the previous 1.82 million barrels per day.
For 2025, OPEC says the world oil demand growth forecast is now at 1.45 million barrels per day, which is 900,000 barrels per day lower than the 1.54 million barrels per day earlier quoted.
On the changes, the group said that the downgrade for this year owes to more bearish data received in the third quarter of 2024 while the projections for next year relate to the potential impact that will arise from US tariffs.
The oil cartel had kept the 2024 outlook unchanged until August, a view it had first taken in July 2023.
OPEC and its wider group of allies known as OPEC+ earlier this month delayed its plan to start raising output until April 2025 against a backdrop of falling prices.
Eight OPEC+ member countries – Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman – decided to extend additional crude oil production cuts adopted in April 2023 and November 2023, due to weak demand and booming production outside the group.
In April 2023, these OPEC+ countries decided to reduce their oil production by over 1.65 million barrels per day as of May 2023 until the end of 2023. These production cuts were later extended to the end of 2024 and will now be extended until the end of December 2026.
In addition, in November 2023, these producers had agreed to voluntary output cuts totalling about 2.2 million barrels per day for the first quarter of 2024, in order to support prices and stabilise the market.
These additional production cuts were extended to the end of 2024 and will now be extended to the end of March 2025; they will then be gradually phased out on a monthly basis until the end of September 2026.
Members have made a series of deep output cuts since late 2022.
They are currently cutting output by a total of 5.86 million barrels per day, or about 5.7 per cent of global demand. Russia also announced plans to reduce its production by an extra 471,000 barrels per day in June 2024.
Economy
Aradel Holdings Acquires Equity Stake in Chappal Energies
By Aduragbemi Omiyale
A minority equity stake in Chappal Energies Mauritius Limited has been acquired by a Nigerian energy firm, Aradel Holdings Plc.
This deal came a few days after Chappal Energies purchased a 53.85 per cent equity stake in Equinor Nigeria Energy Company Limited (ENEC).
Chappal Energies went into the deal with Equinor to take part in the oil and gas lease OML 128, including the unitised 20.21 per cent stake in the Agbami oil field, operated by Chevron.
Since production started in 2008, the Agbami field has produced more than one billion barrels of oil, creating value for Nigerian society and various stakeholders.
As part of the deal, Chappal will assume the operatorship of OML 129, which includes several significant prospects and undeveloped discoveries (Nnwa, Bilah and Sehki).
The Nnwa discovery is part of the giant Nnwa-Doro field, a major gas resource with significant potential to deliver value for Nigeria.
In a separate transaction, on July 17, 2024, Chappal and Total Energies sealed an SPA for the acquisition by Chappal of 10 per cent of the SPDC JV.
The relevant parties to this transaction are working towards closing out this transaction and Ministerial Approval and NNPC consent to accede to the Joint Operating Agreement have been obtained.
“This acquisition is in line with diversifying our asset base, deepening our gas competencies and gaining access to offshore basins using low-risk approaches.
“We recognise the strategic role of gas in Nigeria’s energy future and are happy to expand our equity holding in this critical resource.
“We are committed to the cause of developing the significant value inherent in the assets, which will be extremely beneficial to the country.
“Aradel hopes to bring its proven execution competencies to bear in supporting Chappal’s development of these opportunities,” the chief executive of Aradel Holdings, Mr Adegbite Falade, stated.
Economy
Afriland Properties Lifts NASD OTC Securities Exchange by 0.04%
By Adedapo Adesanya
Afriland Properties Plc helped the NASD Over-the-Counter (OTC) Securities Exchange record a 0.04 per cent gain on Tuesday, December 10 as the share price of the property investment rose by 34 Kobo to N16.94 per unit from the preceding day’s N16.60 per unit.
As a result of this, the market capitalisation of the bourse went up by N380 million to remain relatively unchanged at N1.056 trillion like the previous trading day.
But the NASD Unlisted Security Index (NSI) closed higher at 3,014.36 points after it recorded an addition of 1.09 points to Monday’s closing value of 3,013.27 points.
The NASD OTC securities exchange recorded a price loser and it was Geo-Fluids Plc, which went down by 2 Kobo to close at N3.93 per share, in contrast to the preceding day’s N3.95 per share.
During the trading session, the volume of securities bought and sold by investors increased by 95.8 per cent to 2.4 million units from the 1.2 million securities traded in the preceding session.
However, the value of shares traded yesterday slumped by 3.7 per cent to N4.9 million from the N5.07 million recorded a day earlier, as the number of deals surged by 27.3 per cent to 14 deals from 11 deals.
Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 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 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units sold for N5.3 billion.
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