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Economy

Nigerian Stocks Down by 0.15% as Market Remains Volatile

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Nigerian Stocks

By Dipo Olowookere

Transactions on the trading floor of the Nigerian Stock Exchange (NSE) remained weak today as profit-taking activities persist, extending to the second trading session of this week.

Business Post reports that the market remained volatile on Tuesday as investors continue to react to the poor 2017 earnings released by Diamond Bank Plc last week in the absence of any positive news to positively change the mood and override the shocker.

Even news of the possible passage of the 2018 budget this week by the Senate was not enough to cheer investors.

The budget report was finally laid before both the Senate and the House of Representatives today with the estimates increased to N9.12 trillion from N8.61 trillion by the lawmakers.

At the close business on Tuesday, the local went down further by 0.15 percent, reducing the Year-to-Date (YtD) returns to 6.20 percent.

The All-Share Index (ASI) depreciated by 62.19 points to settle at 40,615.42 points, while the equity capitalisation reduced by N22.5 billion to finish at N14.712 trillion.

A look at the sector performance showed that the NSE Banking Index dropped 1.35 percent as a result of the 9.39 percent loss recorded by Diamond Bank, 5.56 percent loss by Skye Bank and 4 percent loss by Zenith Bank.

However, the NSE Consumer Goods Index appreciated by 1.42 percent due to the buy interest in Nestle Nigeria, which went up by 2.81 percent; and Nigerian Breweries, which increased by 2.30 percent.

Furthermore, the NSE Industrial Index grew today by 0.08 percent mainly due to gains recorded by CAP, which rose by 2.83 percent; while the NSE Oil & Gas Index ended flat.

The Financial Services sector led the activity chart today with 159.9 million shares exchanged for N2.8 billion, while the Consumer Goods followed with 16.8 million shares traded for N1.5 billion.

GTBank emerged the most active stock at the market on Tuesday, trading a total of 37.2 million units worth N1.6 billion.

It was trailed by UBA, which sold 31.5 million shares valued at N361.1 million, and Fidelity Bank, which exchanged 14.5 million equities for N33.8 million.

Zenith Bank transacted 11.7 million shares valued at N330.5 million, while Oando sold 11.1 million equities worth N84.7 million.

In all, a total of 203.4 million shares exchanged hands on Tuesday in 4,090 deals worth N4.4 billion in contrast to the 218.8 million equities traded on Monday in 4,109 deals valued at N2.2 billion.

This showed that the volume of stocks traded at the market today decreased by 7.05 percent, while the value appreciated by 98.47 percent.

Business Post reports that the market breadth index was negative with 25 declining stocks against 12 appreciating stocks.

Zenith Bank turned out to be the day’s biggest loser after shedding N1.15k of its share value to settle at N27.60k per share.

It was trailed by FBN Holdings, which went down by 50k to close at N11.50k per share, and Oando, which declined by 35k to finish at N7.40k per share.

GTBank decreased by 30k to end at N44 per share, while Dangote Flour reduced by 25k to close at N11.25k per share.

Conversely, Nestle Nigeria topped the gainers’ chart with N43 added to its share price to close at N1573 per share.

Nigerian Breweries went up by N2.80k to end at N124.80k per share, while CAP gained N1.10k to finish at N40 per share.

Ecobank rose today by 30k to finish at N21 per share, while NPF Microfinance Bank increased by 7k to close at N1.85k 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

Seplat to Boost Nigeria’s Oil Production With Mobil Assets Acquisition

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Seplat Energy

By Adedapo Adesanya

Seplat Energy Plc will revive hundreds of Nigerian oil wells laying fallow after completing the acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil.

The company said it aims to lift oil output to about 200,000 barrels a day, a move that will help boost Nigeria’s oil production levels, as it aims to reach 2 million barrels per day next year.

The transaction, according to Seplat, “is transformative for Seplat Energy, more than doubling production and positioning the company to drive growth and profitability, whilst contributing significantly to Nigeria’s future prosperity.”

The completion of the Seplat-ExxonMobil deal has created Nigeria’s leading independent energy company, with the enlarged company having equity in 11 blocks (onshore and shallow water Nigeria); 48 producing oil and gas fields; 5 gas processing facilities; and 3 export terminals.

Recall that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in October approved the deal as part of a series of approvals, while it blocked Shell’s asset sale of up to $2.4 billion to the Renaissance consortium.

The acquisition of the entire issued share capital of MPNU adds the following assets to the Seplat Group: 40 per cent operated interest in OML 67, 68, 70 and 104; 40 per cent operated interest in the Qua Iboe export terminal and the Yoho FSO; 51 per cent operated interest in the Bonny River Terminal (‘BRT’) NGL recovery plant; 9.6 per cent participating interest in the Aneman-Kpono field; and approximately 1,000 staff and 500 contractors will transition to the Seplat Group.

MPNU adds substantial reserves and production to Seplat Energy; 409 million barrels of oil equivalent (MMboe) 2P reserves and 670 MMboe 2P + 2C reserves and resources as at 30 June 2024 and 6M 2024 average daily production of 71.4 kboepd (thousand barrels of oil equivalent).

Business Post reports that Seplat will be part of the payment this year, and will defer some to next year,

Speaking on the transaction, the Chairman of Seplat Energy, Mr Udoma Udo Udoma commended President Bola Tinubu for supporting this transaction and appreciated the support and diligence of the various ministries and regulators for all the work to reach a successful conclusion.

“We are delighted to welcome the MPNU employees to Seplat Energy. We are excited to begin our journey in a new region of the country, and we look forward to replicating the positive impacts we have achieved within our communities in our current areas of operations.

“Seplat’s mission is to deliver value to all our stakeholders, and we treasure the good relationships we have developed with the government, regulators, communities and our staff.”

On his part, the chief executive of Seplat Energy, Mr Roger Brown, described the acquisition as a major milestone, adding, “I extend my thanks to the entire Seplat team for their hard work and perseverance to complete this transaction.

“MPNU’s employees and contractors have a strong reputation for safety and operational excellence, and I welcome them to the Seplat Energy Group.

“We have acquired a company with one of the best portfolios of assets and related infrastructure in a world-class basin, providing enormous potential for the Seplat Group. Our commitment is to invest to increase oil and gas production while reducing costs and emissions, maximising value for all our stakeholders.

“MPNU is a perfect fit with our strategy to build a sustainable business that can deliver affordable, accessible and reliable energy for Nigeria alongside attractive returns to our shareholders”.

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Economy

PenCom Projects N22trn Pension Assets for 2024

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PenCom old age poverty

By Adedapo Adesanya

The National Pension Commission (PenCom) is projected to close the year with over N22 trillion in pension assets impacted by challenges like inflation and monetary policies.

This is according to PenCom Director-General, Mrs Omolola Oloworaran, at a press conference in Abuja on Thursday.

She said as of October 2024, the Contributory Pension Scheme (CPS) had 10.53 million registered contributors and pension fund assets worth N21.92 trillion.

Speaking at the conference-themed Tech-driven Transformation Shaping the Pension Landscape, which showcased PenCom’s strategic commitment to innovation, she said that the numbers reflected the agency’s unwavering commitment to fund safety, prudent management, and sustainable growth.

She explained that the pension environment was impacted by the wider economic challenges facing the country, noting that the sector battled multi-year high inflation, Naira devaluation, and the lingering effects of unorthodox monetary policies by the Central Bank of Nigeria (CBN).

Business Post reports that the apex bank hiked interest rates by 875 basis points this year alone to tackle persistent inflation which peaked at 33.8 per cent as of October.

She said that these challenges eroded the real value of pension funds and impacted contributors’ purchasing power.

“To address these issues, the commission has initiated a comprehensive review of its investment regulations.

“It is focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign currency-denominated investments.

“The goal is to safeguard contributor savings and ensure resilience against future economic volatility,” she said.

She restated the commission’s commitment to expanding pension coverage, particularly through the advanced micro-pension plan designed to encourage participation from the informal sector using technology.

“This initiative will make it easier for everyday Nigerians to save for retirement, aligning with our vision of inclusive growth and financial stability for all.

“The backlog in retirement benefits for retirees of the Federal Government’s Ministries, Departments, and Agencies (MDAs) will soon be settled.

“The federal government recently disbursed N44 billion under the 2024 budget to settle approved pension rights.

“We are collaborating with the Federal Government to institutionalise a sustainable solution to ensure retirees receive their benefits promptly, eliminating delays,” Mrs Oloworaran said.

She said that PenCom’s technology-driven transformation aimed to make the CPS more accessible, reliable, and sustainable.

“From data management to seamless contributions and regulatory supervision, we are paving the way for a future where the pension industry serves all Nigerians effectively,” she said,

Mrs Oloworaran also said that the e-application portal for pension clearance certificates has replaced the manual processes and enhanced the ease of doing business in the sector.

“Since its deployment, 38,528 pension clearance certificates have been issued. This initiative ensures compliance and secures the future of Nigerians working in organisations that interact with the government,” she said.

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Economy

NASD OTC Securities Exchange Closes Flat

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Nigerian OTC securities exchange

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Thursday, December 12 after it ended the trading session with no single price gainer or loser.

As a result, the market capitalisation remained unchanged at N1.055 trillion as the NASD Unlisted Security Index (NSI) followed the same route, remaining at 3,012.50 points like the previous trading session.

However, the activity chart witnessed changes as the volume of securities traded at the bourse went down by 92.5 per cent to 447,905 units from the 5.9 million units transacted a day earlier.

In the same vein, the value of securities bought and sold by investors declined by 86.6 per cent to N3.02 million from the N22.5 million recorded in the preceding trading day.

But the number of deals carried out during the session remained unchanged at 21 deals, according to data obtained by Business Post.

When trading activities ended for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, Okitipupa Plc came next with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc was in third place 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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