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Economy

Nigerian Stocks Struggle on Low Investor Confidence

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Nigerian Stocks

By Dipo Olowookere

It is not a good time for Nigerian stocks at the moment as investor sentiment remains negative as the market awaits a positive trigger to propel another round of buying interest.

On Thursday, the Nigerian Exchange (NGX) Limited slightly went down by 0.01 per cent to extend its stay at the negative territory for the fourth straight session. It means the stock market has not recorded a single growth this trading week, though it closed flat on Tuesday with a red.

The decline reported yesterday was majorly influenced by selloffs in some value stocks and investors did not have the opportunity to chew the much-awaited half-year results of GTCO and the financial statements were filed after the close of business.

Business Post reports that the All-Share Index (ASI) reduced at the session by 3.19 points to settle at 39,201.33 points compared with the preceding session’s 39,204.52 points, while the market capitalisation went down by N1 billion to finish at N20.425 trillion in contrast to N20.426 trillion of Wednesday.

Unlike the previous day, the performance of the key sectors of the exchange was better, though it remained mixed, with the energy, consumer goods and banking indices closing higher by 0.55 per cent, 0.14 per cent and 0.03 per cent apiece, while the insurance and industrial goods counters depreciated by 1.65 per cent and 0.02 per cent respectively.

At the exchange on Thursday, there were more price losers than gainers. A total of nine stocks appreciated during the trading day, while 21 equities depreciated in price.

Cornerstone Insurance suffered the heaviest loss with a 7.69 per cent decline, closing at 48 kobo. AIICO Insurance went down by 6.86 per cent to 95 kobo, Learn Africa lost 5.56 per cent to sell for N1.36, Livestock Feeds depreciated by 5.45 per cent to N2.08, while Honeywell Flour Mills shed 5.13 per cent to trade at N3.88.

Conversely, Chams ended the session as the best-performing stock with a price increase of 4.76 per cent to quote at 22 kobo and was followed by UBA, which gained 4.67 per cent to settle at N7.85.

Cutix appreciated by 4.60 per cent to sell at N5.00, Oando rose by 3.08 per cent to trade at N4.68, while Nigerian Breweries improved by 1.25 per cent to N48.65.

In terms of the trades, the volume of shares went down by 1.00 per cent to 350.5 million units from 354.1 million units, the number of deals declined by 13.97 per cent to 3,523 deals from 4,095 deals, while the value of stocks increased by 4.52 per cent to N3.4 billion from N3.2 billion.

For another trading session, FBN Holdings finished as the most transacted stock with the sale of 97.7 million units valued at N729.6 million and was trailed by Wema Bank with 74.8 million units worth N58.5 million.

Access Bank transacted 47.8 million equities valued at N451.2 million, Livestock Feeds sold 12.9 million shares worth N26.7 million, while Nigerian Breweries exchanged 10.0 million stocks for N486.8 million.

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 dipo.olowookere@businesspost.ng

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Economy

FG to Announce New Date for Postponed FAAC Meeting for May 2022

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FAAC meeting allocation

By Aduragbemi Omiyale

The federal government has said it would announce a new date for the Federation Account Allocation Committee (FAAC) meeting for this month, which was shelved in a circular on Wednesday.

On Wednesday, the Ministry of Finance, Budget and National Planning released a statement to announce the postponement of the FAAC Meeting for May 2022 over certain circumstances connected with the arrest of the Accountant General of the Federation (AGF), Mr Ahmed Idris.

Mr Idris, who is a key member of the FAAC team, is cooling off in the custody of the agency over an alleged N80 billion fraud. He is helping the EFCC in its investigation into the issue.

As a result of his arrest and suspension from office by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, the meeting for this month was shelved.

In the circular signed by the Director of Home Finance at the Ministry, Mr Stephen Okon, the federal government assured that “the new date for the meetings will be forwarded to you in due course.”

The gathering, which is held to share revenue generated by the country in the previous month to the three tiers of government; federal, states and local governments, was earlier slated to take place this month on Wednesday, May 18 and Thursday, May 19, 2022.

But Mr Okon stated in the notice that, “I am directed to inform you that the Federation Account Allocation Committee (FAAC) meetings earlier scheduled to hold virtually on the 18th and 19th May 2022 have been postponed due to certain circumstances.”

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Economy

Bulls Return to Unlisted Securities Market on 0.21% Growth

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Unlisted Securities Market

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange welcomed the bulls back into its fold on Thursday following a 0.21 per cent growth at the close of business.

The bulls were at the unlisted securities market yesterday at the invitation of Niger Delta Exploration and Production (NDEP) and Food Concepts Plc, which recorded price appreciations during the session.

NDEP Plc gained N10 or 4.6 per cent to close at N220.00 per share as against the N210.00 it closed at the last session, while Food Concepts Plc appreciated by 6 kobo or 6.5 per cent to close at 93 kobo per unit compared with 87 kobo per unit of the previous session.

The gains reported by the duo expanded the NASD unlisted securities index (NSI) by 1.66 points to 808.79 points from 807.12 points and equally increased the market capitalisation by N2.17 billion to N1.06 trillion from N1.05 billion.

At the market yesterday, the trading volume rose by 17,545.7 per cent as a total of 20.0 million units of shares exchanged hands compared with the 113,500 units of shares transacted on Wednesday.

In the same vein, the trading value rose by 749.3 per cent to N24.4 million from the previous day’s N2.9 million, while the number of trades went down by 28.6 per cent to five deals from seven deals.

AG Mortgage Bank Plc remained the most traded stock by volume on a year-to-date basis with 2.3 billion units valued at N1.2 billion, Central Securities Clearing System (CSCS) Plc stood in second place with 661.7 million units worth N13.9 billion, while Food Concepts Plc was in third place with 134.0 million units valued at N114.9 million.

In the same vein, CSCS Plc ended the session as the most active stock by value on a year-to-date basis with 661.7 million units worth N13.9 billion, VFD Group was in second place with 9.4 million units valued at N2.9 billion, while AG Mortgage Bank Plc in third place has transacted 2.3 billion units valued at N1.2 billion.

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Economy

Naira Drops 0.34% at P2P, 0.26% at Investors’ FX Segment

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FX Market Segments

By Adedapo Adesanya

The Naira depreciated against the Dollar at the Peer-to-Peer (P2P) segment of the foreign exchange (FX) market on Thursday by 0.34 per cent or N2 to trade at N615/$1 compared with the previous day’s N613/$1.

Also, at the Investors and Exporters (I&E) window, the Nigerian currency depreciated against the greenback yesterday by 0.26 per cent or N1.08 as it traded at N420.33/$1 in contrast to Wednesday’s closing value of N419.25/$1.

It was the second consecutive trading day that the local currency is coming under pressure amid disruption in the supply of forex to the market by the Central Bank of Nigeria (CBN).

The demand for FX is relatively high at the moment because politicians are trying to get foreign currencies to woo delegates to their sides to obtain tickets to contest in the 2023 general elections.

Data from the FMDQ Securities Exchange indicated that at the investors’ FX segment yesterday, transactions worth $75.56 million were executed, 62.47 per cent or $125.78 million lower than the $201.34 million achieved a day earlier.

However, at the interbank segment of the FX market, the domestic currency closed stronger against the Pound Sterling by 38 kobo to trade at N516.49/£1 versus N516.87/£1 and against the Euro, it gained 37 kobo to sell at N437.48/€1 versus the preceding session’s N437.11/€1.

At the cryptocurrency market, nine of the 10 tokens monitored by Business Post recovered, with the crisis-hit coin, TerraUSD (UST), further losing 21.4 per cent to quote at $0.07479.

Ripple (XRP) rose by 7.2 per cent to $0.432, Litecoin (LTC) gained 4.8 per cent to trade at $69.99, Cardano (ADA) appreciated by 4.6 per cent to sell at $0.5304, Binance Coin (BNB) grew by 4.2 per cent to trade at $307.16, while Ethereum (ETH) went up by 3.7 per cent to $2,017.41.

In addition, Bitcoin (BTC) jumped by 3.6 per cent to $30,086.44, Dogecoin (DOGE) moved higher by 2.6 per cent to trade at $0.0862, Solana (SOL) recorded a 1.5 per cent appreciation to sell at $51.09, while the United States Dollar Tether (USDT) gained 0.01 per cent to settle at $0.9989.

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