Economy

NSE Index Rises by 7.01% in Q3 2017

Published

8 years ago

11/10/2017

By Modupe Gbadeyanka

A recent report released by FSDH Research revealed that the Nigerian equity market as measured by the Nigerian Stock Exchange All Share Index (NSE ASI) appreciated by 7.01 percent in the third quarter of 2017.

This, it stated, was the strongest Q3 performance in the last four years.

The report said the stable macroeconomic environment was the major driver of the positive performance in the equity market and it expects this trend to continue in the last quarter of the year.

FSDH Research’s analysis of the historical trend of the equity market between 2012 and 2016 shows that the equity market rallied in December of each year.

FSDH Research’s historical analysis shows that there is a strong correlation between the movement in crude oil price and the Nigerian equity market.

The consensus on the short-term outlook for crude oil (Bonny Light) price is that it will remain above $50 per barrel.

The sustained high crude oil price coupled with improved oil production has led to a sustained accretion to the external reserves, which stood at $32.74 billion as at October 3, 2017.

The firm said it expects a continued boost to the external reserves in the short-to-medium term as oil price and production continue to strengthen because it is positive for the equity market.

Additionally, the introduction of the Investors’ and Exporters’ Foreign Exchange (FX) Window (I&E Window) has increased the supply of foreign exchange into the Nigerian economy and led to relative stability in the FX market. The I&E Window has also attracted more foreign investments into Nigeria. FSDH Research’s analysis of the capital importation data from the Central Bank of Nigeria (CBN) between January and July 2017 shows that there was a growth in capital importation in 2017, compared with 2016.

The total capital importation between January and July 2017 stood at $3.76 billion, representing a growth of 85.32 percent over $2.03 billion recorded in the corresponding period of 2016.

Other Investments (OI) – Loans attracted the highest capital of $1.69 billion between January and July 2017, closely followed by Foreign Portfolio Investment (FPI) – Equity of $1.15 billion, and Foreign Direct Investment (FDI) – Equity of $513.23 million.

FSDH Research said it expects continued foreign inflow into the equity market as the FX market remains stable.

It pointed out that this improved liquidity will boost the expected rally in the equity market. The drop in the yields on the fixed income securities should lead to portfolio realignments in favour of the equity market to take advantage of higher returns.

At the last auction on October 4, 2017, the yield on the 364-Day NTB stood at 18.65 percent, lower than the average yield of 22.71 percent recorded between January and September 2017.

Similarly, the yield on the 16.39 percent FGN January 2022 Bond stood at 15.83 percent as at the close of trading on October 4, 2017, lower than the average yield of 16.08 percent recorded between January and September 2017.

FSDH Research notes increased economic activities in most of the sectors of the Nigerian economy in September 2017.

A review of the latest Purchasing Managers’ Index (PMI) report that the CBN published for the month of September 2017 shows that economic activities in the manufacturing and non-manufacturing sectors continue to strengthen.

The Composite Manufacturing Index (CMI) expanded for the sixth consecutive month in 2017 to stand at 55.3 points in September 2017, from 53.6 points in August 2017.

The Composite Non-Manufacturing Index (CNMI) also expanded for the fifth consecutive month to 54.9 points in September 2017 from 54.1 points in August 2017.

The report is an indication that the Q3 2017 earnings of quoted companies will be an improvement over previous quarters.

According to FSDH Research, its forecasts for the Gross Domestic Product (GDP) in Q3 and Q4 2017 show that the GDP should grow in excess of 2 percent.

The firm says it expects the equity market to respond positively to the strong Q3 2017 GDP figures that the National Bureau of Statistics (NBS) will release on 22 November 2017.

Economy

Food Concepts Return NASD OTC Exchange to Danger Zone

Published

4 hours ago

05/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.

Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.

This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.

Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.

Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.

At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.

InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.

Economy

Investors Gain N97bn from Local Equity Market

Published

5 hours ago

05/12/2025

Dipo Olowookere

By Dipo Olowookere

The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.

This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.

UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.

On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.

Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.

Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.

A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.

This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.

For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.

Economy

Naira Loses 18 Kobo Against Dollar at Official Market, N5 at Black Market

Published

5 hours ago

05/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.

At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.

It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.

Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.

Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.

Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.

“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.

Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.

Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.

If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.

Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.