NSE: Profit-Takers Batter All-Share Index by 0.12%
By Dipo Olowookere
Activities of profit-takers on the floor of the Nigerian Stock Exchange (NSE) battered the bourse by 0.12 per cent on Thursday.
Most of the sell-offs occurred in the insurance, consumer goods and banking sectors, which made their respective index to decline by 6.70 per cent, 0.30 per cent and 0.23 per cent.
It was observed that the gains recorded in the industrial and energy sectors, which rose by 0.27 per cent and 0.15 per cent respectively, could not extend the rally of the exchange.
At the close of transactions, the All-Share Index (ASI) depreciated by 48.57 points to end at 41,099.15 points in contrast to the previous 41,147.72 points, while the market capitalisation decreased by N26 billion to settle at N21.499 trillion versus N21.525 trillion it closed on Wednesday.
Business Post observed that there was an upsurge in the volume of Transcorp shares traded yesterday. The firm, which acquired the stakes of Shell and others in OML 17 recently, transacted 428.3 million units worth N559.2 million to emerge the most active stock of the day.
GTBank sold 62.1 million shares valued at N2.1 billion, Sovereign Trust Insurance exchanged 61.4 million equities for N20.9 million, Mutual Benefits transacted 58.5 million stocks worth N31.1 million, while Universal Insurance traded 38.1 million shares for N9.8 million.
When trading activities were wrapped up on Thursday, a total of 1.1 billion shares worth N6.4 billion exchanged hands in 7,404 deals in contrast to the 646.6 million shares worth N4.6 billion traded in 6,296 deals at the midweek session, signifying 72.61 per cent rise in the trading volume, 38.72 per cent increase in the trading value and 17.60 per cent spike in the number of deals.
Lafarge Africa was the best-performing stock yesterday with a price appreciation of N1.45 to close at N27.95 per unit, while Northern Nigerian Flour Mills gained 88 kobo to close at N9.68 per share.
Ardova appreciated by 70 kobo to sell for N20.45 per unit, NCR Nigeria grew by 25 kobo to N2.84 per share, while Champion Breweries gained 16 kobo to quote at N1.78 per unit.
On the other hand, MRS Oil ended the day as the worst-performing stock after it depreciated by N1.35 to quote at N12.40 per share and was trailed by Cadbury Nigeria, which lost N1.05 to sell for N9.75 per unit.
Flour Mills depreciated by 90 kobo to end at N31.60 per share, Dangote Cement dropped 50 kobo to settle at N234 per unit, while Guinness Nigeria declined by 45 kobo to close at N18.50 per share.
Nigerian Stock Market Rebounds by 0.03%
By Dipo Olowookere
The raising of the monetary policy rate (MPR) by 50 basis points to 18.00 per cent by the Central Bank of Nigeria (CBN) on Tuesday did not deter the Nigerian stock market from closing in the green territory.
Business Post reports that the Nigerian Exchange (NGX) Limited rebounded by 0.03 per cent yesterday on the back of fresh bargain-hunting in financial and industrial goods equities.
The energy sector remained flat during the session, as the consumer goods counter lost 0.12 per cent, while the insurance, banking and industrial goods sectors appreciated by 1.30 per cent, 0.36 per cent, and 0.11 per cent, respectively.
At the close of business, the All-Share Index (ASI) increased by 18.64 points to 54,904.68 points from 54,886.04 points, while the market capitalisation went up by N9 billion to settle at N29.909 trillion, in contrast to Monday’s N29.900 trillion.
UBA ended the session as the busiest stock after it transacted 19.6 million units, Transcorp traded 14.5 million units, Fidelity Bank sold 12.7 million units, Zenith Bank exchanged 12.0 million units, and GTCO transacted 10.5 million units.
When the market closed for the day, investors transacted 127.7 million shares worth N1.6 billion in 2,987 deals compared with the 1.2 billion shares worth N2.9 billion traded in 3,066 deals a day earlier, representing a decline in the trading volume, value, and the number of deals by 89.42 per cent, 44.83 per cent, and 2.58 per cent apiece.
Linkage Assurance was the highest price gainer on Tuesday as it grew by 9.76 per cent to 45 Kobo, Coronation Insurance expanded by 7.89 per cent to 41 Kobo, Champion Breweries rose by 4.26 per cent to N4.90, Sterling Bank jumped by 2.67 per cent to N1.54, and Jaiz Bank inflated by 2.30 per cent to 89 Kobo.
On the flip side, Ikeja Hotel was the heaviest price loser after it declined by 9.65 per cent to N1.03, Cadbury Nigeria depleted by 5.83 per cent to N11.30, University Press shed 4.76 per cent to N2.00, International Breweries slumped by 4.30 per cent to N4.45, and Regency Assurance decreased by 3.45 per cent to 28 Kobo.
It was observed that the market breadth was flat yesterday as the bourse finished with 12 price gainers and 12 price losers.
Ease in Banking Crisis Worries Hikes Oil Prices by 2%
By Adedapo Adesanya
Oil prices improved by more than 2 per cent on Tuesday as the rescue of Credit Suisse allayed concerns of a banking crisis that would hurt economic growth and cut fuel demand.
Brent crude grew by $1.53 or 2.1 per cent to at $69.33 a barrel, while US West Texas Intermediate (WTI) appreciated by $1.69 or 2.5 per cent to $69.33 per barrel.
Measures to stabilise the banking sector, including a UBS takeover of Credit Suisse and pledges from major central banks to boost liquidity, have calmed fears about the financial system that shook markets in the oil space last week.
Last week, the two benchmarks shed more than 10 per cent as the banking crisis deepened but following the moves, the market showed promising signs of recovery.
Regardless, the US Federal Reserve started its monetary policy meeting on Tuesday with markets expecting a rate hike of 25 basis points, down from previous expectations of a 50 basis points increase.
Meanwhile, some predictions have said the US central bank could pause further rate hikes or delay releasing new economic projections, especially in light of the recent crisis.
Crude oil inventories in the United States rose this week, with a 3.262 million barrel build, the American Petroleum Institute (API) data showed on Tuesday, compared to estimates of a 1.448 million barrel draw.
The total number of barrels of crude oil gained so far this year is now more than 59 million barrels.
This week, SPR inventory held steady for the tenth week in a row at 371.6 million barrels—the lowest amount of crude oil in the SPR since December 1983.
Figures from the US Energy Information Agency (EIA) are due later on Wednesday.
The market will be awaiting a meeting of ministers from the Organisation of Petroleum Exporting Countries plus Russia and other allies, OPEC+, scheduled for April 3.
Not many factors could influence any decision reached at the meeting since the drop in prices reflects banking fears rather than supply and demand.
Last November, with prices weakening, OPEC+ reduced its output target by 2 million barrels per day – the largest cut since the early days of the COVID-19 pandemic in 2020.
The reduction, which at that time applied for the whole of 2023, was reiterated by Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, who hinted that OPEC+ will stick to the reduced target until the end of the year.
Unilever Nigeria Rejigs Business Model to Reduce Exposure to Naira Devaluation, Liquidity
**Stops Home Care, Skin Cleansing Products
By Aduragbemi Omiyale
Unilever Nigeria Plc has announced that it would stop producing home care and skin cleansing products as it makes efforts to reposition its business model so as to “accelerate growth and sustain profitability while enhancing its ability to meet consumer needs.”
In a notice to the Nigerian Exchange (NGX) Limited, the Fast-Moving Consumer Goods (FMCG) firm said the exit from the two markets would happen this year.
According to the century-old company, this action is expected to result in an overall improvement in profitability, growth and a more sustainable business.
“The exit of these two categories over 2023 will boost the vision to make Unilever Nigeria great, building on the impressive progress made in other key aspects of the business, and is envisaged to result in an overall improvement in profitability, growth and a more sustainable Unilever Nigeria business,” a part of the statement signed by the company secretary,” Abidemi Ademola said.
The firm further explained that “These changes will reposition the company to better meet the needs of consumers, shareholders, and employees.
“This will involve repurposing the portfolio by exiting the Home Care and Skin Cleansing categories to concentrate on higher growth opportunities, strengthening business operations with measures to digitize and simplify processes, and focusing more on business continuity measures that reduce exposure to devaluation and currency liquidity in our business model.”
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