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Economy

Oil Prices Slide as Hurricane Beryl Threatens US Demand, Ceasefire Deal Advances

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By Adedapo Adesanya 

Oil prices fell around 1 per cent on Monday as Hurricane Beryl shut refineries in the United States and ports along the Gulf of Mexico, and on hopes a possible ceasefire deal in Gaza could reduce worries about global crude supply disruptions.

Brent futures fell by 79 cents or 0.9 per cent to settle at $85.75 a barrel and the US West Texas Intermediate (WTI) crude depreciated by 83 cents or 1.0 per cent to trade at $82.33 per barrel.

Hurricane Beryl impacted Texas with high winds and heavy rain as it moved inland. Of all the states in the US, Texas generates the most natural gas and oil.

Oil ports shuttered, hundreds of flights were cancelled, and over 2.7 million households and businesses lost electricity.

This is not the only country facing weather challenges as petrol scarcity hooked Nigeria, Africa’s largest oil producer. The Nigerian National Petroleum Company (NNPC) Limited said weather disrupted the supply of petrol on Monday.

Meanwhile, on Monday, Middle East mediators Qatar and Egypt are in the midst of negotiations on a US-led ceasefire proposal to end the nine-month-old conflict in Gaza.

Elsewhere, investors were watching for how elections in the UK, France and Iran over the past week would affect geopolitics and energy policies.

Following Sunday’s election in France, which prevented the extreme right from gaining power but resulted in a hung parliament, the French left declared its desire to lead the government but acknowledged on Monday that negotiations would be difficult and take time.

President Emmanuel Macron had called a quick election, and many of France’s friends sighed with pleasure when Marine Le Pen’s National Rally (RN) lost.

In the US, President Joe Biden said that he would not give up on his re-election campaign amid concerns that his party would lose both the White House and Congress in the next US election on November 5.

Crude oil imports into Asia decreased in the first half of 2024 compared to the same time the previous year, mostly as a result of fewer arrivals in China, the largest oil importer in the world.

The use of gasoline (petrol) increased by 2.6 per cent annually to 19.99 million metric tonnes in June from a year earlier in India, the third-largest oil consumer in the world.

May export figures in Germany were lower than anticipated because of a decline in demand from China, the US, and other European nations.

The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have already extended most of its oil output cuts into 2025. Those output cuts have led analysts to forecast supply deficits in the third quarter as transportation and demand for air-conditioning during the summer eat into fuel stockpiles.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Economy

NGX Index Down 0.15% as eTranzact Ends as Worst-Performing Stock

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eTranzact

By Dipo Olowookere

The first trading day of the new week at the Nigerian Exchange (NGX) Limited ended on a negative note on Monday with a 0.15 per cent loss.

This was influenced by a decline in the appetite for Nigerian stocks by investors, as market participants chose to trade cautiously.

The profit-taking put most of the sectors under pressure, with the insurance index crumbling by 1.70 per cent at the close of transactions.

Further, the consumer goods space declined by 0.38 per cent, the banking counter shrank by 0.20 per cent, and the energy industry depreciated by 0.19 per cent, while the industrial goods and commodity sectors closed flat.

Consequently, the All-Share Index (ASI) gave up 155.96 points to settle at 105,799.17 points compared with last Friday’s 105,955.13 points, and the market capitalisation tumbled by N8 billion to close at N66.344 trillion versus N66.352 trillion.

The worst-performing stock yesterday was eTranzact after it lost 10.00 per cent to trade at N5.85, Sunu Assurances depleted by 9.92 per cent to N4.63, Prestige Assurance fell by 8.26 per cent to N1.00, Sovereign Trust Insurance crashed by 7.77 per cent to 95 Kobo, and Red Star Express stumbled by 7.76 per cent to N5.35.

The best-performing stock for the session was Academy Press as it chalked up 9.92 per cent to sell for N2.88, Neimeth appreciated by 8.43 per cent to N2.70, Tantalizers rose by 6.83 per cent to N3.13, Dangote Sugar jumped by 4.71 per cent to N36.70, and Stanbic IBTC grew by 4.24 per cent to N61.50.

Business Post reports that there were 18 price gainers and 35 price losers on Monday, representing a negative market breadth index and weak investor sentiment.

During the trading day, investors traded 477.5 million shares valued at N7.1 billion in 13,520 deals compared with the 750.6 million shares worth N11.1 billion transacted in 10,584 deals in the preceding session, indicating a growth in the number of deals by 27.74 per cent, and a slump in the trading volume and value by 36.38 per cent and 36.04 per cent, respectively.

Jaiz Bank topped the activity chart after selling 197.4 million stocks for N606.2 million, Zenith Bank transacted 26.0 million shares for N1.2 billion, Sovereign Trust Insurance traded 19.3 million equities worth N18.5 million, Prestige Assurance exchanged 18.5 million shares valued at N19.0 million, and Fidelity Bank sold 15.9 million equities worth N270.5 million.

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Economy

Inflation in Nigeria Cools to 23.18% in February 2025

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By Modupe Gbadeyanka

In February 2025, inflation in Nigeria moderated to 23.18 per cent from the 24.48 per cent recorded in January 2025, data from the National Bureau of Statistics (NBS) on Monday revealed.

The agency disclosed in the report yesterday that on a year-on-year basis, the average prices of goods and services eased by 8.52 per cent from the 31.70 per cent achieved in February 2024.

In the Consumer Price Index (CPI) data, the NBS said last month, the headline inflation slowed due to decline in the average prices of food items like yam tuber, potatoes, soya beans, flour of maize/cornmeal, cassava, bambara beans (dried), etc compared with the prices in the first month of this year.

It stated that housing, water, electricity, gas, and other fuels accounted for 1.95 per cent of inflationary concerns, which education services contributed 1.44 per  cent, with health accounting for 1.40 per cent.

It added that clothing and footwear accounted for 1.17 per cent, information and communication contributed 0.76 per cent, and personal care, social protection, miscellaneous goods and services accounted for 0.76 per cent.

Further, furnishing, household equipment, and routine household maintenance contributed 0.69 per cent; insurance and financial services accounted for 0.11 per cent; and alcoholic beverages, tobacco, recreation, sport, and culture, sport, and culture contributed 0.07 per cent.

Also, food and non-alcoholic beverages accounted for 9.28 per cent, restaurants and accommodation services contributed 2.99 per cent; and transport accounted for 2.47 per cent.

The agency also revealed that last month, food inflation went down on a year-on-year basis by 14.41 per cent to 23.51 per cent from 37.92 per cent in the same period of last year.

On a month-on-month basis, food inflation was 1.67 per cent, with the average annual rate for the 12 months ending February 2025 over the previous 12-month average at 34.74 per cent, in contrast to 30.07 per cent in February 2024.

It stated that core inflation, which excludes the prices of volatile agricultural produces and energy, also declined by 2.12 per cent to 23.01 per cent, year-on-year in February 2025, compared to the 25.13 per cent in February 2024.

On a month-on-month basis, the core index stood at 2.52 per cent in February while the average 12-month annual inflation rate was 25.33 per cent for the 12 months ending February 2025, higher than 21.72 per cent in February 2024.

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Economy

SEC Suspends Centurion Registrars for Capital Market Infractions

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Centurion Registrars Limited

By Adedapo Adesanya

The Securities and Exchange Commission (SEC) has announced the suspension of Centurion Registrars Limited, including its directors and sponsored individuals from the capital market.

The suspension was announced by the commission in a statement titled Additional Enforcement Measures on Erring Capital Market Operators.

The SEC stated, “All clients of Centurion Registrars are advised to contact Africa Prudential Plc for guidance.”

This is not the first time Centurion Registrars has had issues with the Nigerian government as it was convicted in 2022 by a Special Offences Court in Lagos over fraud involving N206.5 million stocks after it was arraigned by the Economic and Financial Crimes Commission (EFCC).

The latest action of the SEC on the company is part of the agency’s broader efforts in 2025 to crack down on capital market operators it deems illegal to sanitise the investment environment in Nigeria.

Recall that the regulator revoked the registration of Mainland Trust Limited as a capital market operator, citing regulatory non-compliance and outstanding complaints against the company.

In a related development, the commission also said it would publish the names of Capital Market Operators who violate market regulations in its Name and Shame journal.

The SEC said the decision reflects a zero-tolerance policy for infractions in the capital market and aligns with newly revised enforcement strategies.

According to the notice, “The publication will be in addition to the sanctions and penalties for the respective infractions prescribed in the ISA 2007 and the SEC rules and regulations.”

Business Post had reported that the SEC listed mainstreaming the Nigerian capital market into the economy as its top priority in 2025.

Mr Emomotimi Agama, the Director General of SEC, said this in his New Year 2025 message to the capital market community on Monday.

He also said the commission would intensify efforts to eliminate Ponzi and pyramid schemes, thereby fostering an environment for genuine investment opportunities to thrive in 2025.

He said that protecting investors remained a cornerstone of the commission’s mission.

Mr Agama also said that the commission would prioritise key initiatives aimed at deepening market integrity, enhancing investor confidence and driving economic growth.

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