Economy
Performance of Nigerian Businesses Worsens
By Adedapo Adesanya
A new report by the Nigeria Economic Summit Group (NESG) in partnership with Stanbic IBTC has revealed that the performance of business in Nigeria weakened further in October 2024.
The NESG-Stanbic IBTC Business Confidence Monitor (BCM) for October noted that businesses continue to be strained by economic challenges such as high inflation and interest rates coupled with the instability of the Naira in the foreign exchange market.
According to the report, the performance of businesses in the country in October was at -23.24, indicating performance weaker than the previous month.
The top impediments to growth were inadequate power supply, insecurity and limited access to financing.
The report said Nigeria’s business environment is facing significant challenges due to persistent inflation, which is raising costs and reducing purchasing power.
Furthermore, it noted major obstacles include limited access to finance, low employment levels, and restricted cash flow, all of which are pushing up operational costs, discouraging investment, and weakening demand.
Also, Naira instability was highlighted as raising import costs and complicating financial planning, with low export performance also affecting profitability.
The report states, “The country’s business operating environment continues to face severe challenges, with several underlying economic issues intensifying. Inflation remains high, eroding purchasing power and raising operational costs. Additionally, the Central Bank of Nigeria’s (CBN) hike in the Monetary Policy Rate (MPR) has led to higher credit costs, further straining business operations.”
“Moreover, the Naira instability has raised import costs and complicated financial planning, negatively impacting profitability and pricing strategies. Export performance has also been weak, with businesses reporting below normal export order books, resulting in an export index of -12.65.”
In October 2024, the NESG-Stanbic IBTC BCM index for the Agriculture sector showed a mildly negative business performance at -30.47 points.
The report noted that ongoing flooding in key food-producing states, worsened by prolonged rainfall in the fourth quarter of 2024, resulted in extensive losses of farmland, crops, yields, and grazing areas.
All five agriculture sub-sectors faced negative performance, with the Agro-Allied sub-sector experiencing only a slight decline at -0.99, while the remaining four sub-sectors suffered significant business performance declines.
Nigeria’s Manufacturing sector encountered considerable difficulties in October 2024, as the NESG-Stanbic IBTC BCM index fell to -28.72, indicating mildly negative business performance and a marked decline from the prior month.
The Services BCM index recorded -6.19 points, indicating mildly negative business performance. The decline highlights increasing operational challenges, mainly due to rising energy costs from frequent national grid failures, ongoing fuel shortages, and higher petrol prices.
The Trade BCM index was reported at -23.45, indicating mildly negative business performance in the sector. Within its sub-economic activities, retail showed a mildly negative performance at -14.99, while Wholesale experienced a notably negative performance at -31.90.
By Dipo Olowookere
Christmas came early for the Nigerian Exchange (NGX) Limited as it extended its positive run on Tuesday with a 0.82 per cent growth.
The last trading session before Christmas was bullish as investors embraced Santa Claus rally, mopping up shares with sound fundamentals across the key sectors of the bourse.
During the session, the insurance index appreciated by 1.49 per cent, the banking space expanded by 0.98 per cent, the consumer goods counter improved by 0.49 per cent, the industrial goods counter gained 0.15 per cent and the energy sector jumped by 0.14 per cent.
Consequently, the All-Share Index (ASI) went up by 829.88 points to 102,186.03 points from 101,356.15 points and the market capitalisation grew by N503 billion to N61.944 trillion from N61.441 trillion.
MRS Oil gained 10.00 per cent to trade at N217.80, Ikeja Hotel improved by 9.95 per cent to N11.05, Multiverse advanced by 9.90 per cent to N5.55, SAHCO rose by 9.84 per cent to N30.70, and John Holt increased by 9.69 per cent to N6.45.
Conversely, Thomas Wyatt shed 10.00 per cent to quote at N1.71, Caverton shrank by 7.35 per cent to N2.27, Coronation Insurance declined by 5.03 per cent to N1.70, Haldane McCall slipped by 5.00 per cent to N4.75, and Livestock Feeds moderated by 5.00 per cent to N3.80.
When the market ended for the session to resume on Friday, 37 stocks were on the gainers’ chart and 21 stocks were on the losers’ table, representing a positive market breadth index and strong investor sentiment.
A total of 431.8 million shares worth N18.3 billion in 8,369 deals during the session compared with the 503.2 million shares valued at N16.3 billion in 12,490 deals, indicating a rise in the trading value by 12.27 per cent and a decline in the trading volume and number of deals by 14.19 per cent and 32.99 per cent, respectively.
The busiest equity for the session was UBA with 51.2 million units valued at N1.9 billion, Universal Insurance exchanged 49.6 million units for N25.1 million, C&I Leasing transacted 37.2 million units worth N134.0 million, Dangote Cement traded 34.3 million units worth N11.1 billion, and GTCO sold 17.4 million units valued at N1.0 billion.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.06 per cent gain on Tuesday, December 24, with the market capitalisation increasing by N620 million to close at N1.032 trillion compared with the N1.031 trillion it ended a day earlier.
Business Post reports that the NASD Unlisted Security Index (NSI) added 1.81 points to wrap the session at 3,011.59 points compared with 3,009.78 points recorded in the previous session.
The expansion recorded by the alternative stock exchange was triggered by Geo-Fluids Plc, which grew its price by 41 Kobo to N4.61 per unit from N4.20 per unit.
However, the price of UBN Property Plc went down by 20 Kobo at the Christmas Eve session to finish at N1.80 per share, in contrast to the N2.00 per share it ended a day earlier.
Yesterday, the market participants completed eight deals compared with the 31 deals carried out in the preceding trading session, representing a decline of 74.2 per cent.
In the same vein, the volume of securities traded in the session shrank by 38.9 per cent to 5.3 million units from the 8.3 million units recorded in the previous trading day, as the value of transactions decreased by 40.0 per cent to N23.8 million from N39.6 million.
At the close of business, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N4.0 billion, Okitipupa Plc came next with 752.4 million units valued at N7.8 billion, and Afriland Properties Plc occupied the third position with 297.7 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 752.4 million units valued at N7.8 billion, and Afriland Properties Plc with 297.7 million units sold for N5.3 billion.
The market will be closed for two days – December 25 and 26 – to mark the Christmas holidays and trading will resume on Friday, December 27.
By Adedapo Adesanya
The value of the Naira witnessed a depreciation of 0.07 per cent or N1.10 against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, December 24.
Data showed that the exchange rate of the local currency to its American counterpart closed on Christmas Eve at N1,540.65/$1, in contrast to the N1,539.55/$1 it was traded on Monday.
Similarly, the domestic currency weakened against the Pound Sterling in the official market yesterday by N7.44 to sell for N1,954.07/£1 compared with the previous day’s value of N1,946.63/£1 and against the Euro, it lost N3.16 to settle at N1,614.89/€1 versus the preceding day’s N1,611.73/€1.
Market analysts noted that the access of Bureaux de Change (BDCs) to the Central Bank of Nigeria’s-backed Electronic Foreign Exchange Matching System (EFEMS) platform has continued to keep a lid on the rates.
Also, increased December activity through the influx of tourists has helped strengthen the demand for the local currency.
In the black market on Tuesday, the Nigerian Naira appreciated against the greenback by N5 to sell at N1,650/$1 compared with the N1,655/$1 it was transacted a day earlier.
Meanwhile, the cryptocurrency market experienced a Santa rally during the trading session, with Bitcoin (BTC) rising by 4.1 per cent to quote at $98,152.89, and Dogecoin (DOGE) growing by 3.4 per cent to sell at $0.3327.
Further, Solana (SOL) jumped by 3.1 per cent to trade at $198.50, Ethereum (ETH) improved its value by 2.8 per cent to close at $3,498.25, Binance Coin (BNB) went up by 2.2 per cent to settle at $703.87, Cardano (ADA) rose by 2.1 per cent to finish at $0.9208, Ripple (XRP) expanded by 1.8 per cent to end the day at $2.29, and Litecoin (LTC) recorded a 1.7 per cent rise to trade at $108.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN
Pingback: Food, Transport, Electricity More Important to Nigerians Than | Business Post Nigeria