Connect with us

Economy

Stock Investors Lose N599bn as Profit-Taking Intensifies

Published

on

Attract Stock Investors

By Dipo Olowookere

For the 14th trading session, the Nigerian Exchange (NGX) Limited closed in the red zone after it depreciated by 1.04 per cent on persistent profit-taking.

Yesterday, the selling pressure by stock investors intensified, with the financial services sector suffering the most, as the banking space lost 5.75 per cent, and the insurance index down by 3.27 per cent.

Further, the consumer goods counter went down by 1.02, the industrial goods sector depreciated by 0.06 per cent, and the energy sector closed flat.

When trading activities ended for the session, the All-Share Index (ASI) decreased by 1,059.91 points to 100,717.21 points from 101,777.12 points, and the market capitalisation depleted by N599 billion to N56.962 trillion from N57.561 trillion.

Business Post reports that the market breadth index was negative after 50 stocks declined and seven stocks gained, representing a weak investor sentiment.

The quintet of Ellah Lakes, Cornerstone Insurance, Fidelity Bank, Vitafoam Nigeria, and Japaul lost 10.00 per cent each during the session to settle at N3.15, N1.71, N8.10, N18.90, and N1.80 apiece.

Conversely, Morison Industries gained 9.96 per cent to close at N3.09, Thomas Wyatt appreciated by 8.63 per cent to N2.14, Universal Insurance rose by 5.56 per cent to 38 Kobo, Omatek jumped by 3.80 per cent to 82 Kobo, and Secure Electronic Technology soared by 3.45 per cent to 60 Kobo.

The busiest equity for the session was Access Holdings, which sold 62.9 million units valued at N1.1 billion, and GTCO traded 47.4 million units for N1.7 billion. UBA transacted 45.6 million units worth N1.1 billion, Zenith Bank exchanged 41.4 million units valued at N1.5 billion, and Fidelity Bank traded 23.1 million units worth N189.4 million.

At the close of transactions, traders bought and sold 403.9 million equities valued at N8.4 billion in 10,170 deals versus the 326.6 million equities worth N7.2 billion traded in 10,777 deals on Monday, indicating a decline in the number of deals by 5.63 per cent, and a rise in the trading volume and value by 23.6 per cent, and 16.67 per cent, respectively.

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 [email protected]

1 Comment

1 Comment

  1. Pingback: Daily Business Headlines – APRIL 17, 2024 – Alpha Morgan Capital Managers Limited

Leave a Reply

Economy

Oil Jumps on Fresh Sanctions Amid Ease in Interest Rates, Demand Boost

Published

on

crude oil supply disruption

By Adedapo Adesanya

Oil climbed by about 2 per cent on Friday on expectations that additional sanctions on Russia and Iran could tighten supplies and that lower interest rates in Europe and the US could boost fuel demand.

Brent futures went up by $1.08 or 1.5 per cent to settle at $74.49 a barrel and the US West Texas Intermediate (WTI) futures expanded by $1.27 or 1.8 per cent to close at $71.29 per barrel.

European Union ambassadors agreed to impose a 15th package of sanctions on Russia this week over its war against Ukraine, targeting its shadow tanker fleet.

The sanctions would target vessels from third countries supporting Russia’s war in Ukraine and add more individuals and entities to the sanctions list.

The sanctions package is likely to be formally adopted at a meeting of EU foreign ministers on Monday and will target close to 30 entities, over 50 individuals and 45 tankers.

Also, the US is considering similar moves that might target some Russian oil exports, before Donald Trump returns to the White House.

Britain, France and Germany told the United Nations Security Council they were ready if necessary to trigger a so-called “snap back” of all international sanctions on Iran to prevent the country from acquiring nuclear weapons.

The move comes as Iran has suffered a series of strategic setbacks, including Israel’s assault on Tehran’s proxy militias Hamas in Gaza and Hezbollah in Lebanon and the ouster of Iranian ally Bashar al-Assad in Syria.

Meanwhile, data from China this week showed that crude imports in the world’s top importer grew annually in November for the first time in seven months.

There are expectations that China’s crude imports will remain elevated into early 2025 as refiners opt to lift more supply from top exporter Saudi Arabia, drawn by lower prices, while independent refiners rush to use their quota.

The International Energy Agency (IEA) increased its forecast for 2025 global oil demand growth to 1.1 million barrels per day from 990,000 barrels per day last month, citing China’s stimulus measures.

The Paris-based energy watchdog forecast an oil surplus for next year, when nations not in the Organisation of the Petroleum Exporting Countries (OPEC) and allies, OPEC+ group, are set to boost supply by about 1.5 million barrels per day, driven by Argentina, Brazil, Canada, Guyana and the US.

The United Arab Emirates (UAE), an OPEC member, plans to reduce oil shipments early next year as OPEC+ seeks tighter discipline.

Continue Reading

Economy

Seplat to Boost Nigeria’s Oil Production With Mobil Assets Acquisition

Published

on

Seplat Energy

By Adedapo Adesanya

Seplat Energy Plc will revive hundreds of Nigerian oil wells laying fallow after completing the acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil.

The company said it aims to lift oil output to about 200,000 barrels a day, a move that will help boost Nigeria’s oil production levels, as it aims to reach 2 million barrels per day next year.

The transaction, according to Seplat, “is transformative for Seplat Energy, more than doubling production and positioning the company to drive growth and profitability, whilst contributing significantly to Nigeria’s future prosperity.”

The completion of the Seplat-ExxonMobil deal has created Nigeria’s leading independent energy company, with the enlarged company having equity in 11 blocks (onshore and shallow water Nigeria); 48 producing oil and gas fields; 5 gas processing facilities; and 3 export terminals.

Recall that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in October approved the deal as part of a series of approvals, while it blocked Shell’s asset sale of up to $2.4 billion to the Renaissance consortium.

The acquisition of the entire issued share capital of MPNU adds the following assets to the Seplat Group: 40 per cent operated interest in OML 67, 68, 70 and 104; 40 per cent operated interest in the Qua Iboe export terminal and the Yoho FSO; 51 per cent operated interest in the Bonny River Terminal (‘BRT’) NGL recovery plant; 9.6 per cent participating interest in the Aneman-Kpono field; and approximately 1,000 staff and 500 contractors will transition to the Seplat Group.

MPNU adds substantial reserves and production to Seplat Energy; 409 million barrels of oil equivalent (MMboe) 2P reserves and 670 MMboe 2P + 2C reserves and resources as at 30 June 2024 and 6M 2024 average daily production of 71.4 kboepd (thousand barrels of oil equivalent).

Business Post reports that Seplat will be part of the payment this year, and will defer some to next year,

Speaking on the transaction, the Chairman of Seplat Energy, Mr Udoma Udo Udoma commended President Bola Tinubu for supporting this transaction and appreciated the support and diligence of the various ministries and regulators for all the work to reach a successful conclusion.

“We are delighted to welcome the MPNU employees to Seplat Energy. We are excited to begin our journey in a new region of the country, and we look forward to replicating the positive impacts we have achieved within our communities in our current areas of operations.

“Seplat’s mission is to deliver value to all our stakeholders, and we treasure the good relationships we have developed with the government, regulators, communities and our staff.”

On his part, the chief executive of Seplat Energy, Mr Roger Brown, described the acquisition as a major milestone, adding, “I extend my thanks to the entire Seplat team for their hard work and perseverance to complete this transaction.

“MPNU’s employees and contractors have a strong reputation for safety and operational excellence, and I welcome them to the Seplat Energy Group.

“We have acquired a company with one of the best portfolios of assets and related infrastructure in a world-class basin, providing enormous potential for the Seplat Group. Our commitment is to invest to increase oil and gas production while reducing costs and emissions, maximising value for all our stakeholders.

“MPNU is a perfect fit with our strategy to build a sustainable business that can deliver affordable, accessible and reliable energy for Nigeria alongside attractive returns to our shareholders”.

Continue Reading

Economy

PenCom Projects N22trn Pension Assets for 2024

Published

on

PenCom old age poverty

By Adedapo Adesanya

The National Pension Commission (PenCom) is projected to close the year with over N22 trillion in pension assets impacted by challenges like inflation and monetary policies.

This is according to PenCom Director-General, Mrs Omolola Oloworaran, at a press conference in Abuja on Thursday.

She said as of October 2024, the Contributory Pension Scheme (CPS) had 10.53 million registered contributors and pension fund assets worth N21.92 trillion.

Speaking at the conference-themed Tech-driven Transformation Shaping the Pension Landscape, which showcased PenCom’s strategic commitment to innovation, she said that the numbers reflected the agency’s unwavering commitment to fund safety, prudent management, and sustainable growth.

She explained that the pension environment was impacted by the wider economic challenges facing the country, noting that the sector battled multi-year high inflation, Naira devaluation, and the lingering effects of unorthodox monetary policies by the Central Bank of Nigeria (CBN).

Business Post reports that the apex bank hiked interest rates by 875 basis points this year alone to tackle persistent inflation which peaked at 33.8 per cent as of October.

She said that these challenges eroded the real value of pension funds and impacted contributors’ purchasing power.

“To address these issues, the commission has initiated a comprehensive review of its investment regulations.

“It is focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign currency-denominated investments.

“The goal is to safeguard contributor savings and ensure resilience against future economic volatility,” she said.

She restated the commission’s commitment to expanding pension coverage, particularly through the advanced micro-pension plan designed to encourage participation from the informal sector using technology.

“This initiative will make it easier for everyday Nigerians to save for retirement, aligning with our vision of inclusive growth and financial stability for all.

“The backlog in retirement benefits for retirees of the Federal Government’s Ministries, Departments, and Agencies (MDAs) will soon be settled.

“The federal government recently disbursed N44 billion under the 2024 budget to settle approved pension rights.

“We are collaborating with the Federal Government to institutionalise a sustainable solution to ensure retirees receive their benefits promptly, eliminating delays,” Mrs Oloworaran said.

She said that PenCom’s technology-driven transformation aimed to make the CPS more accessible, reliable, and sustainable.

“From data management to seamless contributions and regulatory supervision, we are paving the way for a future where the pension industry serves all Nigerians effectively,” she said,

Mrs Oloworaran also said that the e-application portal for pension clearance certificates has replaced the manual processes and enhanced the ease of doing business in the sector.

“Since its deployment, 38,528 pension clearance certificates have been issued. This initiative ensures compliance and secures the future of Nigerians working in organisations that interact with the government,” she said.

Continue Reading

Trending