By Modupe Gbadeyanka
Trading at the Nigerian Stock Exchange on Thursday gained strength a day after the country’s economy went into recession.
The market capitalisation recorded a growth of N282bn at the close of trading on Thursday with a total of 25 stocks appreciating in price, while 13 recording price declines.
In all, the market traded on 229.225 million shares worth N2.117bn in 3,243 deals.
The NSE market capitalisation soared to N9.760tn from N9.478tn, while the NSE All-Share Index also closed at 28,419.92 basis points from 27,599.03 basis points.
The highest index point attained in the course of trading was 28,419.92 basis points, while the lowest and average index points were 27,368.41 and 27,666.28 basis points respectively.
Dangote Cement Plc, CAP Plc, FCMB Group Plc, AIICO Insurance Plc and Wema Bank Plc emerged as the top five gainers.
The shares of Dangote Cement appreciated by N15.11 (8.59 per cent) to close at N191 from N175.89, while those of CAP closed at N31.57 from N30.09, gaining N1.48 (4.92 per cent).
FCMB share price also appreciated by N0.05 (4.90 per cent) to close at N1.07 from N1.02, while AIICO shares soared to N0.66 from N0.63, gaining N0.03 (4.76 per cent).
Wema Bank shares also gained N0.03 (4.55 per cent) to close at N0.69 from N0.66.
Other gainers were Sterling Bank Plc, Fidson Plc, Trans-nationwide Express Plc, NPF Microfinance Bank Plc, Law Union and Rocks Insurance Plc, Fidelity bank Plc, amonmg others.
On the other hand, Caverton Offshore Support Group Plc, Tripple G Plc, Chellaram Plc, May and Baker Nigeria Plc, Cutix Plc, among others emerged as the top five losers.
The NSE had on Wednesday, appreciated by N36bn despite confirmation by the Nigerian Bureau of Statistics that the economy was in recession.
The equity market maintained positive momentum, appreciating by 0.39 per cent.
The NSE market capitalisation rose to N9.478tn from NN9.442tn, while the All-Share Index closed at 27,599.03 basis points from 27,493.12 basis points.
A total of 262.614 million shares valued at N4.881bn exchanged hands in 3,302 deals.
The second quarter 2016 Gross Domestic Product data showed a contraction of 2.06 per cent year-on-year (Q1 2016: -0.36 per cent). July headline inflation spiked to 17.1 per cent year-on-year from 16.5 per cent and unemployment rate jumped to 13.3 per cent from 12.1 per cent.
On the global scene, markets traded mixed as investors reacted to a slew of data from the Eurozone and looked forward to the key August United States non-farm payroll data due Friday.
Having lost in the previous session, the oil and gas and financial services sectors rebounded to lead advances, following gains on Seplat Petroleum Development Company Limited(+10.25 per cent), Oando Plc (0.61 per cent), Guaranty Trust Bank Plc (1.53 per cent), Ecobank Transnational Incorporated Plc (0.35 per cent) and FBN Holdings Plc (1.67 per cent).
The consumer goods and industrial goods sectors continued on an upward trend, albeit marginal, as 7UP Bottling Company Plc (9.38 per cent gains), Honeywell flour Mill Plc (five per cent loss), Dangote Cement Plc (0.22 per cent gain) and Julius Berger Nigeria Plc (9.71 per cent loss) traded mixed.
Market breadth turned negative with 19 advances and 21 declines.
Unlisted Securities Depreciate by 0.41% Friday
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange returned to the bearish zone on Friday, January 21 after back-to-back stalemates as it depreciated by 0.41 per cent, driven by the negative price movement in Central Securities Clearing Systems (CSCS) Plc.
CSCS Plc closed at N19.38 per unit after moving down by 57 kobo or 2.7 per cent from its previous day’s value of N19.90.
The depreciation in this stock weakened the market capitalisation by N2.6 billion to N630.46 billion from N633.06 billion and slowed the NASD Unlisted Securities Index (NSI) by 3.07 points to wrap the session at 744.54 points compared with 747.61 points of the previous session.
However, there was a surge in the volume of securities traded at the bourse as investors exchanged 4.1 million units, 103,160 per cent higher than the 4,000 units of securities transacted a day earlier.
Likewise, the value of shares traded at the session swelled to N86.9 million, which by evaluation is 11,227.6 per cent higher than N767,100 posted on Thursday.
These transactions were carried out in eight deals, 300 per cent higher than the two deals carried out at the preceding trading session.
Business Post reports that the unlisted securities market wrapped the day without a price gainer.
At the close of trading, the most traded stock by volume on a year-to-date basis was CSCS Plc with 653.6 million units worth N13.7 billion, VFD Group Plc followed with 916,161 units valued at N331.5 million, while Friesland Campina WAMCO Nigeria Plc has traded 205,566 units of its stocks valued at N24.3 million.
Also, CSCS ended the trading session as the most traded stock by value on a year-to-date basis with the sale of 653.6 million units of its securities valued at N13.7 billion, followed by VFD Group Plc with a turnover of 916,161 units worth N331.5 million, while Friesland Campina WAMCO Nigeria Plc has transacted 205,566 units of its stocks valued at N24.3 million.
Naira Falls at I&E as Bears Wipe $1trn from Crypto Market
By Adedapo Adesanya
The Naira recorded a 37 kobo or 0.09 per cent loss against the US Dollar at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market as it traded at N415.10/$1 compared with N414.73/$1 it was traded on Thursday.
It was observed that the Naira came under pressure during the trading session with the value of transactions rising by 56.2 per cent or $60.7 million at the market window to $168.62 million from the preceding day’s $107.92 million.
In the same vein, the local currency depreciated against the American currency at the interbank segment of the market yesterday by 5 kobo or 0.1 per cent to N411.95/$1 from the previous day’s N411.90/$1.
However, the local currency lost 60 kobo against the Pound Sterling to trade at N552.75/£1 in contrast to N553.35/£1 it closed on Thursday and against the Euro, it depreciated by N2.64 to N448.79/€1 from N446.15/€1.
In a related development, the crypto market bled yesterday, with the Federal Reserve intending to withdraw stimulus from the market, riskier assets in the world such as the assets have suffered from over $1 trillion lost in market capitalisation so far.
Russia also added to the fear that seems to be gripping cryptocurrencies as the country’s central bank issued a harsh report on cryptocurrencies, including a potential ban on mining and trading.
Bitcoin (BTC), the largest digital asset, lost more than 9 per cent on Friday and dropped below $36,000, its lowest level since July.
Since its peak in November, it has lost over 45 per cent of its value as it traded at the Naira equivalent of N20,376,819.45.
Other digital currencies have suffered just as much, if not more, with Dash (DASH) plunging 19.7 per cent to trade at N57,825.35, Litecoin (LTC) moved down by 15.9 per cent to trade at N61,392.61, while Binance Coin (BNB) recorded a 15.6 per cent to trade at N152,054.69.
Cardano (ADA) went south by 13.1 per cent to trade at N650, Ripple (XRP) fell by 13.0 per cent to trade at N350.32, Dogecoin (DOGE) declined by 11.3 per cent to sell at N84.80, Tron (TRX) depreciated by 5.9 per cent to N35.99, Ethereum (ETH) made a 5.0 per cent loss to sell at N1,699,900.00, while the US Dollar Tether (USDT) made a 0.2 per cent depreciation to sell for N575.01.
Oil Again Falls Under Pressure of US Inventories Rise, Profit Taking
By Adedapo Adesanya
Oil prices closed in the bearish territory on Friday, falling for another session pressured by an unexpected rise in US crude and fuel inventories after investors took profits after the benchmarks touched seven-year highs earlier in the week.
Brent crude dropped 49 cents or 0.55 per cent to trade at $87.89 per barrel while the US West Texas Intermediate (WTI) lost 41 cents or 0.48 per cent to settle at $85.14 per barrel.
However, both crude benchmarks rose for a fifth week in a row, gaining around 2 per cent this week, showing that prices were up more than 10 per cent so far this year on concerns over tightening supplies.
The Energy Information Administration (EIA) reported the first US crude build since November in the week just as fuel inventories hit an 11-month high in the world’s largest oil consumer.
Crude inventories rose by 515,000 barrels in the week to January 14 to 413.8 million barrels, compared with analysts’ expectations of a 938,000-barrel drop.
Earlier in the week, both Brent and WTI rose to their highest levels since October 2014.
But the latest pullback happened due to a combination of pre-weekend profit-taking and the absence of fresh bullish catalysts.
Analysts also said they expect the current pressure on prices to be limited owing to supply concerns and rising demand.
Tensions in Eastern Europe and the Middle East are also heightening fears of supply disruption as top US and Russian diplomats made no major breakthrough at talks on Ukraine on Friday.
There was, however, an agreement to keep talking to try to resolve a crisis that has stoked fears of a military conflict.
Amid these, there are forecasts that prices will perform their best in recent times this year due to low spare OPEC+ capacity, low inventories and geopolitical tensions rising.
Analysts at Bank of America said they expect to see Brent at around $120 a barrel in mid-2022.
UBS expects crude oil demand to reach record highs this year and for Brent to trade in a range of $80-$90 a barrel for now.
Morgan Stanley has raised its Brent price forecast to $100 a barrel in the third quarter, up from its previous projection of $90.
Meanwhile, in the United States, energy firms cut oil rigs this week for the first time in 13 weeks.
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