Economy
Stock Market Indices Shrink 0.30% as Oando, Zenith Bank, Others Fall
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited was further put under pressure on Tuesday, giving up 0.30 per cent at the close of transactions due to profit-taking that started the previous session.
Investors went on selling spree after the Central Bank of Nigeria (CBN) directed banks to suspend the payment of dividends to shareholders, investment in foreign subsidiaries and issuance of bonuses to directors until they clean up their books as regards some big ticket loans, especially in the energy sector.
This development weakened investor sentiment and yesterday, the bourse ended with 29 price gainers and 35 price losers, indicating another negative market breadth index.
Transcorp Power was the worst-performing stock of the trading day after it lost 9.98 per cent to sell for N295.70, Oando declined by 9.97 per cent to N58.25, Ellah Lakes crumbled by 9.87 per cent to N4.29, Omatek shrank by 9.33 per cent to 68 Kobo, and Custodian Investment depreciated by 8.63 per cent to N22.75.
Conversely, Learn Africa gained 10.00 per cent to trade at N4.18, C&I Leasing appreciated by 10.00 per cent to N4.62, Mutual Benefits rose by 10.00 per cent to N1.10, University Press jumped by 9.82 per cent to N5.48, and Deap Capital expanded by 8.64 per cent to 88 Kobo.
Business Post reports that Customs Street witnessed high traffic on Tuesday as market participants try to reduce their exposure to banking stocks because of the new CBN directive.
Zenith Bank was the most active stock after it sold 96.2 million units for N4.3 billion, GTCO transacted 83.4 million units worth N6.3 billion, UBA exchanged 65.2 million units valued at N2.1 billion, Access Holdings traded 64.2 million units worth N1.3 billion, and Ecobank exchanged 51.7 million units valued at N1.6 billion.
When trading activities closed for the day, the turnover stood at 787.3 million units sold for N25.7 billion in 23,170 deals versus the 721.8 million units worth N22.0 billion traded in 22,100 deals on Monday, indicating an increase in the trading volume, value, and number of deals by 9.08 per cent, 16.82 per cent, and 4.84 per cent apiece.
A look at the sectorial performance showed that the insurance and the industrial goods sectors experienced bargain-hunting activities during the session, closing higher by 0.40 per cent and 0.16 per cent, respectively.
However, the commodity index fell by 1.92 per cent, the energy space decreased by 1.25 per cent, the consumer goods counter tumbled by 0.50 per cent, and the banking industry crashed by 0.20 per cent.
Consequently, the All-Share Index (ASI) moderated by 348.61 points to 114,910.16 points from 115,258.77 points and the market capitalisation went down by N183 billion to N72.497 trillion from N72.680 trillion.
Economy
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Conclusion
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Economy
OTC Exchange Begins Week With 0.39% Loss
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange fell by 0.39 per cent on Monday, January 12, after it closed higher in every trading day of last week.
The loss recorded yesterday took out N8.5 billion from the unlisted securities market, closing at N2.184 compared with the preceding session’s closing value of N2.193 trillion.
In the same vein, the NASD Unlisted Security Index (NSI) went down by 14.2 points during the session to 3,651.48 points from the 3,665.68 points it finished last Friday.
The decline was influenced by three securities, with Afriland Properties Plc down by N1.55 to end at N14.75 per unit compared with the previous N16.30 per unit, and NASD Plc declining by N1.00 to N59.00 per share from N6.00 pr share, as Food Concepts Plc slid by 34 Kobo to finish at N3.06 per unit versus N3.40 per unit.
On the flip side, three securities gained weight, with FrieslandCampina Wamco Nigeria Plc appreciating by N6.23 to N68.70 per share from N62.47 per share, Central Securities Clearing System (CSCS) Plc added 45 Kobo to close at N43.07 per unit versus N42.62 per unit, and Geo-Fluids Plc gained 2 Kobo to settle at N6.84 per share versus N6.82 per share.
During the session, the trading volume soared by 826 per cent to 4.03 million units from 434,845 units, the trading value skyrocketed by 579.1 per cent to N46.8 million from N6.9 million, and the number of deals jumped by 118.2 per cent to 48 deals from 22 deals.
When trading activities closed for the day, CSCS Plc remained the most active stock by value on a year-to-date basis with 1.5 million units exchanged for N57.6 million, followed by Geo-Fluids Plc with 6.4 million units valued at N43.3 million, and FrieslandCampina Wamco Nigeria Plc with 379,749 units worth N24.4 million.
In terms of volume, Geo-Fluids Plc led with 6.4 million units sold for N43.3 million, trailed by Industrial and General Insurance (IGI) Plc with 2.9 million units traded for N1.9 million, and CSCS Plc with 1.5 million units valued at N57.6 million.
Economy
Naira Appreciates to N1,421/$1 at Official Market
By Adedapo Adesanya
The Naira appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, January 12 by N1.71 to trade at N1,421.46/$1, in contrast to the preceding session’s N1,423.17/$1.
However, the local currency further depreciated against the Pound Sterling in the same market window yesterday by N3.81 to close at N1,915.84/£1 compared with last Friday’s price of N1,912.03/£1 and lost N3.55 on the Euro to quote at N1,661.68/€1 versus N1,658.13/€1.
In the same vein, the domestic currency depleted against the Dollar at the GTBank FX desk during the trading session by N4 to to settle at N1,431/$1 compared with the previous trading day’s rate of N1,427/$1 and closed flat in the black market at N1,490/$1.
The appreciation of the Nigerian currency against its American counterpart in the official market was supported by foreign portfolio investors’ inflow with support from non-bank corporate supply, leaving it within the N1,350/$1 – N1,450/$1.
“We anticipate that the CBN will emphasise exchange rate stability over rapid appreciation through 2026, supported by prudent policy execution and effective reserve management,” Coronation Merchant Bank research said in an update.
Despite a differential against other currencies, market analysts noted that stronger external inflows from FPIs, improving current account dynamics, and more disciplined FX management by the authorities, will give the Naira stronger footing.
As for the cryptocurrency market, most tokens tracked by this newspaper were largely down with traders seeing the market settle into equilibrium after leverage was flushed and liquidity thinned.
Market analysts noted that with spot demand soft and no clear institutional catalyst, price discovery continues to shift to where thinner liquidity and narrative trades can overwhelm fundamentals.
Litecoin (LTC) lost 4.6 per cent to trade at $76.25, Solana (SOL) depreciated by 1.6 per cent to $140.23, Cardano (ADA) slid by 1.4 per cent to $0.3914, Ripple (XRP) slumped by 0.9 per cent to $2.05, Ethereum (ETH) went down by 0.8 per cent to $3,128.74, and Dogecoin (DOGE) decreased by 0.5 per cent to $0.1392.
On the flip side, Binance Coin (BNB) appreciated by 0.3 per cent to $908.87, and Bitcoin (BTC) increased by 0.1 per cent to $91,916.73, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
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