By Adedapo Adesanya
Despite recording two price gainers, the NASD Over-the-Counter (OTC) Securities Exchange closed lower by 0.50 per cent on Wednesday on the back of a decline in the share price of Central Securities Clearing System (CSCS) Plc.
The stock depreciated by N1.17 or 7.4 per cent at the midweek session to close at N15.83 per unit as against the previous day’s N17.00 per unit.
CSCS Plc overpowered the gains printed by the duo of Niger Delta Exploration and Production (NDEP) Plc and Food Concepts Plc at the unlisted securities market yesterday.
NDEP Plc gained N5 or 2.6 per cent to trade at N195.00 per share compared with Tuesday’s closing price of N190.00 per share, while Food Concepts Plc rose by 4 kobo or 4.6 per cent to 87 kobo per share in contrast to 83 kobo per share of the preceding session.
At the close of transactions, the bourse lost N4.71 million as the market capitalisation finished at N928.73 billion versus the N933.44 billion it quoted on Tuesday.
In the same vein, the NASD Unlisted Securities Index (NSI) shed 3.58 points to end the day at 706.33 points as against the 709.91 points it recorded in the previous session.
During the trading day, the volume of transactions increased by 6,583.2 per cent to 25.3 million units from 377,862 units, while the value of trades rose by 24.2 per cent to N35.8 million from N28.9 million, with the number of deals declining by 50 per cent to 16 deals from 32 deals.
AG Mortgage Bank Plc maintained its position as the most active stock by volume on a year-to-date basis with 2.3 billion units worth N1.2 billion, CSCS Plc stood in second place with 661.6 million units worth N13.9 billion, while Food Concepts Plc was in third place with 94.0 million units valued at N77.8 million.
On the flip side, CSCS Plc, with the sale of 661.6 million units for N13.9 billion, was the most active stock by value on a year-to-date basis and was trailed by AG Mortgage Bank Plc with 2.3 billion units valued at N1.2 billion, and FrieslandCampina WAMCO Nigeria Plc with 8.3 million units valued at N1.1 billion.
JUST IN: CBN Raises Benchmark Interest Rate to 13%
By Dipo Olowookere
For the first time in two years, the Monetary Policy Rate (MPR) has been raised by the Central Bank of Nigeria (CBN) to 13.0 per cent from 11.5 per cent.
Mr Godwin Emefiele, the Governor of the CBN, who announced this development on Tuesday in Abuja, explained that the decision to increase the benchmark interest rate was taken at the Monetary Policy Committee (MPC) meeting held yesterday and today.
While addressing financial reporters this afternoon, Mr Emefiele said members of the committee were unanimous with the decision to hike the rates as it was the best thing to do after holding them for about two years.
According to the central bank chief, one of the reasons for raising the rate is to control liquidity ahead of the 2023 general elections as politicians would be expected to flood the system with cash in a bid to woo voters.
However, the other parameters were left unchanged by members at the gathering as the Asymmetric corridor remained around the MPR at +100/-700bps, the Cash Reserve Ratio (CRR) at 27.5 per cent and the Liquidity Ratio (LR) at 30.0 per cent.
Nigeria’s GDP Grows by 3.11% in Q1, What Next?
By Lukman Otunuga
There are two ways one could interpret Nigeria’s latest Gross Domestic Product (GDP) figure of 3.11% in Q1 of 2022.
The optimists will say the country’s economy grew for the sixth consecutive quarter in Q1 while pessimists may highlight how economic growth slowed for the third consecutive quarter.
Either way, Nigeria’s economy continues to display resilience against external and domestic risks. With the improvement in the non-oil sector driving growth, this may brighten the growth outlook. But could these be signs of Nigeria breaking away from the chains of oil reliance to derive growth from sustainable sources? It may be too early to come to any meaningful conclusion. However, the report is encouraging and illustrates progress made by the country in reclaiming stability post-Covid-19.
With economic conditions somewhat improving, the Central Bank of Nigeria (CBN) is unlikely to raise interest rates this week. Given how Africa’s largest economy has been able to maintain growth in the past six quarters on the back of loose monetary policies by the CBN, a rate hike could disrupt Nigeria’s economic recovery.
As the global war against inflation rages on, central banks are stepping up.
However, the CBN is likely to remain on the sidelines for now. Nevertheless, inflation is still a cause for concern with consumer prices accelerating for the third straight month to 16.82% in April 2022.
With the general elections around the corner, pre-election spending could translate to rising price pressures. On top of this, the widening policy divergence between the Federal Reserve and the CBN could punish the Naira.
It’s worth keeping in mind that the dollar remains heavily supported by aggressive Fed rate hike bets and is likely to remain strong for the rest of 2022. A powerful dollar is bad news for emerging market currencies including the Naira which continues to depreciate in both the official and unofficial markets.
Lukman Otunuga is the Senior Research Analyst at FXTM
NGX All Share Index Weakens Further by 0.13%
By Dipo Olowookere
The bearish sentiment on the floor of the Nigerian Exchange (NGX) Limited continued on Monday as the bourse further depreciated by 0.13 per cent.
Sustained profit-taking especially in the industrial goods sector contributed to the decline suffered during the session as the All Share Index (ASI) slumped by 68.45 points to close at 52,911.51 points compared with the previous session’s 52,979.96 points.
As for the market capitalisation, it depreciated by N37 billion amid sell-offs in 24 stocks to settle at N28.525 trillion as against last Friday’s closing value of N28.562 trillion.
On the first trading day of this week, the insurance sector depleted by 2.32 per cent, the industrial goods sector fell by 0.09 per cent, while the energy, banking and consumer goods counters increased by 0.28 per cent, 0.10 per cent and 0.05 per cent respectively.
Presco led the losers’ chart yesterday with a price decline of 10.00 per cent to trade at N180.00, Global Spectrum Energy Services lost 9.97 per cent to finish at N3.07, Neimeth fell by 9.66 per cent to N1.59, UAC Nigeria depreciated by 8.33 per cent to N13.20, while NEM Insurance retreated by 7.74 per cent to N4.05.
The gainers’ log had 22 members on Monday, with Conoil leading after its value improved by 9.95 per cent to N34.25. MRS Oil gained 9.93 per cent to quote at N14.95, McNichols appreciated by 9.86 per cent to N2.34, Academy Press increased its price by 9.76 per cent to N1.35, while NPF Microfinance Bank expanded by 8.02 per cent to N2.02.
On the activity chart, a total of 263.3 million stocks worth N3.6 billion exchanged hands in 4,856 deals during the session compared with 436.6 million stocks worth N3.2 billion bought and sold in 4,716 deals in the preceding session. This implied that the volume of trades depreciated by 39.68 per cent, while the value of trades and the number of deals increased by 10.15 per cent and 2.97 per cent respectively.
Jaiz Bank closed the day as the most active stock with the sale of 114.0 million units valued at N101.8 million, GTCO transacted 12.9 million shares for N302.8 million, Transcorp exchanged 12.8 million stocks worth N16.7 million, Access Holdings traded 11.7 million equities valued at N115.7 million, while Zenith Bank sold 8.6 million shares for N207.0 million.
Latest News on Business Post
- JUST IN: CBN Raises Benchmark Interest Rate to 13% May 24, 2022
- Famous Black and White Logos: Features and Benefits May 24, 2022
- LandWey to Deliver over 1000 Houses to Nigerians Soon May 24, 2022
- AfDB to Facilitate Nigeria’s Return to Agric Electronic Distribution System May 24, 2022
- Court Orders CBN, NDIC to Pay 1,116 Bank Workers N5.7bn May 24, 2022
- Nigeria’s GDP Grows by 3.11% in Q1, What Next? May 24, 2022
- NGX All Share Index Weakens Further by 0.13% May 24, 2022
- CSCS Leads NASD Bourse to 0.39% Loss May 24, 2022
- Nigerian Currency Now Trades N618/$1 at P2P, N420/$1 at I&E May 24, 2022
- Oil Settles Higher on Upbeat Demand Amid Bearish Threats May 24, 2022