Economy
Weekly Investment in Stocks Drops as Investors Monitor Environment
By Dipo Olowookere
The decision of politicians to stir up the race to Aso Rock in 2023 very earlier in 2022 is already taking its toll on the stock market in Nigeria.
Last week, former Governor of Lagos State and National Leader of the ruling All Progressives Congress (APC), Mr Bola Tinubu, declared his interest to President Muhammadu Buhari to contest the nation’s highest political position next year.
After his open declaration at the Presidential Villa, others started to announce their interest in the same position and the race started to get interesting with some parts of the country rooting for Vice President Yemi Osinbajo, who is believed to be the political godson of Mr Tinubu.
For investors in the capital market, they never expected this to occupy the ecosystem in the first month of 2022. They had thought the race to Aso Rock would get heated up by the second or third quarter of the year.
With the development, some of them had to trade cautiously and this may have caused the decline in the weekly investment in stocks last week.
According to data obtained by Business Post, a total of 1.6 billion shares worth N32.7 billion were traded in 22,607 deals as against the 2.0 billion shares worth N59.0 billion transacted in 15,750 deals in the first week of the year, which only had four trading sessions.
A breakdown showed that financial stocks dominated the activity chart in the week with 731.3 million units valued at 6.5 billion traded in 10,822 deals, contributing 45.71 per cent and 19.92 per cent to the total trading volume and value respectively.
Conglomerate equities trailed with 403.7 million units worth N452.9 million in 1,537 deals, while consumer shares exchanged 314.8 million units worth N17.8 billion in 4,101 deals.
Transcorp, BUA Foods and Jaiz Bank were the most active stocks in the five-day trading week, with the sale of 775.7 million units valued at N16.6 billion executed in 2,644 deals, accounting for 48.49 per cent and 50.82 per cent of the total trading volume and value respectively.
A total of 33 equities appreciated in price during the week, lower than 40 equities in the previous week, while 35 equities depreciated in price, higher than 31 equities in the previous week, with 88 equities closing flat, lower than 84 equities recorded in the previous week.
Analysis indicated that BUA Foods was the biggest price riser as its value went up by 24.06 per cent to N66.00, followed by Transcorp, which gained 16.33 per cent to trade at N1.14.
Jaiz Bank grew by 15.25 per cent week-on-week to sell for 68 kobo, Fidson appreciated by 13.64 per cent to quote at N7.50, while Academy Press improved by 10.00 per cent to trade at 66 kobo.
On the reverse side, Sunu Assurances ended the week as the heaviest price loser after its equity price went down by 16.22 per cent to close at 31 kobo.
Mutual Benefits fell by 12.90 per cent to 27 kobo, Berger Paints dropped 9.94 per cent to N7.70, Northern Nigerian Flour Mills depreciated by 9.66 per cent to N6.55, while Custodian Investment decreased by 9.49 per cent to N7.15.
Despite the low trades, the All-Share Index and market capitalisation of the Nigerian Exchange (NGX) Limited appreciated by 1.37 per cent week-on-week to 44,454.67 points and N23.951 trillion respectively.
Similarly, all other indices finished higher with the exception of NGX CG, insurance, NGX AFR Bank Value, consumer goods and Lotus II indices, which depreciated by 0.79 per cent, 1.54 per cent, 0.07 per cent, 4.35 per cent and 1.34 per cent respectively, while the ASem, NGX Growth I and sovereign bond indices closed flat.
By Aduragbemi Omiyale
On Tuesday, December 17, 2024, President Bola Tinubu will present the 2025 budget to a joint session of the National Assembly.
The size of the 2025 Appropriation Bill is about N47.9 trillion and would be presented to the parliament for approval.
Speaking at the plenary on Thursday, December 12, 2024, the President of the Senate, Mr Godswill Akpabio, said the presentation by Mr Tinubu would be at the chamber of the House of Representatives.
However, it is not certain if the lawmakers will pass the budget before December 31 to allow for a recent budget cycle of January to December.
Recall that on December 3, the senate approved the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for 2025 to 2027.
This was after the President presented this the National Assembly on November 19 ahead of the consideration of the 2025 budget proposal.
In the MTEF/FSP, the government said it planned to borrow about N9.22 trillion from local and foreign sources to finance the budget deficit.
It pegged the crude oil benchmark at $75 per barrel and a daily oil production of 2.06 million barrels at an exchange rate of N1,400 to $1, and a targeted gross domestic product (GDP) growth rate of 6.4 percent.
At the plenary today, Mr Akpabio informed his colleagues that, “The President has made his intention known to the National Assembly to present the 2025 budget to the joint session of the National Assembly on December 17, 2024.”
By Adedapo Adesanya
Nigeria added 150,000 barrels per day to its crude production in November 2024 as it continues to pursue an ambitious 2 million barrels per day target.
According to the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria’s oil production rose to 1.48 million barrels per day in November, up from 1.33 million barrels per day the previous month.
In its Monthly Oil Market Report (MOMR), OPEC revealed that at 1.48 million barrels per day, it is the continent’s leading oil producer, surpassing Algeria’s 908,000 barrels per day and Congo’s 268,000 barrels per day.
Business Post reports that OPEC doesn’t account for condensates, which Nigeria’s accounts for in its broader 2 million barrels per day target.
Despite the surge in production levels, Nigeria is still under producing its 1.5 million barrels per day output quota under a deal involving OPEC and 10 other producers known as OPEC+.
OPEC said it relied on primary data gotten through direct communication, noting that secondary sources reported 1.417 million barrels per day as Nigeria’s crude production in November — up from 1.4 million barrels per day in October.
The data also shows that OPEC’s total oil production among its 12 members rose by 104,000 barrels per day in the month under review.
According to secondary sources, the total of the 12 OPEC countries’ crude oil production averaged 26.66 million barrels per day in November 2024.
“Crude oil output increased mainly in Libya, Iran, and Nigeria, while production in Iraq, Venezuela, and Kuwait decreased”, OPEC said.
“At the same time, total non-OPEC DoC crude oil production averaged 14.01 mb/d in November 2024, which is 219 tb/d higher, m-o-m. Crude oil output increased mainly in Kazakhstan and Malaysia,” the organisation added.
In a related development, OPEC trimmed its 2024 and 2025 oil demand growth forecasts for the fifth time this year.
Now, the cartel expects the world’s oil demand growth at 1.61 million barrels per day from the previously 1.82 million barrels per day.
For 2025, OPEC says the world oil demand growth forecast is now at 1.45 million barrels per day, a 900,000 barrels per day cut from the previously expected 1.54 million barrels per day.
On the changes, OPEC says that the downgrade for this year owes to more bearish data received in the third quarter of 2024 while the projections for next year relate to the potential impact that will arise from US tariffs.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
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