By Dipo Olowookere
The volume of trades in the nation’s equity market depreciated last week by 1.181 billion units or 39.1 per cent week-on-week to 1.840 billion units from the preceding week’s 3.021 billion units. This was mainly caused by the lower volume of cross deals in the week under review.
Also, the value of transactions decreased last week as shares worth N27.286 billion exchanged hands in 27,273 deals compared with the equities valued at N31.784 billion traded in 29,153 deals a week earlier.
Amid the low weekly turnover, the All Share Index (ASI) and market capitalisation appreciated w-o-w by 2.09 per cent to 54,085.30 points and N29.158 trillion respectively.
However, all other indices finished lower with the exception of the main board index, which appreciated at 6.03 per cent, while the Asem and sovereign bond indices closed flat.
A look at the spread of the trades in terms of sectors showed that the financial services industry led the activity chart with 1.286 billion shares valued at N10.745 billion traded in 12,379 deals, contributing 69.90 per cent and 39.37 per cent to the total trading volume and value respectively.
It was trailed by the conglomerates sector with 251.105 million shares worth 1.659 billion in 1,371 deals and the consumer goods space with the sale of 105.601 million shares valued at N2.522 billion in 4,263 deals.
Ecobank, Jaiz Bank and Access Holdings were the most active stocks in the five-day trading week with a turnover of 640.650 million units worth N4.825 billion in 2,098 deals, accounting for 34.81 per cent and 17.68 per cent of the total trading volume and value respectively.
As for the price movement index, 23 equities gained in the week, lower than 37 equities in the previous week, 54 equities shed weight, higher than 42 equities in the preceding week, while 79 equities closed flat, higher than 77 equities in the earlier week.
Industrial and Medical Gases recorded the highest increment as its value rose by 20.88 per cent to N11.00, MRS Oil chalked up 20.59 per cent to sell for N16.40, Airtel Africa grew by 20.20 per cent to N1,767.00, Conoil appreciated by 9.95 per cent to N34.25, while FTN Cocoa expanded by 9.37 per cent to 35 kobo.
On the flip side, UAC Nigeria suffered the heaviest loss as its price shrank by 27.08 per cent to N10.50, Global Spectrum Energy Services crashed by 18.77 per cent to N2.77, Royal Exchange shed 14.04 per cent to 98 kobo, RT Briscoe declined by 13.85 per cent to 56 kobo, while Jaiz Bank went down by 13.33 per cent to 78 kobo.
Meanwhile, in the week, the NGX adjusted the equity prices of Jaiz Bank, AIICO Insurance and Prestige Assurance as a result of the dividend proposed by their respective boards.
The value of Jaiz Bank was modified last Friday for the 4 kobo cash reward to shareholders after the qualification date. The price moved from 81 kobo to 77 kobo after the adjustment.
As for AIICO Insurance, the 2 kobo dividend resulted in its price being modified to 76 kobo from 78 kobo last Monday and on the same day, the price of Prestige Assurance was changed to 41 kobo from 42 kobo due to the deduction of N0.015 from its previous closing value.
Naira Falls at Official Market, Gains at Unofficial FX Windows
By Adedapo Adesanya
The Naira continued its roller coaster ride at the foreign exchange (FX) segments in Nigeria on Thursday, depreciating at the Investors and Exporters (I&E) window and appreciating at the Peer-to-Peer (P2P) and parallel market windows.
In the official market, the Naira lost 53 Kobo or 0.12 per cent against the United States Dollar to settle at N445.83/$1 compared with the previous day’s value of N445.83/$1.
The local currency reported the fall despite the value of FX transactions going down during the session. Data showed that the turnover for the day stood at $99.50 million, 43.9 per cent or $77.94 million lower than the $177.44 million published on Wednesday.
In the interbank segment of the forex market, the domestic currency closed flat against the Pound Sterling and the Euro yesterday at N534.67/£1 and N461.79/€1, respectively.
However, in the P2P window, the Nigerian currency appreciated against its American counterpart by N4 to close at N762/$1, in contrast to the N766/$1 it was traded on Wednesday.
In the black market, which is an unofficial FX segment just like the P2P, the Nigerian Naira appreciated against the US Dollar yesterday by N5 to trade at N745/$1.
As for the digital currency market, there was a negative movement across the 10 tokens tracked by Business Post, with Dogecoin (DOGE) recording the heaviest fall, 4.1 per cent, to sell at $0.0990.
Solana (SOL) recorded a 2.9 per cent slump to trade at $13.56, Ripple (XRP) dipped by 2.6 per cent to quote at $0.3892, and Binance Coin (BNB) slid by 2.5 per cent to settle at $288.59.
Further, Bitcoin (BTC) fell by 0.9 per cent to close at $16,941.89, Cardano (ADA) depreciated by 0.7 per cent to finish at $0.3135, Ethereum (ETH) saw a 0.6 per cent depreciation to trade at $1,273.75, and Litecoin (LTC) went down by 0.4 per cent to close at $76.50.
However, the value of the US Dollar Tether (USDT) and the Binance USD (BUSD) remained unchanged during the session at $1.00 each.
Oil Trades Mixed on Weaker Dollar, China COVID-19 Curbs
By Adedapo Adesanya
The crude oil market traded mixed on Thursday, retreating from an early rally built on weakness in the US Dollar and hopes for improved fuel demand in China after COVID-19 curbs were eased in two major Chinese cities.
Brent crude futures settled 9 cents lower at $86.88 a barrel, while the US West Texas Intermediate (WTI) crude futures settled 67 cents higher at $81.22 a barrel.
The shift in China’s zero-COVID strategy raised optimism about a recovery in oil demand there. The cities of Guangzhou and Chongqing announced an easing of COVID curbs on Wednesday.
Demonstrations in the world’s largest oil importer, which spread over the weekend to Shanghai, Beijing and elsewhere, have become a show of public defiance unprecedented since President Xi Jinping came to power in 2012.
The southwestern city of Chongqing will allow close contact with people with COVID-19 who meet certain conditions to quarantine at home.
Guangzhou, near Hong Kong, also announced an easing of curbs, but with record numbers of cases nationwide, there seems little prospect of a major reversal in the zero-COVID policy.
Oil was however supported through most of Thursday’s session by a slump in the dollar index to its lowest since August after the US Federal Reserve Chair Jerome Powell said rate hikes could slow this month.
A weaker dollar makes oil cheaper for other currency holders.
The greenback dipped to 16-week lows against a basket of major currencies on Thursday after data showed that US consumer spending increased solidly in October while inflation moderated, adding to expectations that the Federal Reserve is closer to reaching a peak in interest rates.
Mr Powell said on Wednesday that it was time to slow rate hikes, noting that slowing down at this point is a good way to balance the risks.
The prospect of a lower price cap on Russian oil is also lending support, analysts said. European Union governments tentatively agreed on Thursday on a $60 cap on Russian sea-borne oil.
Meanwhile, the market will await what the meeting of the Organisation of the Petroleum Exporting Countries (OPEC) and allies, OPEC+, will bring come December 4, although a policy change is seen as unlikely.
“OPEC+ would rather sit on the bench at this time and assess the outcome of what happens on Monday,” an unnamed source told the news agency, Reuters, this week.
OPEC also made a meeting of its ministers planned for Saturday a virtual gathering, and OPEC+ cancelled a meeting of oil market experts, the Joint Technical Committee, that had been scheduled for Friday.
Honeywell Flour, MTN, Others Pull Market Back by 0.01%
By Dipo Olowookere
The depreciation printed by the shares of Honeywell Flour, MTN Nigeria, Ecobank and 10 others pulled back the Nigerian Exchange (NGX) Limited from the bulls’ territory into the danger zone by 0.01 per cent on Thursday.
It was the first trading session in December, and the stock market could not sustain the positive moment it recorded on the last day of the previous month due to the selling pressure on the equities mentioned above, though investor sentiment remained strong.
According to data from the bourse, the market breadth was positive yesterday as there were 15 price advancers and 13 price decliners led by Honeywell Flour, which dropped 7.89 per cent to trade at N2.10. RT Briscoe went down by 7.41 per cent to 25 Kobo, Wema Bank declined by 5.45 per cent to N3.12, FCMB contracted by 4.18 per cent to N3.21, and Cutix retreated by 2.84 per cent to N2.05.
On top of the gainers’ log was UPDC REIT, which improved its share value by 9.09 per cent to N3.00, McNichols rose by 8.93 per cent to 61 Kobo, Japaul jumped by 7.41 per cent to 29 Kobo, Nigerian Breweries 7.14 per cent to N45.00, and Royal Exchange grew by 4.76 per cent to 66 Kobo.
Yesterday, investors transacted 172.9 million shares valued at N2.8 billion in 3,073 deals compared with the 107.0 million shares valued at N1.3 billion traded in 3,227 deals in the midweek session, representing a decline in the number of deals by 4.77 per cent, an increase in the trading volume by 61.55 per cent, and a surge in the trading value by 115.63 per cent.
The increase in the market turnover was driven by the 49.8 million shares of FCMB traded by investors during the session. Courteville traded 16.9 million stocks, Access Holdings sold 12.0 million equities, UBA traded 10.8 million shares, and Zenith Bank exchanged 9.8 million shares.
Business Post reports that the insurance and energy counters went down by 0.12 per cent and 0.08 per cent, respectively, while the banking and consumer goods sectors went up by 2.16 per cent and 0.77 per cent apiece, with the industrial goods space closing flat.
At the close of trades, the All-Share Index (ASI) receded by 3.40 points to 47,656.64 points from 47,660.04 points, and the market capitalisation retreated by N2 billion to N25.957 trillion from N25.959 trillion.
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