Connect with us


Investors Lose N804bn in Seven Days



Economic Diversification

Equity investors in the country’s capital market in the first seven trading days of the year lost N804tn of their investment worth.

Market capitalisation after the trading on the floor of the Exchange on Tuesday closed at N8.95tn while on the first day of trading in 2016 (January 4), market capitalisation was pegged at N9.75tn. This depicts a loss of N804bn.

The All-Share Index also dropped from 28,370.32 basis points on the first day of trading in 2016 to 26,034.94 basis points on Tuesday.

The daily market performance of the NSE showed a drop in market capitalisation from N9.062tn on Monday to N8.953tn while the ASI also depreciated from 26,350.18 points to 26,034.93 on Tuesday.

A total of 223.385 million shares worth N2.512bn were traded in 2,776 deals. The highest index point recorded was 27,266.18 while the lowest and average index points were 26,034.93 and 26,350.18, respectively.

After the close of trading on Tuesday, 32 quoted firms emerged losers while only eight had their share prices appreciated.

On the other hand, 18 companies emerged losers while 12 gained on the first day of trading in 2016.

Livestock Feeds Plc, Tiger Branded Consumer Goods Plc, Nigerian Aviation Handling Company Plc, UAC Properties Plc and Cadbury Nigeria Plc emerged top losers.

The share price of Livestock Feeds closed at N1.22 from N1.34, losing N0.12 (8.96 per cent) while that of Tigerbrands shed N0.08 (8.51 per cent) to close at N0.86 from N0.94. NAHCO shares depreciated by N0.18 (five per cent) to close at N3.42 from N3.60.

UAC Properties shares also lost N0.29 (five per cent) to close at N5.51 from N5.80 while that of Cadbury closed at N15.49 from N16.30, losing N0.81 (4.97 per cent).

Other losers were Zenith Bank Plc, Oando Plc, PZ Cussons Nigeria Plc, Transnational Corporation of Nigeria Plc, Berger Paints Plc, Diamond Bank Plc, N.E.M. Insurance Company Nigeria Plc, Law Union and Rock Insurance Plc, Vono Products Plc, African Prudential Registrars Plc, Nigerian Breweries Plc, Unity Bank Plc, United Capital Plc, Ashaka Cement Plc, Cutix Plc, and Ecobank Transnational Incorporated.

Guaranty Trust Bank Plc, Neimeth International Pharmaceuticals Plc, Continental Reinsurance Plc, Wema Bank Plc, FBN Holdings Plc, UACN Plc, FCMB Group Plc, United Bank for Africa Plc, Skye Bank Plc, Stanbic IBTC Holdings Plc and Union Bank Nigeria Plc also emerged losers after the day’s trading.

May and Baker Nigeria Plc, Champion Breweries Plc, Eterna Plc, Portland Paints and Products Nigeria Plc, and Trans-national Express Plc topped the gainers table.

May & Baker shares gained N0.05 (five per cent) to close at N1.05 from N1 while that of Champion Breweries closed at N3.38 from N3.22, appreciating by N0.16 (4.97 per cent).

The share price of Eterna also closed at N1.69 from N1.61, gaining N0.08 (4.97 per cent) while that of Portland Paints and Products appreciated by N0.19 (4.82 per cent) to close at N4.13 from N3.94.

Trans-national Express shares gained N0.04 (3.60 per cent) to close at N1.15 from N1.11. Learn Africa Plc, Access Bank Plc and International Breweries Plc also emerged gainers after the close of trading at the Exchange.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading

Crude Oil

Nembe Creek Oil Field Halted After Leak, Impacting 150,000 bpd



crude oil

Nigeria’s oil output has taken a significant hit following the shutdown of the Nembe Creek oil field due to a major oil leak.

The Nembe Creek oil field, responsible for producing approximately 150,000 barrels of crude oil per day (bpd), was forced to cease operations on June 17, 2024.

The leak occurred on the Nembe Creek Trunk Line (NCTL), a critical pipeline that transports oil from the Nembe Creek oil field to the Bonny Oil Export Terminal.

The operator of the pipeline, Aiteo Eastern Exploration and Production Company, confirmed the leak and the subsequent shutdown in a statement released yesterday.

Aiteo reported that the leak was discovered during routine operations in the Nembe area of Bayelsa State, located in Nigeria’s oil-rich Delta region.

This region is notorious for environmental degradation due to decades of oil spills, which have severely impacted local agriculture and fishing industries.

Following the discovery of the leak, Aiteo activated its Oil Spill and Emergency Response Team and shut down all production from Oil Mining Lease (OML) 29 as a precautionary measure to prevent further environmental damage.

“While we regret the production losses and the potential environmental impact, our current priority is to expedite an efficient spill management process in line with regulatory standards and collaborate with all stakeholders to restore production and mitigate associated risks,” said Victor Okronkwo, Managing Director of Aiteo Eastern E&P.

The exact cause of the leak remains unknown. Aiteo emphasized that the shutdown was a precautionary step to contain the spill and minimize environmental harm.

The company has notified its joint venture partners and relevant regulatory bodies, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the National Oil Spill Detection and Response Agency (NOSDRA), about the incident.

This development comes as a setback for Nigeria, which holds Africa’s largest natural gas reserves and is a major oil producer.

The country’s oil sector has faced numerous challenges, including aging infrastructure, theft, and environmental issues, which have hindered its ability to maximize production and exports.

The Nembe Creek shutdown also highlights ongoing concerns about the safety and reliability of Nigeria’s oil infrastructure. The NCTL has been a frequent target of oil theft and sabotage, exacerbating the challenges of maintaining a steady oil output.

Energy analysts believe that the latest incident could impact Nigeria’s ability to meet its export commitments and exacerbate the country’s economic challenges.

The Nigerian government, under President Bola Tinubu, has been making efforts to attract investment into the energy sector to boost production and address infrastructure deficits.

“The government will hope this offers confidence not only in the quality of the Nigerian resource base, but also in the government’s pledge to improve ease of doing business,” said Clementine Wallop, director of sub-Saharan Africa at political risk consultancy Horizon Engage.

As Nigeria works to address the immediate spill and restore production, the broader implications for the country’s oil sector and its environmental impact remain to be seen.

Continue Reading

Crude Oil

Brent Crude Nears Seven-Week Highs as Market Eyes US Inventory Report



Crude Oil - Investors King

Brent oil, the international benchmark for Nigerian crude oil, remained steady on Thursday, hovering just below seven-week highs as the escalating conflict in the Middle East raised concerns over potential supply disruptions.

At the same time, the market eagerly awaits U.S. inventory data for further indications of demand trends.

August Brent crude rose 28 cents, or 0.3%, to $85.35 a barrel while the U.S West Texas Intermediate (WTI) oil gained 13 cents, or 0.2%, to $81.70 a barrel.

“There was no WTI settlement on Wednesday due to a U.S. public holiday, which kept trading subdued,” noted Ricardo Evangelista, an analyst at ActivTrades.

“However, oil prices are likely to remain supported around current levels due to a growing geopolitical risk premium driven by conflict in the Middle East.”

Israeli forces have intensified their operations in the Gaza Strip, targeting areas in the central region overnight while tanks advanced into Rafah in the south.

The escalating violence has heightened fears of a broader conflict that could impact oil supplies from the region.

“Expectations of an inventory build appear to be overshadowing fears of escalating geopolitical stress for now,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Investors are keenly awaiting the release of U.S. inventory data from the Energy Information Administration (EIA) later on Thursday, delayed by a day due to the Juneteenth holiday.

An industry report released on Tuesday by the American Petroleum Institute (API) indicated that U.S. crude stocks rose by 2.264 million barrels in the week ending June 14, while gasoline inventories fell, according to market sources.

The summer season typically sees an uptick in oil demand due to increased refinery runs and weather-related risks.

“Ongoing production cuts by the OPEC+ group, combined with seasonal demand, should tighten oil balances and lead to inventory draws during the summer months,” J.P. Morgan commodities analysts wrote.

Refining margins have also improved, with the ICE gasoil futures premium to Brent crude jumping to $20.63 a barrel on Wednesday, a two-month high.

“Firmer fuel refining margins provide a healthy dose of encouragement for those expecting improvements on the demand side,” commented Tamas Varga, an analyst at PVM.

In other economic news, the Bank of England’s decision to keep its main interest rate unchanged at a 16-year high of 5.25% ahead of the national election on July 4 has been noted by market observers.

Higher interest rates generally increase the cost of borrowing, which can slow economic activity and dampen oil demand.

As the market braces for the upcoming EIA inventory report, analysts and traders are closely watching for any signals that could influence oil prices in the near term.

The delicate balance between geopolitical tensions and supply-demand fundamentals continues to play a critical role in shaping the oil market landscape.

Continue Reading

Crude Oil

Aradel Holdings Reports 36% Increase in Crude Oil Production in Q1 2024



markets energies crude oil

Aradel Holdings Plc, a prominent player in Nigeria’s energy sector, has announced a significant upswing in its crude oil production, a notable milestone in its operational performance for the first quarter of 2024.

During their 29th Annual General Meeting held in Lagos, Aradel Holdings unveiled that their crude oil production surged by 36% to 13,250 barrels per day compared to the average figures recorded in the previous fiscal year.

This increase underscores the company’s strategic efforts to enhance its production capabilities and optimize operational efficiencies.

Accompanying this impressive growth in crude oil output, Aradel Holdings also reported a substantial rise in gas production, reaching 36.8 million standard cubic feet per day, which reflects a parallel 36% increase from the previous year’s averages.

Despite a slight decrease of 1.6% in refined petroleum products, the overall operational metrics for the first quarter of 2024 showcased robust performance across key production segments.

Chairman of Aradel Holdings, Ladi Jadesimi, emphasized the pivotal role of strategic initiatives implemented in preceding years, which contributed to the company’s exceptional growth trajectory.

“We are pleased with the strides made in Q1 2024, driven by enhanced production volumes and improved operational efficiencies,” stated Jadesimi during the AGM.

He highlighted the successful implementation of the Alternative Crude Evacuation system introduced in 2022, which significantly minimized crude losses and bolstered overall production stability.

In financial terms, Aradel Holdings reported a remarkable 90% increase in revenues for Q1 2024 compared to the same period last year, signaling strong market demand and effective resource utilization strategies.

Moreover, the company achieved a commendable 62% growth in Profit Before Tax (PBT), reinforcing its position as a leading player in Nigeria’s energy landscape.

Commenting on the company’s outlook, CEO and Managing Director Adegbite Falade expressed optimism about Aradel Holdings’ future prospects.

“Our performance in Q1 2024 underscores our commitment to sustained growth and operational excellence,” Falade remarked. “We remain focused on leveraging our strategic advantages and advancing our capabilities to meet evolving market dynamics.”

Aradel Holdings’ stellar performance in Q1 2024 also propelled the company’s market capitalization to exceed N1 trillion, a significant milestone in its corporate history.

This achievement underscores investor confidence and reflects Aradel Holdings’ robust position in the Nigerian stock market.

Looking ahead, Aradel Holdings aims to build upon its Q1 success by further enhancing production capacities, exploring new growth opportunities, and maintaining a steadfast commitment to operational efficiency and sustainability.

Continue Reading