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Market Gains N121bn Despite Losses by 14 Firms

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Nigerian Stock Exchange

The value of equities in the Nigerian Stock Exchange appreciated by N121bn on Thursday in a second-day gain after straight losses for 10 days. This feat was realised despite the fall in the share prices of 14 firms quoted on the Exchange.

Data at the end of trading showed a rise in market capitalisation from N8.025tn to N8.146tn and an appreciation in the NSE All-Share Index from 23,335.01 basis points to 23,686.67 basis points.

A total of 476.148 million shares worth N3.636bn exchanged hands in 5,398 deals, with 29 firms gaining on their share value.

The highest index point recorded in the trading session was 23,686.67 basis points, while the lowest and the average index points were 22,456.32 and 23,108.57 basis points, respectively.

FBN Holdings Plc, Union Bank Nigeria Plc, Nigerian Breweries Plc, Okomu Oil Palm Plc and 7UP Bottling Company Plc emerged top five gainers after the close of trading.

Other gainers were: Skye Bank Plc, Livestock Feeds Plc,Nestle Nigeria Plc, AIICO Insurance Plc, Nascon allied Industries Plc, UACN Plc, Portland Paints and Products Plc, Nigerian Aviation Handling Company Plc, Zenith Bank Plc, N.E.M. Insurance Company Nigeria Plc, Eterna Plc, Cutix Plc, Airline service and Logistics Plc, May & Baker Nigeria Plc, Tiger Branded Consumer Goods Plc, and Diamond Bank Plc.

Unity Bank Plc, Learn Africa Plc, PZ Cussons Nigeria Plc, Guinness Nigeria Plc, Transnational Corporation of Nigeria Plc, Dangote Sugar Refinery Plc, Custodian and Allied Plc, and Dangote Cement Plc also emerged gainers.

FBN Holdings shares appreciated by N0.41 (10.25 per cent) to close at N4.41 from N4, while those of Union Bank gained N0.49 (9.94 per cent) to close at N5.42 from N4.93.

The share price of Nigerian Breweries closed at N105.50 from N97.60, gaining N7.90 (8.09 per cent).

Similarly, the shares of Okomu Oil Palm appreciated by N2.01 (7.18 per cent) to close at N30 from N27.99, while those of 7UP rose by N10.99 (6.78 per cent) to close at N172.99 from N162.

Honeywell Flour Mill Plc, Sterling Bank Plc, Vitafoam Nigeria Plc, Axamansard Insurance Plc, and Fidelity Bank Plc emerged the top five losers on Thursday.

Other losers on Thursday were: Ecobank Transnational Incorporated, Ashaka Cement Plc, Lafarge Africa Plc, Flour Mill Nigeria Plc, Africa Prudential Registrars Plc, Stanbic IBTC Holdings Plc, Berger Paints Plc, Guaranty Trust Bank Plc and Access Bank Plc.

Honeywell Flour Mill shares fell by N0.15 (9.2 per cent) to close at N1.48 from N1.63, while those of Sterling Bank lost N0.16 (8.99 per cent) to close at N1.62 from N1.78.

The share price of Vitafoam Nigeria Plc depreciated by N0.40 (8.03 per cent) to close at N4.58 from N4.98.

Axamansard Insurance shares fell to N2.28 from N2.40, losing N0.12 (five per cent), while Fidelity Bank shares recorded a loss of N0.06 (4.48 per cent) to close at N1.28 from N1.34.

In the second week of this month, some capital market experts in the country had expressed optimism about the performance of the market this year.

They said the current bearish trend in the market was temporary, as the market was expected to be slightly bullish later in the year.

Research analysts at Meristem Securities, in the company’s 2016 outlook, said, “Based on our mix of methodologies, we arrived at a forecast 2016 index level of 30,244 points, indicating a 5.59 per cent potential market return by December 31, 2016.

“Although predicted, the extended bearish mood in the stock market appeared to have unsettled investors as sell sentiments pervaded activities on the Nigerian bourse, with 31 stocks recording positive year-on-year returns, while 88 stocks diminished in value by 2015 year end.

“In line with this trend, the Nigerian Stock Exchange All-Share Index, which measures the performance of the bourse, pegged at 28,642.25 points, representing a 17.36 per cent decline from December 31, 2014.”

For 2015, they said the performance of the equities market was largely buoyed by weak corporate earnings occasioned by major economic headwinds, weak demand, rising insurgency and foreign exchange conundrum.

While the analyst expected some respite in 2016, they also anticipated that the trends in equities market would be extended to the early months of 2016.

Punch

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

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Crude Oil

Crude Oil Dips Slightly on Friday Amid Demand Concerns

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Crude oil gains

On Friday, global crude oil prices experienced a slight dip, primarily attributed to mounting concerns surrounding demand despite signs of a tightening market.

Brent crude prices edged lower, nearing $83 per barrel, following a recent uptick of 1.6% over two consecutive sessions.

Similarly, West Texas Intermediate (WTI) crude hovered around $78 per barrel. Despite the dip, market indicators suggest a relatively robust market, with US crude inventories expanding less than anticipated in the previous week.

The oil market finds itself amidst a complex dynamic, balancing optimistic signals such as reduced OPEC+ output and heightened tensions in the Middle East against persistent worries about Chinese demand, particularly as the nation grapples with economic challenges.

This delicate equilibrium has led oil futures to mirror the oscillations of broader stock markets, underscoring the interconnectedness of global economic factors.

Analysts, including Michael Tran from RBC Capital Markets LLC, highlight the recurring theme of robust oil demand juxtaposed with concerning Chinese macroeconomic data, contributing to market volatility.

Also, recent attacks on commercial shipping in the Red Sea by Houthi militants have added a risk premium to oil futures, reflecting geopolitical uncertainties beyond immediate demand-supply dynamics.

While US crude inventories saw a slight rise, they remain below seasonal averages, indicating some resilience in the market despite prevailing uncertainties.

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Commodities

Nigeria’s Petrol Imports Decrease by 1 Billion Litres Following Subsidy Removal

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Ship Aveon Offshore

Nigeria’s monthly petrol imports declined by approximately 1 billion litres following the fuel subsidy removal by President Bola Ahmed Tinubu, the National Bureau of Statistics (NBS) reported.

The NBS findings illuminate the tangible effects of this policy shift on the country’s petroleum importation dynamics.

Prior to the subsidy removal, the NBS report delineated a consistent pattern of petrol imports with quantities ranging between 1.91 billion and 2.29 billion litres from March to May 2023.

However, in the aftermath of Tinubu’s decision, the nation witnessed a notable downturn in petrol imports, with figures plummeting to 1.64 billion litres in June, the first post-subsidy month.

This downward trend persisted in subsequent months, with July recording a further reduction to 1.45 billion litres and August witnessing a significant decline to 1.09 billion litres.

August’s import figures represented a decrease of over 1 billion litres compared to the corresponding period in 2022.

The NBS report underscores the pivotal role of the subsidy removal in reshaping Nigeria’s petrol import landscape with the Nigerian National Petroleum Company emerging as the sole importer of fuel in the current scenario.

Despite higher petrol imports in the first half of 2023 compared to the previous year, the decline in June, July, and August underscores the profound impact of subsidy removal on import dynamics, affirming the NBS’s latest findings.

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Crude Oil

Nigeria’s Oil Rig Count Soars From 11 to 30, Says NUPRC CEO

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Nigeria oil rig

The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has announced a surge in the country’s oil rig count.

Komolafe disclosed that Nigeria’s oil rigs have escalated from 11 to 30, a substantial increase since 2011.

Attributing this surge to concerted efforts by NUPRC and other governmental stakeholders, Komolafe highlighted the importance of instilling confidence, certainty, and predictability in the oil and gas industry.

He explained the pivotal role of the recently implemented Petroleum Industry Act (PIA), which has spurred significant capital expenditure amounting to billions of dollars over the past two and a half years.

Speaking in Lagos after receiving The Sun Award, Komolafe underscored the effective discharge of NUPRC’s statutory mandate, which has contributed to the success stories witnessed in the sector.

The surge in Nigeria’s oil rig count signifies a tangible measure of vibrant activities within the upstream oil and gas sector, reflecting increased drilling activity and heightened industry dynamism.

Also, Komolafe noted that NUPRC has issued over 17 regulations aimed at enhancing certainty and predictability in industry operations, aligning with the objectives outlined in the PIA.

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