Connect with us

Markets

Market Gains N121bn Despite Losses by 14 Firms

Published

on

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

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Brent Crude Rises to $69 on IEA Report

Published

on

Crude Oil - Investors King

Oil prices rose after the release of the International Energy Agency’s (IEA)  closely-watched Oil Market Report, with WTI Crude trading at above $66 a barrel and Brent Crude surpassing the $69 per barrel mark.

Prices jumped even though the agency revised down its full-year 2021 oil demand growth forecast by 270,000 barrels per day (bpd) from last month’s assessment, expecting now demand to rise by 5.4 million bpd. The downward revision was due to weaker consumption in Europe and North America in the first quarter and expectations of 630,000 bpd lower demand in the second quarter due to India’s COVID crisis.

The excess oil inventories of the past year have been all but depleted, and a strong demand rebound in the second half this year could lead to even steeper stock draws, the IEA said yesterday, keeping an upbeat forecast of global oil demand despite the weaker-than-expected first half of 2021.

However, the upbeat outlook for the second half of the year remains unchanged, as vaccination campaigns expand and the pandemic largely comes under control, the IEA said.

Moreover, the global oil glut that was hanging over the market for more than a year is now gone, the agency said.

“After nearly a year of robust supply restraint from OPEC+, bloated world oil inventories that built up during last year’s COVID-19 demand shock have returned to more normal levels,” the IEA said in its report.

In March, industry stocks in the developed economies fell by 25 million barrels to 2.951 billion barrels, reducing the overhang versus the five-year average to only 1.7 million barrels, and stocks continued to fall in April.

“Draws had been almost inevitable as easing mobility restrictions in the United States and Europe, robust industrial activity and coronavirus vaccinations set the stage for a steady rebound in fuel demand while OPEC+ pumped far below the call on its crude,” the IEA said.

The market looks oversupplied in May, but stock draws are set to resume as early as June and accelerate later this year. Under the current OPEC+ policy, oil supply will not catch up fast enough, with a jump in demand expected in the second half, according to the IEA. As vaccination rates rise and mobility restrictions ease, global oil demand is set to soar from 93.1 million bpd in the first quarter of 2021 to 99.6 million bpd by the end of the year.

Continue Reading

Crude Oil

OPEC Expects Increase In Global Oil Demand Raises Members’ Forecast on Crude Supply

Published

on

OPEC meetings concept

The Organisation of Petroleum Exporting Countries (OPEC) yesterday lifted its forecast on its members’ crude this year by over 200,000 bpd and now expects demand for its own crude to average 27.65mn bpd in 2021.

This is almost 5.2mn bpd higher than last year and around 2.7mn b/d higher than an earlier estimate of the group’s April production.

According to the highlights of the organisation’s latest Monthly Oil Market Report (MOMR), OPEC crude is projected to rise from 26.48 million bpd in the second quarter to 28.7 million bpd in the third and 29.54 million bpd in the fourth quarter of the year.

The report also indicated a fall in Nigeria’s crude production from 1.477 bpd in February to 1.473, a difference of just about 4,000 bpd before rising again in April to 1.548 million bpd, to add 75,000 bpd last month.

OPEC stated that its upward revision of members’ crude was underpinned by a downgrade in the group’s forecast for non-OPEC supply, which it now expects to grow by 700,000 bpd to 63.6mn b/d against last month’s report’s projection of a 930,000 bpd rise to 63.83mn bpd.

The oil cartel projected that US crude output would drop by 280,000 bpd this year, compared with its previous forecast for a 70,000 bpd decline.

On the demand side, OPEC kept its overall forecast unchanged from last month’s MOMR, stressing that it expects global oil demand to grow by 5.95 million bpd to 96.46 million bpd this year, partly reversing last year’s 9.48mn bpd drop.

Spot crude prices fell in April for the first time in six months, with North Sea Dated and WTI easing month-on-month by 1.7 percent and 1 percent, respectively.

On the global economic projections, the cartel said stimulus measures in the US and accelerating recovery in Asian economies might continue supporting the global economic growth forecast for 2021, now revised up by 0.1 percent to reach 5.5 percent year-on-year.

This comes after a 3.5 percent year-on-year contraction estimated for the global economy in 2020.

However, global economic growth for 2021 remains clouded by uncertainties including, but not limited to the spread of COVID-19 variants and the speed of the global vaccine rollout, OPEC stated.

“World oil demand is assumed to have dropped by 9.5 mb/d in 2020, unchanged from last month’s assessment, now estimated to have reached 90.5 mb/d for the year. For 2021, world oil demand is expected to increase by 6.0 mb/d, unchanged from last month’s estimate, to average 96.5 mb/d,” it said.

The report listed the main drivers for supply growth in 2021 to be Canada, Brazil, China, and Norway, while US liquid supply is expected to decline by 0.1 mb/d year-on-year.

Continue Reading

Crude Oil

Oil Rises Over Concerns of Fuel Shortages

Published

on

oil - Investors King

Oil prices rose on Tuesday, as lingering fears of gasoline shortages due to the outage at the largest U.S. fuel pipeline system after a cyber attack brought futures back from an early drop of more than 1%.

Brent crude futures rose 35 cents, or 0.5%, to $68.67 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 49 cents, or 0.8%, to $65.41.

Benchmark gasoline futures prices rose 1 cent to $2.14 a gallon.

On Monday, Colonial Pipeline, which transports more than 2.5 million barrels per day (bpd) of gasoline, diesel and jet fuel, said it was working to restore much of its operations by the end of the week.

Right now there’s a generalized anxiety premium being built into prices because of Colonial and it’s keeping a floor under the market,” said John Kilduff, partner at Again Capital LLC in New York.

Fuel supply disruption has driven gasoline prices at the pump to multi-year highs and demand has spiked in some areas served by the pipeline as motorists fill their tanks.

Traders booked at least four tankers to store refined oil products off the U.S. Gulf Coast refining hub after a cyber attack that knocked out the pipeline, shipping data showed on Tuesday.

North Carolina, the U.S. Environmental Protection Agency and Department of Transportation issued waivers allowing fuel distributors and truck drivers to take steps to try to prevent gasoline shortages.

OPEC on Tuesday raised its forecast for demand for its crude by 200,000 bpd and stuck to its prediction of a strong recovery in global oil demand this year as growth in China and the United States counters the coronavirus crisis in India.

Meanwhile, the rapid spread of infections in India has increased calls to lock down the world’s second-most populous country and the third-largest oil importer and consumer.

India’s top state oil refiners have already started reducing runs and crude imports as the new coronavirus cuts fuel consumption, company officials told Reuters on Tuesday.

On the bullish side for crude, analysts are expecting data to show U.S. inventories fell by about 2.3 million barrels in the week to May 7 after a drop of 8 million barrels the previous week, a Reuters poll showed.

Gasoline stocks are expected to have fallen by about 400,000 barrels, analysts estimated ahead of reports from the American Petroleum Institute on Tuesday and the U.S. Energy Information Administration on Wednesday.

Continue Reading

Trending