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Market Sheds N16bn, Caverton, Continental Reinsurance, NAHCO Lose

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The Nigerian Stock Exchange market capitalisation depreciated by N16bn at the close of trading on the Exchange’s floor on Thursday after it gained marginally the previous day.

Caverton Offshore Support Group Plc, Continental Reinsurance Plc, Nigerian Aviation Handling Company Plc, Honeywell Flour Mill Plc and Neimeth International Pharmaceuticals Plc led the losses in the top five category.

The NSE market capitalisation slid to N9.675tn from N9.691tn recorded the previous day, while the NSE All-Share Index also dropped to 28,166.42 basis points from 28,21.57 basis points.

An aggregate of 410.101 million shares valued at N3.62bn were transacted in 4,179 deals.

The highest index point attained in the course of trading was 28,214.57 basis points, while the lowest and average index points closed at 27,839.93 and 28,057.87 basis points, respectively.

From the NSE daily statistics, a total of 22 stocks made the losers’ chart, while 18 appreciated. A notice from the Exchange also revealed that Dharnesh Gordhon has resigned his appointment as director and managing director of Nestle Nigeria Plc with effect from October 1, 2016.

The company’s Board of Directors, was said to have appointed Mauricio Alarcon as new managing director with effect from October 1, 2016.

The share price of Caverton dropped to N1.10 from N1.21, shedding N0.11 (9.09 per cent), while Continental Reinsurance stocks closed at N0.96 from N1.01, losing N0.05 (4.95 per cent).

NAHCO shares also plunged by N0.16 (4.60 per cent) to close at N3.48 from N3.32, while those of Honeywell Flour Mill closed at N1.35 from N1.41, losing N0.06 (4.26 per cent).

In the same vein, Neimeth recorded a drop of N0.04 (4.08 per cent) on its share price to close at N0.94 from N0.98.

Other losers at the bourse were Guaranty Trust Bank Plc, NEM Insurance Company Nigeria Plc, Livestock Feeds Plc, Champion Breweries Plc, Dangote Cement Plc, Eterna Plc, Wema Bank Plc, Airline Services and Logistics Plc, FBN Holdings Plc, Ecobank Transnational Incorporated Plc and Transnational Corporation of Nigeria Plc.

Dangote Flour Plc, United Capital Plc, Guinness Nigeria Plc, United Bank of Africa Plc, Conoil Plc and Larfarge Africa Plc also recorded losses in their share prices.

On the other hand, Oando Plc, Zenith Bank Plc, Total Nigeria Plc, Mobil Oil Nigeria Plc and Forte Oil Plc emerged at the top five gainers.

The share price of Oando soared to N6 from N5.60, gaining N0.40 (7.14 per cent), while Zenith stocks appreciated by N0.79 (5.27 per cent) to close at N15.79 from N15.

The shares of Total gained N13.50 (five per cent) to close at N283.50 from N270.

Other gainers were PZ Cussons Nigeria Plc, Cutix Plc, Fidson Healthcare Plc and Diamond Bank Plc, among others.

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

Crude Oil Holds Steady Above $55 Per Barrel on Tuesday

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Crude Oil Holds Steady Above $55 Per Barrel on Tuesday

Brent Crude oil, against which Nigerian crude oil is priced, rose from $54.46 per barrel on Monday to $55.27 per barrel as of 9:03 am Nigerian time on Tuesday.

Last week, Brent crude oil rose to 11 months high of $57.38 per barrel before pulling back on rising COVID-19 cases and lockdowns in key global economies like the United Kingdom, Euro-Area, China, etc.

While OPEC has left 2021 oil demand unchanged and President-elect Joe Biden has announced a $1.9 trillion stimulus package, experts are saying the rising number of new cases of COVID-19 amid poor vaccine distribution could drag on growth and demand for oil in 2021.

On Friday, Dan Yergin, vice-chairman at IHS Markit, said in addition to the stimulus package “There are two other things that are going with it … one is of course, vaccinations — in the sense that eventually this crisis is going to end, and maybe by the spring, lockdowns will be over.”

“The other thing is what Saudi Arabia did. This is the third time Saudi Arabia has made a sudden change in policy in less than a year, and this one was to announce (the) 1 million barrel a day cut — partly because they are worried about the impact of the surge in virus that’s occurring,” he said.

Also, the stimulus being injected into the United States economy could spur huge Shale production and disrupt OPEC and allies’ efforts at balancing the global oil market in 2021.

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Crude Oil

Crude Oil Pulled Back Despite Joe Biden Stimulus

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Crude Oil Pulled Back Despite Joe Biden Stimulus

Crude oil pulled back on Friday despite the $1.9 trillion stimulus package announced by U.S President-elect, Joe Biden.

Brent crude oil, against which Nigeria’s oil is priced, pulled back from $57.38 per barrel on Wednesday to $55.52 per barrel on Friday in spite of the huge stimulus package announced on Thursday.

On Thursday, OPEC, in its latest outlook for the year, said uncertainties remain high in 2021 with the number of COVID-19 new cases on the rise.

OPEC said, “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.”

Governments across Europe have announced tighter and longer coronavirus lockdowns, with vaccinations not expected to have a significant impact for the next few months.

The complex remains in pause mode, a development that should not be surprising given the magnitude of the oil price gains that have been developing for some 2-1/2 months,” Jim Ritterbusch, president of Ritterbusch and Associates, said.

Still, OPEC left its crude oil projections unchanged for the year. The oil cartel expected global oil demand to increase by 5.9 million barrels per day year on year to an average of 95.9 million per day in 2020.

But also OPEC expects a recent rally and stimulus to boost U.S. Shale crude oil production in the year, a projection Investors King experts expect to hurt OPEC strategy in 2021.

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Crude Oil

OPEC Says Uncertainties Remain High in 2021

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OPEC Says Uncertainties Remain High in 2021

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday said global uncertainties remained high going forward in 2021 but kept its oil demand forecast unchanged.

In the cartel’s latest oil outlook for 2021, oil demand is expected to increase by 5.9 million barrels per day year on year to 95.9 million barrels per day. The prediction was unchanged from December’s assessment.

However, OPEC and allies, said: “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.

Crude oil rose to $57 per barrel this week after incoming US President Joe Biden announced it would inject $1.9 trillion stimulus into the world’s largest economy.

But the recent rally in the commodity and stimulus announcement is expected to boost US crude oil output and disrupt OPEC+ production cuts strategy for the year.

The 2021 supply outlook is now slightly more optimistic for U.S. shale with oil prices increasing, and output is expected to recover more in the second half of 2021,” OPEC said.

Still, OPEC, in its forecast “assumes a healthy recovery in economic activities including industrial production, an improving labour market and higher vehicle sales than in 2020.”

“Accordingly, oil demand is anticipated to rise steadily this year supported primarily by transportation and industrial fuels,” the group said.

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