Markets

23 Stocks Depreciate as Market Sheds N4bn

Published

8 years ago

September 29, 2016

The Nigerian Stock Exchange’s market capitalisation fell by N4bn as 23 stocks depreciated at the close of trading on the Exchange’s floor on Wednesday.

The NSE market capitalisation slid to N9.699tn from N9.703tn, while the All-Share Index closed at 28,236.23 basis points from 28,248.86 basis points.

A total of 159.046 million shares valued at N1.454bn were trading in 3,237 deals.

The NSE ASI declined by four basis points following continued mixed performances across key sectors.

The industrial goods sector weighed most on the ASI following declines in Lafarge Africa Plc to the tune of 2.02 per cent and Dangote Cement Plc by 0.27 per cent.

While the consumer goods sector extended its four-session gaining streak on the back of 1.36 per cent advance in Nigerian Breweries Plc shares, 4.59 per cent appreciation in GlaxoSmithkline Consumer Nigeria Plc and 2.80 per cent rise in Champion Breweries Plc share prices.

The oil and gas sector remained in negative territory due to 7.71 per cent loss in Oando share price and 2.75 per cent fall in Total Nigeria Plc shares.

The financial services sector fell by 0.07 per cent following mixed closes across players. Stanbic IBTC Group Plc shares appreciated by 3.16 per cent, Zenith Bank Plc by 1.15 per cent; while the share prices of Wema Bank Plc and Union Bank of Nigeria Plc declined by 4.35 per cent and 2.44 per cent respectively.

Market breadth remained even with 23 advances and 23 declines.

On the global front, Asian markets traded mixed amidst a relatively stronger Yen, whilst European stock traded higher as oil prices rose following a surprise decrease in the United States crude inventory. The US markets are set to open higher ahead of a barrage of Fed speakers.

On what will shape the next trading session, analysts at Vetiva Capital Management Plc, said, “The sustained even market breadth and persistent mixed performances across key sectors somewhat underscore that investor sentiment remains mixed. We believe this would continue to drive sideways trading in the sessions ahead.

Amid relatively unchanged liquidity, the interbank call rate moderated slightly to 14.67 per cent, representing a fall by 50 basis points. In the foreign exchange interbank market, the naira depreciated by one kobo to close at N312.99 while the one-year forward remained unchanged at N351.60.

Sentiment turned bearish in Wednesday’s session as yields on fixed income instruments trended upwards. In the Treasury bills space, yields climbed 20 basis points on average amid sell pressure on mid-dated maturities.

In particular, yields on the 148 day-to-maturity, 176DTM, and 225DTM bills closed at 19.83 per cent, 19.24 per cent, and 20.31 per cent respectively.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Crude Oil

Oil Prices Rebound on OPEC+ Output Delay Talks and U.S. Inventory Drop

Published

4 days ago

September 5, 2024

Samed Olukoya

Oil prices made a modest recovery on Thursday on the expectations that OPEC+ may delay planned production increases and the drop in U.S. crude inventories.

Brent crude oil, against which Nigerian oil is priced, rose by 66 cents, or 0.9% to $73.36 per barrel while U.S. West Texas Intermediate (WTI) crude appreciated by 64 cents or 0.9% to $69.84 per barrel.

The rebound in oil prices was a result of the American Petroleum Institute (API) report that revealed that the U.S. crude oil inventories had fallen by a surprising 7.431 million barrels last week, against analysts 1 million barrel decline projection.

The decline signals better than projected demand for the commodity in the United States of America and offers some relief for traders on global demand.

John Evans, an analyst at PVM Oil Associates, attributed the rebound in crude oil prices to the API report.

He said, “There is a pause of breath and light reprieve for oil prices.”

Also, discussions within the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, are fueling speculation about a potential delay in planned output increases.

The group was initially expected to increase production by 180,000 a day in October 2024.

However, concerns over softening demand in China and potential developments in Libya’s oil production have prompted the group to reconsider its strategy.

Despite the recent rebound, analysts caution that lingering uncertainties around global oil demand may continue to weigh on prices in the near term.

Energy

Power Generation Surges to 5,313 MW, But Distribution Issues Persist

Published

5 days ago

September 4, 2024

Samed Olukoya

Nigeria’s power generation continues to get better under the leadership of President Bola Ahmed Tinubu.

According to the latest statement released by Bolaji Tunji, the media aide to the Minister of Power, Adebayo Adelabu, power generation surged to a three-year high of 5,313 megawatts (MW).

“The national grid on Monday hit a record high of 5,313MW, a record high in the last three years,” the statement disclosed.

Reacting to this, the Minister of Power, Adebayo Adelabu, called on power distribution companies to take more energy to prevent grid collapse as the grid’s frequency drops when power is produced and not picked by the Discos.

He added that efforts would be made to encourage industries to purchase bulk energy.

However, a top official of one of the Discos was quoted as saying that the power companies were finding it difficult to pick the extra energy produced by generation companies because they were not happy with the tariff on other bands apart from Band A.

“As it is now, we are operating at a loss. Yes, they supply more power but this problem could be solved with improved tariff for the other bands and more meter penetration to recover the cost,” the Disco official, who pleaded not to be named due to lack of authorisation to speak on the matter, said.

On Saturday, the ministry said power generation that peaked at 5,170MW was ramped down by 1,400MW due to Discos’ energy rejection.

Crude Oil

Again NNPC Raises Petrol Price to N897/litre

Published

5 days ago

September 4, 2024

Investors King

The Nigerian National Petroleum Company (NNPC) Limited has once again increased the price of Premium Motor Spirit (PMS) from N855 per litre on Tuesday to N897 on Wednesday.

The increase was after Aliko Dangote, the Chairman of Dangote Refinery, announced the commencement of petrol production at its refinery.

The continuous increase in pump prices has raised concerns among Nigerians despite the initial excitement from the refinery announcement.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the 650,000 barrels per day refinery will supply 25 million litres of petrol to the Nigerian market daily this September.

This, NMDPRA said will increase to 30 million litres per day in October.

However, the promise of increased fuel supply has not yet eased the situation on the ground.

Tunde Ayeni, a commercial bus driver at an NNPC station in Ikoyi, said “I have been in the queue since 6 a.m. waiting for them to start selling, but we just realised that the pump price has been changed to N897. This is terrible, and yet they still haven’t started selling the product.”

The price hike comes as NNPC continues to struggle with sustaining regular fuel supply.

On Sunday, the company warned that its ability to maintain steady distribution across the country was under threat due to financial strain.

NNPC cited rising supply costs as the cause of its difficulties in keeping up with demand.