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Diamond, Fidelity, Sterling Banks Removed From NSE 30 Index

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Nigerian Stock
  • Diamond, Fidelity, Sterling Banks Removed From NSE 30 Index

The Nigerian Stock Exchange, NSE, has removed Diamond Bank Plc, Fidelity Bank Plc and Sterling Bank Plc from the NSE 30 index following the bi-annual review of the indices.

The review, which became operational, January 3, also saw the entrance of the only two companies quoted in the agriculture sector – Okomu Oil palm Plc and Presco Plc. Also included was Conoil Plc, a downstream petroleum marketing company.

The NSE-30 and NSE industrial indices are modified market capitalization index with the numbers of included stocks fixed at 30 and 10, respectively. The stocks are selected based on their market capitalization from the most liquid sectors.

The liquidity is based on the number of times the stock is traded during the preceding two quarters. To be included, the stock must have traded for at least 70 percent of the number of times the market opened for business.

The indices, which were developed using the market capitalization methodology, are rebalanced on a biannual basis – on the first business day in January and in July.

Prestige Assurance Plc, Sovereign Trust Insurance Plc and Unity Kapital Assurance were also included in the insurance index, while Equity Assurance, Linkage Assurance and Universal Basic Assurance were exited.

In the NSE pension index, United Capital Plc, Ecobank Transnational Inc and Dangote Flourmill Plc were brought in while Beta Glass Co. Plc, International Breweries Plc and Skye Bank Plc were removed. Forte Oil was included in the NSE Lotus Islamic Index, while Lafarge WAPCO was removed.

Meanwhile, four of the sectors, the NSE consumer goods, the NSE banking, NSE industrial goods and NSE oil and gas sectors remained unchanged. The NSE observed that “the number of the stocks included in some of the indices may not be practically suitable for optimal portfolio diversification; however, the numbers would be reviewed as sector conditions change. The compiler of the indices maintains the right to modify the circulated selection above in connection with any mergers, takeovers, suspension or resumption of trading or any other company structure changes during the period before the effective date of the annual review.”

Meanwhile, the market resumed the year with N89 billion losses on the back of heavy sell-off on the shares of Cement Company of Northern Nigeria, CCNN, Ecobank Transnational Incorporated, ETI, and Cadbury Nigeria Plc among others.

At the end of the day’s session, the market capitalisation of listed equities fell by 0.96 percent from N9.247 trillion on Friday, December 30, 2016 to close at N9.158 trillion. The All Share Index, ASI, fell by the same margin, dropping from 26,874.62 points to 26,616.89 points.

CCNN depreciated by five percent to close at N4.75, followed by ETI and Cadbury Nig. Plc with 4.96 percent decline to close at N9.77 and N9.78 respectively. Oando Plc fell by 4.89 percent to close at N4.47, while Aiico Insurance Plc went down by 4.70 percent to close at N0.60 per share.

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 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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Crude Oil

Brent Crude Oil Rose to $56.25 Per Barrel

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Brent Crude Oil Rose to $56.25 Per Barrel

Oil price surged following the declaration of Joe Biden as the President-elect of the United States of America last week after Trump’s mob invaded Capitol to disrupt a joint Senate session.

Also, the large drop in US crude inventories helped support crude oil price to over 11 months despite the second wave of COVID-19 crushing the world from Asia to Europe to America.

Brent crude oil, against which Nigerian Crude oil is priced, rose to $56.25 per barrel on Friday before pulling back to $55.422 per barrel on Monday during the London trading session.

Experts attributed the pullback to the rising number of COVID-19 cases in Asia with about 11 million people already locked down in Hebei province in China.

Covid hot spots flaring again in Asia, with 11 million people (in) lockdowns in China Hebei province… along with a touch of FED policy uncertainty has triggered some profit taking out of the gates this morning,” Stephen Innes, chief global market strategist at Axi, said in a note on Monday.

China, the world’s largest importer of crude oil, has joined the United Kingdom and others declaring full or partial lockdown to curb the second wave of COVID-19.

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