Business
Stock market set to bounce back after August losses
Stock market set to bounce back after August losses
Investors lost a total of N36 billion in the month of August 2024 reflecting the bearish market that pervaded in the first three weeks, with the Nigerian Exchange, Limited, NGX, major market indicator, All Share Index, declining by 1.2% Month-on-Month, MoM, to close at 96,579.54 points as against 97,774.22 points in July 2024.
The market capitalization measured as the total value of investors’ assets on the Exchange closed the month of August at N55.477 trillion from N55.513 trillion the previous month.
Meanwhile, analysis of the equities market showed that NGX Mainboard Index closed higher in the month under review at 4,790.05 points from 4,744.96 points the previous month, but the NGX 30 Index went down to 3,589.85 points from 3,614.26 points, just as Banking Index declined to 857.21 points from 801.43 points.
READ ALSO:
- Abia man gouging wife’s eyes out saddens Otti’s wife
- Katsina varsity student confesses supplying arms to terrorists
- UAE announces 2-month amnesty for expired visa holders
However, the market bounced back last week with Week-on-Week, WoW, trading showing the All-Share index advanced by 0.6% WoW to 96,580.01 points, driven by strong investors’ interest in OANDO which gained 6.7 % following the completion of the acquisition of the Nigerian Agip Oil Company (NAOC) as well as bargain hunting activities in BUA Foods that went up 5.7%. As a result, the Year-to-Date returns close at 29.2%.
Sectoral performance was broadly positive, as the Oil and Gas Index up 8.5%, Insurance Index 5.8%, Consumer Goods Index 3.5%, Banking 2.0% and Industrial Goods Index 0.1%.
Commenting on the market performance, analysts at Cordros Research stated : “In the near term, we believe the absence of a near-term catalyst will likely tilt overall market sentiment toward the negative, and likely drive negative performances consequently. In the medium term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income market.”
In their own reactions, analysts at InvestData Consulting Limited stated: “ We expect mixed sentiment as August set for losses on profit taking and sector rotation as market remain on oversold region. Portfolio repositioning is however continuing, with investors taking advantage of pullbacks to buy into value. This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”
Stock market set to bounce back after August losses
Business
Naira exchanges N1,650/$ in parallel market
Naira exchanges N1,650/$ in parallel market
Yesterday, the Naira appreciated N1,650 per dollar in the parallel market, compared to N1,655 on Monday.
Similarly, the Naira appreciated to N1,535 per dollar in the official foreign exchange market.
Data published by the Central Bank of Nigeria, CBN, showed that the exchange rate for the Nigerian Foreign Exchange Market (NFEM) fell to N1,535 per dollar from N1,537 per dollar on Monday, indicating N2 appreciation for the naira.
READ ALSO:
- Tension as Anambra community union asks monarch to stop Ofala Festival
- Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation
- Lagos govt clears traders from rail tracks at Bolade, Oshodi
Consequently, the margin between the parallel market and NFEM rate narrowed to N115 per dollar from N118 per dollar on Monday.
Naira exchanges N1,650/$ in parallel market
Business
Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation
Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation
The exchange rate between the naira and the dollar ended the year at N1,535/$1 representing a 40.9% depreciation for 2024.
The official exchange rate between the naira and dollar closed in 2023 at N907.11/$1 thus depreciating by 40.9% for the year which compares to a 49.1% devaluation at the end of 2023.
READ ALSO:
- Lagos govt clears traders from rail tracks at Bolade, Oshodi
- Four countries that won’t celebrate New Year
- Social media abuzz over Fayose claim of N50m donation to VeryDarkMan’s NGO
Nigeria introduced several foreign exchange policies in 2024 as the central bank expanded on market-friendly forex policies to attract foreign investors.
Meanwhile, on the parallel market where the exchange rate is sold unofficially, the naira exchanged for N1,660 to the dollar when compared to N1,215/$ according to Nairametrics tracking records. This represents a 26.8% depreciation.
Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation
Business
Warri refinery: Marketers hopeful of further petrol price drop
Warri refinery: Marketers hopeful of further petrol price drop
There was excitement on Monday as the Warri Refining and Petrochemical Company (WRPC) commenced partial production.
This is coming after nearly a decade of dormancy as the 125,000 barrels per day refinery was confirmed to be working at 60 per cent capacity, according to the Nigerian National Petroleum Company Limited (NNPCL).
The refinery, inactive since 2015 due to prolonged repairs, reportedly began refining activities last Saturday at its Area 1 plant, where crude oil was successfully pumped into the system.
This was coming about a month after the commencement of operations at the 60,000-barrel-per-day-old Port Harcourt Refinery.
The NNPCL Group Chief Executive Officer, Mele Kyari, announced the resumption of operation at the Warri Refinery during a tour of the facility on Monday.
Kyari was seen in a video posted by Channels TV addressing a tour team, which included the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed.
READ ALSO:
- Catholic priest sentenced to 11 years for criticising his president
- Warri refinery now operational, doing 125,000bpd – NNPCL boss
- Kwankwaso says no power-sharing agreement with Atiku, Obi
Earlier, Kyari explained that the inspection aimed to show Nigerians the level of work completed so far.
He said though the repairs on the facility were not 100 per cent complete, operations had commenced.
He said, “We are taking you through our plant. This plant is running. Although it is not 100 per cent complete, we are still in the process. Many people think these things are not real. They think real things are not possible in this country. We want you to see that this is real.”
With the addition of Warri Refinery, Nigeria’s refining capacity has further increased with marketers anticipating a further reduction in price of premium motor spirit (PMS).
The 650,000-barrel Dangote Refinery has commenced production in addition to the Port Harcourt Refinery with a total capacity of 210,000 barrels per day (bpd) comprising 60,000 bpd for the old plant and 150,000 bpd for the new plant.
It’s good for business, prices may reduce – Marketers
Major Energy Marketers’ Association of Nigeria (MEMAN) and the Independent Marketers Association of Nigeria (IPMAN) welcomed the revival of the Warri refinery, saying it would deepen competition, diversify supply and ultimately resort to price reduction.
Executive Secretary of MEMAN, Clem Isong in a chat with our correspondent stated that the Warri Refinery is the shortest route to the North, describing its revival as good news.
“The market becomes more competitive and we are diversifying supply,” he said.
On whether it would lead to price reduction, he stated, “There are many factors that affect price, competition is always good and you can always get your product at the best price.”
National Public Relations Officer of IPMAN, Alhaji Olanrewaju Okanlawon in a chat with our correspondent said, “If there is excess supply, it will keep bringing down the price. We now run a free market and it is about demand and supply. It will continue bringing down the price. It will decongest Lagos.”
Energy expert, Dr. Ayodele Oni said the resumption of Warri Refinery would boost the local refining capacity in addition to enabling the country to sell to other neighbouring countries.
“We can refine more and even have some to sell. We now stop being hewers of wood and drawers of water. We add value to what we produce and can make/ do more with our base resources. This is very pleasant news,” he said.
Warri refinery: Marketers hopeful of further petrol price drop
-
Politics3 days agoGbajabiamila speaks on his rumoured Lagos governorship ambition
-
metro2 days agoFarotimi to pursue disbarment over arrest, defamation allegations
-
Business2 days agoReal reason Dangote, NNPC drop petrol price — IPMAN
-
Health2 days agoABU Teaching Hospital will begin kidney transplant in 2025 – CMD
-
Sports24 hours agoAnthony Joshua prostrates before Governor Abiodun during Ogun visit
-
metro3 days agoEl-Rufai accuses Tinubu govt of Yoruba agenda, Reno Omokri reacts
-
metro2 days agoNigerian govt urged to intervene in Mozambique post-election violence
-
metro3 days agoAdeleke presents staff of office to new Owa-Obokun amid protest