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Stock Market Drops 0.10% as Oando Leads Losers’ Chart

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resilient financial market

By Dipo Olowookere

The loss recorded by Oando and 30 other stocks sank the Nigerian Exchange (NGX) Limited deeper by 0.10 per cent on Thursday amid news that inflation cooled for the first time in several months to 33.40 per cent in July.

The National Bureau of Statistics (NBS) yesterday released the inflation numbers, which showed a contraction in the average prices of goods and services last month compared with the 34.19 per cent posted in June 2024.

Despite this information, the stock market maintained its selling pressure posture, resulting in the All-Share Index (ASI) closing lower by 99.24 points to 97,100.36 points from 97,199.60 points and the market capitalisation down by N56 billion to N55.132 trillion from N55.188 trillion.

Business Post reports that the consumer goods sector lost 0.60 per cent during the trading day, while the energy index appreciated by 2.63 per cent.

Further, the insurance counter improved by 0.41 per cent, the banking space slightly went up by 0.03 per cent, and the industrial goods sector closed flat.

It was observed that 31 stocks closed on the losers’ chart yesterday and 14 stocks finished on the gainers’ table, indicating a negative market breadth index and weak investor sentiment.

Oando lost 9.94 per cent to trade at N32.60, ABC Transport declined by 9.52 per cent to 76 Kobo, Livestock Feeds depreciated by 9.09 per cent to N2.20, Guinea Insurance fell by 9.09 per cent to 40 Kobo, and CWG dwindled by 7.69 per cent to N5.40.

On the flip side, Neimeth was the highest price advancer after it closed higher by 9.55 per cent to N2.18, TotalEnergies increased by 8.82 per cent to N511.90, AIICO Insurance gained 6.54 per cent to settle at N1.14, C&I Leasing expanded by 6.07 per cent to N2.97, and UPDC rose by 4.92 per cent to N1.28.

On Thursday, the stock market witnessed a slowdown in trading activities, with the trading volume, value, and number of deals waning by 13.96 per cent, 36.36 per cent, and 13.53 per cent, respectively.

A total of 271.3 million equities worth N3.5 billion were transacted in 7,233 deals at the close of business versus the 315.3 million equities valued at N5.5 billion exchanged in 8,365 deals at midweek.

Veritas Kapital topped the chart with the sale of 33.4 million stocks for N40.7 million, Sterling Holdings traded 16.7 million equities worth N65.9 million, AIICO Insurance transacted 16.4 million shares valued at N18.3 million, RT Briscoe sold 16.2 million equities worth N28.6 million, and GTCO transacted 15.9 million stocks valued at N725.2 million.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

Economy

Oil Prices Jump as Trump Revokes Chevron’s Venezuela Licence

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oil prices driving up Trump

By Adedapo Adesanya

Oil prices rose more than 2 per cent on Thursday amid supply concerns after the US President, Mr Donald Trump, revoked a licence granted to US oil major, Chevron, to operate in Venezuela.

The news led Brent crude oil futures to spike by $1.53 or 2.1 per cent to $74.06 a barrel while the US West Texas Intermediate (WTI) crude oil futures increased by $1.64 or 2.4 per cent to $70.26.

The Chevron licence revocation means the company will no longer be able to export Venezuelan crude.

However, if Venezuelan state oil company, PDVSA, exports oil previously exported by Chevron, US refineries will be unable to buy it because of U.S. sanctions.

President Trump said this was due to the lack of electoral reform in the South American country alongside with insufficient action on migration.

Chevron has been exporting around 240,000 barrels of Venezuelan crude to the US daily after former US President Joe Biden granted them a waiver.

The amount constitutes around 25 per cent of the country’s total oil production and generates substantial revenues that stay in the Venezuelan economy.

Meanwhile, market analysts noted that the move could also lead to the negotiation of a fresh agreement between the Chevron and PDVSA to export crude to destinations other than the US.

This development could also impact the Organisation of the Petroleum Exporting Countries and its allies, OPEC+, to which Venezuela is a member.

Chevron’s exit could reduce Venezuela oil’s production, giving OPEC+ capacity to increase output.

However, investors were still keeping an eye on signs of a potential peace deal in Ukraine, which could result in higher Russian oil flows.

President Trump said Ukrainian President Volodymyr Zelenskiy will visit the US on Friday to sign an agreement on rare earth minerals.

However, the Ukrainian leader said the success of talks would hinge on continued US aid.

The market was pressured by news that US economic growth slowed in the fourth quarter amid cold weather and concerns that tariffs will hurt spending through higher prices.

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Economy

NASD Exchange Closes Flat Despite Posting Six Price Movers

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NASD Exchange bullish

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Wednesday, February 26 with the Unlisted Security Index (NSI) static at 3,268.81 points and the market capitalization unchanged at N1.851 trillion.

The alternative stock exchange closed flat at midweek despite recording six price movers, with two in the green region and four in the red territory.

On the gainers’ side Afriland Properties Plc and FrieslandCampina Wamco Nigeria Plc, with the former rising by N1.12 to N22.80 per unit from the preceding day’s N21.68 per unit and the latter expanding by 76 Kobo to settle at N39.86 per share compared with Tuesday’s closing price of N39.10 per share.

However, First Trust Microfinance Bank Plc lost 5 kobo to close at 47 Kobo per unit compared with the previous day’s 52 Kobo per unit, Geo Fluids dropped 34 Kobo to settle at N3.58 per share versus the preceding session’s N3.24 per share, UBN Property Plc went down by 10 Kobo to finish at N1.75 per unit, in contrast to Tuesday’s closing price of N1.85 per unit, and Central Securities Clearing System (CSCS) Plc declined by 14 Kobo to close at N22.01 per share versus N22.15 per share.

During yesterday’s session, the volume of securities transacted by investors jumped by 99.3 per cent to 1.2 million units from the 605,399 units transacted in the previous trading day.

However, the value of transactions slid by 28.5 per cent to N10.6 million from N14.8 million, while the number of deals went up by 58.3 per cent to 38 deals from 24 deals recorded on Tuesday.

At the close of business, Impresit Bakolori Plc was the most active stock by value (year-to-date) with 533.8 million units worth N520.9 million, followed by Afriland Properties Plc with 16.4 million units valued at 335.2 million, and FrieslandCampina Wamco Nigeria Plc with 8.3 million units valued at N329.2 million.

Industrial and General Insurance (IGI) Plc ended the most active stock by volume on a year-to-date basis with 69.7 million units worth N23.6 million, trailed by Geo-Fluids Plc with 10.9 million units sold for N51.9 million, and FrieslandCampina Wamco Nigeria Plc with 8.3 million units valued at N329.2 million.

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Economy

Naira Remains Unchanged at N1,501/$1 at Official FX Market

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Official FX Market

By Adedapo Adesanya

The Naira closed flat on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, February 26 at N1,501.95/$1.

Also, the value of the local currency against the Pound Sterling and the Euro remained unchanged in the official market during the session at N1,894.72/£1 and N1,570.11/€1 apiece.

However, the Nigerian currency depreciated against the United States currency by N10 at midweek to quote at N1,500/$1, in contrast to the preceding day’s N1,490/$1.

The outcome of the local currency comes amid ease in the wider economy and recent moves like clearing backlogs, which have led to the country’s foreign reserves losing over $2 billion in the last month.

However, market analysts fear that the continued drop in the foreign reserves may only offer temporary respite to the Naira.

In the cryptocurrency market, most of the tokens fell on Wednesday after the US President, Mr Donald Trump, said he plans to impose a 25 per cent tariff on the European Union (EU) during his first cabinet meeting.

The price of Bitcoin (BTC) depreciated by more than 3 per cent in the last 24 hours to close at $85,878.47.

After the recent market selloff, there were calls that the drop might have been the bottom but Mr Trump’s EU tariff plans seem to have dampened market optimism.

The American President claimed that the 27-member union does not accept US cars and farm products while the US buys from the bloc.

On its part, the EU said it will react firmly and immediately against “unjustified barriers to free and fair trade”

Ethereum (ETH) slumped by 5.9 per cent to $2,341.69, Ripple (XRP) went down by 3.7 per cent to $2.20, Cardano (ADA) fell by 2.9 per cent to trade at $0.6625, Dogecoin (DOGE) depreciated by 1.3 per cent to $0.2076, Binance Coin (BNB) weakened by 1.2  per cent to $614.13, and Solana (SOL) declined by 1.0 per cent to $140.03.

But Litecoin (LTC) recorded a 6.9 per cent appreciation to quote at $126.46, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.

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