The rise and fall of cocoa as Nigeria’s top export
Cocoa was one of the main sources of income in Nigeria prior to Independence, but that changed following the exportation of crude oil in commercial quantities in the 1970s. Prior to the rise of crude oil, the agriculture sector was the dominant contributor to domestic
Rising costs force FMCG firms to raise prices
Fast-Moving Consumer Goods (FMCG) companies in Nigeria have been forced to overlook consumers’ sensitivity to prices as they increased prices to cushion the effects of rising production costs and inflationary pressures, BusinessDay findings show.
Lagos Commodities and Futures Exchange set to go live
Lagos Commodities and Futures Exchange (LCFE) has concluded arrangements to commence real time trading this month as part of the plans to inaugurate the pan African Commodities Exchange. As a build-up to the historic inauguration, scheduled for Thursday, July 28…
Fuel scarcity: Passengers groan over flight delays, cancellations
Passengers travelling from various airports in Nigeria are again experiencing flight delays and cancellations as aviation fuel scarcity resurfaces. Last week, airlines bought aviation for as high as N850 per litre with some suppliers running out of fuel and unable to…
CBN hikes rate to 14 percent to curtail inflation
The Central Bank of Nigeria’s MPC has hiked interest rate to 14 percent to curtail inflation. The move is targeted at curtailing surging inflation uptick. The apex bank raised Monetary Policy Rate (MPR) by 100 basis points to 14percent, the second straight raise this year.
Buhari launches NNPC Limited, says new status will deliver value to 200 million shareholders
In a landmark event that officially changes the oil firm from a wholly state-run entity to a commercial oil company, limited by shares, President Muhammadu Buhari says the new status of Nigerian National Petroleum Company Limited will enable the commercial entity to deliver value to 200 million shareholders.
Six major changes to expect as NNPC transits to commercial entity
The transformation of the Nigerian National Petroleum Company Ltd (NNPC) into an entity that would be regulated in line with the provisions of the Companies and Allied Matters Act (CAMA) is expected to provide a leeway for the commercial entity to be run as a private company without government interference.
Nigeria’s stock market sees first dip on rate hike
After a two-day rally on Nigeria’s equities market, it recorded its first negative close on Tuesday as the Central Bank’s Monetary Policy Committee (MPC) moved to curtail inflation by hiking Monetary Policy Rate (MPR) to 14percent. The MPR increase by 100 basis points is its second straight raise this year
Rising cost: Airlines seek 40% fuel surcharge
Airlines in Nigeria under the aegis of Airline Operators of Nigeria (AON) have written to the Nigerian Civil Aviation Authority (NCAA) seeking the approval of the regulatory body to impose 40 percent fuel surcharge as a measure to mitigate the effects of the consistent rise in the price of Jet A1 on airline operations in the country.
Buhari gives Education Minister two weeks to settle ASUU strike
As the Academic Staff Union of Universities (ASUU) strike enters its sixth month, President Muhammadu Buhari has directed the Federal government’s team, headed by Adamu Adamu, the education minister, to resolve the issue within the next two weeks and report back to him.
Investors Lose N5.97bn as NGXASI Dips Marginally by 0.02%; Overnight Rate Expands by 0.50% to Close at 14.50%; BDC Rate Depreciates to N630
1. EQUITIES MARKET
1.1 NGX – Listed Equities
Nigerian Equities Market halts positive posture as sell pressure permeates trading activities amid positive market breadth.
The NGX All-Share dipped marginally by 0.02% to close at 52,308.88 basis points as against 0.20% gain recorded to close at 52,319.94 basis points at the end of the previous trading session. In Naira terms, the NGX Market CAP records N5.97bn loss.
YTD, the NGXASI Stands at +22.46%
The total volume traded advanced by +76.85% to close at 205.64m, valued at N2.78bn and traded in 4,127 deals. UBA was the most traded stock by volume with 74.28m units traded while MTNN was the most traded stock by value which is put at N876.34m.
Sectoral performance was positive as nine (9) NGX sector index closed northward, six (6) closed southward while three (3) closed flat. The NGX Insurance Index inched up by +0.86% while the NGX Banking Index dipped by -0.41% to top all sector indices otherwise.
Dangote index inched up by 0.02% to close at 138.22 basis points while Elumelu index also closed positive with +0.32% gain recorded to close at 113.05 basis points.
At the close of trading, market recorded 16 gainers to 14 losers and 67 unchanged. RTBRISCOE topped the list of gainers while MULTIVERSE topped the list of losers. Thus, market breadth closed positive as the Market Breadth Index (MBI) is put at +0.03x.
Volume and Value Contribution
UBA led the volume’s chart with 36.12% contribution and closely followed by ACCESSCORP and AIICO
MTNN tops the value’s chart with 31.44% contribution and closely followed by UBA and SEPLAT
NGX Corporate News
MTN Nigeria Plc has applied to the SEC in respect of the registration of a new N200bn Bond Issuance Programme. This second Bond Issuance Programme is a follow-on to the successful N200bn debut bond issuance programme in 2021 under which the company issued the N110bn 13% 7 Year Series I Bonds Due 2028 and N90bn 12.75% 10 Year Series II bonds due 2023. The proceeds of the bond issuance will be used for capital expenditure, working capital management and general corporate purpose.
FBN Holdings Plc has Issued Statement on Recent Publication on Court Order Against AGM Held on June 20, 2022. The statement reads thus:
In accordance with Nigerian Exchange Limited (NGX) Rulebook, we hereby notify NGX and the. investing public-that our attention has been drawn’to an online publication dated July 17, 2022: stating that the Federal High Court sitting in Lagos, Nigeria, has granted an ex parte Order against FBN Holdings Pic and some other Respondents. |
FBN Holdings Plc remained unaware of any, lawsuit or court order against it until about 3pm today when a copy of same was served-on it. The exparte order essentially directs FBN Holdings and the-other Respondents to maintain status quo ante bellum prevailing before FBN Holding Plc’s 10th Annual General Meeting (AGM) held on June 20, 2022 pending the hearing and final determination of the motion On notice for interlocutory injunction.
1.2 NASD OTC Exchange – Unlisted Equities
The NASD market index inched up by +0.25% to close at 773.17 basis points as against -0.10% loss recorded previously to close at 771.28 basis points
The total volume traded advanced by +524.54% to close at 479,464 units valued at N10.40bn and traded in 11 deals.
At the close of trading, NASD OTC market recorded Three (3) gainer(s) to Zero (0) loser(s)
Volume and Value Contribution
SDCSCSPLC led the volume chart with 92.10% contribution
SDCSCSPLC led the value chart with 59.89% contribution
NASD Earnings Summary
No Financial statement was released on the NASD OTC Exchange today.
NASD Corporate News
No Corporate News was released on the NASD OTC Exchange today.
1.3 Global Indices
On the global scene, the Italy Index leads the top five gainers with 2.74% gain while the Russia MICEX Index tops the top five losers with -1.30% loss as of 4pm Nigerian Time
1.4 African Indices
Similarly on the African scene, the Kenya ASI tops the top five gainers with 2.75% gain while the Zimbabwe All Share Index tops the top five losers with -1.09% loss as of 4pm Nigerian Time
2. BONDS AND FIXED INCOME MARKETS
2.1 Debt Market Size
The FMDQ Debt Market Size was not available as of the time of finalising this report.
2.2 Overnight and Open Repo (OPR)
The overnight lending rate expanded by 0.50% to close at 14.50% while the Open Repo (OPR) rate also expanded by 0.38% to close at 14.38%
3. COMMODITIES MARKET
3.1 AFEX Indices
The AFEX ACI inched up by 0.52% to close positive at 464.71 points while the AEI closed flat at 194.84 points
3.2 AFEX Commodity Prices
Sorghum advanced by 23.52% to top the gainers’ chart while the remaining commodities closed flat.
3.3 Global Commodity Prices
Gold recorded 0.33% gains while Silver also advanced by 0.59% as of 11:32 NY time
In the energy market, Brent declined by 0.54% while WTI advanced by 2.49% as of 10:48AM Central Daylight Time (CDT)
4. CURRENCY/ FX MARKET
The naira appreciated by 1.16% at the I&E FX Window to close at N424.17/USD while the NAFEX rate depreciated by 0.23% to close at N423.17.
Source: FMDQ, BDC
Inflation Climbs to 18.60%, Tripping Analysts Early Forecasts
Nigeria’s Inflation rose by 88bp in June to settle at 18.6% Y-o-Y, up from +17.71% in May 2022, the new CPI numbers were released by the National Bureau of Statistics (NBS) on Friday 15 July 2022. The inflation print has drawn several reactions from analysts. The last time Nigeria’s inflation was this high was in January 2017, when inflation rose to 18.72%. Source Proshare Read More
NNPC’s Commercialization Should Prioritize People and Processes
As the nation braces for the commercialization of the state oil company, the Nigerian National Petroleum Company, tomorrow, two critical issues, the ‘People’ and ‘Processes,’ should be prioritized in the company’s transformation. Source Proshare Read More
CBN’s RT200 Rebate Spurs $2.4bn Inflows from Non-Oil Exports
Non-oil exporters have ramped up the repatriation of export proceeds through the Investors and Exporters (I&E) window of the foreign exchange (forex) market in response to the RT 200 programme introduced by the Central Bank of Nigeria (CBN). Source Daily Trust Read More
Oil Prices Fall, taking a Breather from Massive Surge
Oil prices fell on Tuesday, taking a breather after surging more than $5 a barrel in the previous session as a plunging dollar supported buying interest and on expectations the U.S. Federal Reserve’s interest rate hike may be less than thought. Source Reuters Read More
AfDB, SEC Sign $460,000 Grant to Deploy Surveillance System In Nigeria’s Capital Market
The Securities and Exchange Commission (SEC) says it has signed an agreement with African Development Bank (AfDB) Group for a grant on a market surveillance system project. Source TheCable Read More
Non-Harmonisation of Exchange Rate, Hurting FPIs – Experts
The current lack of rate harmonisation in the foreign exchange market is hurting Nigeria’s ability to attract foreign capital. According to economic experts who spoke during the Nairametrics Economic Outlook webinar held at the weekend, the unification of the exchange rate will enable more foreign investment in the country. Source The SUN Read More
Power Supply to Drop Again, TCN Alerts Nigerians
Power supply will drop by 50 megawatts on Wednesday, The PUNCH has learnt. The Transmission Company of Nigeria, in a statement on Monday, said the drop would be as a result of planned annual “preventive maintenance” on the line bay at Lekki Transmission Substation in Lagos. Source Punch Read More
Aero Contractors Suspends Flight Operations
Nigeria’s oldest airline, Aero Contractors said it would suspend passengers flights operations indefinitely from Wednesday, July 20. Also, the Airline had denied in May that it would shut down operations over a liquidity crisis. Source Vanguard Read More
We’ll Deliver Over 5000MW of Power – NERC Chair
In the recent past, electricity generation has nose-dived, and this has translated to customers’ poor experience. In our recent engagement, we were able to explain the reasons for the problem ranging from gas supply to vandalism, and infrastructure. Source Punch Read More
Microsoft Launches Project AirSim, an End-to-end Platform to Accelerate Autonomous Flight
Microsoft has launched a project AirSim, an end-to-end platform to accelerate autonomous flight. Project AirSim can be used to build, train, and test autonomous drones through hyper-realistic simulations of real-world scenarios. Source TechEconomy Read More
Afreximbank Provides Grant to Grand Africa Initiative to Train African Youth Entrepreneurs on Delivering AfCFTA Goals
African Export-Import Bank (Afreximbank) has announced a grant to Grand Africa Initiative (GAIN) targeted at training two hundred young African entrepreneurs on entrepreneurship and intra-African trade, over three months starting July 2022. Source TechEconomy Read More