Investors Gain N662.36m as NGXASI Closes Flat; Overnight Rate Closes Flat at 10.25%; BDC Closes Flat at 746
- EQUITIES MARKET
1.1 NGX – Listed Equities
Nigerian Equities Market closed flat as the key market indicator advanced by 1.22 bps amid negative market breadth
The NGX All-Share Index closed flat at 49,416.18 basis points as against a 0.20% gain recorded previously to close at 49,414.96 basis points at the end of the last trading session. In Naira terms, the NGX Market CAP records a N662.36m gain.
YTD, the NGXASI Stands at +15.68%
The total volume traded advanced by 30.42% to close at 100.09m, valued at N1.3bn and traded in 3,186 deals. GTCO was the most traded stock by volume with 16.44m units traded while GTCO was also the most traded stock by value which is put at N354.75m
Sectoral performance was broadly positive as eight (8) NGX sector index closed northward, four (4) closed southward and six (6) closed flat. The NGXMERIVAL index advanced by 0.51% to top the gainer’s chart while the NGX Insurance index declined by 0.27% to top the losers’ chart.
The Dangote index advanced by 0.05% to close at 136.73 basis points while the Elumelu index closed flat at 111.83 basis points.
At the close of trading, the market recorded 11 gainers to 14 losers and 71 unchanged. UPDCREIT topped the list of gainers while NEIMETH topped the list of losers.
Thus, market breadth closed negative as the Market Breadth Index (MBI) is put at -0.04x.
Volume and Value Contribution
GTCO led the volume’s chart with 16.42% contribution and closely followed by CHIPLC and UBA
GTCO tops the value’s chart with 27.38% contribution and followed by NESTLE and ZENITHBANK
1.2 NASD OTC Exchange – Unlisted Equities
The NASD market index advanced by 0.06% to close at 708.9 basis points as against the 0.02% gain recorded previously to close at 708.47 basis points
The total volume traded advanced by 165.21% to close at 133,823 units valued at N7.34m and traded in 16 deal(s).
At the close of trading, NASD OTC market recorded one (1) gainer(s) to zero (0) loser(s)
1.3 Global Indices
On the global scene, the Brazil Bovespa Index leads the top five gainers with 3.57% gain while the Japan Nikkei 225 Index tops the top five losers with 2.49% loss as of 4pm Nigerian Time
1.4 African Indices
Similarly, on the African scene, the South Africa Financial 15 Index tops the top five gainers with 3.53% gain while the Casablanca Index tops the top five losers with 1.50% loss as of 4pm Nigerian Time
- BONDS AND FIXED INCOME MARKETS
2.1 Debt Market Size
The FMDQ Debt Market Size was not available as at the time of writing this report.
2.2 Overnight and Open Repo (OPR)
The Overnight lending rate closed flat at 10.25% while the Open Repo (OPR) rate contracted by 2.00% to close at 7.50%
- COMMODITIES MARKET
3.1 AFEX Indices
The AFEX ACI advanced by 0.40% to close at 464.13 while the AFEX AEI declined by 0.06% to close at 223.97 basis points
3.2 AFEX Commodity Prices
Paddy rice advanced by 7.80% to top the gainers’ chart while Sorghum declined by 4.54% to top the losers’ chart.
3.3 Global Commodity Prices
Gold recorded 1.53% gain while Silver advanced by 4.31% as of 10: 48 NY time
In the energy market, Brent advanced by 0.31% and WTI also advanced by 0.52% as of 10: 50 AM Central Daylight Time (CDT)
- CURRENCY/ FX M7ARKET
The naira at the I&E FX Window depreciated to close at N452.67/USD while the NAFEX rate depreciated by 0.18% to close at N450.22/USD
FG Generated N625bn VAT in Q3 2022 – NBS
– According to a report by the National Bureau of Statistics (NBS), the figure represents an increase of 4.21 per cent from the N600.15 billion generated in Q2 2022. Source Sun Read More
FITC Advocates Film Industry, Financial Institutions Partnership for Funding and National Growth
– The Financial Institutions Training Centre (FITC) has called for collaboration between the Film Industry and Financial Institutions to stimulate funding and achieve greater impact on the economy. Source Leadership Read More
Nigeria’s oil output under Buhari lowest since 1999
– Nigeria saw its crude oil production fall the most in two decades on President Muhammadu Buhari’s watch, data collated by BusinessDay show. Source BusinessDay Read More
Wise Suspends Ghana Cedi Transfers Amid Volatility
– Cross-border payments company Wise (WISEa.L) has suspended transfers in Ghana’s cedi currency after a rapid appreciation against the dollar this week made it costlier to move money to the West African country, a Wise spokesperson told Reuters on Friday. Source Reuters Read More
Government of Ghana Suspends Debt Service Payments on Selected External Debts Pending an Orderly Restructuring of Affected Obligations
– Ghana is faced with major economic and financial crisis, and its attendant social challenges. In 2020 and 2021, the covid-19 pandemic negatively impacted our fiscal and economic situation. Global risk aversion triggered large capital outflows, a loss of external market access and rising domestic borrowing costs. Source Republic of Ghana Read More
Cashless Policy: PoS Operators Write Buhari, Lobby Lawmakers
– According to a Punch news report, Point-of-Sale (Pos) operators across the country under the umbrella of the Association of Mobile Money and Bank Agents of Nigeria (AMMBAN) have appealed to the President to prevail on the Central Bank of Nigeria (CBN) to review the current maximum cash withdrawal upward. Source CSL Research Read More
SEC Approves NGX Technology Board Listing Rules
– Nigerian Exchange Limited (“NGX or “The Exchange”) is pleased to announce that the Securities and Exchange Commission (SEC) approved the Rules for Listing on NGX Technology Board on 15 December 2022. Source NGX Read More
Wheat Price Rises by 50% as Import Falls
– The price of durum wheat has risen by 50 per cent since the start of 2022 and its importation has fallen by 16.09 per cent. This is because of the global scarcity of wheat caused by the Russian-Ukraine and the lack of foreign exchange in the nation. Source Punch Read More
U.S. Poised to Become Net Exporter of Crude Oil in 2023
– The United States has become a global crude oil exporting power over the last few years, but exports have not exceeded its imports since World War II. That could change next year. Source Reuters Read More
Qualcomm Introduces Africa Innovation Platform
– Qualcomm Incorporated has announced the launch of the Africa Innovation Platform, a suite of mentorship, education, and training programs created to support the development of Africa’s emerging technology ecosystem. Source TechEconomy Read More
Insurance sector raked in N532.7 billion income in Q3 – NAICOM
– The National Insurance Commission (NAICOM) has released its third-quarter performance, showing that the insurance industry recorded a premium income of N532.7 billion within that period. Source Sun Read More
IFC: 80% African Start-ups Have Funding Challenges
– The World Bank’s private investment arm, the International Finance Corp (IFC) has said that 80 per cent of African start-ups have funding challenges that the organisation can intervene to reduce markedly. Source ThisDay Read More
OPECplus Maintains Oil Output Levels at the December 2022 Meeting
At its 34th monthly ministerial meeting held earlier this month, the OPEC+ group agreed to maintain global oil output at 41.9mbpd, in line with the decision agreed at an earlier meeting on the 5th of October 2022. The participating countries adjusted the frequency of the meetings to every two months and pledged to meet in the event of an emergencies. The decision by the oil cartel follows the European Union’s (EU) ban and the USD60/b price cap on Russian seaborne crude oil exports. By maintaining oil output at current levels, the OPEC+ group will sustain the cut in oil output by 2mbpd until the end of next year.
In reaction to the price cap and export ban by the EU, the Russian government has drafted a decree that bans the sale of Russian crude oil to buyers that are part of the Price Cap Coalition.
Oil prices have not fared well in H2 2022, shedding c.29% on average. The decline in oil prices was driven by slowing global growth, weak oil demand in China due to Covid-19 restrictions (now suspended), a build-up in global oil inventories and concerns of a potential global recession.
However, following the decision by OPEC+ at its December 2022 meeting and announcements in China, oil benchmark prices in the last week have risen by an average of 4% to USD79.04/b and USD74.45/b for Brent and WTI respectively.
The World Bank forecasts oil prices to average USD92/b in 2023 and USD80/b in 2024, down from a projected USD100/b in 2022. However, prices will remain well above their recent five-year average of USD60/b. In our view, the forecast is highly uncertain, with various factors which could materially alter global supply or demand balances.
In terms of oil supply, the World Bank expects variables such as the EU sanctions on Russia and the G7 oil price cap, OPEC+ production capacity, the outlook for U.S. shale oil, and the use and refilling of strategic oil inventories to impact volumes. We note that variables such as a potential global recession and the easing of COVID-19 restrictions in China could impact demand.
According to the IMF press release on this decision, the Ghanaian government has promised a wide fiscal restructuring over the coming years to restore macroeconomic stability and debt sustainability.
For Nigeria, actual oil output continues to fall behind its OPEC+ quota due to issues around crude oil production leakages, theft and evacuation challenges. We expect that production challenges will be less severe in 2023. In November, OPEC’s data from secondary sources indicate that Nigeria’s crude oil production was at 1.2mbpd. This compares with its OPEC+ target of 1.8mbpd (ex-condensates).
Last week, the Nigerian National Petroleum Company Limited (NNPCL) disclosed the re-opening of the Forcados and partial restoration of the Trans Niger Pipeline (TNP), which has lifted Nigeria’s oil output to 1.6mbpd. According to the NNPCL, a collaboration between the security agencies, local community contractors, and NNPC led to the restart of Forcados. It also noted that operations at the Brass and Bonny terminals (which were shut down due to force majeure) would recommence operation soon
If Nigeria successfully increases its oil output, we understand that the government could approach OPEC+ to request for an upward adjustment for its output quota. Five OPEC+ members — Saudi Arabia, Russia, Iraq, Kuwait and the UAE — were granted baseline increases in 2021, effective as of May 2022.
