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Tag: NGX

  • Naira appreciates to N1,565/$ in parallel market

    Naira appreciates to N1,565/$ in parallel market

    The Naira yesterday appreciated to N1,565 per dollar in the parallel market from N1,570 per dollar on Wednesday. But the Naira depreciated to N1,515.06 per dollar in the Nigerian Foreign Exchange Market (NFEM).

    Data published by FMDQ Exchange showed that the indicative exchange rate for the naira rose to N1,515.06 per dollar from N1,511.63 per dollar on Wednesday, showing N3.43 depreciation for the naira.

    Consequently, the margin between the parallel market and NFEM rate narrowed to N49.94 per dollar from N58.37 per dollar on Wednesday.

  • Naira down to N1,570/$ in parallel market

    Naira down to N1,570/$ in parallel market

    The Naira yesterday depreciated to N1,570 per dollar in the parallel market from N1,560 per dollar on Tuesday.
    But the Naira appreciated to N1,513 per dollar in the Nigerian Foreign Exchange Market (NFEM).

    Data published by the Central Bank of Nigeria, CBN, showed that the indicative exchange rate for the naira fell to N1,513 per dollar from N1,513.1 per dollar on Tuesday, showing a 10 kobo appreciation for the naira.

    Consequently, the margin between the parallel market and NFEM rate widened to N57 per dollar from N46.9 per dollar on Tuesday.

  • Foreign portfolio investments increase 126.8% to N396.4bn

    Foreign portfolio investments increase 126.8% to N396.4bn

    Foreign Portfolio Investments, FPIs, inflows through the Nigerian stock market grew by 126.8 % at the end of December 2024 to N396.41 billion from N174.82 billion in the full year 2023.

    Investment analysts have attributed the development to the monetary policy regime of the Central Bank of Nigeria, CBN, which pushed up interest earnings on portfolio investments since last year.

    However, Vanguard’s findings from the data released by the Nigerian Exchange Limited, NGX, showed that the foreign investment outflow also increased by 93.2 % to N455.62 billion from N235.82 .83 billion in 2023.

    The total foreign transactions (Inflow & Outflow) Year-to-Date, YtD, stood at N852.03 billion indicating a 107.5% jump from N410.64 billion in 2023.

    The data further revealed that domestic investors recorded N4.734 trillion transactions accounting for 84.7% of the total N5.586 trillion value of transactions recorded by the Nigerian Exchange, NGX, YtD.

    The retail investors recorded N2.306.trillion in 2024 against N1.120 trillion in 2023, while domestic institutional investors recorded N2.428 trillion in 2024 against N2.047 trillion recorded in 2023.

    Meanwhile, the data as at 31 December 2024 showed that total transactions at the nation’s bourse increased by 52.29% from N442.34 billion (about $265.93 million) in November 2024 to N673.66 billion (about $438.64 million) in December 2024.

    The performance of the 2024 figure when compared to the performance in December 2023 revealed that total transactions executed by investors on the NGX significantly increased by    56.1% to N5.586 trillion from N3.357 trillion in 2023. Also the total value of transactions executed by domestic investors

    outperformed transactions executed by Foreign Investors by circa 80%.

    The institutional investors outperform retail investors by 5.3 % in the period under review. Specifically, institutional investors recorded N2.428 trillion from N2.047 trillion in 2023 representing 18.5 % increase,      ,while retail investors posted N2.306 trillion in 2024 against N1.120 trillion in 2023, indicating 105.9 increase.

    Reacting to the increased FPIs , David Adonri, Vice Chairman, Highcap Securities, said: “When FPIs flow into the stock market, it impacts the foreign exchange market positively as the rate in the FX market is determined by demand and supply dynamic.This, in turn, also boosts foreign reserves. Increase in FPI is also indicative of rising foreign investors’ confidence in the stock market and the economy at large.”

  • FG should limit contracts to firms listed on NGX — Expert

    FG should limit contracts to firms listed on NGX — Expert

    The federal government   should    award contracts only to construction companies listed on the Nigerian Exchange Limited (NGX) to enable broader wealth distribution to Nigerians.

    Chief Executive Officer of Nairametrics, Mr. Ugodre Obi-Chukwu, who made the assertion, noted that there should be mandatory listing of companies executing major infrastructure projects in Nigeria, including the Lagos-Calabar Coastal Highway, on NGX.

    Speaking at a seminar hosted by the Finance Correspondents Association of Nigeria (FICAN) in Lagos, themed, “Outlook for the Nigerian Economy in 2025,” Obi-Chukwu highlighted that listing such companies on NGX would significantly enhance capital formation for critical infrastructure development and enable broader wealth distribution across the country.

    Obi-Chukwu explained that when infrastructure companies are listed on NGX, it would unlock a new funding avenue for projects while allowing the public to invest and share in the collective wealth.

    He stated: “For a lot of the projects going on in Nigeria now, such as the Lagos-Calabar Coastal Highway and other government infrastructure projects, the companies executing those projects for the government should be made to list on NGX, because when they list, capital flows across the country.

    “By making these companies accessible to the public through the stock market, Nigeria could benefit from increased transparency and accountability in how projects are financed and executed.”

    He also pointed out that such listing would ensure that Nigerians could receive dividends from these projects, allowing them to partake in the country’s economic growth.

    Obi-Chukwu stressed that private companies executing large infrastructure projects without significant public involvement could result in a concentration of wealth among a few.

    “However, if these companies were listed on NGX, the wealth generated would be more widely distributed. “Once you do that, you will see a change in how the economy is growing, and you will see how wealth flows around the country,” he said.

  • Nigerian Stocks end a November in red, first time since 2018

    Nigerian Stocks end a November in red, first time since 2018

    The All-Share Index fell by 0.15%, ending the month below its opening level in November, as price movements struggled to establish an upward trend. 

    This is the first time the All Share Index has closed the month of November in red since 2018 snapping a 5-year winning streak 

    By the close of trading on November 29, 2024, the All-Share Index stood at 97,506.87 points, marking a slight decrease month-to-date from an opening of 97,650.66. 

    Market activity surged as total trading volume reached 10.8 billion shares, reflecting a 28.74% increase from the 8.3 billion shares recorded in October.  

    Despite the lackluster price movements, the market’s overall capitalization remained robust, staying above the N59.1 trillion mark.   

    Year-to-date, the All-Share Index has shown an impressive growth of over 30.4%, reflecting a strong underlying performance despite the relatively flat price action in November.  

    Market performance highlights  

    November saw a brief lull in overall price activity, with the broader index experiencing limited movement. This subdued momentum was reflected across the sub-indexes, which closely followed the flat trend of the main index.   

    In the month under review, the NGX Main Board Index and NGX 30 experienced declines of 0.87% and 0.04%, respectively. In contrast, the NGX Premium Index demonstrated a more robust performance, advancing by 1.49%. 

    Despite the general stagnation, several sectors posted notable gains.

    Market performance highlights  

    November saw a brief lull in overall price activity, with the broader index experiencing limited movement. This subdued momentum was reflected across the sub-indexes, which closely followed the flat trend of the main index.   

    In the month under review, the NGX Main Board Index and NGX 30 experienced declines of 0.87% and 0.04%, respectively. In contrast, the NGX Premium Index demonstrated a more robust performance, advancing by 1.49%. 

    Despite the general stagnation, several sectors posted notable gains.   

    • The NGX Insurance index surged by a monthly 9.11%, fueled by strong performances from SUNU ASSURANCES and PRESTIGE.   
    • The NGX Banking index also showed solid growth, rising 3.39%, bolstered by impressive increases in ZENITH and UBA shares, both of which saw gains of over 9%.  
    • The NGX Oil and Gas index rose by 3.20%, largely driven by the positive performance of CONOIL.   
    • Meanwhile, the NGX Industrial Goods index grew by 2.14%, and the NGX Consumer Goods index saw a 2.40% increase propelled by outstanding performances from CADBURY and UNILEVER, which both saw their share prices soar by more than 15%.  

    • Top gainers   

      Leading the charge among gainers was JOHNHOLT PLC, which saw an impressive surge of 170.30% over the month. SUNU ASSURANCES followed closely, rising by 86.60%, while LAFARGE AFRICA posted a notable gain of 50.04%.  

      Other gainers included:  

      CONOIL: Up by 45.80% (closing at N276.00)  

      PRESTIGE: Up by 35.59% (closing at N0.80)  

      CONSOLIDATED HALLMARK: Up by 35.14% (closing at N2.00)  

      FLOUR MILLS OF NIGERIA: Up by 30.81% (closing at N81.10)  

      CADBURY NIG: Up by 29.88% (closing at N21.30)  

      MANSARD INSURANCE: Up by 19.32% (closing at N7.04)  

      DANGOTE SUGAR: Up by 13.64% (closing at N35.00)     

      Top losers   

      At the opposite end of the spectrum, OANDO topped the list of decliners, suffering a significant drop of 27.55%. Other notable losses were recorded in ABBEY MORTAGE BANK, which declined by 26.15%, and MULTVERSE, which saw a decrease of 25.79%.  

      Other decliners included:  

      ETERNAOIL: Down by 24.36% (closing at N20.80)  

      RTBRISCOE: Down by 18.03% (closing at N2.50)  

      LASACO ASSURANCE PLC: Down by 16.47% (closing at 2.13)  

      VERITAS KAPITAL: Down by 15.49% (closing at N1.20)  

      DEAP CAPITAL MANAGEMENT TRUST: Down by 15.20% (closing at N1.06)  

      DAARCOMM: Down by 10.29% (closing at 0.61)  

      MEYER: Down by 9.98% (closing at N7.67)  

      Corporate actions   

      A range of corporate actions unfolded in November, with the release of third-quarter results comprising the bulk of the key disclosures for the month.   

      FBN Holdings Plc disclosed its Q3 financial report.  

      Cadbury Nigeria Plc released its Q3 financial report.  

      Zenith Bank Plc shared its Q3 financial report.  

      Access Holdings Plc released its Q3 financial report.  

      Oando Plc announced its Q3 financial report.  

      Seplat Energy Plc revealed the currency exchange rate for its Q3 2024 interim dividend.  

      MTN Nigeria Communications Plc completed the issuance of Series 11 and 12 commercial papers.  

      Outlook  

      • Every month, the All-Share Index is currently undergoing a period of retracement within the broader context of a long-term upward trend. This phase of consolidation offers the potential for a strong rebound in the coming months as market conditions evolve.  
      • However, the sustained robust performance of large-cap stocks could act as a catalyst, steering the index back toward its long-term bullish trajectory.  

      • Izuchukwu Okoye

        Okoye Izuchukwu is a financial market writer and trader with extensive expertise in both Nigerian and international markets. With a keen eye for market trends and a passion for insightful analysis, he translates complex financial concepts into engaging content. By combining practical trading experience with thorough research, Okoye offers valuable perspectives that empower readers to make informed decisions in the ever-evolving world of finance.

      •  NGX