Economy
NSE: Equities in Free fall, index drops by 0.42%, investors lose N56bn
…As China-U.S. trade dispute hits Yuan exchange rate***
Equities continued its free fall on the Nigerian Stock Exchange (NSE) Wednesday, with the All-Share Index dropping further by 0.42 per cent, amid losses in 17 stocks, and investors losing N56 billion in value, as market capitalisation closed lower at N13.358 trillion, against N13.414 trillion on Tuesday.
Consequently, the index shed 115.27 points (or 0.42 per cent) to close at 27,412.13 against 27,527.40 recorded on Tuesday.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which include Dangote Cement, Red Star Express, Flour Mills Nigeria, Zenith Bank and Continental Reinsurance.
Analysts at Afrinvest Limited said: “We still maintain our bearish outlook for the rest of the week in the absence of any major catalyst.
“However, we see opportunities for bargain hunting in stocks with sound fundamentals.”
Red Star Express led the losers’ chart in percentage terms dropping by 9.85 per cent to close at N4.76 per share.
Continental Reinsurance followed with a decline of 9.68 per cent to close at N1.40, while Jaiz Bank went down by 9.52 per cent to close at 38k per share.
Japaul Oil & Maritime Services lost 9.09 per cent to close at 20k, while Mutual Benefits Assurance shed 8.33 per cent to close at 22k per share.
On the other hands, AIICO Insurance recorded the highest price gain of 9.38 per cent to close at 70k per share.
Conoil followed with a gain of 6.33 per cent to close at N17.65, while Lasaco Assurance appreciated by 5.88 per cent to close at 36k per share.
Honeywell Flour Mills rose by 5.26 per cent to close at N1, while Eterna appreciated by 1.85 per cent to close at N2.75 per share.
The total volume traded declined by 24.4 per cent to 128.96 million shares, worth N1.18 billion exchanged in 3,118 deals.
Also read: NSE: Market capitalisation slides by 0.51%, Investors forfeit N69bn
This was in contrast with 170.72 million shares valued at N2.26 billion exchanged in 3,614 deals.
Transactions in the shares of FBN Holdings topped the activity chart with 30.90 million shares valued at N162.05 million.
Transcorp followed with a turnover of 16.03 million shares worth N14.60 million, while FCMB Group traded 11.04 million shares valued at N18.67 million.
Access Bank traded 9.01 million shares worth N56.40 million, while Zenith Bank transacted 8.34 million shares valued at N148.64 million.
In the meantime, the escalation of the trade war between China and the U.S. has badly affected the yuan exchange rate, a spoke-woman for China’s State Administration of Foreign Exchange, Wang Chunying said on Wednesday.
Wang said in an interview with CCTV, China’s predominant state television broadcaster, that the escalation of trade tensions by the U.S. has recently hit the yuan exchange rate, and that the market had fully responded.
The U.S. Treasury Department on Monday said it had officially designated China as a currency manipulator and would work with the International Monetary Fund to address the issue.
China’s central bank, in response, warned that Washington’s move undermined international principles and would result in extremely negative consequences for the global economy.
Wang, however, added that the Yuan exchange rate was stable as at the time of the interview.
The U.S. currency accusation comes amid a protracted trade dispute between the two countries that began in June 2018, when U.S. President Donald Trump announced that he would impose tariffs on $50 billion worth of Chinese imports in a bid to balance the trade deficit.
Since then, the two countries have introduced several rounds of tit-for-tat tariffs.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has attended the signing ceremony for MSM Cement Ltd’s Kebbi Cement Plant, a $3 million-tonne-per-annum facility set to drive Nigeria’s industrial growth.
The project, expected to create 20,000 direct and 25,000 indirect jobs, is strategically positioned near the country’s border, enhancing export potential under the African Continental Free Trade Agreement (AfCFTA).
According to a statement over the weekend, signed by Mohammed Manga FCIA Director, Information and Public Relations of the ministry, Edun highlighted the plant as a model of private-sector-driven investment that aligns with President Bola Ahmed Tinubu’s vision for economic stability, job creation, and poverty reduction.
The Executive Governor of Kebbi State, Dr. Nasir Idris called the project a historic milestone, emphasising its transformative impact on employment, particularly for youth and women. He also praised the federal government’s commitment to infrastructure development in the state.
Also present at the event were the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, and the Minister of State for Finance, Dr. Doris Uzoka-Anite, alongside other dignitaries.
The signing marks a crucial step toward industrial expansion, with groundbreaking and construction set to follow. This project will not only boost economic growth but also create lasting opportunities for the people of Kebbi State and Nigeria as a whole, reinforcing the country’s push for economic growth and regional trade.
The Managing Director of Nigerian Railway Corporation, NRC, Dr. Kayode Opeifa on Saturday, hailed the women, stressing that logistics may not be sustainable without their dedicated commitment and resilience.
Opeifa made the observation, as the NRC distributed gifts to women on the occasion of the International Women’s Day IWD.
“We are giving you this, as our token from the Nigerian Railway Corporation”, Dr. Opeifa said, hinting that not only would the NRC continue to improve service delivery, but that his management would not leave a stone unturned, in a bid to appreciate their soaring patronage.
*The Nigerian Railway Corporation NRC distributing gifts on the occasion of the International Women’s Day
One of the recipients, while commending the gesture, specifically noted that the new management has not only improved service delivery, but has also proved that those enjoying the services can be recognised and appreciated.
The Lagos Ministry of Transportation has suspended its enforcement of the e-call-up system, and in line with the demand of the NUPENG, IPMAN, NARTO, PTD and other Union leaders, to enable the Union leaders further engagement with their members.
The meeting was held at the Conference Room of the Transportation Ministry.
The union leaders on the other hand, promised to ensure parking compliance by their members, while the engagement meetings are ongoing. The Ministry will however enforce compliance, in the event of violation of the promise.
This was the fulcrum of their meeting, even as all parties agreed on the importance of the e-call up system as the best solution, for managing trucks’ movement along the Lekki-Epe corridor.
Meeting was attended by the Commissioner for Transportation, Mr. Oluwaseun Osiyemi, the Permanent Secretary, Mr. Olawale Musa and Leaders of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Independent Petroleum Marketers Association of Nigeria (IPMAN), Nigerian Association of Road Transport Owners (NARTO), and Petroleum Tanker Drivers (PTD), a branch of NUPENG.
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