Items filtered by date: Thursday, 10 October 2019

Investors, on Wednesday, lost N102.7 billion in the trading session on the Nigerian Stock Exchange (NSE).

Market capitalisation dropped to N12.9 trillion from N13 trillion the previous day.

The All Share Index closed at 26,598.94, shedding 0.79%. Year to date, the market is down by 15.37%.

Top 5 trades

591 million shares valued at N7 trillion were traded in 2,907 deals. the top 5 trades by volume include Custodian Investment Plc 348 million shares valued at N2.5 billion traded in 6 deals. A new investor may be taking position in the insurance company.

Access Bank traded 52.5 million shares valued at N383 million in 193 deals. 28 million Lafarge Africa shares valued at N450 million were traded in 76 deals. GTBank traded 21.8 million shares valued at N583 million in 294 deals. Guinness Nigeria rounds it up with 20 million shares valued at N607 million traded in 76 deals.

Top 5 gainers

On the top gainers for today Learn Africa resurrected to the top of the gainers’ chart with a 9.80% gain to close at N1.12. Chams Plc gained 8.33% and closed at N0.26 to earn the second top gainer. Chams closed on the losers’ side during yesterday’s trade.

Cornerstone Insurance gained 8.33% to close at N0.39. Jaizbank gained 4.26% to close at N0.49. the stock was among the top performing stocks of last week, closing by 4.55%.

Access Bank, which was one of the top traded stock for today closed at N7.35, gaining 2.80%.

Top 5 losers

Nestle captained the losers’ ship with a 15% loss to close at N1,209.30. PZ Cussons Plc lost 10% to close at N6.30. NCR Nigeria Plc lost 9.09% to close at N4.50.

Guinness Nigeria closed at N30, losing 7.69%. United Capital Group Plc (Ucap) rounds up top losers’ chart with a 6.98% loss to close at N2.

Published in Business

Nigeria Government is planning to enforce a 2018 Supreme Court ruling that will it recover the sum of N18.9 trillion ($62 billion) from International Oil Companies (IOC) as its share of income from production sharing contracts.

According to a document prepared by the attorney general’s office, IOCs failed to honour a 1993 contract-law requiring the government to receive a greater share of revenue when oil price exceeds $20 per barrel.

Under the law, IOCs including Royal Dutch Shell Plc, ExxonMobil Corp., Chevron Corp., Total SA and Eni SpA agreed to fund exploration and production of deep-offshore oil fields and government gets its share of income from the profit after these oil companies cover their cost.

As at the time the law came into effect, crude oil sold for $9.50 per barrel. The oil companies currently take 80% of the profit from these deep-offshore fields, while the government receives 20%.

The contract-law required that its provisions be reviewed after 15 years and subsequently every five years. The attorney-general’s office insists that the provision for a higher share of revenue doesn’t require legislative action to take effect.

The government had secured a supreme court ruling but the IOCs have gone to the Federal High Court to challenge the ruling of the apex court, arguing that the Supreme Court ruling doesn’t allow the government to collect arrears.

Published in Business
U.S and China, the world’s two largest oil users, are creating anxieties about the global economy.
 
China, the world’s biggest oil importer, has lowered their expectations for talks on Thursday and Friday to end the 15-month-old trade dispute with the United States.
 
U.S. President Donald Trump is set to raise the tariff rate on about 250 billion dollars of Chinese goods to 30 per cent from 25 per on Oct. 15 if some signs of progress are not seen.
 
The trade dispute between the world’s two largest economies has disrupted global supply chains and slowed the growth of both countries, limiting the growth of their fuel consumption.
 
Global benchmark Brent crude futures LCOc1 fell 11 cents, or 0.2 per cent, to 58.21 dollars a barrel by 0354 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 were down 11 cents, or 0.2 per cent, at 52.48 dollars per barrel.
 
“Should U.S.-China trade negotiations take a turn for the worst, market pessimism will impose sharp negative pressures on oil prices, said Benjamin Lu, commodities analyst at Phillip Futures in Singapore.
 
Prices were also weighed down by a report of rising stockpiles in the United States, which is also currently the world’s biggest oil producer.
 
U.S. crude stocks rose 2.9 million barrels in the week to Oct. 4, the Energy Information Administration (EIA) said on Wednesday, more than double analysts’ expectations of an increase of 1.4 million barrels.
 
Additionally, the Organisation of the Petroleum Exporting Countries (OPEC) quietly adjusted its production pact to allow Nigeria to raise its output, adding more supply.
 
OPEC granted Nigeria raised the quota to 1.774 million barrels per day (bpd) from 1.685 million bpd, three OPEC delegates with knowledge of the matter said.
 
OPEC member Venezuela will also increase its exports despite U.S. economic sanctions that have curtailed shipments from the country.
 
Indian refiner Reliance Industries Ltd plans to start loading Venezuelan crude after a four month pause, in a further sign of expanding crude supply to the market.
Published in Business

Telecoms giant, Airtel Africa, on Wednesday, announced it had entered a partnership with multinational financial service company, MasterCard to give Airtel’s 100 million subscribers across 14 African countries access to MasterCard’s global network.

This will enable Airtel Money customers get MasterCard virtual card, even those without a bank account, to make payment to local and global merchants that accept it. In addition, customers will be able to pay for goods and services via Quick Respond (QR) codes at outlets.

Airtel Africa’s CEO, Raghunath Mandava said “Airtel and MasterCard has a shared passion for digital transformation and making mobile financial services accessible to everyone across the continent. Through our partnership, we will enable over 100 million Airtel Africa customers to make safe mobile money purchases online and in person.

The partnership will also significantly bolster Airtel’s position as one of the largest offline-to-online digital payment networks in Africa. We are really excited to embark on this partnership with a globally trusted brand like MasterCard. This partnership is truly revolutionary in our market, giving millions of people better access to the digital and online world”.

This might potentially give Airtel Money an edge over MTN Nigeria’s mobile money platform, Momo. MTN launched Momo almost 2 months ago giving the telecom giant an edge over traditional banks in Nigeria, but with this Airtel and MasterCard partnership Airtel Money has gone global, giving the platform a farther reach than Momo.

Published in Telecoms
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