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Economy

NSE market capitalisation increases by N25bn

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Investors in Equities market forfeit N21bn as GlaxoSmithKline leads losers' chart

…As MPC retains Monetary Policy Rate at 13.5%***

The Nigerian Stock Exchange (NSE) positively closed trading on Friday with the market capitalisation improving by N25 billion.

The market capitalisation closed higher at N13.483 trillion compared with N13.458 trillion, an increase of 0.19 per cent.

Also, the NSE All-Share Index rose by 52.54 points or 0.19 to close at 27,698.69 from 27,646.15 achieved on Thursday.

Nestle led the gainers’ table, gaining N10 to close at N1,210.10 per share.

Stanbic IBTC followed with a gain of N2.90 to close at N42.85, while Nigerian Breweries gained 55k to close at N52.55 per share.

Dangote Sugar added 50k to close at N11.05, while Flour Mills advanced by 30k to close at N14 per share.

Conversely, Cadbury topped the losers’ chart, declining by 70k to close at N10.95 per share.

Zenith Bank trailed with a loss of 30k to close at N18.70, while Eterna dipped 25k to close at N2.75 per share.

Also read:  Renewed profit taking: Investors forfeit N17bn as NSE market indices down by 0.13%

Guaranty Trust Bank was down by 25k to close at N29, while Lafarge Africa also depreciated by 25k to close at N15.1 per share.

The volume of shares traded closed lower with an exchange of 177.57 million worth N5.92 billion achieved in 3,484 deals.

This was against a total of 245.44 million shares valued at N1.67 billion traded in 3,450 deals on Thursday.

Nigeria Breweries was the most active stock, exchanging 28.14 million shares worth N1.48 billion.

Guaranty Trust Bank followed with an account of 17.66 million shares worth N512.29 million, while FBN Holdings sold 15.96 million shares valued at N89.51 million.

United Bank for Africa sold 15.22 million shares worth N93.60 million, while Zenith Bank traded 14.55 million shares valued at N275.97 million.

In the meantime, the Monetary Policy Committee (MPC) has retained the Monetary Policy Rate (MPR) at 13.5 per cent.

Mr Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), made the fact known after the MPC meeting in Abuja on Friday.

Emefiele disclosed that nine out of 11 members of the committee attended the meeting.

He said the committee also retained Cash Reserve Ratio (CRR) at 22.5 per cent and the Liquidity Ratio at 30 per cent.

He explained that the development was a decision of the nine members of the committee who were in attendance at the meeting and voted unanimously for retention for the progress and development of the economy.

Emefiele said in considering specific policy options of whether to loosen, tighten or hold, the committee ensured that it focused and considered that the growth of the economy was imperative and the management of price stability was sacrosanct.

He disclosed that in consideration regarding the policy action to adopt, the MPC felt compelled to review as usual whether to tighten, hold or loosen.

According to him, tightening policy is not an option at this time, while loosening will drive growth in consumer credit without corresponding adjustment.

Emefiele said the option to hold required understanding of quantum and timing of liquidity injection into the economy before deciding on possible adjustment.

He said the committee also noted a positive moderation in inflation although slowly from 11.08 in July to 11.02 in August.

Meanwhile, the governor stated that the committee advised the government to adopt ‘big bank approach towards building fiscal buffer by purposefully freeing up redundant assets through efficient and effective privatisation process.

He said the step would raise fiscal revenue for the government and resuscitate redundant assets and also generate employment as well contribute to the growth of the economy.

 

 

Economy

FG Threatens To Open Borders for Cement Importation Over Price Hike

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Palpable fear has gripped cement manufacturers following the Federal Government’s threat to throw open the nation’s borders for cement importation if the product manufacturers fail to bring down the cost.

The Minister of Housing and Urban Development, Mr Ahmed Dangiwa issued the threat on Tuesday in Abuja at a meeting with Cement and Building Materials Manufacturers.

The meeting was summoned to address the astronomical increase in the cost of cement nationwide.

The minister expressed concerns that in the past couple of months, the country had witnessed a recurring alarming increase in the prices of cement and other building materials.

“Clearly, this is a crisis for housing delivery. An increase in essential building materials means an increase in the prices of houses.

“We are not the only country facing this challenges, many countries are facing the same type of challenges that we’re facing, some even worse than that.

“But, as patriotic citizens, we have to rally round the country when there is crisis, to ensure that we do our best to save the situation,” he said.

The minister added: “Honestly speaking, we have to sit down and look at this critically and know how you should go back and think of it.

“The government stopped importation of cement in other to empower you to produce more and sell cheaper

Bags of cement

“Otherwise the government can open the borders for mass importation of cement, the price will crash, but you will have no business to do”.

Dangiwa said the reasons given by cement manufacturers for the price increase – high cost of gas and manufacturing equipment – were not enough for such astronomical pricing.

He expressed his displeasure at the position of  Cement Manufacturer Association of Nigeria (CEMAN) that the association “does not interfer with the pricing of cement”.

He said the association should not just fold  its arms when things were going wrong.

“One person cannot be selling at N3500 per bag and another selling at N7000 per bag and you cannot call them to order.

“The association is expected to monitor price control, otherwise the association has no need to exist,” he said.

Earlier, Mr Salako James, Executive Secretary, CEMAN, said the housing policy of the administration of President Bola  Tinubu was laudable and every responsible Nigerian has to key into it.

He, however, identified some areas of concern and appealed to the government to look into them to tackle the issue of cement pricing.

Salako identified the challenges of gas supply to heavy users like the cement industry and urged the government to create a window whereby gas will be bought with Naira instead of dollar.

He also complained about the distribution channel, stressing tha there was a great difference between the price from the manufacturers and the market price.

He, therefore called for government intervention to help stabilise the situation and bring sanity to the economy.

At the end of the meeting, the minister directed that a committee should be constituted to review the situation and come out with implementable resolutions that would benefit the common Nigerian.

The three major cement producers, Dangote Plc, BUA Plc, and Lafarge Plc were represented as well as other industry stakeholders.

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Economy

Cement Price Can Be Lower Than FG, Manufacturers’ Projection — Association 

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…Warns that high price could lead to corner-cutting and building collapse

The National Association of Block Moulders of Nigeria (NABMON) says the agreement between the Federal Government and three major cement manufacturers that a 50kg bag of cement, for now, is not supposed to sell for more than N7,000 to N8,000 is faulty.

The National President, Mr Adesegun Banjoko, said this on Tuesday in Lagos.

Recall that the parties, at a meeting on Monday, said that the ideal price of  a 50kg bag of cement for now should be between ₦7,000.00 and ₦8,000.00 depending on location.

They agreed that the current higher prices of cement in parts of the country were abnormal.

The main manufacturers of cement in the country are Dangote Plc, BUA Plc and Lafarge Plc.

According to Banjoko, there is no reason for the price of cement to be sold even at the projected prices, since limestone, which is a key ingredient, is readily available in Nigeria.

He expressed fears that the high price would lead to corner-cutting and building collapse.

The NABMON president expressed the belief that the government and manufacturers could do better and offer lower prices.

Bags of cements

He suggested a reduction or elimination of customs duties on other imported materials used in cement production, adding that this would incentivise manufacturers to lower their prices.

He, therefore, proposed a target price of ₦3,500 to ₦5,000 per bag.

Banjoko said, “There are three issues that make me disagree with the government and the main manufacturers.

“First, limestone is sourced in Nigeria; agreed they have some few other materials they bring in from abroad.

“But if the government is really concerned about life and property lost to building collapse, they should either remove custom duties on such items or reduce them by half to encourage the manufacturers to come down to between N3, 500 and N5, 000.”

He also advised the government to temporarily halt road construction projects that use cement.

Banjoko said that this would free up available cement for vital projects and potentially reduce demand, leading to lower prices.

The NABMON president warned that the high price of cement had added to the existing tensions in the country.

He urged the government to act cautiously with essential commodities like cement, emphasising its impact on public well-being.

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Economy

NGX: Bullish Sentiment Persists, Investors Gain N329bn

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Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

…Unilever Nigeria Plc, Julius Berger lead Losers’ table 

Bullish sentiment persisted on Thursday at the Nigerian Exchange Ltd. (NGX) equity market, as the market indices rose by 0.58 percent.

Specifically, investors gained N329 billion or 0.58 percent, as the market capitalisation closed at N56.961 trillion, as against N56.632 trillion recorded on Wednesday.

The All-Share Index also appreciated by 0.58 percent or 601.72 points to settle at 104,100, compared to 103,498.28 posted in the previous session.

As a result, the Year-To-Date (YTD) return rose to 39.22 percent.

Continuous buy interests in the shares of BUA Cement, BUAFoods, and Geregu kept the market in the positive terrain.

A total of 284.49 million shares valued at N6.91 billion were exchanged in 8,168 deals, as against 426.86 million shares valued at N12.11 billion exchanged in 8,654 deals.

However, analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 42.89 percent.

Guaranty Trust Holding Company(GTCO) led the activity table in volume and value with the trade of 56.61 million shares worth N2.22 billion.

Transcorp followed with 33.17 million shares valued at N418.31 million, while United Bank of Africa(UBA) traded 18.38 million shares worth N442.96 million.

Also, Mutual Benefits Assurance sold 16.76 shares valued at N11.48 million and AXA Mansard traded 12.51 million shares worth N75.57 million.

On the gainers’ table, University Press Ltd.(UPL) led in percentage terms of 9.96 percent to close at N2.87, followed by Juli Plc by 9.84 percent to close at N1.34 per share.

Mutual Benefits gained 9.38 percent to close at 70k, Daar Communications rose by 8.82 percent to close at 74k, while Honeywell Flour garnered 7.50 percent to close at N4.30 per share.

Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

Conversely, Unilever Nigeria Plc led the losers’ table by 9.80 percent to close at N16.10, Julius Berger lost 9.64 percent to close at N50.60, while Morison Industries Plc shed 9.60 percent to close at N2.23 per share.

May & Baker Nigeria Plc depreciated by 6.52 percent to close at N6.45 and National Salt Company of Nigeria (NASCON) dropped 5.37 percent to close at N59.04 per share.

Market breadth closed negative with 26 declining stocks outnumbering 23 advancing ones.

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