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The NASD Over-the-Counter (OTC) Securities Exchange depreciated by 0.02 per cent on Wednesday, January 8 following mild profit-taking by market participants, who showed a sign of panic trading.

This resulted in a marginal decline in the market capitalisation by N560 million to N1.056 trillion, the same value of the preceding trading session, as the NASD Unlisted Security Index (NSI) slid by 0.18 points to wrap the session at 3,081.91 points compared with 3,082.47 points recorded at the previous session.

Business Post reports that Geo-Fluids Plc suffered a decline of 4 Kobo at midweek to sell at N4.85 per share versus the previous session’s N4.89 per share, and Afriland Properties Plc lost 12 Kobo to close at N16.00 per unit, in contrast to Tuesday’s closing price of N16.12 per unit.

However, the price of First Trust Microfinance Bank Plc increased by 3 Kobo yesterday to settle at 37 Kobo per share compared with the previous day’s value of 34 Kobo per share.

There was a 5,943.8 per cent surge in the volume of securities traded in the session as investors exchanged 3.6 million units compared to 59,432 units traded in the preceding session and the value of shares traded yesterday increased by 1,641.7 per cent to N36.6 million from the N2.1 million achieved a day earlier, while the number of deals carried out went up by 133.3 per cent to 14 deals from six deals.

At the close of transactions, FrieslandCampina Wamco Nigeria Plc was the most active stock by value (year-to-date) with 1.9 million units valued at N74.2 million, followed by 11 Plc with 12,963 units worth N3.2 million, and Industrial and General Insurance  (IGI )Plc with 10.7 million units sold for N2.1 million.

But the most active stock by volume (year-to-date) was IGI Plc with 10.6 million units worth N2.1 million, trailed by FrieslandCampina Wamco Nigeria Plc with 1.9 million units sold for N74.2 million, and Acorn Petroleum Plc followed with 1.2 million units valued at N1.9 million.

-By Adedapo Adesanya

The exchange rate of the Naira against the United States Dollar moved in different directions in the various segments of the foreign exchange (FX) market on Wednesday, January 8.

In the parallel market, the Nigerian currency appreciated against its American counterpart by N5 during the session to settle at N1,650/$1, in contrast to Tuesday’s closing value of N1,650/$1 after trading flat for over two sessions.

However, the local currency was not too lucky in the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment as its value depreciated against the greenback at midweek by N4.67 or 0.3 per cent to quote at N1,541.70/$1 versus the preceding day’s N1,537.03/$1.

Business Post observed that it was the third straight session the domestic currency was losing value in the currency market this week.

Available data showed that the aggregate FX inflows into Nigeria increased by 41 per cent in the first 10 months of 2024 to $79.8 billion from $55.6 billion in the same period of 2023, as per the Central Bank of Nigeria (CBN) through its Economic Report for October 2024.

The apex bank disclosed that in the period under consideration, the nation recorded a 1.4 per cent decline in aggregated FX outflows to $29.84 billion from the $30.29 billion posted in the first 10 months of 2023.

In the same official market, the Naira, however, appreciated against the Pound Sterling yesterday by N24.53 to sell for N1,899.62/£1 compared with the preceding session’s N1,924.15/£1 and against the Euro, it gained N10.11 to trade at N1,584.96/€1 versus Tuesday’s price of N1,595.07/€1.

As for the cryptocurrency market, it was bearish as macro jitters and the global bond rout accelerated the sell-off in crypto prices.

Strong US economic data, surging bond yields, and concerns about inflation and a hawkish Federal Reserve drove the risk-off sentiment, worsened by uncertainty around President-elect Donald Trump’s tariff policies.

Cardano (ADA) fell by 5.9 per cent to $0.9341, Dogecoin (DOGE) depreciated by 3.0 per cent to $0.3389, Bitcoin (BTC) slumped by 2.0 per cent to $94,540.80, Solana (SOL) depreciated by 1.2 per cent to $194.16, Litecoin (LTC) dropped 1.1 per cent to $101.99, and Ethereum (ETH) waned by 0.6 per cent to $3,329.38.

On the flip side, Ripple (XRP) added 1.7 per cent to close at $2.35, and Binance Coin (BNB) rose by 0.9 per cent to $698.63, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.

-By Adedapo Adesanya

Investors on the Nigerian Exchange gained N507bn at the close of trading on Wednesday, as the market capitalisation surged to N63.56tn from N63.05tn in the previous session.

The All-Share Index climbed by 831.91 points, representing a 0.8 per cent increase, to settle at 104,230.73. This reflects a 1.27 per cent week-on-week gain, 6.13 per cent over the last four weeks, and a year-to-date increase of 1.27 per cent.

MTN Nigeria and Transcorp Nigeria emerged as the day’s top gainers, appreciating by 10 per cent to close at N220.00 per share and N49.50 per share, respectively. Honeywell Flour Mill gained 9.95 per cent to settle at N8.29, while AIICO Insurance advanced by 9.94 per cent to close at N1.88 per share.

On the losing side, Sunu Assurances led the chart, dropping by 9.99 per cent to close at N9.01 per share. Universal Insurance followed, losing 8.97 per cent to end at N0.71. Secure Electronic Technology fell by 8.11 per cent to close at N0.68, while Consolidated Hallmark Holdings declined by 5.82 per cent to finish at N3.40.

The trading session saw 639.48 million shares valued at N20.44bn exchanged in 13,550 deals. This represented a 43 per cent decline in volume, a 40 per cent increase in turnover, and an 18 per cent decrease in deals compared to the previous day.

Tantalizers recorded the highest trading volume with 82.4 million shares traded, followed by Universal Insurance (56.6 million shares), AIICO Insurance (54.3 million shares), and Chams (33.1 million shares).

Leading the value chart, Geregu Power recorded trades worth N11.39bn, followed by Total Nigeria (N1.78bn), Aradel Holdings (N744.69m), Access Holdings (N617.27m), and Zenith Bank (N500.37m).

Life and general insurance, Lasaco Assurance Plc, has announced the allotment of 9,250,000,000 ordinary shares of 50k each at N1.20 per share from a private placement.

This was disclosed in an advertorial published in The PUNCH on Wednesday.

The private placement opened on Monday, 23 September, 2024, as approved by the Securities and Exchange Commission, and closed on Friday, 4th October, 2024, after 10 working days.

At the close of the private placement, a total of 11 applications for 9,250,000,000 ordinary shares of 50k each at N1.20 each, valued at N11.10bn, were received.

It was reported that all applications received were in compliance with the terms and conditions of the placement and were accepted; thus, the offer was 100 per cent subscribed.

A breakdown of the Basis of Allotment showed that “two applications were received for 13,000,000 ordinary shares of 50k each at 1.20 per share, valued at N15,600,000. The units were allotted in full.

“Two applications were received for 85,000,000 ordinary shares of 50k each at N1.20 per share, valued at N102,000,000. The units were allotted in full. Two applications were received for 155,583,000 ordinary shares of 50k each at N1.20 per share, valued at N186,699,600. One application was received for 267,002,000 ordinary shares of 50k each at N1.20 per share, valued at N320,402,400. Applications were received for 1,646,083,000 ordinary shares of 50k each, valued at N1.20 per share, for a total of N1,975,299,600. One application was received for 2,500,000,000 ordinary shares of 50k each at N1.20 per share, valued at N3bn, and one application was received for 4,583,332,000 ordinary shares of 50k each at N1.20 per share, valued at N5.49bn.”

The Securities and Exchange Commission has announced plans to enhance the regulatory framework for borrowing by governments and corporates, emphasising sustainability and efficiency in the financial system.

According to a statement on Wednesday, the Director-General of the Commission, Dr Emomotimi Agama, made this known during a recent interview, highlighting the importance of borrowing in driving development across various sectors of the economy.

He noted that the SEC is particularly focused on ensuring sustainability in government borrowing, including at municipal and state levels, in light of the Supreme Court’s directive mandating direct subventions to the 774 local government areas from the Federal Government.

The SEC DG said, “Improving the framework for borrowing is very important because borrowing is part of the financial system and we can only make much of the move we want to make if there is enough funding.

“Hence, we want to be sure of sustainability in both government borrowing, municipal and state governments particularly with the new Supreme Court order regarding the 774 local government areas receiving direct subvention from the Federal Government.

“It therefore becomes important that we have in the management of such resources via strategic and focused borrowing to help the developments in those sectors.”

On the corporate side, Agama highlighted the introduction of new rules for Central Counter Parties as a pivotal step in transforming Nigeria’s borrowing landscape.

According to him, the new rules, set to take effect in 2025, aim to simplify and streamline borrowing for Nigerian companies while fostering growth in the capital market.

“As a Commission we have established those new rules and they are going to be functional in 2025. We want to make borrowing a seamless and effortless process for Nigerian companies.

“It is very important that as we drive the growth of the Nigerian capital market, we also drive new products and new opportunities for every Nigerian.

“Nigeria for a long time has been seen as a mono product market, but the Year 2025 will be different because we will continue to drive the process of introducing derivatives into the capital market.,” he noted in the statement.

Agama emphasised the importance of legal and regulatory measures in building confidence in derivatives trading and creating a predictable environment for transactions.

He explained that the SEC’s framework would ensure these transactions are exempt from general insolvency laws, providing a safer platform for market participants.

The SEC’s initiatives are expected to strengthen Nigeria’s financial system, enhance market confidence, and support broader economic development.

-By Sami Tunji