By Chinenye Anuforo
Stocks value declined further by N66 billion or 0.72 percent yesterday, as the Nigerian Stock Exchange recorded its 6th consecutive decline, amounting to a combined loss of N350 billion on a day Americans elected Donald J. Trump as president-elect.
Market capitalisation dipped to N9.01 trillion following a loss of N65.6 billion as the All Share Index shed 190.58 points to close at 26,173.69 points.
The day’s downturn was heightened by value depreciation recorded in blue chip stocks, like Guaranty Trust Bank and Nigerian Breweries Plc.
Again, 11 stocks gained against 27 that depreciated. PZ Cussons Plc led the losers’ chart by 8.39 percent, to close at N16.49 per share. Flourmills Nigeria Plc shed 5.00 percent to close at N18.05 per share, while Nascon Allied Industries Plc and Continental Re-insurance Plc declined by 4.90 percent each to close at N7.37 and 97 kobo per share respectively.
On the other hand, CAP Plc recorded the highest gain of 4.06 percent each to close at N35.40, Dangote Sugar Plc trailed with a 2.94 percent growth to close at N6.30 per share and UPL Plc improved by 2.63 percent to close at N3.90 per share.
Livestock Feeds Plc, followed with a gain of 2.50 percent to close at 82 kobo per share, while Red Star Express Plc rose by 2.38 percent to close at N4.30 per share.
Market performance as measured by volume traded, declined by 23 percent to 146.1 million units valued at N1.04 billion transacted in 3,039 deals in contrast to 189.01 million units valued at N1.6 billion and transacted in 3,434 deals on Tuesday.
Transactions in the shares of Chams Plc again, topped the activity chart with 40.1 million shares valued at N20.1 million. Guaranty Trust Bank Plc followed with 18.3 million shares worth N378.7 million, while UBA Plc traded 14.1 million shares valued at N59.6 million.
FBN Holdings Plc with the trade of 13.9 million shares worth N42.3 million bagged the fourth position on the activity chart, while Access Bank Plc came fifth having sold 7.5 million shares valued N39.1 million.
Trump Presidency: Nigeria to witness lower oil exports to US
…As oil price drops to $44.45
By Adewale Sanyaolu
The election of Donald Trump as the next United States of America (USA) President, may spell further doom for Nigeria’s crude oil, Partner, Bloomfield Law Practice, Mr. Ayodele Oni, has said.
Reacting to Trump’s emergence as US President elect, Oni, explained that the urge for him to increase job opportunities in-country, could trigger increased exploration activities for shale oil production, which would ultimately lead to reduction of US purchase of oil from other producers including Nigeria
‘‘We hope that during the upcoming OPEC meeting, resolutions would be made to solidify relationships with Trump and America.
Taking a more global look at the impact of Trump’s victory during his campaigns, Oni said America’s new helmsman had spoken passionately about creating jobs for Americans. Logically, it would be expected that he would want to look at the oil and gas industry.
I anticipate that Trump would want to focus more efforts on the energy industry as he seems nationalistic and would want to reduce America’s dependence on oil imports. That is, if his statements are anything to go by,’’ he said.
On oil price, Oni said following the somewhat curve ball election victory by Donald Trump, oil prices as at 8am Nigeria time yesterday, dropped from $46 to $44.45. He argued that the relative weakness in the dollar should make oil cheaper thereby allowing buyers capitalise on this opportunity for massive oil orders.
However, he said Trump represents an uncertainty that may affect the global direction of the oil market, most notably the above referenced knee-jerk reaction, adding that oil price has stabilised to a certain level as a result of the weaker dollar and increase of purchase of oil.
On his own part, President of Nigerian Liquefied Petroleum Gas Association (NLPGA), Mr. Dayo Adeshina, said until Trump comes out with his energy policies, it may be rather too early to comment on how his election would impact Nigeria, oil and gas industry.
He explained that every country has its own clear cut policies, especially as it relates to energy, adding that, his government would tailor such in assessment of the situation on ground before taking a stand point.
Trump as a businessman I believe would churn out policies that would aid job creation in order to boost the economy, he said.