All the latest news from Investing Port https://www.investingport.com NGX Trading Summary for Friday, January 3, 2025At the close of trading on the Nigerian Stock Exchange (NGX), the following key metrics were recorded:• Volume of Trades: 709,279,301 shares• Number of Deals: 13,593• Market Value: NGN 8,243,483,368.39• Market Capitalization: NGN 63.2 trillionComparative PerformanceCompared to the previous trading day (Thursday, January 2, 2025):• Volume: Declined by 15%• Turnover (Market Value): Improved by 45%• Deals: Increased by 16%Market ParticipationA total of 129 listed equities participated in trading.• Gainers: 68 stocks• Losers: 11 stocksTop Gainers1. NCR Nigeria: +10%, closing at NGN 6.05 per share2. Learn Africa: +10%3. Abbey Mortgage Bank: +10%4. The Initiates: +10%Top Losers1. Total Nigeria: -9.74%, closing at NGN 630.00 per share2. Computer Warehouse Group: -6.04%3. Thomas Wyatt Nigeria: -5.26%4. Associated Bus Company: -4.07%Most Actively Traded Stocks (by Volume)1. Chams Plc: 58.1 million shares2. Veritas Kapital Assurance: 55.1 million shares3. Abbey Mortgage Bank: 50.1 million shares4. Aiico Insurance: 39.7 million sharesThis detailed breakdown highlights key metrics, comparative analysis, and specific stock performances for better readability and understanding. Fri, 03 Jan 2025 11:09:07 EST https://www.investingport.com/ngx-trading-summary-for-friday-january-3-2025/ https://www.investingport.com/ngx-trading-summary-for-friday-january-3-2025/ NGX Launches Equity-Based Commodity Index and Announces Index Updates The Nigerian Exchange Limited (NGX) has unveiled a new market index, the Equity-Based Commodity Index, designed to track the performance of companies primarily operating in the energy, agriculture, mining, metals, and natural resources sectors.Key Details:Index Constituents:The starting companies in the index include:• Geregu Power Plc• Multiverse Mining and Exploration Plc• Okomu Oil Palm Plc• Presco Plc• Seplat Energy Plc• Transcorp Power Plc• Aradel Holdings PlcInitial Value: The new index is set at 1,000 points.Purpose: This index aims to deepen the Nigerian market, enhance liquidity, and offer investors a better way to track the commodity-focused sector.Updates to Existing NGX Indices 1. NGX 30 Index:• Additions: Conoil Plc, International Breweries Plc, Oando Plc, and Transcorp Power Plc.• Exits: Guinness Nigeria Plc, Sterling Holding Company Plc, Total Nigeria Plc, and Flour Mills Nigeria Plc.2. NGX Consumer Goods Index:• Addition: Golden Guinea Breweries Plc.• Exit: Flour Mills Nigeria Plc.3. NGX Banking Index:• Addition: Wema Bank Plc.• Exit: Sterling Holding Company Plc.4. NGX Insurance Index:• Additions: Guinea Insurance Plc, International Energy Insurance Plc.• Exits: LASACO Assurance Plc, Mutual Benefits Assurance Plc.5. NGX Oil & Gas Index:• Additions: Aradel Holdings Plc, MRS Plc, and Oando Plc.• Exit: Japaul Oil and Services.6. NGX Pension Index:• Additions: Aradel Holdings Plc, Transcorp Power Plc.• Exits: Flour Mills Nigeria Plc, Cadbury Nigeria Plc.7. NGX Lotus Islamic Index:• Addition: Aradel Holdings Plc.• Exit: Dangote Sugar Refinery Plc.8. Afrinvest Div Yield Index:• Addition: Red Star Express Plc.• Exits: FCMB Group Plc, Dangote Cement Plc.9. Meristem Growth Index:• Addition: FCMB Group Plc.• Exits: Access Bank Plc, Zenith Bank Plc.10. Meristem Value Index:• Additions: Access Bank Plc, Dangote Sugar Refinery Plc, Zenith Bank Plc.• Exits: AIICO Insurance Plc, Nigerian Breweries Plc, FCMB Group Plc, Flour Mills Nigeria Plc.NGX Leadership’s Vision Jude Chiemeka, CEO of NGX, emphasized the commitment to transforming the Nigerian capital market by introducing innovative products to enhance investor experience and connect the country to the global economy.Meanwhile, Abimbola Babalola, Head of Trading & Products, noted that these indices are rebalanced semi-annually, helping investors optimize their strategies.This initiative solidifies NGX’s position as a leading securities exchange focused on growth and innovation Fri, 03 Jan 2025 11:02:32 EST https://www.investingport.com/ngx-launches-equity-based-commodity-index-and-announces-index-updates/ https://www.investingport.com/ngx-launches-equity-based-commodity-index-and-announces-index-updates/ 2024 Market Laggards: Five Listed Firms Suffer Over 30% Share Price DeclineWhile the Nigerian Exchange Limited (NGX) celebrated a strong year of growth in 2024, with the All-Share Index (ASI) soaring by 37% and market capitalization gaining ₦22 trillion, five listed companies endured sharp declines, with their share prices dropping by over 30%.The Worst Performers 1. Multiverse Mining and Exploration• Opening Price: ₦18.57• Closing Price: ₦8.08• Loss: 60.4%2. NASCON (National Salt Company of Nigeria)• Opening Price: ₦53.75• Closing Price: ₦30.00• Loss: 41.7%3. Dangote Sugar Refinery• Opening Price: ₦57.00• Closing Price: ₦32.50• Loss: 43.0%4. Daar Communications• Opening Price: ₦0.90• Closing Price: ₦0.63• Loss: 30.0%5. Thomas Wyatt• Opening Price: ₦2.70• Closing Price: ₦1.90• Loss: 30.0%Key Factors Behind the Declines • Economic Pressures: Rising inflation, high borrowing costs, and a weakening naira squeezed profitability for companies like Dangote Sugar.• Operational Challenges: NASCON struggled with increased energy costs, while Multiverse faced regulatory and production inconsistencies in the mining sector.• Sector-Specific Issues: DAAR Communications and Thomas Wyatt grappled with sluggish growth in their respective industries.Industry Insights and Way Forward Market operators highlighted the need for these companies to:• Innovate and adapt to market dynamics.• Embrace backward integration to reduce costs.• Develop resilient business models to regain investor confidence.According to Olugbosun Ariyo, a member of the Exceptional Shareholders Association of Nigeria, inflation, energy costs, and foreign exchange crises were primary contributors to the underperformance.ConclusionDespite the overall market optimism in 2024, the challenges faced by these firms serve as a reminder of the diverse pressures within the Nigerian economy. Analysts remain hopeful that strategic adjustments could pave the way for recovery in 2025. Fri, 03 Jan 2025 10:54:14 EST https://www.investingport.com/2024-market-laggards-five-listed-firms-suffer-over-30-share-price-decline/ https://www.investingport.com/2024-market-laggards-five-listed-firms-suffer-over-30-share-price-decline/ MTN Transfers Guinea Operations to Local Government Ownership MTN Group, Africa’s largest network operator by subscriber base, has successfully completed the sale of its operations in Guinea (MTN Guinea-Conakry) to the State of Guinea. The transaction, finalized on December 30, 2024, supports MTN’s portfolio optimization and simplification strategy, which aligns with its Ambition 2025 goals.Key Highlights:• Strategic Move: MTN Group President and CEO Ralph Mupita highlighted that the sale allows MTN to focus on markets where it can drive growth and long-term returns. He expressed gratitude to MTN Guinea-Conakry’s staff, customers, and stakeholders for their support during the operator’s time in the country.• Portfolio Adjustment: The deal reflects MTN’s intent to streamline operations and allocate resources to higher-priority markets.• Background: The decision to exit Guinea was disclosed in 2023, with MTN classifying its Guinea-Conakry and Guinea-Bissau businesses as held for sale.Why Exit Smaller Markets? During a media briefing in Johannesburg in August 2024, Mupita explained that certain markets were challenging under MTN’s risk management framework. “They are subscale and not able to fund their growth,” he said, emphasizing that local operators might better serve such markets.Future Prospects MTN’s exit paves the way for local stakeholders to drive growth and technological progress in Guinea. Similarly, MTN previously accepted an offer from Telecel, a telecom operator with a strong African presence, to acquire its equity interests in Guinea-Bissau and Guinea-Conakry.This move underscores MTN’s commitment to recalibrating its portfolio to enhance operational efficiency and focus on scalable opportunities. Fri, 03 Jan 2025 10:43:03 EST https://www.investingport.com/mtn-transfers-guinea-operations-to-local-government-ownership/ https://www.investingport.com/mtn-transfers-guinea-operations-to-local-government-ownership/ NAHCO Sets N300B Revenue Target with Extended Airline Contracts ✈️West Africa’s top ground handling service provider, NAHCO Aviance, has renewed its contracts with three major international airlines — Emirates, Turkish Airlines, and Virgin Atlantic. This milestone is expected to bolster the company’s ambitious plan to achieve N300 billion in revenue by 2029.✈️ Key Developments1. Contract Extensions:• Emirates has extended its full ground handling agreement with NAHCO for the next five years, following its return to Nigerian airspace in October 2024.• Virgin Atlantic continues its long-standing partnership with NAHCO, citing the company’s track record of excellent service delivery.• Turkish Airlines, a long-term client, reaffirmed its trust in NAHCO’s reliability by extending its contract.2. Revenue Projections:At its recent Facts Behind the Figures presentation at the Nigerian Exchange Limited (NGX), NAHCO unveiled its strategy to hit the N300 billion revenue target, a plan supported by these renewed partnerships.3. Leadership Statements:• Indranil Gupta, NAHCO’s Group Managing Director/CEO, described the contract renewals as a testament to the company’s 45-year legacy of excellence in ground handling services.• Gupta emphasized, “NAHCO will continue to invest in equipment and training to meet our obligations and revenue goals. We will lead the way, satisfy our clients, and delight our shareholders.”• Saheed Lasisi, Group Executive Director, Commercial & Business Development, highlighted the significance of the renewed trust from the airlines, pledging to exceed their expectations.Commitment to GrowthNAHCO remains steadfast in its commitment to maintaining its position as a regional leader. With a focus on innovation and exceptional service delivery, the company aims to strengthen its reputation and meet its ambitious goals while supporting the seamless operations of its partner airlines.Conclusion:This achievement underscores the trust and reliability NAHCO has earned from its global partners, paving the way for an exciting future for the company and its stakeholders. Fri, 03 Jan 2025 10:39:47 EST https://www.investingport.com/nahco-sets-n300b-revenue-target-with-extended-airline-contracts/ https://www.investingport.com/nahco-sets-n300b-revenue-target-with-extended-airline-contracts/ Biden Blocks U.S. Steel Takeover by Japan’s Nippon Steel, Citing National Security ConcernsKey Points:President Joe Biden has halted Nippon Steel’s $14.9 billion bid to acquire U.S. Steel.The decision stems from concerns over national security and risks to critical supply chains.U.S. Steel’s stock dropped over 7% in premarket trading following the announcement.President Joe Biden officially blocked Japan’s Nippon Steel from acquiring U.S. Steel on Friday, citing national security concerns. The $14.9 billion deal, which would have placed one of America’s largest steel producers under foreign control, was deemed a potential threat to vital supply chains.“This decision reflects my unwavering commitment to using all presidential powers to safeguard U.S. national security, ensuring American companies remain central to critical industries,” Biden stated.The Committee on Foreign Investment in the United States (CFIUS) conducted a months-long review of the proposal, concluding with Biden’s decision. The United Steelworkers union had been vocal in opposing the deal since its announcement in December 2023, citing risks to domestic jobs and industry control. Biden had signaled his opposition to the acquisition as early as March 2024, aligning with the union’s stance.The blocked sale highlights growing bipartisan protectionism in the U.S., with both Democrats and Republicans aiming to keep strategic industries under domestic ownership amid rising geopolitical tensions. Even President-elect Donald Trump voiced opposition to the deal.While Nippon Steel and U.S. Steel argued that the acquisition would boost competitiveness, support rust belt communities, and enhance national security, Biden’s decision sends a clear message that foreign control of key industries—even by allies like Japan—will face heightened scrutiny.U.S. Steel CEO David Burritt had previously warned that failing to finalize the deal might lead to plant closures, adding further uncertainty to the company’s future. Fri, 03 Jan 2025 10:15:58 EST https://www.investingport.com/biden-blocks-us-steel-takeover-by-japans-nippon-steel-citing-national-security-concerns/ https://www.investingport.com/biden-blocks-us-steel-takeover-by-japans-nippon-steel-citing-national-security-concerns/ Carvana Stock Falls as Hindenburg Calls Turnaround a 'Mirage'Carvana stock dropped nearly 2% on Thursday after short-seller Hindenburg Research announced a short position in the company, claiming its 2024 recovery is a "mirage." Hindenburg accused the online used-car retailer of boosting profits by selling risky subprime auto loans, citing $800 million in loan sales to an unnamed "related third party." These sales reportedly contributed 26% of Carvana's gross profit over the past nine months.Carvana denied the allegations, calling them "intentionally misleading" and asserting it remains focused on executing its plans for 2025. The company had earlier reported better-than-expected third-quarter earnings and raised its full-year outlook, contributing to a nearly fourfold increase in its stock price in 2024.Hindenburg also criticized insider stock sales, noting that Ernie Garcia II, the father of Carvana’s CEO, sold $3.6 billion in shares before the company’s downturn in 2022 and an additional $1.4 billion in 2024 during the stock’s recovery.Despite the controversy, analysts remain positive, with a $255 average price target suggesting a 28% upside from Thursday’s closing price of just under $200. Fri, 03 Jan 2025 09:23:59 EST https://www.investingport.com/carvana-stock-falls-as-hindenburg-calls-turnaround-a-mirage/ https://www.investingport.com/carvana-stock-falls-as-hindenburg-calls-turnaround-a-mirage/ Ardova, Heyden Partner with Dangote Refinery for Stable Fuel Supply ⚡⛽In a strategic move to enhance fuel availability and affordability across Nigeria, Ardova Plc and Heyden Petroleum have signed a bulk purchase agreement with the Dangote Petroleum Refinery.Key Highlights1. Steady Fuel Supply:The partnership guarantees a reliable and consistent supply of refined petroleum products from the Dangote Refinery, aimed at addressing fuel scarcity and ensuring stable pricing nationwide.2. Affordable Pricing Benefits:• The move mirrors a similar agreement made by MRS Oil Nigeria Plc, which recently slashed its fuel price to N935 per litre across all stations.• This pricing strategy highlights the potential benefits for Nigerian consumers as more oil companies collaborate with Dangote Refinery.3. Strengthened Partnerships:• For Ardova Plc, the agreement formalizes its long-standing relationship with the refinery, ensuring access to a full range of petroleum products.• The deal is expected to secure operations for both Ardova and Heyden, creating a more competitive environment within Nigeria’s downstream oil sector.4. Impact on Operations:• With over 1,000 retail outlets under Ardova and Heyden, the agreement is set to alleviate recurring fuel scarcity and stabilize the market.• The partnership is poised to reshape Nigeria’s oil and gas landscape, enhancing energy security and improving consumer confidence.Industry Insights• Transformative Potential: The agreement is seen as a game-changer, bolstering Nigeria’s energy infrastructure and reducing the dependency on imports.• Market Response: Similar agreements have already resulted in significant stock surges for companies like MRS Oil, indicating growing investor optimism.Statements• Ardova Plc:“This framework institutionalizes a more robust relationship with Dangote Refinery, fostering long-term benefits and a more competitive downstream oil sector.”• Heyden Petroleum:“Our commitment to affordable fuel supply aligns with this transformative partnership, ensuring consistent delivery to all retail outlets.”Conclusion:This collaboration represents a significant step toward achieving energy security in Nigeria. As more oil companies join forces with Dangote Refinery, the future of the downstream sector looks brighter than ever Fri, 03 Jan 2025 09:22:14 EST https://www.investingport.com/ardova-heyden-partner-with-dangote-refinery-for-stable-fuel-supply/ https://www.investingport.com/ardova-heyden-partner-with-dangote-refinery-for-stable-fuel-supply/ Equity Markets Slip on First Trading Day of 2025U.S. equity markets started the year on a sour note, with major indexes closing lower on Thursday. The S&P 500 and Nasdaq Composite both fell 0.2% to 5,868.6 and 19,280.8, respectively, while the Dow Jones Industrial Average declined 0.4% to 42,392.3.Sector Performance: Consumer discretionary led losses, while energy stocks posted the biggest gains.Tesla Slump: Tesla shares tumbled 6.1% after reporting a year-over-year decline in 2024 vehicle deliveries and missing Wall Street's expectations for Q4. Tesla was the worst performer on both the S&P 500 and Nasdaq.Boeing Drop: Boeing shares fell 2.9%, marking the steepest loss on the Dow and among the worst on the S&P 500.Top Gainers:Constellation Energy: Shares surged 8.4% after the company secured a 10-year, $840 million power supply contract for 13 federal agencies.Nvidia: Shares rose 3% on news of its $1 billion investment in artificial intelligence companies last year.Texas Pacific Land Corp (TPL): The stock climbed 6.7%, buoyed by its focus on new revenue streams like bitcoin mining and data centers.Apple Decline: Apple shares dropped 2.6% after announcing discounts on iPhones in China and agreeing to a $95 million settlement over Siri privacy claims. Fri, 03 Jan 2025 02:33:17 EST https://www.investingport.com/equity-markets-slip-on-first-trading-day-of-2025/ https://www.investingport.com/equity-markets-slip-on-first-trading-day-of-2025/ Economic News: Mixed Signals from the U.S. EconomyManufacturing Slump: The U.S. manufacturing sector contracted further in December, with declining output and new orders. Sentiment hit its lowest level since August, according to S&P Global.Chris Williamson of S&P Global noted, “The brief revival in demand seen post-election has proven temporary.”Labor Market: Weekly jobless claims fell unexpectedly last week, alongside a drop in continuing claims. However, Jefferies cautioned against over-optimism due to seasonal volatility.Mortgage Applications: Mortgage applications dropped sharply in the two weeks ending Dec. 27 as borrowing costs rose across all loan types, per the Mortgage Bankers Association.CommoditiesOil: West Texas Intermediate crude rose 2% to $73.13 per barrel, despite U.S. crude inventories declining by just 1.2 million barrels versus the expected 2.5 million barrel draw.Precious Metals: Gold gained 1.2% to $2,671.50 per ounce, while silver jumped 2.6% to $29.99 per ounce. Fri, 03 Jan 2025 02:29:31 EST https://www.investingport.com/economic-news-mixed-signals-from-the-us-economy/ https://www.investingport.com/economic-news-mixed-signals-from-the-us-economy/