Investors lose N371bn on NSE in one trading session

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    …Foreign trade records 10.3% decline in 2020 — NBS

    … As MAN records 160.13% increase in FDI in Q3’2020

    Investors on the Nigerian Stock Exchange, on Tuesday, lost N317 billion in a trading session amid sell pressure on bellwethers.

    Specifically, the market capitalisation which opened at N20.612 trillion shed N371 billion or 1.80 per cent to close at N20.241 trillion.

    Also, the All-Share Index dipped 709.72 points or 1.80 per cent to close at 38,686.85 from 39,396.57 achieved on Monday.

    Accordingly, the month-to-date and year-to-date losses increased to 2.8 per cent and 3.9 per cent respectively.

    The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are Lafarge Africa, United Bank for Africa, Greif Nigeria, Northern Nigeria Flour Mills and Zenith Bank.

    Market sentiment remained negative with 21 losers compared with 15 gainers.

    UBA led the losers’ chart in percentage terms, dropping by 10 per cent to close at N7.20 per share.

    Caverton Offshore followed with a loss of 9.55 per cent to close at N1.80, while NNFM lost 9.52 per cent to close at N5.70 per share.

    Greif lost 9.46 per cent to close at N6.70, while AXA Mansard Insurance shed 9.09 per cent to close at 90k per share.

    On the other hand, Champion Breweries recorded the highest price gain of 9.78 per cent to close at N2.02 per share.

    Neimeth International Pharmaceuticals followed with 9.71 per cent to close at N1.92, while Mutual Benefits Assurance gained 8.11 per cent to close at 40k per share.

    Dangote Sugar Refinery gained 7.99 per cent to close at N18.25 per share, while Associated Bus Company appreciated by 7.14 per cent to close at 30k per share.

    In spite of the drop in market indices, the total volume of shares traded rose by 64.8 per cent with an exchange of 545.92 million shares worth N9.59 billion achieved in 5,307 deals.

    This was in contrast with a turnover of 297.23 million shares valued at N3.15 billion transacted in 4,655 deals on Monday.

    Transactions in the shares of UBA topped the activity chart with 123.27 million shares worth N887.63 million.

    Notore Chemical Industries followed with 74.07 million shares valued at N3.67 billion, while Mutual Benefits Assurance traded 58.04 million shares worth N23.19 million.

    FBN Holdings sold 48.94 million shares valued at N352.08 million, while Access Bank transacted 42.74 million shares worth N324.22 million.

    Meanwhile, The National Bureau of Statistics, NBS, said Nigeria’s total trade was valued at N32.42 trillion in 2020, signifying a 10.3 per cent decline compared to N36.15 trillion recorded in 2019.

    This is contained in its “Foreign Trade in Goods Statistics Quarter Four (Q4) 2020” report published on its website on Tuesday in Abuja.

    The report said that the value of total imports in 2020 stood at N19.898 trillion, or 17.3 per cent higher than the N16.96 trillion recorded in 2019.

    It added that total exports was valued at N12.522 trillion, or 34.8 per cent less than the N19.19 trillion recorded in 2019 and that the annual merchandise trade deficit in 2020 stood at -N7.375 trillion.

    Giving an overview of the Q4, 2020 merchandise, it said that total trade stood at N9.120 trillion, representing 8.9 per cent over the level recorded in Q3 but was 9.9 per cent lower when compared to Q4 2019.

    “The value of trade in Q4 was the highest recorded over the past year.

    “The export component of trade stood at N3.194 trillion, an increase of 6.7 per cent over the preceding quarter but a drop of 33 per cent over the previous year.

    “Further, the share of exports in total trade declined to 35 per cent in Q4 from 47 per cent a year earlier.”

    The bureau said that on the other hand, total imports reached a record high at N5.925 trillion in Q4, an increase of 10.1 per cent over the preceding quarter, and 10.8 per cent over the preceding year.

    It said that imports also accounted for 65 per cent of total trade in Q4 2020, compared to 53 per cent in 2019, while for 2020, the value of total imports was 17.3 per cent higher than the value recorded in 2019.

    According to the report, the value of imports nearly doubled the value of exports, while the trade deficit rose to its highest level and a fifth consecutive quarterly deficit at -N2.731 trillion, an increase of 14.30 per cent compared to the preceding quarter.

    Giving a breakdown of imports for Q4 2020 and full year, the report said the value of imported agricultural products was 5.75 per cent higher in Q4, 2020 than in Q3,2020 and 128.17 per cent higher compared with the corresponding quarter of 2019.

    However, for 2020, the value of agricultural imports was 78.6 per cent higher than what was recorded in 2019.

    “The value of raw material imports grew marginally by 0.75 per cent in Q4, compared to Q3 but was 113.12 per cent higher compared to Q4, 2019.

    “For 2020, the value of raw material imports was 72.5 per cent higher than the value recorded in 2019.”

    The NBS said that the value of solid minerals imports was 16.82 per cent lower in Q4, than its value in Q3, but 58.59 per cent higher than  in Q4, 2019.

    It added that on an annual basis, the value of solid mineral imports was 39.3 per cent higher than the value recorded in 2019.

    The report also said that the value of energy goods imports was 236.2 per cent in Q4, higher than in Q3, and 199.51 per cent higher than the value recorded in Q4, 2019.

    On an annual basis, the value of energy goods imports was 24.1 per cent lower than recorded in 2019, it said.

    For imported manufactured goods, the NBS said that its value grew by 11.43 per cent in Q4, against the value recorded in Q3, but decreased by 2.21 per cent compared to Q4, 2019.

    For full year, it said the value of manufactured imports was 6.5 per cent higher than the value recorded in 2019.

    It also said that the value of other oil products imported in Q4 was 17.4 per cent higher than its value in Q3 but 3.23 per cent less than the corresponding quarter of 2019.

    For 2020 however, the value of other oil products imports was 15.1 per cent higher than the value recorded in 2019.

    In its assessment of exports, the NBS said the value of total exports in Q4, 2020 increased by 6.7 per cent against the level recorded in Q3, but decreased by 33. 3 per cent compared to Q4, 2019.

    It said that the value of agricultural exports fell by eight per cent in Q4 compared to Q3 and 18.2 per cent compared to Q4 2019.

    On an annual basis, in 2020, the value of agricultural exports was 19.2 per cent higher than the value recorded in 2019.

    The report said that the value of raw material goods exports in Q4 was 317.6 per cent higher than the value in Q3 and 122 per cent higher than the value recorded in Q4 2019.

    In 2020, the value of raw material goods exports was only 0.7 per cent higher than the value recorded in 2019, it said.

    The NBS also said that the value of solid minerals exports decreased by 20.7 per cent in Q4 against Q3 but increased by 135 per cent against the corresponding quarter in 2019.

    It added that in 2020, the value of solid mineral exports was 46.2 per cent lower than the value recorded in 2019.

    “The exports of energy goods increased in value by 13.3 per cent in Q4 compared to Q3 but decreased by 15.5 per cent compared to Q4, 2019.

    “In 2020, the value of energy goods exports was 40.3 per cent lower than the value recorded in 2019.

    “The value of manufactured goods exports fell by 3.1 per cent in Q4 compared to the value recorded in Q3 and 74.7 per cent compared to Q4, 2019.

    “In 2020, the value of manufactured exports was 53.7 per cent lower than the value recorded in 2019.”

    It however, said that the value of crude oil exports in Q4 increased by 4 per cent compared to Q3 but decreased by 30.5 per cent compared to Q4, 2019.

    It added that for full year, the value of crude oil exports was 35.7 per cent lower than what was recorded in 2019.

    Meanwhile, for other oil products there was a 22.2 per cent increase in value of exports in Q4 as against Q3, but decreased by 19.3 per cent compared to Q4 2019.

    On an annual basis however, the value of other oil products exports was 17.1 per cent lower than the value recorded in 2019.

     Q3’2020: MAN records 160.13% increase in FDI

    The Manufacturers Association of Nigeria, MAN, on Tuesday said that the sector’s Foreign Direct Investment, FDI, increased to $400 million in the 3rd quarter of 2020, from $153.77 million recorded in the corresponding quarter of 2019.

    The $246.23 million increase indicates a rise of 160.13 per cent, the association detailed in its Bi-annual Review of the Economy for July to December 2020.

    The report stated conversely that Foreign Portfolio Investment (FPI) fell to $407.25 million in the 3rd quarter of 2020 from $3.027 billion recorded in corresponding quarter of 2019; thus, indicating $2.619 billion decrease over the period.

    “However, it increased by $21.93 million when compared with $385.32 million recorded in the 2nd quarter of 2020,

    “Also, trade summary report shows that Nigerian merchandize trade fell to N8.37 trillion in the 3rd Quarter of  2020 from N9.19 trillion recorded in the corresponding quarter of 2019; thus, indicting N0.82 trillion or 8.9 per cent decrease over the period.

    “However, it increased by 34.15 per cent when compared with N6.24 trillion recorded in 1st half of the year.

    “Balance of Trade fell to -N2.39 trillion in the 3rd quarter of 2020 from N1.39 trillion recorded in the corresponding half of 2019 and -N1.80 trillion recorded position in the 2nd quarter of the year.

    “Nigeria’s import trade increased to N5.38 trillion in the 3rd quarter of from N3.9 trillion recorded in the corresponding  quarter of 2019 and N4.02 trillion of  2nd quarter of the year.

    “Export trade of the country fell to N2.99 trillion in the 3rd quarter of 2020 from N4.6 trillion recorded in the corresponding quarter of 2019; thus, indicating N1.61 trillion or 35 per cent declined over the period.

    “However, it increased by N0.77 trillion  or 34.7 per cent when compared with N2.22 trillion recorded in the 2nd quarter of the year.

    “Manufactured goods accounted for only 4.44 per cent of total export merchandize, but 43 per cent of total import merchandize in the 3rd quarter of 2020,” it said.

    The report also stated that manufacturing capacity utilization edged up to 53.7 per cent in the 2nd half of 2020 from 43.2 per cent recorded in the 1st half of the year; thus, indicating 8.5 per cent point increase over the period.

    The uptick in capacity utilization during the period was attributed to the relaxing the COVID-19 containment measures, particularly the opening of  the economy for business activities in the 2nd half 2020.

    “The increase is also seasonally influenced as a result of Christmas celebration which boosted economic activities in the last quarter of the year,” it read.

    Also, manufacturing production value declined to N2.36 trillion in the 2nd half of 2020 from N7.38 trillion recorded in the corresponding half of 2019; thus, indicating N5.02 trillion decline over the period.

    However, it increased by N0.32 trillion or 15.5 per cent when compared  with N2.04 trillion  recorded in the 1st half of the year.

    “Production value in the sector totaled N4.4 trillion in 2020 as against N11.99 trillion achieved in 2019.

    “The uptick in manufacturing production in the 2nd half over the performance in 1st half of the year was due to the opening up of the economy for businesses after over five months of lockdown to contain the spread of COVID-19,”it stated.

    Raw materials sourcing also declines to 56.5 per cent as against 64 per cent recorded in the corresponding half of 2019, indicating a 7.5 per cent decline over the period.

    MAN attributed the decline in  local raw-materials utilization to the opening up of world economies for trade after months of global lockdown.

    “Manufacturers are, therefore, able to increase importation of raw materials,” it said.

    The inventory of unsold finished manufactured goods also increased to N303.22 billion from N202.16 billion recorded in the corresponding half of 2019; thus, indicating N101.06 billion or 50 per cent increase over the period.

    The increase in inventory in the period was attributed to the general low consumption and renewed imports in the economy as global economies generally opens after months of lockdown.

    “It also increased by N28.83 billion or  10.5 per cent when compared with N275.39 billion recorded in the 1st half of the year.

    “Inventory of unsold manufactured goods in the sector totaled N577.61 billion in 2020 as against N402.42 billion recorded in the 2019.

    “Electrical and Electronic sectoral group accounted for over 33 per cent of total inventory of unsold manufactured products in period.

    “The group are having the challenges of low patronage, high smuggling and products counterfeiting which rubbed-off negatively on inventory,” it said.

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