- Stock market recovers from decline as ASI gains by 0.70%
President Bola Tinubu, on Thursday, at the State House in Abuja, held a meeting with the Minister of Steel Development, Prince Shuaibu Abubakar Audu, and the Minister of Defence, Alhaji Mohammed Badaru, during which he received briefing on investment prospects in the steel sector.
The President emphasized that a revitalized steel development industry is both a catalyst for robust economic growth and a doorway to immense opportunities for Nigeria’s massive pool of talented entrepreneurs.
“We will remain unyielding in our determination to build a Nigeria where every citizen has an equal opportunity to prosper and achieve their dreams. New investments in steel production will spur the growth of so many sectors. Industrialization will be a reality in our country with sufficient energy and steel. Nigerian steel will undergird our economy and other economies in our region in future years. I am glad that members of my cabinet have adopted my approach to attracting new investments and job opportunities for our people. Hard work is the only true pathway. We will not relent,” the President stated.
The Ministers informed the President of their discussions with a Chinese company, Luan Steel Holding Group, to build a new steel plant in Nigeria, as well as to commence the production of military hardware in Ajaokuta Steel Plant.
A delegation led by the Minister of Defence and the Minister of Steel Development had visited Hefei and Guangzhou regions of China to hold business talks with the Chairman of Luan Steel Holding Group, Mr Wang Jianbing; the Chief Executive Officer of the Company, Mr Xiao Weizhan, and other senior executives of the Luan Steel Holding Group.
The Chinese company is expected to invest billions of dollars in Nigeria to build the new steel plant.
The Minister of Steel Development briefed the President, following his approval to restart the Light Steel Mill section of Ajaokuta Steel Complex for the production of iron rods, on the progress made on restarting the section, which will cost N35 billion at the first stage.
The Minister said several financial institutions had already provided offer letters for this transaction and that the project is expected to create up to 5,000 direct and indirect jobs for Nigerians.
The Minister of Steel Development also informed the President of discussions with the representatives of Jindal Steel Group of India.
Jindal Steel Group had indicated interest in investing up to $5 billion in a new steel plant in Nigeria on the sidelines of the G20 meeting in New Delhi, India, in September, 2023, and is now considering either acquiring existing plants or setting up greenfield plants.
According to the Minister, upon the completion of these deals, about $10 billion worth of new investments in both new and existing steel plants in Nigeria will be established, which will create over 500,000 direct and indirect jobs in the steel industry in line with President Tinubu’s Renewed Hope Agenda for massive job creation through industrialization.
Stock market recovers from decline as ASI gains by 0.70%
The Nigeria local bourse on Thursday rebounded from the loss posted in the previous session rising higher by 572.66 points to close on a positive breadth.
Investors displayed renewed interest across a spectrum of stock prices as the NGX benchmark index, the NGX All-Share-Index rose by 0.70 percent reaching 82,597.04 index points.
Analysis of trading activities shows that the rebound followed a previous day of profit-taking, prompting investors to reassess their positions.
Consequently, the market capitalization of listed equities also advanced by 0.70 percent, totaling N45.19 trillion as investors collectively gained N313.4 billion, contributing to a year-to-date return of 10.46 percent.
The market saw a favourable distribution with 48 gainers compared to 20 laggards.
Several stocks attracted positive attention from equity investors during this rebound, including GUINEAINS, ROYALEX, JBERGER, CADBURY, and The Initiates PLC.
Each of these stocks experienced appreciations of 10 percent, 10 percent, 9.92 percent, 9.77 percent, and 9.74 percent, respectively, as investors strategically positioned themselves to take advantage of the market dip from the previous day.
However, a few stocks emerged as laggards, with ABBEYBDS, IKEJAHOTEL, CAVERTON, DAARCOMM, and NPFMCRBK witnessing declines of 9.90 percent, 9.90 percent, 9.66 percent, 9.38 percent, and 7.91 percent, respectively.
Despite the rebound, trading activity on the NGX displayed a lackluster trend. There was a 46.55 percent decrease in traded volume, amounting to 877.28 million units, and a substantial 43.20 percent decrease in the total traded value, totaling N14.41 billion.
However, total deals increased by 26.23 percent, reaching 14,919 trades. Sector-wise, positive investor sentiment was observed, with the banking index leading gainers with a 2.73 percent increase. This was driven by positive movements in the prices of UBA, FBNH, FIDELITYBNK, and STERLINGNG.
The Insurance and Consumer goods indexes followed suit with gains of 0.51 percent and 0.39 percent, respectively, attributed to buying interest in GUINEANS, SUNO SASUR, PRESTIGE, CADBURY, and CHAMPION. The Industrial and Oil & Gas sectors also posted positive performances of 0.22 percent and 0.37 percent, propelled by price rallies in JBERGER and ETERNA OIL.
As the trading session concluded, TRANSCORP emerged as the most traded security by volume, with 74.54 million units traded in 1,149 trades, while ZENITH led in traded value at N1.98 billion.
