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Ashaka Cement delist from Nigerian Stock Exchange
As Ashaka Cement delist from the Nigerian Stock Exchange today, Rotimi Fakayejo, Managing Director at Enterprise Capital joins CNBC Africa for a review of the trading day.
Tue, 04 Jul 2017 13:48:17 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The NSCO Chain Decks registered a decline in trading volumes, indicating dwindling interest from foreign investors awaiting clarity on oil price impacts on Nigeria's revenues.
- The delisting of Ashaka Cement from the stock exchange has sparked interest in the future prospects of La Farge Africa following the merger.
- The sluggish start to the third quarter is attributed to market instability caused by fluctuating oil prices and recent challenges in the banking sector, leading to a cautious approach by investors.
The Nigerian Stock Exchange (NSE) Chain Decks have been on a downward trend with declining volumes over the past few trading sessions. There seems to be waning interest from foreign investors who are awaiting clarity on the impact of falling oil prices on Nigeria's oil revenues. The NSCO Chain Decks closed at 32,410 points, down by 1.1% as investors tread cautiously in the current market environment. Simultaneously, in the currency market, the Naira has maintained relative stability, hovering around $305 to the dollar for a few months now. One of the significant developments in the market was the delisting of Ashaka Cement from the stock exchange. With the company now being part of the La Farge Africa group, analysts are turning their focus to the future prospects of La Farge Africa and how this merger will affect the stock going forward. Rotimi Fakayejo, Managing Director at Enterprise Capital, shared insights on the implications of this delisting. He pointed out that the merger of Ashaka Cement and La Farge Africa will create a more robust entity that can better compete with other cement giants in Nigeria. This development is expected to attract attention from investors looking for opportunities in the market. The market has started the third quarter sluggishly, leading some to question if this is a breather following a strong second quarter or a sign of a more prolonged slowdown. Fakayejo attributed the slow start to the market instability caused by fluctuating oil prices and the recent challenges faced by the banking sector, particularly the Etisalat loan saga. These factors have had ripple effects on various sectors, contributing to the cautious approach seen in the current market sentiment. When asked about the current selling pressure in the market, Fakayejo noted that the negative sentiment seemed to have carried over from the end of the previous trading week. He suggested that monitoring transaction volumes and values could provide insights into whether the ongoing trend is driven by profit-taking or a general decline in demand. The gradual decline in market activity has raised concerns about the overall outlook for the market in the coming weeks. Fakayejo remained cautiously optimistic about a potential turnaround but acknowledged the challenges posed by the current market conditions. As investors continue to assess their positions and market dynamics, the next few trading sessions will be crucial in determining the direction of the market. Overall, the market landscape remains uncertain, with various factors influencing investor sentiment and trading patterns. Stakeholders will be closely monitoring developments in the market to navigate through the evolving economic landscape and identify potential opportunities for growth and investment.
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