The Nation Newspaper

Category: Equities

  • ‘Few Nigerians have access to loans’

    ‘Few Nigerians have access to loans’

    By Collins Nweze

     

    FEW consumers and small business enterprises access loans from banks, Managing Director,  CRC Credit Bureau Limited, Tunde Popoola has said.

    Speaking during a meeting with  reporters in Lagos, he decried the low level of credit penetration in the country.

    According to him, the low access to credit is demonstrated in various ways, apart from credit penetration and coverage.

    He explained that the availability and ease of access to credit is represented by the level of credit penetration, and this is measured by the ratio of total credit to the private sector to the Gross Domestic Product (GDP).

    This, according to Popoola, is  low and underscores the challenge of access to credit.

    Specifically, he observed that as at 2018, credit penetration was a mere 11 per cent in Nigeria, compared with 28 per cent in Kenya, 85 per cent in Morocco, 62 per cent in Brazil and 120 per cent in Malaysia.

    “Interestingly, credit bureau penetration follows the same pattern. Credit bureau penetration indicates the number of adults’ population covered by credit bureau. It is a measure of the number of consumers and businesses enjoying credit in an economy,” he explained.

    Read Also: Kebbi women, youths get loans

     

    Nigeria’s credit bureau penetration last year was 14 per cent, compared with 30 per cent in Kenya, 25 per cent in Morocco, 79 per cent in Brazil and 83 per cent in Malaysia.

    The CRC credit bureau chief further noted that credit bureau penetration would certainly be low where credit to the private sector is low and this is just an “expression of the fact that only few consumers and businesses have access to formal sources of credit in Nigeria”.

    According to him,  Nigeria has been characterised by significant disproportionate allocation of credit to various sectors, such that they contribute the most to Gross Domestic Product (GDP) are denied credit while credit goes to the sectors with relatively little contribution to the GDP.

    For example he observed, while agriculture contributed over 21 per cent to GDP in 2018, the share of bank credit to agriculture was the lowest at 3.8 per cent.

    On the other hand, while oil and gas received 23 per cent of bank credit, its contribution to share of GDP was less than 10 per cent.

    He also frowned at the cost of borrowing, describing it as  very steep in Nigeria, adding that this serves as disincentive to borrowing to a lot of businesses especially the Small and Medium scale Enterprises (SMEs).

    Popoola, who spoke on the theme: Stimulating economic growth through improved access to credit, cited the National Bureau of Statistics, which states that Nigeria could boast of over 37 million micro, small and medium enterprises (MSMEs), but barely 5.3 per cent of total domestic credit to the private sector goes to the sector.

  • COVID-19: CBN, Citibank accounts ready for collections

    COVID-19: CBN, Citibank accounts ready for collections

    By Collins Nweze

     

    The Central Bank of Nigeria (CBN)-led Private Sector Coalition Against COVID-19 has opened naira and dollar accounts for collecting contributions to be used in tackling the COVID-19 pandemic.

    The group had set a N120 billion target for banks and private sector contributors to help support the Federal Government in tackling the crisis.

    The COVID-19 Relief Fund naira account was opened at the CBN with account number -1000014920 while the CBN TSA USD account  number – 0017575300 was opened at the Citibank UK, the correspondent bank.

    CBN Governor, Godwin Emefiele had said collections into the accounts will be allowed within two weeks, and that anyone can make contributions into the accounts, but only companies and individuals that contribute at least N1 billion will be in the Funding Committee.

    In a statement released yesterday, CBN Director, Corporate Communications, Isaac Okorafor, said the Private Sector Coalition will equip medical facilities in six geopolitical zones.

    “The world is currently battling a global health crisis as COVID-19 spreads rapidly through many countries. Currently, cases of the virus have been reported among individuals across Nigeria and there is a high risk of the virus spreading through much of the population, if we do not come together to fight this battle. Necessitating, the introduction of the Private Sector Coalition Against COVID-19 (CACOVID),” the statement said.

    It disclosed that work had begun in earnest to provide and equip medical facilities in the six geopolitical zones. This will, it added, involve the creation of testing, isolation and treatment centers, and include the provision of Intensive Care Units (ICUs) and molecular testing labs.

    Read Also: CBN suspends cheque clearing from today

     

    “We have started with Lagos (1,000 beds), Kano (500 beds), Rivers (210 beds) Abuja (200 beds), Enugu (200 beds) and Borno (200 beds) and expect to be operational within 10 days. The next phase will see locations set up in Katsina, Ogun, Bayelsa, Anambra, Bauchi and Plateau to be ready within three weeks. The remaining states of the Federation will be set up in the last phase within the next five weeks,” the group said.

     

    Also, based on the population of Lagos,  and the fact that it is the epicenter of this crisis, the group will also be creating a permanent structure within the next four to six months.

    “Teams have been set up and world-class standards are being employed to aggressively pursue a solution to this pandemic. This is a massive effort and all hands must be on deck, which is why at a time like this, it is critical we come together as one. Hence the need to channel all our efforts through the CACOVID umbrella”.

     

    “We shall provide a weekly update to keep you apprised of how this life- saving initiative is being addressed and a monthly financial update to the contributors. Please continue to follow the health and safety guidelines as mandated by the Nigeria Centre for Disease Control (NCDC)”.

  • CBN suspends cheque clearing from today

    CBN suspends cheque clearing from today

    From Nduka Chiejina 

    (Asst Editor)

     

    With effect from today, the Central Bank of Nigeria (CBN) has suspended the clearing of all cheque instruments in the Nigerian clearing system.

    A circular signed and sent out to all Deposit Money Banks and the Nigeria Internal Settlement  System (NIBSS) by the CBN on Monday stated that “no fresh cheque instrument will be allowed to pass through clearing system on March 31,  2020.”

    “Only returned cheques would be treated on the said date.”

    The circular with reference identity REF: BKS/DIR/GEN/CIR/07/002 signed by Sam C Okojere, Director Banking Services Department attributed the decision to “recent developments and in furtherance to the Bank’s efforts to ensure hitch free clearing and settlement activities.”

    The recent developments he referred to was President Buhari’s nation wide broadcast on Sunday where he announced a lockdown in Lagos, Ogun states and Federal Capital Territory for two weeks in the interim starting from 11pm of March 30th, 2020 as a means of combating the spread of the Corona virus and to ensure the safety of all Nigerians.

    However, the circular noted that “settlement activities for electronic instruments will continue to hold during this period of suspension.”

    Read Also: N100b healthcare stimulus: CBN sets N2b limit for borrowers

     

    In another development, the Central Bank of Nigeria has released the list of financial institutions that have been granted exemption to be seen outside during two weeks lockdown in Lagos, Ogun and the FCT.

    They are staff of: the Central Bank of Nigeria (CBN); Deposit Money Banks (DMBs); the Nigeria Interbank Settlement System (NIBSS) Plc; Switching companies; Mobile money operators and Payment solution service providers.

    Consequently, relevant security agencies have been requested to grant passage to critical staff of these institutions to enable essential and strategic financial transactions to go undisrupted during the period of the lockdown.

    According to the CBN, “in view of the ongoing restrictions and in order to check further spread of the corona virus disease, the CBN hereby urges the general public to limit their use of cash and avail themselves of the use of alternative payment channels such as mobile banking, Internet banking, Mobile money, Point of Sale, and USSD.

    It assured the public that “financial institutions will remain operational during this period and therefore should guard against panic withdrawals from their banks.

  • Coronavirus withholds N600b investors’ dividends

    Coronavirus withholds N600b investors’ dividends

    By Taofik Salako, Deputy Group Business Editor

    More than N600 billion dividends are being held back by the national scare created by the pandemic Coronavirus (COVID-19) as companies postponed crucial meetings during which final approvals for dividend distributions were to be given.

    The Nation’s investigation at the weekend indicated that the seeming national lockdown, restrictions on public gathering and ‘stay at home’ precautions that are part of the national emergency response to the continuing spread of Covid-19 have stalled the processes for the payment of previously declared dividends and declaration of new dividend recommendations.

    Not less than N600 billion dividend payouts may be affected if the restrictions continue and companies cannot hold crucial meetings.

    Extant rules guiding operations of companies require the board of directors to meet and decide on possible corporate actions, including recommendation of dividend payment for consideration of shareholders at a general meeting.

    Listing and regulatory rules at the capital market also require all quoted companies to submit their annual audited report and financial statement, which traditionally includes final dividend recommendation, not later than 90 days after the end of the financial year. More than 85 per cent of quoted companies, including all banks, insurers, major manufacturers, oil and gas companies and conglomerates use the Gregorian calendar year ending December 31 as their business year. Thus, the deadline for the submission is today.

    A review of regulatory filings and corporate actions at the weekend showed that all companies that had scheduled board or general meetings in the immediate period have postponed the meetings indefinitely. The reasons were the same: Coronavirus and resultant precautions of social distancing, restrictions on public gathering and logistics.

    Lagos State, the national commercial nerve centre, where most meetings usually hold, is also the epicentre of the Covid-19. The state government has shut down schools, markets, social joints and put a restriction of not more than 25 persons on public gathering, automatically closing down large-group assembly like churches, mosques, parties and annual general meetings.

    The boards of directors of Total Nigeria Plc and MRS Oil Nigeria Plc, which had scheduled their meetings for last week, were the latest to postpone their meetings citing Covid-19 and the need to maintain social distancing. Also, companies, such as Africa Prudential Plc, Transnational Corporation of Nigeria and United Bank for Africa, which had scheduled their general meetings for last week were forced to postpone the meetings.

    With the disruptions caused by the Covid-19, both the Nigerian Stock Exchange (NSE) and Securities and Exchange Commission (SEC) have extended the deadline for submission of annual report and accounts by 60 days, till May 29, thus extending the waiting period for shareholders.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said companies should find creative ways to ensure shareholders receive their dividends without necessarily breaching the provisions of extant laws.

    According to him, one way to go about this is to convert the final dividend into interim dividend, which only requires regulatory approval and not approval of shareholders at general meeting.

    “The second option is for Securities and Exchange Commission and the Nigerian Stock Exchange to speed up the implementation of electronic AGM where shareholders can connect to the venue of the meeting electronically as it is done in some countries.The third alternative is what Guaranty Trust Bank has done by deciding to conduct the meeting through proxies while complying with the directive of Lagos State Government,” Umar said.

    He suggested that banks should consider converting each shareholder’s dividends to an interest-free loans and advance such to the shareholder, pending the conduct of AGM, when the dividends will be appropriately used to liquidate the loans. Such loan disbursement and repayment could be done through the registrar, who traditionally oversees distribution of dividend payment, he added.

    Founder and Managing Partner, Imperial Law Office, Afolake Lawal said the Covid-19 crisis has led to an unprecedented situation that requires creative approach to balance the responsibilities of the boards of directors to shareholders with the dictates of extant laws.

    According to her, to manage the  crisis, the board can elect to declare an interim dividend instead of a final dividend, especially if the final dividend will not be paid on the target date as a result of being unable to hold the routine AGM or altogether elect not to pay dividend.

    “Bear in mind that companies have a 15-month period between AGMs. So I think most companies with December year-end can still push their AGMs forward further for three months, and still be within that timeframe. And if the situation requires, you can expect that some boards will make representations to the Corporate Affairs Commission (CAC) for a further three-month extension to hold their AGM. Boards can also approach the courts to give further direction on when it will be appropriate to convene their AGM, in view of the impracticality of holding one within this period. We have guidance from the combined reading of sections 213(1)(b), 223 and 379(2) of the Companies and Allied Matters Act on how to navigate the present realities,” Lawal said.

    Chairman, Ibadan Zone Shareholders Association (IBZA), Mr Eric Akinduro said while the reasons for the postponement of the meetings were quite beyond the control of anyone and were never envisaged, the issue of delayed in dividend payment is a matter of concern to shareholders at this critical time when people are in need of money as a palliative measure.

    According to him, dividend declaration is just a part of the entire agenda to be considered at AGM. So it cannot be isolated for payment as directors do not have such power to pay without the approval of shareholders at AGM.

    He said converting final dividend to interim dividend will negate the law as clearly stated in CAMA section 379 1 and 2, noting that final dividend is proposed by the board of directors of the company at board meeting and shareholders in the annual general meeting approve such proposal either by accepting the proposed rate or reducing it while interim dividend is a distribution to shareholders that has been both declared and paid before a company has determined its full-year earnings.

    “On this condition, it is better to hold on till when the whole situation will be good enough to hold AGM, which I believe, will not take longer time. We need to be very careful on the position of law so that we don’t take any step that will be tantamount to breaking law,” Akinduro said.

    Shareholders’ leader, Chief Sola Aboderin said capital market regulators should explore the ‘doctrine of necessity’ to ensure payment of dividends to shareholders.

    “I am not happy that AGMs are being postponed and dividends are not being paid. We need dividends now, that is why AGM must be held.  SEC can use the doctrine of necessity to temporarily amend the rules of AGM,” Aboderin said.

  • Stock market transactions halve as Coronavirus shuts trading floors

    Stock market transactions halve as Coronavirus shuts trading floors

    By Taofik Salako, Deputy Group Business Editor

    The momentum of activities at the Nigerian stock market nearly halved to its lowest in recent period after authorities shut trading floors across the country as precautions against the spreading Coronavirus pandemic.

    All indicators of activities at the Nigerian Stock Exchange (NSE) closed weekend with turnover volume, value and number of deals at their lowest in recent period. The NSE had on Wednesday March 25 shut down its trading floors across the country under a 30-day COVID-19 emergency response programme.

    Turnover at the Exchange closed weekend at 1.45 billion shares worth N14.92 billion in 21,828 deals for the week, representing 48.2 per cent decline in turnover volume, 54.8 per cent drop in value and 31.2 per cent decrease in number of deals. The NSE had recorded total turnover of 2.80 billion shares valued at N32.56 billion in 31,715 deals penultimate week.

    Last week’s turnover was the lowest in the past six weeks as Nigeria’s confirmed Covid-19 cases continued to rise and authorities scrambled to impose stricter containment measures. These include closure of non-essential drug and food markets, social joints and all gatherings more than 25 persons.

    Read Also: Covid-19: Companies postpone AGM as equities lose N279b

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Oscar Onyema, said the closure of the iconic Lagos trading floor and other mini floors across the country was in response to significant growth in new cases of Covid-19 infection.

    He explained that during the 30-day remote working plan, the Exchange will operate fully on remote trading basis while NSE staff will be available through all its digital platforms to provide support.

    Trading pattern at the stock market also showed a flight to safety with investors holding on to Nigeria’s largest banks, widely considered as some of the most liquid and safest assets to hold at all times. The trio of Zenith Bank Plc, Nigeria’s second largest financial institution; Guaranty Trust Bank Plc, Nigeria’s largest financial institution and FBN Holdings Plc, Nigeria’s oldest bank, were the most active stocks.

    The three most active stocks accounted for 713.80 million shares worth N8.61 billion in 8,608 deals, representing 49.18 per cent and 57.71 per cent of the total equity turnover volume and value respectively.

    With this, the financial services sector also dominated the sectoral breakdown of activities with a turnover of 1.22 billion shares valued at N10.59 billion in 14,944 deals; representing 84.32 per cent and 70.99 per cent of the total equity turnover volume and value respectively. The conglomerates sector followed with 50.261 million shares worth N61.457 million in 442 deals. The third place was the Consumer Goods industry, with a turnover of 47.276 million shares worth N2.509 billion in 2,225 deals.

    Share prices continued to fall as investors remained risk-averse in spite of significant undervaluation and attractiveness of most quoted stocks. Benchmark price indices showed average decline of 1.52 per cent last week, equivalent to net loss of N175 billion. This worsened the negative average year-to-date return to -18.55 per cent. This implies that, on the average, every investor has lost at least 18.55 per cent of his portfolio so far this year.

    Aggregate market value of all quoted equities at the NSE dropped to N11.393 trillion at the weekend compared with N11.568 trillion recorded as the opening value for the week. The All Share Index (ASI)- the value-based index that tracks all share prices at the NSE, declined from its week’s opening index of 22,198.43 points to close weekend at 21,861.78 points.

    Onyema said all physical meetings within and outside NSE’s office premises have been suspended until further notice while the Exchange has instructed its employees to leverage technological tools to conduct meetings virtually.

    ”Dealing members are, therefore, encouraged to continue to trade remotely via our electronic platforms such as FIX protocol and XNET, and reach out to their compliance officer if any support is required. Please note that we will provide manual support to members without remote access during this period. Issuers who have any business to conduct with the Exchange can reach out to their relationship manager for guidance. You should continue to submit all regulatory filings via Issuers’ Portal (X-Issuer), “ Onyema said.

  • Global securities regulators coordinate responses to Covid-19

    Global securities regulators coordinate responses to Covid-19

     

    Nigeria and other members of the International Organization of Securities Commissions (IOSCO) are cooperating closely on their responses to the disruption in capital markets resulting from the macroeconomic impact of Covid-19 on the global economy.

    In a statement, IOSCO, whose members regulate more than 95 per cent of the world’s capital markets, stated that it was committed to ensuring that capital markets continue to function throughout the difficult period of Covid-19 pandemic in an open and orderly manner to enable all participants to price and transfer risk across all traded asset classes.

    IOSCO noted that continued functioning of equity, credit and funding markets supports the efforts of the real economy in dealing with the Covid-19 crisis through access to funding and through the ability to hedge risks.

    According to IOSCO, to meet the objective of continuous efficient operation, securities regulators are focused on the operational and financial resilience of market infrastructures, the operational capability of market users, and the continued flow of information to these markets.

    The global regulatory body said securities regulators are also providing the appropriate regulatory flexibility to help market participants address the challenges posed by Covid-19 while ensuring that market integrity and investor protection principles are maintained.

    Read Also: NCDC confirms 14 new COVID-19 cases

     

    “The IOSCO Board and the IOSCO Regional Committees are hosting regular calls to share information and coordinate responses as necessary and are taking action to address issues arising from Covid-19,” IOSCO stated.

    IOSCO is coordinating closely with the other standard setting bodies including the Basel Committee on Banking Supervision, the Committee on Payments and Market Infrastructures, the International Association of Insurance Supervisors and the Financial Stability Board, including sharing information on policies and regulatory actions being taken.  Banking and securities regulators also continue to cooperate across jurisdictions to ensure adequate liquidity and funding options,” IOSCO stated.

    Chair of the IOSCO Board, Ashley Alder, said the fundamental purpose of equity, credit and hedging markets is to support the real economy, assuring that the IOSCO board is absolutely determined to ensure that they will remain open and functional throughout this difficult period.

    “These markets are vital to enable businesses to access funding and manage risk amidst a period of unprecedented volatility across asset classes. Regulators will continue to cooperate closely to support their commitment to open markets,” Alder said.

    Alder said IOSCO and its members will continue to monitor developments in financial markets arising from the Covid-19 situation and react accordingly.

     

  • Union Bank donates N50m to fight Coronavirus

    Union Bank donates N50m to fight Coronavirus

     

    Union Bank of Nigeria (UBN) Plc has donated $130,000 or N50 million to tackle the spread of the Coronavirus pandemic in Nigeria.

    The donation was made into a fund set up by 54gene, an African genomics research, services and development company working closely with the Nigeria Centre for Disease Control (NCDC) to fight the Covid-19 pandemic.

    According to the bank, the money will help increase Covid-19 testing capacity in the country by up to 1,000 additional tests a day, by buying testing instruments and critical biosafety materials such as biosafety cabinets and personal protective equipment urgently needed to keep frontline healthcare workers safe.

    The bank stated that the procured equipment will be installed in general hospitals and laboratories across the country, and will remain in place even after the ongoing Covid-19 pandemic, to be used in the case of future outbreaks.

    In addition, there will also be extensive training and support to medical practitioners and volunteers working across the country to curb the menace.

    Announcing the donation, Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Emeka Emuwa, said community is one of the core values at the bank noting that there is no better time to live this value than now.

    According to him, a critical need for the country at this time is to scale up its testing capabilities and give a better chance of slowing the spread of the virus.

    “We are therefore pleased to be supporting 54gene who is directly collaborating with NCDC and World Health Organisation who are coordinating Nigeria’s Covid-19 response,” Emuwa said.

    Read Also: 2Baba donates N10 million to fight coronavirus

     

    While commending Union Bank on its donation, Chief Executive Officer, 54gene, Dr. Abasi Ene-Obong said the rapid and assured response from some of Nigeria’s most reputable institutions, such as Union Bank, to join the fight against this deadly disease is highly welcome.

    “They, like us, understand the need for a multi-stakeholder, co-ordinated plan, that can be implemented almost immediately, as we work together as a community, side-by-side, to fight Covid-19 and protect our population,” Emuwa said.

    Last week, Union Bank, which had already been proactive in rolling out stringent safety and hygiene practices within its branches and service locations, took the lead in activating remote work for its employees, directing more than 70 per cent of its employees in non-service functions to work from home starting Monday, March 23, 2020.

    Union Bank also announced the launch of a toll-free customer care number 0800 700 700 which customers can call free of charge at anytime of the day or night to get help with banking issues.

    Emuwa said these initiatives underscored Union Bank’s commitment to containing the spread of the virus while actively supporting the communities within which it operates.

     

  • CSCS assures of seamless operations

    CSCS assures of seamless operations

    The Central Securities Clearing System (CSCS) Plc has reiterated its commitment to delivery of efficient service in spite of the challenges posed by the pandemic Coronavirus.

    CSCS stated that it has activated a fully digital framework to ensure its operations continue to run efficiently while protecting the health and safety of its employees, clients and other stakeholders.

    CSCS stated that it is leveraging its digital channels to meet all requests at this period as it joins global institutions in the campaign for social distancing.

    CSCS is using the X-alert, an SMS sent by CSCS on all transactions carried out on the Nigerian Stock Exchange (NSE) to educate investors on the need for social distancing and safety precautions against the Coronavirus.

    Chief Executive Officer, Central Securities Clearing System (CSCS) Plc, Mr. Haruna Jalo-Waziri, said CSCS as the financial market infrastructure for the Nigerian capital market is fully committed to efficient delivery on all its services as it works with all stakeholders to reinforce the resilience and liquidity of the Nigerian capital market.

    “Having activated our business continuity plan, which has long been envisaged as a part of our crisis management framework, we are fully operational, even as a notable percentage of our staff have been empowered to work remotely from home.

    More importantly is our campaign on social distancing, better hygiene practice and other precautions against the contagious spread of Covid-19, as the safety of everyone is paramount to us, just as we have activated all relevant measures to ensure the safety of all depository assets,” Jalo-Waziri said.

    According to him, as a part of its strategy of dealing with the pandemic, CSCS has since suspended all business travels and temporarily physical meetings, including its internal sessions, thus leveraging digital technologies such as Zoom, Webex, audio conference calls amongst others.

    He said CSCS had implemented earlier protocols including the daily internal sensitization on preventive tips to all staff along with situational updates on Covid-19 incident reports and management; increased hygiene measures through deep and more frequent cleaning of its offices, provision of sanitizing gels to staff and promotion of recommended personal hygiene practices.

    “We thank you for your understanding as we all rise up to stem the spread of this virus and adapt to new challenges arising from the pandemic. Our focus is on helping you and ensuring continuity of our services as a financial market infrastructure,” Jalo-Waziri said.

     

  • E-Tranzact to raise N7b new equity funds from shareholders

    E-Tranzact to raise N7b new equity funds from shareholders

     

    E-Tranzact International Plc plans to raise N7 billion in new equity funds from existing shareholders. The company has applied to the Nigerian Stock Exchange (NSE) for regulatory approval to proceed with the new capital raising.

    E-Tranzact will be offering 4.67 billion ordinary shares of 50 kobo each to existing shareholders at a price of N1.50 per share. The rights issue will be pre-allotted on a basis of 10 new ordinary shares of 50 kobo each for every nine ordinary shares of 50 kobo each held as at the close of business on March 25, 2020.

    Shareholders of E-Tranzact had in December 2018 authorised the board of the company to raise additional capital of up to N7 billion “through the issuance of any form of equity instrument(s), whether by way of public offering, private placement, rights issue, offer for subscription or other methods they deem fit, with or without preferential allotments, either locally or internationally, at such dates and on such terms and conditions as shall be determined by the directors”.

    Shareholders also empowered the directors to consider as an alternative or addition issuance of convertible or non-convertible loans while allowing the company to issue undersubscribed shares to interested investors as well as absorb excess subscriptions.

    Shareholders increased the company’s authorised share capital from N2.1 billion or 4.2 billion ordinary shares of 50 kobo each to N9.1 billion or 18.2 billion ordinary shares of 50 kobo each.

     

     

  • Equities rally N15b gain amid bargain-hunting

    Equities rally N15b gain amid bargain-hunting

    By Taofik Salako, Deputy Group Business Editor

     

    Nigerian equities rode on the back of increasing bargain-hunting to post net capital gain of N15 billion yesterday as investors stepped up premium orders for value stocks. With three gainers to very loser, thd overall market position closed with average gain of 0.1 per cent, equivalent to net capital gain of N15 billion.

    The All Share Index (ASI)- the main index that tracks all share prices at the Nigerian Stock Exchange (NSE), increased from its opening index of 21,729.48 points to close at 21,757.47 points. Aggregate market value of all quoted equities also improved from its opening value of N11.324 trillion to close at N11.339 trillion. Average year-to-date return moderated to -18.9 per cent.

    Sectoral indices showed mixed performance. The NSE Banking Index rallied above average gain of 6.0 per cent while the NSE Insurance Index rose by 1.9 per cent. On the negative side, the NSE Consumer Goods Index declined by 4.6 per cent. The NSE Oil and Gas Index dropped by 0.2 per cent while the NSE Industrial Goods also depreciated by 0.2 per cent.

    There were 24 gainers against eight losers. Banking stocks dominated the top gainers’ list with Guaranty Trust Bank leading with a gain of 90 kobo to close at N18. Union Bank of Nigeria followed with a gain of 60 kobo to close at N6.60. Access Bank and Cadbury Nigeria chalked up 55 kobo each to close at N6.15 and N6.20 respectively while Zenith Bank and United Bank for Africa added 35 kobo each to close at N12.10 and N5.15 respectively.

    On the negative side, Nestle Nigeria led the losers with a drop of N85 to close at N765. Stanbic IBTC Holdings followed with a loss of N1.80 to close at N24.30. Julius Berger Nigeria dropped by N1.70 to close at N22. GlaxoSmithKline Consumer Nigeria lost 30 kobo to close at N3.50 while Lafarge Africa and Nigerian Breweries declined by 20 kobo each to close at N9.30 and N26.80 respectively.

    Total turnover however declined by 26.3 per cent to 172.1 million shares valued at N1.89 billion in 3,542 deals. Zenith Bank was the most active stock with a turnover of 40.64 million shares worth N488.8 million.

    “Despite gains recorded in today’s session, low oil prices and the continuous spread of Covid-19 pose as major threats for investors in the domestic equities market,” Afrinvest Securities stated.