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Tag: NGX

  • NGX hails Fed Govt reforms for upward trend in stock market

    NGX hails Fed Govt reforms for upward trend in stock market

    Acting Chief Executive Officer (CEO) of the Nigerian Exchange Ltd. (NGX), Jude Chiemeka has highlighted the implementation of reforms by the President Bola Tinubu-led administration as being responsible for upward trends in the stock market.

    This he declared yesterday in Lagos, stating that the market dynamics and investor confidence had been greatly impacted by this positive trajectory.

    Chiemeka insisted that the recent bullish trend in the stock market was a reflection of the numerous reforms that the federal government has been pursuing and that the stock market frequently functioned as a gauge for the state of the economy as a whole.

    He stressed how measures, such as the elimination of fuel subsidies, the harmonisation of the foreign exchange (FX) rate, and initiatives to maintain FX market liquidity, have an impact on the stock market.

     ”The market, itself, is usually driven by demand and supply sentiment, the performance of companies, and all the various elements of market hearsay.

     ”A school of thought has said that the NGX is undervalued at the moment and there is a desire to harmonise the hamburger or black market price with the official exchange rate.

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     ”We have seen the purchasing power parity rate of our FX being below the rate, at which the market is currently trading. Hence, the harmonisation will enable various corporates to have access to liquidity at a reasonable price,” he said.

    According to the CEO, the stock market which had been undervalued for a significant period, had experienced renewed investor interest due to the reforms.

    He said given the current interest and inflation rates, investing in the stock market is still a good way to protect against inflation, which makes it appealing, especially from a bullish standpoint.

    The NGX boss on that note, announced that Single Stock Futures will soon be available, providing investors with a new way to handle potentially overpriced stock prices and a way to lessen any volatility that may accompany a bullish trend.

    He said that the present double-digit return was outlined as being in line with current FX and interest rates in terms of market dynamics, even as he appraised the market as forward-looking.

    He said: “On the fixed income side, we have more listings and the Nigerian Exchange Traded Funds(ETFs) market is the second largest in Africa with 12 ETFs and other Exchange products listed; including mutual funds, which continue to grow in significant numbers.

     ”On the equity side, it is a reflection of the policies available in the economy.

     ”As such, there is a lot of stakeholder engagement and advocacy that the NGX is doing to ensure that the government pays more attention to the market so that the main sectors of the economy are listed on the Exchange.

     ”We believe that this will help thrive listings on the capital market, especially when we think about what the government is looking to do in terms privatisation.”

    Even though certain companies are leaving the Exchange, mostly in the equities space, Chiemeka noted the market has not witnessed any significant drawback as a result.

    He underpinned the democratisation of possibilities and offered Nigerians access to publicly traded corporations on the privatising government entities.

    He further expressed optimism to witnessing the listing is more companies on the Exchange.

     ”In terms of exit seen on the equity side, a company decides to list on the market or exit it, but the NGX would continue to provide a world-class trading platform that would allow corporate to come and also exit anytime they wish to”, noted the NGX head.

    “What is key is that the market is robust, growing with world-class infrastructure for trading system for fair market discovery and secondary market liquidity for listed corporates.”

    The Nation reports that the NGX All-Share Index reached the milestone of 100,000 points yesterday after rising by 3 percent or 2,954.14 points, and closed at 101,571.11.

    As such, the market capitalisation closed at N55.583 trillion yesterday after opening at N53.967 trillion on Tuesday, January 23.

    Meanwhile, Dangote Cement, BUA Cement, BUA Foods, Geregu, Seplat Energy, Zenith Bank, Guaranty Trust Company, Airtel Africa, MTN Nigeria, and Transcorp Hotel are some of the stocks worth over N1 trillion currently driving the market.

  • NGX: Market capitalisation up 4% as investors raked in N1.93 trillion

    NGX: Market capitalisation up 4% as investors raked in N1.93 trillion

    The Nigerian stock market continued to show improvement yesterday as investors soaked up N1.93 trillion.

    The market capitalisation closed at N45.523 trillion, up N1.93 or 4 percent from Monday’s recorded N43.597 trillion.

    The benchmark of the All-Share index rose as a result, rising by 4 percent or 2,867.31 points, to close at 83,191.84 as opposed to Monday’s closing of 80,324.53.

    This led to an increase in the Year-To-Date (YTD) return to 11.26 percent.

    Market activity analysis revealed that trade turnover settled higher than it had in the previous session, with a 61.77 percent increase in transaction value.

    A major factor contributing to the positive performance was buying interest in the stocks of MTN Nigeria, BUA Foods, and Dangote Cement.

    17,144 deals totaling 1.41 billion shares, valued at N24.68 billion, concluded

    Read Also: NGX: All-Share Index up 2.04% as investors net N846b

    Leading the activity chart in terms of volume was Fidelity Bank, transacting 141.75 million units at a cost of N1.96 billion.

    While First City Monumental Bank (FCMB) traded 128.97 million shares valued at N1.48 billion, United Bank of Africa (UBA) transacted 117.71 million shares at a value of N3.8 billion.

    Transcorp sold 108.34 million shares valued at N1.6 billion while Access Holdings traded 85.21 million shares worth N2.52 billion.

    Market breadth closed on a positive as the day’s trading rounding up with 72 gainers and 13 losers.

    FBN Holdings led the gainers with 10 percent share price appreciation closing at N 28.60 per share, followed by Cadbury, FTN Cocoa Processors, Guinea Insurance and Universal Insurance, with 10 per cent share respectively to close at N18.15, N2.20, N0.44 and N0.33 per share respectively.

    On the decliner’s chart, Total topped with 10 per cent depreciation at N346.50.

    Daar Communications came second with a 9.40 percent loss at N 1.06 per share and RT Briscoe followed, shedding 8.45 per cent to close at N0.65.

    Also, SUNU Assurance saw a 7.69% decline to close at N1.20, while Prestige lost 7.41 per cent to close at N0.50.

  • NGX: All-Share Index up 2.04% as investors net N846b

    NGX: All-Share Index up 2.04% as investors net N846b

    The Nigerian Exchange (NGX) yesterday recorded more gains on the country’s stock exchange, with the All-Share Index rising 2.04 per cent, or 1,546.77 points, to close at 77,537.57 basis points compared to Tuesday’s closing price of 75,990.88.

    As a result, the Market Capitalisation of NGX increased by N846 billion, closing at N42.429 trillion as opposed to the previous record of N41.583 trillion.

    Consequently, the Year-To-Date (YTD) return increased to 3.70 per cent.

    Increases in Tier-one banks like Zenith Bank, Guaranty Trust Company (GTCO), and Stanbic IBTC constituted the basis for the upbeat.

    Concurrently, 11,629 deals totaling 927.56 million shares with a value of N10.69 billion were exchanged.

    United Bank of Africa (UBA) led the value chart with deals worth N1.54 billion, while Fidelity Bank led the volume chart with 108.11 million units traded.

    One hundrd and twenty-one stocks listed on the NGX took part in the day’s trading, resulting in 78 winners and seven losers.

    Read Also: NGX eyes Nollywood to stock market performance

    With a 10 per cent share price increase to close at N63.25, Dangote Sugar Refinery led the gainers chart.

    UBA and Berger Paints followed suit with 10 per cent share price increases to close at N28.60 and N14.30.

    Both FCMB and Custodian Insurance also saw a 10 percent increase in share prices, closing at N8.25 and N9.90 per share.

    Learn Africa topped the losers chart with 9.09 per cent depreciation at N2.90 per share, and Champion Breweries came in second with a 7.32 percent loss at N3.8 per share.

    Similarly, Ellahlakes depreciated by 1.64 per cent to close at N3 per share. Followed by Nigerian Exchange Group, which lost 1.7 per cent to close at N23.10 per share, and CILeasing losing 2.33 percent to close at N5.03 per share.

    “Almost all sectors responded to the new year spectacularly. It started yesterday, the first trading year in 2024. Yesterday was the preamble but today, every sector was on full beat,” noted Regina Akpan, a Tower Security and Investment analyst.

    Besides applauding the enviable start of the capital market, Akpan anticipated profit-taking (selling of stocks and shares at a profit after their value has risen or just before their value falls) on the last weekday of trading, stating: “There’ll possibly be profit-taking on Friday, January 5, 2024.”

  • NGX eyes Nollywood to stock market performance

    NGX eyes Nollywood to stock market performance

    The Nigerian Exchange (NGX) has indicated that it would explore opportunities and areas of collaboration with the creative industry to create greater values for the market.

    Chief Executive Officer, Nigerian Exchange Limited (NGX), Temi Popoola, said this during the closing gong ceremony for 2023 financial year, which featured Nollywood icon and CEO of RMD Productions, Richard Mofe Damijo (RMD).

    Popoola said plans were on to tap into the expanse wealth of the movie industry for increased retail investor activity.

    He indicated that a collaboration with Nollywood would aid in propelling the younger generation towards  investment, and consequently boosting the capital market  and community at large.

    Popoola stated this during the Closing Gong Ceremony, which honoured the accomplishments of movie stalwart and marked the end of the year’s trading day.

    “Nollywood plays a critical role in selling the Nigerian economy and can help to catalyse increased retail investor activity by educating the younger generation to further crowd them into the market.

    “Nollywood stakeholders can also leverage the market to raise the capital to fund their businesses and projects, deepening the synergy between the creative sector and the capital market.

    Popoola praised  RMD’s feat and consistency in the industry, while also highlighting the importance of the creative sector, particularly in Nigeria.

    He said: “It gives me a lot of pleasure to have RMD here with us today. For anybody who’s in the Nigerian ecosystems, I mean several decades, RMD has been part of what has birth today’s Nollywood. And for me I’m particularly delighted because some people write the story but they’re not there, when it’s actually happening. You see that a lot in the music industry.

    Read Also: NGX targets Gen Zs, millennials to deepen capital market

    “Looking at past names, you know, RMD is a part of the past, present and of course when we think of the future of that industry, he remains a big part of that. And that really, I think, is quite remarkable in many ways, it’s a symptom of the market itself, the exchange.”

    In his remarks, Mofe Damijo mentioned how crucial it was to foster relationships between the corporate community and the creative sector because both had a great deal to offer one another and how they might propel the expansion of the Nigerian economy.

    “We cannot promote Nigeria or attract foreign investment without integrating our art and culture into it, he said, adding that other countries who promote their economies on international platforms go through their art and culture.”

    RMD further stressed on the convergence of business and the creative sector even as he expressed excitement about the market’s high performance and encourages foreigners to invest in the industry next year.

    “There is a convergence between business and creative sector. There’s a reason why it’s called show business. We’ve been concentrating on the show for a very long time. And it is time to look more at the business side of things because now the entire world is cashing out in that sector and we cannot be left behind.

    “I’m also very much delighted that I’m coming at a time like this. Because like I said, the market is at an all time high. We are closing on a very high note, this is a signal for foreigners to come next year. So, this is me saying that we opened the year with a bang and closing higher,” the thespian added.

  • NGX targets Gen Zs, millennials to deepen capital market

    NGX targets Gen Zs, millennials to deepen capital market

    The Nigerian Exchange (NGX) has set a target to pull in younger investors in to the capital market with products and new initiatives.

    This was revealed as the exchange took its financial literacy campaign to the members of the 2023 Batch C, Stream II of the National Youth Service Corp in Lagos State.

    Speaking at the event, the Divisional Head, Business Support Services and General Counsel, NGX, Dr Irene Robinson-Ayanwale, said, “The Gen Zs and the millennials always like their financial independence and they want to be able to make decisions on their own. Stay tuned because we are going to be rolling out a lot of products and initiatives around the Gen Zs and the millennials.”

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    Head, Market Surveillance and Investigations at NGX Regulations Limited, Abimbola Babalola, stated, “If we educate them at this point in their lives that they are coming in contact with money, and they are able to define and know their priorities, that will help them in creating wealth and achieve their financial objectives.”

    Chinonso Ume of the Retail Banking Unit of Zenith Bank Plc, who also spoke at the program said, “This is a veritable opportunity to teach these young ones, empower them in all things financial literacy, combined with a little bit of entrepreneurship skills.”

    Another facilitator, Angel Gift said, “Today, we have been able to speak with about 5,000 corpers and most of them are ready to invest in the capital market.”

  • NGX gifts retiring soldiers shares

    NGX gifts retiring soldiers shares

    Several soldiers were awarded shares in quoted companies as part of savings and investment enlightenment campaign aimed at encouraging military men to plan ahead of retirement.

    In line with its commitment to further deepen financial literacy and increase the participation of retail investors in the capital market, Nigerian Exchange (NGX), in collaboration with Zenith Bank and Africa Prudential took its financial literacy initiative, X-Lit to the Army barracks.

    The session, tagged “Soldering Wealth: X-Lit’s Exclusive Insights for the Nigerian Military”, took place at the Nigeria Armed Forces Resettlement Centre. Topics treated bordered around investing, accessing the market with technology, including the recently launched NGX USSD code.

     Some of the participants won gifts in the form of shares in listed companies for answering questions after the presentations.

    The soldiers commended NGX, Africa Prudential and Zenith Bank for organising the session, saying it came at appropriate time they were preparing for retirement.

    Divisional Head, Business Support Services and General Counsel, Nigerian Exchange (NGX), Dr Irene Robinson-Ayanwale, said NGX launched the X-Lit initiative to bring the market closer to retail investors of which retiring military officers formed part of.

    Read Also: ‘New listings boost NGX capitalisation’

    “That is why we themed this campaign ‘Closer to You’ as we want to further deepen the pool of retail investors in our market. We will be rolling this out across the country and reaching out to more demographics including youths, market women and others,” Robinson-Ayanwale said.

    Head, Capital Markets Business, Africa Prudential Plc, Bukola James-Cole, said it was in realisation of the importance of democratising investing and enhancing financial literacy, that her firm partnered with NGX on the initiative.

    Chinonso Umeh, a retail banking expert at Zenith Bank, expressed enthusiasm about collaborating closely with NGX.

    He commended NGX for its achievements and reiterated Zenith Bank commitment to working together to promote financial literacy among the retail investors’.

  • ‘New listings boost NGX capitalisation’

    ‘New listings boost NGX capitalisation’

    The market capitalisation of the Nigerian Exchange (NGX) has witnessed a surge with new listings contributing over 10 per cent to that effect.

    Chief Executive Officer, Nigerian Exchange (NGX), Temi Popoola disclosed this while addressing the challenge faced by exchanges with increasing delistings globally at the MTN Capital Markets Day in Abuja.

    According to him, the Exchange has experienced a remarkable surge in market capitalisation, with new listings contributing over 10 per cent in the past two years.

    “This underscores NGX’s growing prominence as a preferred destination for corporate listings and capital raising./

    “There has been quite a bit of news lately about delistings in our market, and that is a trend we are seeing not just in Nigeria but on major exchanges globally. Take Johannesburg, for instance; it has been struggling with delistings,” Popoola said.

    Read Also: Courteville, Capital Hotels delist shares from NGX

    After 53 years of listing at the stock market, NGX recently announced that Union Bank of Nigeria (UBN) Plc has reached its final phase of its delisting process.

    This move by the first generation bank, one of the oldest listed companies on the NGX, is predicted to reduce the market’s capitalisation by N224.23 billion.

    On that note, Popoola said the strategy of the NGX to replace delistings even as he highlighted a number of notable listings in the last few years.

    “What most exchanges aim to do is replace those delistings faster than they occur, and that has formed the crux of our strategy at NGX./

    “We have had notable listings within the last two years including BUA Foods, Geregu, which is our first power sector listing, MeCure Industries, VFD Group, and interestingly our first listed investment trust, Nigeria Infrastructure Debt Fund,” Popoola said.

  • Mecure Industries lists N12b shares on NGX

    Mecure Industries lists N12b shares on NGX

    Mecure Industries Plc has listed its entire share capital on the Nigerian Exchange (NGX), paving the way for the general investing public to co-own the healthcare management group.

    It listed by way of introduction of 4.0 billion ordinary shares at 50 kobo each on the Growth Board of the NGX at N2.96 per share. The listing added N11.84 billion to the NGX’s total market capitalisation.

    Chairman, Mecure Industries Plc, Mr. Samir Udani, said the listing was a major development for the company.

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    He said as the company transformed from a private company to a public one with hopes of achieving more visibility and expansion.

    “It’s a very significant move on the part of the company and the board members because a family-run management now is in the eyes of the public. Very important because this is going to get us visibility and also bring the responsibility to all of us. So yes, we have some good expansion plans which we will try to actualize by listing on the stock exchange,” Udani said.

  • Lagos lists Nigeria’s second subnational Sukuk on NGX

    Lagos lists Nigeria’s second subnational Sukuk on NGX

    • N1tr capital raising to fund infrastructure

    Nigeria’s second subnational alternative bond, Sukuk, is opened for trading at the Nigerian Exchange (NGX) as the Lagos State Government (LASG) completed the second issuance under the state’s N1 trillion Debt and Hybrid Instruments (DAHI) Programme.

    The Lagos State Infrastructure Sukuk SPV Plc, the special purpose vehicle of the LASG, at the weekend listed its N19.815 billion 14.675 per cent Series II Fixed Return Forward Ijarah Sukuk on the NGX. The listing marks the commencement of secondary market trading on the Sukuk notes.

    A total of 19.815 million units of LASG Sukuk valued at N19.815 billion were listed at issued price of N1,000 per unit. The rental on the Sukuk is 14.675 per cent, payable bi-annually on May 23 and November 23. Maturity date is May 23, 2030. 

    The LASG Sukuk, the second by a registered Nigerian sub-national, had overshot its target with some 15 per cent within three days of opening, underlining the continuing appetite for alternative investments by Nigerian investors.

    LASG had offered a seven-year, fixed rate, forward-ijarah Sukuk with guidance rental rate of between 14.500 per cent and 14.675 per cent. Minimum subscription was N10 million with multiples of N1 million thereafter.

    The net proceeds of the Sukuk issuance would be used to finance the construction and rehabilitation of the Awoyaya section of the Eti-Osa-Lekki-Epe Expressway.

    The Sukuk issuance came few days after LASG raised N100 billion in a successful start to the sub-national’s N1 trillion long-term infrastructural financing plan.

    Market analysts said the success of the sub-national Sukuk was a good pointer to other states and local governments on the diverse opportunities to raise funds for capital projects from the capital market.

    Market analysts said the success of the Sukuk, barely few days after the ordinary bond issuance, underscored the credit profile of Lagos State.

    The Sukuk was rated ‘Aa’ and ‘Aa-‘ by  Agusto & Co. and Global Credit Rating (GCR), with the ratings alluding to the state’s resilient financial condition, robust financial flexibility, suitable expenditure profile and very strong cash-generating capacity to meet local currency obligations in timely from Internally Generated Revenues (IGR).

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    Lagos State’s IGR is over 70 per cent of the state’s total revenue. In 2021, the state generated total revenue of N771 billion, including IGR of N573 billion.

    The Sukuk was also enhanced by an Irrevocable Standing Payment Order (ISPO) on Lagos States’s share of statutory allocation.

    Offer documents noted that Lagos State is Nigeria’s economic focal point with a Gross Domestic Products (GDP) of N26.6 trillion, cumulative annual growth rate (CAGR) of 11 per cent from 2017 to 2021, representing some 15 per cent of Nigeria’s GDP.

    As part of attractions to investors, the reports pointed out that Lagos State is among the 10 fastest-growing markets in Africa and was ranked the 4th largest city in Africa in 2021, accounting for the location of more than 65 per cent of Nigeria’s industrial capacity. The headquarters for most Nigerian banks are in Lagos as well as top-tier companies and transnational corporations. The state is strategically positioned as a major trade port – with 50 per cent of Nigeria’s port revenue being generated in Lagos from three lighter terminals and two seaports – and a first-choice destination for foreign investors.

    Lagos State is also regarded as a leader in the progression and implementation of the National Sustainable Development Goals (SDGs). Over the last 10 years, Lagos State’s spending on infrastructure development within the state has exceeded some N3 trillion. The focus on infrastructure development is essential, fostering economic growth and boosting the State’s financial capacity, enabling it to attract further capital.

    Osun State had blazed the trails with the issuance of the first Sukuk in Sub-Saharan African with its Osun State N11.4 billion 7-year Ijarah Sukuk in 2013.

  • NGX lists N200b Nigeria’s first naira denominated infrastructure fund

    NGX lists N200b Nigeria’s first naira denominated infrastructure fund

    Nigeria Exchange (NGX) yesterday listed the N200 billion Nigeria Infrastructure Debt Fund (NIBF), paving the way for existing and new investors to trade on Nigeria’s first local currency-denominated infrastructure investment trust fund.

    NIDF, managed by Chapel Hill Denham, aims at providing investors regular and stable income by making debt investments primarily in infrastructure projects in Nigeria.

    The fund, backed by major institutional investors including the Nigeria Sovereign Investment Authority (NSIA), has provided long-term financing in naira for private infrastructure projects. Since inception, it has returned 155 per cent.

    NIDF’s 853.818 million units were listed on the main board of NGX at N8.39 per share. NIDF will remit quarterly dividends to investors by paying out profits from investing in industries like power, transportation, healthcare and education.

    The listing yesterday was commemorated with a closing gong ceremony where the management of the NIDF also provided facts about the fund.

    Chief Executive Officer, Chapel Hill Denham, Mr Bolaji Balogun said the listing of the fund is a great move for Nigeria’s economy.

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    “This is the first time an infrastructure debt fund is listed on the Exchange. NIDF has been existing since 2017 and it has distributed successively for 24 quarters. We have increased the diversity of the areas we invest into – transportation, power, education, telecoms, social infrastructure,” Balogun said.

    He said the country needs to invest consistently to grow in that area of infrastructure.

    He also stressed the importance of infrastructure as an asset class.

    Chief Executive Officer, Nigeria Infrastructure Debt Fund (NIBF), Anshul Rai, outlined the achievements of the fund since its inception in 2017.

    “Through the good work of the team, we have been fortunate not to have non-performing loans. We have had situations where the price of the funds have been very strong with very significant returns,” Rai said.

    Chairman, Nigeria Infrastructure Debt Fund (NIBF), Mr Phill Southwell lauded the listing, adding that by listing on the exchange, NIDF hopes to crowd in retail investors.

    He said the fund’s investment strategy has the sustainability principles of environment, sustainability and governance (ESG) integrated into it.

    Chief Executive Officer, Nigerian Exchange (NGX), Mr Temi Popoola said Chapel Hill Denham has been consistent with immense value addition to the Exchange and a key contributor to capital market growth in the last five years.

    “One big innovation in the last three years was the MTN public offer. It included a complete end-to-end digital application process, which could not have been possible without Chapel Hill. We have been trying to showcase Nigeria as an investment destination, and Chapel Hill has been a strong supporter of that system,” Popoola said.

    He added that the capital market is increasingly becoming a vehicle for solving key governance problems, especially in the aspect of raising debt funding.

    He noted that the NIDF is an elegant solution that exist not only in Nigeria but in foreign markets.

    “The retail investor landscape will find this very attractive. It sells itself,” Popoola said.

    He said the Exchange remains committed to infrastructural development and wealth creation for the country.

    He noted that the listing of NIDF aligns with NGX’s mission to support financial market instruments that drive sustainable wealth creation and infrastructural advancement in Nigeria.

    According to him, NGX will further enhance the visibility of NIDF, giving investors access to more investment options.