Connect with us

Finance

NSE Capitalisation Drops By N297bn

Published

on

Trading floor stock exchange market nse

Trading on Thursday on the floor of the Nigerian Stock Exchange ended on a negative note with losses in the shares of Seplat Petroleum Development Company Limited, Oando Plc, Guaranty Trust Bank Plc, FBN Holdings Plc and FCMB Group Plc, among others, pushing market capitalisation down by N297bn.

At the close of trading, the market capitalisation fell to N8.336tn from N8.633tn while the All-Share Index depreciated from 25,103 basis points to 24,239.98 basis points.

A total of 262.522 million shares worth N2.409bn were traded in 2,579 deals; of which 31 stocks fell in value while only five appreciated.

The highest index point recorded in the course of trading was 27,028.39 while the lowest and average points were 24,239.98 and 25,751.31, respectively.

Seplat shares closed at N176.96 from N196.07, shedding N19.11 (9.75 per cent) while that of Oando depreciated by N0.45 (9.70 per cent) to close at N4.19 from N4.64.

Guaranty Trust Bank shares fell to N14.81 from N16.39, losing N1.58 (9.64 per cent) while FBN Holdings lost N0.38 (9.52 per cent) to close at N3.61 from N3.99. FCMB shares also posted a loss of N0.12 (8.82 per cent) to close at N1.24 from N1.36.

Appearing after the top-five losers were Transnational Corporation of Nigeria Plc, Unity Bank Plc, United Bank for Africa Plc, Dangote Cement Plc, Diamond Bank Plc, Guinness Nigeria Plc, Nigerian Breweries Plc, PZ Cussons Plc, Eterna Plc, Cadbury Nigeria Plc, Nascon Allied Industries Plc, Access bank Plc, Cutix Plc, N.E.M. Insurance Company Nigeria Plc and Law Union and Rock Insurance Plc.

Other losers at the NSE were AIICO Insurance Plc, Skye Bank Plc, Zenith Bank Plc, Trans-nationwide Express Plc, United Capital Plc, Mobil Oil Nigeria Plc, Total Nigeria Plc, Africa Prudential Registrars Plc, Continental Reinsurance Plc, UACN Plc and UAC Properties Plc.

On the gainers charts were Ikeja Hotel Plc, Honeywell Flour Mill Plc, Fidelity Bank Plc, A.G. Leventis Nigeria Plc and Custodian and Allied Plc.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Continue Reading
Comments

Loans

Loan Default: AMCON Takes Over IBEDC

Published

on

AMCON

Further to the judgment of the Federal High Court on the 8th of September 2021, the Asset Management Corporation of Nigeria (AMCON) has announced its takeover of the Ibadan Electricity Distribution Company (IBEDC).

This is following the electricity distribution company’s default in a loan servicing agree­ment executed with Polar­is Bank.

“AMCON has been ap­pointed receiver/manager over all the Assets of In­tegrated Energy Distribu­tion and Marketing Lim­ited as stipulated in the instruments executed in favour of AMCON by vir­tue of the Loan Purchase and Limited Servicing Agreement executed with Polaris Bank Limited dat­ed 30th November 2018 and a Notice of Appointment of the Receiver/Manager dated August 6th, 2021, which was duly stamped by the Commissioner for Stamp Duties”, a statement from AMCON reads.

AMCON further revealed that it has appointed Osayaba Giwa-Osagie to take over the entire undertakings on the IBEDC, including the assets, shares and interests in related companies and entities, and also monies kept in any of the 25 banks in Nigeria.

Investors King gathered that AMCON’s takeover might also not be unconnected to some crisis inside the power company, a development which has reportedly affected its ser­vice delivery to customers.

IBEDC’s Chief Operating Officer (COO), Engineer John Ayodele however allayed the fears of the IBEDC staff.

“I hereby wish to inform all staff that there is no cause for alarm. We are assured of job security which entails our position/duties in the company, being entitlements to our salaries and other benefits etc.”, he said.

Investors King recalls that the IBEDC, during a stakeholders’ meeting in May 2021 had disclosed that it secured N4.2billion from the Central Bank of Nigeria (CBN) to improve power supply to its numerous customers in Ogun State.

According to Ayodele, the facility would be channelled into building lines to improve power/electricity supply to the communities. He had also revealed that 80 percent of the money collected by IBEDC goes for other services, adding that the company has lost over N3billion in estimated billing.

Continue Reading

Finance

Lawmakers Consider Capital Market Bill, Propose Ten-Year Jail Term For Ponzi Scheme Operators

Published

on

Ponzi schemes

Some Nigerians would still cringe at the mere mention of ‘Investment’. This is due to their exposure to the dubious schemes of fake investment platforms and Ponzi schemes.

Hence, as part of efforts in curbing this, a bill seeking the prohibition of Ponzi and Pyramid schemes has passed the second reading at the house of representatives. The bill also proposes a 10-year prison sentence for operators of the Ponzi and pyramid schemes.

The bill, which was sponsored by the Chairman, house committee on capital markets, Ibrahim Babangida, also seeks to repeal and re-enact the Nigerian Capital Market, Investments and Securities Act.

It is titled, ‘A Bill for an Act to Repeal the Investments and Securities Act, 2007 and Enact the Investments and Securities Bill to Establish Securities and Exchange Commission as the Apex Regulatory Authority for the Nigerian Capital Market as well as Regulation of the Market to Ensure Capital Formation, the Protection of the Market to Ensure Capital Formation, the Protection of Investors, Maintain Fair, Efficient and Transparent Market and Reduction of Systematic Risk; and for Related Matters.’

A Ponzi scheme is an investment fraud that pays existing investors with the money collected from new investors. The scheme generally leads victims to believe that their earnings are from genuine business investments, and therefore, can be sustained.

Regarded as one of the world’s largest Ponzi schemes of all time, the Mavrodi Mundial Moneybox (MMM) is a Russian-founded Ponzi scheme which left some Nigerians in despair at their lost “investments” after the company suddenly went into ‘extinction’ in 2017.

After MMM, a lot of other fake investment platforms have emerged and are still emerging, ripping Nigerians off their monies.

The bill, when passed into law, will enable SEC to properly regulate the capital market, ensure capital formation, protect the market to ensure capital formation, protect investors, maintain a fair, efficient and transparent market and reduce systematic risks.

According to Babangida, current trends in capital markets regulation have made it necessary to make major improvements to the Nigerian capital market, the Investments and Securities Act, Act No. 29 of 2007, which was initially signed into law by the late President Umar Musa Yar’adua in June 2007.

Continue Reading

Banking Sector

Parallex Bank Debuts As Newest Commercial Bank In Nigeria

Published

on

Parallex Bank

Parallex Bank, a licenced Microfinance Bank, has successfully transited to a commercial bank after 14 years of operations.

According to the bank’s chairman, Dr. Adeola Phillips, the bank is delving into the commercial banking space, to drive consumer-centric innovation that will propel the banking industry to greater heights.

The bank’s Managing Director, Mr. Olufemi Bakre, who spoke during the launch of the bank’s commercial operations, affirmed that the bank’s promise to its customers is to be an enabler of limitless banking. According to him, the vision of the bank is to be the preferred financial solution provider redefining customer experience through innovation.

The bank revealed its plan to disrupt the market and delight customers with very attractive offers. It noted that most transactions on Parallex mobile app are free but beyond that, customers will have the freedom to do much more with the app.

Parallex bank converted from Parallex Microfinance Bank (a National Microfinance Bank incorporated in 2008 as a Unit MFB) to a commercial bank duly licensed by the Central Bank of Nigeria to carry out commercial banking services. This is a first-of-its-kind achievement in the Nigerian banking space.

The bank noted that it is “poised to be the preferred financial solutions provider redefining customer experience through digital innovations.

“This we will achieve by leveraging the best talents and technology to deliver unparalleled value to our stakeholders. With a strong ecosystem anchored around the customer, we offer a superior product portfolio that is customer-focused and innovative, yet simple”.

With a vision to leverage the best talent and technology to deliver unparalleled value to all its stakeholders, the bank noted that it is open to working with various stake holders to amplify its impact and capability.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending