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Market Index Dips by 0.79%, Investors Lose N71bn

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Stock Investors
  • Market Index Dips by 0.79%, Investors Lose N71bn

The equities market on Wednesday depreciated by 0.79 per cent, causing the market capitalisation of the Nigerian Stock Exchange to fall by N71bn at the close of trading.

This aggravated the poor performance since the beginning of the week, dragging down the year-to-date return on equities to -10.44 per cent.

A total of 145.744 million shares worth N1.35bn were traded in 2,421 deals.

The NSE capitalisation dropped to N8.83tn from N8.901tn, while the All-Share Index closed at 25,653.14 basis points from 25,857.06 basis points recorded on Tuesday.

Similarly, the volume of transactions declined by 23.18 per cent; while the value of transactions advanced by 49.17 per cent.

The market breadth was negative as only six gainers emerged while 33 declined.

Fidson Healthcare Plc, International Breweries Plc, Union Bank of Nigeria Plc, Ecobank Transnational Incorporated Plc and Africa Prudential Registrars Plc were the top gainers for the day, appreciating by 4.88 per cent, 4.68 per cent, 3.37 per cent, two per cent and 1.15 per cent, respectively.

On the other hand, 7UP Bottling Company Plc led the decliners, having shed 9.74 per cent to close at N129.36.

This is followed by Transcorp Hotel Plc, Paint Company Plc, Transnational Corporation of Nigeria Plc and Forte Oil Plc, which share prices depreciated by 9.66 per cent, 9.52 per cent, 7.59 per cent and 7.43 per cent, respectively.

Sector performance as measured by the NSE sector indices revealed that all sector indices trended southward save for the industrial sector, which appreciated marginally by 0.08 per cent.

The oil and gas sector dropped by 1.79 per cent; financial services sector dipped by 1.23 per cent; the food and beverages sector declined by 0.95 per cent; while the insurance sector depreciated by 0.31 per cent.

Commenting on the market performance, analysts at Meristem Securities Limited said, “The equities market has traded negative thus far in the week, and we do not anticipate a significant change in the prevailing mood in the remaining days of the week.

“This outlook is based on sustained investors’ apprehension towards the equities market, given the weak economic fundamentals and the dearth of market moving news to boost confidence.”

Meanwhile, the interbank call rate moderated 16 basis points to 25.17 per cent amid relatively unchanged system liquidity.

At the foreign exchange interbank market, the naira depreciated by N0.25 against the dollar to close at N305.50 in the spot market whilst the one year forward remained unchanged at N355.

At Wednesday’s Treasury bills Primary Market Auction, the Central Bank of Nigeria sold N37bn, N34bn, and N87bn on the 91-day, 182-day, and 364-day bills at respective stop rates of 13.99 per cent, 17.40 per cent, and 18.70 per cent (effective yields: 14.50 per cent, 19.05 per cent, and 22.99 per cent).

Also, the Debt Management Office conducted its monthly bond auction with N95bn on offer across five-year, 10-year, and 20-year bonds. Eventually, the DMO sold N5bn, N14bn, and N20bn each on the five-year, 10-year, and 20-year notes at respective marginal rates of 15.48 per cent 15.98 per cent and 15.95 per cent.

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.

Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

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Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans

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micro-finance-bank

CIT Microfinance Bank Disburses Over N16bn Loans

CIT Microfinance Bank Limited says it has disbursed about N16bn loans since it commenced operations as part of its contributions to the financial sector and empowerment of businesses.

The Managing Director of the microfinance bank, Mr Kingsley Eremionkhale, disclosed this during the company’s 10th anniversary in Lagos recently.

He reiterated that the bank was committed to supporting the growth of small and medium-scale enterprises in the country.

“Since inception, we have disbursed loans worth about N16bn. Our operation is not just about profit-making, but we have impacted many lives, empowered many businesses, and done a lot in terms of our core mandate as a microfinance bank.”

While appreciating its customers who had been loyal to it for years, he said it was concerned about their business success.

The managing director said, “We are part of our customers’ businesses. We provide services beyond lending and savings products and we also give financial advisory services.”

He appreciated the customers who had stayed with the financial institution for many years.

The managing director noted that the MfB is a state-licensed bank operating in Lagos, and a subsidiary of Capitalfield Investment Group.

He also attributed the success of the MfB to the board of directors which it said had been supportive, the management team and its workforce in the past 10 years.

While saying that the bank could lay claims to exponential growth, he said the public should expect more from it.

He also said that it was driving its operations through its digital offerings and our e-channels, to improve its services to our customers.

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Finance

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

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FMDQ

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

FMDQ Securities Exchange Limited has announced the approval of the quotation of the Valency Agro Nigeria Limited N5.12bn Series 1 Commercial Paper under its N20bn CP Programme on its platform.

The Exchange said in fostering the development of the Nigerian debt capital markets, it had continued to avail its credible and efficient platform as well as tailor its listings and quotations services to suit the needs of issuers and registration members through innovative and uninterrupted service delivery.

It said in a statement on Thursday that the Valency Agro Nigeria CP debut issue came at a time when the Nigerian economy was bedeviled with soaring food prices, amidst compounding challenges of insecurity.

It said the agricultural sector and its attendant transformation agenda had never been more important in driving increased and sustainable production of agricultural products as well as the derived foreign earnings through exports.

The Exchange said the proceeds from the issue of the CP would be applied by Valency Agro towards meeting the mid-term working capital requirements of the various agricultural produce under its portfolio such as cashew, sesame, cocoa and in value addition prior to export.

The Executive Director, Valency Agro Nigeria Limited, Mr Sumit Jain, was quoted as saying, “We are thankful to our investors towards showing their faith in our agenda to grow the agriculture-focused business with a clear aim to maximise value addition and create employment opportunities in Nigeria.

“We would also like to commend the efforts made by FBNQuest Merchant Bank Limited’s team to build the reach and FMDQ for their unconditional support for the industry”.

The Head, Capital Markets, FBNQuest Merchant Bank, Mr Oluseun Olatidoye, said, “FBNQuest Merchant Bank Limited is delighted with the successful debut of the N5.12bn Series 1 CP issued by Valency Agro Nigeria Limited. This reiterates our effort to enable underserved sectors access the debt markets, optimise their capital structure and further deepen the domestic capital markets.

“We are proud of the instrumental role FBNQuest Merchant Bank played in this transaction and appreciate the trust the management of Valency Agro placed in us to assist them. Our clients remain our priority, and we strongly believe their success is our success.”

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