- 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.
Federal Government Clears $120m Debt to Gas Companies Amid Nigeria’s Power Crisis
Amidst Nigeria’s persistent power crisis, the Federal Government has taken a pivotal step forward by clearing a significant portion of its debt to gas companies.
A sum of $120 million has been paid out of the country’s $1.3 billion indebtedness to gas suppliers, offering a glimmer of hope for improved energy stability across the nation.
The Minister of Power, Chief Adebayo Adelabu, underscored the critical role of gas in power generation and highlighted how the mounting debts had severely hampered gas supply to electricity-generating companies, exacerbating the country’s electricity shortfall.
Nigeria heavily relies on thermal power plants fueled by gas for over 70% of its electricity needs, making the timely settlement of gas debts paramount for enhancing power generation capacity and addressing the nation’s energy deficit.
Addressing delegates at the 7th Nigeria International Energy Summit in Abuja, the Director of the Decade of Gas Secretariat, Ed Ubong, expressed optimism about the government’s progress in offsetting its financial obligations to gas producers.
He emphasized the importance of aligning gas and power sectors to foster sustainable energy solutions.
As Nigeria grapples with the multifaceted challenges plaguing its energy landscape, the government’s commitment to settling outstanding gas debts marks a pivotal stride towards revitalizing the country’s power infrastructure and ensuring reliable electricity access for its citizens.
Nigeria Insurance Corporation Reimburses Depositors of 179 Closed Microfinance and Four Mortgage Banks
The Nigeria Insurance Corporation (NDIC) has announced the successful reimbursement of depositors affected by the closure of 179 microfinance banks and four mortgage banks across the country.
The reassuring news came during the 45th Kaduna International Trade Fair, where NDIC’s Managing Director, Dr. Bello Hassan, explained the corporation’s unwavering commitment to safeguarding depositors’ funds amidst financial uncertainties.
Dr. Hassan, represented by Hauwa Gambo, the NDIC’s Deputy Director of Communication, highlighted the corporation’s proactive measures in protecting the interests of depositors.
The introduction of the Single Customer View framework has expedited the process of reimbursing depositors of liquidated banks, ensuring swift and transparent transactions.
The corporation’s collaboration with the judiciary has yielded positive results, facilitating the speedy prosecution of failed insured banks and resolving long-standing cases of bank liquidations like Fortune and Triumph Banks.
This concerted effort has significantly enhanced the debt recovery rate, enabling NDIC to declare full liquidation dividends to uninsured depositors of over 20 deposit money banks.
Furthermore, NDIC has embraced digital remote payment strategies, streamlining electronic funds transfers to verified depositors’ alternate bank accounts.
The introduction of the ‘Deposit Tracer’ initiative in partnership with mobile operators aims to address apathy among depositors with small balances, providing accessible avenues for claiming funds trapped in closed banks.
The initiatives underscore NDIC’s proactive stance in safeguarding depositors’ interests and ensuring financial stability in Nigeria’s banking sector.
85.51 Million Nigerian Bank Customers Face Withdrawal Freeze Over NIN, BVN Deadline
As the March 1 deadline looms, an estimated 85.51 million Nigerian bank customers are facing the possibility of frozen accounts due to their failure to link their National Identification Numbers (NINs) and/or Bank Verification Numbers (BVNs) to their accounts.
Recent findings reveal the potential scale of the impending banking crisis.
Data from the Nigeria Inter-Bank Settlement System (NIBSS) indicates that Nigeria had approximately 146 million active individual bank customers as of December 2022.
However, by January 26, 2024, only 60.49 million BVNs were recorded on the NIBSS portal, leaving a significant portion unlinked.
Meanwhile, about 104 million NINs had been issued by December 2023, highlighting the disparity between NIN issuance and BVN linkage.
The Central Bank of Nigeria (CBN) had earlier issued directives to banks, mandating them to restrict transactions on accounts lacking linked NINs and BVNs, with effect from March 1, 2024.
Any accounts found non-compliant risk being designated as ‘Post no Debit,’ rendering them unable to process further transactions.
Responding to the impending crisis, the Director-General of the National Identification Management Commission (NIMC), Abisoye Coker-Odusote, emphasized the need for the revalidation of Front-End Partners (FEPs) to ensure the integrity of the identity database.
She underscored the importance of NIN registration and urged collaboration with various stakeholders to expedite the process.
The Executive Vice Chairman/CEO of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, reiterated the significance of linking NINs to SIM cards to enhance national security.
Telecom subscribers were urged to comply with the NIN-SIM linkage directive to avoid service disruptions.
Meanwhile, financial service providers like Opay have issued reminders of the impending restrictions, urging customers to comply with the linkage requirements.
Amidst concerns, some customers contemplate transferring funds to compliant accounts to avoid potential financial setbacks.
As the deadline approaches, stakeholders are intensifying efforts to mitigate the impact of the impending banking crisis on millions of Nigerians.
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