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Equities Market Extends Losses on Negative Sentiments

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Nigerian Exchange Limited - Investors King
  • Equities Market Extends Losses on Negative Sentiments

The Nigerian equities market extended its weekly depreciation to sixth consecutive week as the Nigerian Stock Exchange (NSE) All-Share Index (ASI), fell by 0.8 per cent to close at 25,333.39 last week.

The market had maintained a steady decline over the past weeks, shedding 3.0 per cent the previous week. Although the weak negative investors sentiments persistent last week, a number of high-capped stocks halted their losses last week, leading to a lower decline of 0.8 per cent. The market capitalisation of the NSE fell by the same margin to close lower at N8.721 trillion. Apart from the NSE ASI, all other indices finished lower during the week with the exception of the NSE Banking and NSE Consumer Goods Indices that appreciated by 0.02 per cent and 0.42 per cent respectively.

Daily Market Performance   Summary

Trading resumed on negative note as  the NSE ASI fell by 0.15 per cent to close at 25,499.00. The depreciation recorded in the share prices of FBN Holdings, Ecobank Transnational Incorporated (ETI), Dangote Sugar, Mobil   Oil and Stanbic IBTC Holdings were responsible for the decline in NSE ASI. Total value of stocks traded on the floors on Monday was N858.54 million, down by 3.34 per cent from N888.17 million the previous day.

Performance across sectors was broadly bearish with only the NSE Industrial Goods Index gaining marginally. The  NSE Insurance Index led sector decliners, falling by  0.6 per cent on account of losses in Continental Reinsurance Plc (-4.8 per cent) and NEM  Insurance (-1.4 per cent). Similarly,  the NSE  Oil & Gas Index closed 0.36 per cent lower as a result of  profit taking in Mobil Oil  (-2.6 per cent) and Total Nigeria Plc(-2.5 per cent). The NSE Banking Index shed 0.6 per cent to close in the red on the back of weak appetite for ETI (-2.0 per cent), Stanbic IBTC (-1.9 per cent) and Zenith Bank (-0.2 per cent). Losses in Dangote Sugar (-4.9 per cent) and International Breweries (-1.5 per cent) depressed the NSE Consumer Goods Index by 0.1 per cent.

The negative sentiments continued to drive the market down on Tuesday, causing the market the NSE ASI to hit a seven-month low. Specifically, the NSE ASI fell by 0.15 per cent to close at 25,461.34, increasing the month-to-date and year-to-date decline to 6.46 per cent and 11.47 per cent respectively.

Tuesday’s decline resulted from heavy sell offs across oil and gas sector. For instance, Forte Oil Plc fell by 9.7 per cent, while Total Nigeria Plc went down by 5.0 per cent. In all, 17 stocks declined compared with 11 stocks that appreciated. Forte Oil Plc led, declining by 9.7 per cent to close at N74.62.

The sell-off in Forte Oil Plc came after the company successfully raised N9 billion bond under its N50 billion bond issuance programme. The   company had said the funds  would  be used to refinance existing short term commercial bank loan obligations and to finance the retail outlet expansion of the company.

The Group Chief Executive Officer, Forte Oil, Mr. Akin Akinfemiwa  had said: “With the raising of this initial capital which has been fully underwritten shows the confidence the investing public has in Forte Oil Plc as an investment of choice. This bond programme being the first in the downstream sector, is testament to Forte’s position within the downstream sector and allows the company to actualise the vision of the Board to continue to provide value to its shareholders regardless of the economic climate.”

The NSE Oil & Gas Index led the decliners with 2.5 per cent, while NSE Consumer Goods Index followed with a marginal decline of 0.02 per cent. On the positive side,  the NSE  Banking Index rebounded 0.05 per cent  on the back of bargain hunting in Access Bank  (+0.5 per cent), Zenith Bank Plc (+0.4 per cent) and Guaranty Trust Bank (+0.3 per cent).

The bear run was halted on Wednesday as the NSE ASI 0.22 per cent to close higher at 25,517.00 on bargain hunting by investors on some of the highly discounted stocks to increase their portfolio. Similarly, market capitalisation added N19.2 billion to close at N8.8 trillion. At the close trading, 19 stocks gained compared to 11 that depreciated.

Sterling Bank Plc led the price gainers with 5.7 per cent, followed by Oando Plc with 5.0 per cent. Flour Mills of Nigeria Plc and PZ Cussons Nigeria Plc advanced 4.9 per cent each. Conversely, Forte Oil Plc led price losers with 6.2 per cent to close at N70.00 per share. Julius Berger Nigeria plc trailed with 5.0 per cent, just as African Prudential Registrars Plc and Total Nigeria Plc rose by 4.3 per cent.

In terms of sectoral performance, all the sectors closed in the green except the NSE Oil and Gas Index that shed weight. The NSE  Banking Index led sector gainers after appreciating 0.75 per cent following investors’ swoop on GTBank Plc(+1.2 per cent) and  United Bank for Africa Plc (+1.2 per cent). The uptrend in Nestle Nigeria Plc (+1.3 per cent), PZ Cussons Nigeria Plc (+4.9 per cent) and Nigerian Breweries Plc (+0.2 per cent) bolstered the  NSE Consumer Goods Index by 0.50 per cent. Also the NSE Insurance Index appreciated 0.2 per cent on account of AIICO Insurance Plc (+3.5 per cent), while the NSE Industrial Goods Index rose 0.1 per cent.

One day after rebounding, the bears returned and reclaimed the control of the market, pushing the NSE ASI down by 0.10 per cent to close at 25,490.70. The depreciation recorded in the share prices of Forte Oil, Stanbic IBTC, Total, Zenith Bank and Nigerian Breweries were responsible for the decline. Similarly, market capitalisation lost N9.1 billion to close at  N8.8 trillion.

Sectorally, the performance was mixed.  The  NSE Oil & Gas Index topped the losers’ chart closing 1.4 per cent lower due to profit taking in Total (-9.0 per cent) and continuous sell-off in Forte Oil (-1.4 per cent) while the  NSE Consumer Goods Index  shed ).13 per cent on the back of weak appetite in Nigerian Breweries Plc (-0.2 per cent) and International Breweries  (-4.1 per cent). On the  positive side, the NSE Banking Index went up by  0.15 per cent  following gains  posted by  GTBank (+0.9 per cent) and Access Bank (+0.2 per cent) which offset losses in Zenith Bank (-1.1 per cent). The NSE Insurance Index rose marginally 0.02 per cent on account of a rally in NEM Insurance (+4.2 per cent).

The market closed lower on Friday as the NSE ASI fell by 0.62 per cent to close at 25,333.39. The depreciation recorded in the share prices of Forte Oil, Stanbic IBTC, Lafarge, Zenith Bank and Dangote Cement accounted for the decline.

Market turnover

Meanwhile, investors traded 639.439 million shares worth N6.455 billion in 11,799 deals were traded last week, compared with 823.547 million shares valued at N5.444 billion that exchanged hands  in 11,634 deals the previous week. The Financial Services Industry remained the most traded with 491.758 million shares valued at N2.211 billion traded in 6,241 deals; thus contributing 76.90 per cent and 34.25 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 64.507 million shares worth N58.500 million in 681 deals. The third place was occupied by the Consumer Goods Industry with a turnover of 54.901 million shares worth N3.307 billion in 2,386 deals.

Gainers and losers

The price movement chart showed that 27 equities appreciated in price during the review week, higher than 10 equities of the previous week. Conversely, 26 equities depreciated in price, lower 48 equities of the previous week. In terms of gainers, Flour Mills of Nigeria Plc led  with 20.3 per cent, trailed by African Prudential Registrars Plc with 14.5 per cent. Fidson Healthcare Plc appreciated by 12.9 per cent, while Unity Bank Plc rose by 9.2 per cent. Champion Breweries Plc, Mobil Oil Nigeria Plc and Diamond Bank Plc garnered 8.4 per cent and 7.1 per cent in that order among others.

Conversely, Forte Oil Plc led the price losers, declining by 24 per cent, trailed by Okomu Oil Palm Plc with 13.8 per cent, while Neimeth International Pharmaceuticals Plc shed 12.7 per cent. Airline Services and Logistics Plc. UACN Property Development Company Plc and Total Nigeria Plc declined by 11.8 per cent, 11.7 per cent ND 10.9 per cent respectively.

Goddy Egene and Nosa Alekhuogie

The Nigerian equities market extended its weekly depreciation to sixth consecutive week as the Nigerian Stock Exchange (NSE) All-Share Index (ASI), fell by 0.8 per cent to close at 25,333.39 last week.

The market had maintained a steady decline over the past weeks, shedding 3.0 per cent the previous week. Although the weak negative investors sentiments persistent last week, a number of high-capped stocks halted their losses last week, leading to a lower decline of 0.8 per cent. The market capitalisation of the NSE fell by the same margin to close lower at N8.721 trillion. Apart from the NSE ASI, all other indices finished lower during the week with the exception of the NSE Banking and NSE Consumer Goods Indices that appreciated by 0.02 per cent and 0.42 per cent respectively.

Daily Market Performance   Summary

Trading resumed on negative note as  the NSE ASI fell by 0.15 per cent to close at 25,499.00. The depreciation recorded in the share prices of FBN Holdings, Ecobank Transnational Incorporated (ETI), Dangote Sugar, Mobil   Oil and Stanbic IBTC Holdings were responsible for the decline in NSE ASI. Total value of stocks traded on the floors on Monday was N858.54 million, down by 3.34 per cent from N888.17 million the previous day.

Performance across sectors was broadly bearish with only the NSE Industrial Goods Index gaining marginally. The  NSE Insurance Index led sector decliners, falling by  0.6 per cent on account of losses in Continental Reinsurance Plc (-4.8 per cent) and NEM  Insurance (-1.4 per cent). Similarly,  the NSE  Oil & Gas Index closed 0.36 per cent lower as a result of  profit taking in Mobil Oil  (-2.6 per cent) and Total Nigeria Plc(-2.5 per cent). The NSE Banking Index shed 0.6 per cent to close in the red on the back of weak appetite for ETI (-2.0 per cent), Stanbic IBTC (-1.9 per cent) and Zenith Bank (-0.2 per cent). Losses in Dangote Sugar (-4.9 per cent) and International Breweries (-1.5 per cent) depressed the NSE Consumer Goods Index by 0.1 per cent.

The negative sentiments continued to drive the market down on Tuesday, causing the market the NSE ASI to hit a seven-month low. Specifically, the NSE ASI fell by 0.15 per cent to close at 25,461.34, increasing the month-to-date and year-to-date decline to 6.46 per cent and 11.47 per cent respectively.

Tuesday’s decline resulted from heavy sell offs across oil and gas sector. For instance, Forte Oil Plc fell by 9.7 per cent, while Total Nigeria Plc went down by 5.0 per cent. In all, 17 stocks declined compared with 11 stocks that appreciated. Forte Oil Plc led, declining by 9.7 per cent to close at N74.62.

The sell-off in Forte Oil Plc came after the company successfully raised N9 billion bond under its N50 billion bond issuance programme. The   company had said the funds  would  be used to refinance existing short term commercial bank loan obligations and to finance the retail outlet expansion of the company.

The Group Chief Executive Officer, Forte Oil, Mr. Akin Akinfemiwa  had said: “With the raising of this initial capital which has been fully underwritten shows the confidence the investing public has in Forte Oil Plc as an investment of choice. This bond programme being the first in the downstream sector, is testament to Forte’s position within the downstream sector and allows the company to actualise the vision of the Board to continue to provide value to its shareholders regardless of the economic climate.”

The NSE Oil & Gas Index led the decliners with 2.5 per cent, while NSE Consumer Goods Index followed with a marginal decline of 0.02 per cent. On the positive side,  the NSE  Banking Index rebounded 0.05 per cent  on the back of bargain hunting in Access Bank  (+0.5 per cent), Zenith Bank Plc (+0.4 per cent) and Guaranty Trust Bank (+0.3 per cent).

The bear run was halted on Wednesday as the NSE ASI 0.22 per cent to close higher at 25,517.00 on bargain hunting by investors on some of the highly discounted stocks to increase their portfolio. Similarly, market capitalisation added N19.2 billion to close at N8.8 trillion. At the close trading, 19 stocks gained compared to 11 that depreciated.

Sterling Bank Plc led the price gainers with 5.7 per cent, followed by Oando Plc with 5.0 per cent. Flour Mills of Nigeria Plc and PZ Cussons Nigeria Plc advanced 4.9 per cent each. Conversely, Forte Oil Plc led price losers with 6.2 per cent to close at N70.00 per share. Julius Berger Nigeria plc trailed with 5.0 per cent, just as African Prudential Registrars Plc and Total Nigeria Plc rose by 4.3 per cent.

In terms of sectoral performance, all the sectors closed in the green except the NSE Oil and Gas Index that shed weight. The NSE  Banking Index led sector gainers after appreciating 0.75 per cent following investors’ swoop on GTBank Plc(+1.2 per cent) and  United Bank for Africa Plc (+1.2 per cent). The uptrend in Nestle Nigeria Plc (+1.3 per cent), PZ Cussons Nigeria Plc (+4.9 per cent) and Nigerian Breweries Plc (+0.2 per cent) bolstered the  NSE Consumer Goods Index by 0.50 per cent. Also the NSE Insurance Index appreciated 0.2 per cent on account of AIICO Insurance Plc (+3.5 per cent), while the NSE Industrial Goods Index rose 0.1 per cent.

One day after rebounding, the bears returned and reclaimed the control of the market, pushing the NSE ASI down by 0.10 per cent to close at 25,490.70. The depreciation recorded in the share prices of Forte Oil, Stanbic IBTC, Total, Zenith Bank and Nigerian Breweries were responsible for the decline. Similarly, market capitalisation lost N9.1 billion to close at  N8.8 trillion.

Sectorally, the performance was mixed.  The  NSE Oil & Gas Index topped the losers’ chart closing 1.4 per cent lower due to profit taking in Total (-9.0 per cent) and continuous sell-off in Forte Oil (-1.4 per cent) while the  NSE Consumer Goods Index  shed ).13 per cent on the back of weak appetite in Nigerian Breweries Plc (-0.2 per cent) and International Breweries  (-4.1 per cent). On the  positive side, the NSE Banking Index went up by  0.15 per cent  following gains  posted by  GTBank (+0.9 per cent) and Access Bank (+0.2 per cent) which offset losses in Zenith Bank (-1.1 per cent). The NSE Insurance Index rose marginally 0.02 per cent on account of a rally in NEM Insurance (+4.2 per cent).

The market closed lower on Friday as the NSE ASI fell by 0.62 per cent to close at 25,333.39. The depreciation recorded in the share prices of Forte Oil, Stanbic IBTC, Lafarge, Zenith Bank and Dangote Cement accounted for the decline.

Market turnover

Meanwhile, investors traded 639.439 million shares worth N6.455 billion in 11,799 deals were traded last week, compared with 823.547 million shares valued at N5.444 billion that exchanged hands  in 11,634 deals the previous week. The Financial Services Industry remained the most traded with 491.758 million shares valued at N2.211 billion traded in 6,241 deals; thus contributing 76.90 per cent and 34.25 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 64.507 million shares worth N58.500 million in 681 deals. The third place was occupied by the Consumer Goods Industry with a turnover of 54.901 million shares worth N3.307 billion in 2,386 deals.

Gainers and losers

The price movement chart showed that 27 equities appreciated in price during the review week, higher than 10 equities of the previous week. Conversely, 26 equities depreciated in price, lower 48 equities of the previous week. In terms of gainers, Flour Mills of Nigeria Plc led  with 20.3 per cent, trailed by African Prudential Registrars Plc with 14.5 per cent. Fidson Healthcare Plc appreciated by 12.9 per cent, while Unity Bank Plc rose by 9.2 per cent. Champion Breweries Plc, Mobil Oil Nigeria Plc and Diamond Bank Plc garnered 8.4 per cent and 7.1 per cent in that order among others.

Conversely, Forte Oil Plc led the price losers, declining by 24 per cent, trailed by Okomu Oil Palm Plc with 13.8 per cent, while Neimeth International Pharmaceuticals Plc shed 12.7 per cent. Airline Services and Logistics Plc. UACN Property Development Company Plc and Total Nigeria Plc declined by 11.8 per cent, 11.7 per cent ND 10.9 per cent respectively.

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.

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Banking Sector

Zenith Bank Gets Recognition for Best Corporate Governance

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Zenith Bank - Investors King

Zenith Bank Plc’s strong business ethos, ethical values, and impeccable corporate governance have been rewarded with ‘Best Corporate Governance’ Financial Services’ Africa 2021 award by the Ethical Boardroom.

The bank, in a statement yesterday, said the award, published in the June 2021 edition of The Ethical Boardroom magazine, recognised the bank’s adherence to global best practices and institutionalisation of corporate governance as well as setting an industry-wide example of best practices in that field.

Commenting on the award, Group Managing Director/Chief Executive of Zenith Bank Plc, Mr. Ebenezer Onyeagwu, said: “This recognition is a testament to our commitment to quality, accountability, fairness and transparency in our engagement with all stakeholders.

“It is also an affirmation of the bank’s professionalism, ethical conduct and sustenance of global best practices and standards which is attributable to the joint collaboration of the management and staff.”
The award comes on the heels of others and recognitions that the bank has garnered in recent times for its track record of excellent performance and commitment to global best practices.

For instance, Zenith Bank was voted as Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020; Best Bank in Nigeria in the Global Finance World’s Best Banks Awards 2020 and 2021, and Best Corporate Governance’ Financial Services’ Africa 2020 by the Ethical Boardroom.

Also, the bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, and Number One Bank in Nigeria by Tier-1 Capital in the “2020 Top 1000 World Banks” Ranking by The Banker Magazine.

Similarly, the bank was recognised as Bank of the Decade (People’s Choice) at the THISDAY Awards 2020, Retail Bank of the year at the 2020 BusinessDay Banks and Other Financial Institutions (BOFI) Awards, and Best Company in Promotion of Good Health and Well-Being as well as Best Company in Promotion of Gender Equality and Women Empowerment at the Sustainability, Enterprise and Responsibility (SERAS) Awards 2020.

Zenith Bank has been generally adjudged a corporate governance compliant bank by the Nigerian Exchange Limited (NGX) hence its listing on the Premium Board of the Exchange.

The bank continues to sustain this reputation and reappraise its processes to ensure that its business conforms to the highest global standards at all times.

The bank places a premium on its core business strategy anchored on people, technology and service, to create value for its numerous clientele.

“With a team of dedicated professionals, the bank leverages its robust Information and Communication Technology (ICT) infrastructure to provide cutting-edge solutions and products through its network of branches and electronic/digital channels,” the statement added.

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Finance

Egypt: African Development Bank Approves Loan of €83 Million for Egypt’s Electricity Sector to Spur Economic Recovery from Covid-19

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Power - Investors King

The Board of Directors of the African Development Bank have approved an €83 million loan to finance the second phase of Egypt’s Electricity and Green Growth Support Program. The funding is part of the Bank’s budget support to the Egyptian government to strengthen its electricity infrastructure, which is expected to bolster the private sector and accelerate recovery from the Covid-19 crisis.

The program seeks to enhance the power sector’s financial sustainability, governance and operations. It will also advance the provision of clean, reliable energy to drive green growth. Egypt’s successful reforms in the sector have led to greater private investment in utility-scale renewable energy projects.

“Egypt’s Vision 2030 instills the sustainability ethos across all sectors. Energy and electricity are amongst the top sectors in Egypt’s International Development Cooperation’s portfolio, pushing towards a green reform,” said Egypt’s Minister of International Cooperation, Rania Al Mashat. “With 2021 being the year of private sector engagement, the Electricity and Green Growth Support Program will contribute towards sustainable growth and job creation and catalyze the development of Egyptian private entities,” she added.

Malinne Blomberg, the Bank’s Deputy Director General for the North Africa Region, said the African Development Bank continues to actively engage with the Egyptian government and private sector companies to support the country’s medium-term development plan and economic reforms, with a particular focus on economic infrastructure such as energy, transport, water and sanitation, as well as industrialization.

In addition to the African Development Bank, Agence Française de Développement and the Japan International Cooperation Agency have also provided financial support to Egypt’s Electricity and Green Growth Support Program.

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Zambia: African Development Bank Approves $1.4 Million Grant to Improve Household Food Security in the Wake of Covid-19

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Food Security - Investors King

The Board of Directors of the African Development Bank has approved a $1.4 million grant from the Global Agriculture and Food Security Program to reduce malnutrition among the Southern African nation’s most vulnerable households.

The Mitigating Impacts of Covid-19 on Household Food Security Project will create about 150 permanent skilled or semi-skilled positions and 40 part-time unskilled jobs in crop, livestock and fisheries value chains. The project will supply inputs for crops, livestock and aquaculture enterprises to promote good agricultural practices and increase food production. There will also be a capacity building component.

“The agriculture sector is an important source of livelihoods, employment and GDP in Zambia. Increased food supply resulting from additional grant funds will lead to more jobs, improved quality of life, and reduction of malnutrition in many impacted communities,” said Martin Fregene, African Development Bank Director of Agriculture and Agro-industry.

The project provides supplementary funds to the ongoing Agriculture Productivity and Market Enhancement Project, a $32 million grant-funded initiative also from the Global Agriculture and Food Security Program, which has been managed by the Bank in the Sinazongwe, Gwembe, Chongwe, Rufunsa, Serenje and Chitambo districts of Zambia over the past five years.

Global Agriculture and Food Security Program administrators said the six districts were selected based on poverty levels, food insecurity and malnutrition prevalence. However, with this funding and program, these districts have the potential for economic growth, and to promote crop diversification. Some 5,000 people, including 3,750 women and 1,000 youth, will benefit. Some 5,000 people will also benefit indirectly along the commodity value chains.

Since the outbreak of Covid-19, Zambia has implemented bold measures to protect the health and economic well-being of its citizens. These steps included a nationwide program to scale up agricultural diversification. The Bank’s Covid-19 Response Facility launched in 2020 has been a lifeline to member governments by providing resources to tackle the pandemic.

“The facility will consolidate the Bank’s support for Zambia’s economic diversification and impact mitigation against Covid-19,” said Mary Monyau, the Bank’s Country Manager in Zambia.

The Zambian project is in line with the Bank’s High 5 strategic priorities, specifically, Feed Africa, Industrialize Africa, and Improve the quality of life for the people of Africa. Similar Bank projects have been successfully undertaken in Malawi, Niger, Liberia, Senegal and the Gambia.

The Global Agriculture and Food Security Program was established as a response to the 2008/09 world food price crisis, following a commitment by the Group of 8 nations (G8) in September 2009 to mobilize up to $20 billion for agricultural development and food security. The World Bank supervises about half of the project portfolio of the Global Agriculture and Food Security Program. The African Development Bank managed about a quarter in December 2019, and the International Fund for Agricultural Development, 11%.

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