Connect with us

Finance

Financial Services Stocks Boost Market Performance

Published

on

Stock Investors
  • Financial Services Stocks Boost Market Performance

Trading on the floor of the Nigerian Stock Exchange ended on a positive note on Thursday as financial services stocks boost the NSE All-Share Index significantly, while oil and gas stocks, overall, closed in the red.

The NSE ASI appreciated to 26,559.01 basis points from 26,407.64 basis points, while market capitalisation closed at N9.138tn from N9.086tn recorded on Wednesday.

A total of 199.983 million shares valued at N1.503bn exchanged hands in 3,313 deals.

The financial services sector extended its rally after gains across banking blue chips – Ecobank Transnational Incorporated Plc, United Bank of Africa Plc, Guaranty Trust Bank Plc and Zenith Bank Plc appreciated by 4.99 per cent, 4.85 per cent, 4.45 per cent and 1.59 per cent, respectively.

The consumer goods sector recorded losses following continued pressure on Nigerian Breweries Plc, which posted 0.73 per cent loss.

While the industrial goods sector closed flat, the energy sector retreated as Forte Oil Plc lost 0.25 per cent after it finally bowed to profit taking after notching an impressive return of 140 per cent in a nine session rally. Mobil Oil Nigeria Plc, Oando Plc and Total Nigeria Plc’s shares dropped by fiver per cent, 4.67 per cent and 4.40 per cent, respectively.

Market breadth remained positive with 23 advances and 14 declines.

Speaking on the possible outcome of Friday’s (today) trading, analysts at Vetiva Capital Management Limited said, “We expect the NSE ASI to add more points at week close as investors continue to bid up bellwether stocks.”

Global markets traded mixed after the United States Fed announced a 25 basis points rate increase and revealed a hawkish outlook for 2017. While European markets were higher with banking stocks leading gains, Asian markets were mostly lower save for the Nikkei which rose on the back of a relatively weaker yen.

Meanwhile, the naira stabilised at N305 to a US dollar as increased demand for FGN bonds persisted.

The impact of the net debit to the system following the treasury bond auction which happened on Wednesday was felt in the money market on Thursday, as the open-buy-back and overnight rates advanced to 3.42 per cent and 4.17 per cent, respectively.

The result of the treasury bills Primary Market Auction held on Wednesday showed an oversubscription was recorded for only the 364-day instrument. The stop rates for the instruments were: 91 Day – 14 per cent; 182 Day – 17.50 per cent and 364 Day – 18.68 per cent.

The FGN bonds space was awash with bullish sentiments. However, investors’ appetite for shorter-term instruments waned as the April 2017 bond recorded the highest advancement of 0.48 per cent. Overall, average bond yield fell to 16.51 per cent.

For the third consecutive day, the naira to dollar exchange rate pegged at N305 and N485 in the interbank and parallel foreign exchange markets, 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.

Finance

FG Borrows N2.36 Trillion from Capital Market in 2020

Published

on

President Buhari

FG Borrows N2.36 Trillion from Capital Market in 2020

Mr. Oscar Onyema, the Chief Executive Officer, Nigerian Stock Exchange, said the Federal Government borrowed N2.36 trillion from the nation’s capital market in 2020.

The CEO disclosed this at the 2020 market recap/2021 outlook held on Tuesday.

He said the Federal Government issuances account for 92 percent of the total bond issued in the market in the year.

Onyema further explained that corporate organisations leveraged on low yield environment to expand and embark on debt refinancing, raising a total of N192 billion,

Capital-raising activities in the fixed income market increased significantly in 2020. The NSE’s bond market capitalisation rose by 35.52 per cent from N12.92tn in 2019 to N17.50tn,” he said.

Onyema noted that “The year 2020 was indeed a historic one for global capital markets. Facing buffeting headwinds, world markets saw sharp swings and steep losses, but largely remained resilient and orderly amid rising uncertainty.

“For The Exchange, renewed investor optimism coupled with improved economic conditions and low fixed income yields, propelled a year end bull run. Of 93 global equity indices tracked by Bloomberg, the NSE All Share Index emerged the best-performing index in the world, surpassing the S&P 500 (+16.26 per cent), Dow Jones Industrial Index (+7.25 per cent) and other global and African market indexes, to post a one-year return of +50.03 per cent.

Speaking on product results for the year, the CEO said, “The Nigerian equities market got off to a strong start in 2020, returning 10.4 per cent by the eighth trading session. By October, the equities market entered a much-awaited bull run.

“Buoyed by the formal declaration of the US president-elect, unattractive fixed income yields and better-than-expected corporate earnings, the NSE ASI recovered from Q1’20, to close the year at 40,270.72 (+50.03 per cent) and erase losses of -14.90 per cent recorded in 2019.

“During its remarkable year end run, the ASI gained 6.23 per cent in a single trading session which triggered a 30-minute halt of trading on all stocks for the first time since the NSE Circuit Breaker was introduced in 2016 to safeguard market integrity in periods of extraordinary volatility.

“At the close of the year, the NSE’s equity market capitalisation was up by 62.42 per cent, from N12.97tn in 2019 to N21.06tn in 2020 while market turnover saw an uptick of 7.25 per cent, from N0.96tn in 2019 to N1.03Tn in 2020.

“Although Initial Public Offering activity was mute, the value of supplementary issues increased dramatically from 2019, rising by 851.37 per cent to N1.42tn, from N148.77bn.

“Also noteworthy is that for the second consecutive year, equity market transactions were dominated by domestic investors who accounted for 65.28 per cent of market turnover by value (retail: 44.98 per cent; institutional: 55.02 per cent) while foreign portfolio investors accounted for 34.72 per cent.”

Continue Reading

Finance

Airtel to Announce Financial Results for Nine Months Ended December 31, 2020 on 29 January 2021

Published

on

Airtel Financial Results

Airtel to Announce Financial Results for Nine Months Ended December 31, 2020 on 29 January 2021

Airtel Africa, one of the leading telecommunications companies in Africa, on Wednesday announced it will report its financial statements for the nine months ended December 31, 2020 on January 29, 2021.

The telecom giant disclosed in a statement signed by Simon O’Hara, Group Company Secretary.

The statement reads “Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, will announce its results for the nine months to 31 December 2020 on 29 January 2021.

“Management will host a conference call on the day of results for analysts and investors at 2:00pm GMT.

“Participants are requested to pre-register for the call by navigating to:
www.diamondpass.net/4467631

“Once registered, participants will receive a calendar invitation with the dial in details for the call.”

Continue Reading

Finance

Global Credit Rating Affirms Sovereign Trust Insurance A Rating

Published

on

insurance

Global Credit Rating Affirms Sovereign Trust Insurance A Rating

Global Credit Rating, an international rating agency based in South Africa, has affirmed Sovereign Trust Insurance Plc A rating in its latest report released for the month of December 2020.

In a statement released through the Nigerian Stock Exchange (NSE), Global Credit Rating noted “that the Company has shown a great deal of consistency in her claims paying obligations to her numerous customers spread all over the country.

The Report further stated that “the listing of the Rights Issue in 2019 helped in increasing the Shareholders’ funds of the Company by 33.8%, to N7.8b by the end of the Financial year in 2019 as against the figure of N5.8b in 2018.

“Subsequently, by the third quarter of 2020, the Shareholders’ funds had increased to N8.2b which also translated to a 31% increase in the corresponding period of 2019 with a figure of N6.3b. In the Rating Agency’s opinion, Sovereign Trust Insurance Plc is strong in liquidity with more than adequate claims coverage that compares well to industry averages.

“The capital adequacy of the Underwriting Firm is considered strong according to the rating report and this is underpinned by the sizeable capital base catering for the quantum of insurance and market risks assumed. In this regard, the ratio of Shareholders’ funds to NEP, (Net Earned Premium) improved to 189.2% in the Q3 of 2020 as against 130.9% in the corresponding quarter of 2019.

In terms of peer-to-peer performance comparison, “Sovereign Trust Insurance Plc did very well when compared with other selected insurers in terms of Capital, Total Assets, Gross Premium Income (GPI) and Net Premium Income (NPI).”

Continue Reading

Trending