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NSE Index Rises 3.4% as Stock Market Rallies



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  • NSE Index Rises 3.4% as Stock Market Rallies

The rally at the stock market continued for the third consecutive week as the Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI) appreciated by 3.4 per cent to close at 26,707.10. Although the market opened for only four days as Monday was declared public holiday to mark the Eid-el-Maulud celebration, the bullish trend was sustained following  investors’ swoop on oil and gas stocks due to renewed interest in the sector.

Investors’ interest in oil stocks was boosted by   the decision of  OPEC and non-OPEC members agreed a deal to curb their production leading to a rally in the price of crude oil.

At the end of the week, the market surged by 3.4 per cent to close at 26,707.10, while market capitalisation rose by same margin to close higher at N9.189 trillion. Similarly, all other indices finished higher during the week with the exception of the NSE Insurance, NSE

Consumer Goods  that depreciated by 0.53 per cent, 1.68 per cent, and 0.46 per cent  in that order. The  NSE Oil & Gas Index recorded the highest appreciation of 7.36 per cent following gains posted by  Seplat (+20.59 per cent) and Forte Oil  (+9.42 per cent). Likewise, the NSE Banking Index followed with a growth of 6.28 per cent while the NSE Industrial Goods Index went up by 3.51 per cent.

Daily Market Performance   Summary

In line with its bullish trend, the equity market opened the week on a positive note, as the NSE ASI  appreciated by 0.98 per cent to close at 26,071.16, lifted by  gains in share prices of  Seplat, Forte Oil, Access Bank, Dangote Cement and GTBank.

The total value of stocks traded on the first day was N2.41 billion, up by 47.33 per cent from N1.64 billion recorded the last trading day, while the total volume of stocks traded was 376.69 million shares in 2,885 deals.

The NSE   Oil & Gas sector led the sectors, surging by 6.3 per cent  on the back of on the back of increased buying interest in Seplat  (+10.3 per cent ) and Forte (+10.2 per cent) while the NSE  Industrial Goods Index gained 0.9 per cent. The NSE Banking Index followed suit, rising 0.7 per cent as gains in GTBank (+2.0 per cent) and Access Bank (+2.0 per cent) bolstered  the sector.

On the contrary,   the NSE Insurance Index fell by 0.7 per cent due to losses in AXA Mansard  (-4.7 per cent) and WAPIC  Insurance (-2.0 per cent). Similarly,  the  NSE Consumer Goods Index marginally went down by  0.02 per cent on account of declines in Seven-Up Bottling Company Plc (-0.8 per cent).

On Wednesday, which was the second trading day, the market sustained the uptrend as the NSE ASI appreciated by 1.29 per cent to close at 26,407.64. Just like the previous day, the NSE Oil/Gas Index  rose 4.4 per cent propelled by  gains in  the shares of  Forte Oil and  Seplat.

Investors traded 205.40 million shares valued at N4.28 billion in 3,275 deals.  The most actively traded sectors were: Financial Services (159.87 million shares), Consumer Goods (25.34 million shares) and Conglomerates (8.10 million shares), while the  most actively traded stocks were: UBA (54.69 million shares), Diamond Bank (22 million shares) and Zenith Bank (21.18 million shares).

All sectors closed in the green save for the  NSE Consumer Goods Index which lost on account of declines in Nigerian Breweries  (-2.5 per cent) and Champion(-4.2 per cent). The NSE Oil & Gas Index  remained the best performing sector  with 4.4 per cent growth, while the  NSE  Banking Index  appreciated by 2.3 per cent on the account of strong demand for  ETI (+4.9 per cent) and GTBank (+3.0 per cent). In a similar vein, Dangote Cement lifted the NSE Industrial Goods Index by 1.0 per cent, just as the NSE Insurance Index   grew by 0.5 per cent due to appreciation in the share price of WAPIC Insurance Plc.

The equity market maintained its upward trend on Thursday with the NSE ASI rising  for the 6th consecutive trading session. The positive performance was on  price appreciation  in banking stocks such as UBA (+4.8 per cent), GTBank (+4.4 per cent) and Zenith  (+1.6 per cent). Accordingly, market capitalisation rose N52.1 billion to settle at N9.2 trillion even though  market activity fell  as volume and value traded declined 2.6 per cent and 64.9 per cent to close at 200.0 million shares  and N1.5 billion  respectively.

The three most actively traded stocks were: International Energy Insurance Company (37.84 million shares), UBA (29.63 million shares) and FBN Holdings (24.04 million shares). The most actively traded sectors were: Financial Services (173.43 million shares), Conglomerates (11.99 million shares) and Oil and Gas (6.25 million shares).

The appreciation in the price of Dangote Cement shares lifted the equity market on Friday with the NSE ASI rising by 0.56 per cent to close higer at 26,707.10.  Apart from Dangote Cement, gains  recorded in the share prices of ETI, Oando, Union Bank and Honeywell also contributed to the growth.

Market turnover

Despite the fact that the market opened for four days, the volume and value of shares traded increased compared to the previous week’s performance. Investors traded  1.656 billion shares worth N12.580 billion in 12,860 deals  in  contrast to a total of 894.759 million shares valued at N10.629 billion that exchanged hands in 13,418 deals  the previous week.

The Financial Services Industry remained the most active with 1.504 billion shares valued at N6.183 billion traded in 7,311 deals; thus contributing 90.82 per cent and 49.15 per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 51.395 million shares worth N4.753 billion in 2,027 deals. The third place was occupied by the Conglomerates Industry with a turnover of 46.282 million shares worth N52.408 million in 553 deals.

Also traded during the week were a total of 2.439 million units of Exchange Traded Products (ETPs) valued at N18.276 million executed in 15 deals, compared with a total of 2,850 units valued at N355,162.85 transacted the previous week  in 21 deals. Similarly,   total of 411 units of Federal Government Bonds valued at N428, 995.77 were traded last week in one deal.

Gainers and losers

Meanwhile, 40 equities appreciated last week higher than 27 equities of the previous week. Conversely, 19 equities depreciated in price, compared with 36 equities of the previous week, while 116 equities remained unchanged higher than 112 equities recorded in the preceding week.

Honeywell Flour Mills Plc  led the price gainers with 24.5 per cent, trailed by ETI with 21.1 per cent. Seplat went up by   20.5 per cent, just as United Capital Plc, Livestock Feeds Plc and Vitafoam Nigeria Plc chalked up 11.9 per cent, 11.5 per cent and 10.9 per cent respectively.

Other top price gainers included: African Prudential Registrars Plc, Neimeth International Pharmaceuticals Plc  (10.0 per cent apiece); Forte Oil Plc (9.4 per cent) and GTBank Plc (2.1 per cent).

Conversely, Portland Paints and Products Nigeria Plc led the price losers with 13.5 per cent. Unilever Nigeria Plc followed with 12.1 per cent. Fidson Healthcare Plc, Caverton and Mobil Oil shed 8.6 per cent, 8.5 per cent and 8.2 per cent in that order.

Beta Glass Company Nigeria Plc, Airline Services and Logistics Plc went down by 7.8 per cent and 5.3 per cent respectively. Avon Crowncaps Plc, AXA Mansard Insurance Plc and Cadbury Nigeria Plc rose by 5.0 per cent, 4.1 per cent and 4.0 per cent in that order.

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

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Banking Sector

CBN Grants Lotus Bank Non-Interest Banking Licence



Lotus Bank- Investors king

The Central Bank of Nigeria (CBN) on Thursday, June 17, granted a non-interest banking licence to Lotus Bank Limited.

This was contained in a statement titled ‘CBN grants Lotus Bank licence to commence non-interest banking operations’.

The statement read in part: “Lotus Bank seeks to pursue the mission of creating value and growth for all through digital innovation and best-in-class customer experience for Nigerians.”

Commenting on the grants, the founder and managing director of Lotus Capital (the pioneers of non-interest finance in Nigeria), Hajara Adeola, said the bank was starting its operations on a solid foundation of experienced leadership and a strong advisory council of experts.

Adeola explained that the bank is managed by a team of seasoned professionals and financial experts led by the Managing Director/Chief Executive Officer, Kafilat Araoye, who has over 25 years of commercial banking experience.

She added that the institution’s focus and guiding principle is ‘to deliver an alternative option to interest-based banking and to cater to the needs of not just the banked but also the underbanked and unbanked population.

According to her, non-interest banking was geared towards supporting the real sector and Lotus Bank aimed to improve financial inclusion in the country.

The founder of the bank, however, disclosed that it would operate transparent pricing models as it was the norm in non-interest banking.

The statement added: “Our values are deeply rooted in partnership. A critical component of our mission is the provision of innovative solutions that drive ethical prosperity for all stakeholders.

“We pride ourselves on digital solutions that provide our customers with the convenience of unlimited access to our services and products.”

“Our products and service offerings will include non-interest business financing, deposit products (current, savings and investment accounts) and personal financing.”

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Banking Sector

Fidelity GAIM Season 4 Final Draw To Hold On July 22



Fidelity Bank- Investors King

One of the leading financial institution in Nigeria, Fidelity Bank Plc, has announced plans to enrich the lives of fifteen Nigerians with a total of 39 million Naira at the final draw of the “Get Alert in Millions Campaign (GAIM)” Season 4 savings promo, slated for July 22, 2021.

The savings promotion, which is specifically aimed at promoting the culture of saving among Nigerians, is one of the bank’s many initiatives aimed at rewarding new and existing customers for their unwavering loyalty and patronage.

Despite the fact that the promotion was halted in 2020 due to the Coronavirus (Covid-19) Pandemic and the resulting global lockdown, hundreds of Nigerians have benefited from this unique reward scheme in which lucky customers are credited with millions of naira and consolation prizes via a draw system.

The Chairman, Promo Committee, Fidelity Bank Plc, Mr. Richard Madiebo expressed his delight at the resumption of the savings promotion, stating that the campaign seeks to reward customers for their loyalty and patronage. According to Mr. Madiebo, for the past twelve years, the bank has empowered new and existing customers, providing an avenue for many to change their fortunes through its savings Promo.

He stated that the bank takes pride in keeping its promises, adding that the lender would continue to look out for innovative ways to satisfy and enrich its customers across the nation.

“And as we wind down on the 4th season of the GAIM promo, we are elated at the prospect of not only driving financial inclusion across Nigeria but also at the unique opportunity to enrich the lives of our customers especially in times of economic uncertainties”, noted Madiebo

Over the years, the leading tier two Bank has continued to intensify its efforts and innovate ways towards ensuring customer and stakeholder satisfaction. Through this promo, Fidelity Bank has promoted financial inclusion through digital channels and enriched the lives of its customers even in times of economic uncertainties.

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Banking Sector

Zenith Bank Gets Recognition for Best Corporate Governance



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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