- Market Sheds N42bn, Oil, Banking Stocks Lead Losers
The market capitalisation of the Nigerian Stock Exchange declined by N42bn at the close of trading on Monday as oil and gas stocks as well as banking stocks led losers on sector basis.
A total of 262.897 million shares valued at N1.747bn exchanged hands in 2,789 deals.
The NSE market capitalisation dropped to N9.147tn from N9.189tn, while the NSE All-Share Index closed at 26,586.56 basis points from 26,707.10 basis points.
The NSE ASI retreated at the start of the week, which is a deviation from the previous week’s record when it posted a five-month high week-on-week return.
All key sectors pulled back into the red at the end of Monday’s trading session, save for the consumer goods sector.
The oil and gas sector led declines for the third straight session following further profit taking in Forte Oil Plc by 9.75 per cent and losses in Seplat Petroleum Development Company Limited by 4.88 per cent.
The financial services sector also snapped an eight-session rally following losses in heavyweights Ecobank Transnational Incorporated Plc and Guaranty Trust Bank Plc by 4.9 per cent and 0.86 per cent, respectively.
The industrial goods sector closed relatively flat. On the other hand, the consumer goods sector bounced back from a four-session losing streak on the back of advances in Guinness Nigeria Plc, Dangote Sugar Refinery Plc and Dangote Flour Plc by 9.54 per cent, 4.1 per cent and 2.05 per cent, accordingly. This outstripped losses in Unilever Nigeria Plc and PZ Cussons Nigeria Plc by 4.98 per cent and 1.38 per cent, respectively.
Market breadth remained negative with 18 advances and 30 declines.
On what would shape the next trading session, analysts at Vetiva Capital Management Limited, in the firm’s daily report, said, “We believe the relatively tepid sentiment of the last two trading sessions (as indicated by the negative market breadth) could persist today (Tuesday) given the pressure on certain bellwether stocks.
In the global scene, Asian and European markets traded mostly down with investors awaiting the Bank of Japan final policy review on Tuesday while their European counterparts digested Germany economic data. The United States stocks were up slightly at market open ahead of a speech by the Federal Reserve Chair.
Meanwhile, the interbank call rate advanced 50 basis points to 3.92 per cent amid a relatively unchanged system liquidity. At the foreign exchange interbank market, the naira held at N305 against the dollar at the spot market whilst the one year forward rate rose by N29 to settle at N378.00.
Expectedly the fixed income market opened the week to selloffs as bearish sentiment initially triggered by the recently released inflation figures persisted. In the Treasury bills market, yields climbed 42 basis points on average with selling weighted on the short end of the curve.
The most significant advances were seen on the yields of the 10 day-to-maturity, 17DTM and 31DTM bills settling at 9.25 per cent, 12.38 per cent and 14.57 per cent, respectively.
Similarly, yields on the benchmark bonds rose six basis points on average in the bond market. Particularly, yields on the 16.39 per cent January FGN 2022 and 12.1493 per cent FGN July 2034 bonds were up five basis points and six basis points to 15.73 per cent and 15.63 per cent, respectively.
CBN Grants Lotus Bank Non-Interest Banking Licence
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.”
Fidelity GAIM Season 4 Final Draw To Hold On July 22
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.
Zenith Bank Gets Recognition for Best Corporate Governance
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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