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Stocks Shed N235bn as Oando, Eterna, Others Slide



Nigerian Exchange Limited - Investors King
  • Stocks Shed N235bn as Oando, Eterna, Others Slide

The Nigerian equities market declined heavily by N235bn on Monday as Oando Plc, Eterna Plc, Fidson Healthcare Plc, Diamond Bank Plc and Zenith Bank Plc emerged as the greatest losers at the close of trading on the floor of the Nigerian Stock Exchange.

The NSE market capitalisation fell to N9.510tn from N9.745tn, driving the NSE All-Share Index to close at 27,513.69 basis points from 28,192.46 basis points recorded on Friday.

A total of 670.964 million shares valued at N7.912bn were traded in 4,034 deals.

Oando’s shares dropped to N7.79 from N8.62, losing N0.83 (9.63 per cent), while the share price of Eterna slid to N3.52 from N3.89, losing N0.37 (9.51 per cent).

Similarly, Fidson share price dropped by N0.18 (9.38 per cent) to close at N1.74 from N1.92, while Diamond Bank recorded a fall of N0.09 (nine per cent) on its share price to close at N0.91 from N1.

Responding to the huge loss, analysts at Meristem Securities Limited, said, “We attribute the day’s loss to the much expected profit-taking activities on counters that had gained in the market’s recent rally. The day’s loss was tempered by the 4.16 per cent price appreciation of Dangote Cement Plc.”

The market would have fared worse, as excluding the gains in Dangote Cement, total market loss would have hit 4.88 per cent.

The equities market, however, declined by 2.41 per cent to settle the year-to-date return at 2.38 per cent. It recorded its second consecutive trading day of decline, having recorded 41 losers and 10 gainers.

Law Union and Rock Insurance Plc topped the gainers’ list, advancing by five per cent, to close at a year high of N0.84.

Presco Plc, Dangote Cement Plc, Linkage Assurance Plc, and UACN Plc also featured on the top gainers’ list, appreciating by 4.26 per cent, 4.16 per cent, 3.85 per cent and 3.04 per cent, respectively.

All the sector indices recorded declines at the close of trading, with the NSE oil/gas index declining the most by 3.84 per cent. It was trailed by the NSE food/beverage, banking, industry and insurance indices, which dropped by 3.66 per cent, 3.27 per cent, 1.10 per cent and 1.03 per cent, accordingly.

In reaction to the open market operation auction held in the day, the financial system liquidity moderated slightly, thus driving the increase in money market rates.

The open buy-back and overnight rates advanced by 20.83 per cent and 23.83 per cent, respectively, to close at 48.33 per cent and 53.33 per cent accordingly, resulting in a 22.33 per cent hike in the average money market rate, which settled at 50.83 per cent.

The Central Bank of Nigeria is scheduled to hold a Treasury Bills Primary Market Auction on Wednesday. T-bills worth N110.94bn will mature, while an equal amount will be re-issued. The CBN is expected to auction N32.44bn, N22.82bn and N55.68bn in the 91-day, 182-day, and 364-day instruments, respectively.

Axamansard Insurance Plc, on the other hand, announced the retirement of Yetunde Ilori as the company’s Chief Executive Officer effective July 17, 2017.

The company’s board has nominated Kunle Ahmed (Executive Director -Technical) to take over from Ilori upon her retirement, a letter to the NSE by the insurer showed.

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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FG to Earn N462 Billion from Electronic Money Transfer Levy in 2021 – World Bank



Money Transfer - Investors King

The World Bank has said the Federal Government of Nigeria will earn an estimated N462 billion from electronic money transfer levy in 2021.

The leading multilateral financial institution disclosed in its ‘Resilience through Reforms’ report.

The Federal Government had introduced a levy on electronic money transfer in the Finance Act 2020 to take advantage of the growing electronic transfer in the country and up revenue generation.

The electronic money transfer levy is a single one-off charge of N50 on electronic fund transfer in any deposit money bank or financial institution on any type of account on sums of N10,000 or more.

Akpan Ekpo, the Chairman of the Foundation for Economic Research and Training, who spoke in a telephone interview voiced his concerns on the levy.

He said, “The levy is remitted to the government, which is fine. But I think the savers, the people who use the transfer channels, are over-levied. You pay maintenance fee, transfer fee, and I think if this level of levying continues, it will discourage people from using electronic channels.

“Personally, I think the EMT levy should be out of the Finance Act. There is too much burden on the citizens, although the government is making great money from it. Let us hope they use the money wisely, but it shouldn’t have been put there in the first place.

“It is a law now; there is nothing that can be done about it. But I hope it is used wisely, and they would be transparent about how the money is being used.”

Akpan said the EMT levy would discourage individuals outside the formal banking net.

He said, “With the EMT levy, more people are discouraged from using the banks and its services. A lot of Nigerians sell in rural areas, and are outside the financial system net.

“With the EMT, more people are further excluded. There really was no need to introduce the EMT; it will discourage those who are not already in the formal banking sector from even coming into it. It is likely to further deepen the financial exclusion of many Nigerians.”

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Banking Sector

Hope PSBANK Collaborates With FG To Create 100 Jobs In Each Local Government



Hope PSBank- Investors King

Hope Payment Service Bank, a subsidiary of Unified Payment Services Limited and Nigeria’s premier digital bank is collaborating with the Federal Government through the Ministry of Labour and Productivity to create jobs for no fewer than 77,400 people across the country.

The employment opportunity is part of the exit strategy of the Federal Government’s Special Public Works Programme being executed alongside the bank by empowering 100 Nigerians in each of the 774 local governments.

Speaking at the official kick-off of the collaboration, the Managing Director, Hope Payment Service Bank, Mr. Ayotunde Kuponiyi noted that the digital bank serves as an enabling platform that would interface with 77,400 beneficiaries selected from the Special Works Programme of the FG to exit them into self-employment.

Kuponiyi stressed that the focus of the collaboration is geared towards empowering beneficiaries through the agency banking platform in carrying out financial services such as account opening, bills payments, fund transfer, cash in/cash for Nigerians while they earn commission in return with just the use of their smartphones.

According to him, this initiative comes at no cost to the beneficiaries as they can use their phones to carry out agency banking activities for which they earn commissions on each activity carried out. “Once on board, these beneficiaries will become HOPE PSBANK agents. They will undergo training on the various activities by the bank at no cost to them”, he added.

“We are very excited about this collaboration with the Ministry, which is in line with the thrust of the social objectives of Hope Payment Service Bank – poverty reduction through financial inclusion and diffusion of digital financial services”, he said.

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Airtel Partners AXA Mansard, Unveils Mobile Health Insurance via USSD



AXA Mansard USSD Code-Investors King

Airtel Nigeria and AXA Mansard, have entered a strategic partnership to deepen access, participation and enrolment in health insurance for more Nigerians.

The partnership by Airtel and AXA Mansard is in response to the Federal Government’s goal, through the National Health Insurance Scheme, to provide easy access to healthcare for all Nigerians by leveraging on the USSD channel, an easy-to-use and interactive platform.

By dialing the shortcode, *987*7#, Airtel customers can now conveniently enroll for affordable and robust health insurance plans from AXA Mansard, with access to over 1,000 hospitals nationwide for quality healthcare services.

Commenting on Airtel’s partnership with AXA Mansard on the Mobile Health Insurance, the Head Mobile Financial Services, Airtel Nigeria, Muyiwa Ebitanmi, said the mobile health insurance initiative demonstrates Airtel’s commitment to providing innovative and relevant solutions that will empower more Nigerians to conveniently access best-in-class health insurance value offerings.

“Airtel Nigeria is always exploring innovative ways and platforms that will make life easier, more meaningful and more enjoyable for Nigerians. With this initiative, we are not just delivering bespoke health insurance services to the doorstep of more people, we are also leading a quiet revolution that will drive and deepen health insurance inclusion by removing the many barriers that have hitherto excluded many well-meaning Nigerians from participating in the sector.”

Speaking about the Mobile Health Insurance initiative, the Head, Emerging Customers and Digital Partnerships Group at AXA Mansard, Mr. Alfred Egbai, stated that “our research has shown the value and importance of having a health insurance plan to the public especially for the emerging customers in the country, but for many reasons, the uptake of insurance products has been low”.

He continued, “In order to mitigate these challenges and satisfy the health needs of the retail consumer whilst also encouraging the uptake of health insurance in the country, we have partnered with Airtel Nigeria to provide a solution that gives users a convenient way to purchase and manage their AXA Mansard micro-insurance plans.”

Malaria Cover, Inpatient, Outpatient, Specialist medical consultations, Immunizations, Family planning, Ambulance services, Dental care and more are some of the covers provided in the AXA Mansard Health plans.

“The challenges to the implementation of health insurance schemes hitherto include a low level of awareness, affordability, ineffective distribution systems and inefficient payment models.

“The partnership between Airtel Nigeria and AXA Mansard is aimed at solving these challenges and assisting Nigerians to access a viable Health Insurance Scheme,” he said

Airtel Nigeria, as a socially responsible organization, will continue to partner with industry leaders to bring products and services that will touch the lives of its subscribers in very positive ways.

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