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Stocks Shed N235bn as Oando, Eterna, Others Slide

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  • 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 Investing.com, with over a decade experience in the global financial markets.

Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

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Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans

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CIT Microfinance Bank Disburses Over N16bn Loans

CIT Microfinance Bank Limited says it has disbursed about N16bn loans since it commenced operations as part of its contributions to the financial sector and empowerment of businesses.

The Managing Director of the microfinance bank, Mr Kingsley Eremionkhale, disclosed this during the company’s 10th anniversary in Lagos recently.

He reiterated that the bank was committed to supporting the growth of small and medium-scale enterprises in the country.

“Since inception, we have disbursed loans worth about N16bn. Our operation is not just about profit-making, but we have impacted many lives, empowered many businesses, and done a lot in terms of our core mandate as a microfinance bank.”

While appreciating its customers who had been loyal to it for years, he said it was concerned about their business success.

The managing director said, “We are part of our customers’ businesses. We provide services beyond lending and savings products and we also give financial advisory services.”

He appreciated the customers who had stayed with the financial institution for many years.

The managing director noted that the MfB is a state-licensed bank operating in Lagos, and a subsidiary of Capitalfield Investment Group.

He also attributed the success of the MfB to the board of directors which it said had been supportive, the management team and its workforce in the past 10 years.

While saying that the bank could lay claims to exponential growth, he said the public should expect more from it.

He also said that it was driving its operations through its digital offerings and our e-channels, to improve its services to our customers.

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Finance

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

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FMDQ

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

FMDQ Securities Exchange Limited has announced the approval of the quotation of the Valency Agro Nigeria Limited N5.12bn Series 1 Commercial Paper under its N20bn CP Programme on its platform.

The Exchange said in fostering the development of the Nigerian debt capital markets, it had continued to avail its credible and efficient platform as well as tailor its listings and quotations services to suit the needs of issuers and registration members through innovative and uninterrupted service delivery.

It said in a statement on Thursday that the Valency Agro Nigeria CP debut issue came at a time when the Nigerian economy was bedeviled with soaring food prices, amidst compounding challenges of insecurity.

It said the agricultural sector and its attendant transformation agenda had never been more important in driving increased and sustainable production of agricultural products as well as the derived foreign earnings through exports.

The Exchange said the proceeds from the issue of the CP would be applied by Valency Agro towards meeting the mid-term working capital requirements of the various agricultural produce under its portfolio such as cashew, sesame, cocoa and in value addition prior to export.

The Executive Director, Valency Agro Nigeria Limited, Mr Sumit Jain, was quoted as saying, “We are thankful to our investors towards showing their faith in our agenda to grow the agriculture-focused business with a clear aim to maximise value addition and create employment opportunities in Nigeria.

“We would also like to commend the efforts made by FBNQuest Merchant Bank Limited’s team to build the reach and FMDQ for their unconditional support for the industry”.

The Head, Capital Markets, FBNQuest Merchant Bank, Mr Oluseun Olatidoye, said, “FBNQuest Merchant Bank Limited is delighted with the successful debut of the N5.12bn Series 1 CP issued by Valency Agro Nigeria Limited. This reiterates our effort to enable underserved sectors access the debt markets, optimise their capital structure and further deepen the domestic capital markets.

“We are proud of the instrumental role FBNQuest Merchant Bank played in this transaction and appreciate the trust the management of Valency Agro placed in us to assist them. Our clients remain our priority, and we strongly believe their success is our success.”

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