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Stocks Hit 23-month High on Stable Naira, Oil Price

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NSE
  • Stocks Hit 23-month High on Stable Naira, Oil Price

The equities market on Monday posted the highest result in 23 months following the recent stability of the naira and improved oil prices.

The market appreciated by N417bn to close at N11.262tn from N10.845tn recorded on Friday. The Nigerian Stock Exchange All-Share Index also rose to 32,578.38 basis points from 31,371.63 basis points recorded at the close of trading on Friday.

A total of 640.439 million shares valued at N7.675bn were traded in 7,024 deals.

Recent developments on the naira and the international oil market have improved Nigeria’s economic prospects, prompting investors to buy into the stock market.

Shares rose for the fifth consecutive session, with Dangote Cement Plc, which accounts for a third of the market’s value, surging by 8.85 per cent.

Consolidating on the gains recorded in the previous trading session, the NSE ASI advanced by 3.85 per cent at the end of the day’s trading activities, with the year-to-date return of the index subsequently settling at 21.22 per cent.

However, the volume of shares traded and market turnover declined by 9.60 per cent and 7.03 per cent, respectively. There were 45 gainers on the day, while 13 stocks shed in value.

Mobil Oil Nigeria Plc appreciated by 10.25 per cent and was the top performer in the market, trailed by Conoil Plc, Flour Mill Nigeria Plc, FBN Holdings Plc and Custodian and Allied Plc, which appreciated by 10.23 per cent, 10.19 per cent, 10.12 per cent and 9.72 per cent, respectively.

However, the day’s losers were led by Union Dicon Salt Plc, C & L Leasing Plc, Jaiz Bank Plc and Cutix Plc, which depreciated by 4.95 per cent, 4.55 per cent, 4.40 per cent and 4.27 per cent, respectively.

The bourse’s sector indices all recorded advancements, with the NSE industry index gaining 6.49 per cent; NSE banking index, 1.75 per cent; NSE food-beverage index, 0.22 per cent; NSE oil/gas index, 3.28 per cent; and NSE insurance index appreciating by 1.14 per cent.

Commenting on the performance, analysts at Meristem Securities Limited said, “The Nigerian equities market was characterised by stronger bullish activities as reflected by the price gains witnessed on certain tickers upon which profit-taking was expected.

“We expect the positive momentum to continue, however, we do not rule out the likelihood of speculators cashing in on the significant gains recorded thus far.”

Meanwhile, the Securities and Exchange Commission has said it will withdraw the registration of about 400 capital market professionals who fail to comply with the directive to provide updated information of their companies by July 31, 2017.

The capital market regulator said in a circular on Monday, “Any firm whose response is not received within this timeframe would be considered inactive and SEC would exercise its power to revoke its registration.”

SEC, pursuant to the powers conferred on it by the Investments and Securities Act 2007, had directed all capital market experts and professionals to provide updated information of their companies/firms in December 2016 and February 2017.

However, it was observed that a large number of capital market experts/professionals comprising reporting accountants, solicitors, and estate surveyors/valuers, among others, did not respond to the request.

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.

Banking Sector

CBN to Extend Credit Risk Management System to OFIs

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In an effort to curb growing bad debt, the Central Bank of Nigeria has said it will extend its Credit Risk Management System to Other Financial Institutions (OFIs) operating in Nigeria to protect them from bad debtors.

According to the apex bank, this is important following the successful implementation of the credit risk system in other lending institutions operating in Nigeria.

The bank disclosed this in a circular titled ‘Credit Risk Management System: Commencement of enrolment of all Development Finance Institutions, Microfinance Banks, Primary Mortgage Banks and Finance Companies’ and signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, on Monday.

In part, the circular read, “As part of efforts to promote a safe and sound financial system in Nigeria, the CBN introduced the CRMS to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system.

“With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrolment of Other Financial Institutions on the CTMS platform.

“Accordingly, all DFIs, MfBs, PMBs and FCs are required to report all credit facilities (principal and interest) to the CRMs and to update same on monthly basis.

“OFIs shall note the Bank Verification Numbers and Tax Identification Numbers are the only basis for regulatory renditions”.

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Banking Sector

BoI Grows Assets by 78.8% to N1.86 Trillion

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The Bank of Industry Group concluded the 2020 financial year with a 78.8 per cent growth of assets from N1.04tn to N1.86tn between 2019 and 2020.

A statement by the bank on Monday said the increase was driven to a large extent by the successful debt syndication of €1bn and $1bn that were concluded in March and December 2020 respectively.

BoI stated that the group’s financial statement demonstrated resilience and strength, noting that the period had significant challenges in the operating environment on account of the impact of COVID-19 pandemic on the economy.

“It also indicates synergy with the various interventions developed by the Federal Government, the Central Bank as well as other strategic partners towards ameliorating the impact of the pandemic on Nigerian enterprises,” the statement said.

The group’s total equity increased by 14.8 per cent from N293.08bn in the previous year to N336.48bn in 2020.

It added that as a reflection of the adverse impact of the challenging operating environment on growth of new facilities, loans and advances grew marginally in 2020 by 1.3 per cent to N749.84bn from the 2019 position.

The bank explained that this was largely due to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers.

“The bank reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from nine to five per cent per annum for a period of one year and moratorium extension of three months (with a possible extension up to 12 months),” it said.

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Banking Sector

TAJBank Deploys NQR Solution To Ease Customer Transactions

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TAJBank, Nigeria’s non-interest bank, has announced the deployment of the NQR Payment solution, an indigenous Quick Response Code (QRC) by the Nigeria Interbank Settlement Scheme (NIBSS), for merchants and customers as the newest addition to its innovative e-business channels.

The NQR Payment solution is a secure QR-code-based payments and collections platform developed for merchants and customers to receive and make payments for goods and services in a quick, easy, contactless and secure manner.

A statement signed by the Founder/Chief Operating Officer of the bank, Mr. Hamid Joda, indicated that the ingenious solution would further drive TAJBank’s culture of innovation and create a seamless payment experience for its rapidly growing individual and corporate customers in their banking transactions.

“We are excited to have this payment channel introduced into the nation’s financial system as an addition to other innovative solutions we have deployed over the past few months.

This is a proof that, as we have said in our communications signature line, TAJBank’s interest is always in our customers”, Joda enthused.

In his remarks, the non-interest lender’s Chief Marketing Officer/Co-Founder, Mr. Sherif Idi, also maintained that the deployment of the NQR payment solution would revolutionize the e-payment experience and open new frontiers for small, medium and large scale businesses who are major stakeholders of the bank.

Since it commenced operations in the non-interest banking segment of the financial services industry, TAJBank is noted for its impeccable track record of growth and innovation, rendering exceptional quality services to customers.

The lender’s NQR solution is open to all customers of the bank, both merchants and individuals, across all its branches and digital channels globally.

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