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Investors Lose N311bn, NSE Reviews Market Indices

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  • Investors Lose N311bn, NSE Reviews Market Indices

The equities segment of the Nigerian Stock Exchange pared some of its recent gains on Wednesday, with investors losing N311bn in value on the back of losses by 37 firms led by PZ Cussons Plc.

The NSE All-Share Index fell by 2.61 per cent to close at 33,477.89 basis points, while the market capitalisation of listed equities dropped to N11.576tn from N11.887tn on Tuesday.

PZ Cussons and Skye Bank Plc saw their share prices decline by five per cent each to close at N20.90 and N0.76, respectively.

Cadbury Nigeria Plc shed 4.98 per cent to close at N13.54 per share, while Ecobank Transnational Incorporated and Oando Plc dropped by 4.97 per cent each to close at N14.53 and N7.27 per share, respectively.

The share prices of FBN Holdings Plc and Fidson Healthcare Plc dipped by 4.95 and 4.78 per cent respectively to close at N6.34 and N2.99.

Thirteen stocks recorded price increase on Wednesday, with Neimeth International Pharmaceuticals Plc leading the park.

Neimeth International Pharmaceuticals rose to 9.09 per cent to N0.84 per share, while Conoil Plc gained 4.99 per cent to close at N40.42 per share.

Cement Company of Northern Nigeria, Vitafoam Nigeria Plc and Honeywell Flour Mills Plc appreciated by 4.93 per cent, 4.8 per cent and 4.79 per cent, respectively, to close at N11.27, N2.84 and N1.97 per share.

A total of 508.732 million shares worth N6.396bn in 5,876 deals were traded by investors on the floor of the Exchange on Wednesday.

Meanwhile, the NSE, on Wednesday, announced the expected review of the NSE 30, and the bourse’s six sectoral indices, namely, NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas and the NSE Lotus Islamic Indices.

The indices are normally reviewed bi-annually (June and December) except for NSE Pension index that is reviewed once in the year (December).

“With the review, we will witness the entry/re-entry as well as exit of some major companies. The composition of these indices after the review will be effective on July 1, 2017,” the NSE said.

According to a statement, the NSE-30 and NSE Industrial Indices are modified market capitalisation index with the numbers of included stocks fixed at 30 and 10, respectively, with the stocks selected based on their market capitalisation from the most liquid sectors.

The liquidity is based on the number of times the stock is traded during the preceding two quarters, and the stock must have traded for at least 70 per cent of the number of times the market opened for business in order to be included,

“The Exchange is aware that the number of the stocks included in some of the indices may not be practically suitable for optimal portfolio diversification; however, the numbers would be reviewed as sector conditions change,” it said.

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.

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African Development Bank’s First Virtual Business Opportunities Seminar of 2021, Draws 450 Global Partners and Suppliers

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The African Development Bank hosted its first virtual business opportunities seminar (BOS) of 2021 on 6 and 7 April.

The BOS seminars offer a one-stop shop for companies, civil contractors, manufacturers, consultants, and suppliers from the Bank Group’s regional and non-regional members seeking to provide goods and services to projects or to the Bank.

Held virtually as a result of the ongoing Covid-19 pandemic, delegates were informed about the Bank’s strategy for supporting economic growth, its priority areas, rules and procedures for project and corporate procurement, and ongoing public and private sector operations.

During the sessions staff discussed the sectors that offer opportunities for partners and suppliers: climate change; infrastructure, cities and urban development; industries and trade; finance and SMEs; agriculture; health, human capital, youth, and skills development.

“The Bank’s 2021 Business Opportunities Seminar was an impressive learning experience and an open door to interact virtually with different experts and gain insights into best practices and directions for conducting effective business approaches within the Bank,” said David Andrés Rojas Mejía, Senior Business Development Specialist at Catalonia Trade and Investment Promotion Agency.

Private sector partners contributed richly to the discussion, sharing their experience around partnering and contracting with the Bank. They included Kwame Boate, country director of TechnoServe Inc., (Ghana) and Cletus Kayenwee of the Rural Enterprises Program at the Ghanaian Ministry of Trade, who shared their experience contracting with the Bank on Ghana’s “One District One Factory” Enable Youth Program. The program aims to build the entrepreneurial capacity of graduate youth. Participants also heard from Abdelillah Zenjari, Deputy General Director of TEKCIM. He shared his experience partnering and obtaining a loan of €45 million to build a cement factory with a capacity of 1.4 million tons in the region of d’El Jadida in Morocco.

Over the years, the seminars have hosted approximately 2,500 delegates from 55 countries, with an average of 75% of delegates from non-regional member countries and 90% from the private sector.

For the Bank, the seminars increase interest in Bank-financed projects and enhance competition, thereby promoting higher-quality offers that deliver optimal value for money for its regional member countries.

“The sessions have also helped me to understand how to find opportunities for my firm by being better able to navigate your procurement framework and processes,” said Dede Watkin, Business Development Manager at Beale &Co, a participant.

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Nirsal: CBN Reopens Application for N50 Billion COVID-19 Loan for Households and Small Businesses

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The Central Bank of Nigeria has started receiving fresh applications for N50 billion COVID-19 loan for small businesses and households affected by the pandemic.

The CBN through Nirsal Microfinance Bank announced it has reopened its portal for households and Micro Small and Medium Enterprises (SMEs) affected by COVID-19 to access up to N25 million.

Bashir Ahmad, the Personal Assistant to President Muhammadu Buhari on New Media, disclosed this on March 10, 2021 via his Twitter handle.

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Sub Saharan Africa Mergers and Acquisition Transactions Totalled US$ 6.1 Billion in Q1 2021

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Refinitiv today released the investment banking analysis for the Sub-Saharan African for the first quarter of 2021. According to the report, an estimated US$99.3 million worth of investment banking fees were generated in Sub-Saharan Africa during the first quarter of 2021, down 39% from the same period in 2020 and the lowest first quarter total since 2014. 

While debt capital markets underwriting fees doubled to US$47.1 million, the highest first quarter total since our records began in 1980, fees from equity capital markets underwriting, M&A advisory and syndicated lending all declined from the first quarter of 2020.  Equity fees declined 42% to US$21.8 million, while syndicated lending fees declined 74% to US$15.0 million. 

Advisory fees earned in the region from completed M&A transactions reached US$15.5 million, down 65% from last year to the lowest first quarter total since 2005. Seventy-two percent of all Sub-Saharan African fees were generated in South Africa during the first quarter of 2021, and 39% were earned from deals in the financial sector. B Riley Financial Inc. earned the most investment banking fees in the region during the first quarter of 2021, a total of US$19.8 million or a 20% share of the total fee pool.

MERGERS & ACQUISITIONS

The value of announced M&A transactions with any Sub-Saharan African involvement reached US$6.1 billion during the first three months of 2021, almost level with the value recorded during the same period in 2020, and a five-year low.  The number of deals declined 14% over the same period to the lowest first quarter tally since 2014.

M&A involving a Sub-Saharan African target increased 73% year-on-year to US$4.3 billion during the first quarter of 2021.  Domestic deals increased 67% from last year to US$2.5 billion, while inbound deals, involving an acquiror outside of Sub-Saharan Africa, increased 83% to US$1.8 billion.  Meanwhile, Sub-Saharan African outbound M&A totalled US$721.4 million during the first quarter of 2021, down 66% year-on-year to the lowest first quarter level in six years.

The Zambian Government, through its mining investment arm ZCCM Investment Holdings, acquired the Mopani Copper Mines for US$1.5 billion in January.  The acquisition is the largest deal in the region to be announced so far during 2021.

With advisory work on deals worth a combined U$668.5 million, BofA Securities held the top spot in the financial advisor ranking for deals with any Sub-Saharan African involvement during Q1 2021.

EQUITY CAPITAL MARKETS

Sub-Saharan African equity and equity-related issuance reached just US$18.4 million during the first quarter of 2021, the lowest first quarter total since 1999.  Only Nigeria payments processing firm eTranzact raised new equity funds from its follow-on offering.  There were no initial public offerings. PAC Capital, Meristem Securities and Standard Bank Group share first place in the Sub-Saharan African ECM underwriting league table during the first quarter of 2021.

DEBT CAPITAL MARKETS

Sub-Saharan African debt issuance totalled US$12.1 billion during the first quarter of 2021, up 36% from the value recorded during the same period in 2020 and the highest first quarter total since 2018.  The number of issues declined 6% over the same period.  With Ghana’s government’s Eurobond raising US$2.9 billion and The African Development Bank’s $2.5 billion 5-year Benchmark bond, March 2021 saw more proceeds raised from bond issuance in Sub-Saharan Africa than any other month since May 2018, a total of US$7.4 billion.  Government & Agency issuance accounted for 64% of proceeds raised during the first quarter of 2021. Standard Chartered took the top spot in the Sub-Saharan African bond book runner ranking during the first quarter of 2021, with US$1.4 billion of related proceeds, or an 11.5% market share.

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