Finance

Stock Market Rebounds, Gains 2.5% on Renewed Optimism

Published

7 years ago

July 17, 2017

Nigerian Exchange Limited - Investors King

Stock Market Rebounds, Gains 2.5% on Renewed Optimism

The stock market shrugged losses of the previous week and closed 2.47 per cent higher last week as the bulls resurged to take control of the market. Trading throughout the week was broadly bullish as the market closed positive on all the trading sessions.

The bulls resurged with investors taking position in value stocks – especially the banking stocks – ahead of the half year earnings season.

There was a renewed optimism among investors. As a result, the Nigerian Stock Exchange (NSE) All-Share Index rose by 2.47 per cent to close at 33,261.66, pushing the month-to-date growth to 0.44 per cent and year-to-date growth to 23.77 per cent.

Apart from the NSE ASI that rose 2.47 per cent, all other major sectoral indices finished higher with the exception of the NSE ASeM index that closed flat.

The NSE Banking Index appreciated by 6.1 per cent to lead the others.

The NSE Industrial Goods Index went up by 2.94 per cent, while the NSE Oil & Gas Index garnered 2.31 per cent. The NSE Insurance Index closed 0.88 per cent higher, while the NSE Consumer Index gained 0.71 per cent.

Daily Market Performance

When trading resumed on Monday, the market remained bullish as bargain hunting activities in the banking stocks assisted to sustain the bull run. Specifically, the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.48 per cent to close at 32,614.60, while market capitalisation added N53.6 billion to close at N11.2 trillion.

Investors swooped on banking stocks, taking position ahead of half year corporate results announcement. Out of the 26 price gainers, 12 were banking stocks. United Bank for Africa Plc, Access Bank Plc, Unity Bank Plc appreciated by 4.9 per cent apiece, while Ecobank Transnational Incorporated garnered 3.8 per cent.

Zenith Bank Plc chalked up 3.4 per cent, just as Diamond Bank Plc and FCMB Holdings Plc went up by2.4 per cent each. Fidelity Bank Plc and FBN Holdings Plc gained 2.3 per cent apiece, while Wema Bank Plc, Jaiz Bank Plc and Guaranty Trust Bank Plc appreciated by 1.8 per cent, 1.5 per cent and 0.06 per cent in that order.

However, Flour Mills of Nigeria Plc recorded the highest price gainer for the day, rising by 9.7 per cent. Redstar Express Plc and C & I Leasing Plc followed with 5.0 per cent apiece.

Conversely, 15 stocks depreciated led by Union Bank of Nigeria Plc with 8.8 per cent. University Press Plc and Skye Bank Plc trailed, shedding 5.0 per cent apiece.

A.G Leventis Nigeria Plc and Vitafoam Nigeria Plc went down by 4.8 per cent each, just as AXA Mansard Insurance Plc, Cadbury Nigeria Plc and John Holt Plc declined by 4.7 per cent, 4.0 per cent and 3.5 per cent respectively.

A look at the performance across sectors showed that three appreciated while two declined. The NSE Banking Index led the sectoral performance with 3.0 per cent.

The NSE Oil &Gas Index trailed with a gain of 0.7 per cent due to positive sentiment towards Oando Plc (+4.8 per cent). Similarly, the NSE Industrial Goods Index added 0.3 per cent as a result of price appreciation in Meyer Plc (+4.3 per cent).

On the negative side, the NSE Consumer Goods Index shed 0.7 per cent on the back losses suffered by Nigerian Breweries (-0.6 per cent). The NSE Insurance Index fell by 0.3 per cent following depreciation in the shares of AXA Mansard (-4.8 per cent).

The market continued to rally on Tuesday with the index adding 0.65 per cent to close at 32,827.98. The appreciation recorded in the share prices of GTBank, UBA, Access Bank, Dangote Cement, and Zenith Bank Plc boosted the performance.

Investors staked N2.03 billion on 218.76 million shares. The most actively traded sectors were: Financial Services (171.42 million shares, Conglomerates (10.95 million shares), and Consumer Goods (9.27 million shares), while the three most actively traded stocks were: UBA (35.26 million shares), Niger Insurance (19.99 million shares) and Zenith Bank (18.27 million shares).

Performance across sectors was positive as all indices trended northwards. The NSE Banking Index advanced the most, adding 2.0 per cent on the back of sustained interest in GTBank and Zenith Bank. The NSE Industrial Index appreciated by 0.3 per cent, while the NSE Consumer Goods Index gained 0.2 per cent.

The sustained bullish run for three days pushed the market capitalisation of the Nigerian bourse by N180 billion, rising from N11.187 trillion on Monday to N11.367 trillion on Wednesday.

Analysts at Meristem Securities Limited had said “the gain in the market (yesterday) could be attributed to the continued share price appreciation of some banking sector heavyweights, as well as the slight gains recorded on some other large cap counters.”

In all, 29 stocks appreciated on Wednesday, while 15 depreciated. Seven-Up Bottling Company Plc recorded the highest price gain of 8.8 per cent close at 89.23, trailed by Neimeth International Pharmaceuticals with 7.1 per cent. CAP Plc and Linkage Assurance chalked up 5.0 per cent apiece, while Ecobank Transnational Incorporated garnered 4.9 per cent.

N.E.M Insurance Plc and Avon Crowncaps Plc added 4.8 per cent and 4.6 per cent respectively. Learn Africa Plc, May & Baker Nigeria Plc and Eterna Oil Plc went up by 3.6 per cent, 3.1 per cent, and 2.6 per cent in that order.

On the bears’ side, University Press Plc led the price losers with 9.6 per cent to close at N2.92 per share. Champion Breweries Plc trailed with 7.5 per cent, while United Capital Plc shed 7.2 per cent. Conoil Plc and Capital Hotel Plc declined by 5.0 per cent and 4.8 per cent respectively.

The market followed the bullish pattern on Thursday and Friday, 0.8 per cent and 0.04 per cent respectively to end the week positively.

Market Turnover

In terms of market turnover, investors staked N13.993 billion on 1.272 billion shares in 19,385 deals last week, up from N12.295 billion invested in 1.061 billion shares in 18,847 deals the previous week.

However, the Financial Services Industry remained the most active leading the activity chart with 1.086 billion shares valued at N9.743 billion traded in 11,229 deals, thus contributing 85.33 per cent and 69.63 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 44.786 million shares worth N1.536 billion in 2,853 deals. The third place was occupied by Conglomerates Industry with a turnover of 38.104 million shares worth N75.759 million in 727 deals.

Trading in the top three equities, United Bank for Africa Plc, FBN Holdings Plc and Zenith International Bank Plc, accounted for 505.388 million shares worth N5.454 billion in 4,009 deals, contributing 39.73 per cent and 38.98 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 25,540 units of Exchange Traded Products (ETPs) valued at N2.646 million executed in 10 deals compared with a total of five units valued at N484.85 transacted the previous week in one deal.

Similarly, a total of 2,977 units of Federal Government Bonds valued at N2.946 million were traded last week in 11 deals, compared with a total of 358 units valued at N344,610.97 transacted the previous week in seven deals.

Price Gainers and Losers

Meanwhile, 48 equities appreciated in price during the week, higher than the 16 equities of the previous week, while 27 equities depreciated in price, lower than 51 equities of the previous week.

Neimeth International Pharmaceuticals Plc led the price gainers with 24.6 per cent, followed by Unity Bank Plc which chalked up 19.6 per cent. Forte Oil Plc appreciated by 15.3 per cent, just as Avon Crowncaps & Containers Plc gained 14.5 per cent. N.E.M Insurance Plc, Ecobank Transnational Incorporated rose 14.1 per cent and 14.0 per cent respectively.

Other top price gainers were: Mobil Oil of Nigeria Plc (9.9 per cent); Flour Mills of Nigeria Plc (9.7 per cent); Seven-Up Bottling Company of Nigeria Plc (8.8 per cent); and Access Bank Plc (8.4 per cent).

On the flipside, Conoil Plc led the price losers, shedding 17.4 per cent, trailed by University Press Plc 14.1 per cent. Champion Breweries Plc, Union Bank Plc and Jaiz Bank Plc went down by 12.2 per cent, 9.9 per cent and 9.0 per cent in that order.

Presco Plc declined by 4.9 per cent, just as Capital Hotel Plc, A.G Leventis Nigeria Plc and B.O.C Gases Plc closed 4.8 per cent lower apiece.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Banking Sector

UBA Grows Interest Income Jump by 169% to N1.799 Trillion

Published

2 days ago

October 21, 2024

Samed Olukoya

United Bank for Africa, Nigeria’s leading financial institution with operations across the African continent, on Monday reported a 169.9% jump in interest income from N666.291 billion recorded in the first nine months of 2023 to N1.799 trillion in the nine months through September 2024.

In the financial statement obtained by Investors King, the lender’s interest expense inched slightly higher to N695.571 billion, 211.6% from N223.209 billion filed in the corresponding period of 2023.

Growth was broad-based as net interest income rose by 149% from N443.082 billion in 2023 to N1.103 trillion in 2024 while net fee and commission income stood at N233.853 billion, up 105% from N114.286 billion in 2023.

The bank’s total non-interest income moderated slightly to N435.840 billion. However, operating income improved by 51.25% from N1.017 trillion to N1.539 trillion.

Similarly, net operating income after impairment loss on loans and receivables appreciated 62.16% to N1.416 trillion.

Profit before tax rose by N101.392 billion to N603.483 billion in September 2024.

Speaking on the strong performance of the company in the first half (H1) of the year, Oliver Alawuba, the Group Managing Director/CEO said as of H1 2024, which constitutes the majority of the current performance, the economic environment remained challenging across the regions where we operate.

High inflation, rising debt levels, increasing interest rates, and tighter monetary policies have created significant pressure on economies globally. Despite these headwinds, our Bank has demonstrated resilience.

In H1 2024, UBA Group delivered strong double-digit growth across high-quality and sustainable revenue streams. This performance reflects our disciplined execution of strategic goals, focusing on balance sheet expansion, transaction banking, and digital banking businesses across our markets.

Profit before Tax: We achieved a robust Profit Before Tax of N401.6 billion, reflecting our ability to manage risks effectively amidst macroeconomic volatility.
Customer Deposits: Our deposits grew by 34%, from N17.4 trillion at year-end 2023 to 2 trillion in H1 2024, demonstrating the trust and loyalty of our customers.
Total Assets: We saw a 37% growth in total assets, reaching N28.3 trillion, up from N20.7 trillion at FYE 2023. This growth was driven by strong customer relationships and our ability to capitalize on opportunities across geographies.
Net Interest Income: Our intermediation business posted impressive growth, with net interest income expanding by 143% year-on-year to N675 billion, further underlining the strength of our core banking operations.
Digital Banking & Payments: Digital Banking income surged by 107.8% YoY to N106 billion, while funds transfer and remittance fees rose 188.7% and 228%, respectively. We continue to lead in digital banking and payment solutions, helping drive financial inclusion across Africa.
Trade Facilitation: Income from trade transactions grew 83% to N18 billion as we strengthened our role in facilitating intra-regional and international trade.

Our strategy of investing in technology, innovation, and data analytics continues to yield significant returns, positioning us as a leader in digital transformation.

Finance

FAAC Distributes N1.298trn to FG, States, LGCs

Published

5 days ago

October 18, 2024

Iyanuoluwa Martins

The Federal Accounts Allocation Committee (FAAC) has shared N1.298 trillion among the Federal Government, states, and Local Government Councils (LGCs) from the revenue of September 2024.

A communique issued at the end of FAAC meeting for October held on Thursday in Abuja said N1.298 trillion total distributable revenue comprised distributable statutory revenue of N124.716 billion, and distributable Value Added Tax (VAT) revenue of N543.518 billion.

It also comprised Electronic Money Transfer Levy (EMTL) revenue of N18. 445 billion, Exchange Difference revenue of N462.191 billion and Augmentation of N150.000 billion.

It said that a total revenue of N2.258 trillion was available in the month of September.

“Total deduction for cost of collection was N80.993 billion, while total transfers, interventions and refunds was N878.946 billion,” it said.

According to the communiqué, gross statutory revenue of N1.043 trillion was received in September 2024, which was lower than the sum of N1.221 trillion received in August by N177.426 billion.

It said that gross revenue of N583.675 billion was available from VAT in September, higher than the N573.341 billion available in the month of August by N10.334 billion.

“From the N1.298 trillion total distributable revenue, the Federal Government received a total sum of N424.867 billion, and the state governments received a total sum of N453.724 billion.

“The LGCs received a total sum of N329.864 billion and a total sum of N90.415 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

On the N124.716 billion statutory revenue, the communiqué said that the Federal Government received N43.037 billion and the state governments received N21.829 billion, while the LGCs received N16.829 billion.

It said that the sum of N43.021 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

“From the N543.518 billion VAT revenue, the Federal Government received N81.528 billion, the state governments received N271.759 billion and the LGCs received N190.231 billion,” it said.

It said that in September, Oil and Gas Royalty, Excise Duty, EMTL and CET Levies increased considerably while VAT and Import Duty increased marginally.

It added that Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and others recorded significant decreases.

Finance

Former AGF, EFCC Opt For Plea Bargain Settlement in Alleged N1.6bn Fraud Case

Published

1 week ago

October 15, 2024

Ugwoke Ogbodo

The Economic and Financial Crimes Commission (EFCC) has informed a Federal High Court sitting in Abuja of its plan to settle out of court in a subsisting N1.6 billion fraud matter against a former acting Accountant-General of the Federation (AGF), Anamekwe Nwabuoku, pending before the court.

Counsel to the anti-graft body, Ogechi Ujam, informed the presiding judge, Justice James Omotosho upon resumed hearing on Monday of its resolve to opt for plea bargain agreement with the defendant.

When the matter was called, Ujam told the court that on the last adjourned date, Nwabuoku and his co-defendant, Felix Nweke, had submitted proposal for settlement out of court.

She said the parties in the charge had agreed and that the agreement had been submitted to the EFCC’s Chairman, Ola Olukoyede, for approval.

The lawyer to the EFCC then asked the court for a date to file the agency’s plea bargain agreement and amend the charge of the defendants.

In the same vein, Nwabuoku’s lawyer, Isidal Udenko, and Emeka Onyeaka, who represented Nweke, also admitted opting for a plea bargain.

Justice Omotosho subsequently adjourned the matter till December 2 for the adoption of a plea bargain agreement.

Recall that the anti-graft agency had preferred an 11-count money laundering charge against the duo.

Nwabuoku and Nweke, a former Deputy Director in the Ministry of Defence, are being prosecuted for alleged money laundering offences to the tune of N1.6 billion.

While Nwabuoku is the 1st defendant in the charge marked: FHC/ABJ/CR/240/24 dated May 20 and filed May 27 by Ekele Iheanacho, Nweke is the 2nd defendant.