Connect with us

Finance

Nigerian Stock Index Rises as Bank Shares Gain

Published

on

Stock Investors
  • Nigerian Stock Index Rises as Bank Shares Gain

Nigerian stocks closed higher on Friday for the second consecutive day, lifted by shares in banking, cement and a consumer goods maker.

But the stock market cumulatively depreciated by 3.35 per cent this week, owing majorly to profit-taking activities by investors following major gains the past weeks.

Reuters reported that the main share index ended up by 1.66 per cent at 36,920 points after bargain hunters returned to take positions in Guaranty Trust Bank Plc and Zenith Bank Plc, two top lenders shunned early in the week over a disappointing interim dividend payout.

GTBank shares rose by 6.47 per cent to close at N39.50, while Zenith Bank gained 6.61 per cent to close at N24.53.

The index of Nigeria’s top 10 banks gained 3.97 per cent to lift the index.

The stock index had dropped to a 16-day low on Wednesday as some investors cashed in profits after recent gains.

The market had rallied for eight consecutive weeks and peaked at a 33-month high last week before profit takers took advantage of the gains.

Other gainers include Dangote Cement, which accounts for a third of the market capitalisation. The cement firm was up by 2.37 per cent to close at N225, FCMB Group rose by 5.36 per cent, PZ Cussons gained 4.99 per cent, while energy company Oando rose by 3.94 per cent.

Meanwhile, after closing positively for five consecutive weeks, the Nigerian bourse slid into the negative territory this week.

Thus, the year-to-date return of the Nigerian Stock Exchange All-Share Index slipped to 37.38 per cent at the close of trading activities for the week, market data on a Friday showed.

Volume of transactions fell by 8.13 per cent, likewise market turnover which declined by 13.27 per cent.

There were 19 gainers and 57 losers in the week.

Fidson Healthcare Plc led the gainers’ chart for the week after appreciating by 9.70 per cent to close at N3.28.

Continental Reinsurance Plc followed on the gainers’ table, adding 6.56 per cent for the five trading days of the week.

These were followed by Universal Press Plc, Berger Paints Plc and GlaxosmithKline Consumer Plc, which respectively appreciated by 6.34 per cent, five per cent and five per cent.

On the other hand, for the whole week, the Cement Company of Northern Nigeria Plc, NEM Insurance Plc, Jaiz Bank Plc, Total Nigeria Plc and Morison Industries Plc emerged the five worst performing stocks, shedding 13.91 per cent, 12.73 per cent, 9.52 per cent, 8.39 per cent and 8.16 per cent, respectively.

The Nigerian stock market, on Thursday, had appreciated by N74bn with Eterna Plc, Mobil Oil Nigeria Plc, Nigerian Avation Handling Company Plc, Cement Company of Northern Nigeria Plc and Cutix Plc emerging as the top losers.

The market closed on a positive note and the NSE ASI advanced by 0.59 per cent to settle year to date return at 35.13 per cent.

Despite Thursday’s gains, there were 15 advancers and 32 losers.

A total of 225.140 million shares valued at N5.479bn exchanged hands in 5,110 deals.

Fidson Healthcare Was said to have led the gainers’ list, increasing by five per cent to close at N3.15. Also on the gainers’ list were May & Baker Nigeria Plc, Flour Mills of Nigeria Plc, Livestock Feeds Plc and Continental Reinsurance Plc, which appreciated by 4.98 per cent, 4.94 per cent, 4.94 per cent and 4.84 per cent, respectively.

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

Published

on

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.

Continue Reading

Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans

Published

on

micro-finance-bank

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.

Continue Reading

Finance

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

Published

on

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.”

Continue Reading

Trending