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Nigerian Stock Index Rises as Bank Shares Gain

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Nigerian Exchange Limited - Investors King
  • 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.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Banking Sector

Ecobank Pays Off $500 Million Eurobond

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Ecobank - Investors King

Ecobank Transnational Incorporated (ETI) has announced the successful repayment of its $500 million Eurobond.

The Eurobond, issued in April 2019 with a coupon rate of 9.5%, matured on April 18, 2024, and was listed on the London Stock Exchange.

The repayment, totaling $524 million inclusive of principal and interest, underscores Ecobank’s commitment to financial prudence and investor confidence.

The bond garnered substantial support from a diverse group of global investors, including development banks, FMO, and Proparco, serving as anchor investors.

Mr. Ayo Adepoju, Ecobank’s Group CFO, emphasized the significance of the inaugural bond in broadening the institution’s investor base and enhancing its visibility in global capital markets.

Despite challenges in the operating environment, such as disruptions in the global supply chain and financial markets, Ecobank has demonstrated resilience through robust liquidity, a solid balance sheet, and effective leadership.

This repayment marks Ecobank’s commitment to fulfilling its financial obligations and maintaining strong relationships with investors.

While this Eurobond repayment closes a significant chapter, it also reflects Ecobank’s ongoing efforts to navigate challenges and sustain its position as a leading financial institution in Africa.

As Ecobank clears this debt, it reinforces its reputation for financial stability and prudent management, setting a positive trajectory for future growth and continued success in the dynamic global financial landscape.

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SEC to Guard Against Illicit Funds Influx Amid Banking Recapitalisation

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Securities and Exchange Commission

In response to the recent banking recapitalization exercise announced by the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) has reiterated its commitment to safeguarding the integrity of the capital market against the influx of illicit funds.

This announcement came during a symposium organized by the Association of Capital Market Academics of Nigeria, where the Executive Director (Operations) of SEC, Dayo Obisan, addressed stakeholders on the implications of the banking sector recapitalization for the Nigerian capital market.

Obisan expressed the commission’s determination to collaborate with stakeholders to prevent the entry of laundered funds into the capital market.

He stressed the need for fund verification exercises to ensure transparency and accountability in capital inflows.

While acknowledging that fund verification is not typically within SEC’s purview, Obisan stated the commission’s willingness to collaborate with other regulators to prevent the entry of illicit funds into the market.

He said it is important to engage institutions such as the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) in verifying the legitimacy of funds entering the market.

Obisan also announced regulatory engagements aimed at enhancing the quality of filings and ensuring compliance with anti-money laundering regulations. These engagements seek to streamline the application process and mitigate the risk of illicit fund inflows from the onset.

Meanwhile, the President of the Chartered Institute of Stockbrokers, Oluwole Adeosun, maintained that the capital market can support the fresh capitalisation exercise.

He said, “The market is able and has expanded in the last ten years to be able to withstand any challenges with this capital raising exercise. It is important to know that investors have started to position themselves in the stocks of Tier 1 banks with the announcement of the planned recapitalisation last year.”

Adeosun also called on the banks to consider other options beyond the right issues, as had been seen in recent days in the sector, given the size of the funds needed to be raised as well as to bring in a fresh set of investors into the market.

“There should be more than a rights issue. We believe that some of them should go by private offer and public offer because the capital is huge so that we can bring in more shareholders into the market. We believe it is another opportunity for Gen Zs and millennial investors to come into the market.

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Nigerian Ports Authority Secures $700m Loan from Citibank for Lagos Ports Rehabilitation

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Nigerian ports authority

The Nigerian Ports Authority (NPA) has successfully secured a $700 million loan from Citibank to facilitate the rehabilitation of the Lagos ports.

The finance was facilitated by the UK Export Finance to revitalize the Apapa and Tincan Island Ports, two pivotal gateways for maritime trade in Nigeria.

The announcement was made during a signing ceremony held in Lagos, marking a pivotal moment in Nigeria’s efforts to modernize its port infrastructure.

Mohammed Bello-Koko, the Managing Director of the NPA, expressed optimism regarding the prompt commencement of the reconstruction efforts following the finalization of the funding agreement.

The rehabilitation project is expected to address longstanding challenges faced by the Apapa and Tincan Island Ports, including congestion, inadequate infrastructure, and operational inefficiencies. By modernizing these key maritime hubs, Nigeria aims to bolster its trade capabilities, enhance port efficiency, and stimulate economic growth.

Speaking at the ceremony, Bello-Koko highlighted the strategic significance of the Citibank Facility, citing its favorable terms and affordable interest rates as key advantages for the NPA.

Bello-Koko outlined the NPA’s broader strategy to upgrade port facilities beyond Lagos, with discussions underway to secure additional funding for the enhancement of Eastern Ports such as Calabar, Warri, Onne, and Rivers Ports, as well as the reconstruction of Escravos Breakwater.

The collaboration between the NPA and Citibank underscores the importance of public-private partnerships in driving infrastructural development.

Ireti Samuel-Ogbu, Managing Director of Citibank Nigeria Limited, reaffirmed the bank’s commitment to supporting the NPA and the Federal Government in bridging the infrastructural gap.

Samuel-Ogbu commended the NPA’s strategic initiative and underscored Citibank’s dedication to facilitating the project’s success.

 

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