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Equities Market Rebounds after Three Weeks of Decline



Egypt Stocks
  • Equities Market Rebounds after Three Weeks of Decline

The Nigerian equities market closed last week on a positive note as stocks rebounded after three weeks of decline. Following weeks of rally, the market succumbed to the bears due to profit taking. As a result, the market remained under the control of the bears for three consecutive weeks. However, the bulls resurfaced last week following bargain hunting in some bellwether stocks.

Besides, impressive full year results by leading brewer, Guinness Nigeria Plc and Stanbic IBTC Holdings Plc bolstered investors’ confidence to increase their demand for stocks. Consequently, the Nigerian Stock Exchange (NSE) All-Share Index and market capitalisation appreciated by 1.27 per cent to close the week at 35,957.24 and N12.393 trillion respectively.

Similarly, all other indices finished higher during the week with the exception of the NSE Main Board, NSE Banking, NSE Insurance, NSE Oil/Gas and NSE Industrial Goods Indices that depreciated by 0.24 per cent, 1.08 per cent, 0.10 per cent, 3.77 per cent and 1.01 per cent respectively while the NSE ASeM Index closed flat.

Daily Market Performance

When trading resumed on Tuesday, sentiments remained negative, pushing the down by 0.28 per cent. The depreciation recorded in the share prices of Lafarge Africa, Total, Unilever, GTBank, and UBA was mainly responsible for the lower close. Investors traded 230.03 million shares worth N4.77 billion in 4,188 deals. The three most actively traded sectors were: Financial Services (189.55 million shares), Consumer Goods (24.09 million shares), and Conglomerates (4.74 million shares), while the three most actively traded stocks were: Access Bank (63.29 million shares) UBA (27.61 million shares) and Zenith Bank (17.84 million shares).

In terms of sectoral performance, the NSE Oil & Gas Index recorded the highest decline of 2.99 per cent, followed by the NSE Industrial Goods Index that fell by 2.11 per cent.The NSE Consumer Index shed 0.30 per cent, while the NSE Banking Index went down by 0.06 per cent. On the positive side, the NSE Insurance Index appreciated by 0.13 per cent. Analysts at Afrinvest were, however, bullish that the market would rebound the next day.

“We believe the five days of consecutive negative returns leave some legroom for positioning, as such, we expect the market to close positive in tomorrow’s trading session,” they said.

As expected, the market halted its losing streak on Wednesday with the index rising by 0.58 per cent to close at 35,609.07, pushing the year-to-date to 32.5 per cent. The rebound was propelled by gains in Dangote Cement, Zenith Bank, Nigerian Breweries Plc and Guinness Nigeria.

Similarly, activity level improved as volume and value traded rose 22.5 per cent and 13.6 per cent to 281.8 million shares respectively. A further breakdown of the performance the NSE Oil & Gas Index led sector gainers, up 1.3 per cent as a result of bargain hunting in Seplat that went up by 3.4 per cent.

In the same vein, buy interest in Nigerian Breweries and Guinness Nigeria boosted the NSE Consumer Index 0.8 per cent. Similarly, growth in Zenith Bank and Stanbic IBTC lifted the NSE Banking Index by 0.1 per cent.

On the flip side, despite an uptick in Dangote Cement the NSE Industrial Goods Index closed 0.5 per cent lower. Also, the NSE Insurance Index fell 0.4 per cent.

The stock market sustained its positive performance on Thursday as the index rose by 1.4 per cent to close at 36,112.37, while market capitalisation added N174.8 billion to closed higher at N12.4 trillion.

Guinness Nigeria Plc led the price gainers with 10.2 per cent, trailed by Dangote Cement Plc, which rose by 4.7 per cent.

Investors have increased demand for shares of Guinness following its impressive results for the full year ended June 30, 2017.

Details of the audited showed a revenue of N125.919 billion in 2017, up from N101.973 billion in 2016. Net finance cost increased from N6.763 billion to N7.524 billion, making the brewing to end the year with an operating profit of N10.186 billion, up from N4.415 billion in 2016.

Profit after tax stood at N1.923 billion, hence the directors have recommended a dividend of N963.7 million. The company recommended a dividend of N963.7million for the year ended June 30, 2017, showing an increase of 28 per cent compared with N752.9 million in 2016.

Stanbic IBTC Holdings Plc, which also released an improved results for the half year to June 30, 2017, closed as the third highest price gainer. It chalked up 3.8 per cent. AIICO Insurance Plc, African Prudential Plc, and Dangote Sugar Refinery Plc garnered 3.6 per cent, 3.5 per cent and 3.4 per cent respectively.

Conversely, Seplat Petroleum Development Company Plc led the price losers with 5.0 per cent, trailed by NCR Nigeria Plc with 4.9 per cent. May & Baker Nigeria Plc and Skye Bank Plc shed 4.7 per cent apiece.

However, the bears returned on Friday, leading a decline of 0.44 per cent. But the decline was not enough to offset earlier gains. Hence, the market closed with a weekly gain of 1.27 per cent.

Market Turnover

Meanwhile, market turnover was 887.024 million shares worth N17.450 billion in 16,955 deals, as against 998.973 million shares valued at N11.455 billion that exchanged hands in 13,626 deals the previous week.

The Financial Services Industry maintained its number one spot on the activity chart, accounting for 729.177 million shares valued at N8.816 billion traded in 10,744 deals, thus contributing 82.20 per cent and 50.52 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry trailed with 68.153 million shares worth N6.692 billion in 2,908 deals. The third place was occupied by Conglomerates Industry with a turnover of 32.109 million shares worth N183.098 million in 687 deals.

Trading in the top three equities- Access Bank Plc, Guaranty Trust Bank Plc, Zenith Bank Plc accounted for 320.549 million shares worth N6.909 billion in 2,643 deals.

Also traded during the week were a total of 3,000 units of Exchange Traded Products (ETPs) valued at N31,590.00 executed in one deal compared with a total of 86,063 units valued at N838,754.79 transacted two weeks ago in eight deals.

A total of 8,535 units of Federal Government Bonds valued at N8.660 million were traded last week in 11 deals, compared with a total of 12,244 units valued at N12.374 million transacted the previous week in 11 deals.

Price Gainers and Losers

The price movement chart displayed 28 price gainers higher than the 19 of the previous week, while 38 equities depreciated in price, lower than 48 equities of the previous week. Guinness Nigeria Plc led the price gainers with 27.5 per cent, trailed by Caverton Offshore Support Group Plc with 6.2 per cent. C & I Leasing Plc garnered 6.0 per cent, just as African Prudential Plc and AIICO Insurance Plc chalked up 5.7 per cent and 5.3 per cent respectively. Newrest ASL Nigeria Plc and Dangote Cement Plc appreciated by 4.9 per cent and 4.8 per cent in that order. Other top price gainers included: Redstar Express Plc (4.7 per cent); Conoil Plc (4.6 per cent) and Berger Paints Plc (4.2 per cent).

Conversely, Jaiz Bank Plc and Sterling Bank Plc led the price losers with 7.7 per cent apiece. Lafarge Africa Plc shed 7.3 per cent, while Seplat Petroleum Development Plc and Fidson Healthcare Plc went down by 6.6 per cent and 5.6 per cent respectively.

Other top price losers were: Beta Glass Plc(5.0 per cent), Julius Berger Nigeria Plc, Presco Plc, PZ Cussons Nigeria Plc and Cadbury Nigeria Plc (4.9 per cent apiece).

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


The Africa Digital Inclusion Facility Approves $1.3m Grants for Two Research to Enhance Women’s Digital Access to Loans and Micro-insurance



secured loan

The Africa Digital Inclusion Facility approves grants worth $1.3 million for two research efforts to enhance women’s digital access to loans and micro-insurance.

The African Development Bank has approved two grants for research that will increase African women’s access to a range of digital financial services including loans and micro-insurance.

The grants, for $1 million and $300,000 respectively, will be disbursed through the Africa Digital Financial Inclusion Facility, a blended finance vehicle supported by the Bank, to two financial technology firms, Pula Advisors Kenya Ltd., and M-KOPA Kenya Ltd.

Pula Advisors will use the $1 million for research of social, cultural and economic factors that impact women farmers’ access to micro-insurance in Kenya, Nigeria and Zambia. Research findings will inform the design and implementation of gender-centric insurance products. The project will be undertaken over a 3-year time frame.

“This grant funding will be used to leverage technology to develop innovative and responsive loan and insurance products that can spur productivity and inclusion, especially for our women smallholder farmers and traders.” said Sheila Okiro, the Bank’s Coordinator for ADFI.

The three-year project will have three phases: product development; piloting; and scaling; the outcomes are expected to benefit 360,000 farmers, 50% of them women, as well as boost farm yields by up to 30%. This will also raise incomes and enhance household and national food security.

M-KOPA will use the $300,000 grant funding for research involving 250 women and 250 men in Kenya’s Kisumu, Eldoret and Machakos counties. The company will assess the barriers to and opportunities for women’s access to digital financial services and financial literacy programmes via smartphone, and use the research insights to design a financial services app that is relevant to small-scale women traders.

The project, approved by the Bank on 9 February, 2021, will benefit women with no or limited access to financial services that run small informal businesses. Once developed, the mobile app will be used to pilot small loans to the women traders.

Both projects align with ADFI’s digital products and innovation and capacity building intervention pillars as well as its cross-cutting focus on gender inclusion, a thematic running across all its interventions.

The PULA grant approval meets African Development Bank strategic goals, including the Ten-Year Strategy, two High-5 priority areas—feed Africa and improve the quality of life for Africans— and the financial inclusion strategies of Kenya, Nigeria and Zambia.

The M-KOPA project is aligned with the Bank’s Affirmative Finance Action for Women in Africa (AFAWA) program that seeks to increase access to finance for women.

ADFI is a pan-African initiative designed to accelerate digital financial inclusion throughout Africa, with the goal of ensuring that 332 million more Africans, 60% of them women, gain access to the formal economy. The Facility was formally launched in June 2019 at the Bank’s Annual Meetings in Malabo, Equatorial Guinea. Current ADFI partners are the French Development Agency (AFD); the French Treasury’s Ministry of Economy and Finance; The Government of Luxembourg’s Ministry of Finance; the Bill and Melinda Gates Foundation; and the African Development Bank, which also hosts the fund.

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Banking Sector

FirstBank Boosts Cross Border Payment With FirstGlobal Transfer



FirstBank Boosts Cross Border Payment With FirstGlobal Transfer

First Bank of Nigeria Limited has announced the launch of First Global Transfer (FGT) to promote the international transfer of funds across its subsidiaries in sub-Saharan Africa.

The bank, in a statement, said: “First Global Transfer (FGT) initiative is specifically designed to ensure safe, timely and improved efficiency in the transfer of funds across the network of FirstBank subsidiaries in Africa.

“The FGT is not restricted to FirstBank and FBNBank customers alone but it is also open to every individual resident in the country the funds’ transfer is originating from.

“Intending users of the initiative are to visit any of the bank’s branches in Nigeria or subsidiaries in Africa, which are: FBNBank DRC, FBNBank Ghana, FBNBank Gambia, FBNBank Guinea, FBNBank Sierra-Leone, or FBNBank Senegal to enjoy the service.

“For example, with First Global Transfer, individuals and customers in Sierra-Leone can walk into any FBNBank branch to send money to FirstBank customers in Nigeria as well as FBNBank customers in Gambia, Ghana, DR Congo, Senegal or Guinea.”

Speaking on the initiative, Dr. Adesola Adeduntan, Chief Executive Officer, FirstBank said, “today’s customer is influenced by the technological advancement shaping businesses across various industries and our First Global Transfer (FGT) initiative is one of those advancement created to impact every individual in our host community in Africa, whilst promoting the ease and swift transfer of money from one country to another for business or personal activities.”

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Ecobank To Pay Customers N5 For Every Dollar Received




Ecobank To Pay Customers N5 For Every Dollar Received

Ecobank has implemented the CBN scheme which offers N5 for every Dollar received into domiciliary accounts or as cash over the counter. Korede Demola-Adeniyi; Head, of Consumer Banking, Ecobank Nigeria, who announced this in Lagos stated that the decision is in line with the CBN directive and fully aligns with efforts to encourage the inflow of diaspora remittances into the country.

She noted that the “CBN Naira 4 dollar scheme” is an unprecedented incentive for senders and recipients of international money transfers.

Korede Demola-Adeniyi said that the scheme takes effect from 8th March and will run till 8th May 2021. “Ecobank will pay N5 on every Dollar so beneficiaries will not only get the foreign currency sent from their family and friends abroad, but they will also get extra Naira”, she stated.

Only recently, Ecobank had a first-of-its-kind virtual Diaspora Summit to discuss opportunities for Nigerians living abroad and the various platforms available to assist them with their investment decisions and remittance needs. The event had major players in the remittance space, diaspora audience, government officials and notable stakeholders in attendance.

Further, the Managing Director, Ecobank Nigeria, Patrick Akinwuntan has disclosed that apart from consistent engagement with Nigerians in the diaspora, Ecobank is leveraging its digital technology to make remittances to Nigeria and Africa easy, convenient and affordable.

Mr. Akinwuntan stated that growing evidence has shown a positive relationship between diaspora remittances and economic growth.

“Ecobank will continue to pursue its mandate of helping to enhance the economic development and integration of Africa, through the 33 countries where the bank operates on the continent. Ecobank’s Rapidtransfer and mobile app (Ecobank Mobile) enable Africans, wherever they are, to easily and instantly send money to bank accounts, mobile wallets and agent locations across 33 African countries”, he stated.

Ecobank Nigeria, a member of the Pan African Banking Group is committed to supporting Africans in the diaspora by providing advisory services, remittance solutions, investment options and financial planning schemes. The bank also offers mortgages, treasury bills, capital market instruments, among others.

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