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Equities Market Sheds N326bn on Weak investor Sentiments

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Nigerian stock market - Investors King
  • Equities Market Sheds N326bn on Weak investor Sentiments

Contrary to expectations that the gains recovery witnessed in the market the previous week would be sustained last week, the equities slipped back into the bears’ territory on weak investor sentiments. In the absence of any major positive news and investors’ continued sell-off to meet obligations of school fees payment, the market shed N325.5 billion.

Specifically, the Nigerian Stock Exchange (NSE) All-Share Index fell by 2.65 per cent to close at 35,005.57, while market capitalisation ended at N12.068 trillion. Similarly, all other indices finished lower during the week with the exception of NSE Oil/Gas index that rose by 0.17 per cent.

Daily Market Performance

Trading at the stock market resumed for week on bearish note with the NSE ASI depreciating by 0.81 per cent to close at 35,664.94, while market capitalisation closed lower at N12.29 trillion.

The depreciation recorded in the share prices of Dangote Cement, Flour Mills, GTBank, Nestle, and Dangote Sugar caused the negative performance witnessed on Monday. Also, the value of trading fell by 29.51 per cent as investors committed N2.17 billion on 114.76 million shares in 3,232 deals.

The three most actively traded sectors were: Financial Services (78.71 million shares), Construction/Real Estate (10.39 million shares), and Consumer Goods (7.98 million shares), while the three most actively traded stocks were: Zenith Bank (19.83 million shares), Access Bank (12.06 million shares) and UAC Property (10.38 million shares).

The market extended its loss to Tuesday as the index depreciated further by 0.75 per cent to close at 35,397.52, compared with the depreciation of 0.81 per cent recorded the previous day.

Again, the downward trend stemmed from losses recorded in the share prices of Dangote Cement, Access Bank, FBN Holdings, Nestle, and Lafarge Africa Plc.

However, the value of shares traded improved, jumping by 165 per cent from N2.17 billion to N5.77 billion staked on 373.49 million shares in 4,193 deals.

The Financial Services sector led the activity chart, accounting for 314.35 million shares, followed by Industrial Goods with 19.73 million shares, while Consumer Goods sector recorded 14.49 million shares.

The most three most actively traded stocks were: Diamond Bank (130.72 million shares), GTBank (50.14 million shares) and Zenith Bank (39.30 million shares).

A further analysis of the market performance on Tuesday showed that all sectoral indicators closed negatively save for the NSE Oil & Gas Index that appreciated by 2.1 per cent. Losses in Nestle (-4.9 per cent) and Nigerian Breweries Plc (-2.4 per cent) impacted the NSE Consumer Goods Index to close 2.2 per cent lower. The NSE Industrial Goods Index dipped 1.9 per cent on account of declines in Dangote Cement (-0.5 per cent) and Lafarge Africa Plc (-3.8 per cent). Similarly, the NSE Insurance Index and the NSE Banking Index shed 1.5 per cent and 0.6 per cent respectively.

The losing streak was halted on Wednesday on bargaining hunting in shares of bellwether stocks. Consequently, appreciated by 0.19 per cent to close at 35,464.34. Market capitalisation appreciated by same margin to close higher at N12.22 trillion.

Investors traded 119.89 million shares worth N1.74 billion in 3,015 deals. The most actively traded sectors were: Financial Services (84.77 million shares), Consumer Goods (11.48 million shares), and Oil and Gas (7.68 million shares).

The three most actively traded stocks were: Access Bank (13.88 million shares), Zenith Bank (12.22 million shares) and Fidelity Bank (11.40 million shares).

The market sustained its positive performance for the second day on Thursday as the NSE ASI appreciated by 0.55 per cent to close at 35,660.044. Although the 22 stocks declined in value and 18 appreciated, the gain posted by Dangote Cement Plc made the market to remain in the bulls’ territory. While the market capitalisation added N70 billion to close higher at N12.22 trillion, Dangote Cement accounted for N40 billion. The stock appreciated by 2.4 per cent to close at N213.99 per share.

The leading cement manufacturing firm had on Wednesday confirmed that it had made moves to acquire the entire share capital of PPC Limited, which is South Africa’s leading cement firm.

In a notification to the NSE, the board of directors of Dangote Cement disclosed it had communicated its interest to acquire the entire share capital of PPC to the board of directors of the South Africa’s firm.

But the Dangote Cement explained that the acquisition talks are still at the preliminary stage and the transaction remains a potential transaction, promising to publish further details.

Meanwhile, Okomu Oil Palm Plc led the price gainers with 5.7 per cent, trailed by Jaiz Bank Plc with 4.4 per cent. C & I Leasing Plc chalked up 4.3 per cent, while Newrest ASL Nigeria Plc and Sterling Bank Plc followed with 4.0 per cent apiece. NEM Insurance Plc went up by 3.5 per cent, just as NPF Microfinance Bank Plc garnered 3.5 per cent.

Conversely, Neimeth International Pharmaceuticals Plc led the price losers with 8.4 per cent. Conoil Plc and Unilever Nigeria Plc trailed by 5.0 per cent each, while Oando Plc and First Aluminium Plc 4.9 per cent and 3.7 per cent respectively.

However, the market on Friday reversed all gains recorded during the previous two trading sessions with the NSE Index shedding 1.84 per cent. As a result, the market declined by 2.65 per cent for the week.

Market Turnover

In terms of market turnover, a total turnover of 896.618 million shares worth N15.368 billion in 17,048 deals were traded last week, up from 887.024 million shares valued at N17.450 billion that exchanged hands the previous week in 16,955 deals.

But the Financial Services Industry maintained the number one spot on the activity chart with 708.046 million shares valued at N7.793 billion traded in 9,164 deals, thus contributing 78.97 per cent and 50.71 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 56.502 million shares worth N5.509 billion in 3,414 deals. The third place was occupied by Conglomerates Industry with a turnover of 32.439 million shares worth N106.687 million in 744 deals.

Diamond Bank Plc, Zenith Bank Plc, Guaranty Trust Bank Plc accounted for 336.181 million shares worth N5.680 billion in 2,936 deals.

Also traded during the week were a total of 1,265 units of Exchange Traded Products (ETPs) valued at N145,720.20 executed in eight deals compared with a total of 3,000 units valued at N31,590.00 transacted the previous week in one deal.

Similarly, a total of 5,290 units of Federal Government Bonds valued at N5.030 million were traded this week in 15 deals, compared with a total of 8,535 units valued at N8.660 million transacted last week in 11 deals.

Price Gainers and Losers

Meanwhile, 23 equities appreciated in price during the week, lower than the 28 of the previous week, while 45 equities depreciated in price, higher than 38 equities of the previous week. N.E.M Insurance Plc led the price gainers with 19 per cent, trailed by C & I Leasing Plc with 12.2 per cent. International Breweries Plc chalked up 9.5 per cent, just as Newrest ASL Nigeria Plc and UAC Nigeria Plc chalked up 9.0 per cent and 5.8 per cent in that order.

Transcorp Plc garnered 5.5 per cent and Okomu Oil Palm Plc added 5.5 per, while Seplat and Cutix Plc gained 5.0 per cent each. Transcorp Hotels Plc 4.9 per cent lower.

Conversely, Neimeth International Pharmaceuticals Plc led the price losers with 15.6 per cent. Skye Bank Plc trailed with a decline of 11.8 per cent. May & Baker Nigeria Plc shed 10.6 per cent, just as Flour Mills of Nigeria Plc and Linkage Assurance Plc declined by 7.8 per cent.

Other top price losers included: Honeywell Flour Mills Plc(7.3 per cent); Oando Plc (7.0 per cent);Presco Plc (6.9 per cent); Lafarge Africa Plc (5.2 per cent) and Unity Bank Plc (5.2 per cent).

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

Ebenezer Onyeagwu Caps a Stellar Tenure With Banking CEO of The Year in Africa in The International Banker Awards 2024 For The Second Consecutive Year

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The Group Managing Director/Chief Executive Officer of Zenith Bank Plc, Dr. Ebenezer Onyeagwu, has been named the ‘Best Banking CEO of the Year in Africa’ at the International Banker 2024 Banking Awards, retaining this title for the second consecutive year.

This award, published in the Spring 2024 issue of International Banker Magazine, United Kingdom, coincides with Dr.

Onyeagwu’s completion of his five-year tenure as Group Managing Director/Chief Executive Officer on May 31, 2024.

Speaking on receiving the award, Dr. Onyeagwu expressed his gratitude to the publishers of International Banker for the honour.

He stated, “It is indeed an honour to be recognised as the ‘Best Banking CEO of the Year in Africa’ for a second consecutive year. This award is a testament to our team’s collective efforts and our commitment to innovation, growth, and delivering value to our customers and stakeholders. It also reflects our dedication to sustainability and high ethical standards, which are integral to our overall strategy. I am immensely proud of our accomplishments and look forward to future opportunities for the bank as I hand over the baton to my successor and begin the mandatory regulatory cooling-off period.”

Dr. Onyeagwu dedicated the award to the Founder and Chairman of Zenith Bank Plc, Dr. Jim Ovia, CFR, for his mentorship, which was crucial to his success as Group Managing Director/CEO; to the bank’s management team and staff for their unwavering commitment over the past five years; and to the bank’s customers for their loyalty.

Throughout his distinguished tenure, Dr. Onyeagwu has received multiple awards, including Bank CEO of the Year (2019, 2023) by Champion Newspaper, Bank CEO of the Year (2020–2023) by BusinessDay Newspaper, CEO of the Year (2020 and 2021) – SERAS Awards, and CEO of the Year (2022) – Leadership Newspaper, and Banking CEO of the Year, Africa (2023) – International Banker.

Appointed as the Group Managing Director/Chief Executive Officer on June 1, 2019, as part of Zenith Bank’s succession planning strategy, Dr. Onyeagwu has led the bank to achieve significant milestones in financial performance, financial inclusion, corporate governance, and sustainability.

These achievements have earned the bank numerous local and international awards, including being named Best Bank in Nigeria for the fourth time in five years from 2020 to 2022 and in 2024 by the Global Finance World’s Best Banks Awards; Best Bank for Digital Solutions in Nigeria by the Euromoney Awards 2023; being listed in the World Finance Top 100 Global Companies in 2023; and being recognised as the Number One Bank in Nigeria by Tier-1 Capital for the 14th consecutive year in the 2023 Top 1000 World Banks Ranking published by The Banker Magazine.

Zenith Bank has also been honoured as Best Commercial Bank in Nigeria for three consecutive years from 2021 to 2023 by the World Finance Banking Awards; Best Corporate Governance Bank in Nigeria by the World Finance Corporate Governance Awards 2022 and 2023; Bank of the Year (Nigeria) by The Banker’s Bank of the Year Awards in 2020 and 2022; and Best in Corporate Governance Financial Services Africa for four successive years from 2020 to 2023 by Ethical Boardroom.

Other recognitions include Most Sustainable Bank in Nigeria at the International Banker 2023 Banking Awards, Best Commercial Bank in Nigeria, and Best Innovation in Retail Banking in Nigeria at the International Banker 2022 Banking Awards.

Additionally, Zenith Bank was named the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021; Bank of the Year 2023 and Retail Bank of the Year for three consecutive years from 2020 to 2022 at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards; Bank of the Decade (People’s Choice) at the ThisDay Awards 2020; Bank of the Year 2021 by Champion Newspaper; Bank of the Year 2022 by New Telegraph Newspaper; and Most Responsible Organisation in Africa 2021 by SERAS.

In recognition of his significant contributions to the financial services sector in Nigeria and across Africa, Dr. Onyeagwu was awarded a Doctorate Degree in Business Administration by the University of Nigeria, Nsukka, on March 25, 2023, during the university’s 50th convocation ceremony.

Published by Finance Publishing Limited, the International Banker is a leading global source of authoritative analysis and opinion on banking, finance and world affairs. Its influence, integrity, accuracy and objective opinion have earned it global recognition.

The International Banker Awards strive to recognise the most worthy financial institutions around the world – those not just doing their jobs well but exceptionally well – those operating at the industry’s cutting edge and setting new performance levels to which others will aspire.

The 2024 Banking Awards focused on various criteria, including the provision of much-needed capital for economic growth, cutting-edge innovation to enhance security and efficiency, commitment to sustainability and ESG principles, as well as intelligent investing to maximise profits and shareholder value.

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Banking Sector

SEC to Launch Comprehensive Framework for Bank Recapitalisation

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Securities and Exchange Commission

The Securities and Exchange Commission (SEC) has announced its plans to release a comprehensive framework designed to guide the capital market through the proposed bank recapitalisation exercise.

This announcement was made by the acting Director General of the SEC, Emomotimi Agama, during a meeting with the executives of the Institute of Capital Market Registrars in Abuja on Friday.

Speaking at the meeting, Agama emphasized the commission’s commitment to addressing all outstanding issues in a manner that serves the best interests of the market. “We are on top of the issues around the recapitalisation exercise.

Very soon, we will come up with a framework to guide the market. The idea is to interact with you all.

There may be things hanging, and due to the transition, we do not want to miss anything. It will still be attended to in the interest of the market,” Agama stated.

He further highlighted the collaborative approach the SEC intends to take, stressing the importance of working together with various sectors of the capital market to ensure a smooth transition.

“We will come up with a framework to move the market. We are in this together, and we will continue to work and do our best. This is our constituency, and we will do our best. We crave your cooperation to help us deal with major challenges,” he added.

One of the critical challenges the SEC aims to tackle is the issue of unclaimed dividends. Agama described unclaimed dividends as a “monster” that must be dealt with urgently. He called on registrars to adopt technology as a key solution to this persistent problem.

“Unclaimed dividends are a monster that we must deal with now. Whatever it will take to deal with it, we must do it. We must embrace technology as one of the ways to deal with it. Let us put our thoughts together and provide a workable solution; let us ensure that this becomes a thing of the past. We need to provide a solution, and the time is now. As custodians, we implore you to provide practicable steps to address this issue,” Agama urged.

Supporting this stance, SEC’s acting Executive Commissioner of Operations, Bola Ajomale, noted that technology adoption is the most effective approach to ensuring punctuality and sanitizing the system.

Ajomale reiterated the importance of modernizing processes to enhance efficiency and transparency in the capital market.

The President of the Institute of Capital Market Registrars, Seyi Owoturo, responded positively to the SEC’s initiatives. He congratulated the new SEC management on their appointment and pledged that the registrars would act in the best interests of the capital market.

“I congratulate the new SEC management on their appointment, and I pledge that the registrars will continue to work in the interest of the capital market,” Owoturo stated.

This upcoming framework is expected to provide clear guidelines and a robust structure for the recapitalisation of banks, aimed at bolstering financial stability and investor confidence.

As the SEC prepares to unveil this framework, stakeholders across the capital market are keenly anticipating its release, hopeful that it will address current challenges and lay a strong foundation for future growth.

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Banking Sector

Nigerian Banks Earn N438bn from Digital Channels in 2023

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First Bank

Nigerian banks collectively generated N438 billion from digital banking channels in 2023. This represents a 37.54% increase from the N318.64 billion recorded in the previous year.

An in-depth analysis of the annual reports of ten major financial institutions reveals this substantial growth.

The banks, which include FBN Holdings, Access Holdings, Guaranty Trust Holding Company, United Bank for Africa, Zenith Bank, Wema Bank, Fidelity Bank, FCMB Group, Stanbic IBTC Holdings, and Sterling Financial Holdings Company, have seen a surge in revenue from their electronic business operations.

These operations encompass a variety of digital platforms such as mobile applications, USSD channels, automated teller machines (ATMs), agency banking, internet banking, and point-of-sale (POS) payments, as well as credit and debit card transactions.

Leading the charge was United Bank for Africa (UBA), which reported an income of N125.58 billion from its electronic banking channels, a significant increase from the N78.94 billion recorded in 2022.

This robust performance underscores UBA’s strong digital banking presence and customer adoption.

Access Holdings also demonstrated a substantial increase, recording N101.62 billion from its electronic business activities. This marks a 70.34% rise compared to the previous year’s earnings.

Similarly, FBN Holdings reported N66.34 billion in revenue from its digital channels, up from N55.09 billion in 2022.

The bank attributed this growth to a rise in electronic banking fees and a broader customer acquisition drive through digital platforms.

Zenith Bank’s earnings from electronic banking fees reached N51.82 billion, showing a 13.29% growth from the previous year’s N45.74 billion.

GTCO saw its e-business income rise to N40.83 billion, up from N37.74 billion.

FCMB also reported an increase in revenue from electronic fees and commissions, reaching N17.69 billion compared to N13.99 billion in the prior year.

Fidelity Bank experienced a 20.30% rise in its e-business earnings, totaling N14.03 billion. Sterling HoldCo reported N8.588 billion from e-business commissions and fees, an increase from N7.16 billion.

Wema Bank, which prides itself on being the pioneer of Africa’s first fully digital bank, ALAT, saw its digital fees grow to N7.35 billion from N6.13 billion.

Stanbic IBTC Holdings, although reporting the least income from electronic business among the reviewed banks, still saw significant growth, with earnings rising to N4.42 billion from N2.51 billion in 2022.

The increase in digital banking revenues reflects a broader trend of technological adoption within the Nigerian financial sector.

Analysts have identified the shift towards mobile and online banking as a key driver of this growth, a trend accelerated by the COVID-19 pandemic which pushed more customers towards digital solutions.

Afolabi Olowookere, Managing Director and Chief Economist at ADSR, highlighted the sector’s robust growth and its increasing contribution to Nigeria’s Gross Domestic Product (GDP).

He noted, “The sector is growing, hence its contribution to the GDP will also grow. After COVID-19, the financial sector and ICT have been growing because people do a lot of transactions online.”

As digital banking continues to expand, Nigerian banks are expected to further invest in technological advancements and enhance their digital platforms, driving greater financial inclusion and offering more convenient banking solutions to customers nationwide.

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