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Zenith, UBA, Others Slide, Equities Shed N30bn

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  • Zenith, UBA, Others Slide, Equities Shed N30bn

Out of the five major indices of the Nigerian Stock Exchange, the banking index led losses at the close of trading on Thursday, as Zenith Bank Plc and United Bank Plc shares declined respectively by 1.9 per cent and one per cent.

Overall, the banking index shed 0.3 per cent followed by the industrial goods index, which depreciated by 0.5 per cent, as the NSE market capitalisation dropped by N30bn to close at N12.823tn from N12.853tn.

The Nigerian bourse bucked a two-day consecutive gain as the All-Share Index fell 24 basis points to close at 37,051.54 points while the year-to-date return moderated to 37.9 per cent.

However, activity level was mixed as volume fell by 9.2 per cent to close at 175.8 million units while value traded rose by 94.9 per cent to settle at N3.5bn

Sector performance stayed mixed as three of five indices under our coverage closed in the green, while two trended southwards.

The oil/gas index appreciated the most, up by 1.2 per cent on account of gains in Mobil Oil Nigeria Plc and Forte Plc, which appreciated by 7.8 per cent and five per cent, respectively.

The insurance index trailed, gaining 0.3 per cent due to price appreciation in Continental Reinsurance Plc, which appreciated by 4.4 per cent.

Similarly, an uptick in International Breweries Plc by 8.4 per cent pushed the consumer goods index to close 0.1 per cent higher.

Investor sentiment stayed flat as market breadth closed at 0.9 relative to 0.9 recorded in the previous session.

Leading the gainers’ chart were Caverton Offshore Support Group Plc, which gained 9.5 per cent, and International Breweries as well as Mobil, while Law Union and Rocks Insurance Plc. NPF Microfinance Bank Plc and Fidelity Bank Plc led the laggards’ list.

“While we attribute Thursday’s performance to profit taking in Dangote Cement, the relatively unchanged market breadth suggests investors are still sourcing for bargains. Accordingly, we expect a positive close for the week,” analysts at Afrinvest Securities said in a post.

Meanwhile, for the fixed income side of the financial market, the open buy-back and overnight rates declined by 13.66 per cent and 14.5 per cent, respectively, at the close of trades. Consequently, the average money market rate shed 14.08 per cent to settle at 7.50 per cent.

Bullish sentiments remained prevalent in the secondary market for Treasury bills as the average T-bills yield continued on a downward trajectory to close at 18.05 per cent after shedding 0.25 per cent in the day. Yield declines were recorded on all but the nine-month instrument which advanced by 0.06 per cent.

The Treasury bonds market remained bearish as the average bond yield advanced further by 0.003 per cent to close at 15.243 per cent. At the close of trades, six tenors advanced while only three tenors declined and all others traded flat.

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

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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.

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Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans

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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.

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Finance

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

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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.”

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