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Equities’ Index Gains 1.5%, Hits Three-month High



Nigerian Stock Exchange
  • Equities’ Index Gains 1.5%, Hits Three-month High

The Nigerian equities market maintained a significant bullish trend this week as the All-Share Index appreciated by 1.5 per cent week-to-date to close at a three-month high of 37,944.60 basis points.

On Thursday alone, the market gained N82bn as 11.77 billion shares valued at N21.384bn exchanged hands in 5,152 deals.

The year-to-date and month-to-date returns advanced to 41.2 per cent and 3.4 per cent, respectively.

The Nigerian Stock Exchange marrket capitalisation increased by N205.5bn to N13.2tn, exceeding the N13tn mark for the second time this year. Similarly, activity level improved as average volume and value traded increased 70.8 per cent and 14.3 per cent week-on-week to 745.5 million units and N5.2bn, respectively.

The week’s top traded stock by volume were Wapic Insurance Plc (1.4 billion), FIdelity Bank Plc (224.3 million) and FBN Holdings Plc (164.6 million) while Zenith Bank Plc (N3.9bn), Nigerian Breweries Plc (N3.4bn), and Guaranty Trust Bank Plc (N1.5bn) led the value chart.

The Exchange started the week off on a negative note, as profit taking in banking stocks dragged the NSE ASI 31 basis points lower. However, the market rebounded on Tuesday, majorly on the back of gains in Nigeria Breweries, Stanbic IBTC Holdings Plc and Dangote Cement Plc, which drove the ASI 68bps higher.

Similarly, the market performed positively on Wednesday with the ASI rising 55bps due to broad-based rally across sectors. To close the week, the market sustained its positive run, up 62bps on Thursday against the backdrop of buying interest in bellwether industrial goods and banking stocks.

Performance across sectors was largely bullish this week as all the major NSE indices advanced week-to-date.

The insurance index led the gainers chart, up by 1.5 per cent WTD due to price appreciations in Axa Mansard Insurance Plc and Continental Reinsurance Plc, which appreciated by4.9 perhaps cent and 4.5 per cent, accordingly.

The banking and oil/gas indices trailed, rising by 1.4 per cent apiece – buoyed by gains in Fidelity Bank, GTBank, Forte Oil Plc and Total Nigeria Plc, which soared by 21.2 per cent, 2.4 per cent, 15 per cent and 4.8 per cent, respectively.

Trailing was the consumer goods index which climbed by 1.3 per cent WTD as Dangote Sugar Refinery Plc and Dangote Flour Plc rallied, gaining 4.7 per cent and 11.6 per cent, accordingly.

The industrial goods index gained 1.1 per cent to close out the positive performance, buoyed by buying interest in Dangote Cement, which gained 3.8 per cent.

Investor sentiment, measured by market breadth, strengthened as 38 stocks advanced against 28 decliners, depicting an improvement from the previous week.

Top performing stocks this week were FIdelity Bank, Forte Oil and Law Union and Rock Insurance Plc, which respectively appreciated by 21.2 per cent, 15 per cent and 14.8 per cent.

However, the worst-performing stocks were Mobil Oil Plc, Universal Press Plc and Neimeth International Pharmaceuticals Plc, which declined by 6.1 per cent, 5.5 per cent and 4.9 per cent, accordingly.

Commenting, analysts at Afrinvest Securities said, “The strong performance of the market on Friday which is the index rebalancing date for MSCI Frontier Market indices, perhaps indicate Nigeria had a net inflow of funds.

“Although we anticipate a slight pullback in early trades next week, due to profit-taking, we reiterate our positive near term outlook for the market as fund managers continue to rebalance portfolios ahead of fiscal year-end.”

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.


Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth



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




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




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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