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Market Sinks Further as 26 Stocks Decline

Published

7 years ago

on

Nigerian Exchange Limited - Investors King
  • Market Sinks Further as 26 Stocks Decline

The bearish sentiment of the equities market from the start of the week persisted on Thursday as the All-Share Index declined by 0.49 per cent to close at 43,326.89 basis points from 43,538.16 basis points.

The Nigerian Stock Exchange year-to-date return contracted to 13.3 per cent as 26 stocks slumped against 17 that advanced.

As a result, investors lost N75.8bn as market capitalisation fell to N15.5tn.

The drag in the market was largely attributed to sustained sell-offs across board with Nestle Nigeria Plc, Nigerian Breweries Plc and FBN Holdings Plc weighing the most on performance and depreciating respectively by five per cent, 3.2 per cent and 1.6 per cent.

However, activity level improved as volume and value traded appreciated by 336.9 per cent and 64 per cent to close at 2.2 billion units and N7.4bn, respectively.

Sector performance was mixed as three of the five market indices closed in the red while two appreciated.

Leading the losers’ chart was the consumer goods index which plummeted by two per cent following sell pressure in Nestle and Nigerian Breweries shares.

The insurance index following, also declining by 0.6 per cent on the back of price depreciation in Wapic Insurance Plc and Aiico Insurance PLc, which declined respectively by 4.4 per cent and 4.8 per cent.

In the same vein, the banking index fell by 0.1 per cent as Union Bank of Nigeria Plc, Diamond Bank Plc and Fidelity Bank Plc depreciated accordingly by 2.4 per cent, 4.8 per cent and 3.2 per cent.

However, the industrial goods index appreciated by 0.3 per cent owing to improvement in Dangote Cement Plc, which gained 0.4 per cent, while the oil and gas index rose by 0.6 per cent due to gains in Forte Oil Plc, which gained 4.9 per cent.

Investor sentiment improved compared to Wednesday’s equities performance following gains in 17 stocks and depreciation in 26.

At the close of trading, Unity Bank Plc, Forte Oil Plc and Royal Exchange Assurance Plc emerged s the top performing stocks, appreciating respectively by 9.4 per cent, 4.9 per cent and 4.8 per cent while Skye Bank Plc, Hallmark Insurance Plc and Nestle Nigeria emerged at the worst performing equities, sliding accordingly by 8.9 per cent, 5.3 per cent and five per cent.

Commenting on the state of the equities market, analysts at Afrinvest Securities, in a note, said, “While the bearish performance was in line with expectation, improving market breadth and turnover suggest some investors are taking advantage on the week-long sell off to buy into stocks with attractive valuation. Hence, we expect the ‘Buy the Dip’ sentiment to buoy performance in subsequent sessions.

FSDH Group Research in its equities broker perspective, said, “The bearish sentiment in the equity market is likely to remain to end the week. However, we expect an increase in market activity, as the market moves from the oversold position in subsequent trading sessions with bargain hunting by investors.”

Cordros Capital analysts, thus, said, “We believe that still-positive market fundamentals and improving macroeconomic conditions suggest legroom for further gains.”

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Finance

CBN New Policy Boosts Nigeria’s Economy and Increases FX Reserve to Over $40 Billion

Published

1 day ago

on

November 9, 2024

By

Dr. Olayemi Michael Cardoso

In celebration of one year in office, the Central Bank of Nigeria (CBN), under the leadership of Olayemi Cardoso, has recorded another milestone with an over $40 billion increase in Nigeria’s foreign exchange reserves.

The announcement of the increase was made on Thursday by Cardoso during a symposium in Abuja titled Promoting Stability in an Era of Economic Reforms: The Journey So Far.

It was noted that the increase followed a policy of reform implemented by the administration of Cardoso as the CBN Governor to address Nigeria’s decade-long challenges with declining foreign direct investment and portfolio investments. 

It was gathered that, to further strengthen the nation’s economy, the CBN increased monthly foreign remittances to $1 billion by establishing new operational guidelines for Bureau de Change operators.

“According to Governor Cardoso, the reforms have started to yield positive results, including marked improvements in the FX market and a stabilization of foreign reserves, which have now surpassed the $40 billion mark, the highest in 33 months,” the statement read.

“While noting that inflation remains elevated, he said it is on a downward trend, signaling that the reforms are taking hold in restoring market equilibrium and fostering growth,” the statement added.

Additionally, the CBN had raised the Monetary Policy Rate by 850 basis points to 27.25% and also increased the Cash Reserve Ratio for commercial banks to 50%.

It was gathered that the previous administration had created arbitrage opportunities and discouraged foreign investment. 

In a way to correct these issues, the present administration has streamlined Nigeria’s foreign exchange system and eliminated multiple exchange rates to reduce delays in foreign exchange settlements and prevent revenue losses that had reached 6.2 trillion Naira in 2022. 

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Banking Sector

NDIC Issues Fresh Directives to Unpaid Heritage Bank Customers, List Requirements for Refund

Published

2 days ago

on

November 8, 2024

By

The Nigeria Deposit Insurance Corporation (NDIC) has issued fresh directives to customers of the defunct Heritage Bank who are yet to receive the refund of their money deposited in the bank.

The managing director of NDIC, Bello Hassan, through the director of communications and public affairs, Nuhu Bashir, issued the fresh directive during the corporation’s ‘special day’ event at the 36th Lagos International Trade Fair.

Urging unpaid customers to come forward, Hassan said that the requirements needed to claim a refund include the customer’s BVN, proof of account ownership, and alternative account details.

He detailed that affected customers can process their claims via the NDIC website, email, and social media platforms.

Highlighting the corporation’s role in liquidating Heritage Bank and facilitating the ongoing recovery and refund of depositors’ funds, Hassan stated, “Depositors who are yet to receive their payment should come forward with their BVN, proof of account ownership, identification, and alternative account details.”

NDIC reaffirmed its commitment to protecting depositors and ensuring financial stability.

“Our mandate is to safeguard depositors and ensure financial stability,” he stated.

Hassan assured customers that banks that are still in operation are safe saying, “All banks with active licenses from the CBN are safe and healthy,” Hassan said.

He pledged the corporation’s commitment to providing a safe and stable financial environment for Nigerians.

According to him, a stable financial environment will boost public confidence in financial institutions and enable businesses to thrive.

He stated, “The NDIC is committed to ensuring a stable financial environment that safeguards depositors and builds public confidence, enabling businesses to thrive and contribute to our nation’s economic development.”

Gabriel Idahosa, the president of the Lagos Chamber of Commerce and Industry (LCCI) praised the NDIC for its vigilant monitoring of banks and its proactive intervention in distressed institutions.

Idahosa said, “The corporation’s vigilant monitoring of banks, proactive intervention in distressed institutions, and ongoing commitment to depositor protection have instilled confidence in the banking sector.

“These ensure that banks can continue to serve businesses and individuals even in uncertain economic times.

“Its unwavering commitment to depositor protection and financial stability has been vital in navigating recent economic challenges and safeguarding the integrity of Nigeria’s banks.”

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Banking Sector

Zenith Bank Commends Customers After Successfully Unveiling Upgraded Enhanced Tech infrastructure

Published

4 days ago

on

November 6, 2024

By

Zenith Bank - Investors King

Zenith Bank Plc has announced that it now boasts the best technology infrastructure in the banking industry, positioning itself to provide an exceptional customer experience and superior service delivery moving forward. This upgrade follows a recent comprehensive technology enhancement.

The bank expressed its heartfelt gratitude to customers for their support and patience throughout the upgrade process, while also extending apologies for any inconveniences experienced during this time.

This announcement was made in a social media post on Wednesday, signed by Dame Dr. Adaora Umeoji, OON, the Group Managing Director/CEO.

In her message, the GMD/CEO emphasized the bank’s commitment to delivering an unparalleled service experience, stating, “We undertook this upgrade to ensure we can offer our customers the best possible service.”

Umeoji pledged that Zenith Bank will continue to innovate, ensuring that customer needs are met swiftly, safely, and conveniently.

The post read in part: “On behalf of the Board, Management, and Staff of Zenith Bank PLC, I would like to thank you for your patience and support during our IT infrastructure migration to a new and more robust operating system.

“We are truly grateful for the trust and confidence you have placed in us. The primary reason for undertaking this extensive endeavor was to better position Zenith Bank PLC for improved service delivery to all our valued customers and to create memorable banking experiences at all our touchpoints.

“While I regret the inconveniences and challenges you faced during and immediately after our migration, I am pleased to inform you that Zenith Bank PLC now has the best technology infrastructure in the industry. We are committed to ensuring you experience superior service delivery going forward.

“Rest assured, you remain our top priority, and Zenith Bank will continue to innovate and offer value-added products and services to meet all your banking needs quickly, safely, and conveniently.”

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