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Mixed Trading Seen as Investors Await More Results

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Stock - Investors King
  • Mixed Trading Seen as Investors Await More Results

Trading at the nation’s stock market is expected to be mixed this week, as investors expect the filing of annual financial statements by companies that missed the March 31, 2018 deadline.

Some of the companies, including Presco Plc, A.G. Leventis (Nigeria) Plc, FBN Holdings Plc, Diamond Bank Plc, and Linkage Assurance Plc, gave the reasons for the delay last week.

The equities segment of the Nigerian Stock Exchange finished lower last week, as all market indices closed in negative territory.

The NSE All-Share Index and market capitalisation fell by 1.60 per cent to close the week at 40,841.14 basis points and N14.753tn respectively.

A total turnover of 1.765 billion shares worth N26.562bn in 20,265 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 2.328 billion shares valued at N28.927bn that exchanged hands in 25,530 deals the previous week.

The financial services industry (measured by volume) led the activity chart with 1.468 billion shares valued at N18.707bn traded in 12,850 deals, thus contributing 83.18 per cent and 70.43 per cent to the total equity turnover volume and value respectively.

The conglomerates industry followed with 127.882 million shares worth N623.871m in 971 deals.

The third place was occupied by the consumer goods industry with a turnover of 69.868 million shares worth N6.189bn in 2,930deals.

Zenith International Bank Plc, Access Bank Plc and United Bank for Africa Plc (measured by volume) were the most traded equities for the week, accounting for 543.758 million shares worth N9.739bn in 3,533 deals.

The three stocks contributed 30.81 per cent and 36.66 per cent to the total equity turnover volume and value, respectively.

Also traded last week were a total of 125,282 units of Exchange Traded Products valued at N2.835m executed in 11 deals, compared with a total of 15,293 units valued at N254,840 that was transacted in 16 deals the previous week.

Nineteen equities appreciated in price last week, lower than 40 of the previous week. Fifty-three equities depreciated in price, higher than 40 equities of the previous week, while 99 equities remained unchanged higher than 91 equities recorded in the preceding week.

Experts at Vetiva Capital Management Limited noted that the equity market closed 421 basis points lower last month, and continued in the negative territory at the start of the second quarter.

“Notwithstanding the negative close for the week, we highlight that market sentiment was more upbeat at week close and as such we foresee further mixed trading with a mild positive tilt at week open,” they said.

Commenting on the consumer goods industry, the Vetiva experts maintained their expectation of more intense competition across the industry this year.

“Also, we expect abating cost pressures to provide a leeway for further price cutting as the companies look to support volume growth within the year.”

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

Ecobank Pays Off $500 Million Eurobond

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Ecobank - Investors King

Ecobank Transnational Incorporated (ETI) has announced the successful repayment of its $500 million Eurobond.

The Eurobond, issued in April 2019 with a coupon rate of 9.5%, matured on April 18, 2024, and was listed on the London Stock Exchange.

The repayment, totaling $524 million inclusive of principal and interest, underscores Ecobank’s commitment to financial prudence and investor confidence.

The bond garnered substantial support from a diverse group of global investors, including development banks, FMO, and Proparco, serving as anchor investors.

Mr. Ayo Adepoju, Ecobank’s Group CFO, emphasized the significance of the inaugural bond in broadening the institution’s investor base and enhancing its visibility in global capital markets.

Despite challenges in the operating environment, such as disruptions in the global supply chain and financial markets, Ecobank has demonstrated resilience through robust liquidity, a solid balance sheet, and effective leadership.

This repayment marks Ecobank’s commitment to fulfilling its financial obligations and maintaining strong relationships with investors.

While this Eurobond repayment closes a significant chapter, it also reflects Ecobank’s ongoing efforts to navigate challenges and sustain its position as a leading financial institution in Africa.

As Ecobank clears this debt, it reinforces its reputation for financial stability and prudent management, setting a positive trajectory for future growth and continued success in the dynamic global financial landscape.

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SEC to Guard Against Illicit Funds Influx Amid Banking Recapitalisation

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Securities and Exchange Commission

In response to the recent banking recapitalization exercise announced by the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) has reiterated its commitment to safeguarding the integrity of the capital market against the influx of illicit funds.

This announcement came during a symposium organized by the Association of Capital Market Academics of Nigeria, where the Executive Director (Operations) of SEC, Dayo Obisan, addressed stakeholders on the implications of the banking sector recapitalization for the Nigerian capital market.

Obisan expressed the commission’s determination to collaborate with stakeholders to prevent the entry of laundered funds into the capital market.

He stressed the need for fund verification exercises to ensure transparency and accountability in capital inflows.

While acknowledging that fund verification is not typically within SEC’s purview, Obisan stated the commission’s willingness to collaborate with other regulators to prevent the entry of illicit funds into the market.

He said it is important to engage institutions such as the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) in verifying the legitimacy of funds entering the market.

Obisan also announced regulatory engagements aimed at enhancing the quality of filings and ensuring compliance with anti-money laundering regulations. These engagements seek to streamline the application process and mitigate the risk of illicit fund inflows from the onset.

Meanwhile, the President of the Chartered Institute of Stockbrokers, Oluwole Adeosun, maintained that the capital market can support the fresh capitalisation exercise.

He said, “The market is able and has expanded in the last ten years to be able to withstand any challenges with this capital raising exercise. It is important to know that investors have started to position themselves in the stocks of Tier 1 banks with the announcement of the planned recapitalisation last year.”

Adeosun also called on the banks to consider other options beyond the right issues, as had been seen in recent days in the sector, given the size of the funds needed to be raised as well as to bring in a fresh set of investors into the market.

“There should be more than a rights issue. We believe that some of them should go by private offer and public offer because the capital is huge so that we can bring in more shareholders into the market. We believe it is another opportunity for Gen Zs and millennial investors to come into the market.

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Nigerian Ports Authority Secures $700m Loan from Citibank for Lagos Ports Rehabilitation

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Nigerian ports authority

The Nigerian Ports Authority (NPA) has successfully secured a $700 million loan from Citibank to facilitate the rehabilitation of the Lagos ports.

The finance was facilitated by the UK Export Finance to revitalize the Apapa and Tincan Island Ports, two pivotal gateways for maritime trade in Nigeria.

The announcement was made during a signing ceremony held in Lagos, marking a pivotal moment in Nigeria’s efforts to modernize its port infrastructure.

Mohammed Bello-Koko, the Managing Director of the NPA, expressed optimism regarding the prompt commencement of the reconstruction efforts following the finalization of the funding agreement.

The rehabilitation project is expected to address longstanding challenges faced by the Apapa and Tincan Island Ports, including congestion, inadequate infrastructure, and operational inefficiencies. By modernizing these key maritime hubs, Nigeria aims to bolster its trade capabilities, enhance port efficiency, and stimulate economic growth.

Speaking at the ceremony, Bello-Koko highlighted the strategic significance of the Citibank Facility, citing its favorable terms and affordable interest rates as key advantages for the NPA.

Bello-Koko outlined the NPA’s broader strategy to upgrade port facilities beyond Lagos, with discussions underway to secure additional funding for the enhancement of Eastern Ports such as Calabar, Warri, Onne, and Rivers Ports, as well as the reconstruction of Escravos Breakwater.

The collaboration between the NPA and Citibank underscores the importance of public-private partnerships in driving infrastructural development.

Ireti Samuel-Ogbu, Managing Director of Citibank Nigeria Limited, reaffirmed the bank’s commitment to supporting the NPA and the Federal Government in bridging the infrastructural gap.

Samuel-Ogbu commended the NPA’s strategic initiative and underscored Citibank’s dedication to facilitating the project’s success.

 

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