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Investors Recover N672b Amid Bargain-hunting



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  • Investors Recover N672b Amid Bargain-hunting

Investors in Nigerian equities rode on the back of renewed bargain-hunting to recover N672 billion in net capital gains by the weekend after losing some N908 billion the previous week.

Benchmark indices for Nigerian equities showed a major rally with average net capital gain of 5.03 per cent during the five-day trading session, equivalent to net capital gain of N672 billion. The sustained rally reversed the negative average year-to-date return of -3.73 per cent or a net loss of N273 billion recorded two weeks ago. Average year-to-date return turned positive at 1.11 per cent at the weekend.

GTI Capital Chief Operating Officer, Mr Kehinde Hassan, said the recovery was driven by bargain-hunting by institutional investors, who sought to take advantage of the recent decline in share prices.

He said the trading momentum, despite the profit-taking dip in the last trading session at the weekend, suggested that the price recovery will continue this week.

Analysts at Cordros Capital stated that “relatively lower prices of value stocks, coupled with still-positive macro-economic fundamentals, will further sustain gains in the equities market”.

Aggregate market value of all quoted equities at the Nigerian Stock Exchange (NSE) rose from the week’s opening value of N13.336 trillion to close weekend at N14.008 trillion. The All Share Index (ASI)-the main index that tracks share prices at the Exchange, rallied from the week’s opening index of 36,816.29 points to close at 38,669.23 points.

Total turnover at the equities market stood at 1.75 billion shares worth N31.18 billion in 24,604 deals last week compared with a total of 2.70 billion shares valued at N84.78 billion traded in 19,715 deals two weeks ago.

A breakdown of the trading pattern showed that the financial services sector accounted for 1.42 billion shares valued at N19.72 billion in 13,950 deals; representing 81.4 per cent and 63.2 per cent of the total equity turnover volume and value respectively. The consumer goods sector followed with 153.105 million shares worth N6.805 billion in 4,512 deals while conglomerates sector placed third with a turnover of 60.47 million shares worth N186.60 billion in 905 deals.

Banking stocks dominated the activities chart with the trio of Guaranty Trust Bank Plc, Access Bank Plc and Zenith Bank International Plc leading the chart with a turnover of 588.61 million shares worth N16.57 billion in 4,120 deals, representing 33.65 per cent and 53.14 per cent of the total equity turnover volume and value respectively.

Further analysis indicated that industrial and consumer goods stocks were the major drivers of the rally last week. The NSE Industrial Goods Index recorded average week-on-week gain of 9.36 per cent, appreciating by 6.55 per cent. The NSE Banking Index posted a gain of 4.48 per cent. The NSE 30 Index, which tracks the 30 most capitalised stocks, rallied by 5.25 per cent. However, the NSE Oil and Gas Index declined by 1.34 per cent while the NSE Insurance Index dropped by 0.61 per cent.

The market had witnessed its worst decline with a net loss of N908 billion two weeks ago. The week-on-week average decline of 6.38 per cent eroded positive return and left the market with average negative return of -3.73 per cent penultimate weekend.

The profit-taking fluctuations, which had started in March, worsened considerably into a swinging sell-off last month. Nigerian equities lost N1.15 trillion in May 2018, equivalent to average month-on-month decline of 7.67 per cent. Nigerian equities had lost N557 billion in March and showed restraint with a modest loss of N44 billion in April.

Nigerian equities had last January hit all-time high market capitalisation of N15.3 trillion while the ASI had risen to 43,041.54 points, its highest index points since October 2008. The ASI had opened 2018 at 38,243.19 points while total market value of quoted equities opened the year at N13.609 trillion.

Nigerian equities had closed 2017 with full-year average return of 42.30 per cent, ranking within the top 10 best-performing equities across the world. Aggregate market value of quoted equities closed 2017 with net capital appreciation of N4.36 trillion.

Most analysts expected Nigerian equities to record double-digit gain this year, despite the political risks of political transition.

FSDH stated that Nigerian equities have potential to generate average return of 27.43 per cent in 2018, building on the average gain of 42.3 per cent recorded in 2017.

FBNQuest Capital Limited, the investment banking subsidiary of FBN Holdings Plc, predicted that the Nigerian equities market would sustain a bullish run for the second consecutive year with a double digit return of 25 per cent in 2018.

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.

Banking Sector

Sterling Bank Approves Audited Financial Statements for 2020



Sterling Bank

Board of Sterling Bank Approves 2020 Audited Financial Statements

The Board of Sterling Bank Plc said it has approved the audited financial statements for the year ended 31, December 2020.

The lender said the approval was done at a meeting held on 23rd February 2021.

Details of the financial statements will be released upon approval of the Central Bank of Nigeria (CBN), Sterling Bank stated in a statement filed with the Nigerian Stock Exchange on Thursday.

It said “We are pleased to inform our shareholders and other stakeholders that the Board of Sterling Bank Plc at its meeting of 23rd February 2021 approved the audited Financial Statements for the year ended 31st December 2020 subject to the approval of the Central Bank of Nigeria (CBN).

“Kindly note that details of the Financial Statements will be communicated to you upon approval of same by the CBN.

“Consequently, the closed period for trading in the shares of the Bank by its insiders which commenced from 8th February, 2021 will continue until 24 hours after the Audited Financial Statements for the year ended 31st December, 2020 are released on the floor of the Nigerian Stock Exchange.”

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Banking Sector

CIBN, NIBSS Introduce e-Payment Certification Programmes




CIBN, NIBSS Introduce e-Payment Certification Programmes

The Chartered Institute of Bankers of Nigeria (CIBN) in collaboration with Nigerian Interbank Settlement Systems Plc (NIBSS) have introduced professional certification programmes on electronic payments for financial service providers and institutions.

Both organisations disclosed that the programme was designed to enhance the electronic payment skills and knowledge of financial practitioners in order to equip them with efficient tools and information required to upscale innovation and services.

Speaking to journalists at a media briefing in Lagos, yesterday, the Chief Executive Officer, Chartered Institute of Bankers of Nigeria, Mr. Seye Awojobi, said the initiative is an international programme, well grounded in the local realities of the Nigerian e-payment industry and captures the current dynamics, as well as aspects of digital financial services practices.

“This programme would set the standards for e-payment expertise in Nigeria; foster a category of high performing professionals in the industry and build a resilient, safe and secured payment technology driven platform.

“The curriculum for the programme adequately covers recent methods required, which are in line with global practices.

“The introduction of the scheme cannot be more timely than now considering the COVID-19 pandemic, which created serious disruptions in our professional and personal lives,” he added.

On his part, Chief Executive Officer, Nigerian Inter-Bank Settlement Systems Plc, Premier Oiwoh explained that the introduction of the programme would determine the capacity and work experience criteria required to recognise beginners, intermediate and advanced.

“It would create a growth roadmap for fledging e-payment workers, including the unemployed who has the desire to make a career in the electronic sector.

“Also, it would enable us continue to tackle the issue of insecurity within the financial technology payment and banking space,” he added.

The institutions also noted that in order to maintain a certification credential, the practitioners must earn some recertification credits over a three year span and valid for three years after it has been issued.

The CIBN last week has reintroduced its mentoring scheme. The initiatives aims at up-scaling the leadership capacity and productivity of workers within the financial and banking sector.

Speaking during the virtual forum, Director General, Securities and Exchange Commission, Lamido Yuguda, had explained that mentoring schemes are essential for the sustenance and development of the sector as it is built upon values such as trust and professionalism.

“These values can be taught. But are reinforced when practiced by the senior co-workers and emulated by junior colleagues. Such initiatives enable workers to avoid being distracted by the material, prestigious and monetary incentives the space presents.

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Stanbic IBTC Offers Low-Interest Agric Loans



Stanbic IBTC Bank

Stanbic IBTC Offers Low-Interest Agric Loans

Stanbic IBTC Bank Plc has reaffirmed its commitment to the growth of Nigeria’s agriculture sector by supporting farmers and other players in the agricultural value chain.

As the demands on agribusinesses change seasonally, the financial institution provides financing solutions for agricultural enterprises to suit their requirements.

A statement explained that the needs range from availability of resources, to farming equipment, as well as enhancement of seasonal cashflow, amongst others.

Stanbic IBTC Bank offers various low-interest credit facilities across the agricultural sector that will help clients to cushion the impacts of the Covid-19 pandemic.

Speaking on this, Head, Agribusiness, Stanbic IBTC Bank, Wole Oshin, said the agribusiness financial solution was geared towards ensuring that players in the agriculture space are not hindered by lack of finance.

He said: “The bank’s suite of agribusiness solutions minimises risks, ensures maximum control and optimises profits associated with international trade by making transactions smoother, simpler and safer for all parties involved.

“Some benefits of the Stanbic IBTC Agribusiness Finance include: availability of gap-funding for unforeseen financial needs, maintenance of cash flow and flexibility of repayment terms based on the type of funding. This facility is also versatile and can be utilised for funding resources, vehicles and farming equipment.”

Oshin noted that agricultural enterprises could access overdraft to finance their short-term cash flow and working capital needs.

“With quick and flexible processes, funds are available when needed and interest is paid only on funds utilised, not on the full amount on which the limit is set,” he added.

He further reiterated that the asset finance solution could aid in the financing of all farming vehicle and implement needs, with a wide range of packages to suit business’ cash flow and tax requirements.

“Vehicles and assets such as tractors, harvesters, irrigation equipment and so on, to enhance production,” he said.

Other available facilities are Business Revolving Credit Loan, Agricultural Production Loan and Medium-Term Finance.

These are suitable for grain farmers, individual farmers, groups and entities in the agricultural sector. Our loans are designed to accommodate the purchase of various agricultural inputs (like seeds, fertilizers etc), livestock, agriculture-related products and asset acquisition.

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