Connect with us


Persistent Sell-offs Drag Market Index 1.18% Lower



Trading floor stock exchange market nse
  • Persistent Sell-offs Drag Market Index 1.18% Lower

Persistent sell-offs witnessed in the nation’s stock market last week dragged the All-Share Index lower by 1.18 per cent.

The market capitalisation dropped from N11.676tn recorded on Thursday to N11.565tn on Friday, while the ASI shed 305.9 basis points to close at 31,678.70bps.

The market opened for four trading days last week as the Federal Government declared November 20 a public holiday.

The NSE, in its weekly market report, said a total turnover of 1.282 billion shares worth N23.142bn in 11,467 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.285 billion shares valued at N11.539bn that exchanged hands in the previous week in 13,245 deals.

Thirty equities appreciated in price last week against 24 losers, compared with the 24 gainers and 36 losers recorded in the previous week.

All indices finished lower, except the main board, insurance, consumer goods, oil & gas and pension indices that finished higher by 0.43 per cent, 1.38 per cent, 1.08 per cent, 0.25 per cent and 0.56 per cent, respectively, while ASeM Index closed flat.

The Financial Services Industry (measured by volume) led the activity chart with 1.058 billion shares valued at N18.744bn traded in 6,558 deals; thus contributing 82.48 per cent and 81 per cent to the total equity turnover volume and value, respectively.

The banking sector extended its bearish streak to the third week, dragging the year-to-date return of the sector lower to -13.61 per cent.

Investors continued to sell down on their holdings of counters in the sector as four counters shed value last week.

Consequently, the market breadth settled at equilibrium. Diamond Bank Plc was the top gainer in the sector with a 5.56 per cent price increase to close at N0.95.

Conversely, Jaiz Bank Plc was the worst performing stock, shedding 8.89 per cent of its value to close at N0.41.

The Oil & Gas Industry followed with 96.818 million shares worth N644.178m in 925 deals.

The Oil & Gas index gained 0.25 per cent at the close of trading on Friday, settling its year-to-date return at -12.02 per cent. There were two gainers and losers a piece, pegging the sector breadth at equilibrium.

Analysts at Meristem Securities Limited said the gain recorded in the sector could be attributed to bargain hunting activities on 11 Plc and Total Nigeria Plc, driving the sector into the green zone.

11 Plc emerged the top gainer last week, gaining 10 per cent to close at N165.

On the flip side, Forte Oil Plc lost 6.80 per cent of its share price to close at N19.20, while Oando Plc shed four per cent to close at N4.80.

The third place was Consumer Goods Industry with a turnover of 83.134 million shares worth N3.244bn in 2,114 deals.

At the close of the week, the consumer goods sector advanced by 1.08 per cent, settling its year-to-date return at -24.76 per cent.

Nine gainers outpaced two losers, bringing the sector breadth to 4.50x.

PZ led the gainers’ chart, advancing by 18.33 per cent to close at N10.65.

On the flip side, Nigerian Breweries and Cadbury Nigeria Plc were the only losers, as both counters shed 1.57 per cent and 0.54 per cent, to close at N81.50 and N9.20, respectively.

The NSE said trading in the top three equities ― Zenith Bank Plc, Diamond Bank Plc, and Oando Plc, (measured by volume) accounted for 877.505 million shares worth N16.146bn in 1,423 deals, contributing 68.43 per cent and 69.77 per cent to the total equity turnover volume and value, respectively.

The top five gainers were Prestige Assurance Plc, PZ Cussons Nigeria Plc, Consolidated Hallmark Insurance Plc, Flour Mills Nigeria Plc and NPF Microfinance Bank Plc, which appreciated by 41.07 per cent, 18.33 per cent, 15.15 per cent, 15.12 per cent, and 12.50 per cent, respectively.

The top five losers were Ikeja Hotel Plc, Lafarge Africa Plc, Jaiz Bank Plc, Law Union and Rock Insurance Plc and Unity Bank Plc, which declined by 18.54 per cent, 12.50 per cent, 8.89 per cent, 8.77 per cent and 8.60 per cent, respectively.

Analysts at Vetiva Capital Management Limited said, “We anticipate another negative start this week as investor apathy continues to weigh on market activity.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading

Banking Sector

CBN Extends Letter of Credit Issuance Timeline Amid Forex Crisis

Move Aims to Address FX Scarcity Challenges and Enhance Customer Service



Central Bank of Nigeria (CBN)

The Central Bank of Nigeria (CBN) has announced an extension of the timeline for issuing letters of credit from 24 hours to five working days, according to the newly approved 2023 service charter.

This adjustment comes as the country grapples with foreign exchange scarcity, impacting local and international trade.

The 2020 service charter initially stipulated a 24-hour timeline for the issuance and management of letters of credit, but the updated charter now reflects a timeline extension to five working days.

Also, the CBN has prolonged the timeline for the registration of Form M and NXP from 24 hours to two working days.

The move follows the CBN’s unification of all forex market segments in June 2023, aimed at promoting liquidity and stability.

However, this measure appears to have led to increased market instability, with the naira losing nearly a fifth of its value.

Reports indicate that foreign suppliers are now rejecting letters of credit from Nigerian businesses, affecting the importation of goods and services.

Letters of credit are crucial for the payment of visible goods imports, wherein a bank commits in writing to pay the exporter a specified sum within a defined timeframe upon receipt of proper documentation from the customer.

The extended timelines for letters of credit, Forms M, and NXP in the service charter are seen as measures to manage cash flow and instill confidence in the process amidst the ongoing forex crisis.

CBN Governor Yemi Cardoso stressed the commitment to responsive and citizen-friendly governance through efficient, responsible, and transparent service delivery in the revised service charter.

The move is part of the CBN’s effort to comply with the Business Facilitation Act 2022 and enhance ease of doing business in Nigeria.

Continue Reading

Banking Sector

Unity Bank MD Advocates Policy Actions to Stem Gender-Based Violence in Nigeria



The Managing Director of Unity Bank Plc, Mrs. Tomi Somefun has called for comprehensive policy actions that will dismantle the structures that enable gender-based violence in Nigeria.

At the Ebony Life Cinema, the venue of the film screening in Lagos, Unity Bank supported the BECKMA movie premiere by ARDA Development Commuications Inc. which was held to highlight issues of Gender-Based violence and driving positive change in society.

Making the call, Somefun stated that the Bank committed to partnering with the movie premiere and putting the power of the brand behind BECKMA as the event brings sustainability and gender equality to the front burner.

Represented by Unity Bank’s Group Head of Compliance, Mrs. Patricia Ahunanya, Somefun noted that “9 percent of women aged 15 to 49 had suffered sexual assault at least once in their lifetime and 31% had experienced physical violence,” citing a recent study by UNDP in Nigeria.

Speaking further, Somefun said “Gender-based violence is not just a women’s issue, but a societal ill that demands our collective attention. It is high time for us to step forward and advocate for comprehensive policy actions that will dismantle the structures allowing such atrocities to persist”.

She added, “I urge policymakers to enact stringent laws against gender-based violence, ensuring swift and severe consequences for perpetrators. Our homes and various organisations must also be a catalyst for change, inspiring others to follow suit.”

While commending the ARDA Development Communications Inc. for their initiatives to promote gender equality and empowerment in line with SDG5, Somefun assured of the Bank’s commitment to sustainable initiatives and further collaborative initiatives and advocacy programmes for the elimination of gender-based violence.

Continue Reading

Banking Sector

Nigeria’s NIBSS Directs Banks to Disconnect Non-Deposit Financial Institutions from NIP System



Central Bank headquarters

Banks in Nigeria have received a directive from the Nigeria Inter-Bank Settlement System (NIBSS) to disconnect Switches, Payment Solution Service Providers (PSSPs), and Super Agents from the NIBSS Instant Payment Outwards System.

The circular, dated December 5, 2023, highlighted that including these non-deposit-taking financial institutions as beneficiaries on the NIP funds transfer channels violates the Central Bank of Nigeria (CBN) guideline on electronic payments.

The NIBSS emphasized that while Switches, PSSPs, and Super Agents might process outward transfers as inflows to banks, their licenses do not permit them to hold customers’ funds.

The circular referred to the CBN’s guidelines on electronic payment of salaries, pensions, suppliers, and taxes, dated February 2014, as the basis for this regulatory stance.

The directive also pointed to a circular dated May 11, 2018, titled “Permissible Services and Products of PSSP Operation in Nigeria,” reinforcing the need for compliance.

As a result, banks were urged to delist all Switches, PSSPs, and Super Agents from the NIP Outward Transfer channels while allowing their participation in inward transfers.

In Nigeria’s payment ecosystem, operators are required to obtain licenses such as Switching and Processing, Mobile Money Operations, Payment Solution Services, or Regulatory Sandbox from the CBN.

Only Mobile Money Operators (MMOs) have the authority to hold customer funds, according to the CBN’s regulatory framework.

Continue Reading