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Persistent Sell-offs Drag Market Index 1.18% Lower

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  • 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.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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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

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micro-finance-bank

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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Finance

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

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FMDQ

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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