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Investors Snub Oil, Bank Stocks, Others

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Trading floor stock exchange market nse
  • Investors Snub Oil, Bank Stocks, Others

Investors in the equities market have turned to insurance stocks as they snubbed those of oil, banks, consumer goods and industrial sector on Tuesday.

At the end of trading on the floor of the Nigerian Stock Exchange on Tuesday, the insurance index emerged the lone gainer, appreciating by 1.17 per cent, while all other indices depreciated, pegging the market breadth at 0.6x.

The All Share Index lost 1.14 per cent to close at 31,173.71 basis points, while the market capitalisation shed N132bn, dropping from N11.512tn recorded on Monday to N11.380tn on Tuesday.

The volume and value traded improved, advancing by 73.7 per cent and 41.9 per cent to 182.228 million units and N2.754bn, respectively, while the year-to-date loss settled at -18.5 per cent.

Performance across sectors was largely bearish as four of five indices depreciated.

The insurance index, which was the only gainer, witnessed a 1.17 per cent increase due to a price appreciation in Continental Reinsurance Plc.

On the flip side, the oil & gas index declined the most, losing 5.68 per cent.

Analysts at Afrinvest Securities Limited said the decline in the oil & gas index was because investors took arbitrage opportunities following a price discrepancy between listed prices on the NSE and the London Stock Exchange.

The banking index trailed, losing 1.65 per cent due to sell-offs in Guaranty Trust Bank Plc and Access Bank Plc.

The loss in the banking index is the second consecutive time this week, indicating investors’ loss of interest in bank stocks.

Similarly, the consumer and industrial goods indices shed 0.09 per cent and 0.93 per cent, respectively, on the back of losses in P Z Cussons Nigeria Plc, Flour Mills Nigeria Plc, Cement Company of Northern Nigeria Plc and Lafarge Africa Plc.

At the end of trading on the floor of the Exchange on Tuesday, 14 gainers emerged against 23 decliners.

The top traded stocks by volume were Cement Company of Northern Nigeria (37.9 million units), Access Bank Plc (29.3 million units) and Transnational Corporation of Nigeria Plc (22.4 million units), while the top traded stocks by value were Cement Company of Northern Nigeria (N682.9m), Nestlé Nigeria Plc (N551.4m) and Nigerian Breweries Plc (N297.7m).

The top five losers were A.G. Leventis Nigeria Plc, Forte Oil Plc, P Z Cussons, Seplat Petroleum Development Company Plc and Prestige Assurance Plc.

A.G. Leventis saw its share price drop by 10 per cent to close at 27 kobo as its year-to-date return settled at -61.43 per cent.

Forte Oil’s share price declined by 9.90 per cent to close at N17.30, while its year-to-date return settled at -60.21 per cent.

P Z Cussons, whose year-to-date return settled at -48.79 per cent, saw its share price decline by 9.83 per cent to close at N10.55.

A 9.61 per cent decline was recorded in the share price of Seplat Petroleum as it closed at N590 per share, while its year-to-date return settled at -5.78 per cent.

Prestige Assurance’s share price, recording a 9.41 per cent decline, dropped to 77 kobo per share as its year-to-date return settled at +54 per cent.

The top five gainers were Beta Glass Plc, Continental Reinsurance, Cap Plc, Cadbury Nigeria Plc and Wema Bank Plc.

Analysts at Afrinvest said, “The significant sell offs in bellwethers observed on Tuesday presents bargain hunting opportunities for investors.

“Thus, we expect an uptick in market performance towards the end of the week.”

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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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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