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Stock Market Rebounds as Investors Gain N74.93bn



  • Stock Market Rebounds as Investors Gain N74.93bn

The nation’s stock market witnessed a rebound on Tuesday as the market capitalisation of listed equities increased by N74.93bn.

The market capitalisation rose to N11.255tn on Tuesday from N11.180tn on Monday, while the All Share Index gained 0.67 per cent to settle at 30,814.19 basis points.

Analysts at Afrinvest Securities Limited attributed the gain recorded to buying interests in bellwethers such as Dangote Cement Plc, Guaranty Trust Bank Plc and FBN Holdings Plc.

Investor sentiment advanced to 1.8x from 0.9x recorded on Monday as the year-to-date loss moderated to -19.4 per cent.

Activity level also improved as average volume and value traded appreciated by 47.1 per cent and 193.9 per cent to 316.199 million units and N5.090bn, respectively.

The top traded stocks by volume were Zenith Bank Plc (102.286 million units), AXA Mansard Insurance Plc (40.057 million units), Lafarge Africa Plc (25.905 million units), Access Bank Plc (22.208 million units) and GTB (15.970 million units), while Zenith Bank (N2.344bn), GTB (N553.8m), Unilever Nigeria Plc (N453.5m), Guinness Nigeria Plc (N384.5m) and Lafarge (N309.5m) were the top traded stocks by value.

Performance across sectors was largely bullish as three indices closed in the green.

The industrial goods index emerged the highest gainer with a 1.63 per cent gain on the back of major gains recorded by Dangote Cement and Cement Company of Northern Nigeria Plc.

The oil and gas index was the second highest gainer, advancing by 1.50 per cent as a result of price appreciation in major stocks such as 11 Plc and Forte Oil Plc.

It was followed by the banking index, which appreciated by 0.48 per cent following gains in GTB and Diamond Bank Plc.

On the flip side, the consumer goods index decreased by 0.91 per cent as a result of the profit-taking in Nigerian Breweries Plc and Unilever.

The insurance index dropped by 0.07 per cent on the back of losses in Continental Reinsurance Plc and Mutual Benefits Assurance Plc.

At the end of trading on Tuesday, 24 stocks emerged gainers against 11 losers.

The top five gainers were Neimeth International Pharmaceuticals Plc, Forte Oil, Cement Company of Northern Nigeria, Diamond Bank and UACN Property Development Company Plc, whose respective share prices gained 10 per cent, 9.91 per cent, 9.91 per cent, 9.62 per cent and 9.46 per cent.

The top five losers were Access Bank, Mutual Benefits, Nigerian Breweries, Lasaco Assurance Plc and Unilever, which saw their share prices depreciate by 5.52 per cent, 4.76 per cent, 3.40 per cent, 3.33 per cent and 2.76 per cent, respectively.

Analysts at Afrinvest said, “Although we maintain a bearish outlook for the equities market, we do not rule out the possibility of persistent buying interest particularly on fundamentally sound stocks in the near term.”

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.


Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth



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




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




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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