Finance

Equities Market Gains 3.9% as Investors Renew Buying Interest

Published

6 years ago

January 21, 2019

Nigerian Exchange Limited - Investors King

Equities Market Gains 3.9% as Investors Renew Buying Interest

The stock market made an unexpected recovery last week as investors embarked on bargain hunting in stocks perceived to have attractive valuation. After falling 17.8 per cent last year the market had opened the New Year on bearish note due to weak demand for stocks ahead of the general elections. However, some discerning investors decided to take advantage of prices of some stocks that had hit record lows.

Hence, the return of the bulls to the market leading to seven days of gain.

Consequently, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated 3.9 per cent last week to close at 31,005.17, while market capitalisation ended higher at N11.562 trillion.

Similarly, all other indices finished higher with the exception of the NSE Banking Index that depreciated by 1.04 per cent while the NSE ASeM index closed flat.

The NSE Industrial Goods Index led with 12.7 per cent gain, followed by the NSE Insurance Index with 5.5 per cent, while NSE Consumer Goods Index and NSE Oil & Gas Index went up by 2.7 per cent and 0.59 per cent in that order.

However, commenting on the market performance, analysts at Cordros Capital Limited said: “In spite of this week’s rally, our view continues to favour cautious trading pattern in the equities market amidst brewing political jitters ahead 2019 elections, and the absence of a positive market trigger. However, we the positive macroeconomic fundamentals to drive recovery in the long-term.

Daily Performance

The Chief Executive Officer of the NSE, Mr. Oscar Onyema, had on Monday, explained why the market declined last year. He had said it was the trend globally as most emerging and frontier markets closed weaker. He noted that in Nigeria, the market would remain volatile in the first half (H1) of 2019 before it will recover in second half (H2).

“Accordingly, we anticipate volatility in equities market in H1 in 2019 with enhanced stability post-elections. We believe swift approval and implementation of the 2019 budget may have a positive impact on the companies’ earnings as well as consumer spending. Therefore, we anticipate a return of listings during the year with an uptick in market activity during the H2 of 2019,” Onyema said.

Also, last Tuesday, the market the maintained bullish trend with the NSE ASI rising 0.4 per cent to close at 30,583.21, while market capitalisation added N45.7 billion to close at N11.4 trillion.

The renewed demand has continued to boost prices of stocks. And buying interests in Dangote Cement Plc, Nigerian Breweries Plc among other bellwethers influenced the positive performance on that day.

But Neimeth International Pharmaceuticals Plc led the price gainers’ chart with 9.4 per cent, trailed by NEM Insurance Plc with 9.7 per cent. Sovereign Trust Insurance Plc went up by 9.0 per cent, while Royal Exchange Plc and Jaiz Bank Plc chalked up 8.3 per cent and 8.0 per cent respectively.

PZ Cussons Nigeria Plc, Union Diagnostic & Clinical Services Plc and Wema Bank Plc garnered 7.7 per cent, 7.4 per cent and 5.1 per cent in that order. Cement Company of Northern Nigeria Plc and Forte Oil Plc appreciated by 4.5 per cent and 2.5 per cent respectively.

Conversely, Etranzact Plc led the price losers with 9.8 per cent, trailed by Resort Savings and Loans Plc with 9.6 per cent, just as Cornerstone Insurance Plc shed 9.0 per cent. NPF Microfinance Bank Plc went down by 8.1 per cent, while First Aluminium and AXA Mansard Insurance Plc depreciated by 6.0 per cent and 4.6 per cent in that order.

By Wednesday, the market had recovered N235 billion in three days following gains recorded by bellwether stocks. The market capitalisation rose from N11.124 trillion to N11.329 trillion in three days, while the NSE ASI rose 2.1 per cent from 29,830.70 to close at 30,460.68 in the three days.

However, on Wednesday alone, accounted for 1.07 per cent bolstered by gains in bellwether counters such as Guinness Nigeria Plc, Forte Oil Plc, Dangote Cement Plc and United Bank for Africa Plc among others.

A total of 24 stocks appreciated compared with 16 others that depreciated. Sovereign Trust Insurance Plc and Veritas Kapital Assurance Plc led the price gainers with 10 per cent apiece. Guinness Nigeria Plc followed with 9.6 per cent, just as Honeywell Flour Mills Plc and NEM Insurance Plc chalked up 9.5 per cent each. Custodian Investment Plc added 9.4 per cent just as Niger Insurance Plc, Union Diagnostic and Clinical Services Plc and University Press Plc garnered 9.1 per cent, 8.0 per cent and 5.2 per cent respectively.

UBA was also among the price gainers, rising 2.0 per cent or N0.15 to close at N7.45 per share as investors took position ahead of dividend announcement by the bank. The board of directors of the bank will meet soon to approved its 2018 financial accounts and recommend a final dividend for the year. Having paid an interim dividend for the half year, expectations are high that UBA will give a dividend that is higher than what was paid the previous year.

Beta Glass Plc led the price losers with 10 per cent trailed by Northern Nigerian Flour Mills Plc with 9.2 per cent. Resort Savings and Loans Plc shed 8.8 per cent, while PZ Cussons Nigeria Plc and Neimeth International Pharmaceuticals Plc 8.3 per cent and 4.6 per cent in that order.

Activity level was, however, mixed as volume traded increased 1.9 per cent to 305.8 million shares while value traded declined 35.3 per cent to N2.1 billion. The top traded stocks by volume were Diamond Bank (141.2 million shares), Fidelity Bank Plc (18.6 million shares ) and GTBank (17.4 million shares) while GTBank(N577.7 million), Zenith Bank (N357.1 million) and Diamond Bank (N296.6 million) were the top traded by value.

The stock market appreciated further on Thursday as the bulls consolidated their hold on the market. As a result the NSE ASI appreciated 0.58 per cent to close higher at 30,137.53, while market capitalisation added N64.4 billion to end at N11.2 trillion.

Buying interest in Zenith Bank Plc, Dangote Sugar Refinery Plc and Stanbic IBTC Holdings Plc propelled the positive performance. However, Cement Company of Northern Nigeria Plc led the price gainers with 10 per cent, trailed by Ikeja Hotel Plc with 9.3 per cent. Royal Exchange Plc and C & I Leasing Plc garnered 9.0 per cent apiece. NEM Insurance Plc, AXA Mansard Insurance Plc and United Capital Plc chalked up 8.6 per cent, 8.3 per cent and 8.0 per cent respectively.

Conversely, Newrest ASL Services Plc led the price losers with 9.4 per cent followed by Veritas Kapital Assurance Plc with 9.0 per cent. Neimeth International Pharmaceuticals Plc shed 8.5 per cent, just as First Aluminum Nigeria Plc went down by 8.3 per cent.

Activity level also strengthened as volume and value traded surged 126.7 per cent to 300.1 million shares and 199.2 per cent to N3.2 billion. Diamond Bank (100.7 million shares), GTBank (39.4 million shares ) and UBA (26.2 million shares ) were the top traded stocks by volume, while GTBank(N1.3 billion), Zenith Bank (N463.0 million) and Diamond Bank (N209.4 million) were the top traded by value.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Finance

Did President Tinubu Ask CBN Gov Cardoso To Resign?

Published

1 day ago

September 19, 2024

Bassey Marshall

The presidency has refuted reports alleging that President Bola Tinubu had asked Yemi Cardoso to resign from his position as the Governor of the Central Bank of Nigeria (CBN).

The report claimed that the president ordered Cardoso to resign following his inability to stop the poor performance of the economy, most especially, the free fall of the Naira.

Also, the report alleged that Tinubu gave the order to Cardoso before departing Nigeria for China.

However, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, has countered the report suggesting that Tinubu ordered Cardoso’s resignation.

The presidential spokesman spoke via his X handle, describing the report as a “bundle of lies.”

“It’s all lies. President Tinubu has not asked Yemi Cardoso to resign,” Onanuga said while dismissing the report.

Cardoso was nominated as CBN Governor by President Tinubu on September 15, 2023, and assumed office as CBN Governor on September 22, 2023.

He and his deputies were cleared by the National Assembly days before he took over from acting CBN Governor, Folashodun Shonubi.

Cardoso has been under heavy pressure to address the ongoing economic challenges and stabilise the Naira.

Appointments

Keystone Bank Receives New Board Chairman, Directors From CBN

Published

2 days ago

September 18, 2024

Bassey Marshall

It is the dawn of a new era for Keystone Bank, a top player in the Nigerian banking sector.

As part of a broader strategy to ensure sustained growth for Keystone Bank, the Central Bank of Nigeria (CBN) has approved a new chairman and board of directors for the financial institution.

The new board consists of a new board chairman, five non-executive directors, and two new directors, all carefully selected to take the bank to new heights.

The apex bank confirmed the latest development via a statement on Wednesday.

Steering the ship of leadership is Lady Ada Chukwudozie, as the new board chairman.

Lady Ada Chukwudozie, brings with her a truckload of experience.

A prominent figure in Nigeria’s corporate sector, Ada has nearly three decades of experience in business strategy, management, and administration.

Her expertise cuts across multiple industries, including De-Endy Industrial Company Limited, Dozzy Group, the Manufacturers Association of Nigeria, and Vogue Afrique Magazine.

Indeed, to whom much is given, much is expected.

With her extensive background and experience, Ada will now shoulder the responsibility of guiding the bank toward achieving its long-term goals.

The good news is that she is not alone. Joining her on the board are five non-executive directors, each bringing their unique skills to the table.

The five non-executive directors are Abdul-Rahman Esene, Mrs. Fola Akande, Akintola Ayodeji Olusoji, Obijiaku Samuel, and Senator Farouk Bello.

Together, they will play a critical role in shaping the future of the bank.

Furthermore, two new executive directors, Ladi Oluwole and Abubakar Usman Bello were also confirmed by the CBN.

Meanwhile, Keystone Bank’s Managing Director and CEO, Hassan Imam, bragged about his confidence in the new team.

To him, he was certain they would drive the bank’s growth and ensure reliable service for customers.

Imam noted that their wealth of experience would play a crucial role in the bank’s continued repositioning and growth.

His words: “We are pleased to welcome the new chairman, non-executive directors, and executive directors to the board of Keystone Bank.

We are confident that their extensive experience will be invaluable as we continue to reposition the bank to seize emerging economic opportunities while maintaining strong corporate governance and providing our customers with a secure and reliable banking experience,” Imam concluded.

Recall that in January, the CBN dissolved the board and management of Union Bank, Keystone Bank, and Polaris Bank.

Finance

African Development Bank Extends $400,000 in Technical Assistance to Support Pension Sector

Published

1 week ago

September 12, 2024

Samed Olukoya

African Development Bank - Investors King

The African Development Bank Group has approved $400,000 in grant funding for the Liberia Pension Sector Intervention Project, to support the expansion of pension coverage in Liberia.

The grant is being sourced from the Capital Markets Development Trust Fund (CMDTF), a multi-donor trust fund, managed by the African Development Bank that supports development of efficient and diversified capital markets in African countries. The CMDTF is funded by donors including the Ministry for Foreign Trade and Development Cooperation of the Netherlands and the Ministry of Finance of Luxembourg.

Liberia`s National Social Security and Welfare Corporation (NASSCORP), the only existing pension service provider in country, currently provides coverage to mainly formal sector public service employees. There is thus a gap in coverage for the private sector, and particularly informal businesses.

Under the Liberia Pension Sector Intervention Project, the funding will support targeted reforms of Liberia’s pension sector including an assessment of the current pension system towards development of a national strategy, and capacity building for the pension sector ecosystem, including public and potential private pension sector operators.

The project is expected to enhance the enabling enviroment and support the emergence of domestic institutional investor base, thereby broadening the pension coverage and enabling the pension system to mobilise additional savings for investment, including through domestic financial markets. It will be implemented by the Central Bank of Liberia, which oversees the country’s financial sector.

Hon. Henry F. Saamoi, Acting Executive Governor of the Central Bank of Liberia said, “The CBL appreciates the continued support of the African Development Bank toward the development of Liberia’s pension sector and looks forward to working with the Bank to implement this important reform. The Liberia Pension Sector Intervention Project should enhance Liberia’s readiness for the development of its capital market by institutionalising the investor base, and improving the pension sector’s legal and regulatory environment,” Mr. Saamoi added.

Ahmed Attout, African Development Bank Director for Financial Sector Development said, “We are excited to partner with the Central Bank of Liberia on this operation that is expected to facilitate a reformed pension system capable of mobilising domestic savings, that can be chanelled through financial markets, thereby contributing to deepen the domestic capital markets in Liberia. This aligns with the Bank’s goal of facilitating the emergence of well-functioning capital markets that can efficiently mobilise and allocate savings to fund the credit needs of economic agents and the continent’s development while reducing intermediation costs.”