- Weak Earnings Reports Push Stock Market Lower – Analysts
The weak earnings reports filed with the Nigerian Stock Exchange by some firms last week weighed on the equities market, pushing investors to sell off their shares and take profits, analysts have said.
The market halted its two weeks’ bullish run as the NSE All Share Index declined by 2.51 per cent to settle at 30,636.36 basis points, dragging the year-to-date return to -2.53 per cent.
According to analysts at Meristem Securities Limited, investors took profit off most of the counters following the unimpressive financial scorecards mainly across the consumer goods sector, which contributed to the market’s underwhelming performance.
Investors lost N326bn in January following persistent bearish sentiments.
The market, however, opened on a positive note this month as the ASI gained 0.26 per cent to settle at 30,636.36bps on Friday.
The market capitalisation of equities listed on the NSE increased by N20bn from N11.394tn on Thursday to N11.424tn on Friday.
A total turnover of 1.452 billion shares worth N14.788bn in 19,318 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.807 billion shares valued at N17.232bn that exchanged hands in the previous week in 18,332 deals.
The financial services industry (measured by volume) led the activity chart with 1.204 billion shares valued at N10.500bn traded in 12,671 deals, thus contributing 82.95 per cent and 71 per cent to the total equity turnover volume and value, respectively.
The performance in the banking sector was largely negative as it shed previous gains, declining by 2.47 per cent.
This dragged the year-to-date return into the negative territory at -0.59 per cent. With two gainers and 11 losers, the sector breadth stood at 0.18x.
The insurance sector, after two consecutive weeks of positive performance, closed on a bearish note as it declined by 1.35 per cent to close at 121.98bps.
The conglomerates industry followed with 93.206 million shares worth N138.014m in 916 deals.
The third place was occupied by consumer goods industry with a turnover of 71.404 million shares worth N3.170bn in 2,698 deals.
Trading in the top three equities, namely United Bank for Africa Plc, Zenith Bank Plc and Consolidated Hallmark Insurance Plc, (measured by volume) accounted for 447.620 million shares worth N4.453bn in 3,193 deals, contributing 30.83 per cent and 30.11 per cent to the total equity turnover volume and value, respectively.
There were 16 gainers and 50 losers in the market last week, compared to the 40 gainers and 25 losers recorded in the previous week.
The top five gainers were Associated Bus Company Plc, Mutual Benefits Assurance Plc, Beta Glass Plc, Sterling Bank Plc and UACN Property Development Company Plc, which saw respective gains of 24.14 per cent, 10 per cent, 9.09 per cent, 8.41 per cent and 8.18 per cent.
The top five losers were Consolidated Hallmark Insurance Plc, Niger Insurance Plc, Dangote Flour Mills Plc, Ikeja Hotel Plc and Academy Press Plc, whose respective share prices shed 17.14 per cent, 15.38 per cent, 10.77 per cent, 10.71 per cent and 10 per cent.
Analysts at Vetiva Capital Management Plc said, “In line with trend in the past few weeks, we see the possibility of a recovery in the market this week driven by bargain hunters.
“That said, though we expect cautious sentiment to remain prevalent ahead of the elections, we foresee select fund managers taking positions in beaten down stocks as the elections draw closer.”
Zenith Bank Signs MOU With CFA Institute to Develop Finance and Investment Professionals
Zenith Bank Plc has signed a Memorandum of Understanding (MoU) with the Chartered Financial Analyst (CFA) Institute to promote efforts and activities that support the formation, training, and updating of human capital in finance and investment for the overall development of the Nigerian financial services sector.
The MoU, was signed by the Group Managing Director/CEO of Zenith Bank Plc, Dr. Ebenezer Onyeagwu; the President/CEO of the CFA Institute, Margaret Franklin; and the President of CFA Society Nigeria, Ibukun Oyedeji on Tuesday, November 28, 2023.
Speaking at the MoU signing ceremony, the Group Managing Director/CEO of Zenith Bank Plc, Dr. Ebenezer Onyeagwu commended the CFA Institute and the CFA Society, Nigeria for their laudable programmes in developing finance and investment professionals in Nigeria.
According to him, your Women in Investment Management Initiative, CFA Institute Research Challenge, CFA Society Nigeria Ethics Challenge and University Affiliation Program are very laudable, and Zenith Bank will continue to partner with the CFA Institute and the CFA Society Nigeria to ensure that young finance and investment professionals get the needed support for their career development.
In his words, “As a good corporate citizen, Zenith Bank remains committed to furthering the economic, cultural and social development of the society. As such, we continue to support projects and initiatives that have long-term social and economic benefits for our various publics and stakeholders. Partnering with the CFA Institute and the CFA Society Nigeria is therefore a demonstration of our commitment to building professional excellence in the finance services industry in Nigeria”.
At the CFA Institute Africa Investment Conference, during the ‘Journey to the Top: A Discourse with CEOs’ segment, Dr. Onyeagwu inspired future finance and investment professionals to uphold the highest standards of integrity.
He stressed the importance of making difficult yet high-quality decisions, building robust networks, and dedicating themselves to hard work for career success.
In his words, “as upcoming professionals, the opportunities are immense for you. Africa doesn’t get bigger than Nigeria. There is scarcity of the right kind of people that have the talent, that have the character and the leadership to provide leadership in organizations. Make a decision to be one of those, make a decision to be different. You must be driven by your passion; you must delay gratification. In Zenith what is driving us is the strive for excellence. It is not about who you are and where you come from. We have the best class of talents you can think of anywhere in the world.”
He assured the young finance and investment professionals that Zenith Bank will offer immediate employment opportunity to CFA Charter Holders and those who qualify as Chartered Accountants.
Also speaking on the MoU, the President/CEO, CFA Institute, Margaret Franklin reiterated the Institute’s commitment to the professional development of students and upcoming professionals.
In her words, “there are many things that we do for students, we invest heavily in students and why is that? Because they are our future. The mission of the CFA Institute is to lead the investment industry with the highest standards of ethics, education and professional excellence for the ultimate benefit of society and that starts with our CFA programme”.
She commended Zenith Bank for its continued support to the CFA Society Nigeria and sponsorship of the CFA Institute Research Challenge over the years.
She also commended the bank for being one of the top employers of CFA members in the country. She expressed her admiration of the culture of excellence in Zenith Bank.
Also speaking at the MoU signing ceremony, the President of CFA Society Nigeria, Ibukun Oyedeji commended Zenith Bank for its partnership with CFA Society Nigeria and its commitment to the development of young finance professionals in the country.
The the CFA Institute Africa Investment Conference is being hosted by the CFA Institute and CFA Societies from Ghana, East Africa, South Africa and Mauritius. The conference has representatives from over 20 universities in Nigeria (members of their investment clubs being supported by CFA Society).
Currency Reforms Pose Challenges and Opportunities for Investment Banking, Says Former AIHN President
The ex-President of the Association of Issuing Houses of Nigeria (AIHN), Ike Chioke, has shared insights on the dual impact of the Central Bank of Nigeria’s currency reforms, highlighting both challenges and opportunities for the investment banking industry.
Chioke made these remarks during the recently held Investment Banking Awards Night in Lagos.
Acknowledging the ongoing currency reforms, he emphasized the transformative nature of these policies, stating, “Nigeria is bracing up to the impacts of the new government and they are already making changes to what I will call non-unorthodox policies.”
He pointed out that the free-floating of the naira and the removal of fuel subsidies, while causing short-term hardships, are integral components of the evolving economic landscape.
Chioke urged industry professionals to leverage their skills and expertise to navigate and capitalize on the opportunities presented by these reforms.
“The investment banking industry is a critical one for the Nigerian economy, and we represent the best brains and the best expertise in that space,” he stated, emphasizing the pivotal role of investment banking in steering the nation’s economic course.
Meanwhile, the Investment Banking Awards Night recognized outstanding achievements in the Debt Capital Market and Equity Capital Markets categories.
Chapel Hill Denham Advisory Limited emerged as the winner in the Debt Capital Market Category, securing accolades such as Private Company Bond House 2022 Award, Best Commercial Paper House 2022 Award, and Best Bond House 2022 Award.
StanbicIBTC Capital Limited received the Best Commercial Paper House 2022 Award.
In the Equity Capital Markets Category, the Equity Deal of 2022 Award was shared among three distinguished companies: Stanbic IBTC Capital Limited, UCML Capital, and Rand Merchant Bank, underscoring their impactful contributions to the equity market.
This celebration of excellence reflects the resilience and dynamism of the Nigerian investment banking sector amid a changing economic landscape.
FirstBank UK Enhances Fixed-Income Workflow Through Bloomberg Integration
FirstBank UK, the UK subsidiary of First Bank Nigeria Limited, has announced its onboarding on Bloomberg’s Trade Order Management System (TOMS) to enhance its fixed-income workflow.
The integration with TOMS is expected to provide FirstBank UK with access to a comprehensive suite of data and analytics, communications, order, and execution management solutions, streamlining its fixed-income bonds business.
As a niche market-maker for its customers in Africa, FirstBank UK plays a vital role in providing market liquidity in cash bonds, particularly in Nigerian, Angolan, Egyptian, and Ghanaian Eurobonds, to manage risk and optimize its inventory.
Olukorede Adenowo, CEO-designate at FirstBank UK, expressed enthusiasm about the integration, stating, “Bloomberg TOMS provides FirstBank UK with a complete end-to-end trading workflow covering African bonds in most of our home markets. The solution enables us to focus on expanding our footprint in the African Fixed Income landscape and deliver a first-in-kind service to our customers in Africa.”
Bloomberg’s TOMS is renowned for enhancing operational efficiency across enterprises. Lisa Bravo, Global Head of Sell-Side OMS at Bloomberg, commented, “We are pleased to help FirstBank UK enhance operational efficiency across its enterprise with our award-winning sell-side order management solution TOMS.”
FirstBank UK had previously digitized its order management workflow by offering clients access to liquidity on its Eurobond Single-Dealer Platform.
The recent integration with Bloomberg TOMS aims to centralize order handling, aggregated custom analytics, and liquidity tools within a single interface, facilitating real-time access to liquidity for customers.
Robert Hagenaars, Head of Markets at FirstBank UK, highlighted the unique feature of real-time access to liquidity in their markets, providing a distinct advantage for their customers.
This move signifies FirstBank UK’s commitment to leveraging advanced technological solutions to fortify its position in the African Fixed Income market and deliver enhanced services to its clientele.
Oppenheimer Acquires Full Control of Nigeria’s GZ Industries in Bet on Economic Revival
MicroStrategy Chairman Michael Saylor Bolsters Bitcoin Bet with $593.3 Million Purchase
Coinbase’s November Surge Sparks Investor Enthusiasm Amid Crypto Volatility
Finance4 weeks ago
Black Market Exchange Rate Today 6th November 2023
Business2 weeks ago
Nigeria’s Logistics Sector Holds Untapped N3tn Potential, Says Courier and Logistics Management Institute
Black Market Rate3 weeks ago
Black Market Exchange Rate Today 14th November 2023
News3 weeks ago
Millionaire Powerplay Limited Unveils Unprecedented Odds in American Lotto’s Instant Cashless Payout
News4 weeks ago
N-Power Batch C1 Programme Successfully Concluded, Investigation Ensures Eligible Beneficiaries Receive Payments
Black Market Rate3 weeks ago
Black Market Exchange Rate Today 9th November 2023
Forex2 weeks ago
Black Market Exchange Rate Today 16th November 2023
Forex3 weeks ago
Black Market Exchange Rate Today 10th November 2023