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Stock Market Investors Lose N528bn in Three Days

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Egypt Stocks
  • Stock Market Investors Lose N528bn in Three Days

Investors in the nation’s stock market lost a total of N5228bn in the last three consecutive days of trading on the floor of the Nigerian Stock Exchange.

The market capitalisation, which opened the week at N11.672tn, shed N205bn to close at N11.467tn on Monday and lost N114bn on Tuesday to close at N11.353tn.

On Wednesday, the market capitalisation of equities listed on the NSE shed N209bn to close at N11.144tn, bringing the total losses since the beginning of the week to N528bn.

The All Share Index shed 1,372.69 basis points in the three days to close at 29,268.73bps on Wednesday, which worsened the year-to-date loss to -5.6 per cent.

However, activity level improved as a total of 542.580 shares valued at N5.663bn exchanged hands in 4,146 deals, which represents a 44.1 per cent and 24.8 per cent increase in volume and value traded, respectively.

The top five trades by volume were Sterling Bank Plc (144.189 million), First City Monument Bank Plc (68.722 million), FBN Holdings Plc (55.016 million), Zenith Bank Plc (35.702 million) and Access Bank Plc (35.404 million), while the top five trades by value were Guaranty Trust Bank Plc (N1.1bn), Nestlé Nigeria Plc (N851.1m), Nigerian Breweries Plc (N778.3m), Zenith Bank (N739m) and FBN Holdings (N415m).

The NSE said in a circular on Wednesday that scheme shares resulting from the merger between Access Bank and Diamond Bank Plc, which were not available for trading on April 2, 2019 due to operational reasons, were made available for trading on Wednesday, which brought about an increase in the amount of Access Bank shares traded.

Sectoral performance was largely bearish as only two out of five indices advanced.

The consumer goods index advanced the most, reversing Tuesday’s losses by 1.20 per cent on the back of buying interests in Nestlé and Nigerian Breweries, while the oil and gas index trailed by 0.3 per cent as upticks in Oando Plc inched the index higher.

On the flip side, the banking index declined the most, dipping further by 4.59 per cent due to sustained losses in United Bank for Africa Plc, GTB and Zenith Bank while the industrial goods index trailed, inching southwards by 4.42 per cent following losses in Cement Company of Northern Nigeria Plc and Cutix Plc.

The Insurance index declined by 1.24 per cent following major sell-offs in AIICO Insurance Plc.

Investor sentiment further declined to 0.3x from 0.4x as only eight stocks advanced against the 26 stocks that declined.

The top five gainers were Nigerian Breweries, Cornerstone Insurance Plc, Sovereign Trust Insurance Plc, Sterling Bank and Nestle, which saw respective gains of 5.45 per cent, five per cent, 4.55 per cent per cent per cent per cent per cent, 3.77 per cent and 3.57 per cent.

The top five losers were Access Bank, Chi Plc, AIICO Insurance, Cement Company of Northern Nigeria and Neimeth Insurance Plc, whose share prices shed 10 per cent, 10 per cent, 9.86 per cent, 9.75 per cent and 9.68 per cent, respectively.

International Breweries hit its lowest level in 21 months, as its share price dropped by 9.62 per cent to close at N23.50.

The company’s share price dropped to N24.19 on June 2, 2017, after which it climbed to a five-year high value of N64 on January 26, 2018.

Analysts at Afrinvest Securities Limited said, “We expect the less than stellar performance of the equities market to continue in Thursday’s session in the absence of any positive development that could upturn market performance.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Finance

Nigerian Ports Authority Secures $700m Loan from Citibank for Lagos Ports Rehabilitation

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Nigerian ports authority

The Nigerian Ports Authority (NPA) has successfully secured a $700 million loan from Citibank to facilitate the rehabilitation of the Lagos ports.

The finance was facilitated by the UK Export Finance to revitalize the Apapa and Tincan Island Ports, two pivotal gateways for maritime trade in Nigeria.

The announcement was made during a signing ceremony held in Lagos, marking a pivotal moment in Nigeria’s efforts to modernize its port infrastructure.

Mohammed Bello-Koko, the Managing Director of the NPA, expressed optimism regarding the prompt commencement of the reconstruction efforts following the finalization of the funding agreement.

The rehabilitation project is expected to address longstanding challenges faced by the Apapa and Tincan Island Ports, including congestion, inadequate infrastructure, and operational inefficiencies. By modernizing these key maritime hubs, Nigeria aims to bolster its trade capabilities, enhance port efficiency, and stimulate economic growth.

Speaking at the ceremony, Bello-Koko highlighted the strategic significance of the Citibank Facility, citing its favorable terms and affordable interest rates as key advantages for the NPA.

Bello-Koko outlined the NPA’s broader strategy to upgrade port facilities beyond Lagos, with discussions underway to secure additional funding for the enhancement of Eastern Ports such as Calabar, Warri, Onne, and Rivers Ports, as well as the reconstruction of Escravos Breakwater.

The collaboration between the NPA and Citibank underscores the importance of public-private partnerships in driving infrastructural development.

Ireti Samuel-Ogbu, Managing Director of Citibank Nigeria Limited, reaffirmed the bank’s commitment to supporting the NPA and the Federal Government in bridging the infrastructural gap.

Samuel-Ogbu commended the NPA’s strategic initiative and underscored Citibank’s dedication to facilitating the project’s success.

 

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Banking Sector

UBA Announces Final Dividend of N2.30 per Share for FY 2023, Totaling N95.8 Billion

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UBA House Marina

UBA (United Bank for Africa) shareholders are set to receive dividends as the bank announces a final dividend of N2.30 per share for the fiscal year 2023.

This translated to a total payout of N95.8 billion, more than the N37.6 billion paid out in 2022.

Despite the robust increase in dividend payments, UBA’s dividend payout to profit after tax (PAT) ratio experienced a decline of 6.3 percentage points, dropping from 22.1% in 2022 to 15.8% in 2023.

Shareholders will receive the dividends based on their shareholdings as of the close of business on Friday, May 10, 2024. The payment is scheduled for May 24, 2024.

UBA urges shareholders who have not completed the e-dividend registration process to obtain the E-Dividend Mandate Form to ensure a smooth disbursement process.

The bank’s unclaimed dividends increased to N14.9 billion in 2023, an 18% increase from the previous year.

The bank reported a profit after tax of N607.7 billion, representing a 257% increase from the N170.3 billion recorded in 2022. This increase in profitability includes a net FX revaluation gain of N26.6 billion.

However, it’s worth noting that the Central Bank of Nigeria (CBN) directive prohibits banks from utilizing FX revaluation gains for dividends payment or operational expenses.

Shareholders are advised to complete the e-dividend registration process or contact the registrar, Africa Prudential Plc, for assistance regarding outstanding dividend warrants or share certificates.

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Finance

President Tinubu Launches National Single Window Project

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Bola Tinubu

President Bola Tinubu inaugurated the National Single Window Project to streamline trade processes and combat bureaucratic bottlenecks.

The initiative promises to unlock significant economic benefits and bolster Nigeria’s position as a global trade leader.

Addressing stakeholders at the Council Chamber of the State House in Abuja, President Tinubu outlined the transformative potential of the Single Window Project.

He explained that Nigeria stands to gain approximately $2.7 billion annually by implementing the initiative, while also saving an estimated $4 billion lost to inefficiencies and corruption plaguing the trade sector.

The National Single Window Project, codenamed a digital trade compliance initiative, will serve as a cross-government website facilitating trade by providing a unified portal for Nigerian and international trade actors.

This centralized platform will offer access to a full range of resources and standardized services from various Nigerian agencies, promising to expedite cargo movement and optimize inter-African trade.

President Tinubu’s directive to dismantle obstacles hindering trade efficiency reflects a commitment to fostering a transparent, secure, and business-friendly environment.

He underscored the urgency of eliminating red tape, bureaucracy, delays, and corruption at Nigerian ports, asserting that the economy cannot afford to sustain such losses.

The President’s call to emulate success stories from countries like Singapore, Korea, Kenya, and Saudi Arabia highlights the transformative potential of the Single Window system.

By joining the ranks of nations that have significantly improved trade efficiency through similar initiatives, Nigeria aims to unlock new avenues for economic growth and prosperity.

Tinubu stated that the National Single Window Project transcends Nigeria’s borders, presenting opportunities for regional integration and inter-African trade optimization. By linking Nigeria’s system with those of other African nations, the initiative seeks to expedite cargo movement and enhance trade facilitation across the continent.

Managing Director of the Nigerian Ports Authority, Bello Koko, provided insights into the practical implications of the Single Window initiative.

He affirmed that imports would be cleared at all seaports within 24 hours, a significant improvement compared to neighboring countries where clearance often takes up to 72 hours.

Koko outlined how the initiative would streamline paperwork, enhance information sharing among government agencies, and foster greater efficiency in trade transactions.

With representatives from key government agencies and bodies forming the project secretariat, the National Single Window Project reflects a collaborative effort to drive comprehensive reform in Nigeria’s trade sector.

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