- Stock Market Records First Weekly Gain in April
The nation’s stock market recorded its first weekly gain this month as the All Share Index closed at 30,086.31 basis points.
Investors in the market gained N222bn during the week as it recorded gains on three of four trading sessions.
The Nigerian Stock Exchange closed for the week on Thursday due to the public holiday declared by the Federal Government for Easter celebrations.
The stock market commenced the week on a negative note, as the ASI and market capitalisation lost 14bps and N24bn on Monday.
Subsequently, the market recorded gains on the remaining trading days of the week.
On Tuesday, bargain hunting activities drove the ASI and market capitalisation to a positive terrain, with a gain of 0.85 per cent and N94bn. The buying sentiment was sustained on Wednesday as investors gained N84bn and the broad equity market index recorded a gain of 0.76 per cent.
The ASI wrapped up the week with a positive close on Thursday, climbing 0.39 per cent as major sectoral indices closed in the green zone. Investors gained N43bn as the market capitalisation of equities listed on the NSE increased from N11.257tn from N11.300tn.
In the fixed income market, the Central Bank of Nigeria did not conduct any Open Market Operation auction last week. However, the apex bank conducted its bi-weekly primary market auction on Wednesday, selling the full offer of N57.8bn at stop rates of 10.15 per cent and 12.74 per cent across the 91-day and 182-day tenors.
The open buy-back rate moderated by 10 per cent week-on-week to 9.86 per cent.
Trading in the secondary Treasury bills and bond markets, supported by system liquidity, was largely positive last week, with some pockets of sell pressure on select days.
Overall, average yields declined by nine basis points week-on-week in the Treasury bills space and 21 bps week-on-week on benchmark bonds.
The naira appreciated by one kobo week-on-week at the Importers’ and Exporters’ foreign exchange window to settle at N360.32 and remained flat week-on-week at N359 against the dollar in the parallel market.
The bond market was scantily traded, with yields relatively unchanged on the day, as market players wound up activities ahead of the Easter break.
Slight interest on the 2028 maturity was witnessed, which compressed marginally by about five bps, having traded lower at 14.47 per cent.
Analysts at Zedcrest Capital said, “Upon resumption from the break, we expect the market to open on a slightly weaker note, as market players shift focus to the FGN Bond auction scheduled to hold the following day, with about N100bn of the five-, 10 and 30-year bonds to be offered by the DMO.”
“Barring a renewed OMO auction by the CBN, we expect yields to be relatively stable opening the new session, as demand interests persist, especially on the mid to long end of the curve.”
Analysts at Vetiva Capital Management Limited said with system liquidity still buoyant, it was expected that demand would remain decent in the T-bills market after the Easter break and domestic demand would further sustain activity in the bond market on Tuesday.
They said, “We expect the naira to remain largely stable across the various windows of the currency space as the CBN maintains interventions in the FX market.”
Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary
Stanbic IBTC Holdings Plc on Friday announced that it has obtained all required Regulatory Approvals and a license from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary, Stanbic IBTC Insurance Limited (SIIL).
In a statement signed by Chidi Okezi, Company Secretary, Stanbic IBTC and released on Friday, the bank said “The establishment of this new subsidiary essentially complements the bouquet of product offerings by Stanbic IBTC as it continues its goal of being the leading end-to-end financial solutions provider in Nigeria. In this regard, SIIL will aim to facilitate long term insurance for already financially included individuals and will seek to become the preferred Insurer in the Life Insurance Business.
“Stanbic IBTC Holdings PLC, a member of Standard Bank Group, is a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade deals between Africa, China and select emerging markets. Standard Bank Group is the largest African financial institution by assets. It is rooted in Africa with strategic representation in 21 countries on the African continent.
“Standard Bank has been in operation for over 158 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.”
World Bank to Discuss New $1.5 Billion Loan Request From Nigeria
The Finance Minister, Budget and National Planning, Mrs. Zainab Ahmed, on Friday said the Federal Government has met all the conditions for a fresh loan of $1.5 billion from the World Bank.
The minister disclosed this on Bloomberg TV.
She said the multilateral financial institution is in the final stage of approving the loan. The minister explained that the loan will be discussed in the bank’s next meeting and possibly be approved in the same meeting.
In June, the Senate approved the borrowing plans but the World Bank pushed back demanding Nigeria fulfill the conditions attached to the $3.4 billion loan received from the International Monetary Fund (IMF) in May.
Some of the conditions were to increase revenue generation by upping VAT, the introduction of tariff reflective electricity bill, the removal of subsidy and the unification of the nation’s foreign exchange.
Most of which the Federal Government has done despite protests from most Nigerians who called the new policies anti-people given their current situation.
Nigeria Realises Over N400 Billion from Company Income Tax in the Third Quarter of 2020
The Federal Government realised N416.01 billion from Company Income Tax (CIT) in the third quarter of the year, according to the latest report from the National Bureau of Statistics (NBS).
This was 3.48 percent higher than the N402.03 billion generated in the second quarter of the year and represents a decline of 20.13 percent year-on-year from N520.89 billion realised in the third quarter of 2019.
A breakdown of the report showed the professional services sector including the telecoms generated the highest amount of CIT at N55.52 billion during the quarter, while the manufacturing sector followed with N42.03 billion.
The banking and financial institutions realised N24.05 billion while the mining generated the least and closely followed by Textile and Garment Industry and Local Government Councils with N120.93 million, N167.51 million and N321.72 million generated, respectively.
The report added that out of the total amount realised during the quarter under review, a sum of N244.70 billion was generated as CIT locally. The federal government collected N70.34 billion as foreign CIT payment and the remain N100.97 billion was received as CIT from other payments.
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