Stock Investors Lose N203 Billion Last Week
Investors in the Nigerian Stock Exchange lost N203 billion last week as the downward trend continues across the board.
Investors traded 1.930 billion shares worth N20.656 billion in 24,687 deals during the week, against a total of 1.541 billion shares valued at N18.235 billion that exchanged hands in the previous week in 22,752 transactions.
In terms of volume traded, the Financial Services Industry led the activity chart with 1.450 billion shares valued at N15.070 billion traded in 14,236 deals, therefore, contributing 75.11 percent and 72.96 percent to the total equity turnover volume and value, respectively.
This was followed by the Conglomerates Industry with 154.906 million shares worth N179.673 million and in 798 transactions.
In the third place was Consumer Goods Industry, with a turnover of 111.782 million shares worth N2.270 billion in 3,865 deals.
During the week, the three most traded equities were the Wema Bank Plc, Zenith Bank Plc and First Bank Holding Plc, the three accounted for a combined 782.167 million shares valued at N8.914 billion and exchanged in 4,624 deals.
The three most traded equities contributed 40.52 percent and 43.15 percent to the total equity turnover volume and value, respectively.
The NSE All-Share Index depreciated by 0.96 percent or 386.81 index points from 40,186.70 index points recorded in the previous week to close at 39,799.89 index points last week.
While market valued of listed equities also dipped by 0.96 percent or N203 billion from N21.026 trillion in the previous week to N20.823 trillion last week.
All indices closed lower with the exception of NSE Banking, NSE AFR Bank Value, NSE MERI Growth and NSE Oil/Gas Indices which rose by 0.69 percent, 1.34 percent, 0.66 percent and 0.97 percent while the NSE ASeM and NSE Growth Indices closed flat.
On a monthly basis, the bourse declined by 6.16 percent and 1.17 percent year-to-date. See top gainers and losers below.
Experts Says Yes to Access Bank Shares, Predicts Growth
Analysts at United Capital Plc, an investment banking group, have said Access Bank is a good stock to buy given its recent acquisition and series of adjustments made to its strategies.
The analysts said the bank that recently expanded its operations to Cameroon, Kenya, Zambia and South Africa has the possibility of double-digit capital appreciation of about 14 percent.
“We expect Access Bank to sustain top and bottom-line expansion in 2021. While non-interest income growth should taper going forward, as the economy stabilises, we imagine that rebounding asset yields, supported by massive balance sheet size and gains from expansion activities, should spur interest income growth,” United Capital stated.
The experts said the bank’s well-diversified loan book is expected to sustain asset quality and thus keep non-performing loans and cost of risk within prudential limits.
Therefore, the analysts expect pre and post tax profits to remain stable in 2021, a continuation of 13 percent pre tax profit growth filed in 2020.
“As such, in addition to the already concluded acquisitions, plans are currently in place to enter Morocco, Algeria, Egypt, Ivory Coast, Senegal, Angola, Namibia and Ethiopia. A sum of $60 million was paid to acquire south Africa’s Grobank, a major milestone in the bank’s foray into the south African market and a critical factor in driving intra-African trade by widening its trade finance operations,” United Capital stated.
VFD Group Plc Receives SEC Clearance for its Proposed N4.13Billion Right Issue
Lagos-based proprietary investment company, VFD Group, has received clearance from the Securities & Exchange Commission (SEC) for the proposed right issue of 7,452,054 Ordinary Shares of 50 Kobo each at
N556 per share based on 1 share for every 16 shares held.
The proposed right issue was approved by the Board of Directors at its Extraordinary General Meeting (EGM) which held on 23rd November 2020. The capital raise is part of the long-term strategic plan of VFD Group to harness the opportunities in selected companies that meet VFD Group’s Investment criteria.
The Group Managing Director/CEO, Nonso Okpala, has expressed his gratitude to the regulatory body, SEC, for the clearance, while hinting on the next phase of the business.
“Our expansion drive has been a long time coming and with this clearance, one of our immediate first steps is the enhancement of our systems, and the integration of all our subsidiary offerings under a very effective and technological platform. We are focused on expanding further within the local financial services industry as well as on the African continent,” he disclosed.
VFD Group is a proprietary investment company that focuses on building positive and socially conscious ecosystems by aggregating potentially viable business with the objective of creating innovative products and solutions that are accessible to the everyday Nigerian citizen and entrepreneur.
VFD Group Plc was founded on the values of integrity and good governance, and built on the strength of innovation and network, the goal of VFD Group is to establish a firm foothold in various ecosystems on the continent through their subsidiary companies. VFD Group operates through various portfolio to provide innovative financial services – alternative funding and investment channels – that are accessible to individuals and small businesses that provide the following services: Financial Advisory, Currency Exchange, Debt services, Private Funds Management, Asset Management, Real Estate, International Remittance/ Settlement.
Listed Companies Gained 0.16 Percent on Friday
Companies listed on the Nigerian Stock Exchange (NSE) gained 0.16 percent on Friday to push the All-Share Index from 38,571.89 basis points on Thursday to 38,808.01 index points on Friday.
The Exchange market capitalisation rose to N20.310 trillion with investors trading 262.510 million shares valued at N2.438 billion in 3,525 deals.
Fidelity Bank led the most traded stocks in terms of volume with 46,151,809.00 shares valued at N110,562,441.03.
This was followed by First Bank of Nigeria Holdings’ 33,985,247.00 shares worth N258,398,231.05. See the details below.
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