Transactions on Nigerian Stock Exchange Declined by 13.7 Percent to N232.5 billion in January 2021
The total transactions performed by both foreign and local investors at the Nigerian Stock Exchange (NSE) in January 2021 declined by 13.66 percent from N269.24 billion recorded in December 2020 to N232.46 billion.
The bourse stated in its monthly report titled ‘The Nigerian Stock Exchange’s Domestic & Foreign Portfolio Investment Report.’
A breakdown of the report showed foreign investors’ total transactions stood at N47.52 billion or 20.44 percent of the total transactions performed in the month of January, below the N70.32 billion or 29.86 percent recorded in the same month of 2020.
While domestic transactions accounted for N184.94 billion or 79.56 percent, higher than the N165.14 billion or 70.14 percent posted in the corresponding month of 2020.
Foreign inflow stood at N16.73 billion in January 2021, again below the N23.82 billion recorded in January 2020. However, a total of N30.79 billion was withdrawn by foreign investors from the Exchange in the month under review.
Domestic retail investors dumped N67.44 billion on Nigerian assets in January 2021 while domestic institutional investors invested N117.50 billion.
According to the Exchange, the “total domestic transactions accounted for about 74% of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26% of the total transactions in the same period.”
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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