The equities market in Africa’s largest economy closed in the red on Monday to extend its last week’s decline.
Investors traded 291,881,948 shares worth N2.855 billion in 4,792 transactions during the trading hours of Monday, while the Nigerian Exchange Limited (NGX) All-Share Index dipped by 0.01% to 47,262.61 index points.
The market value of listed equities also depreciated to N25.472 trillion, a N3 billion decline from N25.475 trillion it closed on Friday.
Analysing industry performance, the banking industry gained 67 basis points (bps) on the back of positive growth in Jaiz Bank, Fidelity Bank, Unity Bank, UBA and Zenith Bank. Union Bank and Wema Bank, however, closed in the red.
Also, the consumer goods industry appreciated by 16bps as stocks of Honey Flour, Intbrew and Dangote Sugar posted gains. Nascon and Unilever were the two losers in the sector.
The oil and gas industry surprisingly lost 240bps despite the jump in global oil prices to over $130 a barrel earlier on Monday. Seplat was the single stock that dragged the industry down. Oando gained 0.61%. NGX Industrial was unchanged.
The year-to-date return moderated to 10.64%. See the details of top gainers and losers below.
|CORNERST||N 0.64||N 0.70||0.06||9.38 %|
|WAPIC||N 0.46||N 0.50||0.04||8.70 %|
|FTNCOCOA||N 0.36||N 0.39||0.03||8.33 %|
|HONYFLOUR||N 3.70||N 3.89||0.19||5.14 %|
|MBENEFIT||N 0.25||N 0.26||0.01||4.00 %|
|NIGERINS||N 0.23||N 0.21||-0.02||-8.70 %|
|AIICO||N 0.70||N 0.66||-0.04||-5.71 %|
|LINKASSURE||N 0.58||N 0.55||-0.03||-5.17 %|
|REGALINS||N 0.42||N 0.40||-0.02||-4.76 %|
|AFRIPRUD||N 6.80||N 6.50||-0.30||-4.41 %|
Stock Investors Lose N518 Billion After CBN Raises Interest Rate
The Nigerian stock market shed N518 billion on Tuesday after the Central Bank of Nigeria (CBN) raises interest rate by 150 basis points to 13% to curb the rising inflation rate and sustain capital importation.
Activity at the Nigerian Exchange Limited (NGX) rose over 200% as many stock investors sell off their holdings in anticipation of the projected decline in activities. Investors traded 720,192,027 shares worth N8.867 billion in 6,006 deals during the trading hours of Tuesday, against 263,338,835 shares worth N3.549 billion that exchanged hands in 4,549 billion Monday.
Ecobank topped the most traded stocks with 257,627,691 shares worth 2,963,644,505.25, explaining one of the reasons for the surge in the value traded. Jaiz Bank followed with 77,998,899 shares valued at N69,741,125.75.
The selloff was largely due to the CBN-led monetary policy decision to raise the nation’s borrowing cost. This, stock investors interpreted as a future drop in capital inflow into the Nigeria stock market and subsequently slow down in economic activities.
The market capitalisation of listed stocks depreciated by N518 billion to N28.007 trillion, down from N28.525 trillion it closed on Monday. The NGX All-Share Index also declined by 1.82% to 51,949.64 index points.
Japaul Gold led gainers with N0.03 or 10% gainers to close at N0.33 a share as shown below.
|JAPAULGOLD||N 0.30||N 0.33||0.03||10.00 %|
|IMG||N 9.10||N 10.00||0.90||9.89 %|
|MRS||N 14.95||N 16.40||1.45||9.70 %|
|ABBEYBDS||N 1.65||N 1.80||0.15||9.09 %|
|ACADEMY||N 1.35||N 1.46||0.11||8.15 %|
|GUINNESS||N 98.00||N 88.20||-9.80||-10.00 %|
|GSPECPLC||N 3.07||N 2.77||-0.30||-9.77 %|
|MANSARD||N 2.26||N 2.04||-0.22||-9.73 %|
|CHAMS||N 0.23||N 0.21||-0.02||-8.70 %|
|VERITASKAP||N 0.23||N 0.21||-0.02||-8.70 %|
NGX All-Share Index Depreciated by 0.22% as Investors Lose N64 Billion Last Week
The Nigerian Exchange Limited (NGX) shed 0.22% last week despite activity at the bourse increasing over the preceding week.
Investors transacted 3.021 billion shares worth N31.784 billion in 29,153 deals last week, against a total of 1.816 billion shares valued at N27.194 billion that exchanged hands in 36,286 deals in the previous week.
The Financial Services Industry led the activity chart with 2.244 billion shares valued at N12.399 billion traded in 10,817 deals. Therefore, contributing 74.30% and 39.01% to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 345.806 million shares worth N558.873 million in 1,676 deals. In third place was The Consumer Goods Industry, with a turnover of 149.009 million shares worth N2.750 billion in 5,632 deals.
FCMB Group Plc, Jaiz Bank Plc and Transnational Corporation Plc were the three most traded stocks in the week. The three equities accounted for a combined 1.698 billion shares worth N4.095 billion that were exchanged in 2,188 deals and contributed 56.21% and 12.88% to the total equity turnover volume and value, respectively.
The NGX All-Share Index depreciated by 0.22% to close the week at 52,979.96 index points, down from 53,098.46 index points posted in the previous week. The market value of all listed equities declined by N64 Billion from N28.626 trillion recorded in the previous week to N28.562 trillion last week. The year-t0-date return moderated to 24.03%.
Similarly, all other indices finished lower with the exception of NGX-Main Board, NGX Insurance, NGX MERI Growth and NGX Oil/Gas indices which appreciated at 1.60%, 3.63%, 0.14% and 0.30% while, NGX Asem index and NGX Sovereign bond closed flat.
Thirty-seven equities appreciated in price during the week, lower than fifty equities in the previous week. Forty-two equities depreciated in price, higher than thirty-two equities in the previous week, while seventy-seven equities remained unchanged higher than seventy-four equities recorded in the previous week.
NGX Charges Companies on Full Disclosure of Business Impacts
The Nigeria Exchange Limited (NGX) says organisations must present full reports about their environmental and social impacts.
Speaking at a webinar session organised by the Corporate Secretaries International Association on how businesses and organisations could carry a “full 360 approach to market disclosure, the Chief Executive Officer, NGX Regulation Limited, Ms Tinuade Awe said “Our world today is facing major sustainability challenges including inequality, overpopulation, climate change, and several environmental risks.
Discussing the importance of measuring and reporting sustainability performance for companies she said: “By recognising that capital allocation makes a real impact on the environment and society at large, investors can reap sustainable long-term investment decisions through investments in ESG-themed investments.
“Adopting an ESG-lens in our approach to investment is critical for investors to identify businesses that implement a forward-looking approach to managing long-term risks and leveraging opportunities that ensure long-term economic, environmental, and social responsibility,” she said.
Awe encouraged companies to adopt best practices in their disclosure on ESG issues by ensuring that their sustainability reports capture relevant sustainability disclosures that are relevant to their stakeholders.
“Historically, sustainability reports address a company’s approach to managing the triple bottom line of people, profit and planet. However, disclosures in sustainability reports have evolved over the years to address the needs of a wide array of stakeholders, she said in respect to critical disclosures that should be included in a sustainability report.
“In publishing their sustainability reports, companies should consider a number of relevant disclosures including materiality, sustainability risks, and opportunities as well as a detailed explanation of how companies are addressing the risks and levering the opportunities.
She added that a sustainability report should include disclosures on how sustainability is governed by the board, executive management, and designated officers responsible for managing the organisation’s impact footprint.
The programme was themed, ‘Unlocking ESG for boards from strategy to disclosure’.
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