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Nigerian Exchange Limited

$20 Billion Diaspora Remittance Can Boost Liquidity on The Capital Market

If investment-friendly mechanisms and safety policies are put in place on the Nigeria Exchange Limited, it could attract diaspora remittance

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Nigerian Exchange Limited - Investors King

Although Nigeria’s capital market is one of the most traded capital markets in Africa, it has however witnessed increased volatility and inadequate liquidity which has triggered a persistent downturn in the stock market.

This challenge of inadequate liquidity has impacted negatively on market performance and explained why some prospect-loaded companies like Flutterwave partly shun the Nigeria Exchange Limited.

Investors King had earlier reported that Flutterwave is set to go public on Nasdaq through Initial Public Offering (IPO).

Since the global financial crisis of 2008, there has been an underperformance of some listed stocks on the Nigeria Exchange Limited (NGX). Much of the problem has been attributed to illiquidity and low investors’ confidence.

The development has continued to fuel persistent fall in share prices of listed firms, with several blue-chip stocks recording a 10-year low.

A seven-year review of the banking stocks shows that the shares of Unity Bank Plc, which stood at N2.29 kobo as of 2015, dropped to 43 kobo as at the close of a transaction on Friday, shedding more than 80 per cent in value.

Similarly, Union Bank Plc also shed 35.5 per cent in the same period to close at N5.60 kobo. 

In the consumer goods subsector, PZ Cussons Plc lost 60.72 per cent during the period, dropping from N29.18 kobo to N8.20 kobo while Honeywell depreciated to N2.53 kobo from N3.72 kobo. 

Nonetheless, it should be noted that some companies have performed amazingly well on the NGX in the last seven years. For example, the FUGAZ ( First bank, GTB, UBA, Access, and Zenith Bank,) have all witnessed increased growth. For instance, Zenith Bank shares price which was trading at N14.76 in December 2017 is now trading at N21.50.

Regardless, experts have suggested that the regulators should restrategise and reposition the capital market to leverage the remittance windfall to boost the economy.

Nigeria topped sub-Saharan Africa (SSA) in remittances with $20 billion in 2021. This performance was a remarkable improvement from the $17.21 billion recorded in 2020. If investment-friendly mechanisms and safety policies are put in place on the Nigeria Exchange Limited, it could attract diaspora remittance. 

According to Paul Uzom, Head of Equity Trading at Planet Capital, “if dollar-denominated equities or fixed income is introduced in the market, it would attract the diaspora funds into the capital market. Most diaspora investors are only interested in Eurobonds because of a lack of confidence in the local currency”.

Naira has been on a consistent fall in the last few years. In 2015, the Nigerian Naira was trading at an average of N197 to $1. It is, however, trading at an average of N425 today.  

 

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Nigerian Exchange Limited

Geregu Power Finally Lists on Nigerian Stock Market, Adds N250 Billion to NGX Liquidity

Billionaire Femi Otedola-owned energy company, Geregu Power has finally been listed on the Nigerian Exchange Limited (NGX) today.

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Femi Otedola

Billionaire Femi Otedola-owned energy company, Geregu Power has finally been listed on the Nigerian Exchange Limited (NGX) today.

The company listed 2.5bn shares at N100 a unit on the Main Board of the Nigerian Exchange (NGX) on Wednesday, October 5, 2022.  Geregu is the first GenCo to be listed on the NGX Main Board, a segment for well-established companies with demonstrable records of accomplishments.

Investors King reported on Monday that the company planned to list on the stock exchange today.

Geregu entered the Exchange with a market capitalisation of N250 billion and with an international securities identification number (ISIN) – NGGEREGU0000.  

Geregu Power, a leading power generation company (GenCo) in Nigeria, was listed under the utilities sector and Electric Power Generation sub-sector of NGX, with the trading symbol, GEREGU.

The listing has now added N250 billion to the liquidity of the Nigerian Exchange Limited and provides more opportunities for wealth creation.

Commenting on the listing, the Chairman, Board of Directors, Mr. Femi Otedola, CON, said “the listing of the company was the actualization of a vision to bring world-class standards in governance sustainability, and business processes to the Company and the Nigerian electricity sector.” He added that “listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders”. Nigerian Exchange Limited continues to evolve in order to remain an attractive destination for issuers, meet the needs of our valued stakeholders and achieve the highest level of competitiveness.

On his part, Chairman, NGX, Mr. Abubakar Mahmood SAN, OON, said, “We are particularly pleased that Geregu Power has joined the prestigious group of companies listed on our Main Board, which will differentiate it as a professionally run power company with high standards, having met NGX’s listing criteria.

“A Main Board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery, and providing increased returns to shareholders. It is our expectation that the Geregu Power listing will encourage other power generation and distribution companies to list their shares on the Exchange, thereby opening the sector up to cheaper, long-term capital that will boost infrastructural development and value creation.”

Mr. Temi Popoola, the Chief Executive Officer, NGX, highlighted the significance of the listing to the entire nation.

He said, “Today’s listing is a promising development in the country’s power sector and we are delighted to welcome Geregu Power Plc to the Exchange. Having Geregu listed in our market is proof of NGX’s commitment to building a robust and inclusive market and creating avenues for sustainable investment.

“This listing will enhance liquidity for Geregu, increase its visibility among global investors, elevate its value and boost transparency, as our marketplace is a sterling platform for raising capital and enabling sustainable growth for national development. As a listing platform of choice, we are committed to working with companies at various stages of growth to explore the different opportunities in the capital market to meet their business objectives.”

 

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Nigerian Exchange Limited

eTranzact Lists 2,565,433,333 Ordinary Shares

eTranzact, multi-application and multi-channel electronic transaction switching and payment processing platform, has listed additional 2,565,433,333 ordinary shares of 50 kobo each of eTranzact International Plc.

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etranzact

eTranzact, multi-application and multi-channel electronic transaction switching and payment processing platform, has listed additional 2,565,433,333 ordinary shares of 50 kobo each of eTranzact International Plc.

The company made the announcement on Friday following the listing on Wednesday, 28 September 2022.

The statement reads, “Trading Licence Holders are hereby notified that additional 2,565,433,333 ordinary shares of 50 kobo each of eTranzact International Plc (eTranzact or the Company) were on Wednesday, 28 September 2022, listed on the Daily Official List of the Nigerian Exchange Limited (NGX).

“The additional shares listed on NGX arose from eTranzact’s conversion of N5,772,225,000 Zero Coupon Unsecured Subordinated Irredeemable Convertible Debenture Stock to Equity at N2.25 per share.

“With this listing of the additional 2,565,433,333 ordinary shares, the total issued and fully paid up shares of eTranzact has now increased from 6,634,566,483 to 9,199,999,816 ordinary shares of 50 kobo each.”

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Nigerian Exchange Limited

Nigerian Stock Market Depreciates Marginally Last Week

The Nigerian Exchange Limited (NGX) depreciated slightly last week as economic uncertainty ahead of the 2023 general elections continues to dictate market directions.

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Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited (NGX) depreciated slightly last week as economic uncertainty ahead of the 2023 general elections continues to dictate market directions.

A total of 1.005 billion shares worth N10.406 billion were exchanged in 17,844 deals during the week, against a total of 562.856 million shares valued at N9.438 billion that exchanged hands in 16,013 deals in the previous week.

Breaking down each of the key sectors, the Financial Services Industry led the activity chart with 757.289 million shares valued at N6.947 billion traded in 9,483 deals. Therefore, contributing 75.38% and 66.76% to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 75.118 million shares worth N82.955 million in 494 deals.

In third place was the Consumer Goods Industry, with a turnover of 50.186 million shares worth N1.457 billion in 2,798 deals.

Jaiz Bank Plc, Guaranty Trust Holding Company Plc, and Zenith Bank Plc. were the three most traded equities during the week. The three accounted for 460.216 million shares worth N4.963 billion in 4,281 deals and contributed 45.81% and 47.69% to the total equity turnover volume and value respectively.

The market value of listed equities appreciated by 0.03 percent to N26.451 trillion last week, while the NGX All-Share Index declined by 0.01% to close the week at 49,024.16 index points.

Similarly, all other indices finished lower with the exception of NGX Main-Board, NGX 30, NGX Oil & Gas and NGX Industrial Goods, which appreciated by 0.25%, 0.04%, 0.20%, and 3.01% while The NGX ASeM, NGX Growth and NGX Sovereign Bond indices closed flat.

Twenty-five equities appreciated in price during the week, higher than Seventeen equities in the previous week. Thirty-three equities depreciated in price lower than Forty-two in the previous week, while ninety-eight equities remained unchanged higher than ninety-seven equities recorded in the previous week.

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