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Nigerian Exchange Limited

Nigeria’s Equities Market Witnesses 2.47% Decline as Investors Take Profit in FBN Holdings, Transcorp, and ETranzact

Investors seized the opportunity to take profits in prominent stocks such as FBN Holdings, Transcorp, and ETranzact, leading to a significant drop in market value.



Stock bull - Investors King

In a surprising turn of events, Nigeria’s equities market witnessed a decline of 2.47 percent or N883 billion on Wednesday, marking the first dip this week.

Investors seized the opportunity to take profits in prominent stocks such as FBN Holdings, Transcorp, and ETranzact, leading to a significant drop in market value.

The negative impact on the Bourse resulted in a decrease in the market’s year-to-date (YtD) positive return, now standing at 24.97 percent. FBN Holdings emerged as the biggest loser on Wednesday as its share price plummeted from N21.50 to N19.35, reflecting a decline of N2.15 or 10 percent while ETranzact closely followed, experiencing a drop from N9.50 to N8.55, shedding 95 kobo or 10 percent.

Similarly, Transcorp’s shares decreased from N4.70 to N4.23, representing a decrease of 47 kobo or 10 percent.

By the end of the trading day, the equities market’s All-Share Index (ASI) and capitalization had fallen from the previous day’s highs of 65,669.29 points and N35.757 trillion, respectively, to 64,046.93 points and N34.874 trillion.

Among the most actively traded stocks, UBA, Japaul Gold, Transcorp, FCMB Group, and Access Corporation took the lead, with investors participating in 13,878 deals that exchanged 1,163,228,654 shares valued at N12.694 billion.

Dangote Cement Launches Series 8 and 9 Commercial Paper Program

Dangote Cement Plc has commenced its Series 8 and 9 Commercial Paper (CP) offer under its Commercial Paper Issuance Programme, with a total value of up to N100 billion. The subscription period for this offering is currently open and is scheduled to close on or before Friday, July 14.

Renowned as Sub-Saharan Africa’s leading cement producer, Dangote Cement operates in ten African countries, boasting a combined capacity of 51.55 million metric tons per annum (35.25 million metric tons in Nigeria). The company maintains a fully integrated business model, overseeing activities ranging from quarrying to manufacturing, sales, and distribution of cement.

Investor Interest Boosts Dangote Cement’s Share Price ahead of Share Buy-Back Program

The announcement of Dangote Cement’s share buy-back program has generated a positive reaction in the market. Analysts from Lagos-based Vetiva Research anticipated this outcome, predicting its impact on Wednesday’s trading session, especially considering the substantial capital gains recorded this year. As a result, investor interest in Dangote Cement shares has pushed the price to N326 per share.

Prior to this surge, Dangote Cement’s share price had experienced significant growth, climbing from a 52-week low of N220 to a 52-week high of N360.7. However, the stock saw a slight decline on Wednesday, reaching N326. As of Friday, July 7, when the commencement date for the share buy-back was announced, the share price stood at N300.1.

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Nigerian Exchange Limited

Dr. Yemi Cardoso’s Nomination Boosts Confidence as Stock Investors Gained N264 Billion



Dr. Olayemi Michael Cardoso

The bullish momentum in the Nigerian Exchange Limited continued on Tuesday as investors pocketed N264 billion in profit following Monday’s gains of N263 billion.

Both the market capitalization and the All-Share Index, which gauge the movement of share prices for all listed companies surged by 0.71 percent to N37.413 trillion and 68,359.22 points, respectively.

This optimistic trading trend emerges as investors increasingly show confidence in the local market and the broader economy, fueled in part by the news of Dr. Yemi Cardoso’s nomination as the Governor of the Central Bank of Nigeria.

As Tuesday’s session drew to a close, the volume of shares traded experienced a significant uptick of 31.33 percent to 676.74 million. However, the number of deals declined by 8.35 percent to 7,659 while the total trade value decreased by 33.97 percent to N5.89 billion.

Market sentiments also leaned towards the bullish side, with 36 gainers outpacing the 27 losers.

Among the top-performing stocks that caught the attention of investors were:

  • Berger Paints Plc, which surged by 9.95 percent to conclude the trading day at N11.60.
  • Oando Plc, which recently released its audited results for 2021, saw a 9.92 percent increase, closing at N13.30.
  • BUA Foods, which gained 6.32 percent to close at N196.70.
  • PZ’s shares appreciated by 1.45 percent per unit, ending at N20.
  • GTCO Plc stock increased in value by 0.43 percent, closing at N35.40.

On the flip side, the top losers included:

  • SCOA Plc, witnessing a 10 percent depreciation in its shares, closing at N1.24.
  • Unilever’s shares recorded an 8.28 percent drop, concluding at N13.30.
  • United Bank for Africa Plc, which lost 1.96 percent in share value, closing at N17.50.
  • FBN Holdings Plc, suffering a 1.69 percent decline, closing at N17.40.
  • Accesscorp’s shares depreciated by 0.29 percent, closing trading at N17.40.

The Nigerian Exchange continues to display its resilience and attractiveness to investors, making it an exciting space to watch for potential opportunities and market trends.

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Nigerian Exchange Limited

Nigerian Stock Market Sheds N409 Billion Last Week



stock bear - Investors King

Investors in the Nigerian stock market lost N409 billion last week after weeks of bullish run following President Bola Ahmed Tinubu’s economic restructuring.

During the week, investors traded 2.933 billion shares worth N47.449 billion in 44,654 deals against a total of 2.644 billion shares valued at N45.450 billion that exchanged hands in 44,189 deals in the previous week.

The Financial Services Industry led the activity chart with 1.955 billion shares valued at N26.384 billion that were traded in 21,707 deals. Therefore, contributing 66.67% and 55.61% to the total equity turnover volume and value, respectively.

The Oil and Gas Industry followed with 281.356 million shares worth N5.307 billion that exchanged hands in 4,423 deals. In third place was the Conglomerates Industry, with a turnover of 280.586 million shares worth N1.763 billion in 3,079 deals.

United Bank for Africa Plc, Transnational Corporation Plc and Access Holdings Plc were the three most traded equities in the week. The three accounted for 1.026 billion shares worth N13.649 billion that were transacted in 9,733 deals and contributed 34.98% and 28.77% to the total equity turnover volume and value respectively.

The NGX All-Share Index declined by 1.10% to close the week at 67,395.74 index points from 68,143.34 index points reported in the previous week while market capitalization depreciated by the same 1.10% or N409 billion to close the week at N36.886 trillion.

Similarly, all other indices finished lower with the exception of NGX Insurance, NGX MERI Growth and NGX Growth which appreciated by 0.46%, 0.55% and 4.15% respectively while the NGX ASeM index closed flat.

Thirty-two equities appreciated in price during the week lower than fifty-two equities in the previous week. Fifty-three equities depreciated in price higher than thirty-five in the previous week, while seventy equities remained unchanged, higher than sixtyeight recorded in the previous week.

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Nigerian Exchange Limited

SEC Aims for 50 Shari’ah-Compliant Listings Worth N5 Trillion by 2025



Securities and Exchange Commission

The Securities and Exchange Commission (SEC) reaffirmed its commitment to achieving a target of 50 listings of Shari’ah-compliant products, with a combined market capitalization estimated at around N5 trillion by 2025.

Mr. Lamido Yuguda, the Director-General of SEC, represented by Mr. Dayo Obisan, the Executive Commissioner of Operations, made this announcement during a capacity-building workshop for local Shariah talent within the non-interest capital market – level II.

The event, held in Abuja, was organized in line with the non-interest capital market (NICM) segment of the revised Capital Market Masterplan (2021 – 2025), which aims to introduce 100 retail Shariah-compliant products and attract over one million direct investors in Shariah-compliant products.

Yuguda explained that in the face of these ambitious targets, the commission is resolved to intensify its developmental efforts, particularly in capacity building.

This initiative aims to nurture competent professionals who can leverage Shariah best practices to facilitate the effective implementation of Shariah-compliant initiatives, ultimately fostering the growth of the NICM sector.

The Director-General noted that the commission would continue to utilize its subsidiary, the Nigerian Capital Market Institute, to develop robust programs related to Non-Interest Finance. These programs are expected to promote capacity-building and enhance the adoption of Shariah-compliant products and processes.

Yuguda highlighted the fundamental distinction between conventional finance and Non-Interest Finance, emphasizing the application of Shariah principles in the latter. He stated, “NICM cannot exist without experts in Islamic commercial jurisprudence (Fiqhul Mu’amalat Al-Maliyya).”

“The objective of this Workshop, therefore, is fast-tracking the development of experts for the Market,” he continued. “We believe this will enhance the development of our local Sharia talent, not only for the Nigerian Capital Market but also for the Nigerian Financial system in general.”

Yuguda underscored the growing interest in NICM products among various investor classes in Nigeria, citing the oversubscription of the FGN and corporate Sukuk issued in previous years as evidence.

He noted that the Level 2 segment of the workshop, which commenced with extensive discussions on Shariah Contracts, is aimed at consolidating participants’ understanding of both theoretical and practical aspects of NICM.

“Armed with this training and subsequent ones to come, the participants would undoubtedly have the potential to provide Shariah advisory services for the Islamic Finance Industry, particularly the Non-Interest Capital Market’s operations as it relates to Shariah principles and rulings,” he added.

Yuguda also highlighted the significant progress made in this area, with Nigerian Islamic Finance ranking 13th on the Global Islamic Finance Development Indicator 2022, surpassing countries like Bangladesh and Turkey.

He concluded by emphasizing the gradual growth of the Non-Interest Finance Sector, which has evolved into a distinct industry within the broader financial landscape. This sector offers viable alternatives to traditional interest-based financial systems.

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