Nigerian Exchange Limited

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

Published

12 months ago

September 15, 2023

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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Nigerian Exchange Limited

Nigerian Exchange Recovers from Early Week Losses, Market Value Hits N55.6 Trillion

Published

1 day ago

September 11, 2024

Samed Olukoya

Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited (NGX) rebounded on Tuesday after opening the week in the red.

The NGX All-Share Index appreciated by 0.62 percent to 96,802.8 points while the market value of listed equities stood at N55.626 trillion.

Investors traded 406,194,548 shares valued at N13.313 billion in 12,241 transactions during Tuesday’s trading session.

Investors continued to show interest in Oando, which emerged as the most traded equity in both volume and value.

A total of 58,485,705 shares worth N5.521 billion were exchanged, with Oando’s stock appreciating by N6, or 6.7 percent, from N89.5 to N95.5 per share.

The second most traded stock on Tuesday was Access Holdings Plc with 30,379,481 shares valued at N557.65 million transacted.

However, Access Holdings’ shares lost 55 kobo, or 2.96 percent, declining from N18.95 to N18 per share.

The Exchange’s year-to-date (YtD) return improved to 29.46 percent.

SFS REIT led the gainers’ chart, increasing by N14.80, or 9.98 percent, from N148.35 to N163.15 per share. This was followed by Custodian Investment, which gained N1.10, or 8.87 percent, rising from N12.40 to N13.50, while RT Briscoe moved from N2.82 to N3.10 per share.

Nigerian Exchange Limited

Investors Lose N112 Billion as Equities Market Declines on Monday

Published

2 days ago

September 10, 2024

Samed Olukoya

The Nigerian equities market opened the week in the red as the Exchange shed N112 billion on Monday.

Investors traded 774,377,516 shares worth N14.65 billion in 10,412 transactions during the trading session.

The market value of listed stocks and the all-share index rose by 0.24 percent to settle at N55.28 trillion and 96,205.85 points, respectively.

Eterna led the gainers with a 10 percent increase, closing the day at N33.00 per share. This was followed by Tantalizers, which also saw a 10 percent rise to N89.50. Oando and FTN Cocoa Processors appreciated by 9.95 percent and 9.93 percent, respectively, closing at N89.50 and N1.66.

On the other hand, Learn Africa led the losers with an 11.18 percent decline, dropping to N4.13 per share.

Julius Berger Nigeria followed, losing 10 percent to close at N153.45. Transcorp Power shed 9.99 percent to settle at N301.70, while McNichols dropped 9.4 percent to close at N1.35.

Further analysis showed that Jaiz Bank was the most traded stock in terms of volume, with investors transacting 247 million shares. Zenith Bank, FBN Holdings, and Guaranty Trust Holding followed with 173 million shares, 41.5 million shares, and 33.9 million shares, respectively.

Last week, the Exchange lost N83 billion as the All-Share Index and market capitalisation dipped by 0.15 percent due to sell-offs in big stocks.

Nigerian Exchange Limited

Transcorp Power Extends Decline, Market Value Dips to N2.26 Trillion

Published

2 days ago

September 10, 2024

Samed Olukoya

Transcorp Power Plc on Monday extended its decline as the company’s directors offloaded their shares to increase liquidity.

The share dipped by 9.99% from N335.2 per share it opened the day to close at N301.7 a share.

Transcorp Power has been trading at about a 22% discount to its highest share price since listing, prompting investors to take profits before further potential market corrections.

The NGX now values Transcorp Power’s outstanding 7.5 billion shares at N2.262 trillion, down from its previous highs.

Market analysts believe this correction was inevitable, given the thin trading activity compared to the company’s substantial market value.

The drop is being viewed as a natural market adjustment, but the scale of the decline has left many investors and market watchers concerned about future movements in Transcorp Power’s stock price.

Despite the decline, Transcorp Power remains viable in the utilities sector, and the current market shake-up may present a buying opportunity for investors looking to capitalize on the lower price.

The company has yet to release an official statement addressing the stock decline, but market participants will be watching closely to see how Transcorp Power navigates this period of volatility.

Investors will also be keen to understand whether the company’s fundamentals can support a rebound in the near future, especially as the broader market faces challenges related to economic uncertainty and profit-taking activities.