- Equities Rally N191b Gains in Opening Trades
Nigerian equities reopened yesterday on a bullish note as investors responded positively to impending release of corporate earnings and dividend recommendations by major quoted companies. The board of directors of United Bank for Africa (UBA) Plc met yesterday and approved the audited reports and dividend payment for the year ended December 31, 2017.
With More than three gainers to every loser, equities rallied average return of 1.22 per cent, equivalent to net capital gain of N191 billion. The sustained rally nudged the average year-to-date return to 15.85 per cent.
The All Share Index (ASI)-the value-based benchmark index that tracks share prices at the Nigerian Stock Exchange (NSE) rose from its opening index of 43,773.76 points to close at 44,306.48 points. Aggregate market value of all quoted equities also rose from its opening value of N15.692 trillion to close at N15.883 trillion.
Most sectoral indices closed positive, underlining the widespread bargain-hunting that dominated transactions yesterday. The NSE Industrial Goods Index led the gainers with a gain of 1.7 per cent. The NSE Banking Index followed with a gain of 0.9 per cent. The NSE Insurance Index rose by 0.6 per cent while the NSE Oil & Gas Index appreciated by 0.3 per cent. However, the NSE Consumer Goods Index was the only contrarian index with a drop of 0.7 per cent.
There were 46 gainers against 15 losers. Dangote Cement- NSE’s most capitalised stock, led the gainers with a gain of N7.94 to close at N268. Stanbic IBTC Holdings followed with a gain of N1 to close at N45. Forte Oil and UAC of Nigeria rose by 60 kobo each to close at N50 and N17.60. Eterna added 43 kobo to close at N5.89. FBN Holdings rose by 37 kobo to close at N14 while Lafarge Africa and Union Bank of Nigeria gathered 35 kobo each to close at N52.35 and N8.10 respectively.
Total turnover stood at 573.35 million shares valued at N5.88 billion in 6,756 deals. FCMB Group was the most active stock with a turnover of 169.12 million shares valued at N547.03 million. Access Bank followed with a turnover of 42.53 million shares worth N553.48 million while United Bank for Africa (UBA) placed third with 39.52 million shares worth N513.68 million.
On the downside, Guinness Nigeria led the losers with a loss of N2 to close at N110. Nigerian Breweries followed with a drop of N1.75 to close at N150. Dangote Sugar Refinery declined by N1.01 to close at N20.95. Flour Mills of Nigeria dropped by 52 kobo to close at N30.90 while Guaranty Trust bank slipped by 30 kobo to close at N48.70 per share.
“The market gradually recovered from the oversold region with bargain hunting by investors particularly in stocks that declined in prior sessions. Bargain hunting by investors will drive market performance in coming sessions in anticipation of 2017 earnings seasons,” FSDH Securities stated.
Central Bank to Promote Zero Balance Account Opening to Drive Financial Inclusion
Banks Now Accept Zero Balance Account Opening to Deepen Financial Inclusion
In an effort to boost financial inclusion in the country, the Central Bank of Nigeria has said it would start promoting zero balance account opening to encourage and lure the unbanked into the banking system.
The apex bank disclosed this in its report titled ‘Monetary, credit, foreign trade and exchange policy guidelines for fiscal years 2020/2021’.
The report read in part, “As part of its effort towards promoting greater financial inclusion in the country, the bank shall continue to encourage banks to intensify deposit mobilisation during the 2020/2021 fiscal years.
“Accordingly, banks shall allow zero balances for opening new bank accounts and simplify their account opening processes, while adhering to Know-Your-Customer requirements.
“Banks are also encouraged to develop new products that would provide greater access to credit.”
The apex bank said the Shared Agency Network Expansion Facility, launched to deepen provision of financial services in under-served and unserved locations and drive financial inclusion through agent banking, would continue in the 2020/2021 fiscal years.
Banks, mobile money operators and super-agents would also continue to render returns in the prescribed formats and frequency to the CBN.
Investors Oversubscribed for FGN Bonds by N205.87 Billion in October
FG October Bonds Oversubscribed by N205.87 Billion
The Debt Management Office (DMO) has said investors oversubscribed for the Federal Government’s October bonds by N205.87 billion.
The DMO stated this after concluding the monthly FGN bonds auction on Wednesday.
Two instruments of 12.5 per cent FGN March 2035 re-opening 15-year bond and 9.8 per cent FGN July 2045 re-opening 25-year bond were auctioned.
The two bonds of N15bn each with a total auction figure of N30bn received a subscription of N235.87bn.
The 15-year tenor and 25-year tenor bonds received 99 and 67 bids but recorded 21 and 26 successful bids respectively.
The amounts allotted for each of the bids were N20bn and N25bn respectively.
According to the DMO, successful bids for the 15-year tenor bond and 25-year tenor bonds were allotted at the marginal rates of 4.97 per cent and six per cent respectively.
However, it added, the original coupon rates of 12.5 per cent for the 12.5 per cent FGN March 2035 bond and the 9.8 per cent for the 9.8 per cent FGN July 2045 bonds would be maintained.
Lafarge Africa Sustains Growth in Third Quarter, Reports N53.3bn Revenue
Lafarge Africa Grows Revenue by 31.4 Percent to N53.3bn Revenue in Q3 2020
Lafarge Africa Plc, a cement manufacturer headquartered in Lagos, sustained its strong growth in the third quarter (Q3) ended September 30, 2020.
In the company’s financial results released on the Nigerian Stock Exchange on Friday, the cement manufacturer’s revenue rose by 31.4 percent from N45.172 billion posted in the third quarter of 2019 to N59.337 billion in the third quarter of 2020.
Similarly, operating profit grew by 7.2 percent from N7.746 billion in the corresponding quarter to N8.302 billion in the quarter under review. This strong performance continues across the board as net income expanded by 2.8 percent to N4.867 billion, up from N4.734 billion posted in the third quarter of 2019.
Lafarge earnings per share rose by 2.8 percent to 30 kobo in the third quarter, again up from the 29 kobo posted in the same period of 2019.
On the outlook for the company going forward, the company said:
Market demand is expected to remain strong in Q4.
Naira devaluation and inflation remain a concern in Q4.
The implementation of our “HEALTH, COST & CASH” initiatives would continue to deliver
improvement in our performance.
We will maintain a healthy balance sheet.
Speaking on the company’s performance, Khaled El Dokani, CEO, Lafarge Africa Plc, said “Our robust results for the first 9 months reflect the strong recovery of the demand in Q3 and the successful implementation of our “HEALTH, COST & CASH” initiatives. Both have delivered considerable improvement in recurring EBIT, net income and free cash flow, despite the impact of the COVID-19 pandemic and Naira devaluation, particularly in Q3.”
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