- NSE Equities Capitalisation Drops by N234bn, 38 Stocks Fall
The Nigerian Stock Exchange equities market capitalisation dropped by N234bn on Thursday after 38 stocks slipped.
Fidelity Bank Plc, Japaul Oil & Maritime Services Plc, Unilever Nigeria Plc emerged as the worst-performing stocks, shedding 9.3 per cent, 8.7 per cent and 8.5 per cent, respectively.
The market closed on a negative note, extending losses from the previous session as the All-Share Index fell by 1.5 per cent to 42,185.38 basis points while the year-to-date return moderated to 10.3 per cent.
Investors dumped shares of Dangote Cement Plc, Guaranty Trust Bank Plc, Zenith Bank Plc and Unilever as the worth of the shares went down accordingly by 2.3 per cent, 3.5 per cent, 3.9 per cent and 8.5 per cent.
Owing to these losses, which impacted negatively on the day’s performance, investors lost N234bn in value as equities capitalisation fell to N15.1tn. However, activity level was mixed as volume traded rose by 8.4 per cent to 404 million units while value traded fell by 11.9 per cent to N6bn.
The top-traded stocks by volume were Zenith (66.9 million), FBN Holdings Plc (48.4 million) and Regency Alliance Plc (41.2 million) while the top-traded by value were Zenith Bank (N1.9tn), GTBank (N591.8m) and FBN Holdings (N544.2m).
Following the negative sentiment that clouded the equities market, analysts at Afrinvest, in a post, said, “Despite the decline recorded on Thursday, we maintain our expectation for a rebound in market performance as we anticipate bargain hunting in blue chip stocks currently on a losing streak.”
Also, performance across sectors was largely negative as all the major NSE indices closed on negative notes except for the consumer goods index which gained 0.2 per cent, driven by gains in Nigerian Breweries Plc and Nestle Nigeria Plc, which rose respectively by 1.6 per cent and 1.1 per cent.
However, the banking index topped the losers’ chart as price depreciation in GTBank and Zenith Bank dragged the index down by 3.1 per cent. In the same vein, the oil/gas index fell by 1.9 per cent as a result of profit-taking in Seplat Petroleum Development Company Plc and Mobil Nigeria Plc, which shed 2.2 per cent and four per cent, respectively.
The industrial goods and insurance indices fell by 1.3 per cent and 0.8 per cent, respectively, caused by losses in Dangote Cement Plc, Continental Reinsurance Plc and AXA Mansard Insurance Plc, which went down by 2.3 per cent, 4.8 per cent and 1.1 per cent, accordingly.
Investor sentiment stayed flat as 15 stocks advanced against 38 stocks that declined.
NPF Microfinance Bank Plc, Johnholt Nigeria Plc and Dangote Sugar Refinery Plc were the top gainers, advancing by 9.8 per cent, four per cent and 3.8 per cent, respectively.
DSS Arrests EFCC, Acting Chairman, Magu
DSS Arrested Magu, the Acting Chairman of EFCC
The Department of State Services (DSS) has arrested the acting chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, on allegation bordering on financial misappropriation, abuse of power and embesslement.
The Acting Chairman was accused of siphoning part of the money recovered from looters, a Punch reported stated.
The report stated “It was learnt that the security details to Magu put up a stiff resistance during the arrest of their principal, as they objected to the DSS move.
But he is now undergoing interrogation at the DSS Headquarters In Aso Drive.
This is happening barely two weeks after the Attorney-General of the Federation, Abubakar Malami (SAN) reportedly complained to the President, Major General Muhammadu Buhari (retd.) about Magu’s conduct and advised that he should be relieved of his appointment.
The AGF was said to have accused Magu of insubordination and discrepancies in the figures of funds recovered by the EFCC.
Again CBN Debits Banks N118 Billion for Failing to Meet CRR Target
CBN Debits Deposit Money Banks N118bn for Not Meeting CRR Target
The Central Bank of Nigeria (CBN) on Friday debited the nation’s deposit money banks a total sum of N118 billion for failing to meet 27.5 percent Cash Reserve Ratio (CRR) target.
This is the fourth of such action, bringing the total amount debited so far this year to N2.2 trillion.
According to Tunde Abidoye, an analyst at Lagos-based FBN Quest, the move brings “further downward pressure on banks liquidity ratios and earnings.”
“Based on the total sum that each bank has been debited this year, and our NIM assumptions for each bank, we estimate an aggregate opportunity cost of funds of N86bn for our universe of banks coverage,” Abidoye stated in a note to clients.
The central bank continues to debit banks to force them to loan more into the real sector and also reduce their forex purchasing power to better manage the nation’s weak foreign reserves and curb capital outflow. A series of recent reports have pointed to a possible foreign exchange devaluation to ease pressure on the nation’s reserves.
The report shows that the Stanbic IBTC and Guaranty Trust Bank were debited N15 billion each.
Debt Market: Dangote Cement Raises N250 Billion in H1, 2020
Dangote Cement Raises N250 Billion From Debt Market in H1 2020
Dangote Cement raised a total sum of N250 billion from the nation’s debt market in the first half of the year, according to the FMDQ Securities Exchange Limited.
In the statement published on the FMDQ website, the N250 billion debt includes the N100 billion Series 1 Bond raised under Dangote Cement’s N300 billion Bond Programme and the N150 billion Commercial Paper (Series 13-16 Domestic CP Issuance Programme) offered earlier in the year and now listed and quoted on FMDQ Securities.
Mr Michel Puchercos, the Chief Executive Officer, Dangote Cement, was quoted as saying, “This landmark transaction is the largest-ever bond issuance by a corporate issuer in Nigeria.
“It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market and builds further on the success of our domestic commercial paper programme.
“The success of these transactions, in the current challenging environment, illustrates investors’ continuous confidence in Dangote Cement’s strategy, strong cash generation and solid credit profile.”
Mr Kobby Bentsi-Enchill, the Executive Director and Head of Debt Capital Markets, Stanbic IBTC Capital Limited, said, “Stanbic IBTC Capital Limited has a long history of partnering with Dangote Cement Plc, and are delighted to have advised on this landmark corporate bond issuance, which reflects the depth and diversity of the Nigerian debt capital markets.”
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