Connect with us

Finance

NSE: Investors Gain N253.7bn as Market Capitalization Hits N12tn

Published

on

stock

As the Nigeria 2019 elections approaches, market capitalization of equities listed on the Nigerian Stock Exchange (NSE) rose above the N12 trillion mark and investors in the nation’s stock market as well,  gained N253.7 billion.

The market capitalization on Tuesday, upsurged to N12.105 trillion from N11.852 trillion on Monday. The All Share Index increased by 2.1 per cent from 31,781.87 basis points on Monday to 32,462.31 basis points on Tuesday, its highest level in four months.

Equities value listed on the NSE  continuously soared eight consecutive days, a rise analysts attributed to the post-election expectations of investors.

Analysts at Afrinvest said, “In recent weeks, we have observed increased inflow into the domestic market despite the political risk. We believe concerns for post-election stability are beginning to moderate, thus the increased appetite for cheap assets.”

Bloomberg, in a report, quoting Olabisi Ayodeji, an analyst at Exotic Capital, said investors may be positioning for an Atiku win.

“The perception among foreign investors is that Atiku brings greater prospects for improved management of an economy that vies with South Africa to be the continent’s largest.

“If Atiku wins, the market should perform better after the elections. Conversely, a Buhari victory may prompt a negative reaction in stocks. The gains will probably be sustained until the weekend as what we will see after that will depend on what the outcome of the election is.” Ayodeji said.

In an earlier report, Citigroup Incorporated analysts said Nigeria’s stock market might rally if Buhari loses the election.

The most traded stocks by volume were Diamond Bank Plc (125.8 million units), Zenith Bank Plc (63.2 million units) and Guaranty Trust Bank Plc (57.1 million units). The most traded stocks by value were Guaranty Trust Bank (N2.2 billion), Zenith Bank (N1.6 billion) and Dangote Cement Plc (N1.5 billion).

The top gainers for the day, all of which increased by 10 per cent each, were Dangote Flour Mills Plc, Jaiz Bank Plc, Livestock Feeds Plc and NPF Microfinance Bank Plc.

The top five losers, all of whose respective share prices shed 8 per cent, 7.85 per cent, 6.06 per cent, 5.94 per cent and 5.19 per cent were Regency Assurance Plc, UACN Property Development Company Plc, Lasaco Assurance Plc, Unity Bank Plc and AIICO Insurance.

Finance

Kenya Bankers Association (KBA), Huawei Ink Partnership Agreement to Promote Tech-Driven Financial Inclusion, Fintech Capacity Building

Published

on

Partnership seeks to promote tech-led financial inclusion as well as Fintech ICT Capacity; The two organizations have convened a summit on ICT and financial inclusion.

The Kenya Bankers Association (KBA) has signed a collaboration agreement with tech-firm Huawei-Kenya that seeks to deepen financial inclusion in the banking sector through further deployment of technology and building fintech capacity.

In the partnership, KBA will work closely with Huawei-Kenya to spearhead industrywide capacity building initiatives aimed at promoting knowledge on financial technology innovation, digital transformation, and other ICT-related programmes in the banking industry.

Under the partnership, KBA and Huawei will also aim to promote financial inclusion activities in line with the KBA Strategic Plan for the period 2020 to 2023. Launched last year, the Plan seeks to promote access to affordable financial services through tech-aided operational efficiency.

Speaking during the signing of the agreement, KBA Chief Executive Officer Dr. Habil Olaka said the cooperation would go a long way in promoting the delivery of efficient banking services in Kenya through knowledge-sharing programmes that will be organized by the two institutions.

“This partnership will further focus on research and knowledge-sharing activities, which will supplement the research initiatives that continue to be spearheaded by the Association’s Centre for Research Financial on Markets and Policy®. In this regard, the collaboration will certainly augment KBA’s and member banks’ knowledge base in engagements with diverse stakeholders from a fact-based perspective,’’ Dr. Olaka added.

The partnership comes on the heels of the the 2020 edition of the Huawei-KBA Online FSI Summit slated for 30th September this Year. The forum is among the initiatives Huawei and KBA are jointly implementing to promote the delivery of efficient banking services through technology under the cooperation agreement.

Huawei-Kenya Chief Executive Officer Mr. Will Meng welcomed the partnership, saying technology will remain a core driver towards enhancing convenient access to financial services in light of disruptive occurrences such as the ongoing Coronavirus Disease pandemic.

‘’The theme of the upcoming summit is ‘’Building Banking Core Competence through Digital Transformation to Accelerate Inclusive Finance’’. It is one of the initiatives we are rolling out in Kenya in partnership with the Association to ensure we optimally leverage on technology to achieve affordable and accessible financial services in the regional economy,’’ said Mr. Lee.

The summit comes at a time when the global economy is coping with the impact of the Coronavirus Disease. Dr. Olaka noted that the banking industry has continued to tap into the potential of technology to uphold business continuity and supporting customers, a culmination of efficient deployment of technology by the banking sector during this period.

“Beyond the COVID-19 disruption, we see technology as an invaluable enabler of financial inclusion. I have no doubt that the summit along with the KBA-Huawei collaboration will play a significant role in our collective efforts to entrench technology in our operations and sustain our contribution to the national development agenda,’’ Dr. Olaka said.

Continue Reading

Finance

CBN Pursues Expansionary Monetary Policy to Boost Output and Moderate Inflation

Published

on

cbn 1

CBN Says it Lowered Interest Rates to Use Expansionary Monetary Policy Boost Output and Moderate Rising Inflation

Following the shocking reduction in the monetary policy rate by 100 basis points to 11.5 percent, the Central Bank of Nigeria has explained the reason for such a decision after months of saying no.

The Governor of the apex bank, Godwin Emefiele said the central bank is pursuing an expansionary monetary policy to abate pressure, up economic productivity and then use expected improved in aggregate supply to moderate the rising inflation rate.

Emefiele said this was necessary to address likely recesssion and contain the rising inflation rate.

He said, “The committee was therefore of the view that to abate the pressure, it had no choice but to pursue an expansionary monetary policy using development finance policy tools, targeted at raising output and aggregate supply to moderate the rate of inflation.

“At present, fiscal policy is constrained and so cannot, on its own, lift the economy out of contraction or recession, given the paucity of funds arising from weak revenue base, current low crude oil prices, lack of fiscal buffers and high burden of debt services.

“Therefore, monetary policy must continue to provide massive support through its development finance activities to achieve growth in the Nigerian economy.

According to the governor, Monetary Policy Committee members were confronted with a policy dilemma after the economy contracted by 6.10 percent in the second quarter and expected to dip again into recession in the second quarter.

It is, therefore, of the view that, if a recession occurs in Q3, the committee would be confronted with proposing policy options in a period of stagflation,” he added.

Continue Reading

Finance

Unity Bank Projects Loss After Tax of N1.80 Billion for Q4, 2020

Published

on

Unity bank

Unity Bank Predicts N1.80 billion Loss After Tax and N1.66 Billion Pretax Loss for Q4, 2020

Unity Bank Plc said it is expecting to lose N1.80 billion in loss after tax in the fourth quarter of 2020.

While the lender said it is targeting N4.98 billion in gross earnings for the quarter, it is projecting a pretax loss of N1.66 billion, according to a recent earnings forecast released on the Nigerian Stock Exchange’s website.

In its fourth-quarter earnings forecast, the bank said it was also targeting N3.36 billion in interest income.

Unity bank earnings rose by 11 percent to N22.8 billion in the first half of 2020, up from N20.55 billion recorded in the same period of 2019.

In the first half, the bank grew profit before tax by seven percent to N1.12 billion from N1.05 billion in the corresponding period of 2019. While profit after tax also rose by seven percent from N967.51 million in H1 2019 to N1.03 billion in H1 2020.

Similarly, Unity Bank posted earnings of N11.01 billion in the first half, representing a 5 percent increase from the N10.50 billion recorded in the same period of 2019.

The bank asset expanded by 48 percent from N293.05 billion in H1 2019 to N445.95 billion in the same period of 2019. While the lender’s loan book grew by 53.7 percent from N70.62 percent in Q2 2019 to

Also, Unity Bank grew deposit by 19 percent from N257.69 billion recorded as of December 2019 to N306.47 billion.

Speaking on the performance, Mrs. Tomi Somefun, the bank’s Managing Director/Chief Executive Officer, said “Despite the inclement economic conditions occasioned by the global pandemic, which almost paused or at best put activities at a slower pace in virtually all sectors of the economy, the bank has been able to ride the waves to maintain its growth trajectory looking at the key performance indicators.

“The assessment, therefore, is that the repositioning efforts which have taken root before the headwinds are equally able to withstand shocks.”

Continue Reading

Trending