Connect with us

Finance

Stock Market Investors Lose N366bn in Three Days

Published

on

Egypt Stocks
  • Stock Market Investors Lose N366bn in Three Days

Equity investors in the Nigerian Stock Exchange lost a total of N366bn in the last three consecutive trading days.

Last week, investors and other stakeholders welcomed the listing of Airtel Africa Plc’s shares on the NSE.

The listing, which took place on Tuesday, added N1.36tn to the total market capitalisation of the Exchange.

Investors had hoped that the listing of Airtel Africa would change the fortunes of the equities market, which had seen about four consecutive weeks of losses.

The market recorded slight gains on the day of the listing but suffered declines in the subsequent trading days.

Airtel Africa, despite gaining 10 per cent on the first day of its listing on the NSE, has lost 18.98 per cent since then as its share price closed at N323.50 on Friday, compared to its listing price of N363.

MTN Nigeria Communications Plc gained 50 basis points, while Dangote Cement Plc and Nestlé Nigeria Plc shed 226bps and 892bps, respectively last week.

Tier-1 banking stocks continued to remain the most actively traded stocks on the Exchange as Guaranty Trust Bank Plc gained 313bps while Zenith Bank Plc shed 181bps last week.

The market continued to trade below its 30,000bps mark, with sentiment remaining bearish as investors continued to await ministerial appointments by President Muhammadu Buhari.

The All Share Index lost 241 basis points last week, with the consumer goods and the oil and gas sectors being the worst-performing sectors.

The banking sector advanced by 79bps last week, making it the best-performing sector.

Volume traded last week fell by 66.36 per cent while value traded fell by 20.23 per cent.

Last week, a total turnover of 988.491 million shares worth N13.839bn in 16,414 deals were traded by investors on the floor of the Exchange in contrast to a total of 1.025 billion shares valued at N9.911bn that exchanged hands the previous week in 19,375 deals.

The financial services industry (measured by volume) led the activity chart with 769.350 million shares valued at N7.238bn traded in 8,530 deals, thus contributing 77.83 per cent and 52.30 per cent to the total equity turnover volume and value, respectively.

The conglomerates industry followed with 55.223 million shares worth N92.483m in 719 deals. The third place was occupied by the Information and Communication Technology industry with a turnover of 42.080 million shares worth N4.144bn in 839 deals.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Total Currency in Circulation Increased by N56.44bn in September

Published

on

Central Bank

Currency in Circulation Rose by N56.44bn in the Month of September to N2.426 trillion

The total currency in circulation increased to N2.426 trillion in the month of September, the Central Bank of Nigeria (CBN) report has shown.

In the report released on Wednesday, the apex bank said the total currency in circulation stood at N2.369 trillion as of the end of August.

The amount then rose by N56.44 billion in September to N2.426 trillion.

A further breakdown of the report revealed that currency in circulation declined by 6 percent in the first quarter of the year to N2.29 trillion, about 7.5 percent below the same quarter of 2019.

The figure stood at N2.35 trillion in May, then rose to N2.39 trillion by the end of July.

While reserve money expanded by 5.9 percent to N12.96 trillion when compared to a 20.7 percent growth recorded in April 2020.

The report also noted that at N10.61 trillion, liabilities to other depository corporations grew 70.5 percent above the previous month’s growth rate of 59.7 percent.

The report said, “The heightened uncertain outlook due to the lockdown encouraged more cash to be held by the public.

“This was evident from the increase in currency in circulation, compared with the level in the preceding month.

“Currency in circulation rose by two per cent to N2.35tn at the end of May 2020, compared with the increase of 0.5 per cent at the end of April 2020.”

Continue Reading

Finance

CBN Directs Banks to go After COVID-19 Financial Criminals

Published

on

Godwin Emefile

Central Bank Asks Banks to Stay Abreast Frauds and Rising COVID-19 Financial Crimes

The Central Bank of Nigeria has directed all financial institutions in Nigeria to update alert protocols in their Anti-Money Laundering/Combating the Financing of Terrorism monitoring tools, in accordance with emerging trends of rising COVID-19 related financial crimes.

In a circular titled, ‘Administrative letters to all banks and other financial institutions’ issued on Monday and signed by J.M. Gana, the Director, Financial Policy and Regulation Department, the apex bank said changes in business activities and financial transactions due to the shift caused by COVID-19 pandemic have led to the surge in financial crimes globally.

Therefore, it said financial institutions must now adapt quickly and keep abreast of the new emerging financial risks and other developments to arrest this new and emerging ML/TF.

According to the circular, this includes strategic investment in data mining and artificial intelligence software to monitor financial transactions effectively and report as quickly as possible.

The central bank said the Nigerian Financial Intelligence Unit, the central repository of suspicious transactions and other financial information, had released a comprehensive report on STRs and others.

It stated that the NFIU had identified cybercrimes, frauds, counterfeiting and substandard goods, diversion of public funds and misuse of non-government organisations funds as some of the ongoing crimes that banks across the nation need to stay abreast and report.

Other suspicious transactions and red flags identified in the report were some e-commerce companies with little or zero history or internet presence suddenly receiving multiple payments from unrelated third parties.

Similarly, it said individuals with zero or little history of financial transactions receiving multiple payments from unrelated third parties. It also noted that customers who suddenly start delaying in the supply or purchases of medical supplies and payment of goods linked to known brands, yet the beneficiary is an individual, not a corporate company should be flagged.

The measures, the apex bank said were necessary due to the rising numbers of unusual transactions from banks’ customers and unscrupulous individuals.

Continue Reading

Finance

Union Bank Secures US$40 Million Facility from IFC Global Trade Finance

Published

on

Union Bank Secures US$40 Million Facility from IFC Global Trade Finance

Union Bank of Nigeria Plc said it has secured a US$40,000,000 finance guarantee facility from the IFC, a member of the World Bank Group.

In a note to the Nigerian Stock Exchange, the lender said the facility would help boost access to finance for local businesses and enable increased international trade for Nigeria.

It explained that the facility “will support Union Bank to establish working partnerships with nearly 300 major international banks within the GTFP network, thereby broadening access to finance and reducing cash collateral requirements for Nigerian businesses.

“The facility will enable the continued flow of trade credit into the Nigerian market at a time when imports are critical, and the country’s exports can generate much-needed foreign exchange.

Under the IFC’s Global Trade Finance Program (GTFP) terms of the agreement, GTFP offers benefiting banks partial or full guarantees covering payment risk on Union Bank’s trade-related transactions.

Accordingly, these guarantees are transaction-specific and may vary depending on underlying instruments like letters of credit, trade-related promissory notes, guarantees, bonds, and advance payment guarantees.”

Emeka Emuwa, Chief Executive Officer of Union Bank, said, “Union Bank is pleased to join the IFC’s Global Trade Finance Program. This is a significant achievement as we continue to expand our trade financing offerings to our
customers. Even in these peculiar times, we remain focused on contributing to economic growth by developing tailored solutions that help our customers harness the teeming opportunities that still exist in the Nigerian market.

Eme Essien Lore, IFC’s Country Manager for Nigeria, said, “Keeping trade moving is essential to growth and job creation, especially during the challenging economic times we are living through today. We welcome Union Bank to IFC’s Global Trade Finance Program and value a partnership that will make a positive impact on Nigeria’s economy.

Continue Reading

Trending