Business
Financial sector dominates weekly market activities with N21.8bn
The financial services industry dominated in volume terms at the end of last week’s transactions on the equities sector of Nigeria’s capital market.
It led the activity chart with 2.1 billion shares valued at n21.8 billion traded in 14,008 deals, thus contributing 69.2 per cent to the total equity turnover.
Following the banking sector was the conglomerate industry, accounting for 398.6 million shares worth N1.2 billion in 3,129 deals.
The services industry ranked third with a turnover of 270.1 million shares worth N1.9 billion in 1,317 deals.
Trading in the top three equities, namely Fidelity Bank plc, Access Holdings plc and Transnational Corporation plc (measured by volume) accounted for 1.3 billion shares worth N8.2 billion in 5,286 deals, contributing 43.8 per cent to the total equity turnover.
However, a total turnover of three billion shares worth N33.6 billion was recorded in 29,505 deals by investors on the floor of the exchange, lower than a total of 3.6 billion units, valued at N36.4 billion that changed hands in 27,801 deals during the preceding week.
On the activity chart, losses recorded in the shares of top telecommunication player Airtel Africa (six per cent) dragged the all-share index and market capitalisation by 0.1 per cent to close the week at 52,187.93 and N28.417 trillion respectively.
All other indices finished higher except NGX main board, NGX 30, NGX oil and gas, NGX LOTUS ii, NGX Industrial Goods, and NGX growth, which depreciated by 0.64 per cent, 0.09 per cent, 1.67 per cent, 0.66 per cent, 0.03 per cent and 0.32 per cent respectively, while the NGX ASEM and NGX sovereign bond indices closed flat.
Analysts attributed the downturn to weak macroeconomic indices and uncertainty in the global market.
Cordros Capital said, “Looking ahead, we believe investors will focus on the outcome of the MPC meeting scheduled to hold next week (this week) to gain further clarity on the movement of yields in the fixed-income market.
“As a result, we expect cautious trading from domestic investors in the short term. Overall, we reiterate the need for positioning in only fundamentally sound stocks as the uninspiring macro story remains a significant headwind for corporate earnings.”
Vetiva dealings and brokerage said, “Sectoral performance was relatively bullish this week (asides from the telecoms and oil and gas sectors), as buy-interest in the banking sector was sustained.
“We expect a slow start next week as investors look to take profit on some recent gainers, as that has been the trend in the market lately.”
Afrinvest said, “We anticipate mild gains on the local bourse as investor hunt for bargains in relatively cheap and fundamentally sound stocks.”
A total of 2.9 million units of exchange traded products (etfs) valued at N55.7 million were traded in 44 deals compared to a total of 31,234 units valued at n2.9 million transacted last week, in 68 deals.
Also, 126,110 units of bonds valued at n130.9 million were traded in 18 deals compared with a total of 22,604 units valued at n21.8 million transacted, last week in 20 deals.
Forty-four equities appreciated lower than 48 equities in the previous week. Also, 27 equities depreciated lower than 30 in the previous week, while 85 equities remained unchanged, higher than 78 recorded in the previous week.
The Central Bank of Nigeria (CBN) has announced new measures to enhance local currency liquidity for the settlement of diaspora remittances.
The measures will allow eligible international money transfer operators (IMTOs) to access naira liquidity at the official window.
This move is part of the regulator’s commitment to the smooth functioning of the foreign exchange (FX) markets and enabling greater remittance flows through formal channels.
According to the CBN, the new measures will widen access to local currency liquidity for the settlement of diaspora remittances.
Eligible IMTO operators will be able to access the CBN window directly or through their Authorized Dealer Banks (ADBs) to execute transactions for the sale of foreign exchange in the market.
The IMTOs are companies that provide cross-border money transfer services, facilitating the transfer of funds from individuals or entities residing abroad to recipients in Nigeria.
The CBN has stipulated rules to guide the process and enable compliance, including same-day settlement for transactions executed before 12 noon on a trading date.
Pricing on the CBN portal will be reflective of NAFEX traded rates observable on an acceptable market benchmark.
The operation of this market segment will follow the existing arrangement in place for authorized dealers with Foreign Portfolio Investment participating in the primary market securities auctions.
Regulatory returns to be submitted to the CBN by all participants on a daily basis are mandatory and must contain all relevant information on the sources of funds.
The CBN’s move is expected to significantly improve the liquidity of local currency for diaspora remittances, enhancing the overall efficiency and reliability of the foreign exchange market in the country.
The bank has been collaborating with IMTOs to double remittance flows through formal channels into Nigeria, with the goal of increasing transparency and competitiveness in the FX market.
In May, the CBN granted approval in principle (AIP) to 14 new IMTOs, and the governor of the CBN, Olayemi Cardoso, has expressed confidence in the bank’s ability to double remittance flows into Nigeria within a year.
By Esther Agbo
The Chartered Pension Institute of Nigeria (CPIN) will recognise notable individuals who have significantly contributed to the success of Nigeria’s contributory pension scheme.
This honour will be bestowed during the induction program scheduled for June 27, 2024, marking the 20th anniversary of the Contributory Pension Scheme.
The Executive Secretary/CEO of CPIN, Dr. Samson Akinyemi, emphasised that the awards aim to acknowledge the efforts of those who have fostered the growth of Nigeria’s pension industry and its economy.
The institute will also honour senior management from various states, pension fund operators, and private organisations with extensive experience and contributions to the sector.
Practitioners with around 20 years or more in the industry will also receive recognition.
He mentioned that membership in the institute is available to the public, provided they meet the required qualifications.
The highest membership level, to become a fellow, requires candidates to have held an Associate Certificate of the institute for at least seven years and possess advanced academic qualifications, along with substantial senior management experience in pension management or academia.
Dr. Akinyemi further stated that to become an associate, candidates must be employed in a pension management field, pass the institute’s examination, and hold at least a university first degree or HND.
Additionally, undergraduates or school certificate holders employed by pension management companies can apply for the Pension Technician Certificate.
By Matthew Denis
The Management of Shoprite Mall has announced its intention to cease operation in one of its Abuja branches from June 30, 2024.
The branch is situated at Novare Central Mall in Wuse Zone 5.
This was contained in a circular signed by the Chief Executive Officer, Dr Folakemi Fadahunsi, on behalf of the retail supermarket and obtained by our Business Correspondent on Monday.
A staff at the store who pleaded anonymity also confirmed the report, saying, “Yes, it is true, we just heard it here too.”
The popular mall attributed its decision to a thorough evaluation of the store’s financial situation and the current business climate.
It additionally notified vendors that their services would no longer be needed at the store.
The circular read, “We regret to inform you that as of June 30, 2024, Retail Supermarkets Nigeria Limited will be closing its Wuse Store located in Novare Wuse Central Mall, Abuja. This decision has been made after a thorough evaluation of the store’s financial situation and the current business climate. We believe this is the best course of action for our organisation’s long-term growth.
“Effective June 30, 2024, our company will no longer operate in Wuse, Abuja, and we will no longer require your services for the Novare Wuse Central Mall Store. Please note that all existing service contracts will also terminate for the store.”
The circular added the company would be reviewing its accounting records in the next 60 days to settle outstanding balances.
“If your services are specifically tied to the Novare Wuse Central Mall Store and if there is an outstanding balance between our companies, we will carefully review our accounting records over the next 60 days (about 2 months). We will then promptly contact you to confirm the amount owed and discuss a suitable payment schedule.
“We would like to express our gratitude for your past business. It has been a pleasure working with you and your team. If you have any questions or concerns, or if there is anything we can do to assist you during this challenging transition, please do not hesitate to reach out to us, it added.
Recall that multiple multinationals have left Nigeria by either scaling down operations, transferring ownership or selling their stakes, the most recent being the sale of beverage company Diageo’s 58.02 per cent shareholding in Guinness Nigeria to Tolaram Group on June 11, 2024.
