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capital market

Investors lose N44bn amid profit-taking in banks’ shares



By Kayode Tokede

Trading on the Nigerian Stock Exchange (NSE) maintained negative mood on Tuesday with market capitalisation dropping N44billion, amid sell pressure in banking equities.

Specifically, the market capitalisation shed N44 billion or 0.33 per cent to close at N13.301 trillion against N13.345 trillion posted on Monday.

Consequently, the NSE All-Share which opened at 25,582.23 basis points lost 84.91 basis points or 0.33 per cent to close at 25,497.32 basis points.

Sector performances were, however, positive today as the Banking sector (-3.42 per cent) was the lone loser, while Consumer Goods (+0.43 per cent), Oil & Gas (+0.19 per cent) and Industrial (+0.01 per cent) sectors all closed in green territory.

The downturn was impacted by losses recorded in large and medium capitalised stocks, amongst which are; Guaranty Trust Bank, Guinness, Zenith Bank, Union Bank of Nigeria and Arbico.

Consequently, the market breadth closed negative with 10 gainers in contrast with 19 losers.

Arbico led the laggards’ chart in percentage terms, losing 9.65 per cent to close at N1.03 per share.

Royal Exchange followed with a loss of 9.09 per cent to close at 30k, while Guaranty Trust Bank shed 6.18 per cent to close at N24.30 per share.

Japaul Oil dipped 4.76 per cent to close at 20k, while union Bank shed 3.92 per cent each to close at N4.90 per share.

On the other hand, Honeywell Flour Mill dominated the gainers’ chart in percentage terms, gaining 4.44 per cent to close at 94k per share.

Transcorp followed with 3.45 per cent to close at 60k, while Wapic Insurance increased by 3.03 per cent to close at 34k per share.

Chemical and Allied Products grew by 2.65 per cent to close at N17.45, while Nigerian Breweries chalked up 2.50 per cent to close at N41 per share.

Transactions in the shares of Custodian Investment topped the activity chart with 40.13 million shares valued at N192.65 million.

FBN Holdings came second with 28.24 million shares worth N141.54 million, while Zenith Bank traded 26.05 million shares valued at N444.79 million.

Access Bank sold 25.06 million shares worth N170.11 million, while Transcorp transacted 19.03 million shares worth N11.21 million.

In all, the total volume of shares traded dipped 1.18 per cent with an exchange of 251.96 million shares valued at N2.04 billion in 4,185 deals.

This was against a total of 254.97 million shares worth N2.0 billion exchanged in 4,699 deals.

“The equities market closed down today on the back of the losses recorded in the Banking sector. While we expect that investor sentiments would largely be driven by reactions to H1 2020 results in the near term, we reiterate that this may be one of the best periods to pick up some quality names with a medium to long term investment horizon,” analysts at InvestmentOne research explained.

capital market

Ecobank declares N182.92bn PAT in Q3 2023



Ecobank Transnational Incorporated, has recorded a profit of N182.92 billion in its third quarter 2023 results.

According to the results posted on the Nigerian Exchange Limited (NGX) website, the Bank announced a 59 percent gross earnings growth in Q3 2023 Results.

The Gross earnings also grew by 59 percent from N761.30 billion to N1.211 trillion.

According to the results, profit before tax stood at N262.17 billion.

Meanwhile in its second quarter results Pre-tax profit increased to N92.52 billion from N56.89 billion profit in Q2 2022.

The increase in second-quarter profits helped its half-year profit before tax to rise by 38 percent to N150.31 billion compared to N108.96 billion in the same period last year.

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capital market

Market capitalisation gains N44.16bn as NGX ASI advances by 0.11%



Since the recent announcement of recapitalisation by the Central Bank of Nigeria Governor, the market had continued to see a rise in investment moves amongst banks thereby boosting the market capitalisation of the NGX.

As at yesterday’s trading, the NGX Market CAP recorded a gain of N44.16billion in Naira terms while the NGX All-Share Index (ASI) advanced by 0.11 percent.

Compared to the previous day’s gain of 0.34 percent, which closed at 71,284.56 basis points, the NGXASI now stands at 39.25 percent.

The total volume of stocks traded also advanced by 49.77 percent to close at N540.09 million, valued at N10.24 billion and traded in 6,516 deals. GTCO was the most traded stock by volume and value, with N67.23 million and N2.60 billion units traded.

At the close of trading, the market recorded 25 gainers, 31 losers, and 55 unchanged. NNFM topped the gainers list, while NSLTECH topped the list of losers.

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capital market

Naira hits N831.47/$1 in official market



The Nigerian naira appreciated against the dollar on Wednesday, 29th November 2023, closing at N831.47/$1 at the official market.

The positive trajectory aligns with expectations among experts, who anticipated that the Central Bank of Nigeria’s (CBN) recent initiative to clear a portion of its FX backlog would boost confidence in the currency.

The domestic currency appreciated 6.06 percent to close at N831.47 to a dollar at the close of business on Wednesday, data from the NAFEM where forex is officially traded, showed.

This represents an N50.41 gain or a 6.06 percent increase in the local currency compared to the N841.14 it closed on Tuesday.

The intraday high recorded was N1159/$1, while the intraday low was N700/$1, representing a wide spread of N459/$1.

According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $140.35 million, representing a 18.88 percent growth compared to the previous day.

However, the naira weakened at the parallel forex market where forex is sold unofficially, the exchange rate depreciated by 0.26 percent, quoted at N1160/$1, while peer-to-peer traders quoted around N1159.47/$1.

The Central Bank of Nigeria (CBN) has said it has made tranche payments to 31 banks to clear the backlog of foreign exchange forward obligations.

The apex bank also disclosed that it has set up foreign exchange frameworks to address the FX issues.

Governor of the CBN, Yemi Cardoso, disclosed this on Friday at the bankers’ dinner in Lagos.

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