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NESTLE, MTN push SWOOTs’ capitalisation down by N62.24bn



The combined market capitalisation of stocks worth over one trillion (SWOOTs) depreciated by 0.34 per cent to close at N18.12 trillion from N18.18 trillion the previous week, reflecting a loss of N62.24 billion. Stocks included in this classification are Airtel Africa, BUA Cement, Dangote Cement, Nestle, MTNN Plc, and recently, BUA Foods.

MTNN Plc’s share price, at the end of the trading week, declined by 0.7 per cent to close at N204.00 per share, taking its market capitalisation to N4.15 trillion at the end of the five trading sessions of the week.

The communications company, a competitor with Airtel Nig Plc, has a total market capitalisation of N4.15 trillion, N583 billion lower than Airtel Africa’s current market value.

MTNN Plc is the third-highest in market value on the Nigerian Exchange Limited (NGX). The company released its 2021 FY financial result, reflecting a 22.90 per cent growth in revenue for the period, while profit after tax grew significantly by 45.53 per cent from N205.21 billion in FY 2020 to N298.65 billion in the current period.

Nestle Nigeria Plc’s share price declined by 2.8 per cent to close the week at N1,395.00 per share, amidst sell-offs and buy-interests during the trading week. The Fast-Moving Consumer Goods company currently has a market capitalisation of N1.11 trillion.

Nestle Nigeria Plc is one of the two companies under the NGX Consumer goods Index to be worth over a trillion.

The FY 2021 financial result revealed a profit of N40 billion, representing a marginal 2 per cent increase from the prior-year period as revenue grew by 23 per cent. Earnings per share for the period was at N50.51 and the company is set to pay N25.50 per share as final dividend to its shareholders.

Other companies under the SWOOT classification remained unchanged in share prices and their performances are summarized below:

BUA Foods Plc’s share price remained unchanged to close at N59.50, with the market capitalization standing at N1.07 trillion in market value at the end of the trading week.

Bua Foods is a newly listed company on the exchange; however, the Q4 financial result revealed a 36.37 per cent growth in Profit after Tax from N14.81 billion recorded in the corresponding period of 2020 to N20.20 billion in the period reported.

BUA Cement Plc’s share price remained unchanged to close at N70.75 from N69.95, with the market capitalisation standing at N2.40 trillion at the end of the trading week.

The company’s Q4 2021 financial report revealed a revenue of N70.43 billion, reflecting a growth of 33.15 per cent from N52.89 billion in 2020. Similarly, net income increased by N7.06 billion, reflecting a 37.60 per cent increase from N18.78 billion recorded in the corresponding period of 2020, to N25.84 billcentin the current period.

Dangote Cement Plc’s share price remained unchanged to close at N273.50 at the end of the trading week as the company’s market capitalisation stood at N4.66 trillion. The company, which is a competitor of Bua Cement Plc and Wapco Plc, has a total Market capitalisation of N4.66 trillion.

Dangote Cement Plc is currently the second most-valued company quoted on the exchange and makes up roughly 26 per cent of the total market capitalization of all stocks worth over one trillion.

The FY 2021 financial result revealed released its 2021 FY results reporting a profit of N364 billion during the period, representing a 32 per cent increase Y-o-Y. The company has proposed a final dividend of N20.00 per share for FY 2021, a 25 per cent increase compared to what was paid a year earlier, N16.00.

Airtel Africa Plc’s share price remained unchanged to stand at N1260.00 per share at the end of the trading week, with a market capitalization of N4.74 trillion.

Airtel Africa Plc ended the week as the most capitalised company on the exchange once again, vying for the position with Dangote Cement Plc by N74 billion.

Airtel Africa Plc, telecom giant, has released its 2021 9-month Unaudited Financial Statement revealing a 22.5 per cent growth in revenue from $2.85 billion in 2020 to $3.49 billion in the current period.

Net profit for the nine-month period appreciated significantly by 97.3 per cent from $261 million in 2020 to $514 million.

Money market

FMDQ Exchange records 6.75% MoM decrease in secondary market turnover



By Sodiq Adelakun

In October, FMDQ Exchange reported a total secondary market turnover of N21.70 trillion, a decrease of 6.75 percent (N1.57 trillion) from the previous month and an increase of 60.27 percent (N8.16 trillion) from the same period last year.

The Spot and Derivatives Market contributed N20.48 trillion and N1.22 trillion respectively to the total turnover.

 The Spot FX Market turnover was $4.66 billion (N3.66 trillion), a decrease of 14.96 percent ($0.82 billion) from September 2023.

Further, the US Dollar appreciated against the Naira in the FX market, with the exchange rate ($/N) increasing by 5.34percent ($/N40.41) to close at an average of $/N797.43 in October 2023 from $/N757.02 recorded in September 2023, trading within a range of $/N741.85 – $/N993.82.

Similarly, in the Derivatives Market, total turnover in the FX Market segment was $1.55billion (N1.22trillion), representing a MoM decrease of 39.27percent ($1billion) from September 2023 figures.

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Naira’s floating exchange rate brings uncertainty for investment banking in Nigeria — Ex-AIHN president



The former President of the Association of Issuing Houses of Nigeria, Ike Chioke, has stated that the currency reforms implemented by the Central Bank of Nigeria have brought about both challenges and opportunities for the investment banking industry.

Chioke made this statement at the Investment Banking Awards Night held in Lagos.

He further mentioned that the floating exchange rate of the naira and the elimination of fuel subsidies have had a significant impact on various sectors of the economy.

“Nigeria is bracing up to the impacts of the new government and they are already making changes to what I will call non-unorthodox policies. These policies had also introduced pain and hardship with the free-floating of the naira and removal of fuel subsidy forcing their weaknesses on various sectors of the economy,” he said.

Chioke added that despite the hiccups in the implementation of these reforms, they have thrown up major opportunities for investment banking.

He urged members to apply their best skills and expertise to make the best of the opportunities.

“As you know, the investment banking industry is a critical one for the Nigerian economy and we represent the best brains and the best expertise in that space,” he said.

Meanwhile, in the Debt Capital Market Category of the award, Chapel Hill Denham Advisory Limited won the Private Company Bond House 2022 Award; Best Commercial Paper House 2022 Award, and Best Bond House 2022 Award while the Best Commercial Paper House 2022 Award went to StanbicIBTC Capital Limited.

In the Equity Capital Markets Category, the Equity Deal of 2022 Award was won by three companies- namely Stanbic IBTC Capital Limited, UCML Capital, and Rand Merchant Bank.

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SMEs contribute 46.31% to Nigeria’s GDP — SMEDAN CEO



The Director General/CEO of SMEDAN, Charles Odili, has highlighted the significant contributions of small and medium enterprises (SMEs) to the Nigerian economy.

According to Odili, SMEs make up 46.31 percent of the national GDP and contribute 6.21 percent to exports. These findings were revealed in the recent nMaSMEs survey, which estimated that there are approximately 39.6 million nMSMEs in Nigeria, employing 62.5 million individuals.

This accounts for a substantial 80.2 percent of the country’s labor force. In another development, 50 rural enterprises in Gombe State are participating in a three-day training program organized by SMEDAN and the Gombe State government.

Speaking at the opening ceremony of the training, in Gombe on Wednesday, the Director General and Chief Executive of SMEDAN, Charles Odili said that the programme was designed to provide an end-to-end business development service to the rural entrepreneurs.

Charlie Odili, who was represented by the Ag. Director of Partnership and Coordination, Prof Adeyinka Fusha, also said that the training was targeted at business owners who were at the bottom of the pyramids as a supportive mechanism to enhance rural entrepreneurship, competitiveness, job creation and financial inclusion.

According to him, “As you may be aware, the Nano, Micro, Small, and Medium Enterprises (nMaSMEs) sub-sector has played an important role in contributing to the economic development of many countries around the world.

“The sub sector accounts for the majority of the enterprises in Nigeria and also accounts for the highest number of jobs created in Nigeria’s economy.”

The DG also said that the training has three components, namely; sensitisation, capacity building and empowerment grant.

While declaring the training open, Gombe State Governor, Muhammadu Inuwa Yahaya, said that the programme was timely, following the economic hardship in the country.

“The programme would contribute to the economic development of the state and the country at large,” the Governor said.

Inuwa Yahaya, who was represented by the Permanent Secretary, General Services, office of the SSG, Alhaji Abdulkadir Adamu, appreciated SMEDAN and reiterated the government’s commitment to work with it for more opportunities for rural businesses.

He also said that the state government had organised an investment summit which attracted many investors into the state, saying, “This may not be unconnected with the business friendly environment of the state.”

In his remarks, Commissioner of Trade, Industry and Tourism, Alhaji Nasiru Mohammed, said that the training would enable the rural enterprise to acquire the needed business techniques as well as empower them with knowledge and skills.

He further said that Governor Inuwa Yahaya had empowered over 2,000 Small and Medium Enterprises in the state and also established 1,000 hectares of land Industrial park to serve as an export processing zone.

He said, “This is a platform that will attract domestic and foreign investors to come and invest.”

He commended SMEDAN for organising the training and also encouraged the participant to be attentive, learn the techniques that will improve their businesses.

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