capital market

NGX investors gain N154bn, as equity market maintains positive posture

Published

1 year ago

January 12, 2023

By Philemon Adedeji

The Nigerian Equities market reversed the previous day loss as the benchmark All-Share Index appreciated by 283.27 absolute points representing 0.55 per cent to close at 51,729.87 index points from 51,446.60 index points it closed previously.

Gains recorded in heavyweight index such as, BUACEMENT (+3.59 per cent) alongside Tier-1 banking names, ZENITH BANK (+0.21 per cent), Guaranty Trust Holding Company (+1.48 per cent) and First Bank Holding of Nigeria (+0.45 per cent) pushed the broader index into positive territory.

Consequently, the year-to-date (YTD) return rose to 0.93 per cent while market capitalisation value gained N154 billion to close at N28.175 trillion from N28.155 trillion it closed for previous trading.

The market upturn performance was driving by gains recorded in medium and large capitalised stocks amongst are Buacement, Zenith Bank, Thomaswy, Champion Breweries and others.

Analysts at Coronation Research commented that, “2022 was a miserable year for global savers. Central banks hurriedly raised policy rates to combat inflation which caused prices to correct across equity and bond markets. Then inflation corroded whatever nominal returns were left. As we enter 2023, equity valuations and bond yields are far more convincing than a year ago.

“At some point – it is difficult to say exactly when – global markets will anticipate the easing of policy rates and assets will start to perform again. The reset in valuations and yields has created opportunities though not always in the same stocks, or sectors, as were favoured before.

“The Nigerian equity market is due a re-think. Surely, after three successive years of positive returns, it should feature as part of a long-term investment portfolio. Our study of earnings per share gains ahead in 2023 suggests that equities are hardly more expensive than they were a year ago. And our study of gross dividends shows that substantial benefits accrue to those who hold stocks for yield.”

First Bank Holding of Nigeria led the volume chart with 108.925 million units traded while BUACEMENT led the value chart in deals worth N4.073 billion.

The market sentiments as measured by market breadth closed positive as Thomaswy led 20 gainers on the leaders table, while Chellaram topped eight decliners on the laggard’s log.

At the close of trade yesterday, trade volume inched weight by 23 per cent to close at 281,944,800 million share value at N8.258 billion were exchanged in 3,679 deals.

On the positive side, Thomaswy came as the most price gainer at the close of trade which appreciated by 9.48 per cent to close at N1.27 per share, Champion Breweries which followed grew significantly by 9.45 per cent to close at N4.75 per share, While FTNCOCOA processor went up by 7.69 per cent to close at N0.28 per share.

Mutual Benefit Assurance which recorded as the last fourth gainer rose by 6.67 per cent to close at N0.32 per share.

Courtville Business Solution which recorded as the last fifth gainer went up by 6.52 per cent to close at N0.49 per cent.

However, on the negative side, Chellaram came as the highest price loser which dipped by 9.89 per cent to close at N1.64 per share followed by Royalex Exchange which lost 7.41 per cent to close at N1.00 per share, While Wapic Insurance which recorded as the third best loser lost 6.67 per cent to close at N0.42 per share.

Mansard Insurance dropped by 6.54 per cent to close at N2.00 per share, while Rt.briscoe which recorded as the last fifth loser depreciated by 3.57 per cent to close at N0.27 per share.

Transaction in the shares of First Bank Holding of Nigeria topped the activities chart with 108.925 million shares worth N1.220 billion, followed by Buacement which transacted 42.392 million shares valued at N4.073 billion, While Guaranty Trust Holding Company traded 33.984 million shares valued at N810.943 million.

Access Corporation accounted 13.470 million shares worth N122.605 million.

Transcorp plc traded 13.417 million shares valued at N16.045 million.

capital market

FG lists N4.214bn April savings bonds on NGX

Published

23 hours ago

May 16, 2024

NewsDirect

The Federal Government has listed its April 2024 Savings Bonds worth N4.214 billion on the Nigerian Exchange Limited platform.

This was disclosed in the market bulletin signed by Godstime Iwenekhai, Head, Issuers Regulation Department of NGX.

According to the bulletin, “Trading License Holders are hereby notified that the April 2024 Issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on Nigerian Exchange Limited (NGX) on May 13, 2024.”

Details of the Bonds include FGS April 2026, 1.228 million units valued at N1.228 billion at a coupon rate of 17.046 percent, while FGS April 2027, 2.986 million units amounted to N2.986 billion at a coupon rate of 18.046 percent.

The bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria, according to the debt office.

FGN Savings Bond is issued monthly in tenors of two and three years with quarterly payment of coupons (interest) at a rate predetermined and published by the DMO every month.

The retail savings bond product was introduced by the Debt Management Office (DMO) on behalf of the Federal Government in 2017 to democratise its activities in the bond market by making it easily accessible to Nigerians to ensure continuous development of the domestic market and bridge infrastructure deficit which has been a constraint to economic growth.

capital market

LCFE inducts 23 commodities brokers

Published

23 hours ago

May 16, 2024

NewsDirect

As part of its capacity building functions, Lagos Commodities and Futures Exchange (LCFE), has onboarded and inducted another 23 Commodities Brokers, the fourth edition in the series, to increase the number of professionals to specialise in various asset classes in the Nigerian commodities ecosystem.

On the list of those inducted last week were the Managing Director, Dynamic Portfolio Limited, Mr Remi Lasaki and many Chief Executive Officers of stockbroking companies in Nigeria.

In his welcome address, LCFE’s Managing Director and Chief Executive Officer, Mr Akin Akeredolu-Ale, urged the inductees join hands with The Exchange to build a virile commodities market that shall be beneficial to all.

“LCFE is working hard to build a market that will benefit the entire Capital Market and its brokers. Each broker can select a commodity and dedicate their focus on it, thereby enhancing your company’s wealth, your individual skill set and contributing to the growth of the Nigerian Economy.

“Together, let us seize this opportunity to build a vibrant and dynamic marketplace that unlocks new possibilities for investors, enhances economic prosperity, and positions Nigeria as a leader in commodities trading.

“The Exchange is actively engaging with the Securities and Exchange Commission to obtain approval for more products like Lithium, diamond and Oil and Gas commodities. Just yesterday, we signed an MOU with a Global Certification Agent Bureau Veritas to certify lithium and other Solid Mineral commodities to be traded on LCFE. Additionally, we have made significant strides in the Cashew ecosystem, signing an MOU with the Cashew Association of Nigeria (CAN), aggregators, and a major cashew processor.

“Eko Gold also represents a pioneering investment opportunity within our commodities ecosystem, leveraging stability and transparency to diversify options, attract capital, and create value across the value chain. LCFE is fully committed to supporting its growth and providing brokers with the tools and guidance needed for effective promotion of the asset classes,” said Akeredolu-Ale.

Corroborating him, the Chairman, Securities Dealing Houses of Nigeria (ASHON), Mr Sam Onukwue, noted LCFE was established for total transformation of commodities exchanges in Nigeria and boost the country’s Gross Domestic Product (GDP).

“The underpinning drive for establishing the exchange was the need to transform and reposition the commodities market and harness opportunities in the commodities ecosystem. This drive will enhance and crate value for all stakeholders in the ecosystem,” he said.

The newly elected President of Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada, congratulated the inductees and advised them to uphold the ethical standard of the profession and operate with skills and integrity.

Akeredolu-Ale also congratulated the new board and management of Securities and Exchange Commission (SEC), under the new Director General, Dr Emomotimi Agada.

In July last year, the Pan African Exchange inducted 33 commodities brokers, including the first female office holder at Chartered Institute of Stockbrokers (CIS), Mrs Fiona Ahimie.

capital market

Tinubu asks Senate to confirm four board members of SEC

Published

24 hours ago

May 16, 2024

NewsDirect

President Bola Tinubu has asked the Senate to screen and confirm four persons appointed as board members of the Securities and Exchange Commission (SEC), the apex regulator of Nigeria’s Capital Market.

The President’s request was contained in a letter read by the Senate President, Godswill Akpabio during the plenary on Wednesday.

The appointed members of the SEC are Emomotimi Agama, Frana Chukwuogor, Bola Ajomale and Samiya Hassan-Usman.

While Agama was appointed as Director-General, Mr Chukwuogor will serve as Executive Commissioner (Legal and Enforcement) of the Security and Exchange Commission. Ajomale was appointed as Executive Commissioner (Operations) while Hassan-Usman was appointed as Executive Commissioner (Corporate Services).

In April, President Tinubu approved the appointment of seven persons as members of the SEC pending their confirmations by the Senate. But, only four names were transmitted to the Senate for confirmation and Tinubu did not give reasons for not including the names of the other three professionals.

In the letter, the President explained that the appointment complied with the provisions of section (1) of the Investment and Security Act of 2007.

“Confirmation of appointment of the Director-General and Commissioners of the Securities and Exchange Commission.

“By the provision of sections 3 and 5 (1) of theInvestment and Securities Act 2007. I am pleased to present for confirmation by the Senate the under-listed four nominees as Director-General and Commissioners of Securities and Exchange Commission,” he said.

The president urged the lawmakers to expedite the screening and confirmation process.

The Senate President thereafter referred the request to the Senate Committee on Capital Markets to report back to the Senate within two weeks.