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capital market

NGX plunges by N706bn, amid selloffs in MTN



By Philemon Adedeji

At the Nigerian Exchange Limited (NGX) the bearish sentiment continued to dominate the local equities market as the NGX All-Share Index (ASI) succumbed to a second successive loss, falling by 1,297.99 basis points representing 2.03  per cent to close at 62,748.94 basis points from 64,046.93 basis points it closed for previous trading.

Specifically, selloffs in MTNN (-4.64 per cent), ZENITH BANK (-2.04 per cent), and GTCO (-5.56 per cent) dragged the overall market offsetting gains in BUACEMENT (+2.01 per cent), GEREGU POWER (+3.33 per cent), and DANGOTE SUGAR (+9.94 per cent).

Accordingly, the market is on track for the first week of loss in this quarter.  As a result, the year-to-date (YTD) return slipped to 22.43 per cent, while the market capitalization contracted by N706.77 billion to close at N34.17 trillion.

The breakdown  of yesterday’s market performance indicated  that trade turnover settled lower relative to the previous session, with the value of transactions down by 17.69 per cent.

The down tun performance was impacted by price depreciation in medium and large capitalized stocks which are, Omatek Venture, Stanbic ibtc, Zenith Bank, Wema bank, Fidelity bank and others

A total of 798.47 million shares valued at N10.45 billion were exchanged in 10,296 deals.

United Bank United (UBA) (-8.45 per cent) led the volume charts with  99.02m units while Guaraty Trust Holding Company (GTCO) (-5.56 per cent) led the value chart in deals worth N1.77 billion.

On the positive side, Johnholt emerged as the most price loser which depreciated by 10.00 per cent to close at N1.65 per share, followed by Dangote Sugar which appreciated by 9.94 per cent to close at N29.85 per share, while Nascon rose by 9.91 per cent increased to close at N25.50 per share.

Skyway Aviation which recorded as the last fourth gainer rose by 9.80 per cent to close at N13.45 per share, while Gold breweries which recorded as the last fifth gainer grew by 9.74 per cent to close at N2.93 per share.

On the negative side, Omatek Venture, Stanbic IBTC, Wema bank, Fidelity Bank, and Transcohot lost 10.00 per cent each to close at N0.54, N61.20, N4.50, N7.11, N35.55 per share respectively.

Transaction in the shares of United Bank for Africa led the activities chart with 99.015 million shares worth N1.331 billion, First Bank Holding which followed traded 72.688 million shares valued at N1.284 billion, while Transnational Corporation transacted 68.797 million shares valued at N280.804 million.

First City Monument Bank traded 67.892 million shares worth N415.893 million, while Guarany Trust Holding Company sold 51.243 million shares worth N1.770 billion.

capital market

Nestlé Nigeria declares 22.4% sales increase, N79.5bn PAT loss



Nestlé Nigeria PLC, has declared a N547.1 billion sales increase for the 2023 financial year, translating to a 22.4 percent increase of N100 billion compared to the corresponding period of 2022.

The company’s Managing Director, Mr Wassim Elhusseini, made the disclosure in the Nestlé Nigeria PLC Full Year 2023 financial results on Wednesday in Lagos.

Elhusseini revealed that while the company’s operating profit jumped by 41.2 percent, reaching 122.7 billion; its Profit After Tax (PAT) was negatively impacted by the devaluation of the Naira.

He added that while its gross profit totalled N217.2 billion, representing a 39.4 percent increase from N155.8 billion in 2022, the devaluation of the Naira had an adverse impact on its PAT resulting in a loss of N79.5 billion for 2023.

“I thank every member of our team for the unwavering commitment and dedication which resulted in the strong revenue growth and operating profit vs 2022 in spite of the challenging economic environment.

“The devaluation of the Nigerian Naira in 2023 which led to a revaluation of our foreign currency obligations undoubtedly impacted our financing cost and consequently the profit after tax.

“However, we remain optimistic of our capacity to overcome the current economic difficulties and emerge stronger,” he said.

The Nestlé Nigeria Managing Director expressed the company’s dedication to its purpose of unlocking the power of food through responsible local sourcing and confection of high-quality nutritious food and beverages for families across Nigeria.

“We also remain steadfast in optimising our operations to ensure the availability and accessibility of affordable and nutritious products to our consumers in anticipation of a timely turnaround in the business environment,” he said.

Nestlé Nigeria is a leading food and beverage company in Africa, known for its quality, excellence, and commitment to creating shared value.

The company in 2023 received recognition for its contributions to society through its CSV initiatives.

Some of them include Sustainability, Enterprise and Responsibility (SERAS) CSR 2023 Awards for Best Company in Rural Population Integration, Best Company in Food Security, and 2nd Runner-up for Most Responsible Organization in Africa among others.


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Equity market sustains selloffs in Tier-1 banks, down by N720bn



The value of transactions on the Nigerian Exchange Ltd. (NGX) on Wednesday further declined by 4.80 percent due to sustained selloffs in the shares of Tier- one banks.

Specifically, investors traded a total of 396.23 million shares valued at N5.83 billion in 10,549 deals, compared to 280.46 million shares valued at N6.12 billion exchanged in 9,141 deals posted on Tuesday.

Selloffs in the equities of FBN Holdings (FBNH), Guaranty Trust Holding Company (GTCO), and Zenith Bank dragged the market down.

Consequently, investors lost N720 billion or 1.31 percent, as the market capitalisation, which opened at N55.037 trillion, closed at N54.317 trillion.

The All-Share Index also shed 1.31 percent or 1,317 points to close at 99,266.02, as against 100,582.89 recorded in the previous session.

As a result, the Year-To-Date return on the index fell to 32.76 per cent.

Meanwhile, market breadth closed negative with 50 losers and four gainers on the trading floor.

Transcorp led the activity chart in volume with 52.57 million shares traded at the value of N675.58 million, United Bank of Africa (UBA) sold 39.47 million shares worth N823.93 million.

Access Corporation traded 35.29 million shares worth N621 million, while Zenith Bank led in value with sales 30.93 million shares worth N1 billion and Universal Insurance traded 23.22 million shares worth N8.11 million.

On the losers table, Wema Bank, Oando Plc, Nigerian Breweries, The Initiative Plc and Red Star Express Plc led in percentage terms of 10 each to close at N7.02, N9.90, N30.60,N1.80 and N3.42 per share, respectively.

Conversely, PZ Cusson led the gainers table in percentage terms of 10 to close at N29.15, Juli Plc rose by 9.93 percent to close at N3.10, while AXA Mansard gained 1.53 percent to close at N5.30 per share.

Nigerian Aviation Handling Company Plc also garnered 0.69 percent to close at N29, and Nigerian Police Force Microfinance Bank gained 0.55 percent to close at N1.84 per share.

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capital market

ChamsAccess COO reels out company’s innovative solutions



The Chief Operations Officer of ChamsAccess, Mrs Olayemi Odufeso, has highlighted a range of significant developments in the company in recent time, including a strategic shift into provision  of custom solutions for complex financial, digital, security, and technology challenges.

Odufeso,  explained that the overriding objective was to drive further sustainable growth in an organic way. In a statement from the company.

Odufeso who brings her robust industry expertise to bear said, “ChamsAccess established Argone, which is a premium retail brand,  offering a curated selection of cutting-edge devices and accessories. Known  for its seamless customer experience, flexible payment options, and device repairs, Argone caters to tech-savvy consumers, seeking a sophisticated and convenient shopping experience.

“This month, we are launching Argone World, a full-fledged e-commerce platform. This marks a significant leap forward, opening up Argone’s offerings to a wider audience across Nigeria and beyond. The platform will create convenience in purchasing the latest gadgets from the comfort of customers home, and also with the same commitment to quality and service that Argone is known for.”

The executive management and team of ChamsAccess under the stewardship of Odufeso, remain committed to growth, service, excellence and customer satisfaction.

Industry watchers say with other best-in-class products on the horizon, there were exciting years ahead for ChamsAccess and all its stakeholders.

“ChamsAccess is undoubtedly a force to be reckoned with in the Nigerian tech landscape. The company is continuously evolving to empower lives and address critical challenges through its diverse and impactful solutions.”

ChamsAccess, a major player in the Nigerian access and technology solutions scene, has been steadily carving an innovative path since its inception in 2007. The company, initially focused on self-service kiosks and ATMs, has undergone a strategic transformation process.  This has positioned it to empower lives and address critical challenges through its diverse and impactful solutions.

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