capital market

Securities lending market value rises to N513m — NGX

Published

2 years ago

August 25, 2021

By Kayode Tokede

The value of the securities lending market of Nigerian Exchange (NGX) Limited has risen to N513million as at 20 August 2021.

According to NGX, most recent reports, there has been an uptick in stakeholders’ participation as 2.3 million units of MTNN valued at N395.6 million was borrowed.

Securities lending is the market practice of transferring shares for a fee from a holder (the lender) to another party (the borrower), with the borrower agreeing to return the securities to the lender either on demand or at the end of the agreed loan term. It essentially means that the owner of a share can temporarily loan out his shares to someone else and earn an income that they ordinarily would not have enjoyed if the shares were left sitting in their portfolio.

Data obtained from the report showed that the volume of units as at 2019 stood at 61,435 valued at N344,555. In 2020, the market grew to 7.38 million units valued at N95.2 million; and as at 20 August 2021, it stands at 6.8 million units valued at N513.1 million. The report also gave the breakdown of the companies that pledged the shares as Zenith Bank Plc with 77.33 million shares, MTNN with 8.89 million shares, Dangote Sugar with 43 million shares, GTCO with 31.09 million shares and UBA pledging about 45 million shares.

It will be recalled that the Head, Trading Business Division at the NGX, Jude Chiemeka, during an interactive session, said that securities lending presented significant benefits to investors in a bull or bear market. He said, “Whether you are a speculative investor looking to make quick gains, or a long-term investor holding stocks, securities lending provides strong potential to deliver benefits to all market players through capital gains and low-risk incremental income. It also plays an important role in the capital market by providing liquidity, which in turn reduces the cost of trading and promotes price discovery.”

NGX, in a bid to widen the pool of securities available for lending and increase participation, issued guidelines which became effective on 7 January 2019. These guidelines were prepared to adequately address stakeholders’ expectations in securities lending transactions and to provide proper education on the procedures and controls involved in securities lending.

capital market

Ecobank declares N182.92bn PAT in Q3 2023

Published

2 days ago

December 1, 2023

NewsDirect

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.

capital market

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

Published

2 days ago

December 1, 2023

NewsDirect

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.

capital market

Naira hits N831.47/$1 in official market

Published

3 days ago

November 30, 2023

NewsDirect

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.