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Sell-offs in MTN, TransPower, others pull equity market down by 0.11%



The stock market on Tuesday declined further by 11 percent, due to sell-offs in stocks of MTN Nigeria, Transnational Power (TransPower), Guaranty Trust Holding Company (GTCO), among others.

Other stocks that contributed to the market’s negative performance are: Unilever, Axa Mansard, Cornerstone Insurance, Royal Exchange Assurance, Nigeria Breweries, Fidelity Bank, Julius Berger, among others.

Specifically, the market capitalisation shed N62 billion or 0.11 percent to close at N59.115 trillion, as against 59.177 trillion recorded on Monday.

Similarly, the All-Share Index, which opened at 104,663.34, also lost 0.11 percent or 110.03 points to close  at 104,553.31.

Consequently, the Year-To-Date (YTD) return declined to 39.83 percent.

Analysis of the market activities showed trade turnover was lower than the previous session, with the value of transactions down by 29.69 percent.

Meanwhile, on the loser’s log, Daar Communications led by 9.86 percent to close at 64k per share, Computer Warehouse Group (CWG) followed by 9.09 per cent to close at N5.50 per share.

Sovereign Trust Insurance also lost 8.51 percent to close at 43k, while UPDC Real Estate Investment Trust trailed by 6.36 percent to close at N5.15 per share.

Also, FIDSON Healthcare Plc dropped 6.25 percent to close at N15 per share.

On the gainer’s log, International Energy Insurance led with 10 percent to close at N1.32 per share.

International Breweries gained 9.89 percent to close at N4.89 per share.

Juli Plc also rose by 9.85 percent to close at N5.91, NEM Insurance appreciated by 9.59 percent to close at N8, while FBN Holdings went up by 9.06 percent to close at N43.95 per share.

Also, a total of 307.01 million shares valued at N7.59 billion were exchanged in 9,548 deals, compared to 287.45 million shares valued at N10.80 billion in 9,077 deals recorded on Monday.

FBNH led the activity log both the volume and value chart with 37.81 million shares traded in value of N1.57 billion, followed by United Bank of Africa(UBA) with 36.85 million shares worth N954.38 million.

Access Corporation sold 28.09 million shares worth N649.27 million, Transcorp traded 21.57 million shares valued at N322.62 million and Fidelity Bank transacted 19.81 million shares worth N200.46 million.

Reacting,  Vice Chairman, Highcap Securities Ltd., Mr David Adonri, said that the downward performance of the market was due to little fatigue experienced after a prolonged rally.

Adonri, in an interview noted that it was propelled by demand pull.

He said that the selloffs were in high capitalisation stocks, noting, “hence, any decline on such stock is blown out of proportion.”

He mentioned that the share price of Tier-one banks, which appreciated over the weeks, also witnessed relief from the declines.

capital market

FG lists N4.214bn April savings bonds on NGX



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.

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LCFE inducts 23 commodities brokers



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.

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Tinubu asks Senate to confirm four board members of SEC



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.

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