Equity Market Resumes Week Negatively, Sheds N57bn

The domestic equity market on Monday opened the week bearish, declining by N57 billion as the fall in the shares price of RTBriscoe, Nigeria Breweries, Stanbic IBTC, Transacorp and others impacted negatively on the market. The market capitalisation of listed equities which went down by 0.15 per cent to N39.050 trillion from N39.107 trillion it closed last week Friday. The NGX All Share Index also depreciated by 104.29  basis points to 71008.70 points from 71112.99 points traded on Friday. An analysis of the investment showed that Mecure led gainers table in percentage terms, gaining 9.95 per cent to close at N6.30 per share, Multiverse followed with a gain of 9.92 per cent to close at N3.99 per unit, ABC Transport added 9.88 per cent to close at N0.89 per unit, C& I Leasing gained 9.84 per cent to close at N5.47 per unit. Northern Nigeria Flour Mills Nigeria Plc increased by 9.83 per cent to close at N26.25 per unit. On the contrary, RTBriscoe recorded the highest loss during the day, dropping by 9.84 per cent to close at N0.55 per share, Prestige insurance trailed with a loss of 9.09 per cent to close at N0.50 per unit, Stanbic IBTC down by 7.08 per cent to close at N65.00, CWG fell by 3.04 percent to N7.70 per share, Caverton Business Solutions declined by 2.78 per cent to close at N1.40 per unit. Volume of trades also dropped by  83.134 million, representing 18.82 percent as investors traded 358.445 million shares valued at N4.357 billion in 6551 deals against 441.579 million shares worth N6.032 billion exchanged hands the previous day in 5883 deals. The result further showed that transactions in the shares of AccessCorp led market activities during with 27.583 million shares valued at N474.629 million, AIICO Insurance followed with 21.931 million shares cost N16.649 million, Japaul Gold traded 21.240 million shares cost N37.212 million, Veritas Kapital exchanged 18.995 million shares valued at N5.881 million while Transnational Corporation of Nigeria exchanged 17.073 million shares valued at N104.631 million.

Nigeria’s Equity Market Gains N6bn

The local equity market, on Thursday advanced by N6 billion as gains recorded in the shares of Nigerian Breweries, C&I Leasing, Northern Nigeria Flour Mills among others lifted market activities. Market capitalisation of listed equities increased by N6 billion or 0.02 per cent to N39.059 trillion from N39.053 trillion reported the previous day. The NGX All Share Index also appreciated by ç basis points to 71025.16 points from 71014.34 points reported the previous day. Volume of transactions increased by 186.494 million, representing 63.72 per cent as investors traded 483.847 million shares valued at N4.378 billion in 6545 deals against 297.353 million shares valued at N6.161 billion in 6172 deals. A review of investment showed that Deep Capital and NSLTech  led gainers table,gaining  10 per cent each to close at N0.44 and N0.33 per unit, C&I Leasing followed with a gain of 9.95 per cent to close at N4.53 per share, Northern Nigeria Flour Mills gained 9.85 per cent to close at N22.75 per unit while SCOA Plc added 9.82 per cent to close at N1.23 per share. On the contrary, ABC Transport recorded the highest loss in percentage terms, dropping by 10 per cent to close at N0.90 per unit, ETranzact trailed with a loss of 9.93 per cent to close at N6.80 per unit, Thomas Way fell by 8.95 per cent to close at N3.46 per share. Guinea Insurance dipped by 8.33 per cent to close at N0.22 per unit, Ellah Lakes fell by 7.89 per cent to close at N3.50 per share. Transactions in the shares of Regal insurance led market activities with 104.341 million shares valued at N36.490 million, Oando Plc followed with account of 55.280 million shares worth N676.637 million, Universal insurance traded 53.351 million shares cost N12.338 million, Japaul Gold exchanged 24.949 million shares cost N46.772 million while United Bank for Africa sold a total of 21.492 million shares cost N445.446 million.

AfDB, IDB, IFA Inject $1bn To Fund Nigeria’s SAPZs

The Africa Development Bank (AfDB), Islamic Development Bank (IDB) and the International Fund for Agricultural Development have voted $1billion to deliver special agro-industrial processing zones in 24 States of Nigeria. This is in addition to an initial $520 million voted by the development partners for the development of eight special agro-industrial processing zones in the country. Mr Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, Office of the Vice-President, in a statement said the President of AfDB, Dr Akinwumi Adesina, disclosed this in the United States. Adesina spoke at the Norman Borlaug International Dialogue, World Food Prize 2023, in Des Moines, Iowa. Vice-President Kashim Shettima, who is attending the event in pursuance of the food security and diversification policy of the Tinubu administration, had on Wednesday delivered his keynote address at the ongoing Dialogue. In a speech titled, “From Dakar to Des Moines”, Adesina said that the decision to pump such huge funds into Nigeria’s agribusiness was part of the resolve to develop Special Agro-Industrial Processing Zones (SAPZs) in 13 countries. He said, “We are investing heavily in the development of SAPZs to support the development of agricultural value chains. “Food processing and value addition, enabling infrastructure and logistics to promote local, regional, and international trade in food. “The African Development Bank Group is investing $853 million in the development of the Special Agro-Industrial Processing Zones. “The bank has mobilized additional co-financing of 661 million dollars, for a total commitment of $1.5 billion.” Adesina said that the bank was deploying effective partnerships at scale, adding that currently it is implementing 25 Special Agro-industrial Processing Zones in 13 countries. “The AfDB and the International Fund for Agricultural Development provided $520 million for the development of eight special agro-industrial processing zones in Nigeria. “The second phase of the program aims to mobilize an additional $1 billion to deliver special agro-industrial processing zones in 24 States of Nigeria.” Adesina regretted that while much progress had been made in African agriculture, 283 million people still go to bed hungry, about a third of the 828 million people that suffer hunger globally. He described the Norman Borlaug International Dialogue World Food Prize 2023, as a journey and narrative combining the power of science, technology, policies and politics to ensure that Africa fully unlocks its agricultural potential, and feeds itself with pride. Adesina thanked Vice-President Kashim Shettima, and the President of Ethiopia, Sahle-Work Zewde, for participating in the global event. He said that their presence was an indication that Africa had the political will and was fully ready to tackle food insecurity as well as make hunger history on the continent. Earlier, Shettima, who spoke on the Tinubu administration’s initiatives for food security, said the quality of present leadership in Nigeria and the rest of Africa would drive transformation in agriculture and other sectors. He said, “A nation falls or rises fundamentally due to the quality of its leadership. “Right now, Africa is blessed with quite a handful of quality leaders that have the drive, passion and skills set to redefine the meaning and concept of modern leadership. “President Tinubu, my boss, is a good example, Macky Sall of Senegal and of course, Abdel Fattah El-Sisi of Egypt are doing wonderfully well. “Just to mention a few of the African leaders that are distinguishing themselves in leadership.” Shettima assured the gathering of investors and stakeholders in the agricultural sector that Tinubu was a quintessential 21st century modern African leader who is determined to redefine the meaning and concept of modern leadership. He added, “Be rest assured that there will be a change in the fortunes of the Nigerian nation and by extension, the African continent in the next couple of years because Nigeria is an anchor nation.” On wheat production, Shettima said the target of Nigeria towards wheat production was to achieve 50 per cent self sufficiency in the next three cycles. He said, “It is inconceivable that we are the second largest wheat importer in the world. Luckily, we have already procured the heat tolerant variety of wheat seeds. “And we are going to drive that process by supporting the farmers with the heat tolerant variety, agricultural extension services, fertilizer and also hope to increase the irrigation areas to 1 million hectares in the next cropping cycle. “We need to produce about 2.4 million tonnes of wheat grains in Nigeria. We are going to reach out to our farmers through small irrigation schemes and through digitalisation. “All the actors in the value chain will be sufficiently taken care of through innovative finance, partial credit guarantees and crop insurance.” On rice production, Shettima said the major challenge for Nigeria was the insufficiency of paddy rice. He said that Nigeria had adequate milling capacity, adding, “but, we need to produce three to four million tonnes of paddy rice to meet our requirement of about 2.5 million tonnes per annum. “We have 75 million hectares of arable land and most of it suited for rice cultivation. “We will provide our farmers with certified seeds, fertilizer, extension services, the digitlisation of services, inputs, finance and market information. ”Our target is to achieve self sufficiency in rice latest by 2027.” The vice-president, who spoke on SAPZs, reiterated the Tinubu administration’s commitment to providing an enabling environment for investors in the zones. He said government would create an SAPZ development authority that would operate like a one-stop shop where regulatory and associated issues would be addressed.

Bulls Trend As Local Equities Rebound To Gain N187bn

Nigeria’s domestic equity market on Tuesday returned bullish, gaining N187 billion as profits recorded in the shares of Geregu Power, Flour Mills Nigeria Plc, Dangote Sugar, United Bank for Africa and others lifted market activities. Market capitalisation of listed equities increased by 0.51 per cent to N36.929 trillion from N36.742 trillion it closed the previous day. The NGX All Share Index also appreciated by 340.85 basis points to 67217.77 points from 66876.92 points traded on Monday. An analysis of the investment showed that Flour Mills Nigeria Plc led gainers table by 9.93 per cent to N31.00 per unit, UPL followed with a gain of 9.81 per cent to N2.35 per share, Chams Plc added 9.37 per cent to close at N1.75 per share, Geregu Power added 9.05 per cent to close at N343.50 per unit, Thomas Way gained 9.02 per cent to close at N4.34 per unit. Conversely, VFD group and ABC Transport recorded the highest loss at the close of transaction at the NSE, dropping 9.98 per cent each to close at N218.20 and N0.73 respectively. FTNCocoa trailed with a loss of 3.70 per cent to close at N1.56 per share,  NGX group dipped by 3.67 per cent to close at N21.00 per unit, Vitafoam Nigeria Plc down by 3.44 per cent to close at N22.45 per share. Volume of transactions increased as investors traded 319.904 million shares valued at N6.330 billion in 6272 deals against 314.619 million shares worth N4.388 million exchanged hands the previous day in 6133 deals. AccessCorp Plc-led market activities with 50.780 million shares valued at N837.972 million, GTCO Plc followed with account of 42.043 million valued at N1.496 billion, Fidelity Bank traded 32.117 million shares cost N264.006 million, United Bank for Africa traded 25.725 million shares worth N496.685 million while Sterling Bank exchanged 19.371 million shares cost N69.984 million.

EU To Support Africa’s Infrastructure Drive With €150bn In 4 years

The European Union (EU) through its Global Gateway initiative has promised to disburse 150 billion Euros to Nigeria and other African countries to enhance infrastructure in over eight sectors. The disbursement of the fund which commences from this year to 2027, aims to enhance connectivity, promote sustainable development, and strengthen economic ties between the EU and its partner countries, including Nigeria. The EU Commissioner for International Partnerships, Jutta Urpilainen, who revealed this at the launch of the Global Gateway initiative in Abuja, added that the bloc would support Nigeria to achieve enhanced infrastructure connectivity, including transport, energy, digital networks; support agriculture, economic growth, health and education. She said: “It will also promote sustainable development and environmental protection; and foster cooperation and partnerships with Nigeria and other partner countries. “We are living in an increasingly fragmented world. The war that Russia started against Ukraine last year, the military takeover in Niger in July, and the escalation in Israel-Palestine conflict are just stark reminders of that. “In such a world, the Global Gateway strategy is our positive offer to build resilient connections in the world through strategic partnerships to jointly address the challenges of our times from fighting climate change to improving health systems. “Together, we intend to mobilise 300 billion Euros in investments by the year 2027, and half of them for Africa; it is 150 billion Euros by the year 2027; Nigeria features prominently in the Global Gateway investment package”, the commissioner added. Urpilainen further clarified that the EU would support the 5G rollout in Nigeria, as part of its efforts to support the digital economy as well as also working on a potential loan to support Small and Medium Enterprises (SMEs) in the digital and print sectors. According to her, the EU had committed financial resources to support the energy sector, including the setting up of mini grids and small hydropower plants for productive and public purposes. “In 2022, we launched a digital economic package for Nigeria. With EU and European Investment Banks, investments worth 820 million Euros, it is a lot of money,” she added. The EU commissioner described education as “the most transformative investment anyone could make. So, an empowerment project is being launched in North Western Nigeria in cooperation with government to promote quality basic education in the northern regions.” Urpilainen assured that the EU’s long-term commitment would support investments in key sectors of the Nigerian economy, namely Agriculture (€42,000,000), Energy (€37,000,000), Health (€45,000,000), Digital (€55,000,000), Education (€45,000,000), and Social Protection (€46,000,000). In his remarks, Minister of Communication, Innovation and Digital Economy, Dr. Bosun Tijani, said that the Global Gateway initiative was aimed at achieving collective regional and global prosperity was in full alignment with President Bola Ahmed Tinubu’s Renewed Hope agenda. He explained: “The core of this administration’s agenda is a developed Nigeria that is not only for a few, but for all, providing the Government the opportunity to actualize its plans in sectors that it wants to focus on. “Africa’s relationship with Europe has deep historical roots, and has been built on years of shared values, collaboration and mutual respect. “While we enjoy geographical proximity, we also have increasingly intertwined culture, and more importantly, a shared future,” the minister added. Tijani pointed out that working with the EU gave Nigeria the opportunity to leverage its structure and historical resources for global development, particularly for Africa.

Nigeria’s Equity Market Sheds N140bn

Trading on the floor of Nigerian Exchange ((NGX)) on Thursday closed negative, shedding N140 billion following losses recorded by Nigerian Breweries, Stanbic IBTC and other companies which impacted negatively on the market. Market capitalisation of listed equities declined by 0.38 per cent to N36.864 trillion from N37.004 trillion reported the previous day. The NGX All Share Index also depreciated by 254.43 basis points to 67098.80 points from 66353.23 points traded on Wednesday. Learn Africa led gainers table in percentage terms with 10 per cent to N3.30 per share, Daar Communication followed with 9.52 per cent to close at N0.23 per share, UPDC gained 8.00 per cent to close at N1.35 per share, Thomas Way added 6.80 per cent to N3.30 per unit, SUNU Assurance gained 6.67 per cent to close at N1.12 per share. Mcnichols recorded the highest loss, dropping by 8.82 per cent to close at N0.62 per share, Omatek trailed with a loss of 8.70 per cent to close at N0.42 per unit, Stanbic IBTC down by 8.49 per cent to close at N69.55 per unit, Ikeja Hotel declined by 6.98 per cent to close at N2.93 per unit. Volume of trades during the day declined by 98.873 million, representing 24.87 per cent as investors traded 298.687 million shares valued at N4.483 billion in 5453 deals against 397.970 million shares worth N4.699 billion traded in 6165 deals. Transactions in the shares of United Bank for Africa led market activities with 56.287 million shares valued at N1.053 billion, Fidelity Bank followed with account of 33.882 million shares worth N282.308 million, AccessCorp traded 22.173 million shares cost N364.027 million, Transnational Corporation of Nigeria exchanged 21.823 million shares valued at N135.261 million, Ellah Lakes sold a total of 20.195 million shares valued at N81.726 million.

Yuguda Tasks Private Sector On Infrastructure Funding

Director General of the Securities and Exchange Commission, Mr. Lamido Yuguda has tasked the private sector to rise up to the challenge of sourcing long term financing from the capital market that would fund the provision of infrastructure in the West African Sub region. Yuguda stated this at a pre-event press briefing on the forthcoming West Africa Capital Market Conference scheduled to hold in Lagos October 25-26 with the theme ‘Infrastructural deficit and sustainable financing in an integrated West Africa Capital Market’. According to Yuguda, “Infrastructure deficit refers to a situation where there is insufficient infrastructure relative to the needs of the population. Availability of infrastructure, such as power, telecommunications, roads, rail, schools, hospitals, shopping malls, hotels etc. is crucial to raising the living standards of the people”. He disclosed that in many countries, the responsibility for the provision of infrastructure has been steadily moving away from government to the private sector owing to increasing demand and reduced ability of the government to fund infrastructure alone, adding that the need to tackle the infrastructure deficit in the sub-region as well as embrace principles of sustainable finance to promote economic development are some of the issues to be discussed as the conference. The conference is being jointly organised by the  West Africa Securities Regulators Association (WASRA) comprising  the Securities and Exchange Commission (SEC) Nigeria, the Securities and Exchange Commission (SEC) Ghana, and Autorite de Marche’s Financiers or AMF-UMOA, in collaboration with Economic Community of West African States (ECOWAS), the West Africa Capital Market Integration Council (WACMIC), and the West African Monetary Institute (WAMI) are jointly organizing the 3rd biennial West Africa Capital Market Conference (WACMaC) 2023. The SEC boss said, “This deficit also poses a significant challenge to the region’s sustainable development. To address this gap, there is a growing need to adopt innovative financing mechanisms, and sustainable financing options to mobilize the desired funds to meet the region’s critical infrastructure needs, foster economic growth, and achieve sustainable development goals.  “The Conference will bring together a distinguished array of experts, regulators, policymakers, and industry leaders who will share their insights, experiences, and strategies to proffer solutions to the region’s massive infrastructure deficit. The WACMaC 2023 provides a unique platform to engage in meaningful discussions, share insights, and forge partnerships that will help shape the future of our capital markets. The DG added that this year’s conference is particularly significant, as over 300 stakeholders will converge at the Eko Hotels and Suites, Lagos from October 25-26, 2023 to hold discussions around the general theme with a view to contributing significantly to infrastructural development in Nigeria.

Equity market sheds N64bn

Trading activities on the floor of Nigerian Exchange (NGX) Tuesday returned to a negative trend, declining by N64 billion. Market capitalisation of listed equities declined by 0.17 per cent to N36.801 trillion from N36.865 trillion reported the previous day. The NGX All Share Index also depreciated by 116.71 basis points to 66984.62 points from 67101.33 points traded the previous day. An analysis of the investment indicated that Ncnichols led gainers table in percentage terms, gaining 10 per cent to close at N0.66 per share, Capital Hotel followed with a gain of 9.83 per cent to close N3.02 per unit, Chams Plc added 9.38 per cent to close at N1.40 per unit, ABC Transport added 8.82 per cent to close at N0.74, Oando Plc appreciated by 7.61 per cent to close at N9.90 per share. On the contrary, JohnHolt topped losers chart dropping by 10 per cent to close at N1.44 per unit, Presco Plc trailed with a loss of 9.54 per cent to close at N182.00, Daar Communication dipped by 8.70 per cent to close at N0.21 per unit, Deep Capital declined by 7.41 per cent to close at N0.25 per share, Jaiz Bank fell by 6.25 per cent to close at N1.50 per share. Volume of transactions increased by 11.24 million, representing a drop of 4.18 per cent as investors traded 257.423 million shares valued at N7.799 billion in 6498 deals against 268.663 million shares worth N3.463 billion in 6911 deals. Fidelity Bank led market activities with 53.396 million shares valued at N442.890 million, AccessCorp followed with 31.088 million shares cost N490.503 million, United Bank for Africa exchanged 26.772 million shares cost N459.677 million, Oando Plc traded 13.564 million shares worth N133.363 million while Zenith 11.266 million shares cost N358.983 million.

Come, Invest In Nigeria’s Bubbling Economy, Tinubu Tells US

President Bola Tinubu has invited the United States business community to come and invest in Nigeria’s ‘bubbling’ economy. Tinubu, who rang the closing bell at the Nasdaq Stock Market in New York on Wednesday, called on the United States business community to invest in Nigeria’s “bubbling market”. The President, who is attending the ongoing 78th session of the United Nations General Assembly, was accompanied to the bell ceremony by the President of the U.S.-Africa Business Center (USAfBC) at the U.S. Chamber of Commerce, Scott Eisner. The closing bell ceremony, held at the seven-storey tower of the Nasdaq headquarters in New York, signifies the end of a trading session. “I am happy to bring Nigeria to your doorsteps and honoured that we’re here today with a bubbling maket that will evolve the West African subregion,” Tinubu said. “The greatest economy is Nigeria. There is an immense opportunity in Nigeria that you can invest your money without fear. “We’ve removed a lot of the bottlenecks. We’ve cleared the subsidy that is corrupt and we’ve also retooled the exchange rate to a reliable, dependable one-figure floating of the exchange naira.”

Growing concerns surround delisting of companies from NGX

Amidst rising domestic costs, fluctuating naira exchange rates, and challenges in dividend declaration and tax payments, several large-cap companies listed on the Nigeria Exchange Limited (NGX) are considering leaving the market, raising concerns among equity market stakeholders. Over the past 22 years, more than 120 companies have either voluntarily or regulatory delisted from the NGX, and the increasing frequency of such announcements or rumours is causing unease among analysts and investors. Initial estimates suggest that approximately N182 billion in market value could exit the NGX due to potential departures by prominent companies like PZ Cussons (current price N20), GSK (current price N12.65), and Oando (current price N7.07). This trend underscores several critical issues within the market, including the perceived lack of tangible benefits associated with being listed, difficulties in raising capital, relatively lower valuations of publicly-listed companies compared to their private counterparts, and challenges in determining exit pricing. Many companies, particularly those with international interests, are opting for private status due to the opportunity cost of remaining listed on a formal exchange. Market analysts argue that this shift should be a cause for concern for NGX management and the Securities and Exchange Commission (SEC). While these companies intend to continue operations within Nigeria, they seek the advantages of private arrangements, which offer more confidentiality and flexibility in managing profits to minimize tax obligations, thus avoiding the need for widespread distribution of local dividends. To reverse this growing delisting trend and safeguard the interests of minority shareholders, several corrective measures are being considered. These include revising listing regulations to enhance the quality of publicly-listed firms, providing support for companies through innovative equity funding programs, offering incentives such as corporate income tax (CIT) reductions to listed firms, and increasing the costs associated with delisting. The issue of low exit pricing, which significantly impacts the value of investments held by minority shareholders, is a primary concern that calls for regulatory attention.