Equities Market Stumbles, Loses N444 Billion as Major Stocks Retreat

The Nigerian equities market’s recent bullish streak hit a roadblock on Wednesday, as heavy selloffs erased N444 billion in market value, rattling investors and shaking confidence in key sectors Significant declines in Learn Africa, Cadbury, Meyer, UPDC, International Breweries, and 24 other laggards pushed the market into negative territory, pulling the market capitalisation down by 0.49 per cent to N90.996 trillion from Tuesday’s N91.440 trillion. The All-Share Index (ASI) also retreated, shedding 698.56 points, or 0.49 per cent, to close at 143,064.57 from 143,763.13 recorded the previous session. Consequently, the Year-To-Date (YTD) return dipped to 39.00 per cent following the session’s downturn. Despite the pullback, market breadth ended positive, with 29 gainers outpacing 27 decliners. AIICO Insurance led the gainers, surging 10 per cent to N3.52, followed closely by NCR Nigeria, which added 9.96 per cent to close at N49.70. Ikeja Hotel rose 9.41 per cent to N25, while Prestige Assurance and Sterling Nigeria gained 7.38 per cent and 6.85 per cent to N1.60 and N7.80, respectively. On the other hand, Learn Africa topped the losers, falling 10 per cent to N5.22, with Cadbury dropping 9.92 per cent to N53.10. Meyer slid 9.91 per cent to N14.55, extending the day’s decline in consumer stocks, while UPDC lost 8.83 per cent to close at N5.47, and International Breweries dropped 8.33 per cent to N11 per share. Market activity, however, improved across key metrics. Investors traded 738.35 million shares worth N35.5 billion across 19,919 deals, compared with 556.2 million shares valued at N18.7 billion executed in 19,500 deals on Tuesday. GTCO recorded the highest volume and value, with 134.12 million shares worth N11.57 billion exchanging hands during the session.

Nigeria’s Equity Market Continues Upward Streak, Gains N739bn

Trading activities on the floor of Nigerian Exchange (NGX) started the month November on a bullish note, appreciating by N739 billion. The increase in the shares price of Airtel Africa, FBNHoldings, Cadbury Nigeria Plc, Zenith Bank, Flour Mills Nigeria Plc, Presco, AccessCorp, GTCO Plc, Flour Mills Nigeria Plc and other 28 company lifted market activities pushing NSE index  to cross 70 million mark. Specifically, market capitalisation of listed equities appreciated by 1.94 per cent to N38.777 trillion from N38.038 trillion reported the previous day. The NGX All Share Index also increased by 1345.57 basis points to 70581.76 points from 69236.16 points traded the previous day. An analysis of the investment showed that Airtel Africa led gainers table in percentage terms, gaining 10 per cent to close at N2694.10 per share, Chams Plc and UPL followed with a gain of 9.91 per cent each to close at N2.44 per share and N2.33 per share respectively. NEM Insurance gained 9.90 per cent to close at N5.55 per unit, FBNHoldings added 9.78 per cent to close at N19.65 per share. On the contrary, Caverton Business Solutions recorded the highest loss during the day, declining 7.74 per cent to close at N1.43 per share, Champion Breweries trialed with a loss of 6.85 per cent to close at N3.40 per share, C &I Leasing down by 6.41 per cent to N3.36 per unit. UPDC REIT fell by 2.70 per cent to close at 3.60 per share. Unilever Nigeria Plc declined by 2.44 per cent to close at N14.00. Volume of trades increased by 118.463 million, representing 24.51 per cent growth as investors traded 601.732 million shares valued at N11.016 billion in 7444 deals against 483.269 million shares worth N6.044 billion exchanged hands the previous day in 8027 deals. Transactions in the shares of  United Bank for Africa led market activities with 163.561 million shares valued at N3.472 billion, FBNHoldings followed with 94.654 million shares valued at N1.841 billion, AccessCorp traded 36.693 million shares worth N641.992 million, Universal insurance exchanged 34.716 million shares cost N8.938 million while Japaul Gold exchanged 25.717 million shares valued at N33.114 million.

Nigeria’s Equity Market Declines By N6bn

Transactions on the floor of Nigerian Exchange on Wednesday closed on negative note, shedding N6 billion. Market capitalisation of listed equities declined by 0.02 per cent to N36.923 trillion from N36.929 trillion reported on Tuesday. The NGX All Share Index also depreciated by 11.61 basis points to 67206.16 points from 67217.77 points reported the previous day. A review of the investment showed that Multiverse led gainers table, growing by 9.74 per cent to close at N2.93 per share, Chams Plc followed with a gain of 9.71 per cent to close at N1.92 per unit, Caverton Business Solutions added 9.35 per cent to close at N1.52 per unit, FTNCocoa Plc up by 8.97 per cent to close at N1.70 per unit while Geregu powers increased by 7.71 per cent to close at N370.00. On the contrary, ETranzact and SUNU Assurance recorded the highest loss, shedding 10 per cent each to close at N7.56 and N0.99 per share. Deep Capital trailed at 7.41 per cent to close at N0.25 per share, Eterna Plc dropped by 7.41 per cent to close at N13.75 per unit, United Bank for Africa down by 5.79 per cent to close at N18.75 per share. Volume of trades increased by 9.756 million, representing 3.05 per cent as investors traded 329.660 million shares valued at N4.410 billion in 5998 deals against 319.904 million shares costing N6.330 billion in 6272 deals. Transactions in the shares of Fidelity Bank led market activities with 50.319 million shares valued at N411.728 million, AccesCorp plc followed with 43.186 million shares worth N30.101 million, Chams Plc traded 26.650 million shares cost N50.127 million, United Bank for Africa exchanged 25.848 million shares cost N502.077 million while GTCO Plc exchanged 20.630 million shares cost N733.793 million.

Nigeria’s Equity Market Gains N355bn

Transactions on the floor of Nigerian Exchange on Monday opened the week in positive note, gaining N355 billion following gains recorded by BuaCement, Nigerian Breweries, NGX group among others. Market capitalisation of listed equities increased higher by 0.97 per cent to N36.865 trillion from N36.510 trillion reported the previous day. The NGX All Share Index also appreciated by 646.76 basis points to 67101.33 points from 66454.57 points reported on Friday. A review of the trading activities showed that BuaCement led gainers table in percentage terms, gaining 10 per cent to close at N103.40 per unit, Chi Plc followed with a gain of 9.80 per cent to close at N1.12 per unit, Nigerian Breweries added 9.09 per cent to close at N42.00, John Holt increased by 8.11 per cent to close at N1.60 per unit, SUNU Assurance added 7.22 per cent to close at N1.04 per share. On the contrary, Prestige insurance topped losers chart, dropping by 10 per cent to close at N0.45 per unit, FTNCocoa trailed with a loss of 8.33 per cent to close at N1.65 per unit, Neimeth international Pharmaceutical down by 7.74 per cent to close at N1.55 per unit, Sovereign Trust Insurance fell by 5.0 per cent to close at N0.38 per unit, ETranzact down by 4.26 per cent to close at N9.00. Volume of transactions declined by 105.43 million, representing 28.18 per cent as investors traded 268.663 million shares valued at N3.463 billion in 6911 deals against 374.093 million shares costing N8.933 billion in 6882 deals. The result further showed that ABC Transport was the toast of investors due Ng the day accounting for 29.269 million shares valued at N19.908 million, AccessCorp followed with account of 29.171 million shares valued at N465.977 million, Oando Plc traded 27.090 million shares valued at N252.976 million, United Bank for Africa exchanged 23.751 million shares cost N407.671 million, TransCorp traded 23.735 million shares valued at N149.510 million.

Again, Nigeria’s Equity Market Dips N293bn

Trading activities on the floor of Nigerian Exchange Tuesday sustained a downward trend, shedding N293 billion. Market capitalisation of listed equities declined by 0.79 per cent to N36.538 trillion from N36.831 trillion reported the previous day. The NGX All Share Index also depreciated by 535.98 basis points to 66760.20 points from 67296.18 points it opened on Monday. An analysis of the investment showed that Chellaram Plc and CWG led gainers table, gaining 10 per cent each to close at N3.19 and N6.93 per share respectively. Vitafoam Nigeria Plc followed with a gain of 9.78 per cent to close at N24.70 per unit, Oando Plc added 9.47 per cent to close at N9.25 per unit while Wema Bank added 8.94 per cent to close at N5.12 per share. On the contrary, Tranzact and Ragal Insurance topped losers chart, dropping by 10 per cent each to close at N8.10 and N0.36 per share respectively. Nascon and Dangote Sugar Refinery trailed with a loss of 9.96 per cent each to close at N47.00 and N52.00 respectively while Unity Bank fell by 9.92 per cent to close at N1.09 per share. Volume of trades increased by 125.407 million, representing 24.11 per cent as investors traded 645.540 million shares valued at N11.014 billion in 10.554 deals against 520.133 million shares valued at N8.334 billion in 9914 deals. Transactions on the shares of Transnational Corporation of Nigeria led  market activities with 87.823 million shares valued at N491.690 million, United Bank for Africa followed with account of 75.849 million shares valued at N1.035 billion, AccessCorp traded 69.448 million shares worth N1.052 billion, Fidelity Bank exchanged 48.322 million shares worth N387.343 million, GTCO Plc traded 39.708 million shares cost N1.326 billion .

NSE Downgrade Due To FX Woes, Says FTSE Russell

Global index provider, FTSE Russell, has said Nigeria’s ongoing foreign exchange problem is a key motivator behind the downgrade of Nigerian Stock Exchange (NSE) from ‘Frontline’ to “Unclassified Market”, erasing the gains of the prior week. The reclassification, set to take effect on September 18, 2023, prompted immediate selloffs that drove the All-Share Index down by 1.24 per cent to close at 67,296.18 points. This resulted in the market’s year-to-date (YTD) returns tumbling to 31.11 per cent and wiping out N463.66 billion ($1.14bn) in market capitalisation, which closed at N36.83 trillion ($90.81bn). Trade turnover also sagged relative to the previous session, down by a marginal 0.08 per cent. In total, 520.13 million shares worth N8.33 billion were exchanged in 9,914 transactions. The downgrade and subsequent market reaction raise pressing questions about the sustainability of investment in Nigeria, particularly in its once-robust banking sector. Investors and policymakers alike will likely be focused on how the country can stabilize its foreign exchange market and restore investor confidence in the wake of this critical development. According to the UK-based financial institution, these issues have hindered the ability of institutional investors to repatriate trapped capital. FTSE Russell in a statement expressed skepticism about the effectiveness of Nigeria’s recent foreign exchange reforms, including the adoption of a ‘willing seller, willing buyer’ policy at the Investor and exporter (I&E) foreign exchange window. FTSE Russell noted little or no improvement in foreign exchange supply trends, a factor that continues to deter capital inflows from institutional investors. The downgrade means Nigeria’s index status will be removed entirely from all five FTSE stock indices, effectively given a value of zero. This significant move is likely to have repercussions for Nigeria’s visibility on the international investment landscape, making it more challenging for the country to attract foreign capital.

Nigeria’s Equity Market Sheds N464bn Amid Profit-Taking

The nation’s equity market Monday opened the week bearish, shedding N464 billion. The downward trend followed profit-taking in the shares of GTCO, United Bank for Africa, Zenith, AccessCorp, Nascon, NGX group and others. Market capitalisation of listed equities declined by 1.24 per cent to N36.831 trillion from N37.295 trillion reported the previous day. The NGX also depreciated by 847.16 basis points to 67296.18 points from 68143.34 points traded on Friday. An analysis of the investment showed that Northern Nigeria Flour Mills Nigeria Plc led gainers table, appreciating by 9.96 per cent to N13.25 per unit, Oando Plc followed with a gain of 9.74 per cent to close at N8.45 per share, CWG increased by 9.0 per cent to close at N6.30 per share, NPF Micro Finance Bank added 8.20 per cent to close at N1.98 per share while RTBriscoe up by 7.32 per cent to close at N0.44 per unit. On the contrary, ETranzact, Nascon and NSL Tech topped losers’ chart, dropping by 10 per cent each to close at N9.00, N52.20 and N0.27 per share respectively. Dangote Sugar Refinery followed with a drop of 9.98 per cent to close at N57.75 per unit while Learn Africa declined by 9.86 per cent to close at N3.29 per unit. Investors traded 520.133 million shares valued at N8.334 billion in 9914 deals against 483.489 million shares worth N8.340 billion in 6660 deals. Transactions in the shares of United Bank for Africa led market activities with 75.932 million shares valued at N1.049 billion, AccessCorp followed with 57.668 million shares valued at N957.323 million, Transnational Corporation of Nigeria traded 53.724 million shares cost N331.528 million, Zenith Bank traded 43.128 million shares worth N1.523 billion while FBNHoldings exchanged 26.573 million shares valued at N480.793 million. Zenith Bank declares N15.70bn as interim dividend to shareholders Zenith Bank Plc has declared an interim dividend of N15.70 billion (representing N0.50 per share) to be paid to shareholders for the half year ended June 2023. This was disclosed in the company’s corporate action announcement to the Nigerian Exchange Limited (NGX) on Monday. The Board of Directors of the company proposed the payment of an interim dividend in the sum of N0.50kobo per ordinary share on the issued capital of 31,396,493,786 Ordinary Shares. At its 32nd Annual General Meeting (AGM) in May, shareholders of the bank unanimously approved the proposed final dividend payment of NGN2.90 per share. This brings the total dividend for the 2022 financial year to NGN3.20 per share, with a total value of NGN100.47 billion. The board of Zenith Bank Plc had earlier announced a delay in the release of its 2023 Half-Year (HY) financial results due to post-audit issues. According to the statement signed by the Company Secretary, Michael Osilama Otu, the delay in the publication of the Audited Interim Financial Statements for the Half Year ended June 30, 2023, is due to some outstanding post-audit issues. The bank said the results will be delivered on or before September 14, 2023. The statement reads: “Zenith Bank Plc (the Bank) wishes to notify its shareholders, the Nigerian Exchange Limited (the Exchange), and the investing public of a slight delay in the release of the Audited half-year financial reports by the Bank for the period ended June 2023. “The delay is to enable the bank to attend to some outstanding post-audit issues in the course of approval of the financial statements. “The Bank is, however, optimistic that the Audited half-year financial reports will be submitted to the Exchange on or before September 14, 2023, and regrets any inconveniences this delay might cause its esteemed stakeholders.

NGX urges FG to create enabling policies to attract listings

The Nigerian Exchange Limited (NGX) has said that it is working with the Central Securities Clearing System (CSCS) Plc and Euroclear to create a dollar settlement platform that will enable tech startups to rise in dollars. The Exchange said that this would create opportunities for domestic investors to have access to their shares and at the same time, contribute to the growth of the Nigerian economy through democratization of capital formation. Speaking during the Annual A&O Fintech webinar themed; Fueling Fintech: The Power of Capital, the Role of Regulation, the Divisional Head, Capital Markets, NGX, Jude Chiemeka, said although public markets are viable options for raising capital, fintechs have preferably opted for private markets because of the regulatory rule of disclosure and stricter governance requirements that is necessary for listing publicly. He explained that to address this issue, NGX received approval from the Securities and Exchange Commission (SEC) to launch a technology board for fintechs and tech companies to raise capital.  Chiemeka stressed that the tech board is geared at encouraging tech firms to come to the market and raise capital in local currency, which would prove beneficial amid the high interest rate environment that had made foreign investors hawkish. While stating that the issue of settlements may discourage fintechs from accessing capital in US dollars on the public market, Chiemeka revealed that the Exchange was working on a partnership that is directed at fixing that problem. He said, “NGX is working with CSCS and Euroclear to create a dollar settlement platform that allows tech companies (start-ups or existing ones) to raise capital in dollars. We have reviewed listing procedures for tech companies who want to list. Requirements around the number of shareholders, years of operation among others have been relaxed to catalyse these listings.” Owing to the high-interestb rate environment, Chiemeka said that domestic investors had been allocating their Assets under Management (AuM) to majorly FGN bonds. He further revealed that there had been more outflows than inflows from FPIs and that had impacted the performance of equities in recent times, especially as regards volume and value of transactions. He called on the present administration to eke out deliberate and enabling policies to drive listings on the exchange’s platform.