Economy
NSE, Afrinvest Unveil New Indices to Optimise Investors Returns
By Modupe Gbadeyanka
Two new factor indices have been launched by the Nigerian Stock Exchange (NSE) and Afrinvest Securities Limited (ASL).
A statement from the NSE disclosed that the new indices, NSE-Afrinvest Banking Value Index (NSE-Afr BVI) and NSE-Afrinvest High Dividend Yield Index (NSE-Afr HDYI) will be available real-time on both NSE and Afrinvest WA websites from Monday, January 21, 2019.
It was explained that the two indices were designed in response to requests for applicable benchmarks for measuring value in banking stocks and high dividend stocks listed on the local exchange.
They will serve as tools for investment managers and corporate treasuries seeking appropriate benchmarks to evaluate the performance of their portfolios to a segment of the banking sector or high dividend orientation as applicable. The indices can also be used as the performance target in index-replicating financial products such as Exchange Traded Funds and Derivatives.
The NSE-Afr BVI and the NSE-Afr HDYI as with all other NSE indices will align with the NSE’s index committee’s governance standards. Guidelines and methodologies for the indices are publicly available on the website of NSE and Afrinvest.
On the launch of the indices, CEO of NSE, Mr Oscar Onyema, remarked that, “In view of rising demand for financial products that adequately meet the needs of market participants, particularly investors, the NSE is pleased to collaborate with Afrinvest West Africa on these novel index strategies.
“The indices consider the fundamentals of underlying securities. We commend Afrinvest for its product innovation and for leveraging the Exchange’s Index calculation and management expertise.”
“The Exchange is committed to driving sustainability of our marketplace and supporting investable product creation endeavours by stakeholders to enhance the depth of the market. We will continue to welcome innovative solutions to identifiable gaps in the capital market,” he added.
Group Managing Director of Afrinvest West Africa, Mr Ike Chioke, said at the unveiling that, “Afrinvest West Africa is proud and excited at the rollout of the new indices in collaboration with the NSE. “It is our belief that this partnership will serve as a veritable proponent for more forward-thinking initiatives meeting market needs. On the back of these indices, investors will now enjoy the benefits of proxies that seek out dividend-paying stocks and value-oriented banking stocks listed in Nigeria,” he added.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.70 per cent on Monday, June 22, buoyed by four price gainers led by MRS Oil Plc, which gained N7.77 to sell at N150.00 per share compared with the previous session’s N142.33 per share.
Further, Central Securities Clearing System (CSCS) Plc appreciated by N2.05 to trade at N79.82 per unit versus last Friday’s N77.77 per unit, FrieslandCampina Wamco Nigeria Plc added N2.14 to close at N172.14 per share compared with the previous N170.00 per share, and First Trust Mortgage Bank Plc grew by 22 Kobo to N2.49 per unit from N2.27 per unit.
As a result of the gains by these four securities, the market capitalisation of the platform increased by 17.87 billion to N2.570 trillion from N2.552 trillion, and the NASD Unlisted Security Index (NSI) improved by 27.98 points to 4,282.51 points from 4,252.73 points.
The volume of securities transacted by market participants during the session decreased by 65.4 per cent to 330,034 units from the previous 954,106 units, the value of securities depleted by 23.4 per cent to N32.7 million from the preceding session’s N42.7 million, and the number of deals retreated by 45.7 per cent to 19 deals from the 35 deals recorded in the previous trading session.
At the close of business, Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 68.1 million units exchanged for N4.7 billion.
GNI Plc also ended the trading day as the most traded stock by volume on a year-to-date basis, with the sale of 3.4 billion units worth N8.4 billion, the second spot was taken by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and the third spot was occupied by Resourcery Plc with a turnover of 1.1 billion units worth N415.7 million.
By Adedapo Adesanya
The Naira started the new week on a positive note after its value was strengthened against the United States Dollar by N1.35 or 0.09 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, June 22, to N1,369.11/$1 from last Friday’s N1,370.46/$1.
Against the Euro, it appreciated at the official market by N5.11 to sell at N1,566.39/€1 compared with the preceding session’s price of N1,571.50/€1, but against the Pound Sterling, the local currency declined by 68 Kobo to trade at N1,815.44/£1 versus the previous trading day’s rate of N1,814.76/£1.
At the parallel market, the Naira weakened against the US Dollar yesterday by N5 to quote at N1,395/$1 versus the previous rate of N1,390/$1, and at the GTBank forex counter, it lost N4 to exchange at N1,380/$1 versus N1,376/$1.
The Nigerian currency witnessed an easing in FX pressure during the session amid a surge in the country’s foreign reserves to $51.060 billion, its highest since 2009, according to data from the Central Bank of Nigeria (CBN).
FX reserves gained traction as a result of lower oil imports, high crude oil prices in the global commodity market, and a surge in the nation’s production output. This is expected to bolster investor confidence in the Nigerian economy and support exchange rate stability.
Interbank FX turnover increased sharply to $65.206 million, up by more than 63 per cent from the previous close of $39.897 million, according to data published by the apex bank on Monday.
Meanwhile, the cryptocurrency market was down on Monday as a result of sell-offs triggered by risk as investors pulled out of the technology stocks that have led markets all year. A rotation out of this year’s best-performing technology and chip shares sank global equities.
Bitcoin (BTC) fell by 1.3 per cent to $63,352.91, Ethereum (ETH) lost 1.4 per cent to trade at $1,712.35, Solana (SOL) shrank by 4.0 per cent to $70.98, Dogecoin (DOGE) crashed by 2.4 per cent to $0.0814, Ripple (XRP) declined by 1.9 per cent to $1.11, Cardano (ADA) slid by 1.6 per cent to $0.1574, and Binance Coin (BNB) slumped by 1.0 per cent to $585.34.
However, TRON (TRX) added 1.0 per cent to sell at $0.3314, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
By Dipo Olowookere
Renewed bargain-hunting by investors halted the losing streaks on the Nigerian Exchange (NGX) Limited on Monday, though the bears still lurk around.
The local stock market performance indices closed higher by 0.97 per cent on yesterday, as market participants mopped up some large-cap banking equities like GTCO, First Holdco and others.
First Holdco gained 10.00 per cent to trade at N60.50, GTCO also appreciated by 10.00 per cent to N127.10, International Energy Insurance expanded by 9.88 per cent to N5.56, Zenith Bank grew by 7.09 per cent to N117.80, and NPF Microfinance Bank chalked up 5.12 per cent to settle at N5.20.
Conversely, Zichis shed 10.00 per cent to finish at N23.40, Consolidated Hallmark slumped by 9.94 per cent to N6.43, Eterna declined by 9.90 per cent to N27.75, Deap Capital crashed by 9.82 per cent to N4.41, and Austin Laz gave up 9.74 per cent to quote at N28.12.
Business Post reports that investor sentiment remained weak as Customs Street ended with 21 price gainers and 37 price losers, representing a negative market breadth index.
During the session, the insurance counter lost 1.43 per cent, the consumer goods decreased by 0.40 per cent, and the energy index tumbled by 0.06 per cent. But the banking space appreciated by 4.84 per cent, and the industrial goods sector improved by 0.04 per cent.
As a result, the All-Share Index (ASI) went up by 2,261.84 points to 238,203.11 points from 235,941.27 points, and the market capitalisation rose by N1.508 trillion to N152.835 trillion from N151.327 trillion.
A total of 475.8 million stocks worth N36.5 billion exchanged hands in 63,567 deals on Monday versus the 440.4 million stocks valued at N24.7 billion transacted in 50,273 deals last Friday, implying a jump in the trading volume, value, and number of deals by 8.04 per cent, 47.77 per cent, and 6.55 per cent, respectively.
Fidelity Bank was the busiest equity, with a turnover of 48.7 million units sold for N894.2 million, UBA exchanged 42.3 million units worth N1.7 billion, Access Holdings traded 39.3 million units valued at N886.1 million, Zenith Bank transacted 30.0 million units worth N3.5 billion, and MTN Nigeria sold 20.8 million units valued at N16.6 billion.
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