Economy
Market Loses N22bn as Investors Selloff Shares of MTN, 17 Others
By Dipo Olowookere
Profit-taking in the shares of MTN Nigeria and others on the floor of the Nigerian Stock Exchange (NSE) plunged the market into a 0.16 percent loss on Monday, September 30, 2019. The actions of the investors ensured that the last trading day of the month closed bearish after going up in the two previous sessions.
Business Post reports that the market was impacted yesterday by the poor performance of MTN Nigeria, which at a point went down to N125 per unit at the session, but managed to close at N130.50 per share against N136 per share it traded last Friday, losing N5.50 on Monday.
However, the market breadth ended flat at the trading session with 18 price gainers and 18 price losers.
Other companies on the top five decliners’ chart were Unilever, which went down by N2.30 to settle at N26.70 per unit, Seplat, which fell by N1.60 to close at N555 per share, Ecobank, which declined by 85 kobo to finish at N8.05 per share, and NASCON, which depreciated by 30 kobo to close at N13.40 per share.
On the flip side, Nestle Nigeria was the day’s highest price gainer, going up by N49.90 to settle at N1394.90 per unit, while Total Nigeria followed with a price appreciation of N9.50 to close at N129.50 per share.
CAP gained N2.30 to trade at N25.55 per unit, GTBank rose by N1.60 to finish at N29.20 per share, while Dangote Cement appreciated by 80 to end at N151.50 per share.
At the session, investors traded 194.8 million shares worth N3.1 billion in 2,910 deals compared with the 187.3 million units valued at N2.1 billion transacted the previous trading day in 2,942 deals.
This indicated that the volume of the transactions increased by 4.01 percent, while the value rose by 43.97 percent, with the number of deals executed going down by 1.09 percent.
The most active stock at the market yesterday was GTBank, with a total turnover of 58.5 million units sold for N1.6 billion, while Access Bank trailed with an exchange of 50.4 million shares worth N386 million.
FBN Holdings traded 21.2 million equities valued at N115.2 million, FCMB exchanged 16.8 million shares worth N27.6 million, while Transcorp transacted 7.2 million stocks valued at N7.3 million.
Business Post reports that the five key sectors on the NSE closed in the green territory on Monday, with the insurance sector recording the highest gain of 1.85 percent.
The banking index followed with 1.56 percent growth, the consumer goods industry appreciated by 1.26 percent, the industrial goods index rose by 0.91 percent, while the energy sector improved by 0.35 percent.
But the main market indicators, the All-Share Index (ASI) and market capitalization depreciated by 44.48 points and N21.7 billion apiece to settle at 27,630.56 points and N13.450 trillion respectively.
By Aduragbemi Omiyale
The Debt Management Office (DMO) on Monday allotted bonds worth N929.3 billion to investors from the N1.7 trillion bids it received from subscribers.
The exercise, which took place on Monday, July 20, 2026, was oversubscribed by market participants, reflecting the confidence investors have in the government’s ability to redeem the debt instrument on maturity.
On offer for sale for the July auction was N1.2 trillion worth of the FGN bonds, but the DMO allotted below this, despite receiving bids above the offer.
The papers were offered in 10-year, 15-year, and 20-year tenors, at N400 billion each.
For the decade-old note, investors staked N444.47 billion, but the debt office sold N245.73 billion at an 18.34 per cent coupon rate. For the one and a half-decade-old paper, bids valued at N518.00 billion were received by the DMO, with a non-competitive bid of N50.00 billion, with N302.13 billion allotted to investors at 18.40 per cent, and for the two-decade paper, the DMO got competitive bids of N665.19 billion and N381.46 billion was sold to bondholders at 18.35 per cent.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, disclosed that Nigeria’s external reserves had risen to $52.5 billion, enough to finance about nine months of imports.
He disclosed this on Tuesday at the end of the 306th meeting of the Monetary Policy Committee (MPC) held in Abuja, where the Monetary Policy Committee (MPC) retained the benchmark interest rate at 26.50 per cent as well as the standing facilities corridor at +50/-450 basis points around the MPR.
Similarly, the Cash Reserve Requirement (CRR) was maintained at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
Speaking on FX developments, the central banker said at the $52 billion level, the country’s external reserves were significantly above the internationally recommended threshold of three months of import cover.
On the Naira exchange rate, Mr Cardoso said the foreign exchange market had deepened and was now operating on a transparent willing-buyer, willing-seller basis.
He said the apex bank remained committed to maintaining a liquid and functional foreign exchange market, adding that daily market turnover sometimes exceeded $1 billion.
According to him, the long-term stability of the naira would depend on key economic fundamentals, including increased oil exports, foreign direct investment, and improved domestic productivity to reduce dependence on imports.
He also added that the MPC welcomed the federal government’s renewed commitment to stronger policy coordination, particularly collaboration between fiscal and monetary authorities, which he said had helped reduce the impact of the Middle East crisis on the Nigerian economy.
Mr Cardoso said members of the committee also commended efforts to improve crude oil production and urged relevant agencies to intensify reforms in other sectors, including solid minerals, to boost government revenue.
On the regulatory forbearance granted to banks during the COVID-19 period, he reiterated that this had been discontinued because it had served its purpose.
According to him, the policy had “outlived its time” and was no longer necessary in assessing the health of the banking sector.
“Forbearance, we felt, had outlived its time. Many of you will recall this is something that came as a result of COVID. And now we are in 2026; we did not see the reason why that should continue to form part of the analysis of the banking system,” he said.
Mr Cardoso explained that banks had begun recalibrating their portfolios following the end of the policy, leading to a temporary reduction in outstanding risk assets.
He, however, assured that the development was part of a transition towards a stronger and more sustainable credit environment.
“It reflects a transition to a more sustainable and better quality credit environment, which is what we all want. We don’t want unanticipated shocks that come in a boom-and-bust fashion,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its recent positive run by 1.17 per cent on Tuesday, July 21, triggered by appreciation seen in four bellwethers.
Leading the pack was FrieslandCampina Wamco Nigeria Plc, which added N12.00 to its value to close at N153.15 per share compared with the previous day’s N141.15 per share. NASD Plc appreciated by N1.90 to N36.00 per unit from N34.10 per unit, Food Concepts Plc improved by 23 Kobo to N2.48 per share from N2.25 per share, and Afriland Properties Plc grew by a marginal 1 Kobo to N15.01 per unit from N15.00 per unit.
As a result, the market capitalisation of the bourse increased by N30.40 billion to N2.637 trillion from Monday’s N2.606 trillion, and the NASD Security Index (NSI) gained 50.70 points to finish at 4,393.97 points, in contrast to the 4,343.27 points it ended a day earlier.
The unlisted securities exchange recorded a price loser yesterday, and it was Geo-Fluids Plc, which shed 1 Kobo to settle at N2.30 per share versus N2.31 per share.
During the trading day, the volume of securities traded by market participants on Tuesday dropped 99.4 per cent to 322,147 units from the previous day’s 52.6 million units, the value of securities dipped by 89.8 per cent to N19.4 million from the preceding session’s N191.2 million, and the number of deals contracted by 3.6 per cent to 27 deals from 28 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units traded for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 75.4 million units exchanged for N5.3 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
