Economy
NSE: Investors Lose N150b as Buhari Declares 2019 Re-election Bid
By Dipo Olowookere
Investors trading in Nigerian stocks lost N149.7 billion on Monday as President Muhammadu Buhari declared his intention to seek re-election in the 2019 presidential election.
Mr Buhari had left many guessing if he would eventually throw his hat into the ring, but today, he put that into rest, announcing that he would want to remain in Aso Rock till 2023, when he would be expected to leave if he is finally elected by Nigerians in March 2019.
However, investors in the Nigerian capital market received this news with mixed feelings and by the time market activities were brought to an end on Monday, the Nigerian Stock Exchange (NSE) depreciated by 1.01 percent, shrinking the year-to-date returns to 5.72 percent.
The All-Share Index (ASI) went down by 411.96 points to settle at 40,429.18 points, while the market capitalisation reduced by N149.7 billion to close at N14.604 trillion.
Business Post reports that the market fell on Monday mainly as a result of price depreciation recorded by stocks in the banking, industrial goods and consumer goods sectors, which investors offloaded from their portfolios.
Today, Lafarge Africa Plc released its 2017 earnings, which fell short of what investors were expecting, especially with a N35 billion loss the cement maker declared.
In addition, investors were not happy with the cash dividend of N1.50k proposed by the board of Lafarge and they consequently punished the stock by offloading it.
At the end of the day, the market recorded 31 price losers and 17 price gainers, leaving the market breadth to close negative.
Unilever was the biggest price loser at the stock market today, going down by N4.80k to settle at N55 per share.
It was followed by Lafarge, which lost N3.20k of its share value to finish at N41 per share, and Dangote Cement, which fell by N2.90k to close at N252 per share.
Guinness Nigeria went down by N1 to end at N103 per share, while Dangote Flour decreased by 65k to settle at N13.15k per share.
On the flip side, GlaxoSmithKline emerged the biggest price gainer, going up by N1 to close at N30 per share.
It was trailed by CCNN, which appreciated by 20k to settle at N18 per share, and Champion Breweries, which also improved by 20k to close at N2.48k per share.
Axa Mansard grew by 12k to end at N2.52k per share, while Fidson also increased by 12k to settle at N5.80k per share.
Business Post’s Dipo Olowookere reports that the volume transactions recorded today decreased by 42.82 percent, while the value went down by 15.37 percent.
A total of 287 million shares were sold at the market on Monday in 4,285 deals worth N4.9 billion in contrast to the 502 million equities exchanged last Friday in 6,108 deals valued at N5.9 billion.
Trading was dominated by banking stocks with FBN Holdings emerging investors’ toast after selling 30 million units worth N359 million.
It was followed by Skye Bank, which traded 23 million shares valued at N15 million, and FCMB, which exchanged 23 million shares for N53.9 million.
Zenith Bank traded 22.5 million units valued at N606.9 million, while Nigerian Breweries sold 20.6 million worth N2.6 billion.
By Adedapo Adesanya
The Naira further appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, July 16, by 65 Kobo or 0.04 per cent to sell for N1,381.53/$1, in contrast to Wednesday’s closing value of N1,382.18/$1.
This was buoyed by improved FX liquidity to absorb the high demand for Dollars during the trading session.
However, the local currency depreciated against the Pound Sterling in the official market yesterday by N9.48 to close at N1,866.17/£1 versus the preceding day’s N1,856.69/£1, and lost N2.99 against the Euro to quote at N1,582.68/€1 compared with the midweek rate of N1,576.69/€1.
At the parallel market, the Nigerian currency maintained stability against its United States counterpart at N1,405/$1, and at the GTBank FX desk, it remained unchanged at N1,389/$1.
On Thursday, data from the Central Bank of Nigeria (CBN) showed a surge in interbank FX turnover and deal count. Interbank FX activities at the NFEM window increased sharply by 69 per cent to $205.366 million from $121.727 million reported the previous day.
Nigeria’s gross external reserves continue to rise, supported by steady foreign exchange inflows from hydrocarbon receipts, remittances and foreign portfolio investments, boosting market confidence. It settled at $51.893 billion from $51.867 billion the previous day.
The apex bank has also launched a new digital platform that will track every foreign exchange transaction involving Bureau De Change (BDC) operators, marking a major step in its efforts to improve transparency and strengthen oversight of Nigeria’s retail forex market.
In an operational guidance issued on July 15 to authorised dealer banks and licensed BDCs, the CBN introduced the FX BDC Purchase Tracker (FXBT), a centralised electronic portal that will monitor foreign exchange purchases by BDCs from the point of request through approval, settlement and eventual sale.
As for the crypto market, prices were down as the markets weighed fresh US airstrikes on Iran that boosted risk sentiment, with Ethereum (ETH) down by 4.7 per cent to $1,829.37.
Solana (SOL) decreased by 3.6 per cent to $77.49, Dogecoin (DOGE) depreciated by 3.1 per cent to $0.0718, Cardano (ADA) also crashed by 3.1 per cent to $0.1588, Bitcoin (BTC) slumped by 2.9 per cent to $62,820.21, Ripple (XRP) dipped by 2.6 per cent to $1.08, Binance Coin (BNB) fell by 2.3 per cent to $569.02, and TRON (TRX) shrank by 0.8 per cent to $0.3219, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
By Aduragbemi Omiyale
In a bid to help investors recover about N270 billion in unclaimed dividends in the capital market, a nationwide enlightenment campaign has been launched by the Securities and Exchange Commission (SEC).
This initiative involves town hall meetings that would go around the country to sensitise Nigerians on the need to claim these fallow funds.
The Director General of SEC, Mr Emomotimi Agama, speaking at a town hall meeting in Lagos, said the regulator is not happy that investors, who worked hard to purchase shares in the stock market, have not claimed their profits for many years, making unclaimed dividends pile up.
“The commission considers this situation unacceptable. Funds belonging to investors should ultimately find their way back to their rightful owners,” the SEC chief, represented at the event by the Director of Registration and Exchanges, Market Infrastructure Department, Ms Hafsat Rufai, stated.
He said during this campaign Nigerians would be informed of the unclaimed monies, the role of the National Investor Protection Fund (NIPF), and the procedures for verifying and recovering legitimate claims, stressing that SEC is committed to ensuring that investors’ funds are returned to their rightful owners.
The DG stated that unclaimed monies administered by the NIPF include return funds from public offers, scheme consideration arising from mergers, acquisitions and corporate restructuring transactions, as well as other capital market-related funds that have remained dormant.
He disclosed that the town hall meetings would be held in the six geopolitical zones and the Federal Capital Territory.
In addition, electronic and social media platforms would be used to broaden public awareness on this issue, with efforts to be made to address the transmission of securities following the death of an investor, noting that many families were either unaware that their deceased relatives owned shares or lacked knowledge of the legal and administrative procedures required to transfer such investments to rightful beneficiaries.
“As a result, valuable investments and returns on investments sometimes remain inaccessible for many years, thereby denying beneficiaries the financial benefits intended for them,” he said, urging investors to maintain proper records of their investments and encouraging families to take proactive steps to preserve inherited wealth.
By Dipo Olowookere
The decision of investors to book profit after the previous session’s gains pulled back Customs Street by 0.09 per cent on Thursday.
The selling pressure was mainly on BUA Cement, which put the Nigerian Exchange (NGX) Limited off-balance during the session.
Analysis of the trading data showed that the industrial goods sector was the sole decliner, losing 2.85 per cent, as a result of the poor performance of BUA Cement at the market yesterday.
The other key sectors of the bourse were bullish, with the banking space up by 2.87 per cent. The consumer goods index appreciated by 0.30 per cent, the insurance counter improved by 0.16 per cent, and the energy segment rose by 0.08 per cent.
At the close of business, the All-Share Index (ASI) went down by 221.14 points to 242,145.61 points from 242,366.75 points, and the market capitalisation decreased by N32 billion to N156.207 trillion from N156.239 trillion.
Eunisell crashed by 10.00 per cent to N189.00, BUA Cement lost 9.99 per cent to quote at N275.60, CAP declined by 9.61 per cent to N142.45, Royal Exchange slipped by 9.55 per cent to N1.42, and Guinea Insurance tumbled by 5.38 per cent to 88 Kobo.
Conversely, First Holdco soared by 9.96 per cent to N87.25, McNichols gained 8.00 per cent to trade at N5.40, UBA appreciated by 7.93 per cent to N44.25, Veritas Kapital jumped by 6.85 per cent to N1.56, and Jaiz Bank chalked up 4.07 per cent to settle at N8.95.
It was observed that the market breadth index was positive after the exchange closed the session with 22 price losers and 27 price gainers, representing strong investor sentiment.
A total of 498.5 million shares valued at N34.9 billion were traded in 39,484 deals on Thursday, in contrast to the 476.3 million shares worth N29.6 billion transacted in 40,992 deals on Wednesday. This indicated that the trading volume grew by 4.66 per cent, the trading value increased by 17.91 per cent, and the number of deals depreciated by 3.68 per cent.
Japaul ended the day as the busiest equity after trading 77.7 million units for N231.5 million, Access Holdings sold 41.2 million units valued at N1.0 billion, First Holdco exchanged 38.8 million units worth N3.4 billion, UBA transacted 31.5 million units for N1.4 billion, and Fidelity Bank traded 23.8 million units worth N495.0 million.
