Economy
Foreign Investors Put N70b on Nigerian Stocks in One Month
**As Total Transactions Rise by 28% in March
By Dipo Olowookere
Though the Nigerian Stock Exchange (NSE) has been bullish since February this year, this has provided an opportunity for wise investors to buy up shares experience poor run lately at the market.
According to the domestic and foreign portfolio participation in equity trading report for the month of March 2018 released by the NSE, the value of total transactions at the nation’s bourse last month increased by 28.50 percent from N212.05 billion recorded in February 2018 to N272.48 billion achieved in March 2018.
The report obtained by Business Post showed that the cumulative transactions from January to March increased by 48.29 percent from N454.48 billion recorded in 2017 to N878.97 billion in 2018.
It was observed that during the period, domestic investors outperformed foreign investors by 2.96 percent.
Specifically, total domestic transactions increased by 8.88 percent from N128.83 billion in February to N140.27 billion in March 2018.
It was gathered that last month, investors have intensified their interest in the stock market, buying up more shares at the market.
This was reflected in the increase in the value of their transactions during the period under review.
However, the amount of money they have pulled out from the market increased in March 2018 when compared with February 2018, but lower than what was recorded in January 2018.
Business Post reports that foreign transactions increased more significantly by 58.87 percent from N83.22 billion two months ago to N132.21 billion last month.
In the report, it was observed that there was a 55.29 percent increase in foreign inflows from N44.89 billion in February 2018 to N69.71 billion in March 2018.
Also, foreign outflows increased by 63.06 percent from N38.33 billion to N62.50 billion within the same period.
The report said the institutional composition of the domestic market increased by 19.97 percent from N76.08 billion in February to N91.27 billion in March 2018.
However, the retail composition decreased by 7.11 percent from N52.75 billion to N49 billion within the same period.
Since 2011, foreign transactions consistently outperformed domestic transactions.
However, domestic transactions marginally outperformed foreign transactions in 2016 and 2017, accounting for 52 percent of the total transaction value in 2017.
Also, foreign transactions, which was N1.539 trillion in 2014, declined to N518 billion in 2016, but increased significantly by 133 percent to N1.208 trillion in 2017, thereby accounting for about 48 percent of total transactions in 2017.
Over an 11 year period, domestic transactions have decreased by 62.46 percent from N3.556 trillion in 2007 to N1.335 trillion in 2017.
However, there was a significant increase in 2017 by 111 percent from N634 billion recorded in 2016.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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