Economy
NASD Generates N139m as Transaction Fees in 2019
By Adedapo Adesanya
The NASD Plc said it generated a total of N139 million as transaction fees in the 2019 financial year, lower than the N169 million raked in 2018.
This information was contained in the company’s annual report and financial statements for the period ended December 31, 2019.
An analysis of the company’s results by Business Post showed that the macroeconomic challenges had a huge effect on NASD in the accounting year.
This resulted in the 100.4 percent decline in the profit after tax of the coy for the 2019 financial year to N45.01 million from N90.4 million in the prior year.
In addition, NASD Plc further disclosed that its profit before tax went down by 41.9 percent to N36.1 million from the N62 million of the previous year.
Also, during the period under review, the exchange said the total market turnover dropped by 65.8 percent to N10.5 billion from N30.7 billion in the previous year, while the revenue generated by the firm went down by 3 percent to N162 million from N167 million earned in 2018.
It explained that the decrease in market activity experienced in 2019 was a sharp change in trend from what was witnessed in 2018 and was a direct result of a downturn in market activity as well as a reduction in the number of new securities admitted to the market.
The continued decline in the country’s risk profile coupled with the sustained dominance of the fixed income sector of the market also contributed to investor apathy, the coy said.
Despite the problems, the company recorded a 13.5 percent increase in investment income, which closed at N65.5 million compared with the N57.7 million recorded in 2018.
The first over-the-counter bourse in the country said it generated listing fees of N2.62 million, while total expenses amounted to N196.7 million compared to the N163 million recorded in the corresponding period of 2018.
The company said it recorded an operating loss of N30.6 million compared to an operating profit of N4.3 million recorded in the year 2018.
Total assets rose during the period under review by 7 percent to N660.8 million from N617.9 million, while total liabilities dropped 9.1 percent to 19.9 million from N21.9 million in 2018.
In terms of overall market activity, the overall NASD Securities Index (NSI) depreciated by 5.49 percent between January 2019 and December 2019, while the market capitalisation declined by 2.6 percent from N514.77 billion in January 2019 to N501.14 billion as of December 31, 2019.
Speaking on the outlook for the market, Chairman of NASD Plc, Mr Olutola Mobolurin, said, “The early passage of the 2020 budget promised to create a more enabling environment for economic growth.
“The coronavirus pandemic, however, has created a total disruption of global trade, capital flows and universal business practices.
“As the global business becomes less physically driven and more digital–human remote, we see an opportunity for us to exploit our nimbleness and unique position as an over-the-counter securities exchange.
“Fortuitously, in 2019 NASD had reassessed the company’s strategy and redefined its focus to facilitate it, becoming the hub of first call for capital formation in West Africa.
“We are expanding our product offerings and services to cater to the new business and capital raising environment. We have embarked on a material technology overhaul that will improve our scope, efficiency and effectiveness as an over-the-counter market.
“We shall continue to deliver our objectives to all stakeholders in NASD Plc,” he said.
The 7th Annual General Meeting (AGM) of NASD PLC will hold on Thursday, June 25 at NASD Plc, 9th Floor, UBA House, 57 Marina, Lagos at 11.00am.
Meanwhile, the board of directors of the company declared no dividend payment to shareholders for the year.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the south for the fourth consecutive session after it shed 1.18 per cent on Friday, March 13.
The unlisted securities market recorded a loss despite closing without a price decliner, and ending with two price gainers led by Geo Fluids Plc, which gained 1o Kobo to sell at N3.10 per share compared with the previous day’s N3.00 per share. Industrial and General Insurance (IGI) Plc appreciated during the session by 2 Kobo to trade at 54 Kobo per unit versus Thursday’s closing price of 52 Kobo per unit.
When the market closed for the day, the market capitalisation lost N29.83 billion to close at N2.489 trillion compared with the N2.519 trillion it finished a day earlier, and the NASD Unlisted Security Index (NSI) crashed by 49.84 points to 4,160.46 points from 4,210.31 points.
Market activity improved yesterday, as the volume of transactions rose 179.5 per cent to 10.4 million units from 3.7 million units, but the value of trades declined by 68.4 per cent to N29.9 million from N95.0 million, while the number of deals weakened by 11.5 per cent to 46 deals from 52 deals.
Central Securities Clearing Systems (CSCS) Plc remained the most active stock by value on a year-to-date basis with 38.4 million units worth N2.4 billion, Okitipupa Plc followed with 6.4 million units traded at N1.1 billion, and FrieslandCampina Wamco Nigeria Plc transacted 6.3 million units for N584.3 million.
Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.1 billion units valued at N415.6 million, trailed by Geo-Fluids Plc with 130.8 million units valued at N504.5 million, and CSCS Plc with 38.4 million units worth N2.4 billion.
By Adedapo Adesanya
The Naira continued to claw back some gains against the Dollar in the different segments of the foreign exchange (FX) market, as its value was strengthened on Friday.
In the black market, it gained N10 against the United States Dollar yesterday to close at N1,400/$1 compared with the preceding day’s rate of N1,410/$1, and at the GTBank forex counter, it chalked up N6 to close at N1,385/$1, in contrast to the N1,391/$1 it was traded a day earlier.
Similarly, in the Nigerian Autonomous Foreign Exchange Market (NAFEX), it appreciated against the greenback during the session by N5.28 or 0.38 per cent to quote at N1,366.23/$1 versus Thursday’s closing price of N1,371.51/$1.
It also improved its value against the Pound Sterling in the official market on Friday by N21.81 to settle at N1,812.99/£1 compared with the previous day’s N1,834.80/£1, and gained N13.86 against the Euro to sell at N1,568.03/€1 versus N1,581.89/€1.
Pressure eased further on the FX market as the Central Bank of Nigeria (CBN) continued interventionist operations this week, selling Dollars to banks to boost liquidity after a $500 million boost last week.
This was complemented by inflows from foreign investors, exporters and non-bank corporates, among others, while Nigeria’s gross external reserves remained above $50 billion, the highest since 2009.
The Governor of the apex bank, Mr Yemi Cardoso, also eased fears of a Naira devaluation, saying the country’s financial system has been strengthened by reforms.
Regardless, external pressure looms as the US Dollar strengthened globally due to its war with Iran, now ongoing for three weeks.
Meanwhile, the cryptocurrency market was largely down as traders and investors continue to align with current realities.
The market is adapting to the conflict in real time. Early in the war, every headline produced an outsized reaction because nobody could price the tail risk. Now, traders have a framework where strikes happen, oil spikes and bitcoin dips only to recover again.
Cardano (ADA) depreciated by 3.8 per cent to $0.2623, Dogecoin (DOGE) lost 1.7 per cent to finish at $0.0948, Ripple (XRP) slumped 1.5 per cent to $1.39, Solana (SOL) dropped 1.4 per cent to sell for $87.33, Binance Coin (BNB) went down by 1.3 per cent to $653.58, Bitcoin (BTC) declined by 1.1 per cent to $70,670.63, and Ethereum (ETH) decreased by 0.9 per cent to $2,078.78.
However, TRON (TRX) appreciated by 1.7 per cent to $0.2941, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Adedapo Adesanya
The price of the major crude oil grade, Brent crude oil, closed above $100 on Friday for the second consecutive session, as the Iran war heads toward its third week, with oil tanker traffic through the Strait of Hormuz still effectively at a standstill.
It gained 2.67 per cent or $2.68 during the trading day to close at $103.14 per barrel, while the US West Texas Intermediate (WTI) crude oil grade appreciated by 3.11 per cent or $2.98 to settle at $98.71 per barrel.
Brent futures were up about 10 per cent for the week following the 27 per cent rise seen last week, which marked the biggest weekly gain in oil prices since the COVID-19 pandemic in 2020. WTI futures, which saw their best week since 1983 last week, ended the week more than 8 per cent higher.
US President Donald Trump said American forces launched a major bombing raid on Iran’s strategic Kharg Island, targeting military facilities on the key Persian Gulf outpost while warning Iran that its vital oil infrastructure could be destroyed if shipping in the Strait of Hormuz is disrupted.
The terminal accounts for roughly 90 per cent of Iranian crude shipments, loading millions of barrels per day onto tankers bound largely for Asian markets.
The US and Israel’s strikes in the conflict have largely targeted Iranian military and nuclear infrastructure. Oil facilities elsewhere in Iran have been hit, but Kharg’s massive storage tanks, jetties, and pipelines had remained untouched until the latest strike.
Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep fighting in a message delivered via state television.
There have been a number of attacks on foreign ships in or near the Strait, feeding into concerns that a prolonged war could translate to a global economic shock.
Prices are rising despite the US and its allies rolling out some measures to keep a lid on energy costs.
The International Energy Agency (IEA) has agreed to release 400 million stockpiled barrels, the largest such action in history.
The US has issued a 30-day waiver for India to purchase sanctioned oil from Russia. President Donald Trump is considering loosening rules under the Jones Act that require American ships to transport goods between domestic ports, including oil and gas, in an effort to lower costs.
Traders are continuing to monitor developments in the Middle East.
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