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Economy

At Last, GSK Leaves Stock Exchange in Nigeria

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GlaxoSmithKline GSK

By Dipo Olowookere

The entire shares of GlaxoSmithKline (GSK) Consumer Nigeria Plc have been delisted from the Nigerian Exchange (NGX) Limited.

The equities of the organisation were taken off the stock exchange on Monday, February 5, 2024, after it applied to quit the bourse last year.

GSK is exiting the Nigerian market after 51 years, apparently due to some business challenges it was facing in the country, particularly because of the foreign exchange (FX) crisis affecting the macroeconomic environment.

Many businesses have had to close shops or reorganise their business models because of the shortage in the supply of forex into the currency market, which has led to the devaluation of the Naira more than once since the administration of Mr Bola Tinubu assumed office in May 2023.

Business Post reports that rising inflation and weak purchasing power have made it difficult for companies to scale up their operations and make profits.

According to the National Bureau of Statistics (NBS), inflation rose in December 2023 by 28.92 per cent, though the Central Bank of Nigeria (CBN) has said it intends to bring down the rate to 21.4 per cent this year.

In an update to the investing community, the NGX confirmed that the “entire issued share capital of GSK” has been delisted from its platform.

“We refer to our market bulletin of 23 January 2024 with reference Number: NGXREG/LRD/MB4/24/01/23 wherein the market was notified of the full suspension placed on trading in the securities of GlaxoSmithKline Consumer Nigeria Plc in preparation for the delisting of the company.

“Following the approval of the company’s application to delist its entire issued share capital from NGX Limited, please be informed that the entire issued share capital of GSK was on Monday, February 5, 2024, delisted from the daily official list of NGX,” the notice read.

GSK is a major player in the pharmaceutical and biotechnology sectors in Nigeria, with household brands like Panadol, Sensodyne, Andrews Liver Salt, Voltaren, Panadol, Otrivin, Horlicks, Ribena, Lucozade, Macleans, and Ampiclox, among others.

Since it announced its plan to leave the Nigerian market in August 2023, prices of these products have risen. The company has stopped manufacturing these products in the country and is opting to produce outside and give a third-party company the distribution rights in Nigeria.

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Economy

NGX Jumps 1.17% on Strong Investor Sentiment

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NGX 30 Index

By Dipo Olowookere

The upward movement witnessed at the Nigerian Exchange (NGX) Limited in the past trading session continued on Wednesday by 1.17 per cent.

The bullish momentum was buoyed by bargain-hunting in mid and large-cap shares on the platform amid renewed confidence in Nigerian equities.

Though the insurance counter closed lower by 0.04 per cent due to profit-taking, the gains by the others ensured that the domestic bourse remained in the green territory.

The industrial goods index appreciated by 2.11 per cent, the consumer goods sector surged by 1.44 per cent, the banking industry increased by 0.49 per cent, and the energy space rose by 0.20 per cent.

Consequently, the All-Share Index (ASI) went up by 1,272.64 points to 107,847.62 points from 106,574.98 points and the market capitalisation gained N794 billion to settle at N67.290 trillion compared with the previous day’s N66.496 trillion.

The volume and value of transactions as well as the number of deals decreased yesterday by 7.52 per cent, 15.25 per cent, and 1.19 per cent, respectively.

This was because investors bought and sold 442.6 million stocks worth N10.0 billion in 15,376 deals at midweek versus the 478.6 million stocks valued at N11.8 billion in 15,561 deals.

Sterling Holdings traded 49.6 million shares for N296.8 million, Ellah Lakes exchanged 34.5 million equities valued at N133.9 million, Zenith Bank transacted 25.6 million stocks worth N1.3 billion, Access Holdings sold 19.6 million shares valued at N553.7 million, and AIICO Insurance traded 18.5 million equities worth N32.2 million.

Business Post reports that Customs Street ended midweek with a positive market breadth index after 51 stocks closed in green and 16 stocks ended in red, indicating a strong investor sentiment.

VFD Group and Ikeja Hotel were the best-performing equities on Wednesday after chalking up 10.00 per cent each to sell for N52.80 and N14.85 apiece, Honeywell Flour gained 9.99 per cent to quote at N12.66, Transcorp Hotels also improved its value by 9.99 per cent to N126.10, and Eterna rose by 9.93 per cent to N48.70.

However, the worst-performing equity for the day was CWG with an 8.95 per cent loss to trade at N8.65, Regency Alliance slumped by 7.89 per cent to 70 Kobo, Lasaco Assurance tumbled by 7.25 per cent to N3.20, Royal Exchange plunged by 7.22 per cent to 90 Kobo, and SCOA Nigeria crashed by 6.54 per cent to N3.43.

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Economy

Controversial Tax Reform Bills Scale Second Reading at House of Reps

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tax reform bills

By Adedapo Adesanya

The four tax reform bills transmitted to the National Assembly last year by President Bola Tinubu have finally scaled second reading in the House of Representatives.

The bills, which have generated criticisms across the country, scaled the second reading on the floor of the Green Chamber on Wednesday, five months after the President transmitted them to the parliament for consideration following the recommendations of the Presidential Committee on Fiscal Policy and Tax Reforms led by a tax expert, Mr Taiwo Oyedele.

The bills include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

They are gearing up for public hearing, which should be announced soon.

The four bills met minimal opposition in the Senate but faced a higher level scrutiny at the 360-member House of Reps as well as criticisms from northern statesmen, including governors and leaders.

During the midweek plenary, Mr Sada Soli feared that some sections of the new bills might contradict the 1999 constitution. According to the lawmaker, the issue of derivation must be clearly defined to avoid any ambiguity.

He was hopeful that the committee saddled with the responsibility to scrutinise the bills would address the issues that might arise before the bills are passed.

Other lawmakers also drew attention to the 40 acts which the bill sought to amend and requested they should be laid before the National Assembly.

The lawmakers said the issue of multiple taxation involving property purchase provided in the bill should be addressed, as the provision stated that the buyer and seller must pay tax.

In response, the Chairman of the tax reforms committee, Mr Oyedele, who has tirelessly defended the bills since they were presented, lauded the efforts of the lawmakers.

“We are grateful to the lawmakers for their robust debates and diligent consideration of the bills and look forward to continued engagement with the National Assembly and active participation in the public hearing process.

“May Nigeria win!,” he wrote.

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Economy

NASD Unlisted Security Index Slips 0.49%

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NASD Unlisted Security Index

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange fell by 0.49 per cent on Tuesday, February 11 as investors recalibrated their portfolios, selling off some securities they fell have yielded returns since they were acquired from the market.

This action by the market participants depleted the value of the trading platform by N8.86 billion during the trading session to N1.803 trillion from the N1.812 trillion it closed in the preceding session and the NASD Unlisted Security Index (NSI) went down by 15.65 points to settle at 3,184.02 points compared with 3,199.67 points recorded at the previous session.

UBN Property Plc declined by 17 Kobo to end at N2.05 per share compared with Monday’s closing price of N2.22 per share, Geo Fluids Plc decreased by 30 Kobo to N4.24 per unit from N4.54 per unit, Central Securities Clearing System (CSCS) Plc lost N1.50 to settle at N23.00 per share versus N24,50 per share, and FrieslandCampina Wamco Nigeria Plc crumbled by 12 Kobo to close at N39.98 per unit, in contrast to the preceding session’s N40.10 per unit.

Conversely, Air Liquide Plc appreciated by 41 Kobo to N8.33 per share from N7.92 per share and Afriland Properties Plc increased by 75 Kobo to sell for N18.65 per unit versus N17.90 per unit.

During the trading session, there was a 270.2 per cent rise in the volume of securities traded by investors to 1.9 million units from 502,112 units, the value of securities transacted grew by 223.4 per cent to N48.2 million from N14.9 million, and the number of deals went up by 63.2 per cent to 31 deals from 19 deals.

Impresit Bakolori Plc finished the day as the most active stock by value (year-to-date) with 519.5 million units worth N504.3 million, trailed by FrieslandCampina Wamco Nigeria Plc with 7.4 million units valued at N293.2 million, and Geo-Fluids Plc with 9.3 million units sold for N44.8 million.

Similarly, Impresit Bakolori Plc ended the session as the most active stock by volume (year-to-date) with 519.5 million units worth N504.3 million, followed by Industrial and General Insurance (IGI) Plc with 69.6 million units sold for N23.6 million, and Geo-Fluids Plc with 10.7 million units valued at N51.2 million.

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