Economy
Climate Disclosure Guidelines for Nigerian Stock Market Underway
By Dipo Olowookere
The Nigerian Exchange Regulation (NGX RegCo) is working closely with its sister organisation, the NGX Limited, to design a dedicated set of Climate Disclosure Guidelines that will address climate change-related issues and serve as a complementary set of procedures to the NGX Sustainability Disclosure Guidelines.
The chief executive of NGX RegCo, Ms Tinuade Awe, dropped this hint recently at the 16th Annual International Business Law Conference hosted by the Nigerian Bar Association Section on Business Law (NBA-SBL) in Abuja.
At the event themed Recent Developments in the Business Law Environment, she said the rules, which will be developed in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, are currently in their formative stage, adding that the zero drafts would be published in a few months and public consultations for feedback to follow afterwards.
The capital market expert, who was speaking on ESG and the Nigerian Business Environment during a panel discussion, used the occasion to appeal to the public and private stakeholders to urgently prioritise the implementation of key national and global Environmental, Social, and Governance (ESG) related regulations.
According to her, prioritising the implementation of key national and global ESG-related regulations will improve Nigeria’s ESG performance and reputation on the global stage and guarantee its contribution to the global development agenda such as the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement.
“The rapidly evolving global ESG landscape requires a deliberate partnership between all Nigerian public and private sector stakeholders who must embrace their responsibility to help create a sustainable future by being transparent in their approach to addressing ESG-related risks and opportunities, and their contribution towards sustainable development,” she added.
Ms Awe charged the Nigerian government to adopt initiatives that accelerate progress toward mandatory reporting on key ESG-related issues as well as climate-related reporting.
“These initiatives would ensure private and public sector companies become cognizant of global trends on climate-related reporting in line with leading guidance frameworks such as the TCFD recommendations as well as the International Sustainability Standards Board (ISSB) which has recently developed a comprehensive set of guidelines on general sustainability and climate-related disclosures to improve the availability of standardized, decision-useful non-financial data for the investment decision-making process,” she stated.
Concerning NGX RegCo’s contribution to the development and implementation of ESG regulation in Nigeria, she cited the 2019 NGX Sustainability Disclosure Guidelines which provide issuers with a step-by-step approach to integrating sustainability in their organisational activities and operations.
“These guidelines also provide guidance on best practice sustainability reporting that comply with global standards including the Global Reporting Initiative (GRI),” Ms Awe said, noting that “NGX RegCo also played a leading role in developing the regulation for the development of Nigeria’s green bond market and other sustainable financial products that address environmental and social challenges affecting Nigeria along with the Federal Ministry of Environment, NGX Limited and other industry stakeholders.
“This was done in recognition of the climate finance needs particularly in Nigeria, and the urgent action required to combat climate change as enshrined in the Paris Agreement on Climate Change, and the efforts culminated in the issuance of the maiden N10.69 billion ($25.8 million) 13.48% 5-year green bond in 2017.”
By Dipo Olowookere
The positive market breadth index recorded by the Nigerian Exchange (NGX) Limited could not save it from further claws of the bears on Friday.
The major performance indicators, the All-Share Index (ASI) and the market capitalisation, depreciated by 0.03 per cent and 0.01 per cent, respectively.
The ASI was down by 78.58 points to 245,283.68 points from the previous day’s 245,362.26 points, and the market capitalisation receded by N14 billion to N158.326 trillion from Thursday’s N158.340 trillion.
Business Post reports that market participants traded 943.0 million equities valued at N46.7 billion in 55,480 deals compared with the 2.1 billion equities worth N230.8 billion transacted in 48,231 deals a day earlier.
This implied that the trading volume shrank by 55.10 per cent, the trading value reduced by 79.77 per cent, and the number of deals surged by 15.03 per cent.
An analysis of the sectoral performance showed that the consumer goods space crashed by 0.60 per cent and the energy index went down by 0.09 per cent.
However, the banking sector improved by 1.90 per cent, the insurance counter expanded by 0.75 per cent, and the industrial goods segment soared by 0.10 per cent.
There were 33 appreciating stocks and 29 depreciating stocks during the last trading session of the week and month of July, indicating bullish investor sentiment despite the poor outcome.
CAP lost 9.97 per cent to trade at N128.25, Veritas Kapital depreciated by 9.49 per cent to N1.43, Vitafoam Nigeria slipped by 7.70 per cent to N179.80, The Initiates dipped by 6.67 per cent to N28.00, and NAHCO crashed by 6.63 per cent to N155.00.
Conversely, Eterna gained 10.00 per cent to sell for N33.00, Consolidated Hallmark also grew by 10.00 per cent to N8.36, McNichols expanded by 9.52 per cent to N5.75, Honeywell Flour increased by 8.96 per cent to N18.25, and First Holdco chalked up 8.00 per cent to quote at N129.55.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its bullish run on Friday, July 31, by 0.99 per cent.
This raised the NASD Security Index (NSI) by 43.54 points to 4,431.71 points from 4,388.17 points, and lifted the market capitalisation by N26.13 billion to N2.659 trillion from N2.633 trillion.
The growth came amid a significant decline in the activity level, as the volume of securities decreased by 73.0 per cent to 690,990 units from 2.6 million units, the value of securities slid by 15.0 per cent to N75.0 million from the preceding session’s N88.3 million, and the number of deals contracted by 31.6 per cent to 26 deals from the 38 deals recorded a day earlier.
The most active stock by value on a year-to-date basis remained Great Nigeria Insurance (GNI) Plc, with a turnover of 3.4 billion units valued at N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 76.6 million units exchanged for N5.5 billion.
The most active stock by volume on a year-to-date basis was also GNI Plc, with the sale of 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
Investor sentiment was bullish yesterday after a positive market breadth index triggered by five price gainers and two price losers, led by 11 Plc, which gave up N14.99 to close at N225.01 per share versus the previous day’s N240.00 per share, and MRS Oil Plc, which shed N14.55 to settle at N132.00 per unit versus N146.55 per unit.
However, Nipco Plc gained N41.50 to sell at N456.50 per share compared with the preceding session’s N415.00 per share, FrieslandCampina Wamco Nigeria Plc appreciated by N12.93 to N147.93 per unit from N135.00 per unit, Nitrox Industrial Gases Plc improved by N1.00 to N20.00 per share from N19.00 per share, CSCS Plc soared by 54 Kobo to N102.00 per unit from N101.46 per unit, and Industrial and General Insurance (IGI) Plc jumped by 1 Kobo to 50 Kobo per share from 49 Kobo per share.
By Adedapo Adesanya
The value of the Nigerian Naira weakened against the United States Dollar in the different segments of the foreign exchange (FX) market on Friday, amid fresh forex demand pressure.
In the black market, the domestic currency depreciated against the greenback by N5 to sell for N1,405/$1 compared with the previous day’s N1,400/$1, and at the GTBank FX desk, it lost N4 to quote at N1,374/$1, in contrast to the previous session’s N1,370/$1.
Similarly, in the Nigerian Autonomous Foreign Exchange Market (NAFEX), it slipped by N1.49 or 0.11 per cent to settle at N1,368.22/$1 compared with the preceding day’s N1,366.73/$1.
In the same vein, the local currency depleted against the Pound Sterling by N3.50 to close at N1,837.79/£1 versus Thursday’s price of N1,834.29/£1, and against the Euro, it shed 90 Kobo to finish at N1,573.87/€1 compared with the preceding session’s N1,572.97/€1.
Data from the Central Bank of Nigeria (CBN) indicated that interbank FX turnover marginally grew above the previous day by 0.97 per cent to $58.990 million from $58.423 million, with the number of deals executed by financial institutions down by 2.82 per cent to 69 deals from 71 deals, as the nation’s foreign reserves further declined to $51.922 billion from $51.938 billion.
A look at the cryptocurrency market showed that Bitcoin (BTC) fell by 1.4 per cent to $62,004.42 as renewed US–Iran tensions lifted oil prices and strengthened the US Dollar.
Iran said it attacked two oil tankers attempting to cross the waterway under US military escort. Tehran also claimed it turned back four other vessels, while ship-tracking data showed that traffic through the strait remained thin.
The development carries greater market risk than an isolated attack on commercial vessels because the presence of a US escort raises the possibility of a direct military response.
This negatively impacted the crypto space, with Ripple (XRP) down by 1.5 per cent to $1.06, and Ethereum (ETH) losing 1.2 per cent to trade at $1,867.85. Solana (SOL) depreciated by 0.9 per cent to $72.91, TRON (TRX) shrank by 0.4 per cent to $0.3271, and Dogecoin (DOGE) crashed by 0.3 per cent to $0.0698.
However, Cardano (ADA) appreciated by 0.9 per cent to $0.1711, and Binance Coin (BNB) went up by 0.1 per cent to $589.78, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
