By Dipo Olowookere
The Nigerian Stock Exchange (NSE) was brutally dealt with on Monday by the deadly coronavirus codenamed COVID-19 by the World Health Organisation (WHO).
At the first trading day of the week, the stock market lost 1.53 percent, dragging the index to the 25,000 threshold and expanding the year-to-date loss to 3.82 percent.
Business Post reports the poor performance of the market led to the 399.89 points lost by the All-Share Index (ASI), which dropped to 25,816.57 points from 26,216.46 points.
It further caused the market capitalisation to reduce by N208 billion to N13.449 trillion from N13.658 trillion and also leading 16 equities to 52-week lows at the close of transactions yesterday.
The new stocks that fell to their lowest levels in one year were Nestle Nigeria at N1,017, GTBank at N22.70, CAP at N22.15, Unilever Nigeria at N13.50, Ecobank at N5.10, PZ Cussons at N4.05, Red Star Express at N2.95, NCR Nigeria at N2.20, NEM Insurance at N1.70, Cutix at N1.25, UPL at N1.03, Learn Africa at N1.01, NPF Microfinance Bank at 87 Kobo, Champion Breweries at 79 Kobo, Unity Bank at 49 Kobo and Linkage Assurance at 40 Kobo.
Business Post reports that a total of 325.3 million shares worth N6.0 billion were traded by investors at the stock exchange on Monday in 5,054 deals compared with the 416.3 million equities worth N6.2 billion that exchanged hands in 5,220 deals last Friday.
This indicated that while the volume of transactions fell yesterday by 21.87 percent, the value went down by 2.67 percent, with the number of deals going down by 3.18 percent.
The banking sector dominated the activity chart during the session and when the market closed for the day, GTBank emerged the most traded equity, selling 93.7 million shares valued at N2.1 billion.
Zenith Bank traded 44.2 million units worth N798.5 million, UBA exchanged 18.4 million stocks for N121.3 million, Fidelity Bank transacted 17.7 million equities worth N32.3 million, while FBN Holdings sold 16.8 million stocks valued at N79.1 million.
Apart from the insurance sector which appreciated by 0.30 percent and the energy counter, which traded flat, every other sector closed in red.
The consumer goods index was the worst hit, losing 5.19 percent, while the banking counter lost 3.66 percent, with the industrial goods sector declining by 1.22 percent.
The biggest price loser for the day was Nestle Nigeria as its share price went down by N113 to N1017 per unit, while CAP fell by N2.45 to N22.15 per share.
Lafarge Africa depreciated by N1.55 to N13.95 per unit, Unilever Nigeria declined by N1.50 to N13.50 per share, while GTBank lost N1.10 to close at N22.70 per unit.
On the flip side, Africa Prudential continued its upward movement on Monday, rising by 15 kobo to sell at N4.85 per share, while Eterna gained 11 kobo to trade at N2.10 per unit.
Law Union and Rock Insurance appreciated by 9 kobo to quote at 99 kobo per share, FCMB also gained 9 kobo to sell at N1.80 per share, while AIICO Insurance improved by 6 kobo to trade at 83 kobo per share.
Business Post reports that in all, there were 28 price losers at the NSE on Monday compared with 9 price losers.
Stanbic IBTC Enlightens Investors on Available Safe Investment Options
By Ashemiriogwa Emmanuel
Following the strokes of economic uncertainties from the COVID-19 pandemic, Stanbic IBTC Asset Management, a subsidiary of Stanbic IBTC Holdings Plc, recently organised a webinar to proffer guidance on investing in uncertain times.
The webinar via Instagram was themed Investing in Uncertain Times and experts at the Stanbic IBTC enlightened the investing public about the available transparent and safe investment options.
Some of the in-house were Ms Fadekemi Obasanya, Head Investment Management and Ekene Nwaokoro, Fund Analyst.
In her presentation, Ms Obasanya emphasised the importance of gaining needful knowledge from investment professionals about the best investment options per time.
She also pointed out the various investment options offered by Stanbic IBTC which both current and prospective investors can take advantage of, leveraging on the well-informed financial guidelines provided by the organisation.
She said some of the investment options include Stanbic IBTC Money Market Fund, Stanbic IBTC Dollar Fund, Stanbic IBTC Enhanced Fixed Income Fund, Stanbic IBTC Bond Fund, among many others under the mutual funds.
Ms Obasanya further stated that many people become victims of fake investment platforms due to misinformation and indiscipline, urging investors to do due diligence before parting with their funds.
“A lot of people fell prey to fake investment platforms in the previous year. It is wise to stay disciplined and informed about credible investment outlets to avoid losing money, as the main objective of the investment is to generate regular income and capital appreciation.
“People need to be mindful of the type of investment they put their money in. This is why we designed a tool called ‘InvestBeta’ for intending investors to identify their risk appetite, which simply means the amount of risk they are willing and able to take, as well as the available investment options that can help them achieve their investment objective.
“There are also well-experienced financial advisors on standby to help investors decide on the most suitable options for them,” she said.
Also discussed at the session was the advantage of investing in the Stanbic IBTC Dollar Fund, a dollar-denominated mutual fund, which was a response to how investors can hedge against Naira devaluation.
Individuals were educated on the fundamentals of investing and viable investment options, especially amid an unstable economic terrain.
Capital Importation into Nigeria Falls to $875.6m in Q2 2021
By Aduragbemi Omiyale
Nigeria has recorded a quarter-on-quarter decline of 54.06 per cent in the total value of capital importation into the country in the second quarter of 2021, the National Bureau of Statistics (NBS) has revealed.
In a report released by the agency, it was disclosed that the FX inflows from April to June 2021 stood at $875.6 million in contrast to $1.9 billion recorded in the first quarter of this year.
On a year-on-year basis, the capital importation went down by 32.38 per cent as the inflows in the same period of last year was $1.3 billion.
Business Post observed that the decline in the period under review was because of lower inflows from foreign direct investments (FDIs), foreign portfolio investments (FPIs) and other investments.
However, in the report, the stats office said the largest amount of capital importation by type was received through portfolio investment, which accounted for 62.97 per cent ($551.4 million) of total capital importation, followed by other investment, which accounted for 28.13 per cent ($246.3 million) of total capital imported, with FDIs accounting for 8.90 per cent ($78.0 million) of total capital imported in Q2 2021.
By sector, capital importation by banking dominated in Q2 2021, reaching $296.5 million of the total capital
importation in Q2 2021, followed by financing with $205.9 million and shares with $194.6 million.
By source of the capital investment, the United Kingdom was on top with $310.3 million, accounting for 35.43 per cent of the total capital inflow in Q2 2021.
It was trailed by South Africa with $212.4 million and the United States with $83.4 million and by destination, Lagos State emerged as the top destination of capital investment in Nigeria in Q2 2021 with $780.1 million, contributing 89.09 per cent to the total capital inflow in Q2 2021 and by bank, Stanbic IBTC Bank Plc emerged at the top of capital investment in Nigeria in Q2 2021 with $310.2 million, accounting for 35.43 per cent of the total capital inflow in Q2 2021.
Standard Chartered Bank followed by attracting $282.4 million, while Citi Bank attracted $94.2 million in the second quarter of this year.
PenCom Drags 120 Firms to Court for Pension Act Violation
By Adedapo Adesanya
The National Pension Commission (PenCom) has disclosed that it was in court with about 120 companies that have refused to comply with the dictates of the 2014 Pension Reform Act (PRA).
The Director, Corporate Communications of the commission, Mr Peter Aghahowa, stated this in Lagos at the 2021 PenCom workshop for journalists in Lagos.
According to him, the organisation was working assiduously to ensure all pension laws as they affect various policies are totally complied with.
He noted that compliance varies according to the sector, adding that recovery agents have been engaged to ensure that funds that ought to be remitted to PenCom are not diverted under any guise.
“For the private sector, we engaged recovery agents. By the PRA, any company with more than three workers must key into the Contributory Pension Scheme (CPS).
“So, the recovery agents have been empowered. Once they check the books of companies, they will determine their liabilities.
“We have the employee and employer portion remittances. For those not remitting at all, there is a penalty.
“We have 120 cases in court and these are organisations we tried to work with and they were just recalcitrant.
“Going to court is the last resort because the goal is for the money to the RSAs. We always try to engage.
“In states, they have to enact and implement the CPS. We work with them in coming up with a bill and setting up a pension bureau.
“Most states have not implemented this well. In enforcing compliance here, you should tread softly. Accrued rights have been paid up”, he said.
The agency has, therefore, called for compliance on contributory pension remittances by employers across the country.
On her part, the PenCom DG, Mrs Aisha Dahir-Umar, disclosed that the commission has deepened technological innovation as it seeks to navigate through the challenges imposed by the pandemic.
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