By Aduragbemi Omiyale
The Exchange Traded Funds (ETFs) market in Nigeria is beginning to witness high patronage of investors, data from the Nigerian Exchange (NGX) Limited has revealed.
However, foreign participation dominated the ETFs market as 92 per cent of foreign investors’ outclassed domestic investors at 8 per cent.
One of the main reasons for the dominance of offshore in the market is because it provides an avenue for them to move their FX out of the country as the nation battles with a liquidity crisis.
In the first quarter of 2021, the market witnessed a 3,064 per cent rise in trade volume, lifting the market capitalisation to N20.324 billion.
Business Post gathered that the volume of trades recorded in the market in the period under consideration rose to 5.3 million units from 0.2 million units in the corresponding period of 2020.
In the NGX Quarterly report for Q1 2021, it was revealed that this gradual increase in interest in the ETF market started in early 2020 when the world was hit by the COVID-19 pandemic.
Analysis of the report revealed that market turnover (value traded) skyrocketed by a mammoth 4,556 per cent between Q1 2020 and Q1 2021 even as five of the listed securities were the most active during the period under review.
NewGold ETF took the lead in both value and volume traded in the ETF space as it traded 3.47 million units valued at N29.63 billion.
Vetiva Griffin 30 was next, trading 814,372 units worth N13.94 million, Lotus Halal transacted 746,400 units worth N9.95 million, Meristem Value ETF sold 163,09 units valued at N2.90 million while Vetiva Banking ETF traded 56,116 units valued at N232,397.
This means that over 5.25 million units were traded and valued at N29.656 billion in the period under review.
Further analysis revealed that 10 brokers drove 99.8 per cent of total transaction value and 96.6 per cent of total volumes of ETFs traded in Q1 2021.
Stanbic IBTC Stockbroker retains its top position in this category, having traded in stocks worth N88.2 billion between January and March 2021, representing 12.99 per cent of the total value of shares traded in the period under review.
Cardinalstone Securities followed on the list with trading in stocks valued at N47.36 billion, accounting for 6.97 per cent of the total value of shares traded in the first quarter of the year.
ABSA Securities Nigeria was next with its total trades valued at N41.53 billion in the period under review representing 6.12 per cent of the total value recorded in the stock exchange market while Rencap Securities also traded in stocks worth N35.81 billion, to stand fourth on the list as it accounted for 5.27 per cent of the recorded trades in monetary terms.
Nigeria’s Oil, Gas Export Sales Rise 180.3%
By Adedapo Adesanya
Nigeria witnessed a 180.3 per cent increase in the total crude oil and gas export sales in May, standing at $219.8 million compared to the value in April 2021.
The Nigerian National Petroleum Corporation (NNPC) disclosed in its Monthly Financial and Operation Report (MFOR) for the month of May 2021 that crude oil export sales contributed $181.2 million (82.5 per cent) of the dollar transactions compared with $4.22 million contributions in the previous month.
Similarly, the export gas sales component stood at $38.6 million in May.
The MFOR showed that between May 2020 and May 2021, the corporation exported crude oil and gas worth $1.6 billion, while natural gas production in the country increased by 6.2 per cent at 222.23 billion cubic feet in May 2021.
The report noted that, “In the gas sector, natural gas production in the month under review increased by 6.19 per cent to 222.23 billion cubic feet (bcf) compared with output in the previous month, translating to an average production of 7,177.53 million standard cubic feet (mmscf) of gas per day.
“For the period May 2020 to May 2021, a total of 2,898.34 bcf of gas was produced, representing an average daily production of 7,322.94mmscf during the period.
“Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 60.94 per cent, 20.04 per cent and 18.99 per cent respectively.
“Out of the 216.29 bcf of gas produced in May 2021, a total of 133.56 bcf was commercialised, consisting of 44.02bcf and 89.54 bcf for the domestic and export markets respectively.”
This translates to a total supply of 1,419.83 mmscfd of gas to the domestic market and 2,893.66 mmscfd to the export market for the month.
This, it said, implied that 61.8 per cent of the average daily gas produced was commercialised, while the balance of 38.2 per cent was either re-injected, used as upstream fuel or flared.
In the downstream sector, the report indicated that the Petroleum Products Marketing Company (PPMC), a downstream subsidiary of the NNPC, posted a total sum of N295.7 billion from the sales of petroleum products in the month under review, compared with N220.1 billion sales in April 2021.
“Total revenues generated from the sales of petroleum products for the period of May 2020 to May 2021 stood at N2.345 trillion where Premium Motor Spirit (PMS), also known as petrol, contributed about 99.6 per cent of the total sales with a value of N2.336 trillion.
“In terms of volume, the figure translated to a total of 2.241 billion litres of white products sold and distributed by PPMC in the month under review, compared with 1.673 billion litres in the month of April
“Total sales of petroleum products for the period of May 2020 to May 2021 stood at 18.651 billion litres and PMS accounted for 99.69 per cent of total volume,’’ it added.
The state oil company noted that in May, 64 pipeline points were vandalised representing a 39.1 per cent increase from the 46 points recorded in April 2021.
It noted that the Port Harcourt area accounted for 65 per cent, while Mosimi and Kaduna Areas accounted for 30 per cent and five per cent respectively of the vandalised points.
Ngige Confirms FG Borrows from World Bank, Others to Pay Salaries
By Dipo Olowookere
Minister of Labour and Employment, Mr Chris Ngige, has confirmed that the federal government under President Muhammadu Buhari borrows funds from international sources to pay salaries of workers because of a shortfall in the country’s revenue.
Mr Ngige, while speaking on Sunday night on a programme monitored by Business Post on Channels TV, stated that the government takes borrowed funds from foreign institutions like the World Bank to offset some recurrent expenditures.
Last week, after the Senate resumed plenary, a letter from President Buhari requesting approval for fresh offshore loans of $4 billion and €710 million was read to the lawmakers by their head, Mr Ahmad Lawan.
This generated different reactions from various quarters. The government defended the borrowings, arguing that they were being used to develop the country, especially in the area of infrastructure.
In the midst of these, the Debt Management Office (DMO) said the nation’s total debt at the second quarter of this year stood at N35.5 trillion.
Some Nigerians had argued that the penchant for this government for borrowing was becoming unbearable, especially when the country was using about 98 per cent of generated revenue to service the debts.
But the government has maintained that the loans being taken by the federal government were not above the limit and that the projects being executed with the funds, including rails, were capable of generating revenue to repay them.
Next month, Nigeria will borrow between $3 billion and $6.2 billion from local and international investors through the sale of Eurobonds, adding to the debts already on ground.
While speaking on Sunday Politics anchored by Mr Seun Okinbaloye, Mr Ngige admitted that the central government truly takes funds from international lenders to pay workers.
“Talk in terms of something like the residency training funds; that money was appropriated in 2021. It was delayed because the President signed the supplementary budget [late] but because the resident doctors did not want to listen, they wanted the money to go into their accounts immediately, according to them.
“I told them, no, when the budget office explained [that] we don’t have this cash, the borrowing agencies [like the] World Bank and the rest will give us this money through the CBN (Central Bank of Nigeria (CBN) in Dollars and we change it to give to you, to pay you and others that are involved because we are funding the budget through some deficits.
“So, I will tell the budget office, expedite action, do this in one week because this is an emergency, these people are not accountants, they don’t understand and we put it down and the budget office rises up to the occasion, works day and night and put it out, Minister of Finance approves, AIE (Authority to Incur Expenditure) and the N4.8 billion is there, waiting to be disbursed.
“Give us the names of those to be paid and they bring (sic) their names through the post-graduate medical college and when the names come (sic), their parent body, which is the Ministry of Health discovered that there were names that were no resident doctors. So, how do you pay?
“Okay, they submitted 8,000 names, they have cleaned them down to 5,800, which means about 2,000+ are not resident doctors. How do you pay them?
“Further investigation, according to the Minister of Health, revealed that some of them are medical officers, senior medical officers, principal medical officers, who hold full appointments, some of them are not resident doctors but because they have been captured in resident doctors association, they want them to be paid; that’s wrong.
“We tell (sic) resident doctors, ‘give them more time to clean up’. They are cleaning it (the list) up, the money is there. So, I expected the resident doctors to go and help them clean up and submit the authentic list,” Mr Ngige said on the programme.
On Monday, while speaking on Politics Today with the same anchor, the spokesman of the President, Mr Femi Adesina, while asked if the government borrows for consumption, answered that the larger part of the borrowed funds is used for critical projects capable of boosting the economy.
Selloffs Resume at Nigerian Exchange as Investors Lose N19bn
By Dipo Olowookere
The first trading session on the floor of the Nigerian Exchange (NGX) Limited was on a negative note as the market went down by 0.10 per cent on Monday.
Selloffs mostly in consumer goods and banking stocks influenced the decline recorded at the exchange yesterday.
Business Post reports that the insurance index went down by 0.70 per cent, the banking counter declined by 0.27 per cent, while the consumer goods space shed 0.16 per cent.
But the industrial goods index appreciated yesterday by 0.13 per cent, while the oil/gas sector improved by 0.08 per cent.
At the close of transactions, the All-Share Index (ASI) decreased by 37.45 points to 38,906.42 points from 38,943.87 points, while the market capitalisation reduced by N19 billion to N20.271 trillion from N20.290 trillion.
The market breadth closed at equilibrium yesterday as there were 19 price gainers and 19 price losers when trading activities were stopped for the session at 2:30 pm.
Sitting on top of the losers’ chart was SCOA Nigeria as its share price went down by 9.43 per cent to settle at 96 kobo and was followed by Veritas Kapital, which lost 8.70 per cent to trade at 21 kobo.
Linkage Assurance depreciated by 6.56 per cent to 57 kobo, PZ Cussons slipped by 5.98 per cent to N5.50, while Cornerstone Insurance went down by 5.77 per cent to 49 kobo.
On the gainers’ log, Consolidated Hallmark Insurance sat on top after its equity price increased by 9.62 per cent to 57 kobo, followed by Chams, which gained 9.52 per cent to trade at 23 kobo.
Courtville appreciated by 6.90 per cent to 31 kobo, Wema Bank grew by 3.95 per cent to 79 kobo, while NAHCO increased by 3.62 per cent to N3.15.
A look at the activity chart showed that the trading volume rose by 23.12 per cent to 191.0 million units from 155.1 million units, the trading value increased by 20.92 per cent to N2.4 billion from N2.0 billion, while the number of deals leapt by 19.13 per cent to 3,462 deals from 2,906 deals.
Eko Corporation was the most active stock with the sale of 40.0 million units worth N231.6 million, UBA traded 10.8 million units valued at N82.2 million, Transcorp sold 9.8 million units for N8.9 million, Sovereign Trust Insurance transacted 9.6 million units valued at N2.3 million, while Fidelity Bank traded 9.3 million units worth N22.2 million.
Like Our Facebook Page
Latest News on Business Post
- Nigerian Start-ups Jostle for #StartupSouth’s $30k Equity Pool September 21, 2021
- Government Must Make Nigeria Attractive to Doctors—NMA September 21, 2021
- Nigeria’s Oil, Gas Export Sales Rise 180.3% September 21, 2021
- Customs Receives Two Mobile Scanners for Greater Efficiency September 21, 2021
- Infibranches Raises $2m for Energy Distribution Across Nigeria September 21, 2021
- Ngige Confirms FG Borrows from World Bank, Others to Pay Salaries September 21, 2021
- Selloffs Resume at Nigerian Exchange as Investors Lose N19bn September 21, 2021
- Stocks at Nigeria’s OTC Market Open Week Bearish September 21, 2021
- Domestic Currency Depreciates at I&E, Cryptos Plunge September 21, 2021
- Oil Market Opens Weak on Stronger US Dollar September 21, 2021
Economy5 years ago
Kwara Disburses N1.7b For Projects
Feature/OPED2 years ago
Davos was Different this year
Technology9 months ago
How To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN
Travel/Tourism5 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
Economy5 years ago
How To Identify Fake Naira Notes
Banking3 years ago
Sort Codes of GTBank Branches in Nigeria
Economy4 years ago
FAAC: FG, States, LGs Share N655.18b in January
Economy6 months ago
MBA Forex Blames CBN for Inability to Return Investors’ Funds