Economy

How Stock Market Investors ‘Pocketed’ N916bn During Lockdown—Analysis

Published

6 years ago

08/05/2020

Dipo Olowookere

By Dipo Olowookere

**As Market Recorded 15 Gains, 8 Losses During Period

When on Sunday, March 29, 2020, President Muhammadu Buhari announced in a nationwide broadcast that activities and offices in Abuja, Lagos and Ogun State would be totally shut down from the next day except for those rendering essential services, many thought the stock market would be badly affected.

The outcome of the Nigerian Stock Exchange (NSE) on Monday, March 30, 2020, confirmed the fears of many about this as on the first day of the lockdown, the market went down by 2.43 percent.

Though the trading floor of the bourse remained closed, the management of the exchange activated its business continuity plan to allow stockbrokers and investors trade remotely using electronic devices.

The next day, the market fell by 0.14 percent and prices were trading low, and the next day, which was April Fool’s Day, another loss was recorded, this time, by 0.94 percent.

When the next day the market appreciated by 0.10 percent, some analysts said it would be short-lived and they guessed right because at the next trading session, the market returned to its familiar territory, losing 0.13 percent on the last trading session of that week.

When activities resumed the next Monday, investors were greeted with a 2.02 percent loss and for some traders, they quickly positioned themselves by buying equities at cheap prices with the hopes of selling high when things normalise probably after the lockdown or when vaccine for the COVID-19, which caused the initial stay-at-home order, is found by scientists.

But Business Post observed that for the next seven consecutive sessions, the market was acting like it was on steroids, closing in the green territory until it was halted on April 20 and 21, 2020.

On April 22, it closed bullish, but slipped the next day by 1.36 percent, before staging a comeback from April 23 till the last day of the lockdown on May 4, 2020.

Many have wondered why the stock market remained bullish despite the economy struggling for life as a result of the coronavirus pandemic.

Few days ago, Business Post attributed the sudden rise in the market to foreign portfolio investors choosing to reinvest their funds in the local market when they could not take away their trapped Dollars out of the country because of the stoppage of forex sales to dealers at the Investors and Exporters segment of the market.

From Business Post’s analysis, there were a total of 23 trading sessions from when the lockdown became effective in Nigeria till it was lifted by President Buhari.

It was observed that of the 23 trading days, the market recorded 18 gains and eight losses. Putting this into percentage, bulls dominated by 76 percent, while the bears managed only 24 percent.

During the 23 trading days, the All-Share Index (ASI) appreciated by 1,759.07 points to 23,089.86 points from 21,330.79 points, while the market capitalisation increased by N916 billion to N12.033 trillion from N11.117 trillion.

Since the movement cessation was eased, the market has remained bullish, closing higher at the close of transactions on Thursday.

However, as at the time of filing this report, the market was down by 1.20 percent.

Economy

PenCom Extends Deadline for Pension Recapitalisation to June 2027

Published

8 hours ago

19/12/2025

Aduragbemi Omiyale

By Aduragbemi Omiyale

The deadline for the recapitalisation of the Nigerian pension industry has been extended by six months to June 2027 from December 2026.

This extension was approved by the National Pension Commission (PenCom), the agency, which regulates the sector in the country.

Addressing newsmen on Thursday in Lagos, the Director-General of PenCom, Ms Omolola Oloworaran, explained that the shift in deadline was to give operators more time to boost the capital base, dismissing speculations that the exercise had been suspended.

“The recapitalisation has not been suspended. We have communicated the requirements to the Pension Fund Administrators (PFAs), and we expect every operator to be compliant by June 2027. Anyone who is not compliant by then will lose their licence,” Ms Oloworaran told journalists.

She added that, “From a regulatory standpoint, our major challenge is ensuring compliance. We are working with ICPC, labour and the TUC to ensure employers remit pension contributions for their employees.”

The DG noted that engagements with industry operators indicated broad acceptance of the policy, with many PFAs already taking steps to raise additional capital or explore mergers and acquisitions.

“You may see some mergers and acquisitions in the industry, but what is clear is that the recapitalisation exercise is on track and the industry agrees with us,” she stated.

PenCom wants the PFAs to increase their capital base and has created three categories, with the first consists operators with Assets Under Management of N500 billion and above. They are expected to have a minimum capital of N20 billion and one per cent of AUM above N500 billion.

The second category has PFAs with AUM below N500 billion, which must have at least N20 billion as capital base.

The last segment comprises special-purpose PFAs such as NPF Pensions Limited, whose minimum capital was pegged at N30 billion, and the Nigerian University Pension Management Company Limited, whose minimum capital was fixed at N20 billion.

Economy

Three Securities Sink NASD Exchange by 0.68%

Published

8 hours ago

19/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Three securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.68 per cent on Thursday, December 18.

According to data, Central Securities Clearing System (CSCS) Plc led the losers’ group after it slipped by N2.87 to N36.78 per share from N39.65 per share, Golden Capital Plc depreciated by 77 Kobo to end at N6.98 per unit versus the previous day’s N7.77 per unit, and FrieslandCampina Wamco Nigeria Plc dropped 19 Kobo to sell at N60.00 per share versus Wednesday’s closing price of N60.19 per share.

At the close of business, the market capitalisation lost N16.81 billion to finish at N2.147 billion compared with the preceding session’s N2.164 trillion, and the NASD Unlisted Security Index (NSI) declined by 24.76 points to 3,589.88 points from 3,614.64 points.

Yesterday, the volume of securities bought and sold increased by 49.3 per cent to 30.5 million units from 20.4 million units, the value of securities surged by 211.8 per cent to N225.1 million from N72.2 million, and the number of deals jumped by 33.3 per cent to 28 deals from 21 deals.

Infrastructure Credit Guarantee Company (InfraCredit) Plc remained the most traded stock by value with a year-to-date sale of 5.8 billion units valued at N16.4 billion, followed by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.

Similarly, InfraCredit Plc ended as the most traded stock by volume on a year-to-date basis with 5.8 billion units traded for N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.7 million, and Impresit Bakolori Plc with 536.9 million units exchanged for N524.9 million.

Economy

NGX Index Crosses 150,000 points as Market Cap Nears N96trn

Published

9 hours ago

19/12/2025

Dipo Olowookere

By Dipo Olowookere

The All-Share Index (ASI) of the Nigerian Exchange (NGX) Limited has again crossed the 150,000-point threshold on Thursday as the demand of for local intensifies.

The market was up by 0.35 per cent during the session, with the NGX index inching higher by 520.23 points to 150,363.05 points from the previous day’s 149,842.82 points and the market capitalisation climbed by N332 billion to N95.857 trillion from N95.525 trillion.

During the session, the consumer goods index grew by 1.23 per cent, the banking counter expanded by 0.56 per cent, and the energy sector appreciated by 0.05 per cent.

However, the insurance industry went down by 0.23 per cent, while the commodity and the industrial goods sectors closed flat.

Nestle Nigeria gained 10.00 per cent to trade at N1,958.00, Guinness Nigeria improved by 9.98 per cent to N289.70, Aluminium Extrusion Industries rose by 9.76 per cent to N11.25, DAAR Communications soared by 9.20 per cent to 95 Kobo, and Mecure Industries surged by 9.13 per cent to N55.00.

On the flip side, Stanbic IBTC lost 9.33 per cent to settle at N95.20, Lasaco Assurance went down by 9.09 per cent to N2.50, Africa Prudential slipped by 8.82 per cent, Austin Laz depreciated by 8.82 per cent to N12.40, and Sterling Holdings crashed by 6.12 per cent to N6.90.

There were 35 price gainers and 26 price losers yesterday, implying a positive market breadth index and bullish investor sentiment.

During the session, a total of 839.8 million equities valued at N32.8 billion exchanged hands in 23,211 deals compared with the 5.9 billion equities worth N216.2 billion traded in 25,205 deals a day earlier, indicating a decline in the trading volume, value, and number of deals by 85.77 per cent, 84.83 per cent, and 7.91 per cent apiece.

The day’s busiest stock was First Holdco with a turnover of 385.6 million units sold for N15.6 billion, FCMB traded 76.0 million units worth N805.3 million, Lasaco Assurance exchanged 43.6 million units valued at N111.8 million, Access Holdings transacted 29.6 million units worth N616.8 million, and Chams sold 24.8 million units valued at N75.4 million.