By Modupe Gbadeyanka
The upward movement of Japaul Gold & Ventures Plc on at the Nigerian Stock Exchange (NSE) continued last week, with the value of its equities rising by 56.45 per cent to 97 kobo per unit.
The stock was one of the 50 equities that appreciated in the five-day trading week. In the preceding week, the market recorded 32 price risers.
Also in the week, BOC Gases appreciated by 32.18 per cent to close at N12.65 per share, NEM Insurance gained 28.49 per cent to close at N2.30 per share, Seplat gained 23.32 per cent to end at N496.10 per share, while Linkage Assurance gained 23.08 per cent to close at 64 kobo per share.
Business Post reports that during the week, a total of 21 equities depreciated in price, lower than 32 equities in the previous week, with Deap Capital topping the chart after it went down by 12.00 per cent to close at 22 kobo per share.
Royal Exchange lost 11.54 per cent to end at 23 kobo per share, Dangote Cement depreciated by 8.13 per cent to end at N255.00 per share, Associated Bus Company declined by 7.89 per cent to 35 kobo per share, while May & Baker declined by 6.84 per cent to close at N3.27 per share.
A look at the index movement chart showed that the All-Share Index and the market capitalisation of the exchange depreciated by 0.37 per cent to close the week at 40,120.22 points and N20.978 trillion respectively.
However, all other indices finished higher with the exception of NSE Premium, NSE Lotus II and NSE Industrial Goods, which depreciated by 2.99 per cent, 1.22 per cent and 2.29 per cent, while the NSE ASeM and NSE Growth indices closed flat.
On the activity chart, investors traded 3.4 billion shares worth N19.9 billion in 26,808 deals, higher than the 1.8 billion shares valued at N26.0 billion transacted a week earlier in 14,634 deals.
Shares in the consumer goods sector dominated the chart with 2.0 billion units worth N7.5 billion traded in 4,031 deals, contributing 59.70 per cent and 37.77 per cent to the total trading volume and value respectively.
In the week, market participants transacted 939.3 million equities in the financial services sector worth N7.8 billion in 14,020 deals, while 139.9 million stocks in the conglomerates industry worth N182.2 million were traded in 885 deals.
When analysed further, shares of Champion Breweries, Transcorp and Access Bank were the most active in the week, accounting for 2.1 billion units valued at N6.0 billion executed in 1,971 deals, contributing 63.18 per cent and 30.21 per cent to the total trading volume and value respectively.
NGX to Reward Innovation, Capital Market Compliance
By Aduragbemi Omiyale
The 2022 NGX Made of Africa Awards, slated for Tuesday, December 6, 2022, would be for rewarding innovation, commitment to sustainability and capital market compliance, the Divisional Head of Business Support Services at the Nigerian Exchange (NGX) Limited, Ms Irene Robinson-Ayanwale, has stated.
Speaking in an interview with Channels TV, she said the awards ceremony themed Innovation in Capital Markets: The Panacea for Exponential Growth was designed to recognise the outstanding performance of capital market stakeholders in multiple categories as the fiscal year draws to a close for many stakeholders.
According to her, the nomination and selection process was intensely analytical as a trove of data generated by the exchange was analysed by NGX Regulation Limited (NGX RegCo) and verified for accuracy by an independent auditor.
“As you can see, the process was made transparent and verifiable. We hope the Awards will encourage the companies to continue to maintain higher standards and ensure that their stakeholders hold them accountable to higher standards.
“We are banking that it’ll encourage more innovation, compliance, adherence to rules and regulations,” she told the news platform.
Ms Robinson-Ayanwale added that NGX would be focusing on driving more listings, executing more capacity-building programs across different capital market stakeholders group and driving forward its sustainability agenda in 2023.
The decision to hold the awards and celebrate exceptional performance underscores NGX’s commitment to the growth and sustainability of the Nigerian capital market. This further accentuates the position of the exchange as a leader and driver of excellence in the financial markets ecosystem.
BUA Group and CardinalStone Partners Limited are the headline sponsors for the ceremony. Other sponsors include United Bank for Africa Plc, Coronation Asset Management Limited, Zenith Bank Plc, Seplat Energy Plc, Access Holdings Plc, Notore Chemicals Plc, Transnational Corporation Plc, Bank of Industry and Central Securities and Clearing Systems (CSCS) Plc
Liquid Government Bonds Market Can Spur Economic Growth—SEC
By Aduragbemi Omiyale
The need for the development of a liquid government bonds market has been emphasised by the Securities and Exchange Commission (SEC).
The Director-General of SEC, Mr Lamido Yuguda, while speaking at the 2022 conference of the Capital Market Correspondents Association of Nigeria (CAMCAN), stated that this would have a positive effect on the economy.
Mr Yuguda, represented by the Executive Commissioner of Operations of the agency, Mr Dayo Obisan, disclosed that a liquid government bonds market implies that there is a sufficient offering of government bonds across a range of maturities, which is key to the construction of the benchmark yield curve (which is important for the establishment of the market-based risk-free interest rate used in equity pricing).
He further stated that the synergistic relationship between the government bonds and equity markets had been observed in several East Asian economies, which experienced a surge in private investment and equity market capitalisation following the establishment of a liquid debt securities market.
“At the same time, an increase in government expenditure funded by debt crowds out private investment, which in turn adversely affects aggregate expenditure and, consequently, economic growth with implications for the capital market.
“In addition, an underdeveloped capital market will affect institutional investors negatively, restraining the amount and maturity of funding available to the government locally,” the DG said at the programme tagged Nigeria’s Public Debt and the Capital Market.
At the event held in Lagos over the weekend, Mr Yuguda stated that as the apex regulator of the capital market, SEC is committed to creating an enabling and facilitative oversight and regulatory framework supportive of the deepening and development of the Nigerian capital market.
“As you are aware, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, launched and unveiled the revised Nigerian Capital Market Master Plan 2021-2025.
“The updated master plan underscores the commission’s commitment to deepening and repositioning the financial market as a key anchor of our economy.
“The Master Plan, which represents collective aspirations of the capital market community, is focused on driving initiatives geared towards growing and deepening the Market with the ultimate goal of accelerating the emergence of our Country into the top 20 global economies by the year 2025,” he stated.
He disclosed that the capital market is more resilient and is on a steady growth trajectory, adding that capital market correspondents have contributed to the development of the market and expressed delight at their partnership with the agency in this noble task of developing and deepening the capital market.
According to him, the reporters have taken on an increasingly important role of communicating to the public some of the commission’s initiatives aimed at developing the market, noting that SEC is committed to supporting efforts aimed at addressing financial literacy and empowerment gaps within society.
“There is no doubt in my mind that, the capital market presents a good platform for addressing many of Nigeria’s economic challenges.
“On our part as regulators, we shall continue to introduce new ideas and policies towards developing and regulating a capital market that is dynamic, fair, transparent and efficient to contribute to the nation’s economic development.
“We will also continue to fulfil its mandate of protecting investors and creating an enabling environment for market operators.
“Policymakers and practitioners alike are keen to understand the complex nexus between the public debt market and the Nigerian capital market,” he added.
In her remarks, the chairman of CAMCAN, Mrs Chinyere Joel-Nwokeoma, said that the annual workshop was part of the association’s contributions to the development and growth of the nation’s economy by bringing regulators, operators and company executives to discuss economic issues that affect the market in particular and the economy in general.
She said that the theme was picked because of concerns in different quarters concerning the nation’s rising total debt stock, which stood at N42.80 trillion as of June 2022.
Purple Real Estate N10bn IPO Attracts Investors Ahead of NGX Listing
By Dipo Olowookere
The Initial Public Offering (IPO) of Purple Real Estate Income Plc (PREIP) is already attracting investors ahead of its planned listing on the Nigerian Exchange (NGX) Limited.
Business Post gathered from a few stockbrokers, who asked not to be named, that the exercise is doing well, though a significant number of shares are yet to the purchased.
Purple Real Estate commenced the IPO last month and it hopes to conclude the exercise before Christmas.
The tech-enabled real estate firm intends to generate N10 billion from the IPO by selling 2 billion ordinary shares of 50 Kobo each at N5.
Intending investors are required to purchase a minimum of 4,000 ordinary shares and multiples of 1,000 ordinary shares thereafter.
After the IPO, which started on November 21, 2022, and will end on December 23, 2022, the stocks will be listed on the exchange.
According to the chief executive of the organisation, Mr Laide Agboola, investing in the company will give subscribers “blended yields” as the firm intends to expand its real estate footprint delivering similar investment-grade assets, including Purple Lekki, an all-inclusive mixed-use centre building on the learnings from its flagship asset.
The principal activities of Purple Real Estate include the purchase, lease, development, and management of properties to generate a sale and rental income as well as income from other services, including advertising and facilities management.
The firm is evolving into a tech-driven real estate company deploying proptech solutions such as Purpleshop and Fractions to eliminate the barriers to world-class retail and real estate ownership.
Its subsidiaries are Maryland Mall Limited, Purple Proptech Limited, Lekki Retailtainment Limited, Purple Asset Managers Limited, Purple Urban Limited and Cible Media Limited.
PREIP, which is on the path to becoming the first approved Real Estate Investment Company (REICO) in Nigeria, grew its revenue by 121 per cent to N1.8 billion in 2021, while the pre-tax profit was N1.5 billion, with total assets at N26.4 billion.
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