Economy
Investors Raise Eyebrows as FTN Cocoa, Japaul Gain Over 40% in Four Days
By Dipo Olowookere
Last week, which had only four trading sessions, shares of FTN Cocoa Processors and Japual Gold & Ventures Plc appreciated by over 40 per cent on the floor of the Nigerian Stock Exchange (NSE).
In the previous week, the companies’ stocks grew by double-digits at the market, causing some investors to begin to probe the rationale behind the sudden rise in the equities of the firms.
Business Post reports that a few days ago, the NSE lifted the suspension placed on FTN Cocoa after it filed its outstanding financial statements, while Japual changed its trading symbol to a new one after its change of name.
At the market last week, shares of FTN Cocoa rose by 43.55 per cent to settle at 89 kobo per unit, while equities of Japaul improved by 41.18 per cent to trade at 48 kobo per share.
They were among the 35 equities that appreciated in price during the week, though lower than the 53 equities in the previous week.
In the week, BOC Gases grew by 20.83 per cent to sell at N8.70 per share, Dangote Cement appreciated by 16.95 per cent to close at N245.00 per unit, while Oando grew by 15.92 per cent to settle at N3.64 per share.
Conversely, a total of 18 stocks depreciated in price, higher than 17 equities in the previous week and they were led by Trans-Nationwide Express, which fell by 9.20 per cent to close at 79 kobo per share.
John Holt decreased by 8.93 per cent to 51 kobo per unit, Champion Breweries lost 7.87 per cent to close at 82 kobo per share, International Breweries dropped 5.90 per cent to sell at N5.90 per unit, while Ardova depreciated by 5.24 per cent to finish at N13.55 per share.
During the week, a total of 108 equities remained unchanged, higher than 91 recorded in the previous week.
A look at the key performance indicators of the market showed that the All-Share Index and market capitalisation appreciated by 5.42 per cent to close the week at 38,800.01 points and N20.279 trillion respectively.
Similarly, all other indices finished higher with the exception of the banking, AFR Bank Value, AFR Div Yield and MERI Growth which depreciated by 1.03 per cent, 0.95 per cent, 0.31 per cent and 0.80 per cent, while the ASeM and Growth indices closed flat.
On the activity chart, by the time market closed on Thursday, December 24, 2020, for the Christmas break, a total of 2.8 billion shares worth N40.3 billion had exchanged hands in 17,459 deals in contrast to the 1.9 billion shares valued at N17.7 billion traded in 20,660 deals a week earlier.
The financial services sector led the chart with 2.1 billion shares valued at N19.5 billion traded in 8,327 deals, contributing 76.40 per cent and 48.26 per cent to the total equity turnover volume and value respectively.
The consumer goods industry followed with 182.1 million shares worth N4.4 billion in 2,485 deals, while the industrial goods counter recorded a turnover of 145.8 million shares worth N10.6 billion in 2,587 deals.
Access Bank, Zenith Bank and AXA Mansard Insurance were the most active stocks accounting for 1.4 billion shares worth N13.9 billion in 2,972 deals, contributing 52.23 per cent and 34.44 per cent to the total equity turnover volume and value respectively.
By Adedapo Adesanya
The Naira further appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, July 16, by 65 Kobo or 0.04 per cent to sell for N1,381.53/$1, in contrast to Wednesday’s closing value of N1,382.18/$1.
This was buoyed by improved FX liquidity to absorb the high demand for Dollars during the trading session.
However, the local currency depreciated against the Pound Sterling in the official market yesterday by N9.48 to close at N1,866.17/£1 versus the preceding day’s N1,856.69/£1, and lost N2.99 against the Euro to quote at N1,582.68/€1 compared with the midweek rate of N1,576.69/€1.
At the parallel market, the Nigerian currency maintained stability against its United States counterpart at N1,405/$1, and at the GTBank FX desk, it remained unchanged at N1,389/$1.
On Thursday, data from the Central Bank of Nigeria (CBN) showed a surge in interbank FX turnover and deal count. Interbank FX activities at the NFEM window increased sharply by 69 per cent to $205.366 million from $121.727 million reported the previous day.
Nigeria’s gross external reserves continue to rise, supported by steady foreign exchange inflows from hydrocarbon receipts, remittances and foreign portfolio investments, boosting market confidence. It settled at $51.893 billion from $51.867 billion the previous day.
The apex bank has also launched a new digital platform that will track every foreign exchange transaction involving Bureau De Change (BDC) operators, marking a major step in its efforts to improve transparency and strengthen oversight of Nigeria’s retail forex market.
In an operational guidance issued on July 15 to authorised dealer banks and licensed BDCs, the CBN introduced the FX BDC Purchase Tracker (FXBT), a centralised electronic portal that will monitor foreign exchange purchases by BDCs from the point of request through approval, settlement and eventual sale.
As for the crypto market, prices were down as the markets weighed fresh US airstrikes on Iran that boosted risk sentiment, with Ethereum (ETH) down by 4.7 per cent to $1,829.37.
Solana (SOL) decreased by 3.6 per cent to $77.49, Dogecoin (DOGE) depreciated by 3.1 per cent to $0.0718, Cardano (ADA) also crashed by 3.1 per cent to $0.1588, Bitcoin (BTC) slumped by 2.9 per cent to $62,820.21, Ripple (XRP) dipped by 2.6 per cent to $1.08, Binance Coin (BNB) fell by 2.3 per cent to $569.02, and TRON (TRX) shrank by 0.8 per cent to $0.3219, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
By Aduragbemi Omiyale
In a bid to help investors recover about N270 billion in unclaimed dividends in the capital market, a nationwide enlightenment campaign has been launched by the Securities and Exchange Commission (SEC).
This initiative involves town hall meetings that would go around the country to sensitise Nigerians on the need to claim these fallow funds.
The Director General of SEC, Mr Emomotimi Agama, speaking at a town hall meeting in Lagos, said the regulator is not happy that investors, who worked hard to purchase shares in the stock market, have not claimed their profits for many years, making unclaimed dividends pile up.
“The commission considers this situation unacceptable. Funds belonging to investors should ultimately find their way back to their rightful owners,” the SEC chief, represented at the event by the Director of Registration and Exchanges, Market Infrastructure Department, Ms Hafsat Rufai, stated.
He said during this campaign Nigerians would be informed of the unclaimed monies, the role of the National Investor Protection Fund (NIPF), and the procedures for verifying and recovering legitimate claims, stressing that SEC is committed to ensuring that investors’ funds are returned to their rightful owners.
The DG stated that unclaimed monies administered by the NIPF include return funds from public offers, scheme consideration arising from mergers, acquisitions and corporate restructuring transactions, as well as other capital market-related funds that have remained dormant.
He disclosed that the town hall meetings would be held in the six geopolitical zones and the Federal Capital Territory.
In addition, electronic and social media platforms would be used to broaden public awareness on this issue, with efforts to be made to address the transmission of securities following the death of an investor, noting that many families were either unaware that their deceased relatives owned shares or lacked knowledge of the legal and administrative procedures required to transfer such investments to rightful beneficiaries.
“As a result, valuable investments and returns on investments sometimes remain inaccessible for many years, thereby denying beneficiaries the financial benefits intended for them,” he said, urging investors to maintain proper records of their investments and encouraging families to take proactive steps to preserve inherited wealth.
By Dipo Olowookere
The decision of investors to book profit after the previous session’s gains pulled back Customs Street by 0.09 per cent on Thursday.
The selling pressure was mainly on BUA Cement, which put the Nigerian Exchange (NGX) Limited off-balance during the session.
Analysis of the trading data showed that the industrial goods sector was the sole decliner, losing 2.85 per cent, as a result of the poor performance of BUA Cement at the market yesterday.
The other key sectors of the bourse were bullish, with the banking space up by 2.87 per cent. The consumer goods index appreciated by 0.30 per cent, the insurance counter improved by 0.16 per cent, and the energy segment rose by 0.08 per cent.
At the close of business, the All-Share Index (ASI) went down by 221.14 points to 242,145.61 points from 242,366.75 points, and the market capitalisation decreased by N32 billion to N156.207 trillion from N156.239 trillion.
Eunisell crashed by 10.00 per cent to N189.00, BUA Cement lost 9.99 per cent to quote at N275.60, CAP declined by 9.61 per cent to N142.45, Royal Exchange slipped by 9.55 per cent to N1.42, and Guinea Insurance tumbled by 5.38 per cent to 88 Kobo.
Conversely, First Holdco soared by 9.96 per cent to N87.25, McNichols gained 8.00 per cent to trade at N5.40, UBA appreciated by 7.93 per cent to N44.25, Veritas Kapital jumped by 6.85 per cent to N1.56, and Jaiz Bank chalked up 4.07 per cent to settle at N8.95.
It was observed that the market breadth index was positive after the exchange closed the session with 22 price losers and 27 price gainers, representing strong investor sentiment.
A total of 498.5 million shares valued at N34.9 billion were traded in 39,484 deals on Thursday, in contrast to the 476.3 million shares worth N29.6 billion transacted in 40,992 deals on Wednesday. This indicated that the trading volume grew by 4.66 per cent, the trading value increased by 17.91 per cent, and the number of deals depreciated by 3.68 per cent.
Japaul ended the day as the busiest equity after trading 77.7 million units for N231.5 million, Access Holdings sold 41.2 million units valued at N1.0 billion, First Holdco exchanged 38.8 million units worth N3.4 billion, UBA transacted 31.5 million units for N1.4 billion, and Fidelity Bank traded 23.8 million units worth N495.0 million.
