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McNichols Shares Record 43.14% Growth in Stormy Week

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McNichols

By Dipo Olowookere

Despite a stormy week on the floor of the Nigerian Stock Exchange (NSE) last week, shares of McNichols Plc navigated the challenges and posted a growth.

During the 5-day trading week, the equity price of the homegrown fast-moving consumer brand food and beverage company rose by 43.14 per cent to settle at 73 kobo per unit.

The firm led the gainers’ chart, which had 22 members, lower than 41 it had the preceding the week, with Jaiz Bank in the second position after growing by 10.77 per cent to finish at 72 per share.

Eterna gained 10.58 per cent to N5.75 per unit, NCR Nigeria appreciated by 9.94 per cent to close at N3.43 per unit, while Multiverse Mining grew by 9.09 per cent to end at 24 kobo per share.

Business Post reports that the market bled by 1.66 per cent last week as a result of the selloff in the 60 equities led by Linkage Assurance, which lost 33.33 per cent to settle at 60 kobo per unit.

Japaul fell by 17.58 per cent to sell for 75 kobo per share, AIICO went down by 13.57 per cent to trade at N1.21 per unit, Julius Berger dropped 13.02 per cent to settle at N19.70 per share, while Regency Assurance declined by 11.76 per cent to 30 per unit.

In the week, investors traded 2.8 billion shares worth N29.7 billion in 31,380 deals, higher than the 2.6 billion shares worth N27.9 billion transacted the preceding week in 31,466 deals.

The financial services industry led the activity chart by volume with 1.9 billion shares valued at N20.3 billion traded in 15,160 deals, contributing 69.54 per cent and 68.53 per cent to the total equity turnover volume and value respectively.

The conglomerates sector followed with 264.8 million shares worth N523.5 million traded in 1,528 deals, while the third place was the consumer goods industry, with a turnover of 197.4 million shares worth N3.4 billion in 6,240 deals.

The most active stocks were Union Bank, First Bank and Transcorp, accounting for 859.9 million shares worth N4.3 billion in 2,459 deals, contributing 31.08 per cent and 14.32 per cent to the total equity turnover volume and value respectively.

Also, the All-Share Index (ASI) and market capitalisation depreciated by 1.66 per cent to close the week at 41,709.09 points and N21.819 trillion respectively.

Similarly, all other indices finished lower with the exception of NSE Growth index which appreciated by 3.26 per cent, while the NSE ASeMIndex closed flat.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Economy

Weekly Forex Turnover at I&E Skyrockets to $1.1bn

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Weekly Forex Turnover

By Sodeinde Temidayo David

In one week, the total value of transactions recorded at the Investors and Exporters (I&E) window of the foreign exchange (forex) market in Nigeria rose to $1.1 billion.

Data obtained by Business Post from the FMDQ Securities Exchange showed that the weekly forex turnover at the I&E was 18.73 per cent or $183.56 million higher than the $980.1 million recorded a week earlier.

The FMDQ exchange, which tracks trades on the Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) platform, revealed that the significant spike in the value of the transactions was due to the high FX demand last Friday, a day after the Naira depreciated against the United States Dollar to an all-time low of N422.07/$1, triggering panic at the FX window.

At the first trading session of last week, the turnover was $184.3 million and the next day, it dropped to $153.4 million before skyrocketing to $306.8 million on Wednesday and the next day, the turnover went down to $141.9 million before jumping to $337.3 million due to decision of investors to quickly pull out their funds as a result of comments by Vice President Yemi Osinbajo interpreted to mean he was in full support of the devaluation of the local currency so as to allow it get its true market value.

As for the performance of the Naira against the US dollar at the investors’ window in the week, it depreciated by 0.2 per cent or 77 kobo week-on-week to N415.07/$1 from N414.30/$1 in the preceding week.

The weakening of the local currency at the FX market window must have been caused by the rise in the demand for forex experienced at the mid-week and the last trading session as well as the shortage supply of forex to traders to meet the demands of their customers.

It was gathered that last Monday, the domestic currency traded at N414.40/$1 at the I&E segment and appreciated to N414.30/$1 on Tuesday.

At the midweek session, it fell to N415.10/$1 and the next day, it dropped to an all-time low of N422.07/$1 before bouncing back to close at N415.07/$1 last Friday.

Also at the interbank segment of the market, the Nigerian currency lost 0.02 per cent or 10 kobo week-on-week against the American Dollar to trade at N410.91/$1 versus the previous week’s N410.81/$1.

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Economy

CBN Adds New Feature to Yet-to-be-Launched eNaira

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eNaira

By Sodeinde Temidayo David

The Central Bank of Nigeria (CBN) has announced that the yet-to-be-launched eNaira will have a new add-on that will enable users to complete transactions with mobile phones without Internet capability.

The apex bank, in a document titled Design paper for the eNaira, disclosed that maximising the value and use cases of the nation’s digital currency would depend largely on devices with Internet capabilities.

A few months ago, the CBN said it would launch eNaira on October 1, 2021, but it later suspended this without giving a new date for the unveiling.

This digital currency, which is expected to promote the cashless policy, is expected to become operational after the central bank stopped the trading of unregulated digital currencies in the country like Bitcoin, Ethereum and others.

The eNaira is to be introduced into the country under the Central Bank Digital Currency (CBDC), an electronic record or digital token of the local currency and is to be issued and regulated by the monetary authority.

Given the reason, the CBN noted that, “The eNaira thus risks further alienating sections of the population who are uneducated, lack exposure and access to internet services or digital devices.”

The apex bank is adding the new feature to the eNaira following a recent publication that estimated that 35 per cent or about 37.1 million of the nation’s adult population was illiterate.

To face the risk of losing adoption of the digital currency to this segment of the population, the CBN added that the bank has factored in the need for inclusiveness as part of the core design principle of the eNaira.

According to the central bank, this principle has enabled the bank to focus on simplicity and ease on the use of the e-Naira, to ensure that Nigerians without Internet-enabled phones can access the digital service.

The CBN said the eNaira would complement existing payment options available via the mobile banking apps, Point of Sale (POS) terminals, Unstructured Supplementary Service Data (USSD), quick response code and Internet banking, among other channels.

GSMA, a global industry organisation that represents the interests of mobile network operators, had said in a recent report that 19 per cent of people living in Nigeria do not have access to mobile broadband coverage.

In its design paper, the central bank, in a bid to ensure inclusive access while also ensuring the integrity of the financial system, has chosen the account-based CBDC model for the eNaira.

The CBN said, “The account-based CBDC model at its core mirrors the progress made on the National Financial Inclusion Strategy which enables access to financial services by leveraging last-mile networks to identify users and to provide banking services through channels such as PoS and USSD.

“With the account-based model, the CBN seeks to enable access by leveraging the existing identity infrastructure in Nigeria such as the BVN, NIN, TIN, etc., to uniquely identify individuals and corporate entities.

“Specifically, identity frameworks such as the NIN will enable access for the financially excluded as they can be uniquely identified, thereby enabling the provision of financial services. These identity systems will help ensure a robust KYC framework positioned to enable access for all Nigerians.”

The CBN also added that this would help improve cross-border payments and address issues of dollarisation of the economy, as it could be recalled that Visa, a payments company, recently noted that the ease of operating CBDCs would determine the success of digital currencies.

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Economy

Nigerian Exporters Fail Due to Poor Training, Exposure—NEPC

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Nigerian exporters

By Ashemiriogwa Emmanuel

The Nigerian Export Promotion Council (NEPC) has revealed that many Nigerian exporters, including women entrepreneurs, fail in the international market as a result of poor training and exposure to the business.

According to the federal agency, it is necessary for anyone who wants to venture and succeed in the business to undergo adequate training in order to grasp the scope of the competitive venture.

The Executive Director/CEO of the NEPC, Mr Olusegun Awolowo, disclosed this at a capacity building workshop organized for women-owned businesses in the non-oil export value chain in Akure, Ondo State on Friday, October 15

Speaking at the event, which was organised by the Export Development and Incentive Department of the NEPC, Mr Awolowo said that, “Lack of export market training is one of the major reasons Nigerian exporters fail in the international market.

“Exporters need to learn the specific requirements of the target markets as well as the certification needed for the product to be exported.”

Represented by the Head/Trade Promotion Advisor at NEPC Akure, Mr Macpherson Fred-Ileogben, the agency’s head noted that it was for this reason that the council decided to organise the workshop.

The training featured coaching and networking sessions to give women entrepreneurs the opportunity to improve their knowledge of competitiveness in the export market.

He cited that the involvement of women in trade will not only promote gender equality but also increase the growth potential of the nation.

As a result of the gradual recovery from the global pandemic, players in the non-oil exporting business into the international market have been tasked to think outside the box to ensure continuity.

To realize this, it would be recalled that the agency also organized a sensitisation workshop in Lagos in September 2021 which was themed Earn Dollars by Selling on Amazon to help stakeholders see the opportunities in leveraging e-commerce.

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