Economy
Mutual Funds Gain N3b in Nine Months of 2016
By Quantitative Financial Analytics
It is no longer news that the Nigerian stock market has been choppy in 2016 with investors scrambling to uncover hidden opportunities. Of the 10 major market indices in Nigeria, four have recorded positive returns YTD as at the end of Q3.
The NSE all-share index boasts of a negative 1.7 percent return so far this year. Compared to similar period in 2015, this performance is actually an improvement.
By the end of Q3 2015, all the major indices, but two, were in the red with the all-share index at -9.92 percent. There seems to be an asset class that has not done so badly in the first nine months of 2016. That asset class is Nigerian Mutual Funds.
Going by data released by the Security and Exchange Commission and analysed by Quantitative Financial Analytics, mutual funds in Nigeria made an estimated N3 billion profit on a YTD basis by the end of Q3 2016.
Fund Level Analysis
Surprisingly, the volatility that characterized the equity market paid off as equity based funds made an estimated N1.425 billion profit. Fund by fund analysis indicates that all but the Paramount Equity Fund generated profits of varying amounts. Bond funds also held their own with an estimated N844 million gain with all but UBA Bond Fund and FBN Fixed Income Fund making profits of some sort. Three out of the 10 funds in the balanced fund category made losses but the category generated a total estimated gain of N209k.
The highest gain came from Stanbic IBTC Equity Fund with N642 million, followed by Stanbic IBTC Absolute Fund with N451 million, New Gold ETF took the third place with N293 million. The greatest losses were recorded by UBA Bond Fund and UBA Balanced Fund.
Fund Manager Level Analysis
Fund manager level analysis indicates that Stanbic IBTC Asset Management topped the chart with N1.57 billion gain. Of all the 11 funds being managed by Stanbic IBTC, only the Stanbic IBTC 30 ETF Fund ended Q3 with a loss. Asset & Resources Management Ltd (ARM) came second with N415 million gain while New Gold managers and FBN Capital Asset Mangers took the third and fourth positions with N292 million and N291 Million respectively. All the 4 funds being managed by ARM Ltd made gains while five of the six funds overseen by FBN Capital Asset Managers also recorded gains by the end of Q3. 2 out of the 3 funds being managed by FSDH Asset Management had positive returns while Lotus Capital Ltd recorded one positive and one negative return. On the other hand, only one out of the 4 funds being managed by UBA Asset Management Company made a gain.
Among the Fund Managers with perfect/clean records are Afrinvest Asset management whose two funds made gains, Alternative Capital Ltd.’s ACAP Canary Growth Fund recorded N115 million gain. Others are ARM Ltd with all 4 funds recording profits, AXA Mansard Investment’s two funds also ended the quarter with a YTD gain. First City Asset Management’s Legacy Short Maturity Fund and Legacy Equity Fund generated a total estimated N67 million gain while Investment-One also had a clean slate as well as Meristem Wealth Management Ltd. SFS Capital and New Gold Managers are also in the league. Sterling Capital Ltd also joined the league as all the 3 funds under its management generated gains.
By Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc kept the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.04 per cent on Friday, July 16.
The securities depository company added N2.50 to its share price to settle at N95.14 per unit from the preceding session’s N92.64 per unit.
However, FrieslandCampina Wamco Nigeria Plc slid during the session by N5.85 to N141.81 per share from N147.66 per share.
But when the bourse closed for the day, the market capitalisation increased by N1.08 billion to N2.593 trillion from N2.592 trillion, while the NASD Security Index (NSI) appreciated by 1.80 points to 4,320.67 points from 4,318.87 points.
During the session, the value of securities slid by 38.9 per cent to N63.5 million from N104.1 million, the volume of securities went down by 34.5 per cent to 1.2 million units from 4.8 million units, and the number of deals declined by 15.4 per cent to 33 deals from 39 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 75.4 million units traded for N5.3 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
