Economy
NASD Generates N139m as Transaction Fees in 2019
By Adedapo Adesanya
The NASD Plc said it generated a total of N139 million as transaction fees in the 2019 financial year, lower than the N169 million raked in 2018.
This information was contained in the company’s annual report and financial statements for the period ended December 31, 2019.
An analysis of the company’s results by Business Post showed that the macroeconomic challenges had a huge effect on NASD in the accounting year.
This resulted in the 100.4 percent decline in the profit after tax of the coy for the 2019 financial year to N45.01 million from N90.4 million in the prior year.
In addition, NASD Plc further disclosed that its profit before tax went down by 41.9 percent to N36.1 million from the N62 million of the previous year.
Also, during the period under review, the exchange said the total market turnover dropped by 65.8 percent to N10.5 billion from N30.7 billion in the previous year, while the revenue generated by the firm went down by 3 percent to N162 million from N167 million earned in 2018.
It explained that the decrease in market activity experienced in 2019 was a sharp change in trend from what was witnessed in 2018 and was a direct result of a downturn in market activity as well as a reduction in the number of new securities admitted to the market.
The continued decline in the country’s risk profile coupled with the sustained dominance of the fixed income sector of the market also contributed to investor apathy, the coy said.
Despite the problems, the company recorded a 13.5 percent increase in investment income, which closed at N65.5 million compared with the N57.7 million recorded in 2018.
The first over-the-counter bourse in the country said it generated listing fees of N2.62 million, while total expenses amounted to N196.7 million compared to the N163 million recorded in the corresponding period of 2018.
The company said it recorded an operating loss of N30.6 million compared to an operating profit of N4.3 million recorded in the year 2018.
Total assets rose during the period under review by 7 percent to N660.8 million from N617.9 million, while total liabilities dropped 9.1 percent to 19.9 million from N21.9 million in 2018.
In terms of overall market activity, the overall NASD Securities Index (NSI) depreciated by 5.49 percent between January 2019 and December 2019, while the market capitalisation declined by 2.6 percent from N514.77 billion in January 2019 to N501.14 billion as of December 31, 2019.
Speaking on the outlook for the market, Chairman of NASD Plc, Mr Olutola Mobolurin, said, “The early passage of the 2020 budget promised to create a more enabling environment for economic growth.
“The coronavirus pandemic, however, has created a total disruption of global trade, capital flows and universal business practices.
“As the global business becomes less physically driven and more digital–human remote, we see an opportunity for us to exploit our nimbleness and unique position as an over-the-counter securities exchange.
“Fortuitously, in 2019 NASD had reassessed the company’s strategy and redefined its focus to facilitate it, becoming the hub of first call for capital formation in West Africa.
“We are expanding our product offerings and services to cater to the new business and capital raising environment. We have embarked on a material technology overhaul that will improve our scope, efficiency and effectiveness as an over-the-counter market.
“We shall continue to deliver our objectives to all stakeholders in NASD Plc,” he said.
The 7th Annual General Meeting (AGM) of NASD PLC will hold on Thursday, June 25 at NASD Plc, 9th Floor, UBA House, 57 Marina, Lagos at 11.00am.
Meanwhile, the board of directors of the company declared no dividend payment to shareholders for the year.
By Adedapo Adesanya
Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.
Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.
This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.
Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.
Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.
InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Dipo Olowookere
The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.
This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.
UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.
On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.
Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.
Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.
A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.
This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.
For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.
By Adedapo Adesanya
The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.
At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.
It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.
Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.
Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.
Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.
“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.
Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.
Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.
If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.
Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
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