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
The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the south territory with a decline of 0.56 per cent on Wednesday, April 2.
This brought down the market capitalisation by N13 billion to N2.417 trillion from N2.430 trillion, and downed the NASD Unlisted Security Index (NSI) by 22.57 points to 4,062.87 points from the previous session’s 4,062.87 points.
It was observed that the NASD exchange ended with three price gainers and three price losers during the trading day.
MRS Oil Plc depreciated by N19.00 to close at N171.00 per unit compared with the previous price of N190.00 per unit, NASD Plc lost N4.14 to trade at N37.36 per share compared with Wednesday’s N41.50 per share, and Central Securities Clearing System (CSCS) Plc gave up N2.00 to sell at N78.00 per unit versus N80.00 per unit.
On the flip side, FrieslandCampina Wamco Nigeria Plc appreciated by 19 Kobo to N93.00 per share from N92.81 per share, Food Concepts Plc expanded by 15 Kobo to N2.87 per unit from N2.72 per unit, and Great Nigeria Insurance (GNI) Plc improved by 2 Kobo to 52 Kobo per share from 50 Kobo per share.
Yesterday, the volume of securities dipped by 91.8 per cent to 260.2 million units from 3.2 billion units, the value of securities went down by 98.1 per cent to N154.2 million from N8.3 billion, while the number of deals soared by 53.3 per cent to 46 deals from 30 deals.
GNI Plc was the most active stock by value on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by CSCS Plc with 56.9 million units valued at N3.9 billion, and Okitipupa Plc with 27.5 million units traded for N1.8 billion.
The most traded stock by volume on a year-to-date basis was also GNI Plc with 3.4 billion units sold for N8.2 billion, trailed by Resourcery Plc with 1.1 billion units exchanged for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units transacted for N1.2 billion.
By Adedapo Adesanya
The Naira dropped N2.09 or 0.15 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, April 2, to trade at N1,380.79/$1 compared with Wednesday’s rate of N1,378.70/$1.
However, it appreciated against the Pound Sterling in the official market by N2.77 to quote at N1,824.86/£1 versus the N1,836.57/£1 it was traded at midweek, and improved its value against the Euro by N10.54 to N1,591.92/€1 from N1,602.46/€1.
Yesterday was the last trading session of the week for the local currency in the spot market, as the market will be closed on Friday and Monday for the Easter Holiday.
At the black market, the Nigerian Naira maintained stability against the greenback yesterday at N1,405/$1, but gained N8 at the GTBank FX counter to settle at N1,388/$1, in contrast to the previous session’s N1,396/$1.
Pressure eased on the domestic currency as strong policy indicators have helped calm the majority of worries within the financial systems. Particularly in the remittance segment, the apex bank has directed all International Money Transfer Operators (IMTOs) to route remittance transactions through designated Naira settlement accounts in banks, a move aimed at boosting transparency and channelling more foreign exchange into the formal market.
This helps take off pressure from the foreign reserves, which have fallen below the $50 billion mark as they are gradually decreasing rather than falling sharply.
Meanwhile, the cryptocurrency market was bullish on Thursday, as macro sentiment shifted against recent optimism after reports that Iran is drafting a protocol with Oman to manage traffic through the Strait of Hormuz, easing concerns about disruptions to a key global oil route.
The remarks came after U.S. President Trump on Wednesday night vowed to hit Iran “extremely hard” in the coming weeks and that the Strait of Hormuz would “open naturally” once the war ends.
Cardano (ADA) chalked up 1.9 per cent to trade at $0.2435, Dogecoin (DOGE) grew by 1.2 per cent to $0.0912, Ethereum (ETH) appreciated by 0.8 per cent to $2,066.37, Bitcoin (BTC) added 0.5 per cent to sell at $67,080.53, Solana (SOL) increased by 0.5 per cent to $79.91, and Ripple (XRP) jumped 0.2 per cent to $1.31.
Conversely, Binance Coin (BNB) dipped 0.7 per cent to $586.90, and TRON (TRX) depreciated by 0.3 per cent to $0.3147, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
By Dipo Olowookere
The local stock market was relatively flat on Friday, as the bears and the bulls shared the spoils of war, though investor sentiment turned bullish compared with the preceding session’s bearish posture.
Data from the Nigerian Exchange (NGX) Limited showed that the All-Share Index (ASI) was marginally down by 4.66 points as it ended at 201,698.89 points versus Wednesday’s 201,703.55 points, and the market capitalisation slightly contracted by N3 billion to N129.806 trillion from N129.809 trillion.
Customs Street was shut on Friday because of the public holidays declared by the federal government today and next Monday.
Business Post reports that John Holt declined by 9.91 per cent to N15.45, Abbey Mortgage Bank shed 9.60 per cent to trade at N8.95, International Energy Insurance slipped by 6.48 per cent to N3.32, Chams shrank by 5.30 per cent to N3.75, and Tantalizers depreciated by 5.18 per cent to N4.03.
On the flip side, Unilever Nigeria improved by 10.00 per cent to N103.40, Fortis Global Insurance gained 9.82 per cent to trade at N1.23, Multiverse appreciated 9.81 per cent to N20.15, Legend Internet advanced by 9.38 per cent to N6.30, and Zichis grew by 9.02 per cent to N14.14.
The market breadth index was positive during the trading session, as there were 35 appreciating stocks and 24 depreciating stocks.
Yesterday, investors traded 560.0 million equities valued at N19.3 billion in 49,676 deals, in contrast to the 815.5 million equities worth N33.3 billion transacted in 52,641 deals in the preceding day, representing a drop in the trading volume, value, and number of deals by 31.33 per cent, 42.04 per cent, and 5.63 per cent, respectively.
Secure Electronic Technology dominated the activity log with 59.7 million shares valued at N61.1 million, Wema Bank exchanged 52.0 million equities worth N1.4 billion, VFD Group transacted 36.0 million stocks for N410.5 million, Access Holdings sold 35.3 million shares valued at N914.8 million, and Chams traded 31.0 million equities worth N115.0 million.
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