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Economy

NGX Index Grows 1.10% as MTN, Airtel, Nestle Witness Cross Deals

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Cross Deals

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited finished strong on Thursday as it appreciated by 1.10 per cent on the back of sustained bargain hunting by investors.

Consequently, the All-Share Index (ASI) went up by 454.40 points to 41,704.11 points from 41,249.71 points, while the market capitalisation rose by N238 billion to N21.764 trillion from N21.526 trillion it finished on Wednesday.

Business Post reports that the activity chart was weak yesterday as a total of 216.2 million shares worth N3.4 billion were traded in 4,272 deals as against the 499.5 million shares worth N5.1 billion transacted in 5,998 deals a day earlier.

This indicated that the volume of shares bought and sold at the session depreciated by 56.72 per cent, the value of the stocks went down by 33.43 per cent and the number of deals fell by 28.78 per cent.

Like in the previous trading day, FBN Holdings was the most traded stock with the sale of 51.9 million units valued at N628.3 million as Ecobank traded 20.0 million units worth N143.7 million.

Transcorp exchanged 14.7 million equities valued at N15.0 million, Access Bank transacted 13.0 million stocks worth N124.2 million, while Fidelity Bank sold 12.5 million shares for N34.2 million.

It was observed that on Thursday, three cross deals were recorded with MTN opening the market with the exchange of about 2 million units of its stocks at N172.00 each, while Airtel Africa witnessed the transfer of over 900,000 units at N770.00 each, with about 100,000 units of Nestle Nigeria’s shares crossed at N1,405.00 each.

A cross deal is the practice of the exchange of stocks between a buyer and a seller through a broker at an agreed price on the exchange.

A total of 23 equities were on the gainers’ chart yesterday with Cutix leading after its value went higher by the maximum rise of 10.00 per cent to settle at N5.50.

NGX Group rose by 9.79 per cent to N23.55, Consolidated Hallmark Insurance grew by 9.09 per cent to 60 kobo, Nigerian Breweries appreciated by 7.41 per cent to N51.45, while BUA Cement gained 6.12 per cent to sell for N72.00.

Conversely, 19 stocks finished on the losers’ log led by the Initiates, which fell by 8.51 per cent to trade at 43 kobo, followed by Neimeth, which lost 4.86 per cent to quote at N1.76.

Furthermore, Universal Insurance depreciated by 4.76 per cent to close at 20 kobo, NAHCO depleted by 3.61 per cent to N3.47, while Unity Bank went down by 3.51 per cent to 55 kobo.

In terms of the performance of the sectors, the energy space was down by 0.36 per cent while the industrial goods, insurance, consumer goods and banking counters appreciated by 2.16 per cent, 1.56 per cent, 1.45 per cent and 0.17 per cent respectively.

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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  1. Pingback: NGX Index Grows 1.10% as MTN, Airtel, Nestle Witness Cross Deals - Rifnote Wire

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Economy

Introduction of Capital Gains Tax Could Discourage Investors—Popoola

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capital gains tax

By Aduragbemi Omiyale

As part of efforts to raise more funds for the provision of critical infrastructure in the country, the federal government recently introduced the capital gains tax.

This was embedded in the 2021 Finance Act and it required the payment of capital gains tax on transactions worth over N100 million.

The chief executive of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, applauded this initiative of the government but warned that it could discourage investors, especially the high net-worth individuals (HNIs) and institutional investors, who carried out such heavy deals.

Mr Popoola, who spoke a few months ago at the Nigerian Economic Summit Group (NESG) Fiscal Policy Roundtable, called for a balance.

He admitted that the capital gains tax is in line with the government’s drive towards an increased tax bracket but was only worried about the adverse effect the laudable policy could have on the economy in the long run.

However, Mr Popoola commended the economic policy direction of the administration of President Muhammadu Buhari, noting that it was an indication of the government’s commitment to driving non-oil revenues into the country.

The NGX chief said the tenets of the 2021 Finance Act brought a lot more clarity on investment such as the Real Estate Investment Trust (REIT), Capital Gain Tax (CGT) and securities lending transactions.

According to him, investing in real estate investment brings a lot of potential gains and “if you look at our market today, all our assets class has helped to boost investors’ confidence.”

He stated that the Finance Act will boost the capital market and the economy, reiterating NGX’s commitment to adhering to government policy and driving growth in the capital market.

However, he further stressed that the introduction of excise taxes on non-alcoholic beverages and the education tax could also affect the economy.

According to him, these taxes could hamper the ability of companies affected by these developments to raise capital and pay dividends to investors because the policies are coming at a time the economy was undergoing a recovery.

Business Post reports that the event, which precisely took place in March 2022, was put together by NESG to access the impact of the 2021 Finance Act on the economy.

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Economy

Inflation in Nigeria Jumps to 16.82% in April 2022

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inflation rate Nigeria

By Aduragbemi Omiyale

The National Bureau of Statistics (NBS) on Tuesday disclosed that inflation in Nigeria increased by 16.82 per cent in April 2022 from the 15.92 per cent recorded in March 2022.

However, on a year-on-year basis, the rate moderated by 1.3 per cent as inflation was 18.12 per cent in the corresponding month of 2021.

The NBS disclosed that the percentage change in the average composite consumer price index (CPI) for the 12 months period ending April 2022 over the average of the CPI for the previous 12 months period was 16.45 per cent, 0.1 per cent lower than the 16.54 per cent recorded in March 2022.

It also stated that in the month under review, the urban inflation rate increased to 17.35 per cent (year-on-year) in April 2022 from 18.68 per cent recorded in April 2021, while the rural inflation rate increased to 16.32 per cent in April 2022 from 17.57 per cent in April 2021.

On a month-on-month basis, the urban index rose to 1.78 per cent in April 2022, up by 0.02 from the rate recorded in March 2022 at 1.76 per cent, while the rural index also rose to 1.74 per cent in April 2022, up by 0.01 from the rate that was recorded in March 2022 at 1.73 per cent.

The corresponding 12-month year-on-year average percentage change for the urban index is 17.01 per cent in April 2022, lower than 17.10 per cent reported in March 2022, while the corresponding rural inflation rate in April 2022 is 15.91 per cent compared to 16.00 per cent recorded in March 2022.

In the report, the stats agency said in April 2022, the composite food index rose by 18.37 per cent in contrast to the 22.72 per cent achieved in April 2021, attributing the increase to a hike in the prices of bread and cereals, food products n.e.c, potatoes, yam, and other tubers, wine, fish, meat, and oils.

On a month-on-month basis, the food sub-index increased to 2.00 per cent in April 2022, up by 0.01 per cent points from 1.99 per cent recorded in March 2022, the report added.

It was further stated that the average annual rate of change of the food sub-index for the 12-month period ending April 2022 over the previous 12-month average is 18.88 per cent, 0.34 per cent points from the average annual rate of change recorded in March 2022 at 19.21 per cent.

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Economy

OTC Securities Exchange Closes 0.02% Lower

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NASD OTC Securities Exchange

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange closed marginally lower by 0.02 per cent on Monday on the back of a price depreciation in Central Securities Clearing Systems (CSCS) Plc.

The stock, which was the only price loser yesterday, went down by 5 kobo or 0.29 per cent to sell at N16.95 per unit compared to the previous session’s N17.00 per unit.

At the close of transactions, it reduced the market capitalisation of the OTC securities exchange by N250 million to N1.05 trillion from N1.06 trillion and sliced the NASD Unlisted Securities Index (NSI) by 0.19 points to 807.56 points from 807.75 points.

Business Post observed that the level of activity during the session was low as the volume of securities recorded a decline of 99.8 per cent to 61,131 units from 7.5 million units, the value of trades also depreciated by 99.8 per cent to N4.6 million from N2.2 billion, while the number of deals remained unchanged at 11 deals.

AG Mortgage Bank Plc closed the session as the most traded stock by volume (year-to-date) with 2.3 billion units worth N1.2 billion, CSCS Plc was in second place with 661.6 million units worth N13.9 billion, while Food Concepts Plc held the third position with 94 million units worth N77.8 million.

But the most active stock by value (year-to-date) was CSCS Plc with 661.6 million units valued at N13.9 billion, VFD Group followed with 9.4 million units valued at N2.9 billion, and AG Mortgage Bank Plc with 2.3 billion units valued at N1.2 billion.

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