By Aduragbemi Omiyale
Stakeholders in the nation’s capital market, especially companies trading their stocks on the Nigerian Exchange (NGX) Limited, have been assured of fair and transparent market.
The assurance was given by the Chief Executive Officer of NGX Regulation (NGX RegCo) Limited, Ms Tinuade Awe, at the 2021 Issuers’ Engagement Forum on Tuesday.
At the event themed Corporate Disclosures – Beyond Numbers,’ Ms Awe stated that, “The impact of the COVID-19 pandemic is still very much visible across the global economy.”
“Whilst many businesses are either closed or waiting for the economy to open up, others have weathered through the storm created by the pandemic, leveraging on their continuity plans built on sustainable business models.
“The theme of this year’s forum is aptly couched to reflect the realities of our today’s world. With the increasing levels of shareholders’ activism and greater levels of scrutiny on financial performance, the qualitative aspect of information disclosure is becoming more imperative for businesses as much as the quantitative form of information,” she added.
The programme also featured a keynote address from Professor Kenneth Amaeshi, Visiting Professor of Leadership & Financial Markets in Africa & London, School of Economics & Political Science.
There was also be a panel session featuring Dr Innocent Okwusa, Visiting Associate Professor, Caleb University & 1st DVP, ICAN; Professor Carol Adams, Professor of Accounting, Durham University Business School; Ms Eunice Sampson, Director, Climate Change and Sustainability West Africa, Ernst & Young; Mr Elan Theebom, ESG Specialist, Arise; with Mr Olumide Lala, Co-Founder and Director, Climate Transition Limited serving as panel moderator.
Engagement such as this is particularly important because the capital market is information driven. NGX RegCo, therefore, continues to encourage Issuers to show transparency in their business activities through timely disclosure of price sensitive information to the market to prevent information asymmetry.
Furthermore, the regulation company has expressed its commitment to working with issuers to guide them through complying with NGX post listing obligations as well as other regulatory requirements for public listed companies, particularly with regards to upholding good governance practices that thrive on accountability and enhanced information disclosure.
It would be recalled that NGX released its Sustainability Disclosure Guidelines in December 2018. The guidelines provide the value proposition for sustainability as well as a step-by-step approach on integrating sustainability in organisations, and detail indicators that should be considered when providing annual disclosure to NGX.
The Securities and Exchange Commission (SEC) also recently introduced its Guidelines for Sustainable Financial Principles for the Nigerian capital market in April 2021. These and other efforts by the government, market regulators and policy makers in the sustainability space point to the increasing importance of sustainability reporting in the context of enhanced corporate disclosures.
Popoola Urges Investors to Diversify Portfolios to Reduce Risks as Stock Prices Rise
By Aduragbemi Omiyale
Investors in the stock market have been advised to embrace the strategy of diversification of portfolios in order to get a better return on investment (RoI).
The chief executive of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, while reacting to the current uptrend rally in the equity market, stressed that diversification of portfolios would go a long way to reduce risks, explaining the need for investors to re-balance their stock basket.
So far this year, the local bourse has been buoyant with the NGX-All Share Index (NGX-ASI) Year-to-Date (YTD) returned at 26.62 per cent as of Friday, May 27, 2022, and is currently over the psychological 54,000-level for the first time since the 2008 crash, as opposed to the broad-based bearish performance experienced in other markets.
Mr Popoola stated that in spite of the current appreciation in prices of equities in the country, opportunities still exist for investors in other asset classes.
He said as a multi-asset Exchange, NGX has various products for every investor regardless of what their investment goals, risk appetite or return expectations might be, listing the products like equities, fixed income, Exchange Traded Funds and Derivatives.
According to him, there are opportunities in every segment of the market, emphasising that it is important for investors to do the analysis, and understand where those opportunities are, as there are opportunities, not only on the equity side but across the various assets classes.
He, however, said that the Nigerian capital market and the business of the stock exchange would always be impacted by dynamic economic trends and investor demands.
Explaining further, he said achieving success through growth that creates value will increase the Exchange’s ability to operate efficiently and profitably in the transient advantage economy that has unfolded in Nigeria and around the world.
“While there has been no respite in the macroeconomy and operating environment due to lingering oil price and foreign exchange pressures, our long-term outlook for the Exchange remains positive as listed companies continue to show resilience and our members have been repositioned to deliver superior value to investors,” he said.
Mr Popoola noted that NGX would continue to find more products that a lot of Nigerians and the youth demography are attracted to, and introduce to the market.
Nigerian Exchange Index Skyrockets to 54,085.30 points After 1.76% Rise
By Dipo Olowookere
It was another fantastic day at the Nigerian Exchange (NGX) as the recent bullish run witnessed lately continued after a short disruption caused by the raising of the interest rate to 13.0 per cent from 11.5 per cent by the Central Bank of Nigeria (CBN) on Tuesday.
Yesterday, the stock market appreciated further by 1.76 per cent on the back of renewed interest in local equities buoyed by the release of the much-awaited financial statements of FBN Holdings Plc for the 2021 fiscal year.
At the exchange on Friday, the All Share Index (ASI) skyrocketed by 933.98 points to 54,085.30 points from 53,151.32 points, while the market capitalisation jumped by N504 billion to N29.158 trillion from the preceding day’s N28.654 trillion.
The gains were influenced by sustained buying pressure in shares in the banking, insurance, energy and industrial goods sectors, which appreciated by 0.48 per cent, 0.32 per cent, 0.24 per cent and 0.01 per cent respectively, while the consumer goods counter depreciated by 2.41 per cent due to sell-offs in Nigerian Breweries, UAC Nigeria and others.
During the session, investors traded 208.1 million equities valued at N5.5 billion in 4,898 deals compared with the 266.2 million equities worth N5.1 billion transacted in 5,501 deals a day earlier, representing a decline in the trading volume and number of deals by 21.83 per cent and 10.96 per cent respectively and an increase in the trading value by 7.92 per cent.
Cutix was the highest price gainer yesterday as its value went up by 9.96 per cent to N2.87, Airtel Africa appreciated by 9.89 per cent to N1,767.00, Wema Bank gained 8.63 per cent to finish at N3.65, Ardova improved by 7.09 per cent to N15.10, while FBN Holdings increased its value by 6.98 per cent to N11.50.
On the other side of the coin, the heaviest price loser was Nigerian Breweries as it deflated by 10.00 per cent to N69.30, UAC Nigeria reduced by 9.87 per cent to N10.50, University Press declined by 9.52 per cent to N2.85, Royal Exchange went down by 9.26 per cent to 98 kobo, while Linkage Assurance depleted by 6.67 per cent to 56 kobo.
Business Post reports that the market breadth was at equilibrium on Friday as there were 19 appreciating stocks and 19 depreciating stocks.
Naira Trades N617/$1, N419.50/$1 at P2P, I&E FX Windows
By Adedapo Adesanya
The Naira had a bad day on Friday as it depreciated in the Peer-to-Peer (P2P) segment of the foreign exchange market against the Dollar by 0.16 per cent or N1 to N617/$1 in contrast to the previous day’s N616/$1.
Also, at the Investors and Exporters (I&E) window of the forex market, the Naira depreciated by 0.15 per cent or 62 kobo against the American currency to N419.50/$1 compared with the N418.88/$1 it was transacted on Thursday.
According to data obtained from FMDQ Securities Exchange, the domestic currency suffered this loss amid a reduction in the forex turnover for the trading session.
FX trades worth $107.84 million were carried out yesterday compared with the $157.46 million executed a day earlier, representing a decline of $49.62 million or 31.5 per cent.
At the interbank segment of the market, the local currency closed weaker against the Pound Sterling as it depleted by N1.01 to trade at N524.57/£1 compared to the previously traded rate of N523.56/£1 and against the Euro, the domestic currency fell by 19 kobo to close at 445.26/€1 in contrast to N445.07/€1.
In the cryptocurrency market, the bulls took control as seven of the 10 cryptos tracked by Business Post pointed north, with Dogecoin (DOGE) recording the highest rise of 6.9 per cent to trade at $0.0827.
Binance Coin (BNB) recorded a 2.4 per cent increase to trade at $302.89, Solana (SOL) appreciated by 2.1 per cent to $41.99, Ethereum (ETH) gained 0.7 per cent to sell at $1,770.73, Cardano (ADA) added 0.4 per cent to its value to finish at $0.4625, Litecoin (LTC) improved its price by 0.3 per cent to trade at $62.66, while Bitcoin (BTC) appreciated by 0.1 per cent to settle at $30,000.
On the flip side, the highest loser was the rebranded TerraClassicUSD (USTC), which continued its windfall with a 6.4 per cent loss to trade at $0.0397, Ripple (XRP) recorded a 2.4 per cent slide to quote at $0.3867, while the US Dollar Tether (USDT) moved downwards by 0.01 per cent to sell for $0.998.
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