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Economy

Nigerian Exchange Rises 0.23% as Investors Mop up Bank Stocks

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Nigerian Exchange 1

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited extended its gains on Friday with a 0.23 per cent growth on the back of a sustained interest in bank stocks.

Business Post observed that investors mopped up equities of tier-one lenders yesterday and this buying pressure further lifted the All-Share Index (ASI) of the exchange by 88.15 points to 38,962.28 points from the previous day’s 38,874.13 and pushed the market capitalisation higher by N46 billion to N20.300 trillion from N20.254 trillion.

The market breadth was positive during the session as there were 25 price gainers and 11 price losers, indicating a positive investor sentiment.

Pharma Deko topped the gainers’ chart after its equity price went up by 9.74 per cent to N2.14. Sovereign Trust Insurance grew by 8.70 per cent to 25 kobo, Okomu Oil rose by 5.77 per cent to N110.00, Eterna appreciated by 4.95 per cent to N7.00, while Champion Breweries moved up by 4.71 per cent to N2.00.

On the reverse side, SCOA Nigeria topped the log with a price decline of 9.38 per cent to settle at 87 kobo. Presco went down by 8.18 per cent to N73.00, Regency Alliance fell by 6.38 per cent to 44 kobo, Total Energies depreciated by 3.61 per cent to N192.00, while Sterling Bank depleted by 1.34 per cent to N1.47.

A look at the performance of the five key sectors of the market showed that the banking space closed 1.86 per cent higher, the insurance sector rose by 0.27 per cent, the consumer goods counter appreciated by 0.06 per cent, while the energy index grew by 0.04 per cent, with the industrial goods sector closing flat.

The most traded stock on Friday was FBN Holdings as investors exchanged 481.5 million units valued at N3.6 billion.

Ecobank traded 16.6 million units worth N87.8 million, Zenith Bank transacted 12.0 million units valued at N279.0 million, Access Bank exchanged 11.6 million units worth N100.9 million, while Transcorp sold 9.4 million units for N8.7 million.

At the close of business, a total of 633.5 million shares worth N6.5 billion were traded in 3,228 deals as against the 125.8 million shares worth N1.3 billion transacted in 2,990 deals on Thursday, indicating a 403.61 per cent rise in the trading volume, a 409.36 per cent growth in the trading value and a 7.96 per cent jump in the number of deals.

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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Economy

Nigerian Exchange Jumps 0.14% on Renewed Investor Confidence

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nigerian stock exchange

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited further appreciated by 0.14 per cent on Friday on the back of a renewed investor confidence, triggering a rise in the level of activities.

This was largely driven by demand for the shares of FBN Holdings, Ecobank, Cutix, amongst others and at the end of the session, the trading volume rose by135.98 per cent to 510.2 million units from the previous day’s 216.2 million units.

In the same vein, the trading value increased yesterday by 73.47 per cent to N5.9 billion from N3.4 billion, while the number of deals appreciated by 28.39 per cent to 5,485 deals from 4,272 deals.

Business Post reports that news that Mr Femi Otedola has acquired First Bank further triggered a buy pressure on FBN Holdings stocks, closing again as the most active with the sale of 154.4 million units valued at N1.9 billion.

Ecobank transacted 56.1 million units worth N421.5 million, Transcorp traded 32.0 million units valued at N32.3 million, NGX Group sold 29.9 million units valued at N723.2 million, while Wema Bank exchanged 24.1 million units worth N17.4 million.

On the price movement chart, Cutix led the gainers’ group with a price appreciation of 10.00 per cent to trade at N6.05, followed by Unilever Nigeria, which gained 9.85 per cent to quote at N14.50.

ABC Transport appreciated by 9.68 per cent to sell for 34 kobo, PZ Cussons gained 9.26 per cent to trade at N5.90, while Total Energies went up by 6.17 per cent to settle at N204.90.

On the other hand, the losers’ gang was led by NEM Insurance after its value went down by 8.57 per cent to N1.92. Ikeja Hotels dropped 7.83 per cent to N1.06, NGX Group depreciated by 6.58 per cent to N22.00, Coronation Insurance fell by 5.88 per cent to 48 kobo, while NASCON declined by 5.48 per cent to N14.65.

During the trading day, the insurance sector lost 1.75 per cent, while the energy, consumer goods, banking and industrial goods counters gained 2.48 per cent, 0.31 per cent, 0.29 per cent and 0.04 per cent respectively.

At the close of transactions, the All-Share Index (ASI) improved by 59.15 points to 41,763.26 points from 41,704.11 points, while the market capitalisation grew by N30 billion to N21.794 trillion from N21.764 trillion.

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Economy

Investors, Exporters Exchange Dollar at N415.07 Friday

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naira and dollar

By Adedapo Adesanya

The Naira to Dollar exchange rate at the Investors and Exporters (I&E) segment of the foreign exchange (FX) market in Nigeria maintained stability on Friday.

According to data harvested from FMDQ Securities Exchange by Business Post yesterday, the domestic currency was traded at N415.07/$1, the same amount it was sold on Thursday.

It was observed that the local currency closed flat during the session despite a significant increase in the demand for forex at the market window.

At the last trading session of the week on the FX category, transactions valued at $240.97 million were carried out compared with the $103.16 million recorded at the preceding session, indicating a surge of $137.81 million or 133.6 per cent.

But at the interbank segment of the FX market, the Nigerian currency had a bad day against the United States currency as it depreciated by 5 kobo or 0.01 per cent to sell for N410.96/$1 in contrast to N410.91/$1 it traded a day earlier, according to data from the Central Bank of Nigeria (CBN).

At the digital currency market, four of the 10 cryptos monitored by this newspaper on Friday declined, with Bitcoin (BTC), the most popular of the digital currencies, losing 4.7 per cent to sell at N34,434,127.72.

The loss occurred after it went on to chart a brand new all-time high in the week as the market witnessed the approval of the first-ever futures BTC ETF in the US.

Litecoin depreciated by 5.8 per cent to sell at N107,359.81, Ripple (XRP) tumbled by 2.7 per cent to N621.99, while Tron (TRX) recorded a 0.4 per cent drop to trade at N55.94.

However, Ethereum (ETH) recorded the highest gain of the day with a 5.0 per cent growth to trade at N2,400,000.00, Dash (DASH) climbed higher by 3.4 per cent to sell for N112,490.00, Dogecoin (DOGE) rose by 3.2 per cent to N149.35, Cardano (ADA) grew by 0.8 per cent to sell at N1,278.84, Binance Coin (BNB) improved by 0.5 per cent to quote at N197,123.45, while the US Dollar Tether (USDT) increased by 0.2 per cent to sell for N564.99.

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Economy

Road Infrastructure Tax is to Bridge Nigeria’s Revenue Gap—Nami

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Road Infrastructure Tax

By Adedapo Adesanya

To help cover Nigeria’s revenue shortfall, the Federal Inland Revenue Service (FIRS) says it is proposing the introduction of road infrastructure tax by making the informal sector contribute to building a modern society.

The Executive Chairman of FIRS, Mr Muhammad Mamman Nami said this when a delegation of the Nigeria Union of Journalists (NUJ) led by its National President, Mr Chris Isiguzo, met him in Abuja.

Mr Nami said the proposed road tax to be administered by the FIRS will provide the government with adequate funding for road construction, rehabilitation, and maintenance, as well as providing the needed security for roads in the country.

According to the FIRS boss, “One quick and very important intervention required of you is in the area of the Road Infrastructure Funding Scheme that the country needs in order fix our roads and bringing the informal sector to the tax net.”

He noted that in many jurisdictions, road users pay for the use of road infrastructure, adding that this should not be seen as an additional burden on the people because it has the potential of making life better for all.

Speaking further, Mr Nami stated that Nigeria’s economy presently relies heavily on non-oil revenues to discharge its statutory responsibility of paying salaries and providing social amenities to the citizenry.

“Without the tax that you pay, governments at all levels would not be able to fulfil their mandate to the electorates. Tax money also helps to ensure the roads you travel are safe and always in good condition,” he said.

He disclosed that the recent rise in the price of crude oil ordinarily should have impacted positively on the Petroleum Profit Tax payable by oil-producing companies. However, it has shown otherwise due to some reasons.

On the challenges facing the service of delivering on its mandate, he said “crude oil production has been limited by OPEC quota. Nigerian OPEC quota as at July 2021 was about 1.5 million barrels per day as against its crude oil production budget of 1.8 million barrels per day.

“This is a shortfall of 300,000 barrels per day. Our average daily crude oil production is around 1.250 million barrels per day as against the allocated 1.5 million barrels per day OPEC quota which has resulted in a shortfall of almost 250,000 barrels per day mainly caused by crude oil theft and force majeure declared by some of the IOCs.

“The total shortfall to FGN budgeted production is about 550,000 barrels per day.

“Huge losses brought forward and un-recouped capital allowances reported by most of the companies due to production shut in and the fall in oil price in 2020 as a result of the covid-19 pandemic which reduced their revenue.“

He said with challenges in the oil and gas sector, reforms have been carried out by the agency with a visible impact on the economy such as the deployment of technology in tax administration to improve domestic revenue mobilisation in view of dwindling oil prices.

Mr Nami added that the service created 10 Value Added Tax, VAT, Regional Coordination Offices across the country to drive collection of VAT.

He said, “We have commenced the usage of VAT Form 002A for enrolment and tracking of branch offices of major VAT payers. This will certainly improve our VAT collection and capacity. We achieved 114.66 per cent of our VAT collection target in the first half of the year.

“It will interest you to know that the service collected a total of N4.2 trillion between January to September 2021. This feat was achieved as a result of the efficiency and effectiveness of the TaxProMax Solution and intelligence/data we gathered, mined and analyzed in the period under review.

“The service successfully facilitated both the mock and external audits for the ISO 27001:2013 certification of the Exchange of Information (EOI) centre, to meet international information security management standards.”

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