By Dipo Olowookere
It was a bad day for investors at the nation’s stock market on Friday as their portfolios depleted as a result of sustained profit-taking at the market.
This turned the market sentiment negative after 33 equities depreciated in value during the last trading day of the week as against the 21 stocks that appreciated in value of the close of business.
Business Post reports that the sell-offs by investors yesterday, especially in Japaul, Transcorp and others, weakened the Nigerian Stock Exchange (NSE) by 0.24 per cent when trading activities were ended for the day.
As a result, the All-Share Index (ASI) reduced by 97.16 points to 41,001.99 points from 41,099.15 points, while the market capitalisation decreased by N50 billion to close at N21.449 trillion versus N21.499 trillion it closed on Thursday.
Apart from the investor sentiment, which waned yesterday, the level of activity also declined significantly as the trading volume dropped 47.26 per cent to 591.5 million shares from 1.1 billion stocks of the previous session. The trading value went down by 20.72 per cent to N5.1 billion from N6.4 billion, while the number of deals declined by 22.11 per cent to 5,767 deals from 7,404 deals.
Transcorp further closed as the most active stock on Friday with the sale of 169.3 million shares worth N195.9 million and was trailed by Japaul, which sold 47.3 million stocks valued at N45.0 million.
UBA exchanged 36.6 million equities worth N321.8 million, FBN Holdings transacted 34.3 million stocks for N250.8 million, while Zenith Bank exchanged 25.7 million shares for N680.8 million.
On the price movement chart, Lafarge Africa was the heaviest price loser due to the N1.95 decline in its equity value, closing at N26 per unit.
MRS Oil lost N1.20 to close at N11.20 per share, Livestock Feeds depreciated by 28 kobo to sell for N2.52 per unit, NEM Insurance declined by 26 kobo to N2.43 per share, while UBA dropped 25 kobo to trade at N8.70 per unit.
Conversely, Flour Mills finished the day on top of the gainers’ chart after it added 40 kobo to its share price to settle at N32 per unit.
NCR Nigeria gained 28 kobo to sell for N3.12 per share, Cutix appreciated by 20 kobo to finish at N2.26 per unit, Champion Breweries improved by 17 kobo to close at N1.95 per share, while Red Star Express gained 10 kobo to sell at N3.40 per unit.
A look at the performances of the key sectors of the bourse showed that only the consumer goods space closed higher by 0.06 per cent as others closed negative.
The insurance index depreciated by 7.93 per cent, the industrial goods counter lost 0.50 per cent, the oil/gas ecosystem fell by 0.29 per cent, while the banking space lost 0.17 per cent.
SEC Okays NG Clearing as Central Counterparty
By Aduragbemi Omiyale
NG Clearing Limited, a company incorporated on May 24, 2016, to facilitate derivatives trading in the Nigerian capital market, has been given the licence to operate as a central counterparty (CCP).
The authorisation was given by the Securities and Exchange Commission (SEC), the apex regulatory agency in the Nigerian capital market and this licence became effective Monday, June 7, 2021.
With the registration to perform the function of a CCP, NG Clearing becomes the first organisation to carry out this duty in the country. It means the firm has the authority to clear and settle exchange-traded derivative products.
The Chairman of NG Clearing, Mr Oscar Onyema, expressed delight over this development, noting that it will improve the soundness and safety of the Nigerian financial market.
He said the company will deliver best-in-class post-trade services that manage counterparty credit risk and reduce systemic risk by interposing itself as a guarantor to both parties in a transaction, thus ensuring the successful execution of derivatives and other trades from various trade points in Nigeria.
“NG Clearing will deliver an unparalleled CCP experience for the Nigerian financial and capital markets and will optimise the deployment of its resources to achieve long-term value creation for its stakeholders using a state-of-the-art risk management framework, which complies with global best practices for mitigating settlement risk,” he said.
On his part, the Managing Director of NG Clearing, Mr Tapas Das said the company has sufficient financial resources, including a settlement guarantee fund to cover participants’ risk exposures.
He noted that members will have access to a wide range of financial reports that equip them with extensive knowledge and enable them to make informed decisions, as well as access to NG Clearing’s bespoke clearing and settlement software application which will support the clearing and settlement of derivative instruments across various asset classes i.e., futures and options contracts on indices, equity shares, commodities, currency, rates etc.
“NG Clearing shall be playing a key role in the financial market ecosystem in the region, upholding stability and safety of the marketplace, through an efficient and timely settlement of derivative trades.
“The aim is to strengthen the country’s investment environment through solutions that systematically reduce risks, enhance operating efficiency, and minimize costs for all market participants, thereby serving as a catalyst to national development,” he stated.
NG Clearing is promoted by the Nigerian Exchange Group Plc and Central Securities Clearing System (CSCS) Plc along with key stakeholders, including Nigeria Sovereign Investment Authority (NSIA), Access Bank Plc, Consonance Kuramo Special Opportunities Fund I, Coronation Merchant Bank Limited, Greenwich Merchant Bank Limited, Union Bank of Nigeria Plc, United Bank for Africa Plc (UBA) and Association of Securities Dealing Houses of Nigeria (ASHON).
CSCS, NGX Lift OTC Exchange by 0.77% After Holiday
By Adedapo Adesanya
Appreciation in the stock prices of Central Securities Clearing Systems (CSCS) Plc and the Nigerian Exchange (NGX) Group Plc ensured that the bulls remained on the floor of the NASD Over-the-Counter (OTC) Securities Exchange on Tuesday.
It was the first trading session at the OTC Exchange after the public holiday observed on Monday to celebrate Democracy Day in Nigeria. The unlisted securities market appreciated by 0.77 per cent yesterday.
During the session, shares of CSCS increased by 68 kobo or 3.6 per cent to sell at N18.68 per unit compared to N18 per unit of the previous session, while the NGX Group gained 15 kobo or 0.8 per cent to sell for N20.04 per share versus the previous N19.89 per share.
The gains recorded by the two securities expanded the market capitalisation of the bourse by N4.09 billion to close at N534.49 billion in contrast to N530.40 billion it ended last Friday.
Also, the NASD Unlisted Security Index (NSI) increased by 5.76 points during the session to finish at 751.95 points as against 746.19 points of the previous session.
During the session, investors increased the volume of securities traded by 75.8 per cent to 6.5 million units from 3.7 million units, while the value of the trades rose by 74.1 per cent to N129.2 million from N74.2 million, with the number of deals rising by 17.2 per cent to 34 deals from 29 deals.
NGX Group was the most active stock by (year-to-date) with the sale of 266.3 million units worth N6.0 billion, followed by Swap Technologies & Telecomms Plc with 46.6 million units worth N41.0 million and CSCS Plc with 30.9 million units worth N483.3 million.
Also, NGX Group was the most active stock by value on a year-to-date basis with the sale of 266.3 million units worth N6.0 billion, followed by Niger Delta Exploration and Production (NDEP) Plc with 2.9 million units valued at N900.5 million and FrieslandCampina WAMCO Nigeria with 5.9 million units valued at N750.4 million.
Naira Worsens, Sells for N505/$1 at Black Market
By Adedapo Adesanya
The situation of the Naira worsened at the black market on Tuesday, June 15 as it depreciated against the Dollar by N3 to sell for N505/$1 in contrast to N502/$1.
At the same unregulated segment of the foreign exchange market yesterday, the local currency also depreciated against the British Pound Sterling by N1 to close at N716/£1 compared to N715/£1 of the preceding trading session.
In the same vein, the domestic currency went down by N1 against the Euro as it traded at N608/€1 in contrast to N607/€1 of the previous day.
The situation was not different at the regulated Investors and Exchange (I&E) window as the Naira depreciated against the greenback on Tuesday by 95 kobo or 0.23 per cent, selling at N411.75/$1 in contrast to N410.80/$1 it traded at the preceding session.
It was observed that the local currency suffered the loss yesterday as a result of an FX demand pressure as the value of transactions at the market segment increased by 85.6 per cent or $79.46 million to $172.24 million from the previous session’s $92.78 million, according to data from the FMDQ Securities Exchange.
However, there was a respite for the domestic currency at the interbank segment, which is the official exchange rate window for the country. The Nigerian currency marginally appreciated by one kobo at the category to quote at N410.12/$1 against N410.13/$1 of the previous session.
Meanwhile, at the digital currency market, the bears were in control as five of the seven tokens tracked by Business Post on Quidax closed in the red.
Bitcoin (BTC) lost 0.9 per cent to close at N20,184,844.70, Ethereum (ETH) also went down by 0.9 per cent to close at N1,263,000.01, while Ripple (XRP) declined by 2.9 per cent to trade at N438.02.
In addition, Litecoin (LTC) went down by 4.1 per cent to trade at N85,602.00, while the US Dollar Tether (USDT) depreciated by 0.8 per cent to sell for N510.57.
On the gainers’ angle, Dash (DASH) appreciated by 4.1 per cent to sell at N89,999.00, while Tron (TRX) went up by 0.2 per cent to sell at N36.20.
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