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Economy

NSE All-Share Index Gains 3.71% to Hit 16-month High

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NSE All-Share Index

By Dipo Olowookere

The stock market in Nigeria continued its recent bull run on Friday, appreciating by 3.71 per cent after more positive Q3 earnings inspired investors to expand their portfolios.

The bargain-hunting pushed the All-Share Index (ASI) to a level last seen in June 2019 as it crossed 30,000 points at the close of transactions. The index increased yesterday by 1,093.09 points to settle at 30,530.69 points versus 29,437.60 points it ended on Wednesday.

Business Post recalled that the last time the ASI was near 30,530.69 was on Thursday, June 6, 2019, when the market lost 1.30 per cent and the index closed at 30,527.07 points.

Yesterday, the market capitalisation inched closer to the N16 trillion region as it increased by N571 billion to finish at N15.958 trillion in contrast to N15.387 trillion it ended the previous session.

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It was observed that all the five key sub-sectors of the market closed positive with the consumer goods space rising by 5.58 per cent and was followed by the industrial goods sector, which gained 5.53 per cent.

The banking counter appreciated by 3.48 per cent, the oil/gas index rose by 3.07 per cent, while the insurance sector moved up by 2.32 per cent.

There were 43 price gainers at the close of business on Friday, higher than the 11 price losers and the 10 stocks, which had their prices unchanged.

The biggest price riser was Nestle Nigeria, which appreciated by N129.20 to close at N1421.70 per share and was trailed by Mobil Nigeria, which gained 17.80 to finish at N196.10 per unit.

Total Nigeria rose by N11 to end at N129.90 per share, Dangote Cement appreciated by N4.70 to trade at N160 per unit, while BUA Cement chalked up N4.10 to sell at N45.50 per share.

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Guinness Nigeria was the heaviest price loser on Friday after depreciating by 55 kobo to quote at N17 per unit and was followed by NAHCO, which lost 12 kobo to settle at N2.10 per share.

PZ Cussons shed 10 kobo to trade at N4.45 per unit, Prestige Assurance declined by 6 kobo to sell at 54 kobo per share, while Ecobank depleted by 5 kobo to N5.65 per unit.

On the activity chart, the trading volume, value and number of deals increased by 115.27 per cent, 126.60 per cent and 36.42 per cent respectively.

This was because a total of 807.8 million shares worth N10.5 billion were traded in 8,113 deals yesterday compared with the 375.2 million stocks worth N4.6 billion transacted in 5,947 deals on Wednesday.

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There was no trading activity on the floor of the Nigerian Stock Exchange (NSE) on Thursday as a result of the public holiday declared by the federal government to celebrate Eid-el-Maulud, which is the birthday of Prophet Mohammed.

UBA was the most traded stock on Friday as a result of the 108.6 million units of its shares worth N816.7 million traded by market participants.

Access Bank transacted 94.7 million equities valued at N746.9 million, FBN Holdings exchanged 89.6 million stocks for N581.5 million, Zenith Bank traded 75.2 million shares valued at N1.7 billion, while GTBank transacted 56.2 million stocks worth N1.8 billion.

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

NGX Considers Policy Advocacy to Woo Companies

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temi popoola NGX

By Dipo Olowookere

The chief executive of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, has said the exchange would consider policy advocacy aimed to encourage more companies from listing their shares on the bourse.

Speaking at an engagement session with institutional clients on Monday, July 26, 2021, Mr Popoola admitted that there was a dearth of listings on the exchange, but said efforts were being made to address the issue.

He identified two major areas around attracting more listings to the market first by considering the driving factor behind major spiked in listing activity and then considering barriers to entry.

In dealing with the first, he noted that, “It is impossible to disconnect policy from listing activities evidenced by the successes recorded in the eras of indigenization, privatisation and the banking sector consolidation.”

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“Our strategy will, therefore, be built around policy advocacy, whilst addressing barriers to entry such as time to market, ease of entry and benefits of listing,” he revealed.

However, he emphasised that the demutualisation of the Nigerian Stock Exchange (NSE) some months ago has positioned the exchange to deliver more value to stakeholders.

“Following the recent demutualisation of the exchange, it is important that we continue to function well and deliver the highest level of service delivery that our stakeholders are accustomed to. It is not lost on us that we have to embody many things for our wide variety of stakeholders.

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“As such we have begun to think about the exchange of tomorrow and how we can continue to meet evolving needs of the market. To do this, we will take on three major matters – listings, technology and investor participation,” he said.

Speaking technology, Mr Popoola recognised the advanced strides the exchange has made in digitisation over the years and indicated that it is time to take a step further to digital transformation, addressing how people connect to the bourse, how to distribute products through technology and how to democratise finance.

In this regard, he emphasised the need to attract more technology stocks to the Nigerian capital market in order to capitalise on the gains we see in global markets that are home to the world’s biggest technology companies.

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As for investor participation, Mr Popoola stated, “We have big plans to attract investors – retail and institutional, domestic and foreign – to our market.

“In terms of diversification, we understand that equities may no longer be the answer for all investors and we are focused on creating an exchange that understands investors’ appetite and is indeed the preferred destination for finding products that suit their needs.”

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Economy

NewGold ETF Attracts N4.41bn from Offshore Investors

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Newgold Issuer Limited ETF

By Dipo Olowookere

Exchange-Traded Funds (ETFs) space in Nigeria has continued to attract more offshore investors as it has remained as an avenue for them to diversify their investment portfolios.

Business Post reports that the demand for the form of investment asset has remained high despite foreign exchange (FX) restrictions in the country.

Recall that a month ago, this newspaper reported that foreign portfolio investors use this means to convert their Naira assets into Dollar as the nation grapples with forex liquidity.

Recently, the Nigerian Exchange (NGX) Limited released its quarterly report on the ETFs market for Q2 and it was revealed that foreign transactions increased by 99.64 per cent even as 10 stockbrokers drove 99.9 per cent of total transaction value and 97.3 per cent of total volumes of ETFs.

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It was observed that the NewGold ETF was the most active with its value rising by 99.58 per cent to N4.41 billion, taking the lead in both value and volume traded.

The report showed that offshore investors traded 524.241 units of NewGold valued at N4.41 billion, while Vetiva Griffin 30 followed with 501,48 units worth N8.12 million.

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In addition, Vetiva Industrial Goods transacted 248,469 units valued at N4.52 million, Meristem Value ETF sold 115,58 units valued at N1.87 million, while Stanbic IBTC ETF traded 19,774 units valued at N1.48 million.

Analysis of the report showed that Rencap led in terms of brokers’ performance as regards value, retaining its top position in this category, having traded about 69.7 per cent.

RMB followed, accounting for 12.72 per cent while ABSA Securities accounted for 9.04 per cent of transactions.

On the other hand, Vetiva led in terms of volume, accounting for 31.55 per cent in the period under review. Rencap followed with 24.9 per cent while IONE accounted for 14.66 per cent volume of transactions.

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However, market capitalisation declined by a record 39.7 per cent between both quarters as the commodity-backed ETP suffered net outflows of 54 per cent, from N12.0 billion in Q1 2021 to N5.5 billion in Q2 2021, due to FX restrictions in the regulatory climate.

Furthermore, trade volumes fell by approximately 69 per cent from about 5.3 million units in Q2 2020 to 1.6 million units in Q2 2021.

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Economy

CBN Gives Nearly 4 million Farmers N756.5bn

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Ghana peasant farmers

By Ashemiriogwa Emmanuel

The Central Bank of Nigeria (CBN) on Tuesday said it has disbursed N756.5 billion to nearly 4 million (approximately 3,734,938) smallholder farmers cultivating 4.6 million hectares of land to improve food security in the country.

The development was revealed by CBN Governor, Mr Godwin Emiefele, while presenting the communiqué of the Monetary Policy Committee (MPC) meeting in Abuja.

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According to the CBN boss, a total number of 627,051 farmers were granted N120.2 billion for the 2021 wet season under the Anchor Borrowers’ Programme (ABP) to cultivate 847,484 hectares of land.

“Under the bank’s development finance initiatives, the bank granted N756.5 billion to 3,734,938 smallholder farmers cultivating 4.6 million hectares of land, of which N120.2 billion was extended for the 2021 wet season to 627,051 farmers for 847,484 hectares of land, under the ABP,” Mr Emefiele said.

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Furthermore, the apex bank said a total of N121.6 billion has been shared among 32,617 beneficiaries under the Agribusiness/Small and Medium Enterprise Investment Scheme (AGSMEIS).

Mr Emiefele also disclosed that the bank has released N318.2 billion to 679,422 beneficiaries for the targeted credit facility.

These beneficiaries, as said by the CBN chief, includes 572,189 individuals and 107,233 small and medium scale enterprises (SMEs).

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Meanwhile, the committee reviewed the domestic economic developments and noted that the non-oil sector, agriculture and industry sub-sectors were the major drivers of improvement as it recorded growth rates of 2.28 and 0.94 per cent, accordingly.

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