By Dipo Olowookere
After days of panic trading as a result of unrest in some parts of the country, which necessitated the declaration of curfew in Lagos and other states, investors are beginning to show strong confidence in the Nigerian Stock Exchange (NSE).
On Friday, the last trading day of the week, investors embarked on bargain hunting, mopping up some stocks especially in the banking sector they believe could give good yields in the coming days.
Already, the investment community is awaiting the release of third quarter earnings of most companies on the exchange and the few ones released so far have shown what should be expected.
In order to benefit from the possible rise in the prices of value stocks at the market, smart investors are already taking a position and at the close of transactions today, the bourse appreciated by 0.47 per cent.
This boosted the All-Share Index (ASI) by 133.19 points to 28,697.06 points from 28,563.87 points and raised the market capitalisation by N70 billion to N15.000 trillion from N14.930 trillion.
Business Post reports that four of the major sub-sectors tracked during the session appreciated as only the insurance index closed negative by 0.12 per cent.
The banking space grew by 1.69 per cent, the industrial goods sector appreciated by 0.46 per cent, the consumer goods counter gained 0.29 per cent and the energy space increased by 0.03 per cent.
The market breadth closed positive today with 20 price gainers and six price losers and this showed a positive investor sentiment.
NASCON was the highest price gainer as its share price rose by N1.30 to settle at N14.30 per unit, while Dangote Cement gained N1 to finish at N151 per share.
GTBank appreciated by 45 kobo to sell for N30.45 per unit, Zenith Bank improved by 35 kobo to close at N21 per share, while PZ Cussons gained 30 kobo to quote at N4.40 per unit.
The heaviest price loser of the day was Northern Nigerian Flour Mills as the company’s stock depreciated by 46 kobo to settle at N4.19 per share.
Vitafoam went down by 20 kobo to N6 per unit, NPF Microfinance Bank depreciated by 6 kobo to N1.34 per unit, Honeywell Flour slumped by 4 kobo to 91 kobo per unit, while Union Diagnostic declined by one kobo to sell at 26 kobo per share.
The level of activity further declined on Friday as the trading volume, value and number of deals went down by 9.11 per cent, 5.64 per cent and 12.83 per cent respectively.
This was because the trading volume dropped to 283.0 million units from 311.3 million units, the trading value reduced to N4.4 billion from N4.7 billion, while the number of deals slipped to 2,942 from 3,375 at the close of trading activities.
Banking stocks continued to dominate the activity chart, while Access Bank was the most traded equity after transacting 80.5 million units valued at N622.9 million.
GTBank traded 76.5 million shares worth N2.3 billion, UBA exchanged 24.9 million equities for N174.4 million, FBN Holdings traded 24.4 million stocks worth N149.2 million, while Zenith Bank transacted 19.6 million shares valued at N409.3 million.
Weekly Forex Turnover at I&E Skyrockets to $1.1bn
By Sodeinde Temidayo David
In one week, the total value of transactions recorded at the Investors and Exporters (I&E) window of the foreign exchange (forex) market in Nigeria rose to $1.1 billion.
Data obtained by Business Post from the FMDQ Securities Exchange showed that the weekly forex turnover at the I&E was 18.73 per cent or $183.56 million higher than the $980.1 million recorded a week earlier.
The FMDQ exchange, which tracks trades on the Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) platform, revealed that the significant spike in the value of the transactions was due to the high FX demand last Friday, a day after the Naira depreciated against the United States Dollar to an all-time low of N422.07/$1, triggering panic at the FX window.
At the first trading session of last week, the turnover was $184.3 million and the next day, it dropped to $153.4 million before skyrocketing to $306.8 million on Wednesday and the next day, the turnover went down to $141.9 million before jumping to $337.3 million due to decision of investors to quickly pull out their funds as a result of comments by Vice President Yemi Osinbajo interpreted to mean he was in full support of the devaluation of the local currency so as to allow it get its true market value.
As for the performance of the Naira against the US dollar at the investors’ window in the week, it depreciated by 0.2 per cent or 77 kobo week-on-week to N415.07/$1 from N414.30/$1 in the preceding week.
The weakening of the local currency at the FX market window must have been caused by the rise in the demand for forex experienced at the mid-week and the last trading session as well as the shortage supply of forex to traders to meet the demands of their customers.
It was gathered that last Monday, the domestic currency traded at N414.40/$1 at the I&E segment and appreciated to N414.30/$1 on Tuesday.
At the midweek session, it fell to N415.10/$1 and the next day, it dropped to an all-time low of N422.07/$1 before bouncing back to close at N415.07/$1 last Friday.
Also at the interbank segment of the market, the Nigerian currency lost 0.02 per cent or 10 kobo week-on-week against the American Dollar to trade at N410.91/$1 versus the previous week’s N410.81/$1.
CBN Adds New Feature to Yet-to-be-Launched eNaira
By Sodeinde Temidayo David
The Central Bank of Nigeria (CBN) has announced that the yet-to-be-launched eNaira will have a new add-on that will enable users to complete transactions with mobile phones without Internet capability.
The apex bank, in a document titled Design paper for the eNaira, disclosed that maximising the value and use cases of the nation’s digital currency would depend largely on devices with Internet capabilities.
A few months ago, the CBN said it would launch eNaira on October 1, 2021, but it later suspended this without giving a new date for the unveiling.
This digital currency, which is expected to promote the cashless policy, is expected to become operational after the central bank stopped the trading of unregulated digital currencies in the country like Bitcoin, Ethereum and others.
The eNaira is to be introduced into the country under the Central Bank Digital Currency (CBDC), an electronic record or digital token of the local currency and is to be issued and regulated by the monetary authority.
Given the reason, the CBN noted that, “The eNaira thus risks further alienating sections of the population who are uneducated, lack exposure and access to internet services or digital devices.”
The apex bank is adding the new feature to the eNaira following a recent publication that estimated that 35 per cent or about 37.1 million of the nation’s adult population was illiterate.
To face the risk of losing adoption of the digital currency to this segment of the population, the CBN added that the bank has factored in the need for inclusiveness as part of the core design principle of the eNaira.
According to the central bank, this principle has enabled the bank to focus on simplicity and ease on the use of the e-Naira, to ensure that Nigerians without Internet-enabled phones can access the digital service.
The CBN said the eNaira would complement existing payment options available via the mobile banking apps, Point of Sale (POS) terminals, Unstructured Supplementary Service Data (USSD), quick response code and Internet banking, among other channels.
GSMA, a global industry organisation that represents the interests of mobile network operators, had said in a recent report that 19 per cent of people living in Nigeria do not have access to mobile broadband coverage.
In its design paper, the central bank, in a bid to ensure inclusive access while also ensuring the integrity of the financial system, has chosen the account-based CBDC model for the eNaira.
The CBN said, “The account-based CBDC model at its core mirrors the progress made on the National Financial Inclusion Strategy which enables access to financial services by leveraging last-mile networks to identify users and to provide banking services through channels such as PoS and USSD.
“With the account-based model, the CBN seeks to enable access by leveraging the existing identity infrastructure in Nigeria such as the BVN, NIN, TIN, etc., to uniquely identify individuals and corporate entities.
“Specifically, identity frameworks such as the NIN will enable access for the financially excluded as they can be uniquely identified, thereby enabling the provision of financial services. These identity systems will help ensure a robust KYC framework positioned to enable access for all Nigerians.”
The CBN also added that this would help improve cross-border payments and address issues of dollarisation of the economy, as it could be recalled that Visa, a payments company, recently noted that the ease of operating CBDCs would determine the success of digital currencies.
Nigerian Exporters Fail Due to Poor Training, Exposure—NEPC
By Ashemiriogwa Emmanuel
The Nigerian Export Promotion Council (NEPC) has revealed that many Nigerian exporters, including women entrepreneurs, fail in the international market as a result of poor training and exposure to the business.
According to the federal agency, it is necessary for anyone who wants to venture and succeed in the business to undergo adequate training in order to grasp the scope of the competitive venture.
The Executive Director/CEO of the NEPC, Mr Olusegun Awolowo, disclosed this at a capacity building workshop organized for women-owned businesses in the non-oil export value chain in Akure, Ondo State on Friday, October 15
Speaking at the event, which was organised by the Export Development and Incentive Department of the NEPC, Mr Awolowo said that, “Lack of export market training is one of the major reasons Nigerian exporters fail in the international market.
“Exporters need to learn the specific requirements of the target markets as well as the certification needed for the product to be exported.”
Represented by the Head/Trade Promotion Advisor at NEPC Akure, Mr Macpherson Fred-Ileogben, the agency’s head noted that it was for this reason that the council decided to organise the workshop.
The training featured coaching and networking sessions to give women entrepreneurs the opportunity to improve their knowledge of competitiveness in the export market.
He cited that the involvement of women in trade will not only promote gender equality but also increase the growth potential of the nation.
As a result of the gradual recovery from the global pandemic, players in the non-oil exporting business into the international market have been tasked to think outside the box to ensure continuity.
To realize this, it would be recalled that the agency also organized a sensitisation workshop in Lagos in September 2021 which was themed Earn Dollars by Selling on Amazon to help stakeholders see the opportunities in leveraging e-commerce.
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