Economy
Stock Market: New Pricing Rule Favours Domestic Investors—Experts
By Dipo Olowookere
The recently introduced pricing methodology by the Nigerian Stock Exchange (NSE) has been described by experts as a tool that has favoured domestic investors by increased their participation in the stock market.
According to the Head of Banking and Finance Department at the Nasarawa State University Keffi, Dr Uche Uwaleke, has given local investors the opportunity to be more involved in the capital market because they can now pull volume with penny stocks trading below the former 50 kobo per share threshold.
“Unlike foreign investors who show more interest in high-cap stocks, a good number of domestic investors take positions in penny stocks given their affordability,” Mr Uwaleke told the News Agency of Nigeria (NAN) n Lagos.
The university don was reacting to the price depreciation posted by many penny stocks last month which had Consolidated Hallmark emerging the worst performing stock in percentage terms.
The stock opened trading in February at 50k, but lost 48 percent to close for the month at 26k per share, due to exchange new pricing method.
Mr Uwaleke said the new pricing methodology led to losses posted by most penny stocks.
“It is the new pricing methodology that has injected liquidity into those penny stocks which allowed their prices to fall below 50k,” he said.
The lecturer further said the new method was aimed at improving liquidity, narrowing spreads and ensuring that all price-improving transactions had impact.
He said that the new rule would effectively remove the previous rule which placed minimum allowable price for any stock to trade at its nominal value, irrespective of the market forces.
According to him, it specifies that stock prices will be determined by market forces of demand and supply, as prices can fall below the initial price.
On his part, Mr Ambrose Omordion, the Chief Operating Officer of InvestData Ltd, also attributed the development to the new pricing rule.
Omordion added that the losses posted by some second tier banking stocks were due to profit-taking following rally posted at the beginning of the year.
Data obtained from the NSE showed that Unic Diversified Holdings, another penny stock, came second last month after dropping by 47.83 percent to close at 24k per share against opening price of 46k.
Courtville Business Solutions dipped 46 percent to close at 27k against 50k, while Multiverse Resources lost 37.5 percent to close the month at 30k per share compared with the opening price of 48k.
Other top losers were Skye Bank, which dipped by 34.01 percent to close at 97k against N1.47k in January, while Wema Bank lost 32.65 percent, having closed at 99k in contrast with N1.47k.
Diamond Bank dropped 26.10 percent to close at N2.35k against N3.18k, while Unitykap lost 26 percent to close at 37k against the opening price of 50k.
Lasaco Insurance declined by 21.43 percent to close at 33k against 43k in January, while Royal Exchange lost 21.43 percent to close at 33k per share against 42k opening price.
Conversely, Linkage Assurance was the best performing stock in percentage terms, appreciating by 24.64 percent to close at 86k per share against the opening price of 69k.
Unity Bank trailed with a growth of 17.11 percent to close at N1.78k in contrast with N1.52k in January, while NEM Insurance rose by 16.02 percent to close at N2.10k per share against N1.81k.
Other top gainers were Beta Glass, 15.64 percent; Unilever,15.06 percent; CCNN, 11.27 percent; Transnation Express, 11.11 percent; Prestige Assurance, 10.87 percent; GSK, 10.53 percent; and AIICO Insurance, 10.29 percent.
During the month, the NSE All-Share Index lost 1,013.11 points or 2.28 percent to close at 43,330.54 against 44,343.65 achieved in January.
Also, the market capitalisation which opened at N15.895 trillion shed N146 billion or 2.18 percent to close the month at N15.549 trillion.
The volume of shares traded dipped by 44.96 percent as investors bought and sold 11.95 billion shares worth N106. 08 billion achieved in 112,255 deals.
This was in contrast with January turnover of 21.71 billion shares valued at N197.22 billion traded in 168.649 deals.
By Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc kept the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.04 per cent on Friday, July 16.
The securities depository company added N2.50 to its share price to settle at N95.14 per unit from the preceding session’s N92.64 per unit.
However, FrieslandCampina Wamco Nigeria Plc slid during the session by N5.85 to N141.81 per share from N147.66 per share.
But when the bourse closed for the day, the market capitalisation increased by N1.08 billion to N2.593 trillion from N2.592 trillion, while the NASD Security Index (NSI) appreciated by 1.80 points to 4,320.67 points from 4,318.87 points.
During the session, the value of securities slid by 38.9 per cent to N63.5 million from N104.1 million, the volume of securities went down by 34.5 per cent to 1.2 million units from 4.8 million units, and the number of deals declined by 15.4 per cent to 33 deals from 39 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 75.4 million units traded for N5.3 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
