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Stock Market to Remain Bearish on Political Uncertainty, Declining Oil Prices



Nigerian Stock Market

By Dipo Olowookere

The Nigerian stock market is anticipated to remain rooted in the red territory this week, some financial analysts have predicted.

Last week, as a result of sell offs, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) finished 2.54 percent lower at 30,874.17 points, with the market capitalisation reducing by N293.69 billion to settle at N11.272 trillion.

The local bourse pointed south in four of the five trading sessions last week, with the only gain, a 0.86 percent growth, recorded on Friday.

Investor sentiment weakened in the week with 23 stocks advancing stocks and 39 declining equities, while Continental Reinsurance emerged as the best performing stock after 33.3 percent week-on-week rise, with Diamond Bank closing as the worst performing stock after a w-o-w loss of 31.6 percent.

As investors prepare for this trading week, analysts at Lagos-based Cowry Asset said, “We expect the NSE ASI to close in red territory as bearish activity lingers amid higher interest rate environment, both home and abroad, and declining global crude oil prices.

“Speculators are expected to continue scrapping the market for short term gains as valuations and dividend yields remain attractive.”

Re-echoing this sentiment are analysts at Afrinvest, who opined that, “We expect to see some bargain hunting in early trades [this] week.

“However, we do not expect this to be sustained all through the week as the overall bearish sentiment, stoked by political uncertainty, is expected to weigh on market performance. Thus, we maintain our bearish outlook over the near-term.”

For analysts at Business Post, “The effect of foreign portfolio investors exiting the market will continue to weigh on the local bourse.

“We do not see the benchmark index closing green, though we expect some institutional investors to use the opportunity of the low valuation of stocks at the moment to re-enter the market.”

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

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Popoola Advocates Increase in Long-term Sustainable Finance



Sustainable Finance Market

By Aduragbemi Omiyale

To achieve the Sustainable Development Goals (SDGs) in Sub-Saharan Africa, there must be an increase in long-term sustainable finance.

This is the submission of the Chief Executive Officer of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, at the CEO Breakfast Roundtable hosted by United Nations Global Compact Network Nigeria.

He said the NGX has always provided its platform for the growth of sustainable finance in Nigeria by developing the nation’s green bond market.

“The NGX has over the years played a leading role in developing financial instruments that address sustainable development and promote financial inclusion in the Nigerian capital market.

“In recognition of Nigeria’s climate finance needs and the urgent action required to combat climate change as enshrined in the Paris Agreement on Climate Change, the exchange, in 2016, championed efforts along with government and industry stakeholders that culminated in the issuance of the maiden N10.69 billion (c. $25.8 million) 13.48% 5-year green bond in 2017.

“The exchange also played a leading role in promoting the development and issuance of the Federal Government of Nigeria (FGN) Ijarah Sukuk which has proven to be a highly attractive instrument that supports inclusion from Nigeria’s ethical investors and sharia-compliant investors who have a stronger preference for non-interest-based instruments,” Mr Popoola stated.

He further disclosed that the bourse is collaborating with other organisations like the International Finance Corporation (IFC) to build the capacity of potential green bond issuers in Nigeria.

“NGX has partnered with IFC to train issuers and market operators on the issuance of sustainable financial instruments.

“Through the training, NGX and IFC shared best practices in sustainable finance issuance, and educated potential issuers on the unique characteristics of green social and sustainable bonds, the specific advantages of each instrument, as well as the detailed step-by-step process for issuing these instruments,” the capital market expert said.

He said the NGX remains “committed to fostering the growth of sustainable financial products that integrate the financial risks and help issuers leverage the opportunities associated with the SDGs, the fight against climate change.”

Mr Popoola commended the United Nations Global Compact on the recent launch of the Africa Strategy and encouraged private sector leaders to support the initiative.

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FG to Announce New Date for Postponed FAAC Meeting for May 2022



FAAC meeting allocation

By Aduragbemi Omiyale

The federal government has said it would announce a new date for the Federation Account Allocation Committee (FAAC) meeting for this month, which was shelved in a circular on Wednesday.

On Wednesday, the Ministry of Finance, Budget and National Planning released a statement to announce the postponement of the FAAC Meeting for May 2022 over certain circumstances connected with the arrest of the Accountant General of the Federation (AGF), Mr Ahmed Idris.

Mr Idris, who is a key member of the FAAC team, is cooling off in the custody of the agency over an alleged N80 billion fraud. He is helping the EFCC in its investigation into the issue.

As a result of his arrest and suspension from office by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, the meeting for this month was shelved.

In the circular signed by the Director of Home Finance at the Ministry, Mr Stephen Okon, the federal government assured that “the new date for the meetings will be forwarded to you in due course.”

The gathering, which is held to share revenue generated by the country in the previous month to the three tiers of government; federal, states and local governments, was earlier slated to take place this month on Wednesday, May 18 and Thursday, May 19, 2022.

But Mr Okon stated in the notice that, “I am directed to inform you that the Federation Account Allocation Committee (FAAC) meetings earlier scheduled to hold virtually on the 18th and 19th May 2022 have been postponed due to certain circumstances.”

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Bulls Return to Unlisted Securities Market on 0.21% Growth



Unlisted Securities Market

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange welcomed the bulls back into its fold on Thursday following a 0.21 per cent growth at the close of business.

The bulls were at the unlisted securities market yesterday at the invitation of Niger Delta Exploration and Production (NDEP) and Food Concepts Plc, which recorded price appreciations during the session.

NDEP Plc gained N10 or 4.6 per cent to close at N220.00 per share as against the N210.00 it closed at the last session, while Food Concepts Plc appreciated by 6 kobo or 6.5 per cent to close at 93 kobo per unit compared with 87 kobo per unit of the previous session.

The gains reported by the duo expanded the NASD unlisted securities index (NSI) by 1.66 points to 808.79 points from 807.12 points and equally increased the market capitalisation by N2.17 billion to N1.06 trillion from N1.05 billion.

At the market yesterday, the trading volume rose by 17,545.7 per cent as a total of 20.0 million units of shares exchanged hands compared with the 113,500 units of shares transacted on Wednesday.

In the same vein, the trading value rose by 749.3 per cent to N24.4 million from the previous day’s N2.9 million, while the number of trades went down by 28.6 per cent to five deals from seven deals.

AG Mortgage Bank Plc remained the most traded stock by volume on a year-to-date basis with 2.3 billion units valued at N1.2 billion, Central Securities Clearing System (CSCS) Plc stood in second place with 661.7 million units worth N13.9 billion, while Food Concepts Plc was in third place with 134.0 million units valued at N114.9 million.

In the same vein, CSCS Plc ended the session as the most active stock by value on a year-to-date basis with 661.7 million units worth N13.9 billion, VFD Group was in second place with 9.4 million units valued at N2.9 billion, while AG Mortgage Bank Plc in third place has transacted 2.3 billion units valued at N1.2 billion.

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