Economy
Stocks Shed N98bn as Risk-off Sentiments Sway Market
By Dipo Olowookere
The nation’s equity market further depreciated on Thursday as risk-off sentiments continue to sway the movement of the exchange as investors trim their portfolios to reduce their exposure.
Yesterday, sell-offs in Dangote Cement and 20 other stocks ensured that the Nigerian Exchange (NGX) Limited closed lower by 0.49 per cent as the market await a positive trigger that will bring back the bulls.
Business Post reports that apart from the consumer goods index, which closed 0.13 per cent higher, every other sector closed bearish, with the energy losing 1.11 per cent.
The industrial goods counter depreciated by 1.07 per cent, the banking space declined by 0.36 per cent, while the insurance index went down by 0.25 per cent.
By the time the market was closed for the day, the All-Share Index (ASI) was down by 189.10 points to 38,044.58 points from 38,233.68 points, while the market capitalisation was down by N98 billion to N19.830 trillion from N19.928 trillion.
The heaviest loss on Thursday was suffered by Sovereign Trust Insurance as its value went down by 10.00 per cent to 27 kobo.
ABC Transport depreciated by 8.11 per cent to 34 kobo, Academy Press lost 7.69 per cent to close at 36 kobo, Royal Exchange declined by 6.33 per cent to 74 kobo, while Coronation Insurance dropped 5.66 per cent to settle at 50 kobo.
On the flip side, Mutual Benefits Assurance led the group of 16 price gainers yesterday after its equity price rose by 7.32 per cent to 44 kobo.
Cutix gained 7.14 per cent to trade at N2.25, Regency Alliance Insurance improved by 7.14 per cent to 45 kobo, Consolidated Hallmark Insurance gained 6.35 per cent to sell for 67 kobo, while Champion Breweries appreciated by 6.00 per cent to N2.12.
The most traded stock of the day was Sovereign Trust Insurance as it sold 27.2 million stocks valued at N7.8 million and was trailed by Mutual Benefits Assurance, which traded 17.2 million equities worth N7.1 million.
UAC Nigeria transacted 15.7 million shares for N174.3 million, Transcorp exchanged 12.5 million stocks worth N10.8 million, while Sterling Bank traded 12.2 million equities valued at N20.1 million.
At the close of transactions, a total of 214.2 million shares worth N1.3 billion were traded in 3,565 deals in contrast to the 203.1 million stocks worth N1.8 billion transacted in 3,594 deals at the midweek session, signifying a 5.46 per cent rise in the trading volume, a 26.37 per cent decline in the trading value and a 0.81 per cent drop in the number of deals.
By Adedapo Adesanya
The Independent Petroleum Manufacturers Association of Nigeria (IPMAN) has advised Nigerians to begin to look into the direction of Compressed Natural Gas (CNG) as an alternative energy source to cushion the effect of subsidy removal.
The National President of IPMAN, Mr Chinedu Okorokwo, made this known in an interview with the News Agency of Nigeria (NAN) in Abuja on Wednesday, as the federal government continues its dialogue with the organised labour over the hike in the price of premium motor spirit (PMS), otherwise known as petrol.
On May 29, 2023, during his inaugural speech, President Bola Tinubu said the payment of subsidy for fuel had ended because there was no provision for it in the 2023 budget beyond June 30.
His announcement triggered the hoarding of fuel by marketers, and when the Nigerian National Petroleum Company (NNPC) Limited increased the price of the product across its retail outlets, prices of food, transportation and services went up, forcing the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to threaten a nationwide strike, which was supposed to start today but was stopped by the National Industrial Court.
At a meeting on Monday night between the government and the labour unions, it was agreed that the adoption of CNG as an alternative fuel would be the best option, and it was agreed that the CNG conversion programme earlier planned in 2021 should be revived.
CNG, which is a gas mainly composed of methane and produces less emission, is the cleanest burning fuel operating today with less vehicle maintenance and longer engine life.
In the interview with NAN, Mr Okoronkwo said bringing CNG, which was cheaper than even firewood, as an alternative energy, would create relief for the government and its citizens.
“We have also discovered that bringing an alternative that is cheaper than even firewood which is CNG, will not only create relief for the government and its citizens but it is environmentally friendly.
“The CNG is abundantly available in Nigeria than anywhere in Africa.
“In the Niger Delta region, you see billions of tonnes of gas flare being wasted daily, these are huge amounts that should be accruing to our GDP, but we are wasting it because there is no market for it.
“So, we are asking the government to create the market. How do you create the market?
“What Egypt and India did was to give soft loans to be paid back within stipulated periods; from there, you can get vehicles to use gas instead of fuel,” he said.
“There’s a franchise for the bottling of CNG so that an average woman in the kitchen can use it,’’ he added, noting that the introduction of CNG would cushion the effect occasioned by the high price of fuel currently as a litre of CNG would not cost more than N130.
He advised that repairing the local refineries as well would reduce the impact of the removal as it would eliminate the cost of importation and exportation.
By Modupe Gbadeyanka
The National Bureau of Statistics (NBS) has disclosed that Nigeria’s tax to Gross Domestic Product (GDP) ratio has been upwardly reviewed to 10.86 per cent from the 6 per cent earlier reported to reflect better data sources and improved estimation using the Organisation for Economic Co-operation and Development (OECD) manual.
The OECD manual is an improvement over the System of National Accounts (SNA 2008) classification of taxes.
Although the System of National Accounts conceptual framework and its definitions of the various sectors of the economy are reflected in the OECD’s classification of taxes, the OECD classifications provide the maximum disaggregation of statistical data on what is generally regarded as taxes by tax administrations.
In a disclosure, the statistics office said the country’s total tax revenue compared with its GDP was at that level in 2021, higher than 8.40 per cent in 2020, which was impacted by the COVID-19 pandemic.
In the previous year, the ratio was 10.20 per cent, marginally lower than the 10.36 per cent recorded in 2018 but higher than the 9.02 per cent in 2017.
The NBS said the revised computation considered more comprehensive coverage of data at the federal, state, and local government levels and revenue items not previously included in the computations, particularly relevant revenue collected by other government agencies.
The review of the tax-to-GDP ratio was initiated by the Federal Inland Revenue Service, which collaborated with the Federal Ministry of Finance and the NBS for better measurement of the ratio.
The data used were sourced from the Office of the Accountant General of the Federation (OAGF), FIRS, NBS, the Nigeria Customs Service (NCS), the Joint Tax Board (JTB), and other relevant agencies of government that collect revenue.
By Adedapo Adesanya
VFD Group Plc has announced its intention to list its shares on the Nigerian Exchange Group (NGX) after leaving the NASD Over-the-Counter Securities Exchange, where it has been trading its stocks for the past three years.
This development, according to analysts, is a strategic move that would allow the company to gain access to public equity markets, increase its visibility, and strengthen its financial position.
VFD Group Plc is a leading proprietary investment company with a proven track record of generating attractive returns for its investors through a variety of investment strategies.
The company has a diverse portfolio of investments in various sectors, including banking, technology, media, energy, and real estate. The group has been listed on the NASD OTC Securities Exchange since 2020.
Speaking on this big step, Mr Nonso Okpala, Group Managing Director of VFD Group, stated, “We are excited to take this next step in the evolution of our company.”
“Listing on a major stock exchange will give us access to a larger pool of investors, enhance our profile, and provide superior returns to our investors,” he added.
With the intention of listing on the NGX, the company will delist from the NASD and is subject to regulatory approvals and market conditions.
VFD Group noted that it would provide additional updates as the listing process progresses.
At the close of business on Tuesday, the securities of the organisation closed on the NASD OTC exchange at N244.88 per unit, the same rate they finished in the preceding trading session.
Business Post reports that the NASD was created to provide an avenue for public companies to transition smoothly into the country’s main stock exchange.
However, it has witnessed the movement of firms from the NGX to the NASD, especially due to the very strict regulatory requirements by the former.
