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Value of Equities on NASD Exchange Rises by 2.78% in One Week



NASD Exchange bullish

By Adedapo Adesanya

The value of securities on the NASD Over-the-Counter (OTC) Securities Exchange increased by 2.78 per cent last week as a result of the growth recorded by four companies on the trading platform.

These firms were Central Securities Clearing Systems (CSCS) Plc, FrieslandCampina WAMCO Nigeria Plc, Nipco Plc, and Niger Delta Exploration and Production (NDEP) Plc.

On the part of NIPCO, it gained 10.00 per cent to close the week at N73.70 per unit compared with the previous N67 per unit. Friesland appreciated by 5.90 per cent to finish the week at N128.50 per unit in contrast to the previous N121.23 per cent.

In addition, CSCS improved by 5.90 per cent to settle at N18.56 per share as against the previous N17.53 per share, while NDEP gained 2.60 per cent to sell for N300 per share versus the preceding week’s N292.48 per share.

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These stocks expanded the value of the exchange by N14.87 billion last week to N549.61 billion from N534.74 billion and increased the NASD Unlisted Securities Index (NSI) by 20.92 points to 773.22 points from the previous 752.30 points.

Despite the gains, the NASD Exchange witnessed a price decliner and this was the Nigerian Exchange Group Plc, which dropped 1.80 per cent to trade at N20.80 per unit compared with N21.17 per unit of the earlier week.

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In the 22nd trading week of the year, there was a 70.2 per cent decrease in the total value of securities transacted by investors as shares worth N22.2 million exchanged hands in contrast to N744. 3 million of the previous week.

In the same vein, the volume of shares traded by the market participants went down by 26.3 per cent to 12.5 million units from 24.8 million units of the previous week.

Likewise, there was a 13.7 per cent decline in the number of deals as 202 deals were executed compared with the 234 deals of the preceding week.

At the close of the week, NGX Group was the most traded securities by volume with 8.1 million units. Lighthouse Financial Services Plc traded 3.4 million units, CSCS Plc exchanged 461,085 units, Friesland transacted 109,875 units, while Nipco Plc traded 100,000 units.

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In terms of the value of trades in the week, NGX Group topped with N164.9 million, NDEP Plc traded N14.6 million, Friesland posted N13.1 million, Nipco Plc recorded N8.4 million, while Nipco Plc had N7.4 million.

So far in the year, investors have traded a total of 368,556,255 securities worth N8.1 billion in 2076 deals, according to data obtained by Business Post.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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SEC Introduces Regulatory Incubation Program for Fintechs




By Modupe Gbadeyanka

A regulatory incubation (RI) program for financial technology (fintech) companies operating or seeking to operate in Nigeria has been introduced by the Securities and Exchange Commission (SEC).

A circular issued by SEC disclosed that this framework would be officially launched in the third quarter of 2021 and will operate by admitting identified Fintech business models and processes in cohorts for a one-year period.

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Participation in the RI program will encompass an Initial Assessment Phase and the Regulatory Incubation Phase.

The categories to be admitted into each cohort will be determined based on submissions received through the Fintech Assessment Form and communicated ahead of each take-off date.

SEC explained that the scheme was designed to address the needs of new business models and processes that require regulatory authorisation to continue carrying out full or ancillary technology-driven capital market activities.

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The RI Program has thus been conceived as an interim measure to aid the evolution of effective regulation which accommodates the innovation by fintechs without compromising market integrity and within limits that ensure investor protection.

It was disclosed that review of completed Fintech Assessment Forms will continue on an ongoing basis and those who consider that there is no specific regulation governing their business models or who require clarity on the appropriate regulatory regime for seeking the authorisation of the commission, are encouraged to complete the Fintech Assessment Form.

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NGX Suspends Trading on GTBank Shares Ahead of Delisting



GTBank Branch

By Dipo Olowookere

In preparation for the eventual delisting of shares of Guaranty Trust Bank (GTBank) Plc from its trading platform, the Nigerian Exchange (NGX) Limited on Friday, June 18, 2021, placed the banking stock on a full suspension.

GTBank, a tier-one lender trading its equities on the exchange, intends to transform into a financial holding company (Holdco) so as to offer a wide range of services it is restricted to do.

Some years ago, the Central Bank of Nigeria (CBN) directed banks in the country to offload their subsidiaries not performing core lending services.

This was after many deposit money banks (DMBs) were delving into different business ventures, including insurance, stockbroking, asset management, amongst others.

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For the CBN, which regulates the banking industry in Nigeria, most of these banks were losing focus and were not supporting businesses that need funds to grow and then stimulate the economy in the process.

To address this issue, the apex bank asked banks to sell off their non-banking assets and this forced many of them to offload their companies not offering core banking services.

However, there was an opening for banks to still delve into other sectors within the financial and capital markets and this was by operating as a Holdco.

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A few of them towed this path, including FBN Holdings, Stanbic IBTC Holdings and FCMB Group.

Not wanting to be left out, GTBank is joining the party and to achieve this, it is delisting its banking arm, which is the popular GTBank from the stock exchange.

GTBank will now operate as a private company, while the new Holdco, Guaranty Trust Holding Company Plc, will now be a public company. The shares of this new firm will be listed on the NGX after the delisting of GTBank.

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Last Friday, the stock exchange informed the investing community of the latest development, announcing the suspension of trading on GTBank shares.

In the circular sighted by Business Post, the NGX explained that the rationale behind placing GTBank stocks on full suspension is to “prevent trading in the shares of the bank” in preparation of its “eventual delisting”

Before trading on its stocks was suspended on Friday, GTBank closed at N28.55 on Thursday after appreciating by 50 kobo or 1.78 per cent.

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DLM Capital Remains Best Structured Finance & Securitization Team in West Africa



DLM Capital

A prominent developmental investment bank, DLM Capital Group, has emerged winner at the Capital Finance International (CFI) 2021 awards as the best-structured finance and securitization team in West Africa.

This award has been won consecutively in three years and affirms the group’s strong performance as a leading investment institution and asset manager.

CFI awards seek to identify the contributions of individuals and organizations that contribute significantly to the advancement of economies and truly add value for all stakeholders.

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DLM Capital Group creates bespoke business solutions for alternative financing and harnessing funds for growth.

The group focuses on four key sectors — consumer credit, agriculture, microfinance, and education with a mandate to reduce poverty and improve living conditions for Africans while mobilizing resources for the continent’s economic and social development.

“In the past three years, our portfolio management team’s performance has remained consistent, and our clients have benefited immensely from exposure to our solutions, including the NMRC securitization deal and the DLM Primero BRT Securitization,” said Head of Corporate Communications and Marketing, DLM Capital Group, Ms Chinwendu Ohakpougwu.

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“We are positioned to provide services to an expansive client base of retail, high net-worth and institutional customers.

“DLM Capital Group remains committed to constantly providing financial solutions that will enable our clients to make a difference, and we are honoured to be recognized once again as a reflection of the quality of support offered to our clients,” she added.

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DLM has won recognition in West African capital markets, acting as a sole arranger to over 80 per cent of structured finance transactions in Nigeria — and all the securitization transactions. It provides deal structuring, advisory execution and capital raising services across the Nigerian capital market.

The institution recently launched an asset financing scheme and is preparing a venture into digital banking under its subsidiary, Sofri.

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