The market capitalisation of the Nigerian Exchange Ltd (NGX) dropped by N655 billion, following the hike in the nation’s inflation rate to 20.77 per cent.
The News of Nigeria reports that the National Bureau of Statistics (NBS) on Monday announced the inflation rate for September, standing at 20.77 per cent as against 20.5 per cent in August.
The market capitalisation lost N656 billion or 2.53 per cent to close at N25.254 trillion from N25.909 trillion recorded on Friday.
Similarly, the All Share Index (ASI) decreased by 1,203.09 basis points or 2.53 per cent to close at 46,365.95 basis points compared with 47, 569.04 posted on Friday.
The downturn was impacted by losses recorded in Airtel Africa Plc. Similarly, the stock market’s weak performance was driven by selloffs in Airtel Africa, depreciating by 10 per cent.
Analysts at United Capital Plc said bargain hunting would continue as investors looked forward to the third quarter ended September, thus cherry-picking stocks with great underlying fundamentals.
“However, we maintain that the broader equities market will remain in a lull pending the release of Q3, 2022 results,” United Capital said.
However, market breadth closed positive, with 14 gainers versus five losers.
PZ Cussons Nigeria recorded the highest price gain of 9.52 per cent to close at N9.20, per share.
University Press followed with a gain 9.33 per cent to close at N1.64, while Courteville Business Solutions appreciated by 4.35 per cent to close at 48 kobo, per share.
Cutix went up by 3.50 per cent to close at N2.07, while Wapic Insurance appreciated by 2.86 per cent to close at 36 kobo, per share.
On the other hand, Airtel Africa led the losers’ chart by 10 per cent to close at N1,620.00, per share.
Sovereign Trust Insurance followed with a decline of 7.14 per cent to close at 26 kobo, while AIICO Insurance went down by 7.02 to close at 53 kobo, per share.
Dangote Sugar Refinery lost 2.80 per cent to close at N15.60, while Fidson Healthcare shed 2.51 per cent to close at N8.94, per share.
The total volume traded rose by 10.89 per cent to 137.983 million shares, worth N4.317 billion, and traded in 3,234 deals.
Transactions in the shares of Guaranty Trust Holding Company (GTCO) topped the activity chart with 33.715 million shares valued at N609.863 million.
Courteville Business Solutions followed with 26.138 million shares worth N12.545 million, while Fidelity Bank traded 19.980 million shares valued at N69.022 million.
Sterling Bank traded 8.930 million shares valued at N13.767 million, while United Bank for Africa (UBA) transacted 6.526 million shares worth N45 million.
Morgan Capital Securities Ltd. has projected that investments in equities across banking, consumer and industrial goods and other sectors would drive the performance of the Nigerian stock market in 2023 with a yield upwards of 25 per cent.
The company’s Managing Director, Mr Dipo Olomofe, said this in an interview with the News Agency of Nigeria on Friday in Lagos.
NAN reports that Morgan Capital Securities Ltd. offers banking and financial advisory services, stock broking, issuances, capital raise, investment portfolios, among others.
Olomofe said his projection was based on the bearish performance of the stock market at about 16 per cent and current price levels of equities, partly due electioneering ahead of next year’s general elections.
He stated that upon political stability after the 2023 general elections, investments in companies with strong fundamentals must experience capital appreciation and dividend returns.
He noted that global and local headwinds, the Russia-Ukraine war, increased Monetary Policy Rate (MPR) was currently affecting all sectors.
As a result, Olomofe said equity assets were under pressure with most of the assets currently underpriced.
“This period is a good entry point for investors due to the bottom fishing principles.
“This is the time to come in, buy now and be sure of capital appreciation upwards of 25 per cent post election in companies whose books have strong fundamentals such as banks and other blue chip companies.
“So, you are sure that if you invest now that the prices are low, after election, once there is a better and certain direction for the company, equity would be boosted, Foreign Direct Investment (FDI) would return seeing that the country’s political terrain has been de-risked,” he said.
Olomofe, also a fellow chartered accountant, suggested investments in fixed income, real estate and mutual fund to hedge against inflation and foreign exchange risks.
He said this was important because of the performance of the Naira in the parallel market due to the country’s depreciated foreign exchange earnings from lower oil exports and crude oil theft.
“We are saying that people should invest in dollar denominated instruments seeing that the value of the Naira has dropped in the parallel market and the country is not earning enough foreign exchange to defend the Naira.
“Even though the Central Bank of Nigeria (CBN) has brought measures to keep the foreign exchange in-house, the projection is that with the current exchange rate in the parallel market, depreciation would continue,” he said.
Olomofe charged businesses in the Micro, Small and Medium Enterprises (MSMEs) space to embrace investments in the capital market.
He urged investors to take advantage of the company’s iTrade platform that offered investors and buyers the opportunity to trade shares transparently via the NGX.
“The same way you buy car or a tangible asset is the same way you can buy financial assets such as equity in the capital market.
“This affords you the opportunity to be part owners of a company you buy shares in,” explained Olomofe.
Speaking on the 2023 budget, he noted that the country’s budget provided direction for the economy with regards to earnings, assets, sales and expenditure, but that activities of government by way of deficit financing impacted the capital markets.
He said government’s efforts to finance the budget deficit included the use of debts, treasury bills, and other tools provided opportunities for investors in the face of increased MPR.
This, he explained, would earn investors both their capitals and interests or coupons.
Trading on the Nigerian Exchange Ltd. (NGX) was bullish on Monday following investors’ interest in some medium and largely capitalised stocks.
Specifically, the market capitalisation garnered N116 billion or 0.45 per cent to close at N25.907 trillion from N25.791 trillion on Friday Also, the All-Share Index advanced by 214.49 points or 0.45 per cent to close at 47,565.92 against 47,351.43 achieved on Friday.
Accordingly, the year-to-date return increased to 11.35 per cent.
The upturn was impacted by gains by stocks, amongst which are: May and Baker, Access Holding, United Bank for Africa (UBA) and NGX Group.
The market breadth closed negative with 12 gainers in contrast with 15 laggards.
May and Baker led the gainers’ chart in percentage terms by 9.76 per cent to close at N4.05 per share.
Ikeja Hotel followed with a gain 9.73 per cent to close at N1.24, while BUA Cement appreciated by 8.65 per cent to close at N56.50 per share.
Conerstone rose by eight per cent to close at 54k, while Unity Bank appreciated by 7.32 per cent to close at 44k per share.
On the other hand, University Press led the losers’ chart in percentage terms by 8.70 per cent to close at 21k per share.
AXA Mansard Insurance followed with 8.74 per cent to close at N1.50, while Cadbury shed 6.94 per cent to close at N11.40 per share.
FTNCocoa lost 6.67 per cent to close at 28k per share.
Caverton Offshore Support Group depreciated by 5.94 per cent to close at 95k, while Cutix fell by 4.63 per cent to close at and N2.06 per share, respectively.
Transactions in the shares of Guaranty Trust Holding Company(GTCO) topped the activity chart with 38.87 million shares valued at N659.1 million.
FBN Holdings followed with 22.83 million shares worth N216.87 million, while Transcorp traded 9.61 million shares valued at N10.08 million.
NGX Group traded 6.28 million shares valued at N134.53 million, while Chams transacted 5.31 million shares worth N1.45 million.
In all, the total volume of shares traded increased by 8.47 per cent to 125.65 million shares worth N1.9 billion traded in 4,188 deals.
This was in contrast with 137.28 million shares valued at N1.71 billion transacted in 3,845 deals on Friday.
Geregu Power, a newly listed power generating company, said its revenue stood at N70.957 billion in the 2021 financial year.
The company said this in a corporate disclosure made available to the Nigerian Exchange Ltd., (NGX) on Tuesday.
According to it, the figure represents a 32.19 per cent increase when compared with N53.677 billion recorded in the 2020 financial year.
Its cost of sales grew by 21.98 per cent to N37.61 billion in 2021 from N30.84 billion posted in the same period of 2020. Gross profit stood at N33.34 billion in 2021 from N22.84 billion recorded in 2020, representing an increase of 45.97 per cent .
It recorded an operating profit of N29.523 billion in 2021 from N19.103 billion in 2020, representing an increase of 54.54 per cent.
The company’s finance income fell by 39.69 per cent to N948.064 million from N1.572 billion posted in 2020, while finance costs rose to N948.064 million in 2021 from N26.956 million in 2020, an increase of 3,459 per cent.
Profit before income tax rose to N29.512 billion, an increase of 42.93 per cent when compared to N20.649 billion in 2020. Also, the company paid N8.962 billion in company income tax in 2021 to report a final profit of N20.5 billion for the financial year ended 2021. Geregu power became the first power generating company to be listed on the Nigerian Exchange Ltd on Wednesday with 2.5 billion shares at N100 each.
The Board of the Nigerian Exchange Group (NGX Group) has appointed Dr Umaru Kwairanga as its new Chairman.
The group, in a statement on Thursday in Lagos, said that Kwairanga’s appointment was approved at a meeting on Wednesday.
Prior to his appointment as the substantive Chairman, Mr Apollos Ikpobe, a Non-Executive Director of the Group, was elected as the Acting Chairman on Sept. 30.According to the Group, the appointment of an acting chairman was done to ensure governance continues and allows for wider consultations before the appointment of a substantive successor to the erstwhile Chairman, Otunba Abimbola Ogunbanjo.
Ogunbanjo, announced his retirement at the 61st Annual General Meeting of the Group.
In keeping with good governance ethos, and to ensure continuity as well as institute an orderly succession plan for the Group, the Board also created the position of Vice Chairman and appointed Mr Oluwole Adeosun, a Non-Executive Director of NGX Group and current President of the Chartered Institute of Stockbrokers (CIS) to fill this position.
In his acceptance speech, Kwairanga said he would work assiduously with his colleagues on the Board to immediately stabilise relationships with all key stakeholders and set the Group on the path to a brighter future.
“I am very excited to lead the execution of our corporate strategy and deliver world-class governance to the Group.
“I appreciate the Board for the confidence in my abilities to deliver on our mandate for the shareholders of NGX Group.
“I would like to thank our erstwhile Chairman, Mr Abimbola Ogunbanjo and our outgoing Acting Chairman, Mr Apollos Ikpobe for their outstanding and diligent service to the company.
“I promise to continue to deliver in line with their set standard of execution and delivery,” he saidKwairanga, a thoroughbred capital market professional with excellent corporate governance pedigree, has 30 years of cognate experience in banking, pensions, manufacturing and commercial sectors.
He served previously as a Council Member of the then Nigerian Stock Exchange (NSE) and as member of the Board of Directors of NGX Group.
He is currently a council member of the Institute of Directors of Nigeria (IoD), and an active director of multiple listed and unlisted companies.
According to the Group Managing Executive Officer, NGX Group, Mr Oscar Onyema, the appointment of Kwairanga as the Group’s new Chairman is a positive step in the Group’s journey to delivering value to shareholders.
“As we move to execute our strategy aimed at maximising outcomes for our shareholders, we would count on Dr Kwairanga’s wealth of experience in making strategic board decisions,” Onyema said.
The outgoing Acting Chairman, Ikpobe, who retired from the Board effective Sept. 5, appreciated the Board for their cooperation during his tenure as both a director and his appointment as Acting Chairman.
“The past one year as a director on this noble board gave me the opportunity to actively contribute to the transformation process of NGX Group.
I trust that the board will continue to lead innovations in the Nigerian capital market as a values driven organisation,” he said.
The Nigerian Exchange Ltd., (NGX) on Thursday moved 140.67 million shares worth N2.52 billion in 4,371 deals as the indices declined by 3.23 per cent.
This was in contrast with 135.52 million shares valued N2.22 billion transacted in 4,041 deals on Wednesday.
Guaranty Trust Holding Company (GTCO) was the most active stock accounting for 27.73 million shares worth N471.49 million.
It was trailed by Sterling Bank with an account of 25.43 million shares valued at N39.04 million while Zenith Bank sold 14.4 million shares worth N276.45 million.
Transcorp traded 13.21 million shares valued N13.82 million and Geregu Power transacted 4.96 million shares worth N586.76 million.
The market capitalisation decreased by N859 billion or 3.23 per cent to N25.741 trillion from N26.6 trillion recorded on Wednesday.
Also, the All-Share Index (ASI) depreciated by 1,515.81 points to close at 47, 260.89 as against 48,836.70 achieved on Wednesday.
Geregu Power led the gainers table increasing by 9.91 per cent to close at N120.90 per share.
Livestock Feeds followed with a growth of 9.8 per cent to close at N1.12, while Cutix added by eight per cent to close at N2.16 per share.
NAHCO rose by 3.92 per cent to close at 53k, while First City Monument Bank appreciated by 3.83 per cent to close at N3.25 per share.
On the other hand, Airtel Africa topped the losers chart dropping by 10 per cent to close at N1,800 per share.
Presco trailed with a loss of 9.99 per cent to close at N128.35, while Okomu Oil dropped 9.98 per cent to close at N169.50 per share.
Honeywell Flour Mill was down by 8.06 per cent to close at N2.11, while Red Star Express dipped by 8.62 per cent to close at N8.02 per share
Trading closed on the floor of the Nigerian Exchange Ltd. (NGX) Wednesday with market capitalisation losing N227 billion or 0.09 per cent to close at N26.6 trillion from N26.373 trillion on Tuesday.
The All-Share Index (ASI) also lost 43.04 points or 0.09 per cent to close at 48,836.70 compared with 48,879.74 posted on Tuesday.
The market’s weak performance was driven primarily by extended selloffs in Tier-one banks such as Guaranty Trust Holding Company, (GTCO), FBN Holding, Zenith Bank and Access Holding.
Accordingly, the year-to-date returns moderated to 14.33 per cent.
However, the market closed negative with 12 gainers against 22 laggards.
Multiverse Mining and Exploration led the gainers’ chart in percentage terms by 9.88 per cent each to close at N4.45 per share.
Red Star Express followed with 9.43 per cent to close at N2.32, while Sovereign Trust Insurance was up by eight per cent to close at 27k per share.
Japaul Gold and Ventures rose by 7.69 per cent to close at 28k, while Consolidated Hallmark Insurance gained 7.55 per cent to close at 57k per share.
On the other hand, Cadbury led the losers’ chart in percentage terms by 9.93 per cent to close at N12.25k per share.
Northern Nigerian Flour Mills (NNFM) followed with 9.33 per cent to close at N6.80, while PZ lost 9.19 per cent to close at N8.40 per share.
Conerstone Insurance declined 8.93 per cent to close at 51k, while Unity Bank shed 6.82 per cent to close at 41k per share.
The total volume traded decreased by 22 per cent to 153.52 million units valued at N2.22 billion exchanged in 4,041 deals.
This was in contrast with 173.46 million shares worth N2.39 billion traded in 4,926 deals on Tuesday.
Transactions in the shares of Chams topped the activity chart with 25.497 million shares valued at N1.362 million.
Guaranty Trust Holding Company followed with 19.465 million shares worth N341.013 million, while Sterling Bank traded 9.944 million shares valued at N42.610 million.
Geregu Power traded 8.500 million shares valued at N275 million, while Transnational Corporation of Nigeria (Transcorp) transacted 7.155 million shares worth N42.174 million.
The Nigerian Exchange Ltd. (NGX) on Wednesday listed Geregu Power Plc on its main board with 2.5 billion ordinary shares at N100 per share under the utilities sector and electric power generation sub-sector of NGX.
The News Agency of Nigeria reports that Geregu Power, with the trading symbol, GEREGU, is a power generation company (GenCo), the first to be listed on the main board of the NGX.
The main board is a listing segment for well-established companies with demonstrable records of accomplishments.
The exchange said the listing of Geregu’s shares had added N250 billion to the market capitalisation of NGX, would further boost liquidity in the Nigerian capital market and provide opportunities for wealth creation.
Chairman, NGX, Mr Abubakar Mahmood, said, “We are particularly pleased that Geregu Power has joined the prestigious group of companies listed on our main board.
“This will differentiate it as a professionally run power company with high standards, having met NGX’s listing criteria.
“A main board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery, and providing increased returns to shareholders.
“It is our expectation that the Geregu Power listing will encourage other power generation and distribution companies to list their shares on the Exchange, thereby opening the sector up to cheaper, long-term capital that will boost infrastructural development and value creation.
” On his part, the Chief Executive Officer, NGX, Mr Temi Popoola, said, “Today’s listing is a promising development in the country’s power sector and we are delighted to welcome Geregu Power Plc to the Exchange.
“Having Geregu listed in our market is proof of NGX’s commitment to building a robust and inclusive market and creating avenues for sustainable investment.
“This listing will enhance liquidity for Geregu, increase its visibility among global investors, elevate its value and boost transparency, as our marketplace is a sterling platform for raising capital and enabling sustainable growth for national development.
“As a listing platform of choice, we are committed to working with companies at various stages of growth to explore the different opportunities in the capital market to meet their business objectives.
” Speaking on the listing, the Chairman, Board of Directors, Mr Femi Otedola, stated that, “the listing of the company was the actualisation of a vision to bring world-class standards in governance, sustainability, and business processes to the company and the Nigerian electricity sector.
” He added that “listing on the main board of the exchange would ensure that the long-term growth of the company is assured and its benefits would be passed on to our esteemed shareholders.
“The NGX continues to evolve to remain an attractive destination for issuers, meet the needs of our valued stakeholders and achieve the highest level of competitiveness.
The equity market recorded a loss of N78 billion or 0.29 per cent on Tuesday as market capitalisation closed at N26.373 trillion compared with N26.451 trillion posted on Friday.
Similarly, the All-Share Index dipped by 144.42 points or 0.29 per cent to close at 48, 879.74 from 49,024.16 recorded on Friday.
Selloffs in Tier-one banks such as Zenith Bank, Access Holding, FBN Holding and Guaranty Trust Holding Company (GTCO) were the primary drivers of the market’s weak performance.
As a result, the year-to-date (YTD) return fell to 14.43 per cent.
Analysts at Vetiva Securities Ltd. said, “We expect another mixed day of trading tomorrow, amid bargain hunting activities across board as investors continue to tread cautiously in the market.
” Overall there were nine gainers and 21 losers, with Multiverse Mining and Exploration leading the gainers’ chart with 9.76 per cent to close at N4.05 per share.
RTBriscoe followed with a rise of 8.82 per cent to close at 37k, while NGX Group gained by 7.5 per cent to close at N21.50 per share.
AIICO Insurance rose by 5.77 per cent to close 55k per share.
Africa Prudential appreciated by four per cent to close at N5.20. Conversely, International Breweries led the losers’ chat with a depreciation of 9.09 per cent to close at N4.50 per share.
Red Star Express declined by 7.83 per cent to close at N2.12, while Sovereign Trust Insurance went down by 7.41 per cent to close at 25k per share.
Japaul Gold and Ventures fell by 7.14 per cent to close at 26k per share.
Also, Consolidated Hallmark Insurance lost by 7.02 per cent to close at 53k per share.
A total of 125.95 million shares valued at N3.07 billion were exchanged in 4.145 deals.
GTCO recorded the highest volume of 17.19 million shares traded worth N1.26 billion.
Zenith Bank followed, having sold 14.39 million shares valued at N283.88million.
United Bank for Africa(UBA) traded 10.67 million shares worth N73.19 million, while NGX Group sold 8.35 million shares amounting to N173.92 million.
Also, Chams sold 6.78 million shares worth 1.87 million.
Some experts have said the Nigerian capital market made substantial contributions to the nation’s economic growth and national development since independence in 1960. They experts spoke in separate interviews with the News Agency of Nigeria on Saturday in Lagos, while reviewing the performance and evolution of the Nigerian capital market since independence.
Mr David Adonri, Executive Vice Chairman, HighCap Securities Ltd., said the capital market, since independence, had evolved in supporting the growth and helping in unlocking economic potential for government and the populace in creating wealth.
Citing how the market had been beneficial to the country, Adonri said the Federal Government had always financed its budget by raising capital through bonds from the Nigerian Exchange Ltd. (NGX).
According to him, the capital market has also taken advantage of technology in its daily processes to increase market efficiency and help companies to raise capital, while investors continued to enjoy appropriate returns on their investments.
Recalling how the capital market played a role during the indigenisation exercises of 1972 and 1978, he noted that the Exchange assisted Nigerians to buy over a lot of foreign enterprises, an opportunity they still enjoyed to date.
Adonri cited how the banking industry through the Exchange in 2005, achieved its recapitalisation exercise, which was mandated by the Central Bank of Nigeria (CBN), to shore up banks’ capital base from N2 billion to N25 billion.
In achieving the desired sustainable growth, the expert said the gap in economic performance needed to be addressed.
Adonri, however, noted that the Nigerian capital market had the potential to intervene in providing solution, especially in developing the foundational engineering infrastructure needed for industrialisation and ecological breakthrough.
Engineering infrastructure are facilities for various areas of activity servicing the economy and the population.
According to him, Nigeria currently lacks engineering infrastructure to enable the country produce the machinery and equipment required to develop Nigerian secondary infrastructure such as roads, rails, ports, hospitals, among others.
He listed the engineering infrastructure to comprise technical education, minning, metalogical and machine making and agriculture equipment.
“I expect that should be the area of focus for the capital market moving forward, so that Nigeria will acquire the engineering infrastructure needed for industrialisation and ecological breakthrough,” Adonri said.
Malam Garba Kurfi, Managing Director, APT Securities, coroborated Adonri’s view on how the capital market has faired so far.
Kurfi said the over N26 trillion market capitalisation of the NGX, currently above the national budget, showed how positively the market had grown over years.
He said, “Today, we are talking of N26 trillion market capitalisation.
it shows that the capital market gives Nigerians the opportunity to buy shares and own some companies for wealth creation.
“Today, we also have not just Airtel Nigeria, but Airtel Africa and this means that shareholders have their shares also in the African market.
Dangote Group has 17 companies and it shareholders have shares in all these companies.
“In the last 10 years, five companies which are Dangote Cement, Seplat, MTN, Airtel, BUA Foods, BUA Cement got listed on the Nigerian Exchange and contributed over 60 per cent of the market capitalisation.
” According to him, the percentage shows the confidence that Nigerians and the private sector have in the capital market and boosting companies’ willingness to get listed on the Exchange.
He said the capital market also assisted the Federal Inland Revenue Service (FIRS) in generating 50 per cent of its revenue from corporate tax paid by quoted companies.
Another positive development is Pension Fund that invested N14 trillion in the capital market through bonds and equities.
Kuffi said that might not have been possible without the support of the capital market.
The managing director, however, said the capital market could still do better, especially if compared with some of its counterparts in other countries.
“Our market capitalisation against Gross Domestic Product(GDP) is less than 10 per cent.
“New York Stock Exchange’s market capitalisation is over 100 per cent when compared to GDP of the U.
S and same with London’s as well as that of Johannesburg is more than 120 per cent of the South Africa GDP.
“However, ours is just 10 per cent because big companies like NNPC, NLG, among others, and even those in the power sector and the telcoms such as Glo, 9 Mobile and Nitel are not listed.
“Assuming all of them are listed on the exchange, our market capitalisation will go up.
Today we already ahead of the entire budget of Nigeria,” he added.