Archives May 2018

CSCS Records N4.9bn Profit, Pays 70 kobo Dividend

The Central Securities Clearing System (CSCS) Plc, the financial market infrastructure (FMI) arm for the Nigerian capital market, has announced a dividend of 70 kobo per share to shareholders for the year ended December 31, 2017.

The dividend, which amounts to N3.5 billion, was 233 per cent higher than the N1.05 billion paid out in 2016. Shareholders of the company approved the dividend at the 24th annual general meeting (AGM) in Lagos yesterday and commended the board and management for the improved performance.

Speaking on the 2017 financial results, chairman of CSCS Plc, Mr. Oscar Onyema, said despite the headwinds at the beginning of 2017, CSCS emerged with a strong performance for the year across all metrics.

According to him, at the end of the year, profit-before tax stood at N5.6 billion, from N3.72 billion in 2016, while profit after tax rose from N3.5 billion to N4.9 billion. Total assets stood at N32 billion compared with N27 billion in 2016.

“We attribute our performance to better economic macro story, the Investors’ and Exporters’ FX Window, our sound corporate governance model, focus on implementing strategic initiatives, skilled workforce and technology,” he said.

Onyema said in order to ensure competitiveness in the capital market and remain the foremost Central Securities Depository (CSD) in Africa, the company made significant investment in infrastructure by changing its core CSD platform, the Equator, to a more technologically advanced and state-of-the-art CSD platform, the TCS BaNCS .

Also speaking, the Managing Director/Chief Executive Officer, CSCS Plc, Mr. Haruna Jalo-Waziri, said though 2017 was considered the year of hope, CSCS adapted very quickly to ensure attainment of decent financial results and other achievements in the course of the year.

“CSCS had a profit before tax budget of N3.86 billion but surpassed this target to finish the year with a profit before tax of N5.66billion (a 46.63 favourable variance). This was driven by the confidence which returned to the capital market. Hence, actual earnings from our depository, clearing and settlement services, which constituted 49.63 (2016: 42.48 per cent) of our total revenue increased by 64.49 per cent in the current year.”

According to him, working with the Securities and Exchange Commission (SEC) and registrars of companies, CSCS successfully achieved 100 per cent dematerialisation of securities of quoted companies.

“The importance of this achievement is that it brings into effect the existence of a unified and comprehensive record of issued shares and the aforementioned companies’ shareholders. As is applicable in other markets, this puts CSCS in the position of bona fide Custodian of the golden record of securities and a sub registry for all quoted companies” Mr. Jalo-Waziri added.

Source:© Copyright Thisday Online

New Entry Opportunities Beckon as Bears Depress Stock Prices

As the bears continue to ravage the stock market, depressing prices of many stocks at the nation’s equities market, investment analysts have said the low prices are presenting opportunities for investors to invest in the market.

The dominance of the bears for three consecutive weeks has driven the market to new low with the Nigerian Stock Exchange (NSE) declining below the 40,000 mark. Also, the year-to-date growth of the market has contracted to below three per cent.
The bear run has been attributed by some analysts to foreign investors who are reducing their holdings in emerging and frontier markets.

Although the development has left many domestic investors to be skeptical and confused over the potential near term upsides, analysts at Afrinvest said investors should rather take advantage of the current cheaper valuation presents.

THISDAY checks showed that the stocks of some companies that either recently declared improved financial results or are have put strategies in place to deliver good returns to investors are trading significantly lower than their opening prices.

In the banking sector, instance, Fidelity Bank Plc is trading 26 per cent lower than the price at which it opened for the year.
The bank reported a growth of 93.7 per cent in profit after tax (PAT) to N18.9 billion for the year ended December 31, 2017, up from N9.7 billion recorded in 2016.

Only last Friday, the Managing Director/Chief Executive Officer of Fidelity Bank Plc, Mr. Nnamdi Okonkwo, said the bank would take advantage of growing opportunities in the nation’s economy to deliver quality services to customer and good returns to shareholders.

“Clearly, our success in 2017 financial year has set a strong pedestal for sustained growth in revenue. We are optimistic about a favourable operating environment and we look forward to delivering decent set of numbers at the end of 2018 financial year, ” Okonkwo said.

Similarly, Union Bank of Nigeria Plc is 25.6 per cent cheaper than its price at the beginning of the year, just as Zenith Bank Plc, which delivered one of the best results in 2017, is trading just 1.7 per cent above its 2018 opening price.
The price of Dangote Flour Mills Plc, as at Monday, was 29 per cent cheaper than its year’s opening price.
Two oil stocks, that also posted improved financial performances, Double 11 Plc and Total Nigeria Plc, are trading 15 per cent and 7.8 per cent lower.

However, the insurance sector has many stocks trading between 20 per cent and 60 per cent lower. UNIC Diversified Holdings Plc is 60 per cent cheaper, Niger Insurance Plc, 52 per cent; Regency Alliance Insurance Plc, 48 per cent; Sovereign Trust Insurance Plc,46 per cent; Veritas Kapital Assurance Plc,32 per cent; Mutual Benefits Assurance Plc, 30 per cent; LASACO Assurance Plc, 24 per cent and Guinea Insurance Plc, 20 per cent among others.

Source:© Copyright Thisday Online

Equities Market Sheds N199bn on Continuing Bearish Trading

The continuing bear run made the Nigerian equities market to record its third consecutive decline last week. The Nigerian Stock Exchange (NSE) All-Share Index fell by 1.3 per cent to close at 40,472.45, while market capitalisation shed N199.2 billion to close at N14.66 trillion. The sustained bearish run had reduced the year-to-date growth of NSE ASI to 5.8 per cent.

Apart from the NSE ASI that declined, all other indices finished lower with the exception of the NSE Consumer Goods Index which appreciated by 0.03 per cent, while the NSE ASeM Index closed flat.

However, market analysts said despite continued selloffs in the equities market, still-strengthening macroeconomic fundamentals remain suggestive of gains on the exchange.

Daily Performance

On the first day of trading, equities market capitalisation went down by N124.9 billion as bearish trading continued on the Nigerian bourse. The index declined by 0.84 per cent to close lower at 40,677.61. However, activity level was mixed as volume of shares traded grew 2.0 per cent to 218.8 million shares while value of shares traded dipped by 47.3 per cent to N2.2 billion.

In all, 32 stocks lost value while only 11 stocks appreciated. C & I Leasing Plc led the laggards with 9.3 per cent trailed by First Aluminium Nigeria Plc with 8.8 per cent. Japaul Oil & Maritime Services Plc shed 7.5 per cent, just as Okomu Oil Palm Plc, Oando Plc, AXA Mansard Insurance Plc and Diamond Bank Plc depreciated by 5.0 per cent, 4.9 per cent, 4.8 per cent and 4.7 per cent respectively.

Diamond Bank Plc last Friday recorded a loss of N9.011 billion for the year 2017 financial year while its PAT for first quarter in 2018 fell by 82 per cent to N784 million, from N5.049 billion in the corresponding period of 2017.

On the positive side, Caverton Offshore Support Group Plc led the price gainers with 4.9 per cent, followed by Sterling Bank Plc with 3.8 per cent. Mutual Benefits Assurance Plc chalked up 3.5 per cent, while FCMB Group Plc and Cutix Plc went up by 3.5 per cent, and 3,2 per cent in that order.

Analysts at SCM Capital Limited said: In the interim, we see a mixed sentiment albeit with a bearish bias. However, we maintain that the current valuation provides attractive entry opportunity.”

Meanwhile, on sectoral basis, four sectors closed lower while only the NSE Oil & Gas Index flat. The NSE Insurance Index led laggards, down 1.7 per cent, trailed by the NSE Consumer Goods Index with 1.6 per cent. The NSE Banking Index and NSE Industrial Goods Index shed 0.4 per cent and 0.2 per cent in that order.

On the second trading day, the bears tightened their grip on the market as the index depreciated by 0.15 per cent to close at 40,615.42, on losses recorded in the share prices of FBN Holdings, Zenith Bank, UBA, GTBank, and UAC of Nigeria. Similarly, the market capitalisation depreciated by same margin to close at N14.71 trillion.

Activity level, however, was mixed as volume of shares traded contracted by 7.0 per cent to 203.4 million shares while value of shares traded rose by 98.5 per cent to N4.4 billion. The top traded stocks by volume were GTBank (37.2 million shares), UBA (31.5 million shares) and Fidelity Bank (14.5 million) while the top traded stocks by value were GTBank (N1.6 billion), Nigerian Breweries (N735.2 million) and Nestle Nigeria (N510.7 million).

Also, in terms of sectoral performance was largely bullish as three of five indices tracked closed in the green. The Banking Index was the lone loser, shedding 1.3 per cent. Positively, the NSE Consumer Goods Index led gainers, up 1.4 per cent, while the NSE Insurance Index rose by 0.95 per cent. The NSE Industrial Goods Index appreciated by 0.08 per cent, while the NSE Oil & Gas Index closed flat.

However, on Wednesday the losing streak was halted on as bargain hunters entered the market. Consequently, the benchmark index rose by 0.93 per cent to close at 40,992.97, while market capitalisation added N136.8 billion to close at N14.85 trillion.

The appreciation recorded in the share prices of Dangote Cement, Nigeria Breweries, Zenith Bank, Ecobank Transnational, and Nestle drove the growth. Trading activity was mixed as the volume traded rose 27.6 per cent to 259.5 million shares while the value traded declined by 1.5 per cent to N4.4 billion. The top traded stocks by volume were Diamond Bank (68.6 million shares), Zenith Bank (33.8 million shares) and GTBank (31.4 million shares) while the top traded stocks by value were GTBank (N1.4 billion), Nestle (N1.1 billion) and Zenith Bank (N943.1 million).

The recovery in the market on Wednesday was not sustained as the index depreciated by 0.83 per cent to close at 40,651.41. The market capitalisation depreciated by 0.83 per cent to close at N14.73 trillion.

The depreciation recorded in the share prices of Dangote Cement, Nigeria Breweries, UBA, Access Bank, and Lafarge Africa were mainly responsible for the decline.

However, activity level strengthened as volume and value traded rose 63.5 per cent and 73.4 per cent to 424.4 million shares and N7.6 billion respectively. Zenith Bank (170.6 million shares), Access Bank (44.2 million shares) and FCMB (25.9 million shares)

Performance across sectors was bearish as four of the five indices closed in the red. Only the NSE Oil & Gas Index closed positive, rising marginally by 0.01 per cent. The Industrial Goods Index was the highest decliner, shedding 1.6 per cent.

The NSE Consumer Goods Index shed 1.1 per cent, while the NSE Banking Index went down by 0.4 percent just as the NSE Insurance Index fell by 0.04 per cent.

Market Turnover

Meanwhile, a total turnover of 1.457 billion shares worth N23.666 billion in 19,674 deals was traded last week by investors on the floor of the exchange in contrast to a total of 1.586 billion shares valued at N25.992 billion that exchanged hands two weeks ago in 21,115 deals.

The Financial Services Industry remained the most active with 1.223 billion shares valued at N16.825 billion traded in 11,092 deals, thus contributing 83.9 per cent and 71.1 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 76.430 million shares worth N5.188 billion in 3,425 deals. The third place was occupied by Oil and Gas Industry with a turnover of 57.193 million shares worth N527.880 million in 2,237 deals.

Trading in the top three equities namely: Zenith Bank Plc, GTBank and United Bank for Africa Plc, accounted for 491.649 million shares worth N14.159 billion in 3,265 deals.

Price Gainers and Losers

The price movement chart displayed that 20 equities appreciated in price during the week, higher than 35 in the previous week, while 54 equities depreciated in price, higher than 49 equities of the previous week. Sovereign Trust Insurance Plc led the price gainers with 30 per cent, followed by Mutual Benefits Assurance Plc and NPF Microfinance Bank Plc that chalked up 10.2 per cent. Fidson Healthcare Plc and Beta Glass Plc went down by 7.0 per cent and 4.9 per cent respectively.

Other top price gainers included: Continental Reinsurance Plc (4.9 per cent); UACN Property Development Company Plc (4.6 per cent); Prestige Assurance Plc (4.3 per cent); Cutix Plc (3.2 per cent) and CAP Plc garnered 3.2 per cent and 2.8 per cent respectively.

Conversely, Japaul Oil & Maritime Services Plc led the price losers with 25 per cent, trailed by Skye Bank Plc with a growth of 19.2 per cent. Diamond Bank Plc also went by 18.4 per cent, just as Cement Company of Northern Nigeria Plc declined by 17.2 per cent in that order.

Other top loser included: Fidelity Bank Plc14.8 per cent; Veritas Kapital Assurance Plc (14.2 per cent); Equity Assurance Plc (13.7 per cent);Okomu Oil Plc (12.8 per cent); C & I Leasing Plc (12.8 per cent) and Nigeria Insurance Plc (12.5 per cent).

Source:© Copyright Thisday Online

Neimeth Returns to Profitability, Appoints Independent Director

Neimeth International Pharmaceuticals Plc has reported a profit after tax (PAT) of N30 million for the half year ended March 31, 2018, compared with a loss of N195 million in the corresponding period of 2017. This is just as the company has appointed Mrs. Bashirat Odunewu as an independent director in compliance with the statutory requirement for good corporate governance.

An analysis of the results showed that Neimeth posted revenue of N877.317 million in 2018, up from N601.427 million in 2016. Cost of sale stood at N399.7 million compared with N259 million, while it ended the period with gross profit of N477.6 million, up from N342.3 million in 2016.

In line with its cost saving strategies, the company reduced its marketing and distribution expenses to N149 million, down from N188 million in 2016. Similarly, administrative expenses declined from N304 million to N256 million. Consequently, profit before tax stood at N30 million in 2018 as against loss of N195 million in 2016.

Meanwhile, the new independent director is a chemistry graduate of the University of Manchester Institute of Science and Technology. She also holds a Master of Science degree from the University of London. She is a fellow of the Institute of Chartered Accountants of Nigeria (ICAN), and a member Chartered Institute of Arbitrators (MCIArb).

Odunewu has over 20 years experience in the financial services sector. She is currently the Group Executive – International Banking at First Bank Nigeria Limited.

The company said it was positioned for a rapid recovery having overcome the consequences of the fire that occurred in March, 2017.

Neimeth which had a rough patch in recent times following the challenging operating environment. However, the Chairman of the company, Dr. ABC Orjiako, had announced plans to overhaul the corporate structure of the company in such a way that it will refocus it for a meaningful and sustainable growth.

Going by the 2016 performance of the company, the restructuring efforts have started to yield fruits as the company has returned to profitability for the full year.

This led to the company coming up with a three strategic imperatives to revitalise sales and generate more revenue, reduce costs and optimise efficiency and transform the organisational culture towards a new Neimeth.

According to the company, new practices were adopted which contributed to better inventory management, production planning and coordination between manufacturing and sales activities most importantly.

Source:© Copyright Thisday Online

SEC Woos Fictitious Investors to Claim their Dividends

Following the refusal of investors that used fictitious names to buy shares during public offerings in boom days of stock market, the Securities and Exchange Commission (SEC) is considering new strategies to ensure compliance by investors, findings by THISDAY have revealed.

The 2006-2008 boom years of the capital market saw a jump in public offerings as many banks, insurance companies and other non-financial quoted and unquoted companies issued shares to raise funds through the stock market.

Several investors resorted to the use of various means to push through multiple allocations so as to succeed with their applications.
However, it has been discovered that some of those investors have forgotten their names and details used to buy those shares, others have failed to come forward to claim the shares, a development that has contributed to the high level of unclaimed dividends in the market.
It has been reported that about three-quarter of the outstanding unclaimed dividends (N80 billion) and millions of shares belong to such investors who used fictitious names.

As part of the efforts to encourage the investors to come and claim their dividends and shares, SEC last year set up a committee after which it issued a deadline of September 1, 2017 for the regularisation of the multiple and fictitious accounts. It was later extended to March 31, 2018 before another recent extension to September 30, 2018.

But the managing director of a share registration firm, told THISDAY that many investors had been staying away from regularising their accounts because of the way SEC had handled the report of the Committee, which he said is perceived as criminalising the investors.
According to market the operator, another Committee has been set to review that report of the first committee.

“A committee has been set up to review it again, the way it is now, like you are criminalising those investors. And most people are not coming out because of the criminal tone of the pronouncement by SEC. If you say I apply with a different name and I cannot claim my money, I will not want to come out. We know the way people applied for shares in those years of boom was an aberration but how do we address the issue now. The report of the Committee that was adopted before is trying to criminalise those who do not want come out but SEC is making it in a way that will make people to come forward. All you need to do is show evidence that you paid. If the records show that you paid for the shares, you get your dividends or shares,” the MD said.

The acting Director General of SEC, Ms. Mary Uduk disclosed last month that the fictitious shareholders had been given up till September 30, 2018 to provide proof to claim and regularise their shareholdings.
According to her, the extension was part of the highpoints of the meeting of the Capital Market Committee (CMC).

Although she said that registrars had acknowledged that investors with fictitious accounts had started coming forward to claim their shares, there were challenges in the process, hence the CMC deliberated and recommended the appropriate technical committee to seek input and come up with recommendations to address the challenges.
“Therefore, we encourage all affected investors to come forward and take advantage of the window before the new deadline,” Uduk said.

Source:© Copyright Thisday Online


Dangote Cement Lifts Market as Trading Resumes on Bullish Note

The stock market resumed on positive note on monday as the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.05 per cent to close at 41,233.42. Similarly, market capitalisation added N16.6 billion to close at N14.9 trillion. However, the activity level reduced as volume and value traded depreciated 21.9 per cent and 39.3 per cent to 221.4 million and N2.6 billion in that order. The positive performance was largely driven by gains in Dangote Cement Plc and Guinness Nigeria Plc. In all, 21 stocks appreciated, while 18 stocks depreciated.

Eterna Plc led the price gainers with 9.7 per cent, trailed by C & I Leasing Plc with 5.0 per cent. Oando Plc garnered 4.7 per cent. Oando Plc has remained consistent in price appreciation since its technical suspension was lifted last month. Investors’ demand for the stock was reinforced with an improved results for the full year ended December 31, 2017. The company recorded profit after tax of N19.77 billion in 2017, showing a jump of 405 per cent from N3.913 billion in 2016. AIICO Insurance Plc closed as the fourth highest price gainer with 4.3 per cent, while Mutual Benefits Assurance Plc chalked up 3.8 per cent.

Conversely, Unity Bank Plc led the price losers with 5.0 per cent to close at N1.14 per cent trailed by UACN Property Development Company Plc with 4.8 per cent. NPF Microfinance Bank Plc and Linkage Assurance Plc shed 4.7 per cent apiece. First Alumium Nigeria Plc declined by 4.1 per cent among others.

Meanwhile, an analysis of the activity table showed that the top traded stocks by volume were LASACO Assurance Plc (24.3 million shares), GTBank (20.7 million shares) and Sovering Trust Insurance Plc (16.6 million shares ) while GTBank (N937.6 million), Nigerian Breweries Plc (N499.8 million) and Zenith Bank Plc (N292.4 million) were the top traded by value.

In terms of sectoral performance, three of the five tracked closed positively led by the Industrial Goods Index with 0.4 per cent on the back of gains in Dangote Cement Plc. Similarly, the NSE Oil & Gas Index went up by 0.2 per cent, while the NSE Insurance Index appreciated by 0,1 per cent.

On the contrary, the NSE Banking Index fell by 0.3 per cent, just as the NSE Consumer Goods Index went down by 0.2 per cent.

According to analysts at Cordros Capital, Dangote Cement was a major driver of market performance, as the market would have recorded a decline of 0.35 per cent loss without the counter.

“We expect the positive trend in the market to be sustained as the oil and gas space continues to witness rising bullish sentiments towards its counters,” they said.

Source:© Copyright Thisday Online


NAHCO to Pay N406m Dividend as Firm Records Improved Results

The Board of Directors of Nigerian Aviation Handling Company Plc (NAHCo) has recommended a dividend of N406 million for the year end December 31, 2017. The dividend, which translates to 25 kobo per share, is expected to be approved by shareholders at the forthcoming Annual General Meeting (AGM).

NAHCo, which provides aircraft, passenger and cargo handling services and other related services surmounted challenges in 2017 to end the year with higher profit after tax (PAT). The company recorded a turnover of N7.926 billion in 2017, compared with N7.956 billion in 2016. Finance cost was reduced from N545 million in 2016 to N213 million in 2017, while PAT rose from N581 million in 2016 to N776 million in 2017, showing an increase of 34 per cent. Earnings per share improved from 36 kobo to 48 kobo. Hence, the board of directors recommended a dividend payment of 25 kobo, which is higher than the 22 kobo paid the previous year.

In the same vein, NAHCo has started 2018 on a very bright note, recording significant growth in PAT for the first quarter (Q1) ended March 31, 2018. The reported a turnover of N2.188 billion in Q1 of 2018, up from N1.786 billion in the corresponding period of 2017.

Finance income improved from N30.916 million to N64.495 million, while the company was able to reduce finance cost to N44.536 million, from N55.715 million in 2017.

Profit Before Tax jumped to N117.405 million in 2018, compared with N1.026 in 2017, while PAT followed similarly trend to hit N97.566 million, compared with N1.026 million in 2017.

The Q1 results are the first set of results produced by the Managing Director/CEO, Mr. Idris Yakubu, who was appointed in November 2017.

Stock market operators said with the Q1 performance, Yakubu, a former banker, who has an extensive experience in delivering agreed strategic business imperatives, is bringing his experience to bear in the company to the delight of all stakeholders.

Shareholders of NAHCo had last year commended the board and management for the improved results despite the challenging operating environment. They pledged their support for better future results and urged the board and management to sustain the performance.

Chairman of NAHCo, Usman Bello had informed the shareholders that in spite of the recession and the global weakness in the aviation sector, the company’s performance was commendable.

Speaking on the diversification programme, Bello noted that NAHCoFree Trade Zone (NFZ) that was approved by shareholders in 2011 as a subsidiary of the company had achieved some milestones.

Source:© Copyright Thisday Online

Nestle Nigeria Records Marginal Growth in First Quarter Profit After Tax

Nestle Nigeria Plc Wednesday announced its financial results for the first quarter (Q1) ended March 31, 2018, showing a marginal growth in performance indications. The company, which recorded a jump of 325 per cent in profit after tax (PAT) for the 2017 financial year , has started 2018 on a slow note as PAT for Q1 rose by a marginal three per cent.

Details of the results showed gross revenue of N67.5 billion in Q1 of 2018, up by 10.7 per cent from N37.7 billion in the corresponding period of 2017. Cost of sales went up by 10.7 per cent from N37.7 billion to N41.7 billion. Profit before tax fell by 4.5 per cent from N14.3 billion to N13.6 billion. A reduction of 15 per cent in tax from N5.9 billion in 2017 to N5.0 billion in 2018, made the company to end the Q1 with higher profit.

Specifically, Nestle Nigeria’s PAT stood at N8.6 billion in 2018, up from N8.4 billion in the corresponding period of 2017. Gross profit margin fell from 38.4 per cent to 38.2 per cent, while net profit margin reduced from 13.7 per cent to 12.8 per cent in 2018.
Market operators said if Nestle Nigeria would be unable to improve its performance in the remaining three quarters, it might end the year with lower bottom-line.

The company recommended a total dividend of N33.687 billion or N42.50 per share for the 2017 full year, which represented 99 per cent profit after tax of N33.724 billion recorded for the year.

Nestle Nigeria Plc had reported gross revenue of N244.2 billion in 2017, up 34.2 per cent, from N181.9 billion recorded in 2016.Net finance costs fell by 46.8 per cent from N16.7 billion to N8.9 billion. Profit before tax settled at N46.8 billion, showing a growth of 117 per cent compared with N21.5 billion recorded in 2016. Profit after tax grew faster by 325 per cent from N7.9 billion to N33.7 billion in 2017.

Commenting on the 2017 results, Nestle Nigeria had attributed improved performance to multiple factors such as continued loyalty and trust of its consumers in its brands, the dedication of its people and the efficiency of its distribution network.

“In line with our strategic roadmap, we will continue to invest behind brands and route-to-market activities while proactively managing input cost pressures to stay on the growth path. We will continue delivering value to our shareholders with our commitment to provide high quality nutritious products to meet the needs and preference of our consumers,” the company said.

Source:© Copyright Thisday Online

Domestic Investors Lead as Nigerian Bourse Attracts N879bn in First Quarter

Domestic investors dominated transactions on the Nigerian Stock Exchange (NSE) in the first quarter (Q1) ended March 31, 2018 as they traded N497.15 billion, compared with the N381.82 billion traded by foreign investors.

Domestic investors, therefore, accounted for 56.56 per cent, while foreign investors were responsible for 43.44 per cent. In all, the Nigerian bourse attracted N878.97 billion in Q1 of 2018, showing a jump of 93 per cent from N454.48 billion in Q1 of 2017. A monthly analysis of the transactions showed that investors staked N394.44 billion in January, N212.05 billion in February and N272.48 billion in March.

However, total domestic transactions increased by 8.88 per cent from N128.83 billion in February to N140.27 billion in March 2018, while foreign transactions increased more significantly by 58.87 per cent from N83.22 billion to N132.21 billion within the same period.

A further analysis of the total domestic transactions indicated that domestic institutional investors remained the dominant players. In the three months under review, the domestic institutional investors traded N288.91 billion, while retail investors accounted for N208.24 billion. The domestic institutional investors staked N121.56 billion in January, N76.08 billion in February and N91.27 billion in March. On the other hand, domestic retail investors traded N106.49 billion in January, N52.75 billion in February and N49 billion in March.

Meanwhile, foreign portfolio investment ( FPI) transactions report showed that foreign investors invested more in equities than they took. The report showed positive net foreign inflows of N30.9 billion compared with a negative net foreign investment position of N86.36 billion in the first quarter of last year.
The report obtained at the weekend indicated that foreign inflows and outflows rose to N206.35 billion and N175.47 billion in first quarter, indicating a positive net foreign investment position of N30.9 billion. Total foreign inflow and outflow of N62.35 billion and N148.71 billion were recorded in comparable period of 2017, which left the country with net FPI deficit of N86.36 billion.

These two key indicators-inflow and outflow- are used to measure foreign investors’ participation in the equities market as a barometer for the economy. FPI outflow includes sales transactions or liquidation of equity portfolio investments through the stock market while inflow includes purchase transactions in the market.
The report is regarded as a credible gauge of FPI as it coordinates data from nearly all active investment bankers and stockbrokers.

Monthly analysis showed a positive trend in net foreign investment inflow in the first quarter of the year. Foreign inflow amounted to N91.75 billion in January as against outflow of N74.64 billion. Foreign inflow and outflow stood at N44.89 billion and N38.33 billion in February while foreign inflow and outflow recovered hit N69.71 billion and N62.50 billion in March.

Commenting on the FPI, the Chief Executive Officer, Capital Assets Limited, Alhaji. Ariyo Olushekun, said it indicated confidence in the capital market in particular and economy in general.
According to him, the positive trading position of the FPI shows that foreign investors see value in the economy and the stock market, since investors trade for value.

Source:© Copyright Thisday Online