The stock market extended its decline on Wednesday as 20 companies led by Seplat Petroleum Development Company Plc recorded losses at the close of trading on the Nigerian Stock Exchange.
The market capitalisation of equities listed on the NSE dropped to N13.984tn from N14.006tn on Tuesday, while the NSE All-Share Index fell by 0.15 per cent to close at 38,605.07 basis points.
Seplat saw its share price declined by 4.99 per cent to close at N717.20. It was followed by Custodian and Allied Insurance Plc, which fell by 4.93 per cent to N5.01 per share.
Livestock Feeds Plc shed 4.60 per cent to close at N0.83 per share; Unity Bank Plc depreciated by 4.35 per cent to N0.88 per share, while Unity Bank of Nigeria Plc lost 4.20 per cent to close at N5.70 per share.
Twenty-three stocks recorded price appreciation on Wednesday, with Prestige Assurance Plc leading the pack as its share price gained 10 per cent to close at N0.66.
C&I Leasing Plc appreciated by 9.34 per cent to close at N1.99 per share, while Eterna Plc increased by 8.93 per cent to N7.20 per share.
Japaul Oil & Maritime Service Plc was up by 7.50 per cent to close at N0.43 per share while Mutual Benefit Assurance Plc appreciated by 6.25 per cent to N0.34 per share.
Shareholders of Dangote Cement Plc (DCP) yesterday approved the N178.9 billion dividend recommended for the year ended December 31, 2017 and commended the board and management for the impressive performance despite the challenging operating environment.
The cement company, which is the biggest firm listed on the Nigerian Stock Exchange (NSE) ended 2017 with a profit after tax of N204.2 billion, up by 43 per cent from N142.9 billion in 2016. Based on that improved bottom-line, the board recommended a dividend of N178.9 billion, which translated to N10.50 per share, up from N8.70 the previous year.
Speaking at the 7th annual general meeting (AGM) of the company in Lagos, the excited shareholders said DCP had continued to create value for them, urging the board and management to maintain that leading performance going forward.
Specifically, DCP recorded a revenue of N805.6 billion, up by 31 per cent from N615.1 billion in 2016. Profit before tax rose by 60.1 per cent from N180.9 billion to N298.6 billion, while profit after tax grew by43 per cent to N204.2 billion, from N142.9 billion in 2016.
In his address to shareholders, Chairman of DCP, Alhaji Aliko Dangote said the board believed that the recommended dividend is at an appropriate level and was consistent with the company’s aim of delivering superior returns to shareholders, while at the same time balancing the company’s need to invest in growth.
He said as a company, DCP was accorded international credit ratings that were actually higher on a standalone basis than the sovereign country of Nigeria.
“This recognition should assure you, our shareholders, that our long-term view and prudent management are serving us well at a time when others in our industry are facing difficulties that challenge their independence and only serve to erode shareholder value,” he said.
Also speaking, the Acting Chief Executive Officer of DCP, Joseph Makoju said he was pleased with the way the company adapted to marketing efforts to the challenges in the Nigerian economy in 2017.
Looking ahead, Makoju said the company would return to volume growth, particularly in Nigeria as the economy recovers and the higher oil price brings more cash into the country.
“We will continue to focus on improving sales and logistic so we are well prepared for when the market picks up, which we are confident it will in 2018 as infrastructure investment begins to accelerate,” Makoju said.
The equities market of the Nigerian Stock Exchange finished lower at the close of trading on Tuesday, after a two-day public holiday.
The market capitalisation of listed equities dropped to N14.006tn from N14.101tn on Thursday, while the NSE All-Share Index fell by 0.68 per cent to close at 38.664.15 basis points.
Thirty-four stocks recorded losses on Tuesday, with Prestige Assurance Plc leading the pack as its share price declined by 6.25 per cent to close at N0.60.
Union Diagnostic and Clinical Services Plc shed five per cent to close at N0.38 per share, while Flour Mills of Nigeria Plc depreciated by 4.89 per cent to close at N31.15 per share.
Forte Oil Plc eased by 4.87 per cent to close at N35.15 per share, while Fidelity Bank Plc dropped by 4.85 per cent to N2.16 per share.
Other losers were NASCON Allied Industries Plc, FCMB Group Plc, Equity Assurance Plc, Wapic Insurance Plc, Union Bank of Nigeria Plc, Unilever Nigeria Plc, United Bank for Africa Plc, Honeywell Flour Mill Plc, and Sterling Bank Plc, among others.
Twelve stocks recorded gains on Tuesday, with International Breweries Plc, Japaul Oil & Maritime Service Plc, C&I Leasing Plc, Eterna Plc and Ikeja Hotel Plc emerging the top gainers.
International Breweries appreciated by 6.54 per cent to close at N44 per share. It was followed by Japaul, which was up by 5.26 per cent to N0.40 per share.
C&I Leasing saw its share price appreciate by 5.20 per cent to N1.82, while Eterna and Ikeja Hotel gained 4.92 per cent and 4.91 per cent respectively to close at N6.61 and N2.99 per share.
The stock market sustained its positive performance last week as the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.76 per cent, to close higher at 38,928.02, while market capitalisation chalked up N150.9 billion to end the week at N14.102 trillion.
The market had recovered from a bearish trading the preceding week, by gaining N700 billion in terms of market capitalisation.
Although trading was for only four days last week due to public holiday last Friday and today, declared by the federal government to mark the end of Ramadan and commemorate the Eid-al-Fitr celebrations, the bulls were able to repel advances by the bears twice.
Consequently, the market closed higher, for the second week running. While the NSE ASI and other indicators appreciated the NSE Corporate Governance, NSE Consumer Goods and NSE Industrial Goods Indices depreciated by 0.08 per cent, 0.85 per cent and 0.12 per cent respectively.
Daily Performance
Trading resumed on Monday on a positive note with the index rising by 0.45 per cent, to close at 38,844.32. A total of 30 stocks appreciated while 20 others depreciated. Consequently, the month-to-date and year-to-date growth improved to 1.94 per cent and 1.57 per cent in that order.
According analysts at Meristem Securities Limited, trading recovered from the losses recorded on the final trading session the preceding week.
“The gains on counters in the banking and consumer goods sectors drove the performance of the market. We expect this to continue for the remainder of the week, even with bouts of profit taking on some of the counters,” they had said.
Bellwethers such as Nigerian Breweries Plc, FBN Holdings Plc, Guaranty Trust Bank Plc and Zenith Bank Plc were among the advancers. But NASCON Allied Industries Plc led the overall gainers’ table with 7.1 per cent on that day.
Diamond Bank Plc trailed with 6.5 per cent, while Japaul Oil & Maritime Services Plc gained 6.4 per cent. NAHCO Plc and Equity Assurance Plc chalked up 5.0 per cent each. AIICO Insurance Plc and Presco Plc gained 4.8 per cent and 4.7 per cent respectively last Monday.
Conversely, Berger Paints Nigeria Plc led the price losers with 5.0 per cent, followed by BOC Gases Plc with 4.9 per cent. Eterna Plc shed 4.7 per cent just as Prestige Assurance Plc and Wema Bank Plc went down by 4.4 per cent and 3.9 per cent respectively.
Meanwhile, activity level was mixed on the first trading day last week, as volume traded improved by 187.2 per cent to 603.2 million shares while value traded remained flat at N3.9 billion. The most traded stocks by volume were Ikeja Hotel Plc (279.6 million shares), United Capital Plc (79.1 million shares) and African Prudential Plc (56.8 million shares) while Ikeja Hotel Plc (N705.0 million shares), Dangote Sugar Refinery Plc (N641.9 million) and GTBank (N437.7 million) were the top traded stocks by value.
Nevertheless, the bullish trend was sustained on Tuesday as the index rose further by 0.84 per cent to close at 39,167.39.
Similarly, the market capitalisation added N117 billion to close last Tuesday at N14.2 trillion.
As a result, the year-to-date (YTD) growth improved to 2.4 per cent.
The performance was influenced by gains in Dangote Cement Plc, Nestle Nigeria Plc and Seplat Petroleum Company Development Plc. In all, 27 stocks appreciated while 21 depreciated.
Seplat led the price gainers with 8.1 per cent on as investors increased their stake ahead of improved returns. The company had last year returned to profitability last year and consolidated on the performance in the first quarter ended March 31, 2018.
The Managing Director of Seplat, Mr. Austin Avuru last week told investors at the company’s annual general meeting that the company was well equipped to deliver long-term value for shareholders.
“I am pleased to report that Seplat made a return to full-year profitability in 2017, registered strong cash flow performance and significantly strengthened the balance sheet.
“In a year of contrast, we were plagued throughout most of the first half by force majeure at the Forcados terminal. Our proactive and decisive management coupled with the strong underlying fundamentals of the business have seen us emerge from an exceptionally challenging period a much fitter and stronger business that is well equipped to deliver long-term value for our shareholders,” he had said.
Double 11 Plc closed as the second highest price gainer with 4.9 per cent, NEM Insurance Plc and Equity Assurance Plc garnered 4.8 per cent and 4.7 per cent in that order.
Conversely, last Tuesday, Prestige Assurance Plc led the price losers with 4.6 per cent, followed by Eterna Plc with 4.4 per cent. FCMB Group Plc shed 4.1 per cent, just as Niger Insurance Plc and A.G Leventis Plc went down 3.7 per cent.
In terms of sectors, four of them appreciated while only one declined. The loser was the NSE Banking Index that shed 0.04 per cent. The NSE Oil & Gas Index led with 4.9 per cent on the back of gains by Seplat and Double 11.
The NSE Insurance Index rose 0.9 per cent, while the NSE Industrial Goods Index and NSE Consumer Goods Index depreciated by 0.5 per cent and 0.4 per cent.
However, on Wednesday the positive trend was halted as some investors moved in to take profit. This led to the index declining by 0.35 per cent to close at 39,031.72.
Similarly, on that day, the market capitalisation shed 0.35 per cent to close at N14.14 trillion. The depreciation recorded in the share prices of FBN Holdings, Dangote Sugar, Nigerian Breweries, Zenith Bank, and UBA were mainly responsible for the negative close.
The three most actively traded stocks on that day, were UBA (90.61 million shares), United Capital (78.68 million shares), and African Prudential (72.10 million shares).
But the stock market closed lower on Thursday, which was the last trading day of the week. While the index fell from 39,031.72 to close at 38,928.02, market capitalisation declined from N14.139 trillion to N14.102 trillion.
Although 28 stocks appreciated as against 17 that depreciated, heavy weight such as Zenith Bank Plc, FBN Holdings Plc and Nigerian Breweries Plc that were among the losers led to the bearish close.
Market Turnover
In the four trading sessions last week , a total turnover of 1.738 billion shares worth N18.462 billion in 14,790 deals was recorded compared with 1.749 billion shares valued at N31.183 billion that exchanged hands in 24,604 deals the previous week.
However, the Financial Services Industry was the most active with 1.170 billion shares valued at N9.695 billion exchanged in 7,809 deals, thus contributing 67.3 per cent and 52.5 per cent to the total equity turnover volume and value respectively. The Services Industry followed with 293.492 million shares worth N733.407 million in 531 deals. The third place was occupied by Consumer Goods with a turnover of 154.093 million shares worth N4.997 billion in 3,002 deals.
Trading in the top three equities namely – United Capital Plc, Ikeja Hotel Plc and United Bank For Africa Plc accounted for 811.747 million shares worth N3.887 billion in 986 deals.
Price Gainers and Losers
Meanwhile, 40 equities appreciated in price during the review week, lower than 49) in the previous week, while 28 equities depreciated in price, lower than 29 equities of the previous week.
Japaul Oil & Maritime Services Plc led the price gainers with 22.5 per cent, trailed by Equity Assurance Plc with 20 per cent. Union Bank of Nigeria Plc appreciated by 10.7 per cent just as Okomu Oil Palm Plc and Learn Africa Plc chalked up 10.2 per cent and 9.7 per cent in that order.
Other top gainers were: LASACO Assurance Plc (8.5 per cent); NPF Microfinance Bank Plc (8.5 per cent); Ikeja Hotel Plc (8.3 per cent); Honeywell Flour Mills Plc (8.2 per cent) and C & I Leasing Plc (7.4 per cent).
Conversely, Mutual Benefits Assurance Plc led the price losers, shedding 13.8 per cent, followed by A.G Leventis Nigeria Plc (7.5 per cent). Nigerian Breweries Plc went down by 5.9 per cent, just as Berger Paints Nigeria Plc declined 5.0 per cent.
Other top losers included: B.O.C Gases Plc (4.9 per cent); Union Diagnostic & Clinical Services Plc ; Neimeth International Pharmaceuticals Plc(4.7 per cent apiece); Law Union & Rock Insurance Plc (4.6 per cent); Prestige Assurance Plc (4.4 per cent) and Newrest ASL Nigeria Plc (4.2 per cent).
The value of the Nigerian equities market rose N117 billion to close at N14.2 trillion on continuing bullish trend.
The bargain hunting in heavy weight counters also led to a growth of 0.84 per cent in the Nigerian Stock Exchange (NSE) All-Share Index (ASI) to close at 39,167.39. As a result, the year-to-date (YTD) growth has improved to 2.4 per cent.
Yesterday’s performance was influenced by gains in Dangote Cement Plc, Nestle Nigeria Plc and Seplat Petroleum Company Development Plc. In all, 27 stocks appreciated while 21 depreciated.
Seplat led the price gainers with 8.1 per cent on as investors increased their stake ahead of improved returns. The company hd last year returned to profitability last year and consolidated on the performance in the first quarter ended March 31, 2018.
The Managing Director of Seplat, Mr. Austin Avuru last week told investors at the company’s annual general meeting that the company ws well equipped to deliver long-term value for shareholders.
“I am pleased to report that Seplat made a return to full-year profitability in 2017, registered strong cash flow performance and significantly strengthened the balance sheet. In a year of contrast, we were plagued throughout most of the first half by force majeure at the Forcados terminal…Our proactive and decisive management coupled with the strong underlying fundamentals of the business have seen us emerge from an exceptionally challenging period a much fitter and stronger business that is well equipped to deliver long-term value for our shareholders,” he said.
Double 11 Plc closed as the second highest price gainer with 4.9 per cent, NEM Insurance Plc and Equity Assurance Plc garnered 4.8 per cent and 4.7 per cent in that order.
Conversely, Prestige Assurance Plc led the price losers with 4.6 per cent, followed by Eterna Plc with 4.4 per cent. FCMB Group Plc shed 4.1 per cent, just as Niger Insurance Plc and A.G Leventis Plc went down 3.7 per cent.
In terms of sectors, four of them appreciated while only one declined. The loser was the NSE Banking Index that shed 0.04 per cent. The NSE Oil & Gas Index led with 4.9 per cent on the back of gains by Seplat and Double 11.
The NSE Insurance Index rose 0.9 per cent, while the NSE Industrial Goods Index and NSE Consumer Goods Index depreciated by 0.5 per cent and 0.4 per cent.
Trading at the stock market resumed for the week on a positive note yesterday, with the Nigerian Stock Exchange (NSE) All-Share Index rising by 0.45 per cent to close at 38,844.32. The market had recovered N700 billion last week after bargain hunters swooped on oversold counters. For four days running, the market was bullish but fell on Friday as some investors paused for profit taking.
However, the bullish trend resumed yesterday as 30 stocks appreciated while 20 others depreciated. Consequently, the month-to-date and year-to-date growth improved to 1.94 per cent and 1.57 per cent in that order.
According analysts at Meristem Securities Limited, trading recovered from the losses recorded on the final trading session last week.
“The gains on counters in the banking and consumer goods sectors drove the performance of the market. We expect this to continue for the remainder of the week, even with bouts of profit taking on some of the counters,” they said.
Bellwethers such as Nigerian Breweries Plc, FBN Holdings Plc, Guaranty Trust Bank Plc and Zenith Bank Plc were among the advancers. But NASCON Allied Industries Plc led the overall gainers’ table with 7.1 per cent.
Diamond Bank Plc trailed with 6.5 per cent, while Japaul Oil & Maritime Services Plc gained 6.4 per cent. NAHCO Plc and Equity Assurance Plc chalked up 5.0 per cent each. AIICO Insurance Plc and Presco Plc gained 4.8 per cent and 4.7 per cent respectively.
Conversely, Berger Paints Nigeria Plc led the price losers with 5.0 per cent, followed by BOC Gases Plc with 4.9 per cent. Eterna Plc shed 4.7 per cent just as Prestige Assurance Plc and Wema Bank Plc went down by 4.4 per cent and 3.9 per cent respectively.
Meanwhile, activity level was mixed as volume traded improved by 187.2 per cent to 603.2 million shares while value traded remained flat at N3.9 billion. The most traded stocks by volume were Ikeja Hotel Plc (279.6 million shares), United Capital Plc (79.1 million shares) and African Prudential Plc (56.8 million shares) while Ikeja Hotel Plc (N705.0 million shares), Dangote Sugar Refinery Plc (N641.9 million) and GTBank (N437.7 million) were the top traded stocks by value.
The Nigerian Stock Exchange (NSE) said it has a unique role to play in the sustainable growth of the domestic and regional capital markets as well as the broader economy.
The Chief Executive Officer of the NSE, Mr. Oscar Onyema said this while speaking to THISDAY in Lagos.
He said the role of the NSE would be fulfilled by mobilising savings for domestic investment in the economy including sectors that require special attention such as small and medium scale enterprises(SMEs) and infrastructure sectors.
“We will also provide thought leadership on economic and business issues, build capacity for institutions and communities and promote good governance as the foundation of sustainable and equitable long-term growth and competitiveness,” he added.
According to Onyema, the business model of the exchange ensures long-term sustainability that enables it to weather cyclical changes in the market conditions and provide new, innovative opportunities for wealth creation.
“We provide a market for the issuance and trading of range of investment products (including equities, bonds, exchange traded funds and mutual funds) powered by world-class technologies and robust regulatory framework, for reliable and efficient access to capital formation and value creation,” he said.
The NSE boss had last Thursday said the demutualisation process was still on course.
According to him, they are waiting for the signing of the Demutualisation Bill to be signed into law to fast-track the process.
“While waiting for the Bill to be signed into law, we are working on some oustatding aspects and providing clarity on the process through regular engagement with stakeholders. We are very positive that the demutualisation of the NSE will further catalyse the development of transparent and efficient capital market that is very critical to the country’s economy,” he said.
Reviewing the performance of the exchange in 2017, Onyema said a total income of N8.30billion and N3.82 billion surplus before tax were recorded , representing 86 per cent and 5,629 per cent when compared with N4.46 billion and N27.45 million respectively posted in 2016.
“This positive performance, after the significant headwinds witnessed over the past two years, affirms the resilience of our market and its potential as a catalyst of economic growth in Nigeria and the hub for Africa. Focus on executing our robust strategy of cost efficiency, products and revenue diversification, as well as innovative and improved operational delivery, underpins this strong performance,” he said.
The nation’s equities market recovered significantly last week as investors took advantage of low priced stocks to increase their stakes.
The Nigerian Stock Exchange (NSE) All-Share Index had in the previous week declined by 6.38 per cent to close at 36,816.29, while market capitalisation shed N908.2 billion to close at N13.3 trillion, following sustained massive sell off by some investors.
The four-week bear run had led to high apprehension among some investors and stakeholders, with expectation that the panic button may be pressed.
But relief came last week as the market rebounded, recovering N700 billion in terms of its market capitalisation, which closed at N14.008 trillion.
Similarly, the NSE ASI gained 5.03 per cent to close at 38,669.23. All other indices finished higher with the exception of the NSE Insurance and NSE Oil/Gas Indices that depreciated by 0.61 per cent and 1.34 per cent respectively, while the NSE ASeM Index closed flat.
According to analysts at Meristem Securities Limited, the market gained positive momentum following bargain hunting activities on the heavy weight counters in the market.
“The low prices of the counters in the consumer goods and banking sectors was attractive enough to spur buying pressure in the market,” they added.
Also commenting, analysts at Cordros Capital Limited said: “Relatively lower prices of value stocks, coupled with still-positive macroeconomic fundamentals, will further sustain gains in the equities market.”
Daily Performance
The market last Monday recorded its first gain after losing for 12 day to rise by 0.36 per cent to close at 36,947.10. Although the market recorded 21 gainers and losers apiece, heavy weighted counters such as Guaranty Trust Bank Plc, Zenith Bank Plc and Nigerian Breweries Plc, FBN Holdings Plc made the bulls to have an upper hand.
Market analysts at Cordros Capital Limited had envisaged the rebound, saying: “While acknowledging potential bargain hunting in the short term, in what follows relatively lower stock prices, we guide investors to trade cautiously and focus primarily on fundamentally sound stocks.”
Also, on the first day of the week, Japaul Oil and Maritime Services Plc led the 21 stocks with 9.0 per cent. Custodian and Allied Plc and Eterna Plc that gained 4.9 per cent each. GTBank Plc garnered 4.5 per cent, just as AIICO Insurance Plc, FBN Holdings Plc and FCMB Holdings Plc appreciated by 3.5 per cent, 3.4 per cent and 3.2 per cent in that order.
LASACO Assurance Plc and Nigerian Breweries Plc equally advanced, adding 2.9 per cent apiece.
Conversely, on that day, Oando Plc led the bears, sliding by 8.9 per cent, followed by Cadbury Nigeria Plc with 8.0 per cent. Presco Plc shed 5.0 per cent, while PZ Cussons Nigeria Plc and Sterling Bank Plc went down by 4.8 per cent and 4.6 per cent respectively. Jaiz Bank Plc and Law Union and Rock Insurance Plc got hair cuts of 4.4 per cent each.
But activity level weakened as volume and value traded dipped 39.2 per cent and 2.3 per cent to 314.5 million shares and N7.0 billion respectively compared with the preceding Friday’s figures.
Commenting on the market performance on that day, analysts at Meristem Securities Limited had said: “Positive sentiment prevailed in the equities market following buying pressure on counters which have lost significantly in previous weeks, particularly heavily weighted stocks in the banking sector like GTBank and Zenith Bank.
“This was enough to offset the impact of continued sell-offs in the consumer goods space.”
However, the positive sentiments were sustained on the second day on continuing bargain hunting in heavy weight counters made the equities market to extend its gain.
The index jumped 2.5 per cent to close at 37,854.92, while market capitalisation added N328.8 billion to close higher at N13.7 trillion.
Similarly, on the second day, Meristem Securities Limited had explained that the mood in the market was upbeat as investor appetite showed encouraging signs of improvement.
“Bargain hunting on bellwether stocks such as Dangote Cement, Nigerian Breweries, GTBank drove the positive performance of the market.
“We expect this trend to persist in the days ahead as investors continue to take advantage of the relatively low prices across the sectors,” they had said.
An analysis of the performance for that day had shown that Oando Plc led the price gainers with 9.8 per cent followed by International Breweries Plc that garnered 7.6 per cent. Dangote Sugar Refinery Plc chalked up 6.3 per cent just as Honeywell Flour Mills Plc, Okomu Oil Palm Plc and Nigerian Breweries Plc gained 5.0 apiece.
Similarly, Lafarge Africa Plc, Diamond Bank Plc and Fidelity Bank Plc appreciated by 4.9 per cent each, while FCMB Group Plc went up by 4.8 per cent.
Conversely, Consolidated Hallmark Insurance Plc led the price losers with 6.6 per cent, trailed by Royal Exchange Plc with 5.8 per cent. UAC of Nigeria Plc shed 4.5 per cent, while First Aluminium Nigeria Plc, Total Nigeria Plc and Sovereign Trust Insurance Plc went down by 4.5 per cent, 4.3 per cent and 3.7 per cent in that order.
But activity level was mixed as volume traded rose 8.0 per cent to 339.7 million shares while value traded fell 15.2 per cent to N6.0 billion. The top traded stocks by volume were Access Bank (133.1 million shares), GTBank (39.3 million shares) and UBA (23.2 million shares) while GTBank (N1.6 billion), Access Bank (N1.4 billion) and Dangote Cement (N911.2 million) were the top traded stocks by value.
Sector performance was mostly bullish as four of the five indices higher. The NSE Industrial Goods Index and NSE Banking Index led with 3.2 per cent apiece.
The NSE Consumer Goods Index followed with 2.7 per cent while the NSE Insurance Index gained 0.2 per cent. On the negative side, the NSE Oil & Gas Index emerged the lone loser shedding 0.6 per cent.
The equities market extended its gains on the third day with the index rising 1.5 per cent to close at 38,435.29. The positive performance was largely due to buying interest in Nigerian Breweries Plc, Dangote Cement and Zenith Bank.
Similarly, market capitalisation added N210.2 billion to close at N13.9 trillion. Also, activity level strengthened as the volume and value traded trended 15.7 per cent and 11.9 per cent higher to 393.1 million shares and N6.7 billion respectively. The top traded stocks by volume were Zenith Bank (110.6 million shares), Fidelity Bank (63.9 million shares) and UBA (22.5 million shares) while Zenith Bank (N3.1 billion), Dangote Cement Plc (N677.5 million) and Seplt Petroleum Development Company Plc (N549.8 million) led the top traded stocks by value.
The market recorded the fourth consecutive gain last Thursday appreciating further by 1.58 per cent to close at 39,042.11, while market capitalisation added N219.8 billion to close at N14.14 trillion.
Sector performance on that day was also mixed as three of five closed bullish . The NSE Industrial Goods Index led the gainers chart for the third consecutive session, up 3.7 per cent. The NSE Consumer Goods Index and NSE Banking Index trailed, increasing 1.0 per cent and 0.1 per cent respectively.
Conversely, the NSE Insurance and NSE Oil & Gas Index shed 0.7 per cent and 0.5 per cent in that order.
Market Turnover
Meanwhile, investors traded 1.749 billion shares worth N31.183 billion in 24,604 deals down from 2.699 billion shares valued at N84.775 billion that exchanged hands in 19,715 deals the previous week.
The Financial Services Industry dominated the activity chart with 1.423 billion shares valued at N19.717 billion traded in 13,950 deals, thus contributing 81.37 per cent and 63.23 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 153.105 million shares worth N6.805 billion in 4,512 deals. The third place was occupied by Conglomerates Industry with a turnover of 60.473 million shares worth N186.600 billion in 905 deals.
Trading in the top three equities namely – Guaranty Trust Bank Plc, Access Bank Plc and Zenith Bank Plc accounted for 588.605 million shares worth N16.568 billion in 4,120 deals, contributing 33.65 per cent and 53.14 per cent to the total equity turnover volume and value respectively.
Price Gainers and Losers
The price movement chart showed that 49 stocks appreciated last week higher than the 25 of the previous week, while 29 equities depreciated in price, lower than 48 equities of the previous week. Japaul Oil led the price gainers with 40.9 per cent, trailed by Prestige Assurance Plc with 39.5 per cent. NASCON Allied Industries Plc c chalked up 17.8 per cent, just as C & I Leasing Plc appreciated by 17.5 per cent.
Dangote Flour Mills Plc and Lafarge Africa Plc and Dangote Sugar Refinery Plc garnered 17.1 per cent, 17 per cent and 14.6 per cent in that order. Other top price gainers include: Fidelity Bank Plc (14.5 per cent); Transnational Corporattion of Nigeria Plc(14.4 per cent) and Nigerian Breweries Plc (13.5 per cent).
Conversely, NPF Microfinance Bank Plc led the price with 14.5 per cent, trailed by Consolidated Hallmark Insurance Plc with 12.9 per cent. First Aluminium Nigeria Plc shed 9.0 per cent, just as LASACO Assurance Plc, Presco Plc 7.8 per cent and 6.2 per cent respectively.
Other top price losers were: May & Baker Nigeria Plc(5.6 per cent); Mutual Benefits Assurance Plc (5.2 per cent); PZ Cussons Nigeria Plc (5.0 per cent); Guineas Insurance Plc and Skye Bank Plc(5.0 per cent apiece).
The Nigerian Stock Exchange (NSE) facilitated the investment of N10.341 trillion in equities and debt bonds in the Nigerian capital market in the last 10 years, data obtained from the NSE has shown.
The data obtained by THISDAY showed that the sum was investment between 2008 and 2017.
An analysis of the figures showed that at N2.379 trillion, 2008 accounted for the highest amount during the period. This was the year when the market experienced an unprecedented boom following the banking sector recapitalisation.
This was closely followed by 2014, when investors traded N1.339 trillion and 2017, which accounted for N1.273 trillion.
The local bourse recorded N1.044 trillion in 2013 and N953 billion in 2015. A total of N797 billion was invested in 2010, just as N686 billion was staked in 2009. The year 2012 accounted for N658 billion, while 2011 recorded N635 billion. Investors traded N577 billion in 2016.
The NSE has been providing a platform for investors to invest in stocks and bonds as well as for corporates and government to raise funds for their operations and developmental projects respectively.
After three years of decline the stock market rebounded last year by gaining 42.3 per cent, while investors traded N1.273 trillion securities.
Also, the exchange ended 2017 with a total income of N8.30 billion, representing a growth of 86 per cent, as against the N4.46 billion in 2016. Also, its operating surplus before tax soared by 5,629 per cent from N27 million to N3.82 billion in 2017.
The Chief Executive Officer of NSE, Mr. Oscar Onyema said: “This positive performance, after the significant headwinds witnessed over the past two years, affirms the resilience of our market and its potential as a catalyst of economic growth in Nigeria and the hub for Africa.
“Focus on executing our robust strategy of cost efficiency, products and revenue diversification, as well as innovative and improved operational delivery, underpins this strong performance.”
Onyema explained that buoyed by improved ease of market entry and exit for foreign portfolio investors, transaction fees jumped by 130 per cent to N3.6 billion in 2017, accounting for 45 per cent of the group’s total income last year.
According to him, listing fees appreciated by 110 per cent from 2016 to the year under review, indicating a revival in primary market activity.
“Last year, we reiterated the need to diversify the exchange’s income streams and I am pleased by the positive results we have recorded in this regard.
“Our market services business consisting of technology and market data services continue to perform impressively. More telling is the fact that market services income has continued to grow despite the market down-cycle which significantly impacted our core trading and listing businesses in 2015 and 2016,” Onyema said.
The green bond market in Nigeria will soon witness a boost as the Securities and Exchange Commission (SEC) preparesto release rules to guide issuance of green bonds in the country.
Green bonds are fixed income, liquid financial instruments used to raise funds dedicated to climate mitigation, adaption and other environment-friendly projects. They provide investors with an attractive investment proposition and an opportunity to support environmentally and socially sound project. The federal government pioneered green bond issuance raising N10 billion.
But in order to make the bond market more attractive, the Acting Director of SEC, Ms. Mary Uduk, said that the commission was in the process of approving green Bonds rules, noting that it would be released to the market in no distance period.
Uduk disclosed this at the Nigerian Green Bond Market Development Programme Launch organised by FMDQ OTC Securities Exchange in Lagos.
“We are in the process of approving the rules and any moment from now they will be released to the market. We are getting inputs rules from stakeholders and participants in the market. You cannot do anything without structures in place. SEC is trying to put up necessary structures that will guide the market when the time comes,” Uduk said.
She said that green bonds would deepen the nation’s capital market, noting that the new product provides enormous opportunities that would turnaround our environment.
According to her, the federal government had set a benchmark for issuance of Green Bonds following successful outing in 2017 unlike Sukuk that was pioneered by a state government.
Uduk said SEC was working with Climate Bonds Initiative, an international organisation with the largest capital market of $100 trillion bond market, for climate change solutions to strengthen internal capacity.
“We don’t want a situation where corporate will want to raise green bonds and it will sit there because there is no internal capacity,” she added.
Meanwhile, the Managing Director/CEO of FMDQ OTC Exchange Securities, the Mr. Bola Onadele.Koko, said that the company had formalised its partnership with the Financial Sector Deepening (FSD) Africa and CBI through the execution of a Cooperation Agreement to support the development of the Nigerian green bond market.
He explained that the partnership would facilitate the establishment and development of a Green Bond market in Nigeria, support the developer TN of guidelines and listing requirements.
Onadele added that it would develop a pool of Nigeria-based licensed verifies to support issuers and develop a pipeline of green investments and facilitate engagement with extant and potential investors.
According to him, it will support broader debt capital markets reforms that have an impact on the non-government bond market in Nigeria.
