Saturday, April 17African Business News
Shadow

Capital Market

Bears regain dominance as index plunges by 0.17%

Bears regain dominance as index plunges by 0.17%

Capital Market
Following losses suffered by most blue-chip stocks, the bears upstaged the bulls on the Nigerian Exchange Limited (NGX), causing the All-Share Index (ASI) to depreciate further by 0.17 per cent.     ASI decreased by 64.26 absolute points, representing a decline of 0.17 per cent to close at 38,571.89 points while market capitalisation declined N34 billion to close at N20.186 trillion. The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Unilever Nigeria, Lafarge Africa, Northern Nigeria Flour Mills (NNFM), PZ Cussons Nigeria, and Union Bank of Nigeria.Analysts at Vetiva Dealing and Brokerage said: “We foresee a tepid close to trading activity this week, as investors remain on the sidelines awaiting catalysts to drive further market acti...
SEC lists benefits of non-interest capital market

SEC lists benefits of non-interest capital market

Capital Market
The Securities and Exchange Commission (SEC) has described the non-interest capital market sector as a unique asset class that is capable of deepening the financial system and stimulating economic growth.   This was stated by the Director-General of the Commission, Lamido Yuguda, at a four-day executive programme on non-interest (Islamic) capital market (NICM) products and basic accounting treatment webinar, organised by the Islamic Financial Services Board (IFSB) and the Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) based in Bahrain. Non-interest finance is a series of financial products developed to meet the requirements of a specific group of investors. Yuguda said the recent sukuk bonds issued by the Nigerian Debt Managemen...
Net value of listed mutual funds hits N1.24tr

Net value of listed mutual funds hits N1.24tr

Capital Market
The Net Asset Value (NAV) of 56 mutual funds listed on the Nigerian Stock Exchange (NSE) rose from N1.24 trillion at the end of 2020. This figure represents 88.3 per cent of the total NAV in the Nigerian capital market. The Divisional Head, Listings Business, NSE, Olumide Bolumole stated this at the exchange’s digital closing gong ceremony to commemorate the election of Mrs. Tope Omojokun as the President, Fund Managers Association of Nigeria (FMAN). According to him, the number of registered mutual funds with the Securities and Exchange Commission (SEC) also grew from 76 in 2019 with NAV of N600 billion to 102 with NAV of over N1.43 trillion in 2020. Bolumole said the increase in the number of listed funds and the value confirms the NSE as the preferred listing destination for the ass...
Stock market reverses gains as index drops by 0.59%

Stock market reverses gains as index drops by 0.59%

Capital Market
The Nigerian Stock Exchange (NSE) has reversed positive sentiment to close on a downturn yesterday as the shares of Nestle Nigeria and 25 others decline, leading to a fall of the All-Share Index (ASI) by 0.59 per cent.    At the close of trading, ASI contracted by 234.01 absolute points, representing a decrease of 0.59 per cent to close at 39,697.62 points while the overall market capitalisation value lost N122 billion to close at N20.77 trillion.    The downturn was driven by price depreciation in large and medium capitalised stocks including Nestle Nigeria, Flour Mills of Nigeria, Ardova Plc, Lafarge Africa and Unilever Nigeria. Analysts at Vetiva Dealing & BrokerageAs measured by market breadth, market sentiment was negative, as 26 stocks declined relative to 18 gainers. Academy...
Stock market reverses gains amid profit-taking

Stock market reverses gains amid profit-taking

Capital Market
After days of an upward trend, the bears seized control of the Nigerian Stock Exchange (NSE) yesterday leading to price losses suffered by some blue-chip stocks. This resulted in the market capitalisation depreciating by N65 billion.  Total capitalisation plunged by N65 billion to close at N20.978 trillion from N21.043 trillion traded the previous day. The All-Share Index (ASI) also depreciated by 0.31 per cent or 125.81 points to close at 40095.49 points, from 40221.30 points reported on Wednesday.  Analysts attributed the drop in the indices to profit-taking by investors, saying the trend would be sustained as investors move to leverage the moderate appreciation recorded in the last few days.  Investors traded 326.042 million shares valued at N3.713 billion in 4567 deals against ...
Operators renew call for IPOs in capital market

Operators renew call for IPOs in capital market

Capital Market
With the gradual return of bulls to the stock market, operators have renewed call for the government to develop focused strategies targeted at boosting operations of listed firms, to stimulate investments and sustain the current rally in the market. The operators, who spoke against the backdrop of an unprecedented rally witnessed in the market since the second quarter of 2020, maintained that this is the appropriate time for the government to implement policies that would help revive the primary market segment and attract new issues into the market. According to them, initial public offerings (IPOs) will boost investment interest and stock market average in terms of volume of activities and contributions to the gross domestic product (GDP), which is currently rated low when compared t...
Investors’ appetite for high dividend stocks pushes index by 2.63%

Investors’ appetite for high dividend stocks pushes index by 2.63%

Capital Market
The nation’s stock market closed transactions for the second trading week of the year on a high note, as the market continued to record an early boom, following investors’ increased appetite for stocks with attractive yields ahead of the full Year 2020 dividend declarations. Last week, the Nigerian Stock Exchange (NSE) recorded gains in all the trading sessions of the week with the All-share index and market capitalisation appreciating by 2.63% to close the week at 41,176.14 and N21.530 trillion, respectively. Similarly, all other indices finished higher with the exception of NSE Growth which depreciated by 3.32% while the NSE ASeM Index closed flat. Analysts at the weekend expressed optimism on a sustained bull run, as investors target blue-chip and undervalued ...
Hope for single African market in 2021 as borders open for AfCFTA

Hope for single African market in 2021 as borders open for AfCFTA

Capital Market
As expectations are high about the reopening of more land borders to regional trade this week, the country would address hiccups in its trade policies to optimize the benefits of the African Continental Free Trade Area (AfCFTA) scheduled to take off January 1, 2021.   The Federal Government recently reopened four borders – Seme border in the South West, Illela and Maigatari border in the North West and Mfun in the South South with optimism that others would be reopened on December 31. This action would enable Africa’s largest economy to participate fully in the long-awaited Africa’s single market. The border closure, which lasted for 16 months, posed different challenges to cross-border traders, corporate entities and private engagements around the regional line. On No...
Stock market ends November bullish as index

Stock market ends November bullish as index

Capital Market
Exchange migrates four companies to growth board Following gains recorded by most blue-chip stocks, the equity market ended trading for the month of November, bullish, as the All-Share Index (ASI) appreciated by N82 billion. The ASI gained 156.63 absolute points, or 0.45 per cent to close at 35,042.14 points. Similarly, the market capitalisation also appreciated by N82 billion to close at N18.310 trillion. Yesterday’s uptrend was driven by price appreciation in medium and large capital stocks, including Airtel Africa, MTN Nigeria Communications (MTNN), Aiico Insurance, and FCMB Group. Analysts at United Capital Plc predicted mixed performance with a bearish bias in the equity market, as investors book profits and hunt for bargains. However, sentiment, as measured by market bre...