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Stock market extends losses as capitalisation dips further by N301b

The Nigerian Exchange Limited (NGX) extended losses to three consecutive trading days to close on a downturn, yesterday, causing market capitalisation to plunge by N301 billion.

At the close of transactions, the all-share index (ASI) decreased by 577.43 absolute points, representing a decline of 1.48 per cent to close at 38,445.09 points. Also, market capitalisation of listed equities dropped by N301 billion to close at N20.038 trillion.

The market decline was driven by price depreciation in large and medium capitalised stocks including Airtel Africa, BOC Gases, Dangote Cement, Dangote Sugar Refinery and Northern Nigeria Flour Mills (NNFM).

Analysts at Afrinvest Limited said: “In the coming trading session, we expect the local bourse to extend the bearish performance.”

As measured by market breadth, market sentiment closed negative, as 25 stocks declined relative to 23 gainers.

MRS Oil Nigeria and Seplat Petroleum Development Company (SEPLAT) recorded the highest price gain of 10 per cent each to close at N12.10 kobo and N682 while Sterling Bank followed with a gain 9.74 per cent to close at N1.69 kobo.

Japaul Gold and Ventures rose by 9.62 per cent to close at 57 kobo, while Regency Alliance Insurance appreciated by 8.82 per cent to close at 37 kobo.

On the other hand, C&I Leasing and Airtel Africa led the losers’ chart by 10 per cent each to close at N4.50 kobo and N837 while BOC Gases followed with a decline of 9.96 per cent to close at N11.03 kobo.

Royal Exchange shed 9.64 per cent to close at 75 kobo, while NNFM depreciated by 8.94 per cent to close at N5.60 kobo.

Meanwhile, the total volume of trades decreased by 24.9 per cent to 153.643 million units, valued at N2.446 billion and exchanged in 3,494 deals.
Transactions in the shares of UAC of Nigeria (UACN) topped the activity chart with 10.013 million shares valued at N103.442 million.

Zenith Bank followed with 9.639 million shares worth N222.847 million, while Fidelity Bank traded 8.745 million shares valued at N19.839 million.

Transnational Corporation of Nigeria (Transcorp) traded 8.708 million shares valued at N7.775 million while Access Bank transacted 7.714 million shares worth N63.554 million.

Financial stocks contribute 64.38% to market turnover

The financial services industry dominated in terms of volume at the end of last week’s transactions on the floor of the Nigerian Exchange Limited (NGX).
It led the activity chart with 541.015 million shares valued at N5.493 billion, trading in 7,824 deals, thus contributing 64.38 per cent to the total equity turnover.

The ICT Industry followed with 90.382 million shares worth N571.642 million in 500 deals, while the conglomerate industry ranked third with a turnover of 84.792 million shares worth N512.775 million in 551 deals.

Trading in the top three equities: Access Bank Plc, Zenith Bank Plc and Etranzact International Plc accounted for 284.924 million shares worth N3.470 billion in 2,533 deals, contributing 33.91 per cent to the total equity turnover volume.

Besides, the NGX all-share index (ASI) and market capitalisation appreciated by 0.72 per cent to close the week at 39,481.89 and N20.579 trillion, despite the two-day holiday declared to commemorate the Eid al-Fitr.

Similarly, all other indices finished higher with the exception of NSE Sovereign Bond Index which depreciated by 10.69 per cent, while the NSE ASeM and NSE Growth Indices closed flat.

Consequently, a total turnover of 840.334 million shares worth N9.561 billion was recorded in 13,239 deals by investors on the floor of the Exchange, in contrast to a total of 1.419 billion shares valued at N15.918 billion that changed hands in 18,459 deals in the preceding week.

A review of market performance last week showed that following gains recorded by most blue-chip stocks, the NGX reopened in an upbeat on Monday, as market capitalisation gained N60 billion.

The ASI increased by 113.99 absolute points, representing a growth of 0.29 per cent to close at 39,312.74 points while the overall market capitalisation rose by N60 billion to close at N20.491 trillion.

The upturn was driven by price appreciation in large and medium capitalised stocks amongst which are; Zenith Bank, Guaranty Trust Bank, Okomu Oil, Africa Prudential and Lafarge Africa.

Trading activities on the NGX extended bullish run to two consecutive trading sessions on Tuesday, as investors’ wealth appreciated further by N36 billion.

The improved performance was spurred by investors’ sustained appetite in the shares of Dangote Cement and 20 others.

The ASI increased by 70.22 absolute points, representing a growth of 0.18 per cent to close at 39,382.96 points while market capitalisation value gained N36 billion to close at N20.527 trillion.

Stock market reopens upbeat as capitalisation rises by N60 billion

Following gains recorded by most blue chip stocks, the Nigerian Exchange Limited (NGX) reopened in uptrend yesterday, as market capitalisation gained N60 billion.

Yesterday, the All-Share Index (ASI) increased by 113.99 absolute points, representing a growth of 0.29 per cent to close at 39,312.74 points while the overall market capitalisation rose by N60 billion to close at N20.491 trillion.

The upturn was driven by price appreciation in large and medium capitalised stocks amongst which are; Zenith Bank, Guaranty Trust Bank, Okomu Oil, Africa Prudential and Lafarge Africa.

Analysts at United Capital Plc said: “We expect the overall theme of the market to tilt towards the bears, considering the anticipated NTB auction scheduled to hold later in the week. However, following profit-taking last week, we expect investors to pick up attractive stocks on the dip in the earlier trading sessions.”

Consequently, the market breadth closed positively, recording 28 gainers against 15 losers.

Associated Bus Company and Regency Alliance Insurance recorded the highest price gain of 9.68 per cent each to close at 34 kobo each, while Union Bank of Nigeria (UBN) followed with a gain 9.26 per cent to close at N5.90 kobo.

Linkage Assurance rose by 8.70 per cent to close at 75 kobo, while Mutual Benefits Assurance and Africa Prudential gained 8.11 per cent each to close at 40 kobo and N6.00 kobo.

On the other hand, Unity Bank led the losers’ chart by 8.33 per cent to close at 55 kobo, per share. Japaul Gold and Ventures followed with a decline of 6.67 per cent to close at 56 kobo, while Neimeth International Pharmaceuticals lost 6.04 per cent to close at N1.71 kobo.

Flour Mills of Nigeria lost 4.84 per cent to close at N29.50, while Chams Plc and Nigerian Aviation Handling Company (NAHCO) shed 4.55 per cent each to close at 21 kobo and N2.10 kobo .

The total volume of trades increased by 35.68 per cent to 324.187 million units, valued at N3.281 billion, and exchanged in 4,867 deals.

Transactions in the shares of eTranzact International topped the activity chart with 72.176 million shares valued at N162.396 million.

Zenith Bank followed with 44.001 million shares worth N1.015 billion, while Access Bank traded 22.979 million shares valued at N189.174 million.

United Bank for Africa (UBA) traded 16.585 million shares valued at N119.353 million, while AXA Mansard Insurance transacted 16.43 million shares worth N14.202 million.

Shareholders commend Union Bank’s profitability, approve dividend

Union Bank of Nigeria Plc yesterday, held its 52nd yearly general meeting with its shareholders approving the Group’s 2020 annual accounts.

Chairman of the board, Beatrice Hamza Bassey highlighted key achievements of the bank in 2020, including the continued focus on digital innovation, the bank’s multipronged approach to supporting the fight against COVID-19 and providing support to enable over 70 per cent of the employees to work from home

Bassey said: “Our commitment to delivering high-quality earnings remains unwavering. I am pleased to announce that the bank delivered a resilient set of results in 2020 notwithstanding the challenging macroeconomic operating environment. Our overall performance demonstrates our resilience and ability to adapt to the constantly changing business environment to maximise shareholder returns. We remain committed to delivering value to our shareholders as we continue to drive growth and profitability of our business.”

Shareholders at the AGM approved the recommended dividend of 25 Kobo per ordinary share while applauding the bank’s resilience despite the hard times.

A study of the bank’s financial performance in 2020 shows that profit before tax (PBT) grew by 2.8 per cent to ₦N25.4 billion, from ₦N24.7 billion posted in 2019.

Customer deposits also increased by 27.6 per cent to ₦1.13 trillion billion compared to ₦886.3 billion recorded in 2019, reflecting the bank’s ability to deliver a compelling range of products to its customers during the pandemic, and increased adoption of digital channels.

Non-performing loans ratio reduced to four per cent from 5.8 per cent in 2019, driven by a disciplined recovery strategy, a more robust loan book and key restructuring to support customers during the pandemic.

Commenting on the bank’s performance for 2020 and plans for 2021, the Chief Executive Officer, Mr. Emeka Okonkwo, said: “In 2020, despite the headwinds caused by the pandemic, Union Bank delivered a strong performance that has enabled the board of directors to propose a dividend payment for the second consecutive year. This indicates resilience and affirms the strong foundation that was rebuilt over the past eight years.”

Nigeria’s External Reserves Drops by $314.67m In Two Weeks

Nigeria’s external reserves dropped by $314.67 million or 0.89 percent in about 13 days, the latest data from the Central Bank of Nigeria (CBN) website on Friday has shown.

The statistics on the movement of external reserves indicated that the balance in Nigeria’s reserves is $34.94 billion as of April 28, 2021, compared with $35.25 billion on April 16, 2021.


The development has been attributed to rising demand for foreign exchange by importer and investors who want to repatriate their profits.

Before now, the foreign reserves have been on the upward trend due to different initiatives introduced by the financial regulator to shore up forex reserves.

One of such initiatives, the ‘Naira 4 Dollar Scheme’ which will end on May 8, 2021, was introduced to encourage Diaspora remittances.

READ ALSO: CBN Reinstates Sola Adeduntan As First Bank MD, Removes FBN Limited, FBN Holdings Directors

According to the initiative, all recipients of Diaspora remittances through CBN’s International Money Transfer Operators (IMTO) will be paid N5 for every $1 received as remittance inflow.


The CBN described the initiative as an incentive for both senders and recipients of Diaspora remittances, in the circular signed by the Director, Trade and Exchange Department at CBN, A.S Jibrin.

The financial regulator said the initiative would sustain and encourage increase in inflows of Diaspora remittances into Nigeria.