Economy

Nigerian equities market rebounds with 0.70% growth

NSE: Indices drop by N109bn after Sallah break
Written by Maritime First

…As NCC says Nigeria’s VAS market worth N79bn***

Nigerian equities market on Tuesday closed on an upbeat note with the All-Share Index growing by 0.70 per cent.

The News Agency of Nigeria (NAN) reports that the index rose by 214.27 points or 0.70 per cent to close at 30,822.33 against 30,608.06 on Monday.

Also, the market capitalisation which opened at N11.180 trillion inched higher by N75 billion to close at N11.255 trillion compared with N11.180 trillion on Monday.

Mobil Oil led the gainers’ table with N13. 40 to close at N170 per share.

It was trailed by Dangote Cement with a gain of N4 to close at N189, while Forte Oil appreciated by N2.15 to close at N23.85 per share.

Cement Company of Northern Nigerian garnered N1.70 to close at N18.85, while Guaranty Trust Bank increased by 95k to close at N35 per share.

Conversely, Nigerian Breweries recorded the highest loss, declining by N2.70 to close at N76.70 per share.

Unilever Nigeria came second with a loss of N1.05 to close at N37, while Guinness lost N1 to close at N72 per share.

Access Bank depreciated by 45k to close at N7.70, while Union Bank of Nigeria shed 10k to close at N8 per share.

An analysis of the activity chart indicates that the volume of shares traded grew by 47.09 per cent, while the value increased by 194.22 per cent.

Specifically, investors bought and sold 316.19 million shares valued at N5.09 billion exchanged in 3,445 deals.

This was in contrast with a total of 214.96 million shares worth N1.73 billion traded in 2,975 deals on Monday.

Zenith Bank was the most active stock, trading 102.39 million shares valued at N2.34 billion.

Mansard Insurance followed with an account of 40.06 million shares worth N80.12 million, while Lafarge Africa traded 25.91 million shares valued at N309.47 million.

Access Bank exchanged 22.21 million shares worth N179.12 million, while Guaranty Trust Bank sold 15.97 million shares valued at N553.78 million. 

Meanwhile, the Nigerian Communications Commission (NCC) has said that Nigeria’s Value Added Service (VAS) market is presently valued at N79billion ($220 million).

The commission’s Director of Compliance Monitoring and Enforcement, Mr Efosa Idehen, made this known during the 2nd Value Added Service (VAS) Stakeholders Forum on Tuesday in Lagos.

Idehen said that VAS was an important component of the Nigerian telecommunications ecosystem necessary for optimising the benefits of telecommunication services to consumers.

He added that VAS was non-core service, which were all services beyond standard voice calls, SMS and data products.

According to him, VAS enables mobile network operators to develop additional revenue streams and can be used in any service industry for services available at little or no cost to promote their primary business

“The Nigeria VAS market, which is presently valued at about N79 billion ($220 million) is estimated to grow to about $500 million in 2021.

“The recent reform the commission embark on in the VAS segment of the market is a further recognition of significant role of VAS in the entire telecommunications ecosystem,” he said.

The director said that like every services, there were both positive and negative impact of VAS on consumers but the positives far outweighed the negatives.

He said that the commission therefore deemed it fit to find a balance between enabling the opportunities that the VAS providers offered toconsumers while at the same time mitigating the challenges or inconveniencethey could constitute to other consumers.

According to him, in finding a balance, service providers are licensed by the commission and are allowed to operate and provide valueadded services to consumers.

He added that “consumers are empowered through the Do Not Disturb (DND) facility to choose whether to allow or block access to these services on a full or partial basis.

”Consumers have been at the receiving end of unsolicited messages, fraudulent deduction of consumers’ credit for VAS not subscribed for,among others.

”And subscribers are asking if what the telecommunications companies and their third parties are adding is ‘value’ or ‘pain’ services,” he said.

Idehen said that with that in mind, NCC introduced the DND number 2442, which empowered consumers to block all unsolicited messages and VAS services.

He said that the commission issued a direction requesting that network providers should ensure that information on the DND service bedisseminated after every revenue generating activity via the End of CallNotification (EOCN).

The director said that the EOCN would run for the period not less than 45 days and within the hours of 8am to 8pm daily from the receipt of the latest letter on the subject.

The channels of communications include websites, social media platforms, bill boards, flash messages, text messages, Interactive Voice Response platform, radio jingles, newspapers advertisements and television commercials. 

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Maritime First