Communication Economy

NSE Profit taking: Investors net worth drop further by N110bn

NSE indices record 0.21% loss, sheds N28 billion
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Written by Maritime First

…As NCC remits N51.3bn to FG, saying active mobile lines now over 173.6m***

The Nigerian equities market opened trading for the week on Monday on a negative mood with the market indicators shedding 0.79 per cent, or N110 billion.

Specifically, the market capitalisation shed N110 billion to close at N13.812 trillion compared with N13.922 trillion achieved on Friday.

Also, the All-Share Index which opened at 28,566.79 dipped 225.76 points or 0.79 per cent to close at 28,341.03, following price loses.

Investors traded 175.168 million shares worth N2.144 billion in 3111 deals against 100.373 million shares valued at N1.459 billion exchanged hands the previous day in 2,707 deals.

A breakdown of the price movement chart indicates that Total recorded the highest loss to lead the losers’ chart with N10 to close at N130 per share.

Also read:  Bearish trend persists on NSE, market capitalisation loses N265bn

Dangote Cement trailed with a loss of N3 to close at N170, while Guaranty Trust Bank dipped by 90k to close at N29 per share.

MTN Nigeria Communications decreased by 65k to close at N129, while Eterna was down by 25k to close at N3.40 per share.

Conversely, Nestle led the gainers’ table, increasing by N3 to close at N1,228 per share.

Nigerian Breweries followed with a gain of 50k to close at N58.50, while Conoil appreciated by 40k to close at N20.40 per share.

Vitafoam added 16k to close at N3.70, while Dangote Flour gained 10k to close at N17.50 per share.

In spite of the drop in market indices, the volume of shares traded closed higher as investors bought and sold 175.17 million shares valued at N2.14 billion in 3,111 deals.

This was in contrast with a turnover of 100.37 million shares worth N1.46 billion traded in 2,707 deals on Friday.

Wapic Insurance was the toast of investors for the day, exchanging 42.03 million shares valued at N16.81 million.

United Bank for Africa followed with an account of 24.24 million shares worth N141.95 million, while Guaranty Trust Bank sold 16.04 million shares valued at N478.82 million.

Lasaco Insurance traded 15.11 million shares worth N4.68 million, while Transcorp accounted for 14.61 million shares valued at N15.02 million. (NAN)

In the meantime, the Nigerian Communications Commission (NCC) has remitted N51.3 billion to the Federal Government’s Consolidated Revenue Fund (CRF) in the first quarter of 2019, saying active mobile lines networks has crossed the 173.6 million mark.

The commission highlighted this in a statement signed by its Director, public affairs, Mr. Henry Nkemadu, on Monday in Abuja.

Nkemadu quoted NCC’s Executive Vice Chairman, Prof. Umar Danbatta, as saying that the remittance was in compliance with the Fiscal Responsibility Act (FRA) of 2007.

Danbatta explained that the payment represents “Payment on Account” in respect of operating surplus of N44 billion and N7.3 billion spectrum assignment fee collected, which were due for remittance at April 30, 2019.

He said that according to the FRA 2007, such payments were to be made every year after preparation of audited Accounts.

Danbatta stated that section 22, sub-section 1 of the Act states, “Notwithstanding the provisions of any written law governing the Corporation, each Corporation shall establish a general reserve fund.

“And shall allocate thereto at the end of each financial year, one fifth of its operating surplus for the year.”

Section 22, sub-section 2 of the Act states further that, “The balance of the operating surplus shall be paid into the Consolidated Revenue Fund (CRF) of the government not later than one month following the statutory deadline for publishing each Corporation’s Account.”

He said that aside from remitting the operating surplus, section 17, sub-section 3 of the Nigerian Communication Act (NCA, 2003) also stipulates that spectrum assignment fees generated would be remitted 100 per cent to the government.

“The Section states: “the Commission shall pay all monies accruing from the sales of Spectrum under Part 1 of Chapter VIII into the Consolidated Revenue Fund (CRF).”

Danbatta said that the commission had taken the initiative to be making payments into the account as it generates revenue.

He said that through effective regulatory oversight by the Commission, telecommunications sector had witnessed phenomenal growth since 2001, making it an enabler of economic growth and development in the country.

According to him, to date, telecoms industry has positively impacted all the sectors of the economy including banking, healthcare, commerce, transportation, agriculture, education and so on, with increased

“The latest data released by the National Bureau of Statistics (NBS) showed that the telecoms industry contributed 10.11 per cent to Nigeria’s Gross Domestic Product (GDP) in the first quarter of 2019.

“This represents a 0.92 per cent increase from the first quarter of the last year. This year’s first quarter contribution is also 0.26 per cent more than the figure (9.85 per cent) recorded in the last quarter of 2018.

“From 2001 till date, telecoms investment has increased tremendously from $500 million to over $70 billion.

“The Commission intensifies measures aimed to further facilitate investment growth in telecoms infrastructure to drive the economy, especially through the licensed Infrastructure Companies (InfraCos).

He said the commission had increased broadband penetration to 33.13 per cent as at end of May, 2019, through painstaking implementation of the 8-Point Agenda with the need to facilitate broadband development topping the agenda.

Danbatta stated that as at May, there were over 173.6 million active mobile lines across mobile networks, corresponding to a teledensity of 90.98 per cent Internet subscriptions which stood at 122.6 million up from 119 million in April.

 

 

 

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Maritime First