MINISTERIAL INAUGURATION: NSE market capitalisation increases further by N135bn

NSE: Market indices extend growth by 0.35%
Written by Maritime First

…As Trade and Investment Minister says FG to deepen FDI impact***

Trading on the Nigerian Stock Exchange (NSE) sustained its bullish trend on Thursday, resulting in N135bn gain, as investors continued to react to the swearing in of new ministers.

The market capitalisation inched N135 billion or 1.01 per cent to close at N13.441 trillion against N13.306 trillion recorded on Wednesday.

Similarly, the All-Share Index which opened at 27,352.94 rose by 276.72 points or 1.01 per cent to close at 27,629.66 due to gains by some blue chips.

Mr Sola Oni, a chartered stockbroker and Chief Executive Officer, Sofunix Investment and Communications, ascribed the upward trend to the swearing in of the ministers as a symbol of commencement of economic recovery.

“Stock market is never static. It responds to companies’ performance either good or bad, demand and supply and speculation, also called market hearsay.

“Beyond this, it aggregates investors’ reaction to information from the economic and political landscape.

“Our market is forward looking and investors buy into future of companies with expectation of better returns.

“But the same investors are ready to offload once they are not comfortable with available piece of information from the political and economic landscape.

“In the process of upswing and downswing, real investors take position, while speculators change position,” Oni said.

Analysts at United Capital Plc said that: “Notably, market participants took the crystalisation of the swearing-in with some positivity, perhaps with the expectation that hastened fiscal policies and implementation of plans might revive the nation’s lack lustre growth.”

The market breadth also closed positive with 22 gainers and 13 losers.

Nestle maintained its dominance, leading the gainers’ table with N20 to close at N1,220 per share.

MTN Nigeria Communications followed with a gain of N2 to close at N138, while Dangote Cement improved by N1 to close at N167 per share.

Stanbic IBTC increased by 70k to close at N35, while Ecobank Transnational Incorporated (ETI) went up by 65k to close at N7.50 per share.

On the other hand, Okomu Oil Palm topped the losers’ chart, dropping by N4.35 to close at N40.15 per share.

MRS trailed with a loss of N2.05 to close at N18.80, while Unilever dipped 90k to close at N27 per share.

NCR lost 55k to close at N4.95, while UPL declined by 16k to close at N1.44 per share.

The banking equities remained the most sought as investors continued to buy into interim dividend payment banks.

Consequently, Zenith Bank emerged investors delight, accounting for 54.31 million shares worth N977.54 million.

Guaranty Trust Bank which recently declared an interim dividend of 30k came second with 38.21 million shares valued at N1.03 billion.

Transcorp traded 32.10 million shares worth N34.06 million, while Flour Mills traded 20.42 million shares valued at N275.68 million.

Ecobank Transnational Incorporated accounted for a total of 18.21 million shares worth N135.01 million.

However, the volume of shares traded closed lower as investors bought and sold 272.60 million shares valued at N4.49 billion in 3,425 deals.

This was in contrast with a total of 363.97 million shares worth N4.52 billion achieved in 3,451 deals on Wednesday.

Also read:  NSE: Investors react positively to ministers’ inauguration

In the meantime, the Minister of Industry, Trade and Investment, Mr Adeniyi Adebayo says the ministry will attract Foreign Direct Investments (FDIs) into the country by stimulating business linkages between large and small enterprises.

Adebayo said this on Thursday in Abuja at a stakeholders’ engagement for the Implementation of “Business Linkage Programme” for Micro, Small and Medium Enterprises (MSMEs) and Multinational Enterprises (MNES)/Large Local Cooperates (LLCs).

The meeting was organised by the Nigerian Investment Promotion Commission (NIPC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to work out strategies for the business linkages.

Adebayo, represented by Mr Olajide Bamidele, the Deputy Director, Investment Promotion department said the ministry, through NIPC and SMEDAN played an intermediary role in a comprehensive approach for promotion of sustainable business linkages.

The legal practitioner said that they would equally provide a combination of advisory (policy oriented) and technical assistance (action oriented) services in the field of FDIs and enterprise development.

“FDI can add little to local development if there is lack of adequately skilled human capital, absorptive capacity in local firms or incentives to transfer technology to local firms.

“There is the need to combine MSMEs support policies with FDIs attraction policies. Well design MSMEs and FDIs policies can ensure that FDIs work for local enterprise development.

He said that stimulating business linkages had been a strategy for building local enterprises that could compete at home and abroad as well as meet employment goals.

“While it is generally accepted that MSMEs are the backbone of the economy, there is the need for coherent and fully worked out policies developed in consultation with the private sector to enhance their growth and survival.

The minister expected that the meeting would assist in uncovering hidden opportunities and business linkages in the MSMEs value chain in Nigeria.

“Successful business linkages therefore involve more than simple matchmaking activities between large and small firms.

“We are aware that business between small and large enterprises particularly TNCs can contribute both to the competitiveness of the enterprises involved and the growth and development of the countàry.

“However, the establishment of a critical mass of sustainable linkages does not happen automatically as a direct consequence of the presence of TNCs, but requires the participation of all stakeholders, government supportive policies, TNCs and MSMEs vision and commitment.

In a keynote address, Dr Umar Dikko, the Director-General, SMEDAN said that the growth of MSMEs were critical and contributed significantly to the strength of the country’s economy.

Dikko who noted that the major challenges of MSMEs were lack of access to finance and market said that SMEDAN would continue to provide enabling environment for them to overcome all the challenges, including skills and equipment challenges.

“As at 2017, we have about 41.5 million MSMEs in Nigeria, about 41.4 million are micro enterprises, which is about 99.8 per cent.

“Micro enterprises employ about 59.6 million people, contribute to about 49.78 per cent of Gross Domestic Product (GDP), and contribute to about 37.64 per cent of export. MSMEs are critical to the Nigerian economy, we need to support them to grow.”




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Maritime First