Economy

NSE: Market bearish, Airtel leads losers pack as investors forfeit N81bn

NSE: Trading maintains bearish trend, investors lose N24 billion as indices down by 0.19%
Written by Maritime First

…CBN warns bureau de change operators against money laundering, terrorism***

The Nigeria equities market further dipped on Tuesday due to huge loss reformed by Airtel Africa Plc., after Airtel recorded its highest loss of 10 per cent, to close at N283.50 per share and market capitalisation lost of N81 billion.

UACN Property Development Company followed with a decline of 9.55 per cent to close at N1.42, while NCR Nigeria lost 9.09 per cent to close at N4.50 per share.

Courteville Business Solution dipped 8.70 per cent to close at 21k, while Continental Reinsurance shed 6.67 per cent to close at N1.40 per share.

Consequently, the All-Share Index which opened at 27,574.32 shed 168.28 points or 0.61 per cent to close at 27,407.04.

Similarly, the market capitalisation lost N81 billion to close at N13.342 trillion compared with N13.423 trillion achieved on Monday.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are: Airtel Africa, Flour Mills of Nigeria, NCR Nigeria, Custodian Investment and Zenith Bank.

Analysts at Afrinvest Limited said: “In line with our expectations, we believe the bearish momentum will persist due to weak investors’ appetite toward the domestic equities market.”

However, market breadth closed positive, with 22 gainers against 15 losers.

Conversely, NEM Insurance recorded the highest price gain of 9.47 per cent to close at N2.14 per share.

Livestock Feeds came second with 9.52 per cent to close at 46k, while PZ Cussons Nigeria appreciated by 9.32 per cent to close at N6.45 per share.

Cornerstone Insurance went up by 9.09 per cent to close at 36k, while Chams appreciated by 8.33 per cent to close at 26k per share.

The total volume traded dropped 26.2 per cent with an exchange of 198.03 million shares, worth N2.9 billion traded in 3,830 deals.

This was against a turnover of 271.24 million shares valued at N2.N283 billion transacted in 4,795 deals on Monday.

The banking stocks remained the most traded with Access Bank leading the activity chart with 57.82 million shares worth N434.19 million.

Also read:  NSE: Unity Bank, Airtel Africa lead losers’ chart, as investors’ net worth dipped by N90 billion

Zenith Bank followed with 19.99 million shares valued at N382.23 million, while Sterling Bank accounted for 10.37 million shares worth N23.46 million.

FBN Holdings sold 10.36 million shares valued at N55.92 million, while United Bank for Africa (UBA) transacted 9.32 million shares worth N59.79 million.

In the meantime, the Central Bank of Nigeria (CBN), on Tuesday, charged operators of bureaux de change to curb money laundering and terrorism by operating in accordance with the rules of the business.

Mr Kayode Asanmo, the CBN Deputy Director, Banking Supervision, disclosed this during a sensitisation programme in the South –South and South-East zones, in Port Harcourt.

The programme, with the theme “Sensitization Visit of the Financial Action Task Force Teams on Mutual Evaluations”, was organised by the Association of Bureaux de Change of Nigeria (ABCON).

Asanmo, who represented Dr Aminu Gwadabe, the President of ABCONat the occasion, said that the programme had taken place in the North-East, North-West, North-Central, Kano and Lagos.

“This sensitisation programme is to prepare operators ready for the mutual evaluation team that would be coming to Nigeria anytime from now.

“We want to make sure that the operators are in compliance with the rules of the bureaux de change business to make sure we are not in the high risk of money laundering and terrorism when the evaluation is done.

“If we are successful during the evaluation, this has implication for our economy; it has implication for foreign investment inflow while it is also positive on our correspondent banking relationship.

“We urge the operators in this business to know their customers, conduct due diligence, know their names, their businesses, sources of their money and the businesses they want to use the money they are changing to do”, he said.

Asanmo advised the operators to do legitimate business with legitimate customers, keep good records and maintain internal control system.

Similarly, Mr Okeke Nchekwube, one of the ABCON Trustees from South East, said that the programme would help government to curb money laundering and terrorism, if sustained.

Nchekwube called on government to stop roadside operators without registration and necessary licence from doing bureau de change business.

Mr Mohammed Ogboanor, the Chairman South-South zone of ABCON, commended the Federal Government, the CBN, EFCC and other agencies for their collaboration to see that money laundering and terrorism were curbed in Nigeria.

Also, Mr Randle Adewole, the Branch Comptroller of CBN in Port Harcourt, said that the programme would help to remind the operators against breaching the rules of bureau de change on money laundering and also help in growing the economy.

 

 

About the author

Maritime First

Leave a Comment