…As NSE, LuxSE sign MoU on Green bond, to promote cross listing***
The market capitalisation of the Nigerian Stock Exchange (NSE) on Wednesday lost over N103 billion and dropped to N12 trillion, amid huge sell off of stocks of blue chip companies.
Specifically, the market capitalisation lost 0.79 per cent to close at N12.948 trillion against N13.051 trillion recorded on Tuesday. The All-Share Index, which also opened at 26,809.92 shed 210.98 points or 0.79 per cent to 26,598.94.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Dangote Cement, Guinness Nigeria, Nigerian Breweries and Presco.
The market recorded 12 gainers as against15 losers.
Learn Africa recorded the highest price gain in percentage terms to lead the gainers’ table with 9.80 per cent to close at N1.12 per share.
Chams and Cornerstone Insurance followed with a gain of 8.33 per cent each, to close at 26k and 39k per share respectively.
Jaiz Bank went up by 4.26 per cent to close at 49 kobo, while Access Bank appreciated by 2.80 per cent to close at N7.35, per share.
On the other hand, PZ led the losers’ chart decreasing by 10 per cent, to close at N6.30 per share.
NCR followed with a decline of 9.09 per cent to close at N4.50, while Guinness went down by 7.69 to close at N30 per share.
United Capital dipped 6.98 per cent to close at N2, while Neimeth International Pharmaceuticals shed 6.52 per cent to close at 43k per share.
However, the total volume closed on an upbeat note as investors bought and sold 591.04 million shares worth N7.398 billion in 2,907 deals.
This was in contrast with 151.71 million shares valued at N1.13 billion exchanged in 2,854 deals on Tuesday.
Transactions in the shares of Custodian Investment topped the activity chart with 348.05 million shares valued at N2.52 billion.
Access Bank followed with 52.58 million shares worth N383.44 million, while Lafarge Africa sold 28.15 million shares valued at N450.35 million.
Guaranty Trust Bank traded 21.84 million shares valued at N583.12 million, while Guinness Nigeria transacted 20.23 million shares worth N607.01 million.
Meanwhile, the Nigerian Stock Exchange (NSE) and the Luxembourg Stock Exchange (LuxSE) have signed a Memorandum of Understanding (MoU) to promote cross listing and trading of green bonds in Nigeria and Luxembourg.
The NSE said the MoU was signed at the annual meeting of the World Federation of Exchanges in Singapore on Wednesday.
The MoU further established an agreement for the two exchanges to collaborate with a view to sharing best practises and organising joint initiatives in their respective markets, the NSE noted in a statement in Lagos.
Mr Oscar Onyema, NSE’s Chief Executive Officer, was quoted as saying that the partnership reinforced its drive to foster the growth of sustainable finance in Nigeria.
“With the MoU, issuers will enjoy the benefit of increased visibility through the cross listing of their securities in Nigeria and Luxembourg.
“The partnership will further facilitate the growth of the Green Finance industry in Nigeria and ultimately deepen the Nigerian capital market through the mobilisation of the foreign green capital needed to fund sustainable projects in Nigeria,” Onyema said.
Mr Robert Scharfe, Chief Executive Officer, LuxSE also said sustainable finance was becoming a truly global movement.
“By joining forces with other exchanges to promote and facilitate green finance, we strive to accelerate the sustainable finance agenda and increase awareness of and interest in investment projects that support the sustainable development.
“We are pleased to cooperate with the Nigerian Stock Exchange to further strengthen sustainable finance in and between our markets,” Scharfe said.
The Nigerian Green bond market received international recognition following the issuance and listing of the ₦10.69bn Federal Government sovereign green bond in December 2017.
This issuance sparked significant interest from the international and local capital market communities as it opened new investment opportunities, especially for domestic investors.
It also increased their exposure to financial instruments that generate social and environmental impact.