…As CIBN boss says Nigeria’s economic growth in 2020 may not reach 3%***
The Nigerian Stock Exchange (NSE) market capitalisation on Thursday hits N15.164 trillion following the listing of BUA Cement Plc’s shares.
The exchange admitted BUA Cement’s 33.86 billion Ordinary Shares of 50k each N35 per share on its daily official list.
The listing added a total of N1.18 trillion to the NSE market capitalisation making BUA Cement the third largest company on the bourse.
Consequently, the market capitalisation inched N1.38 trillion to close at N15.164 trillion against N13.787 trillion achieved on Wednesday.
The exchange has maintained a bullish run since the beginning of 2020 due to investors enhanced interest in value stock ahead of 2019 financials.
Also, the All-Share Index increased by 833.09 points or 2.92 per cent to close at 29,395.57 against 28,562.48 on Wednesday.
The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are: Dangote Cement, MTN Nigeria, Presco, Guaranty Trust Bank and Lafarge Africa.
Analysts at Afrinvest Ltd., restated that “Following the recent trend in the market, we maintain our bullish outlook on the market this week.”
Market breadth closed positive with 22 gainers and 21 losers.
Champion Breweries and Sovereign Trust Insurance topped the gainers’ chart in percentage terms, growing by 10 per cent each to close at 99k and 22k per share respectively.
Presco trailed with a gain 9.71 per cent to close at N57.05 per share.
Wapic Insurance improved by 8.57per cent to close at 38k, while Consolidated Hallmark Insurance appreciated by 7.69 per cent to close at 42k per share.
Conversely, Unity Bank led the losers’ chart in percentage terms, dropping by 10 per cent to close at 72k per share.
UPDC Real Estate Investment Trust (UPDCREIT) and Union Dicon Salt followed with a decline of 9.88 per cent each to close at N3.65 and N10.95 per share, respectively.
Cornerstone Insurance dipped 8.70 per cent to close at 63k, while DN Meyer shed 8.41 per cent to close at 50k per share.
However, the total volume traded decreased by 6.56 per cent with a total of 693.19 million shares worth N7.45 billion traded in 6,634 deals.
This was in contrast with a turnover of 741.82 million shares valued at N9.22 billion in 7,622 deals on Wednesday.
Transactions in the shares of Wapic Insurance topped the activity chart with 190.10 million shares worth N68.48 million.
Transcorp sold 82.82 million shares valued at N89.81 million, while Zenith Bank traded 80.78 million shares worth N1.77 billion.
FBN Holdings accounted for 41.62 million shares valued at N315.60 million, while United Bank for Africa transacted 39.73 million shares worth N336.99 million.
In the meantime, Dr Uche Olowu, the President of the Chartered Institute of Bankers of Nigeria (CIBN), on Thursday said Nigeria’s economy, in 2020, might record a gradual growth in its Gross Domestic Product (GDP) that would not be up to three per cent.
Olowu, said this at a forum on 2020 Economic Outlook, organised by the Finance Correspondents Association of Nigeria (FICAN), in conjunction with Polaris Bank, in Lagos.
He said the Nigeria’s GDP growth rate might increase from the present 2.4 per cent to 2.6 per cent.
The forum also reviewed the economic activities and policies in 2019, as well as its implementation and impact on people and the country in general.
Olowu said that inflationary pressure might also continue as a result of the approval and implementation of the new minimum wage which could lead to increase in consumer spending.
He, therefore, called on the federal government to allow the private sector to participate more in the national development.
According to him, the public sector alone can not provide the growth needed.
Olowu said: “The only way we can boost the country’s economic growth is to be market oriented; that is, by allowing the private sector to do more.
“There is no way the public sector can sustain the rebuilding of this economy.
“We need a level playing field, a healthy competition that will be fair, transparent and open to rule of law.
“If this is done, we will be able to get it right.”
Olowu said it would be better if the government embarked on domestic borrowing, as it was attractive because of the low interest rate, following increase in Loan to Deposit Ratio (LDR), recently raised to 65 per cent.
According to him, this will help to grow the economy.
The CIBN boss said the basic model to economic growth was having access to credit.
He also said the economy needed sufficient growth drivers that would balance development.
Olowu urged government to confront reality and ensure development was more inclusive and balanced.
The financial expert said that there was the need for government to find a way of diversifying the economy, even though, oil continued to have a major role to play in her economy.
Olowu suggested that subsidy should be given for production and not for consumption.
“What this means is that you incentify the people, create a level playing field that will enable economic actors and inspire confidence,” he said.
The CIBN chairman, therefore, appealed to government to do more on ethical and value reorientation.
He advised government to communicate and feed those that it wanted to woo with the right dosage of message and act it as well.