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NSE market indicators open trading with N23bn loss

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NSE’s indices drop further by 0.13%

…As CBN clarifies cashless policy transaction charges***

The Nigerian equities market commenced trading for the week on Monday on a negative sentiment with indices dropping by 0.17 per cent and investors and investors losing N23 billion.

Specifically, the All-Share Index lost 48.41 points, indicating a decrease of 0.17 per cent to close at 27,650.28 points, while market capitalisation lost N23 billion to close at N13.460 trillion against N13.483 trillion achieved on Friday.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Presco, UAC of Nigeria (UACN), Nigerian Breweries, Vitafoam Nigeria and Dangote Cement.

Analysts at Afrinvest Limited said: “We maintain our bearish stance for the market, although the current low prices of stocks pose opportunities for bargain hunting.”

Also, analysts in United Capital Plc in their report for this week expected the decision of the Monetary Policy Committee (MPC) to affect investors sentiment towards the equity market, in conjunction with the happenings in the global space.

Market breadth closed negative, with 18 gainers against 24 losers.

An analysis of the price movement table shows that Presco led the losers’ chart with a loss of 9.93 per cent to close at N40.35 per share.

UACN Property Development Company followed with a decline of 9.86 per cent to close at N1.28, while Vitafoam dipped 9.79 to close at N3.87 per share.

NPF Microfinance Bank lost 9.60 per cent to close at N1.13, while UACN shed 9.49 per cent to close at N7.15 per share.

Conversely, NCR Nigeria and Trans-Nationwide Express recorded the highest price gain of 10 per cent each, to close at N4.95 and 77 per share, respectively.

Eterna followed with a gain 9.09 per cent to close at N3 per share.

Cutix improved by 8.97 per cent to close at N1.70, while Cornerstone Insurance appreciated by 7.69 per cent to close at 42k per share.

Also, the volume of shares transacted dropped by 38.30 per cent with an exchange of 109.56 million shares valued at N888.17 million in 3,382 deals.

This was in contrast with a turnover of 177.57 million shares worth N5.92 billion achieved in 3,484 deals on Friday.

FBN Holdings was the toast of investors, accounting for 20.29 million shares valued at N114.29 million.

Transcorp came second with 9.83 million shares worth N10.33 million, while Access Bank accounted for 9.69 million shares valued at N70.26 million.

UACN sold 5.81 million shares worth N43.12 million, while Wapic Insurance transacted 4.64 million shares valued at N1.6 million.

Also read:  NSE market capitalisation increases by N25bn

In the meantime, the Central Bank of Nigeria (CBN) says the transaction charges on deposit and withdrawal in furtherance of implementation of its cashless policy is on the amount in excess of the set limits.

The Director, Corporate Communication Department, Mr Isaac Okorafor, made the clarification in Abuja on Monday, explaining that transactions would attract three per cent processing fees for withdrawal and two per cent processing fees for lodgement of amounts above N500,000 for individual accounts.

Recall that CBN on Sept 17 issued a circular to deposit banks to commence the implementation of the cashless policy in six pilot states across the country.

Similarly, corporate accounts would attract five per cent processing fees for withdrawal and three per cent processing fees for lodgement of amounts above N3 million

The apex bank directed that implementation should commence from Sept. 18 in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States, as well as the Federal Capital Territory (FCT).

It, however, stated that the nationwide implementation of the cashless policy would take effect from March 31, 2020.

Okorafor explained that contrary to the misconception on the implementation of the policy, the charges would only be on the excess of N500,000 deposited or withdrawn for individual and N3 million for corporate body

According to him, if an individual deposited N510,000 the two per cent charge would be on the N10,000 excess which is N200 only.

He said the same applied to a withdrawal of same amount, adding that the three per cent charge would be on excess of the set limits.

He said that the same thing also applies to the corporate body also which five per cent on withdrawal and three per cent on lodgement of amounts above N3 million.

Many Nigerians have described it as additional burden on banks’ customers who were already laden with other charges by the banks.

CBN Governor Godwin Emefiele had also said, after the Monetary Policy Committee meeting on Friday in Abuja that the policy was inaugurated in the country in 2012 and implementation began in 2014.

“The policy says if you deposit money in the bank above a particular threshold which for individual is N500,000 and N3 million for corporate bodies, then you will be charged, same for withdrawal.

He stated that the policy was not designed to de-franchise hard working Nigerians as perceived by some categories of people.

According to him, a data conducted, revealed that close to 95 per cent of cash deposited and withdrawn fall below this threshold.

Emefiele said Nigerians had already embraced electronic channels and online transaction in market places.

He added that Micro, Small and Medium Enterprises now had various options and channels available to collect a legitimate payment for goods and services, like POS, banks transfer using ATM, USD code among others.

He said that the cashless policy increases transparency in financial dealings and reduce crimes such as ransom payment and extortion among others.

The governor said the bank had the mandate under the CBN Act 2007 as amended to promote a sound and stable financial system through credible efficient payment system.

 

Banking & Finance

CBN Revokes Licenses Of 4,173 BDCs

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The Central Bank of Nigeria (CBN), has announced the revocation of the operational licences of 4,173 Bureaux De Change (BDCs) for failure to observe some regulatory provisions.

According to a statement issued by CBN’s Acting Director, Corporate Communications Department, Mrs Hakama Sidi on Friday in Abuja, the move is an exercise of the powers conferred on it under the Bank
and Other Financial Institutions Act (BOFIA).

Sidi said that the list of affected BDC operators was available on the Bank’s
website.

Forex inflow: CBN tasks banks to support indigenous companies

She said that the affected institutions failed to observe at least one of the following regulatory provisions:

They are payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines.

Others are the rendition of returns in line with the guidelines and compliance with directives and circulars of the CBN, particularly Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) regulations.

“The CBN is revising the regulatory and supervisory guidelines for BDC operations in Nigeria.

” Compliance with the new requirements will be mandatory for all
stakeholders in the sector when the revised guidelines become effective.

“Members of the public are hereby advised to take note and be guided accordingly,” she said. (NAN

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Banking & Finance

NGX: Stock Market Performance Indices Up By 0.33%

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Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

…Guinea Insurance leads the losers’ chart

The stock market on Tuesday maintained a bullish trend, bringing the benchmark indices up by 0.33 percent, to close at N39.349 trillion as against N39.219 trillion recorded on Monday.

Specifically, the market capitalisation gained N130 billion, representing 0.33 percent.

Also, the All-Share Index gained 327.35 points or 0.33 percent to stand at 71,907.26 as against 71,669.91

The increase was due to sustained buying interest in MTN Nigeria and Tier-one bank stocks; namely Guaranty Trust Company(GTCo) Access Holdings, among others.

As a result, the Year-to-Date (YTD) return rose to 40.30 percent.

On top stock traders, Julius Berger led by volume with N42.54 million, valued at N14.73 billion, while GTCo was the most traded stock by value with N84.92 billion units traded.

The gainers table was led by Infinity with 9.79 percent to close at N2.13 per share.

SCOA Nigeria Plc followed with a gain of 9.45 percent to close at N1.62, while Daar Communication rose by 8.82 percent to close at N0.37 per share.

Royal Exchange increased by 8.47 percent to close at N0.64, while Neimeth appreciated by 7.89 percent to close at N2.05 per share.

Stock Market Gains N18bn; FTN Cocoa Processors, Prestige Assurance lead Losers’ Chart 

On the other hand, Guinea Insurance led the losers’ chart in percentage terms by 10 percent to close at N0.27 per share.

This was followed by Conoil with 9.83 percent to close at N78.00 per share.

Juli shed 9.72 percent to close at N0.65, Omatek closed at 8.75 percent, indicating a loss of N0.73, while Thomaswy lost 8.13 percent to close at N3.05.

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Banking & Finance

Reps Committee Issues Warrant Of Arrest On CBN Governor, Others

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Forex inflow: CBN tasks banks to support indigenous companies

The House of Representatives Committee on Public Petition has issued a warrant of arrest on the Central Bank Governor, Mr Olayemi Cardoso, the Accountant General of the Federation, Mrs Oluwatoyin Madein, and 17 others for refusing to appear before it to answer questions on their operations.

This followed the adoption of a motion by Rep. Fred Agbedi (PDP-Bayelsa) at the committee’s hearing on Tuesday.

Moving the motion, Agbedi said that the arrest warrant had become inevitable following the attitude of the invitees.

He said that the parliament worked with time and the CEOs had been invited four times but failed to respond.

He said that the CEOs should be brought to appear before the committee by the Inspector General of Police through a warrant of arrest after due diligence by the Speaker, Rep. Tajudeen Abbas.

In his ruling, the Chairman of the committee, Rep.    Micheal Irom (APC-Cross River)  said that the I-G should ensure the CEOs were brought before the committee on Dec. 14.

Earlier, the petitioner, Mr Fidelis Uzowanem, said that the petition was anchored on the Nigeria Extractive Industries Transparency Initiative (NEITI) report of 2021.

CBN confirms evacuation of banknotes, directs banks to open for weekend operations

He said that the report was a summary of the transactions in the oil and gas industry for 2021 which NEITI could to be challenged.

“We took up the challenge to examine the report and discovered that what NEITI put together is a report is only a consolidation of fraud that has been going on in the oil and gas industry.

“It dates back to 2016 because was have been following and we put up a petition to this committee to examine what has happened.

“The 2024 budget of 27.5 trillion that has been proposed can be confidently be funded from the recoverable amount that we identified in the NEITI report.

“It is basically a concealment of illegal transactions that took place in NNPCL, they have been in the sink with some oil companies where some companies that did not produce crude were paid cash core, an amount paid for crude oil production,” he said.
He added: “We also found that the cash core payment was used as a channel for laundering funds by NNPCL and we found out that NEITI was able to conceal it in its report.

“In 2021 NEITI reported that Total Exploration and Production Nigeria-Ltd was paid 168 million dollars but examination of submission by the company shows that it received 292 million dollars.

“In other words, 124 million dollars was laundered by NNPCL through Total because monies that have been officially paid to Total could not have been concealed if it were not meant for fraudulent purposes.

“Also for Chevron, the dollar payment NEITI puts forward in its report was 76 million dollars but document emanating from Chevron showed that they received as much as 267 million dollars.”

“In other words, 191 million was laundered under the cover of Chevron and NEITI concealed that; also, Nigeria Agip Company received 188 million dollars but none of it was reported by NEITI”.

Some of those to be arrested were the Chief Executive Officer, of National Petroleum Investment Management Services (NAPIMS), of Ethiop Eastern Exploration and Production Company Ltd, as well as the CEO of Western Africa Exploration and Production.

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