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Economy

Profit taking persists on NSE, index down by 0.07%

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Bulls maintain dominance on NSE, indices up 0.76%

…As Lawmaker begs Senate to empower AMCON, to recover N4.8trn debt***

Activities on the Nigerian Stock Exchange (NSE) on Thursday maintained negative slide for the third consecutive days, amid profit taking.

The All-Share Index shed 26.81 points or 0.07 per cent to close at 37,226.44 compared with 37,253.25 achieved on Wednesday.

In the same vein, the market capitalisation lost one billion naira or 0.07 per cent to close at N13.485 trillion against N13.495 trillion.

Beta Glass topped the laggards’ chart, dropping by N9 to close at N81 per share.

Forte Oil trailed with a loss of N1.10 to close at N30.20, while Nigerian Breweries declined by 80k to close at N110.20.

Dangote Sugar Refinery dipped 50k to close at N17, while GlaxosmithKline shed 45k to close at N18.55 per share.

On the other hand, International Breweries led the gainers’ table for the day, appreciating by N2.15 to close at N40.50 per share.

Dangote Cement followed with a gain of N2 to close at N227, while Lafarge Africa gained 60k to close at N34.50 per share.

Custodian and Allied Insurance added 53k to close at N6.80, while Stanbic IBTC increased by 50k to close at N51.50 per share.

In spite of the drop in crucial market indices, the volume of shares traded rose by 22.08 per cent, while value of shares transacted increased by 22.67 per cent.

NAHCO was the toast of investors, accounting for 88.13 million shares worth N483.47 million.

Access Bank followed with a turnover of 42.87 million shares valued at N428.75 million, while Zenith International Bank traded 40.84 million shares worth N980.23 million.

Sovereign Trust insurance sold 33.77 million shares valued at N6.99 million, while International Breweries exchanged 20.95 million shares worth 77.03 million.

In the meantime, a lawmaker, Sen. Rafiu Adebayo Ibrahim on Thursday urged the National Assembly to urgently empower  the Asset Management Corporation of Nigeria (AMCON) to go after recalcitrant obligors.

Sen. Rafiu Adebayo Ibrahim, who also is the Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, made the plea in Lagos, while delivering a keynote address at the opening of a two-day retreat on the importance of AMCON Act Amendment Bill, saying it is the only way to ensure retrieval of genuine debts.

Pointing out that the corporation has been up and doing, Ibrahim noted that  AMCON had tried its best over the past seven years to resolve those debts, but was still encountering resistance from obligors; and thus, empowerment remains the only way AMCON could meet its mandate for which it was set up in 2010.

He said the Senate under,  the leadership of Sen. Olubukola Saraki, had no option than to urge AMCON to compile and publish the list of all debtors in major daily newspapers in the country.

The move, he said, would place before Nigerians who were holding the nation’s economy to ransom since they account for 80 per cent of AMCON’s N4.8trillion obligation.

He said that the Upper Chamber, as part of its oversight function, had decided that AMCON in its lifespan, must be given all the support it required to perform as expected by all Nigerians.

He, however, urged the management of AMCON to collaborate with the other relevant bodies to propose that the President issued  an executive order on seizure of assets of persons who were indebted to AMCON.

He said that Federal Ministry of Finance (FMF), office of the Attorney General of the Federation and Central Bank of Nigeria should champion the move for the order.

Ibrahim said the upper chamber planned to have serious discussions with major stakeholders such as the CBN, the FMF, the Nigerian Deposit Insurance Corporation (NDIC) and relevant committees from the legislature among others.

This, he said, would allow them to deliberate on issues hindering AMCON from performing optimally which include the funding of its model to enable the recovery agency finish its assignment.

“The Upper Chamber will at this stage bare its fangs by amending the AMCON Act because AMCON has been a key stabilizing and re-vitalizing tool in the Nigerian financial system.

“It will be supported by the legislature to enable the corporation achieve its statutory objectives,” Ibrahim said.

He said the legislature supported the proposed plan by AMCON to publish the list of the 350 obligors that accounts for nearly 80 per cent of the total huge debt of the corporation.

Earlier, the Managing Director of AMCON, Mr Ahmed Kuru, reminded the committee that failure by the corporation to recover its debt, principally owed to the CBN, could not be quantified beyond economic cost.

Kuru said that AMCON’s total debt obligation of N4.8 trillion represented more than 55 per cent of the 2018 national budget.

Given the current demands on the Federal Government, Kuru said he was convinced that the government could afford to check AMCON’s debt in the short term.

He said:“It was for that reason, AMCON, after seven years of negotiating with the obligors with no commensurate recovery result, has decided to change its strategy.

“The corporation now pays strict attention to enforcements as a way of compelling, especially the recalcitrant obligors to come and pay up their debts.

“One of the major areas for amendment is the matter of vesting proprietary interest of all collateral assets acquired by AMCON from commercial banks.

“The proposed amendment will have retrospective effect.

“The vesting of proprietary interest of all collateral assets in the resolution vehicle was implemented in Malaysia and was instrumental to their success in recovering debt obligations.

“Our second challenge has to do with the disposal of assets due to the economic downturn.”

 

Economy

NGX Market Capitalisation Gains N836bn

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

…Tantalizers, NASCON lead the losers’ chart 

The Nigerian Exchange Ltd.(NGX) market capitalisation, which opened at N57.697 trillion on Tuesday, gained N836 billion or 1.45 percent closing at N58.533 trillion.

Also, the All-Share Index rose by 1.45 percent or 1,480 points to close at 103,524.44, as against 102,044.84 recorded on Monday.

As a result, the Year-To-Date (YTD) return rose to 38.45 percent.

Interest in Telco heavyweight and Tier-one banks such as MTN Nigeria, UBA, Access Corporation, Guaranty Trust Holding Company(GTCO), and sustained interest in Transcorp Power(TransPower) kept the market in the green.

Market breadth closed positive with 35 gainers and 14 losers.

On the gainer’s chart, UBA led in percentage terms of 10 to close at N25.30, followed by MTN by 9.98 percent to close at N243.50 per share.

Julius Berger also gained 9.71 percent to close at N61, While Access Corporation rose by 9.51 percent to close at N22.45 per share.

Veritas Kapital Assurance went up by 9.38 percent to close at 70k per share.

Conversely, Tantalizers led the loser’s chart by 7.89 percent to close at 35k, and National Salt Company of Nigeria(NASCON) trailed by 6.77 percent to close at N53.70.

Morison Industries Plc shed 6.62 percent to close at N1.41, C&I Leasing lost 6.45 percent to close at N3.48, while Cutix Plc dropped 6.30 percent to close at N2.53 per share.

However, analysis of the market activities showed trade turnover settled lower, relative to the previous session.

The value of transactions was also down by 16.76 percent.

A total of 565.79 million shares valued at N14.23 billion were exchanged in 11,519 deals,  compared to 436.90 million shares valued at N17.09 billion exchanged in 11,344 deals traded on Monday.

On the activity chart, Transcorp led in volume with 170.72 million shares traded at a value of N3.13 billion, Access Corporation followed by 48.57 million shares valued at N1.06 billion.

GTCO sold 39.04 million shares worth N165.80 million, Jaiz Bank traded 36.78 million shares valued at N72.51 million and UBA transacted 31.96 million shares valued at N796.24 million

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Economy

SIFAX Group Appoints Basil Agboarumi As Executive Director

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SIFAX Group, one of the leading business conglomerates in Nigeria with investment in Maritime, Aviation, Oil & Gas, Haulage & Logistics, Financial Services, and Hospitality, has appointed Basil Agboarumi as its new Executive Director of corporate and Intergovernmental Affairs.

Agboarumi recently completed his term as the Managing Director/CEO of the Skyway Aviation Handling Company Plc. (SAHCO Plc.), one of the subsidiaries of SIFAX Group.

Agboarumi holds a National Diploma (OND) in Mass Communication from the Federal Polytechnic, Auchi and a Higher National Diploma (HND) in Mass Communication from the Federal Polytechnic, Oko, a Master in Communications (MSc) from the Lagos State University and a Certificate in Creative Design & Digital Communications from the School of Media & Communications of the Pan-Atlantic University, Lagos. He also holds a Management Certificate in Civil Aviation from Concordia University, Montreal, Canada.

Basil Agboarumi, Executive Director, Corporate and Intergovernmental Affairs

After the privatization and subsequent takeover of SAHCOL by SIFAX Group in 2009, Agboarumi was appointed the Head of Corporate Communications to spearhead the re-branding of the new company. He was subsequently appointed the company’s Managing Director in 2018. Under his leadership, SAHCO Plc was listed on the Nigeria Stock Exchange while many airlines, both local and foreign, signed business deals with the company due to its excellent and cutting-edge services which include passenger handling, ramp handling, and cargo handling.

Agboarumi has over 25 years of professional in public relations, reputation management, brand development, media relations, business development, and government relations.

Speaking on the new appointment, Dr. Taiwo Afolabi, Chairman, SIFAX Group, said Agboarumi brings vast experience and records of achievements to his new role, adding that these qualities will help him succeed in the new role.

He said: “He demonstrated the capacity and ability to navigate different terrains as a leader during his time as the Managing Director of SAHCO. The COVID-19 pandemic hit shortly after he took over the reins at SAHCO, but he was able to steer the ship of the company to profitability despite the uncertainties that characterised the global aviation business at the time. I am convinced the Group will benefit tremendously from his wealth of experience as he assumes this new role.”

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Economy

NGX All-Share Index Crosses 100,000 Mark

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

…Guinness Nigeria and FTN Cocoa Processors lead the losers’ table

The All-Share Index, one of the performance indices of the Nigerian Exchange Ltd.(NGX), on Thursday, crossed a 100,000 mark for the second time in the year.

Having crossed the mark on Jan. 24, and later dropped, the All-Share Index specifically added 0.75 percent or 744 points to settle at 100,335.3, compared to 99,591.64 posted on Wednesday.

Consequently, investors gained N420 billion or 0.75 percent, as the market capitalisation which opened at N56.310 trillion, closed at N56.730 trillion.

Also, the Year-To-Date (YTD)return rose to 33.19 percent.

Improved buy interest in the shares of Dangote Sugar, MTN Nigeria, Transcorp Power, Oando Plc, and Cornerstone, alongside other top gainers drove the equity market to a positive terrain.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 9.11 percent.

However, market breadth closed negative with 33 losers and 25 gainers.

On the gainers table, Dangote Sugar and MTN led in percentage terms of 10 percent each to close at N50.60 and N201.30 per share, respectively.

Transcorp Power followed closely by 9.99 percent to close at N351.30, while Juli Plc added 9.96 percent to close at N4.97 per share.

National Salt Company of Nigeria (NSCN) rose by 9.92 percent to close at N47.65 per share.

On the other hand, Guinness Nigeria and FTN Cocoa Processors led the losers’ table by 10 percent each to close at N45.90 and N1.53 per share, respectively.

Transcorp also lost 9.95 percent to close at N17.10, Ikeja Hotel shed 9.93 percent to close at N6.08, while Redstarex declined by 9.87 percent to close at N3.38 per share.

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

A total of 554.72 million shares valued at N17.73 billion were exchanged in 9,708 deals, compared to 416.48 million shares valued at N19.51 billion exchanged in 9,338 deals.

On the activity table, Transnational Corporation (Transcorp) led both in volume and value with 301.36 million shares traded in value of  N5.65 billion.

Sterling Nigeria sold 33.32 million shares worth N150.78 million, while FBN Holdings traded 23.21 million shares valued at N773.91 million.

Also, United Bank of Africa (UBA) transacted 18.38 million shares worth N400.29 million and Zenith Bank sold 17.08 million shares valued at N583.93 million.

Reacting, a stockbroker with Premium Capital, Mr Victor Ibrahim, said that the improved performance of the equity market was due to renewed investors’ expectations from the current government’s policies.

Ibrahim stated in Lagos that investors were keying into the future benefits of the economy by boosting their investment in the equity market.

He said, “The stock market is a leading indicator of the Nigerian economy and as such, with government policies such as the free-flow economy, investors confidence in our market has been boosted.

“The artificial scarcity of dollars in order to underprice or devalue the Naira is also another indicator.

“This is because the price of stocks in the Nigerian equity market is cheaper for foreign investors and those local investors who have dollars in reserve.

“While the Nigerian economy may presently appear tough, investors are keying into the future opportunities in the current government’s policies with the belief in the capacity of President Bola Tinubu.”

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