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Equities Ear N981b in Net Capital Gains

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Nigerian equities earned more than N981 billion in net capital gains in the past seven trading sessions, making Nigerian stocks some of the most lucrative in the global stock markets.

Benchmark indices for the Nigerian stock market yesterday rode on the back of increased demand across several sectors of the market to a year-to-date return of 4.

4 per cent; implying net capital gains of N981.
1 billion in the seven trading sessions.

The sustained bullish rally at the Nigerian stock market underlined a positive, though cautious, outlook for the equities by several pundits after the Nigerian market sustained a two-year consecutive positive return.

The continuing rally has built up the net capital gains for investors since 2020 to more than N8.

7 trillion.

Nigerian equities had over the past 24 months posted a two-year average return of 56.1 per cent, equivalent to net capital gains of N7.76 trillion over the past two years.

The stock market closed in 2021 with an average return of 6.07 per cent, equivalent to net capital gains of N1.278 trillion.

It had in the throes of the outbreak of the COVID-19 pandemic in 2020 recorded an average return of 50.03 per cent, representing net capital gains of N6.483 trillion.

Yesterday, investors raked in N403 billion in net capital gains amidst bargain-hunting for large-cap blue chips and value stocks. The benchmark index showed an average return of 1.7 per cent.

The strong rally yesterday was driven by influential stocks such as Dangote Cement, Seplat Energy; Guinness Nigeria; BUA Foods and MTN Nigeria Communications.

Dangote Cement, Nigeria’s most capitalised quoted company, yesterday announced that it would be buying back 170 million shares from shareholders between next Wednesday and Thursday.

The second tranche of the share buyback programme would see the company mopping up one per cent of its current issued share capital

Analysts at Afrinvest Securities said they “anticipate that bargain hunting would persist on improved investor sentiment”.

The All Share Index (ASI) of the Nigerian Exchange (NGX), a value-based common index that tracks all share prices at the NGX, closed yesterday at 44,608.82 points as against its opening index of 43,859.30 points. It had opened the year at 42,716,44 points

The aggregate market value of all quoted shares at the NGX rose from its opening value of N23.631 trillion to close at N24,034 trillion. It had opened the year at N22.297 trillion.

The total turnover of trades yesterday stood at 266.3 million shares valued at N3.8 billion in 4,502 deals.

All sectoral indices closed positive with the exception of the NGX Insurance Index, which dipped by 0.5 per cent. The NGX Industrial Goods Index led with a return of 3.1 per cent.

The NGX Oil & Gas Index rose by 1.4 per cent. The NGX Banking Index posted an average gain of 0.4 per cent while the NGX Consumer Goods Index appreciated by 0.1 per cent.

Dangote Cement rose by N16 to close at N275. Seplat Energy appreciated by N20 to close at N690. Guinness Nigeria rallied N1.20 to close at N42.20. BUA Foods added N1.65 to close at N66 while MTN Nigeria Communications chalked up N4 to close at N190 per share.

Most market pundits have predicted a continued rally at the stock market despite emerging political risks.

Analysts at Cordros Capital said the outlook for the Nigerian equities is bullish in the near term.

“In the near term, we believe positioning for 2021 full year dividends will continue to support buying activities in the market even as institutional investors continue to search for clues on the direction of yields in the fixed income market,” Cordros Capital stated.

President, Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe, said two years of positive returns show that the market is reflecting its function as the barometer for the economy.

“We also expect the positive movement for the first half of 2022 on the back of good corporate performance, implementation of some part of the Petroleum Industry Act (PIA) and intense focus on infrastructural development and resultant increased capital raising by government and corporate entities,” Amolegbe said.

According to him, the implementation of the PIA has the potential to raise government revenue, which may elicit a positive response from the market while infrastructural development would likely boost market activity.

“These, however, depend on stable macroeconomic policy, increased security and stable polity,” Amolegbe, who doubles as Managing Director of Arthur Steven Asset Management Limited said.

Managing Director, APT Securities and Funds, Mallam Kasimu Garba Kurfi, also said the market would remain positive in 2022, although the second half would be determined by the politics of succession by the largest political parties.

“We expect the bullish rally to continue in first and second quarters but the continuity to the third and fourth quarters depends on the outcome of the primary election of the APC and PDP if they are able to succeed in electing the right candidates for the presidency.

“Acceptability will lead to bullish rally throughout the year, otherwise, the market may suffer a reversal,” Kurfi said.

Group Head, Research, GTI Capital Group, Mr. Emmanuel Onoja, said there was a strong possibility of the market running through a third positive year.

“It’s most likely we see the third year of positive return given the potential liquidity buildup next year as a result of increased borrowing, election spending and falling yields,” Onoja said.

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Nigerian Military Declares Nigerien Terrorist, Halilu Buzu Wanted

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The Nigerian Military has declared  Halilu Buzu, a national of  Buzu in Republic of Niger wanted for terrorising Nigerian territory, particularly Zamfara.

The Director of  Defence Media Operations, Maj.-Gen. Edward Buba, made the announcement on Thursday in Abuja, at a media briefing on the operations of the military.

Buba said the notorious suspected terrorist leader settled in Subbubu Forest in Shinkafi Local Government Area of Zamfara.

He said that Buzu had a camp for illegal gold mining located at Kawayi, in Anka Local Government Area of the state, and had lots of boys working for him.

According to Buba, the terrorist is also a prominent cattle rustler.

He said that the Buzu’s group had in the last week killed 19 villagers at Farar Kasa.

”He is a High Value Target and we hereby declare him wanted.

”Furthermore, he is a major arms supplier, trusted by arms dealers supplying arms from Libya.

”We have been on his trail and whenever we close in on him, he bolts across the border into Republic of Niger for refuge.

”At this time, we are through appropriate channels calling on the Nigerien authorities, regional and international bodies to support in effecting his arrest to hold him accountable for his atrocities,” he said. (NAN)

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Cooperatives Capable of Boosting Inclusive Growth, Eradicating Poverty-Shettima

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Vice -President Kashim Shettima, says cooperative initiatives have what it takes to boost inclusive growth, development and end poverty in the country.

Shettima said this at the 2nd Abuja Cooperative Summit organised by the National Cooperatives Agency of Nigeria (CFAN) in Abuja on Wednesday.

Shettima, represented by Dr Nurudeen Zauro, the Technical Adviser to the President on Financial Inclusion, said the role of cooperatives in facilitating economic activities was key to the administration of President Bola Tinubu.

He said that Tinubu’s administration had signed the Student Loan Act, set up the Credit Corp to enhance access to consumer credit.

The vice-president said the recent signing of Aso Accord on Economic and Financial Inclusion was also a commitment to support economic and financial inclusion which cooperatives played significant roles in achieving.

”This administration is mindful of the fact that over 30 million of our people do not have access to a broad range of affordable financial services to enable them to fulfill their economic potential.

”A major reason for that is low income.

”This is not just an economic problem but might further lead to insecurity, this is the reason why the conversation on economic inclusion, financial inclusion, and insecurity is of high priority to this administration today.

”This administration believes a strategic approach is important to address the subject of economic and financial inclusion, and as such has elevated the subject to the agenda of the National Economic Council, ” he said.

Ms Nkem Chime, the Head, Strategy Coordination Office, Central Bank of Nigeria (CBN), said that 74 per cent of the populace was financially included while 26 per cent was excluded.

Chime said the CBN would continue to pave the way for innovative programmes to encourage cooperatives.

The Executive Secretary of CFAN, Mr Emmanuel Atama, said the summit was geared toward activating the Cooperative Development Fund.

Atama said the summit was also to have a robust discussion on cooperatives resilience in the face of diverse economic challenges.

He said the agency had also partnered with the Federal Capital Territory (FCT) Department of Science, Technology and Innovation to build the entrepreneurial capacity of cooperative members.

The Director, FCT Department of Science Technology and Innovation, Mr Olobashola Kolawole, said that cooperatives were the backbone of entrepreneurship.

He said the department would continue to collaborate with cooperatives to establish youths for the development of the country.

Reports says that cooperatives’ members from different states attended the summit. (NAN)

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Edo Guber: Labour Party Unveils Campaign Council

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The Labour Party (LP) in Edo on Saturday,  announced its campaign council for the upcoming governorship election scheduled for Sept. 21.

The council, led by Rev. Sam Omede as Director-General and Dr Ehikioya Agboga as Deputy, will be inaugurated on May 13.

Other members of the council are Sen.

Ned Imasuen (Edo South) Reps Esosa Iyawe and Murphy Osaro Omoruyi (Oredo and Egor/Ikpoba Okha) federal constituencies respectively.

Mr Kelly Ogbaloi, State Chairman of the party unveiled the members of the campaign council while addressing journalists at the party’s secretariat in Benin.

This was after a stakeholders’ meeting of the State Working Committee with senatorial, local government leaders and executives across the 18 local government areas of the state.

Ogbaloi said: ” in preparation for the upcoming election, we have meticulously selected individuals of impeccable character to lead the State Campaign Council and local government campaign committees

He also appealed to members to leverage the forthcoming new voters’ registration exercise to expand the voter’s base as well as ensure broader participation in the electoral process.

“A robust membership drive shall be launched to attract new members and reconcile with  disenchanted individuals who have legitimate grievances,” he added.

The LP chairman said that Ken Omusi the party’s youth leader had been suspended from the party for anti-party activities, announcing Dan Ero from Oredo local government as his replacement

He added that the suspension  on some members, excluding Ken Omusi, had been lifted.

According to him,  a reconciliation committee will  be set up to ensure peace among aggrieved party members ahead of the election. (NAN)

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