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.
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.
Police Confirms Kidnap of Seven Persons in Kogi
From Joseph Amedu, Lokoja
The Kogi State Police Command has confirmed the kidnap of seven travelers along Itobe-Ajaokuta road in the State.
Gunmen suspected to be kidnappers had abducted seven people, including a Doctor and Lawyer at about 2pm on Tuesday and carried them to the bush.
The State Police command confirmed the incident on Wednesday evening in Lokoja.
According to an eye witness, the gunmen laid siege on the said road for hours, shooting sporadically and in the process many passengers were abducted, with many also receiving various degrees of injuries from the smoking fire power of the Kidnappers.
This source posited further that among those abducted to unknown destination were Mr Joe Abba, his wife and Barrister Abba Aduojo who were returning from a burial in a village near Alloma in Ofu local government Area of the state.
Also abducted is a yet to be identified Doctor said to be on his way back to Lokoja from an official assignment to the Prince Abubakar Audu University Teaching Hospital,
“They were kidnapped on gun point around 2pm, my friend’s wife was shot in the leg and is presently recuperating at Federal Medical Centre, Lokoja”, said a Relative of one of the victims.
According to the State Command’s Police Public Relations Officer, PPRO, William Ovye Aya, the command got winds of the attack of the hoodlums and drafted the men of the Rapid Response Squad operating in the area to their rescue.
“Seven persons were abducted to the bush; six people were rescued with bullets wounds and six vehicles were recovered at the scene of the incident”, he said.
He added that a combined manhunt against the hoodlums, including the sister security agencies and vigilante have been mobilised to comb the areas in order to rescue the seven abducted persons in their custody.
Ortom Dares Critics to Publicly Denounce Benue Ranching Law
From David Torough, Makurdi
Benue State Governor, Samuel Ortom has challenged those who believe his administration erred in enacting the Open Grazing Prohibition and Ranches Establishment Law to speak against it publicly in the state and see the reaction of the people.
Ortom threw the challenge after receiving the award as Best Governor in Nigeria in the area of security given to him by the “Daily Independent” newspaper and other awards.
He said the law, which was enacted as a solution to the perennial clashes between herdsmen and farmers has the endorsement of traditional and religious leaders, Christians and Muslims and other stakeholders who have all remained resolute that the law should not be repealed.
The Governor stressed that no matter the level of intimidation, harassment, attacks and deprivation, his Government would continue with the full implementation of the law, saying those who were thinking of coming to repeal the law were daydreaming.
Ortom who lamented the daily invasion of Benue communities and killing of innocent people by the Fulani herdsmen whose agenda he said was to take over the land, urged the people to stand up to defend themselves and the land against the invaders.
He advised the people to take advantage of the ongoing voter registration exercise by the Independent National Electoral Commission, INEC, to regularize their Permanent Voters Cards to be able to elect leaders who would represent their interest in next year’s general election.
Ortom dedicated the award to the people of Benue, particularly Internally Displaced Persons, IDPs who have been living in the camps since 2017 but have vowed to support his government not to surrender the state to the oppressors.
Other awards that were presented to the Governor during the EXCO meeting in recognition of his contributions to the development of the country were from the International Council for Women Affairs, Nigeria Bar Association(NBA) Benue State branch and Gboko Polytechnic.
Buhari Sends Seven New Ministerial Nominees to Senate
By Jude Opara, Abuja
Following the resignation of some Ministers who left his cabinet to contest the primaries of the All Progressives Congress (APC), President Muhammmadu Buhari yesterday sent the names of seven ministerial nominees to the Nigerian Senate.
Buhari in the letter which was read on the floor of the Senate by Senate President, Ahmad Lawan include; Rotimi Amaechi, Emeka Nwajiuba, Uche Ogah and Godswill Akpabio.
Apart from Uche Ogah who contested for the Abia state governorship primary, the others left to contest the APC presidential ticket which was eventually won by former governor of Lagos State, Asiwaju Ahmed Bola Tinubu.
President Buhari, in the letter, explained that the confirmation request was in accordance with the provisions of Section 147 subsection 2 of the 1999 Constitution of the Federal Republic of Nigeria as amended.
The nominees include: Henry Ikechukwu Ikoh – Abia State; Umana Okon Umana – Akwa Ibom State; Ekumankama Joseph Nkama- Ebonyi State; and Goodluck Nana Opiah – Imo State.
Also nominated for confirmation are; Umar Ibrahim El-Yakub – Kano State; Ademola Adewole Adegoroye – Ondo State; and Odum Odi – Rivers State.
It could be recalled that in the build up to the June 30th presidential primaries of APC, some cabinet ministers resigned from their position.
However, the Ministers of Labour and Attorney General and Minister for Justice, Chris Ngige and Abubakar Malami respectively withdrew their earlier decision to resign from the cabinet.
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