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Nigerian Equities N Gains 602bn Despite Lull

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After rallying N7.76 trillion in net capital gains in two successive years, Nigerian equities are set for their third year with net capital gains of N602.02 billion at the weekend, bucking a generally negative opening trend in the global stock markets.

Benchmark indices at the stock market at the weekend showed average return of 2.

66 per cent for the four-day opening trading week for the year, equivalent to net capital gains of N602.
02 billion. The rally was driven by upsurge in open market orders for large and mid-cap stocks as companies begin preparations to release their audited reports and dividends for the 2021 business year.

The benchmark index for the Nigerian stock market, the All Share Index (ASI) of the Nigerian Exchange (NGX) closed weekend at 43,854.

42 points as against 42,716.44 points recorded at the beginning of the week. The ASI is a value-based common index that tracks all share prices at the NGX. It is regarded as the Nigerian sovereign equities index, a broad measure of the stock market.

Most analysts at the weekend said there were strong possibilities that share prices would continue to rise in the meantime citing the onset of the earnings season and increasing attractiveness of Nigerian equities to global investors.

Analysts at Afrinvest Securities said they expected “the positive performance to be sustained as more investors take position ahead of the dividend season”.

“In the new week, we expect the equities market to remain upbeat as investors continue to position in readiness for dividend distributions in the first quarter of 2022,” investment analysts at Cowry Asset Management stated.

Analysts at Cordros Capital also supported a bullish outlook for Nigerian equities.

“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.

“However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings,” Cordros Capital stated.

The upwardly performance of the Nigerian stocks was contrary to the general decline at the global stock market. From America to Europe, Asia and Middle East, global stocks closed the first trading week of 2022 negative. In United States, the Dow Jones Industrial Average (DJIA) dropped by 0.3 per cent while the S & P 500 Index depreciated by 1.5 per cent. Europe’s broad index, STOXX Europe declined by 0.2 per cent. Japan’s Nikkei 225 Index dropped by 1.1 per cent while China’s SSE Index dipped by 1.7 per cent. The MSCI EM, which tracks global emerging markets dropped by 1.2 per cent while the MSCI FM which tracks frontier markets posted average negative return of -0.9 per cent. However, United Kingdom’s FTSE 100 Index recorded average positive return of 0.8 per cent.

Aggregate market value of quoted companies at the NGX rose by 5.97 per cent or N1.33 trillion to close weekend at N23.628 trillion as against the year’s opening value of N22.297 trillion. The difference between the ASI and market value growth rates was due to the listing of BUA Foods Plc during the week and the delisting of Studio Press Nigeria Plc and Union Diagnostic and Clinical Services Plc. A total of 18 billion ordinary shares of 50 kobo each of BUA Foods were listed at N40 per share, adding N720 billion to market capitalisation.

Total turnover at the NGX stood 2.03 billion shares worth N59.01 billion in 15,750 deals compared with a total of 995.36 million shares valued at N13.21 billion traded in 10,264 deals two weeks ago.

Newly listed BUA Foods lifted the consumer goods sector atop activity chart with 1.255 billion shares valued at N 51.973 billion in 2,581 deals; thus contributing 61.90 per cent and 88.07 per cent to the total equity turnover volume and value. The financial services sector followed with 537.96 million shares worth N4.627 billion in 8,015 deals while information and communication technology (ICT) sector placed third with a turnover of 76.906 million shares worth N704.346 million in 933 deals.

The three most active stocks were BUA Foods Plc, Wema Bank Plc, and Transnational Corporation of Nigeria Plc. They accounted for 1.349 billion shares worth N51.253 billion in 1,120 deals, contributing 67 per cent and 86.85 per cent to the total equity turnover volume and value respectively.

Agriculture

NNPC Foundation Reiterates Commitment to Ensuring Food Security 

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The Nigerian National Petroleum Corporation (NNPC) Foundation has renewed its commitment to ensuring food security in the country.

Mrs Emmanuella Arukwe, Managing Director, NNPC Foundation, said this on Wednesday in her remarks during the training of vulnerable farmers in Akwa Ibom.

Arukwe said that 6, 000 farmers across the country would be trained on modern farming methods and market access strategies to boost food production in the country.

Arukwe, who was represented by Dr Bala David, Executive Director, Programme Development and Coordinator, NNPC Foundation, added that the Foundation was dedicated to implementing impactful programmes that aligned with national priorities.

She said that more than 500 farmers in Akwa Ibom were trained by the NNPC Ltd Agricultural Training Initiative for Vulnerable Farmers on modern methods and strategies to boost food production.

Arukwe added that the farmers were drawn from the state’s 31 local government areas to participate in the training to equip them with techniques and market access strategies to add value to their businesses.

“This programme is a testament to our unwavering commitment to food security, economic empowerment and national development.

“As the corporate social responsibility arm of NNPC Ltd, the Foundation is dedicated to implementing impactful programmes that align with national priorities.

“This initiative is part of our broader efforts to support the Federal Government’s agricultural transformation agenda, which seeks to enhance food security, increase productivity, and improve the livelihoods of smallholder farmers.

“Our goal is to equip every participant with the tools, knowledge, and resources needed to transition from subsistence farming to commercial-scale production,” Arukwe said.

In her remarks, Dr Offiong Offor, Commissioner for Agriculture and Rural Development, Akwa Ibom, thanked NNPC for the initiative to equip farmers with knowledge on modern farming.

Offor, represented by Dr Atim Okoko, Permanent Secretary, Ministry of Agriculture and Rural Development, said that a nation that trained farmers was a nation that would not go hungry.

“I want to express the state government’s appreciation to NNPC for mounting this laudable programme.

“A nation that starts to train farmers, a nation that starts to look at farmers will never go hungry.

“In this season that our President Bola Tinubu has come up with his Renewed Hope Agenda, everything is to end hunger in Nigeria,” Offor said.

The commissioner added that the programme came to complement what the state government was doing to ensure food sufficiency.

Responding on behalf of farmers, Mr Bassey Inwang, State Chairman, All Farmers Association of Nigeria (AFAN) said farmers in the state were so grateful for the training.

Inwang said the training would boost food production in the state, as the farmers would apply the knowledge gained on their farms for increase in yields.

He said, “We want to tell you that we will not take this training for granted, we will apply it properly on our farms.” (NAN)

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Agriculture

FG Trains 120 Youths On Poultry Farming In Plateau

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The Federal Government has commenced free six months training for 120 Plateau youths on poultry farming.

The training is through the National Youth Skills Acquisition Fund (NYESAF), under the Innovation, Development and Effectiveness in the Acquisition of Skills (IDEAS) Project.

Dr Daniel Jarafu, Chief Executive Officer (CEO) VetVille Nigeria Limited, one of federal government’s training service providers in charge of the training, said this on Saturday in Jos, at the flagoff  of the programme.

Jarafu, said the project was a deliberate effort by the federal government to empower youths with skills that would make them skillful, self sufficient, employers of labour and in turn, boost economic growth of the nation.

According to him, the six months training is  segmented  into  three  months theoretical and three months practical aspects .

He further explained that at the end of the programme the trainees would sit for the  National Skills Qualifications (NSQs) examination to earn a national certification which  would be equivalent to certification earned in  the formal education system.

Earlier, Prof. Arhyel Balami, the Guest of Honour, said the initiative by the federal government was highly laudable as it would lead to the empowerment of youths  with hands on agricultural skills that would make them productive with sustainable livelihoods.

Balami, urged the trainees to make the best use of the training by being diligent, showing up and paying rapt attention during the course of the training.

The News Agency of Nigeria (NAN) reports that  NYESAF is to train 75,000 youths nationwide, with the aim of enhancing job creation, entrepreneurship, and economic independence among young Nigerians.

NAN further reports that initiative underscores the government’s commitment to equipping youths with essential skills to drive economic growth and self-sufficiency

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Economy

FG To Finalize N1.5trn Road Concession Project- Edun

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The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, says the Federal Government will soon finalise N1.5 trillion road concession project.

Edun made the statement during a meeting with some private sector investors in Abuja on Wednesday.

He said that the government was on the verge of finalising the landmark N1.

5 trillion road concession project, launched in 2021 under the Highway Development and Management Initiative (HDMI).

The minister said that the initiative aimed to involve private sector partners in the reconstruction and management of nine major highways across the country, spanning approximately 900 kilometers.

He said that the partners had almost completed all arrangements for the highways, which they would finance, rebuild, and maintain under 25-years concession agreements.

Edun said that the concessionaires were expected to recoup their investments through tolling fees.

“We met the concessionaires who have virtually concluded all the agreement arrangements for nine roads, nine major highways, which they are contracting to refinance the rebuilding of and to recover their funds from tolling fees under 25-year or so agreements.

“And we met them to iron out the remaining administrative obstacles for the kicking off construction of these roads,” he said.

Edun said that the substantial private sector investment would bridge budgetary gaps.

He added that it would also allow investors to undertake revenue-generating projects, leveraging their expertise and resources for long-term implementation and maintenance.

“Thereafter, it will be a question of signing the addendums and moving to the site.

“As you know, already the 125-kilometer Benin–Asaba Highway concession agreement has been signed. The addendum has been signed.

“All arrangements have been finalised, in fact, the ministry of works have handed over the road to the concessionaires.

“They have already started the preliminary arrangements for reconstruction of that road in place of a 10 lane highway.

“It is an investment, it’s a project and an initiative that will reduce the travel time between Benin and Asaba right up to the Niger Bridge,” the minister said.

Edun said that the Benin–Asaba Highway project, which has already commenced, is expected to reduce travel time between Benin and Asaba from four hours to one hour, significantly enhancing productivity and efficiency in the region.

He described the HDMI, launched in 2021, as a strategic programme by the federal government aimed at attracting private sector investment to improve Nigeria’s federal road network.

Edun said that the initiative seeks to address the challenges of inadequate funding and maintenance by leveraging Public-Private Partnerships (PPP) to develop and manage road infrastructure.

Under the HDMI, 12 highways were initially selected for concession, covering a total of 1,963 kilometers.

These roads include Benin–Asaba, Abuja–Lokoja, Kano–Katsina, Onitsha–Owerri–Aba, Shagamu–Benin, Abuja–Keffi–Akwanga, Kano–Shuari.

Others are Potiskum–Damaturu, Lokoja–Benin, Enugu–Port Harcourt, Ilorin–Jebba, Lagos–Ota–Abeokuta, and Lagos–Badagry–Seme roads.

The minister said that the initiative was projected to generate over 50,000 direct and 200,000 indirect jobs, contributing significantly to the country’s economic growth and development.

The Minister of Works, Engineer David Umahi who joined the meeting virtually reassured the private sector partners on the HDMI of the federal government commitment.

He said that everything possible would be done to resolve the contending issues, adding he will soon be back to address all pending issues.

One of the concessionaires, Mr Kola Karim, representing Shoreline, emphasised the need for right and enforceable documents stipulating the takeoff and handover dates, which would attract investors to invest their funds.

Other private sector partners also requested for the addendum to the original agreement to be signed that would enable toll sections of the completed highways while work was in progress on other sections.

They noted that each concessionaire has unique challenges that should be dealt with accordingly.

Also in the meeting were Minister of Budget and Economic Planning, Abubakar Bagudu, and the Director General Infrastructure Concession and Regulatory Commission (ICRC), Dr Jobson Ewalefoh

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