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By Dipo Olowookere
Investment in stocks in Nigeria attracted about N59.0 billion in the four trading sessions of last week, analysis of the transactions on the floor of the Nigerian Exchange (NGX) Limited has revealed.
The significant increase in the volume and value of trades by investors in the week was due to the patronage of BUA Foods equities after they were listed on the exchange.
Business Post reports that in the week, a total of 2.0 billion shares worth N59.0 billion were bought and sold in 15,750 deals compared with the 995.4 million shares worth N13.2 billion transacted in 10,264 deals a week earlier.
BUA Foods, Wema Bank and Transcorp were the most traded equities in the week, accounting for 1.4 billion units worth N51.3 billion executed in 1,120 deals, contributing 67 per cent and 86.85 per cent to the total trading volume and value respectively.
In terms of the sectors, the consumer goods industry led the activity chart with 1.3 billion shares valued at N52.0 billion traded in 2,581 deals, accounting for 61.90 per cent and 88.07 per cent of the total trading volume and value respectively.
The financial services counter followed with 538.0 million shares worth N4.6 billion in 8,015 deals, while the ICT space posted a turnover of 76.9 million shares worth N704.4 million carried out in 933 deals.
Academy Press ended the week as the highest price riser, growing by 20.00 per cent to trade at 60 kobo, followed by Cornerstone Insurance, which gained 19.57 per cent to sell for 55 kobo.
Meyer also rose by 19.57 per cent to 55 kobo, Wema Bank increased by 18.06 per cent to 45 kobo, while Japaul appreciated by 15.38 per cent to 78 kobo.
The heaviest price loser in the week was Sunu Assurances, which fell by 17.78 per cent to 37 kobo, trailed by Consolidated Hallmark Insurance, which dropped 16.46 per cent to 66 kobo.
Sovereign Trust Insurance decreased by 13.33 per cent to 26 kobo, Vitafoam lost 10.00 per cent to finish at N20.25, while Northern Nigerian Flour Mills deflated by 9.38 per cent to N7.25.
At the close of transactions, the bourse ended with 40 price gainers, higher than 37 gainers of the preceding week, 31 price losers, also higher than 21 losers of the earlier week, while 84 equities closed flat, lower than 99 equities of the previous week.
In terms of the movement of the key indices of the exchange, the All-Share Index (ASI) and market capitalisation appreciated by 2.66 per cent and 5.97 per cent to 43,854.42 points and N23.628 trillion respectively.
Similarly, all other indices finished higher with the exception of the premium, insurance, AFR Div Yield, Meri Growth, consumer goods, and Lotus II indices, which fell by 0.47 per cent, 0.93 per cent, 0.97 per cent, 0.66 per cent, 0.87 per cent, and 0.12 per cent respectively, while the ASem and sovereign bond indices closed flat.
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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng
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By Adedapo Adesanya
The Senate Committee on Public Accounts has begun the investigation of N14.7 billion proceeds of privatisation of the defunct Power Holding Company of Nigeria (PHCN) allegedly hidden in commercial banks by the Bureau of Public Enterprise (BPE).
The committee is acting on an audit query in the ‘Auditor-General for the Federation’s Annual Report on Non-Compliance/Internal Control Weaknesses Issues in Ministries, Departments and Agencies of the Federal Government of Nigeria for the Year Ended 31st December 2019.’
The Acting Auditor-General of the Federation, Mr Adolphus Aghughu, had presented the report to the Clerk of the National Assembly, Mr Ojo Amos, on September 15, 2021, while the Senate and House Committees on Public Accounts began an investigation of the queries.
The defunct government-owned National Electric Power Authority (NEPA) was privatised and renamed PHCN, which was later unbundled to become the present generation and distribution companies.
The query stated that the funds from the PHCN privatisation were still in the banks as of December 31, 2016, whereas the privatisation of the PHCN had been concluded since 2013.
The query read in part, “Audit verification and reconciliation revealed that the sum of N14,720,396,432.43, being proceeds from the privatisation exercise of the Power Holding Company of Nigeria was reported in the bureau’s trial balance to be in commercial bank accounts as at31st December 2016.
“Whereas the privatisation of the PHCN was concluded in 2013, the proceeds are yet to be remitted to the Central Bank of Nigeria Privatisation Proceeds Accounts.
“The issue has been communicated to the bureau via a letter with reference no. OAuGF/RESAD/05/2016/07, dated 19th April, 2018, and no response has been received.
“Unauthorised funds kept in commercial banks may be diverted for other purposes, thereby leading to loss of revenue available for government programmes.
“The Director-General (of the BPE) is required to recover the sum of N14,720,396,432.43, being proceeds of the PHCN, and remit same to CRF and forward evidence of remittance to my office for audit confirmation.”
The BPE, in its written submission, however, stated that two separate sums of N3,231,984.73 allegedly held in Fidelity Bank Plc and N18,199,520.87 held in Stanbic Bank were “unaudited bank balances that were actually no longer in existence as of the date of the audited financial statements or asked questions, the matter would have been clarified.”
The bureau added, “With respect to the two other bank balances – N4.4bn (Access Bank Plc) and N10.2bn in FCMB, the correct balance in Access Bank as at 31/12/16 was NIL as the bank had transferred a swelled balance of $34.1m to the CBN Domiciliary Account.
“The bank had initially been unable to make the transfer as at September 2015 as required under the TSA policy, owing to the inexistence of designated USD Treasury Single Account for dollar balances
“The balance in the FCMB as of 31/12/2016 was only $36,053.55, following a transfer of $65,088,198.53.
“The residual balance remained until 18/95/17 due to inability of the bank to remit as required under the TSA policy, owing to initial unavailability of designated TSA for USD balances as required under the then newly introduced policy.”
The probe is expected to reveal whether the BPE’s claims are true or not.
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By Adedapo Adesanya
The Securities and Exchange Commission (SEC) has expressed plans to increase its efforts to ensure that the much-anticipated Investment and Securities Bill 2021 is passed into law by the National Assembly in 2022.
This is as it projects that the nation’s capital market will grow in 2022 due to the various initiatives being pushed as restrictions of COVID-19 and its variants are eased and businesses and economies continue to grow.
The Director-General of SEC, Mr Lamido Yuguda, who was quoted in a statement released by the commission in Abuja over the weekend, expressed hopes that the market would witness renewed confidence expected to introduce investments from domestic and foreign investors.
Mr Yuguda said that SEC would also inaugurate the revised version of the 10-year Capital Market Master Plan during its forthcoming conference.
He said the plan would reflect the dynamism of the market and developments in financial technology, small and medium scale enterprises among others.
”As we expect improvements in both economic and capital market activities, we must remain committed to developing the market in line with the 10-year Master Plan.
”Some of the key initiatives to be pursued in 2022 are the repeal of the Investment, Securities Act (ISA) 2007 and passing of the Investment and Securities Bill 2021.
“In conjunction with the National Association of Securities Dealers (NASD) platform, we will provide the necessary incentives and support to attract SMEs to get listed.
”Already, rules on crowd-funding to encourage new funding sources for the SMEs have been developed.
”The SEC will continue to enhance the existing regulatory framework guiding the operations of the market by keeping pace with the evolving changes in market practices,” he said.
Mr Yuguda also said the agency would improve coordination with other stakeholders such as the National Assembly, Central Bank of Nigeria (CBN), National Pension Commission (PENCOM), National Insurance Commission (NAICOM), Debt Management Office (DMO) and Federal Inland Revenue Service (FIRS) to create synergies toward ensuring that the objectives of the master plan were met.
He added that the SEC will carry out advocacy efforts to relevant government agencies to ensure the listing of their shares.
He explained that policies would also be championed to incentivise companies, like the new Dangote Refinery to offer its shares to the public and list on any of the commission’s registered platforms.
”We also plan to provide extra support to the registered commodities trading platforms to complement government’s renewed diversification efforts in agriculture,” he said.
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By Adedapo Adesanya
The first trading week for the year 2022 at the NASD Over-the-Counter (OTC) Securities Exchange ended in bullish territory as investors gained N2.69 billion at the close of business.
This growth increased the market capitalisation of the bourse to N631.27 billion from the N629.03 billion achieved at the final trading week of 2021.
Data from the OTC exchange revealed that in the four-day trading week, the NASD Security Index (NSI) grew by 0.43 per cent or 3.18 points to 746.03 points from 742.85 points.
Business Post reports that last week’s positive outcome was inspired by Central Securities Clearing System (CSCS) Plc, which recorded a week-on-week growth of 4.4 per cent to trade at N19.05 per unit compared with the preceding week’s value of N18.25 per unit.
It was observed that in the week, Nipco Plc recorded a loss, though this could not affect the market. Its share price went down by 10.00 per cent to trade at N63.00 per unit compared to N70.00 per unit it closed a week earlier.
During the week, the trading value witnessed a 99.9 per cent decrease as securities worth N2.4 million were carried out in contrast to the N1.9 billion worth of securities transacted in the previous week.
Also, the trading volume depreciated by 99.9 per cent to 56,947 units from 99.6 million units of the earlier week, while the number of deals declined by 48.3 per cent to 15 trades as against the 29 deals executed at the last trading session of last year.
At the close of the week, CSCS Plc was the most traded security by volume with 40,700 units. FrieslandCampina WAMCO Plc came next as it traded 10,939 units, while Nipco Plc recorded 5,308 units.
In terms of the value of trades in the week, FrieslandCampina WAMCO Nigeria Plc topped the chart with N1.3 million, followed by CSCS Plc with N775,800, and Nipco Plc with N334,404.
In the year so far, investors have traded a total of 56,947 units of stocks valued at N2.4 million carried out in 15 deals, according to data from the exchange.
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