Business

Nigeria’s Stock Market Sustains Positive Momentum, Gains N4.5trn in Four Months

Published

3 years ago

May 2, 2022

By Derrick Bangura

The stock market segment of the Nigerian Exchange Limited (NGX) has gained N4.46 trillion in its year-to-date (YtD) performance, outperforming the Egyptian Exchange, the Johannesburg Stock Exchange, the Ghana Stock Exchange, among other of its peers in the continent.

Specifically, the market capitalisation of the NGX in the first four months of 2022 appreciated by 16.21 per cent to close on April 29, 2022 at N26.761 trillion from the N22.297 trillion it closed on the last trading day of 2021
Also, the NGX All-Share Index, an indicator used to track the general market movement of all listed equities on NGX, including those listed on the growth board, regardless of capitalisation, opened 2022 at 42,716.44 basis points and closed on April 29, 2022. at 49,638.94 basis points.
This also represented an increase by 16. 21 per cent.
However, data compiled from the website of other stock exchanges in the continent revealed that the Financial Times Stock Exchange (FTSE)/ Johannesburg Stock Exchange (JSE) in its YtD performance dropped by 1.72 per cent, just as the Egyptian Exchange’s EGX 30 Index in its YtD performance also dropped by 7.54 per cent.

Further findings revealed that the Casablanca Stock Exchange’s MASI Index in its YtD performance depreciated by 1.66 per cent, while the Ghana Stock Exchange Composite Index contracted by 3.52 per cent to 2,691.19 index points as of April 29, 2022.
Similarly, the Uganda Securities Exchange’s (USE) All Share Index was down by 12.23 per cent YtD performance to 1,246.99 basis points as of April, 2022.

On the flipside, the Lusaka Securities Exchange’s All-Share Index recorded an impressive performance with a gain of 14.27 per cent to 6,924.34 in its YTD growth just as the Namibian Stock Exchange’s NSX overall Index appreciated by 10.64 per cent to 1,738.93 points as of April 29, 2022.

However, for the Nigerian bourse, the NGX, the major indices that drove its performance in the first four months of 2022, were the banking, oil & gas, industrial and consumer goods companies sectors.

The growth in stock prices were strongly bullish as all the indicators closed in the green between January and April of 2022.
For instance, the NGX Oil & Gas index appreciated the most by 51.99 per cent in its YtD growth; the NGX industrial goods index followed with a gain of 8.81 per cent, while the NGX Banking Index rose by 7.08 per cent YtD.
Capital market analysts attributed the growth of the NGX to steady increase in global oil price and listed companies’ impressive earnings post-covid-19.

They explained foreign analysts’ projections of Nigeria’s economy pre-election also played a critical role in foreign investors’ increased participation in fundamental stocks listed on the bourse.

The International Monetary Fund (IMF) recently raised Nigeria’s 2022 economic growth forecast marginally from the 2.7 per cent it had previously estimated to 3.4 per cent.

Additionally, the fund reviewed upward the country’s 2023 growth prediction upward from 2.7 per cent to 3.1 per cent.
The multilateral institution had also noted that the non-oil sector played a pivotal role in increasing Nigeria’s growth prospect as it observed that the globally only 86 per cent of countries saw a downward revise of its growth projection indicating Nigeria is amongst the 14 per cent of countries who are expected to grow.

Nigeria’s growth prospects were stated in latest World Economic Outlook (WEO) released recently by the IMF.
Also, the World Bank had released a forecast on Nigeria’s economy for 2022, raising the country’s growth projection to 3.8 per cent, up from the 2.5 per cent projected earlier in the year.

Speaking with THISDAY, the doyen of the Nigerian capital market, Mr Rasheed Yusuf, said the increasing global oil price played a role in the growth of the capital market in four months of 2022.

According to him, “The current global oil price that is above $100 per barrel has translated into more revenue for the federal government and more spending. “Since there is more revenue for the government, there will definitely be more spending and more business opportunities for individuals and companies listed on the NGX.
“Everybody was thinking Nigeria will be in an economic crisis but with oil revenue above $100 per barrel over the Ukraine-Russia crisis, the government has been able to manage the subsidy.

“The global oil price has breathed a new life into companies in the country and investors’ expectation is that these companies will make good profit and it has contributed to growth in their stocks.

“Most of them recently released the 2021 financial year, first quarter results and we have seen impressive corporate earnings. The performance of these companies has reflected in their corporate earnings.”
Yusuf, who is the Chief Executive Officer of Trust Yield Securities, further said the Nigeria economy had surpassed analysts’ expectation.
“It is not as boom but at the same time, it is not catastrophic as projected by analysts and that is what is driving the optimism,” he added.
On his part, the Chief Operating Officer (COO), Supra Commercial Trust Limited, Mr. Charles Fakrogha, noted that the steadfastness of the quoted companies boosted the capital market growth in four months of 2022.
He also alluded that the increasing global oil price contributed to stock market performance as the government has more revenue to execute some infrastructural projects.
According to him, “These companies have sustained growth in revenue and profit despite challenges.
“With the improved performance, of course the market will react and the reason why investors trading on the NGX stock market gained over N4 trillion in four months.”
He projected that the stock market would sustain the growth in May 2022.
He said, “The listed companies have device methods to overcome harsh operating environments and of course, they still have some challenges.

“We expect the stock market to perform better in the remaining months of H1 as the government is expected to do its part in tackling the security situation in the country.”

In his contribution. the Chief Operating Officer, InvestData Ltd, Mr. Ambrose Omordion noted that most listed companies were undervalued as covid-19 affected their performance, stressing that local & foreign investors in the first four months of 2022 took advantage of the low-priced stocks.
He added, “Most companies have engaged in aggressive revenue growth when the lockdown was eased and we have seen the impact on profit.

“The global trend is also playing its role in what is happening in Nigeria. In the USA, most big companies are posting negative results and it is reflecting in their GDP.

“However, Nigeria’s big companies on the NGX have reported positive performance and it is likely to show in GDP projection for Q1 2022.”

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Business

Businesses count losses amid power outage in Bauchi, Gombe, and Jigawa

Published

4 weeks ago

October 28, 2024

Matthew Eloyi

Business owners in Bauchi, Gombe and Jigawa are recording losses due to week-long blackout ocassioned by vandalism of the power transmission line in parts of northern Nigeria.

The sudden disruption in electricity supply in the past days, also affected essential services such as water, sanitation, street lighting and healthcare delivery as most hospitals have been operating without light.

Some of the affected businesses including shop keepers, millers and artisans, who spoke while reacting to a survey by the News Agency of Nigeria (NAN), described the situation as “pathetic”.

The survey examined the perennial collapse of national grid and the need for alternative power supply in the country.

Rice millers in Gombe had decried the impact of the erratic power supply on their businesses.

A Miller, Musa Arab, at Nassarawo Industrial Layout in Gombe, said the trend was crippling their operations as they relied on electricity supply from the grid to process paddy.

He said the mills were not operational power outage as they could not afford exorbitant pump prices of petrol or diesel to run their machines.

This, he said, reduced the volume of rice supply to the market and posed serious challenge to food security.

“We must invest in power because it is the biggest determining factor for industries to thrive.

“I have over 20 workers in my mill, and we have 100 mini rice mills here, so you can imagine those who have no jobs for the past 10 days.

“Government must go tough on those responsible for the perennial grid collapse because some persons may be benefitting from it,” he said.

Also, Yusuf Ibrahim said the situation might trigger the already fragile inflation, as prices of local varieties would shot up ocassioned by the diminish supply.

He said that some had jerked up their charges to cover the expenses on diesel thereby affecting rice prices.

A check by NAN at the Gombe Main market showed that a 100 kilogramme of rice was sold for between N120,000 and N160,000, as against N110,000 and N150,000, before the blackout.

Mr Usman Sani, a rice dealer, attributed the hike in price to low supply of the produce to the market in spite of the number harvest recorded this cropping season.

He said the prices had decreased slightly at the onset of the harvest, however, it showed sprawling increase due to power outage.

“The price of rice is already dropping as a result of harvest but the trend reverse since the blackout in the past days “ he said.

Ugochukwu Daniel, a bartender in Bauchi, decried the epileptic power supply in the country, adding that lack of durable energy supply would retard Nigeria’s quest to attain social and economic greatness.

Daniel said that she spent much on fuel to run power generator for refrigrator and lightening the beer parlour, to enable her to keep the business running.

He said that businesses could only thrive in an enabling environment with stable electricity supply, to enhance wealth creation and reduce poverty among Nigerians.

“My trade is about chill drinks and it survives on electricity to operate otherwise you will out of bussiness.

“Without electricity there is nothing you can do, and not only business but about everything. We depend on it,” he said.

Similarly, Samuel Adamu, said the persistent power outage had forced him to patronised charcoal for ironing clothes in spite of its high cost and cumbersome processes.

He said that most cleaners in the area had resorted to fabricated iron charcoal in spite of hike in its prices which suddenly jumped from N5,000 to N15,000.

Adamu said the situation also encouraged division of labour in laundry to cut cost and make some gains.

“Presently, I do wash the cloth, and engage someone for ironing. The charge is N300 per set as against N150”.

While advocated development of renewable energies to enhance power supply in the country, Adamu urged security agencies to entensify efforts towards electrical installations in the country.

In the same vein; Mr Muhammad Adamu, Chairman, Jigawa State House Assembly Commitee on Power and Energy, said the Jigawa Electricity Law 2024, made sound provisions to improve power generation and distribution in the state.

This, he said, was an offshoot of the devaluation brought about by the 5th alteration of the constitution, where removed power from the executive legislative list and to the concurrent list.

“It empowered the state houses of assembly to enact laws on power.

“The committee has also carefully pursued the bill and reviewed its structure and the promise it holds for the state power sector, infrastructure and the overall economy of the state.

“The new law will pave way for the establishment of Jigawa Electricity Commission, to regulate the state’s electricity market,” he said.

According to Adamu, the law will protect residents and investors in the energy sector through ensuring prepaid meter installation and possibility of recouping investor’s funds as well as address vandalism.

“The law will lead to provision of reliable, affordable and sustainable power, essential for development of all sectors of the economy, particularly in rural areas,” Adamu said.

“Vandalism will be over because we pay Kano Electricity Distribution Company (KEDCO) money for powered supplies, but whenever there is problem of damages or broken down transformers, it is either the communities or individuals that pay for the repairs”.

Business

Mercedes urges delay of EU tariffs on Chinese electric vehicles

Published

1 month ago

October 21, 2024

Matthew Eloyi

Mercedes urges delay of EU tariffs on Chinese electric vehicles

The head of German luxury carmaker Mercedes-Benz, has called for the European Union to de-escalate the dispute with China over tariffs on electric cars.

“We need more free trade instead of new trade barriers.

“That is why it is important to find a solution that suits both the EU and China,” chief executive Ola Källenius told the Monday edition of Bild newspaper.

“The negotiations for this take time. In order not to jeopardise them, the EU should postpone the enforcement of the planned tariffs,’’ he said.

At the start of the month, a majority of EU countries paved the way for additional tariffs of up to 35.3 per cent on battery-powered electric vehicles imported from China.

Germany, however, voted against the measure amid concerns over retaliatory actions which could hurt the country’s giant car industry.

The European Commission had pressed for extra tariffs after an investigation accused Beijing of subsidising domestic electric car manufacturers, and thus distorting the market in the EU.

But whether the import tariffs would actually come into force at the beginning of November is still up to the commission.

The plans can still be dismissed if Brussels reaches a solution with China at the negotiating table.

Business

ACCI moves to promote business connections, balance work-life

Published

1 month ago

October 16, 2024

Matthew Eloyi

ACCI moves to promote business connections, balance work-life

The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.

The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.

Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.

He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.

“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.

“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.

“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.

“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.

According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.

“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.

“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.

“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.

“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.

The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.

Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.

He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.