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FG protests 45 days wait for Canadian Visa

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The Nigerian equities market ended the month of August on a positive note last week helped by sustained decline in government debt yields, which increased attractiveness of equities throughout the week.



The continued downward trend of yield curve in the bond market had helped the market the previous week despite the huge sell-off in some of the major indigenous downstream oil companies.

From last Monday till the close of business last Friday, stock prices on the Nigerian Stock Exchange (NSE), maintained a strong momentum, reflecting investors’ growing appetite for equities against the backdrop of the situation in the bond market.

Analysts believe investors are gradually navigating to the stock market to reap returns on blue chip stocks like Nigerian Breweries Plc, Guinness Nigeria Plc, Cadbury Nigeria Plc, Unilever Nigeria Plc, and First Bank of Nigeria Plc.

“Owing to the drop in yields in government debts, banks and discount houses have resorted to profit booking. Pension funds faced with re-investment risks are pondering which asset classes to inject fresh cash into. This has led to the attractiveness of equities to the pension funds especially the industrial stocks. The foreign institutional investors and the local pension fund administrators have been quite active in the stock market taking positions in the government debt instruments, “said analysts at BGL Securities.

Consequently, all major market indicators closed last week firmer led by the twin market gauge-the All-Share Index or ASI and the market capitalisation.

Analysis of trading results released by the NSE showed that the ASI, which opened the week at 23,399.58 points appreciated by 1.50 per cent to close on Friday at 23,750.82 points. Week-on-week, the ASI grew by 1.50 per cent, while its year-to-date return stands at 14.57 per cent. Similarly, the equities market capitalisation, which opened the week at N7.45 trillion appreciated by 1.50 per cent to close at N7.56 trillion.

In the same vein, all but one of the six sectorial indices appreciated. While the NSE 30 Index rose by 1.65 per cent to close at 1,113.67, the NSE Consumer Goods Index appreciated by 2.25 per cent to close at 2,022.83.

Also, the NSE Banking Index went up by 1.75 per cent to close at 368.60, the NSE Insurance Index appreciated by 1.52 per cent to close at 124.08 and the NSE-Lotus II rose by 1.67 per cent to close at 1,399.21. However, the NSE Oil/Gas Index depreciated by -0.63 per cent to close at 164.05.
Number of Deals
A further analysis of the trading statistics revealed that investors sold a total of 1.461 billion ordinary shares worth N10.142 billion made in 20,322 deals, in contrast to a total of 878.53 million shares valued at N9.907 billion that exchanged hands the previous week in 11,633 deals.

The Financial Services sector was the most active during the week (measured by turnover volume), with 1.10 billion shares worth of N6.89 billion exchanged hands by investors in 12,030 deals.

The volume of shares sold in the sector was largely driven by banking subsectors led by shares of Zenith Bank Plc and First Bank of Nigeria Plc. Trading in the shares of the two banks accounted for 266.997 million shares, representing 35.07 per cent, 24.26 per cent and 18.28 per cent of the turnover recorded by the subsector, sector and grand total for the week, respectively.

Also traded were 3,997 units of NewGold Exchange Traded Funds (ETFs) valued at N10.164 million exchanged hands in 17 deals in contrast to a total of 1,200 units valued at N3.05 million transacted last week in 9 deals.

However, there were no transactions in the Federal Government Development Stocks, State/Local Government Bonds, and Corporate Bonds/Debentures sectors.
Gainers and Losers
The price movement chart of the NSE displayed a total of 43 equities that appreciated in prices during the week, higher than 30 of the preceding week. Nestle Nigeria Plc led on the gainers’ table by 4.75 per cent to gain N24.94 followed by Guinness Nigeria Plc by 1.41 per cent to gain N3.50. Other price gainers in the top 10 category include: Nigerian Breweries Plc (N3.30), CAP Plc (N2.42), U A C N Plc (N1.65), 7-UP Bottling Company Plc, Flour Mills Nigeria Plc, Okomu Oil Palm Plc (N1.50 each), GlaxoSmithKline Consumer Nigeria Plc (N1.28) and Cadbury Nigeria Plc (N1.20).

On the other hand, 26 stocks depreciated in prices during the week under review lower than 34 of the preceding week. PZ Cussons Nigeria Plc led on the price losers’ table, dropping by 4.67 per cent to shed N1.12 followed by Conoil Plc with a loss of N1.03 or -4.96 per cent. Other price losers in the top 10 category include: Morison Industries Plc (71 kobo), ARBICO Plc (66 kobo), Nigerian Aviation Handling Company Plc


(60 kobo), Denote Flour Mills Plc (35 kobo), May and Baker Nigeria Plc (26 kobo), Dangote Sugar Refinery Plc (23 kobo), National Salt Company of Nigeria Plc (20 kobo) and Red Star Express Plc (19 kobo).

Financial Reporting Standards
Meanwhile, stakeholders in the Nigerian capital market during the week under review called on the NSE to ensure that quoted companies and those wishing to list on the Exchange are properly scrutinised and ensure that they comply with proper financial reporting standards.

First Aluminium Nigeria Plc failed to present its financial results for 2012 (first and second quarter results) during the company’s presentation of facts behind the figures held at NSE Wednesday.
Stockbrokers who were present at the occasion lamented the lack of financial statements from the company stressing that financial results provide a basis by which its performance would be judged.

Although they commended the company for coming to meet with operators of the capital market, they said the presentation of financial reports would further enhance the fate of the company at the market.

y in Abuja, described the delay as “unacceptable’’, and called for a review of the long wait period.

Ashiru, who had earlier summoned the Canadian High Commissioner Chris Cooter over the issue,also suggested the use of photocopied passport data page rather than holding applicant’s passport during the waiting period.

The minister said, “Rather than holding on to visa applicant’s passports, the Mission should make do with photocopies of the data pages and to sight the passports.

“Thereafter, the passports can be surrendered to the Mission only at the point of the issuance of visas.

“This will allow passport holders the opportunity to use their passports for other travels, pending the approval of their visa applications by the Canadian Mission.’’

The minister, who stressed the cordial relations between Nigeria and Canada, said the Bi-National Commission between the two countries had paved the way for a deepened relations, especially in the economic sector.

In his response, Cooter pledged to report the concerns expressed by Ashiru to the appropriate authorities in Ottawa.

The News Agency of Nigeria reports that Canada and Nigeria have maintained diplomatic relations for over 50 years and share a commitment to freedom, democracy, human rights and the rule of law.

Article Credit:Punch News 

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Updated 7 Years ago

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