Investors Lose N19.46bn as NGXASI Declines by 0.08%; Overnight Rate Closed Flat at 16.50%; BDC Appreciates to 790
- EQUITIES MARKET
1.1 NGX – Listed Equities
Nigerian Equities Market closed negative as the key market indicator declined by 35.72bps amid negative market breadth
The NGX All-Share Index declined by 0.08% to close at 44,011.22 basis points as against 0.54% gain recorded previously to close at 44,046.94 basis points at the end of the last trading session. In Naira terms, the NGX Market CAP records N19.46bn loss.
YTD, the NGXASI Stands at +3.03%
The total volume traded declined by 38.72% to close at 97.70m, valued at N847.88m and traded in 2,980 deals. TRANSCORP was the most traded stock by volume with 10.65m units traded while GTCO was also the most traded stock by value which is put at N134m
Sectoral performance was broadly negative as two (2) NGX sector index closed northward, thirteen (13) closed southward while three (3) closed flat. The NGX Insurance index advanced by 0.17% to top the gainers chart while the NGXAFRDYI index dipped by 1.76% to top the losers’ chart.
Dangote index declined by 0.12% to close at 124.85 basis points as the Elumelu index declined by 0.91% to close at 105.32 basis points.
At the close of trading, market recorded 13 gainers to 20 losers and 70 unchanged. UNILEVER topped the list of gainers while GUINNESS topped the list of losers.
Thus, market breadth closed negative as the Market Breadth Index (MBI) is put at -0.10x.
Volume and Value Contribution
TRANSCORP led the volume’s chart with 10.91% contribution and closely followed by ACCESSCORP and STERLNBANK
GTCO tops the value’s chart with 15.80% contribution and closely followed by ZENITHBANK and NGXGROUP
NGX Earnings Summary
No Financial statement was released on the NGX Exchange today.
NGX Corporate News
No Corporate News was released on the NGX Exchange today
1.2 NASD OTC Exchange – Unlisted Equities
The NASD market index declined by 0.21% to close at 711.61 basis points as against flat position recorded previously to close at 713.10 basis points
The total volume traded closed positive at 38,542,247 units valued at N58.46m and traded in 14 deals.
At the close of trading, NASD OTC market recorded zero (0) gainer(s) to one (1) loser(s)
NASD Earnings Summary
No Financial statement was released on the NASD OTC Exchange today.
NASD Corporate News
No Corporate News was released on the NASD OTC Exchange today.
1.3 Global Indices
On the global scene, the East Isreal TA-100 Index leads the top five gainers with 0.74% gain while the Brazil Bovespa Index tops the top five losers with 3.46% loss as of 4pm Nigerian Time
1.4 African Indices
Similarly, on the African scene, the Casablanca Index tops the top five gainers with 1.89% gain while the South Africa Resource 10 Index tops the top five losers with 2.87% loss as of 4pm Nigerian Time
- BONDS AND FIXED INCOME MARKETS
2.1 Debt Market Size
The FMDQ Debt Market Size was not available as at the time of writing this report.
2.2 Overnight and Open Repo (OPR)
The Overnight lending rate closed flat at 16.50% while the Open Repo (OPR) rate also closed flat at 16.25%
- COMMODITIES MARKET
3.1 AFEX Indices
The AFEX ACI closed flat at 455.71 while the AFEX AEI closed flat at 210.37 basis points
3.2 AFEX Commodity Prices
Sorghum grew by 4.66% to top the gainers chart while Cocoa declined by 3.46% to top the losers chart.
3.3 Global Commodity Prices
Gold recorded 0.86% loss while Silver also depreciated by 2.80% as of 10: 54 NY time
In the energy market, Brent declined by 1.41% while WTI also declined by 1.66% as of 10: 53 AM Central Daylight Time (CDT)
- CURRENCY/ FX M7ARKET
The naira at the I&E FX Window appreciated by 0.21% to close at N445.75/USD while the NAFEX rate closed flat at N444.48/USD
Transcorp Hotels Plc Reports N2.27bn PAT in Q3 2022 Unaudited Results, (SP: N6.25k)
Transcorp Hotels Plc released its Q3 2022 Unaudited results for the period ended September 30th, 2022.
Key Highlights
- Revenue grew by 55.2% from N14.60m to N22.66m.
- Profit before tax stood at N3.29bn
- Profit after tax stood at N2.27bn
- Share Price Currently Stands at N6.25k
Court Stops Nigeria Air Deal
A Punch news report says the federal high court, Lagos Judicial Division, on Tuesday, issued an order of interim injunction restraining the Federal Government from executing the proposed establishment of the national carrier – Nigeria Air. The Minister of Aviation, Hadi Sirika, in response, said no law in Nigeria could stop the national carrier project. The registered trustees of the Airline Operators of Nigeria who were the Plaintiffs in the suit, alleged that the sale of shares of the proposed airline violated the Companies and Allied Matters Act, as well as that of the Securities and Exchange Commission. Among other things, the indigenous airlines (Plaintiff) want the court to stop the national carrier deal and withdraw the Air Transport License (ATL) already issued to Nigeria Air by the Federal Government/Nigerian Civil Aviation Authority as it did not pass through the normal security clearance. They also claimed that the firm, which served as Transaction Adviser on the transaction, was incorporated in March last year and alleged that the company was linked to the aviation minister.
Nigeria’s proposed national carrier, Nigeria Air, received the Air Transport License (ATL), early June, scaling one of the mandatory regulatory requirements to commence operations. The license given, with the number: NCAA/ATR1/ATL214, runs for five (5) years, starting from 03 June 2022 to 02 June 2027. An ATL certification is a document that states the type of operations a carrier can embark on within and outside Nigeria and serves as a prerequisite to getting the Air Operator’s Certificate (AOC). Conversations around the delayed national air came into spotlight again when the Minister of Aviation, Hadi Sirika, in November 2021 revived the hope that it would launch on or before April 2022 after failing initially to commence operations in 2018. However, the commencement date has been shifted to July 2022.
The defunct Nigeria Airways used to be the country’s national carrier and at some point, was the only airline in the country. However, the once bright Nigeria Airways abandoned the skies due to poor corporate governance and mismanagement, leading to a financial crisis, which made it cease operations in 2003. Following an extended period without a functioning national carrier, it dawned on the government to encourage private sector participation. This led to the joint venture partnership between the Virgin Group and local investors in 2004, birthing Virgin Nigeria Airways, which replaced the former Nigeria Airways. Amidst changing names from Virgin Nigeria to Nigerian Eagle Airlines and, finally, to Air Nigeria, the partnership was unsuccessful due to persistent government interference, leading to a collapse in 2012.
In our view, having a national carrier to facilitate a faster flow of goods and services across the continent, especially considering the commencement of the African Continental Free Trade Agreement (AfCFTA) is a positive step. Without a doubt, the airline offers significant economic benefits if rightly managed. However, the timing of the project appears inopportune, as the current local airline operators are grappling with severe operational challenges and the country itself is dealing with an extremely strained fiscal position. However, we await the Federal Government’s response to the claims of the Plaintiffs.
A Better Outing for the DMO in November 2022
The Debt Management Office (DMO) had a more successful outing at its most recent primary auction of FGN Bonds conducted this Monday compared with its last auction in October. The agency offered its usual NGN225bn worth of FGN paper split equally across the Apr ’29, Apr ‘32, and Apr ’37 maturities. It ended up raising NGN269bn, or around 1.2x the amount on offer. The total subscriptions amounted to NGN344bn, almost 3x the subscription level for the previous month, suggesting renewed investor interest in the auction, and a bid-to-cover ratio of 1.3x. The longer tenor benchmark, the Apr ’37, saw the most demand, as evidenced by its higher subscription and sale levels of NGN270bn and NGN217bn respectively.
The stop rates for the benchmarks on offer were 14.75%, 15.2%, and 16.2% for the Apr ’29, Apr ’32, and Apr ’37 benchmarks respectively.
The marginal rates were between 20bps to 25bps higher than rates at the October auction, a reflection of the high yield environment. They were also around 8bps, 55bps, and 7bps higher than those on the secondary market.
The DMO has now raised around NGN2.5trn from its auctions this year. The gross amount is roughly NGN2.8trn when non-competitive allotments are considered. However, this amount excludes smaller sums from sukuks and FGN savings bonds.
If we consider the net T-bills issuance of almost NGN1trn, the DMO has comfortably met its domestic funding target for the year.
Regardless, we do not see the agency slowing down on its pace of issuance in December due to the underperformance with external debt issuance this year.
The country’s stock of external debt increased by just USD1.6bn over H1 2022, due to tight financial market conditions globally. This falls far below the total external borrowings of USD6.3bn envisaged in the 2022 budget.
Going forward, we expect yields to remain elevated in the near term due to tight liquidity conditions in the market, the hawkish posture of the monetary authorities, and the DMO’s ready supply of FGN paper.
Nigeria’s Headline Inflation Soars to 21.09% in October 2022
– The National Bureau of Statistics released its inflation data for October today. In line with market expectation, headline inflation accelerated to a 17-year high of 21.09 on a year-on-year basis. This is 0.32% higher than the previous month’s inflation and 5.09% compared to same month in 2021. Source FDC Ltd Read More
NCP Okays Governance Framework for $3bn Hydropower Plant In Benue
– The National Council on Privatisation (NCP) has approved a governance framework for the development of a $3 billion hydropower plant in Makurdi, Benue state. Source TheCable Read More
States To Get $1bn Grant From World Bank Dec – Zainab
– The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed has said states will soon get $1 billion as part the last tranche of the $1.5 billion grants under the World Bank assisted States’ Fiscal Transparency, Accountability and Sustainability (SFTAS) Programme will be released in December 2023. Source Daily Trust Read More
AFC Queries GOE’s Non-remittance of Revenues to Federation Account
– Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has queried the non-remittances of revenue generated by some agencies classified as Government- Own Enterprises (GOEs) to the Federation Account. Source Sun Read More
Nigerian Ex-General Takes on Former Partner That Won $11 Billion Award
– A firm owned by a billionaire former Nigerian defense minister is suing an ex-business partner that’s at the center of a high-stakes London trial over an $11 billion arbitration award, previously unreported court documents show. Source Bloomberg Read More
CEO Remuneration 2022: Querying CEO’s Share of Revenue in the World’s Largest Companies
– Looking at the dynamics of CEO Pay from the lens of global corporations, we specifically consider how CEO remuneration has responded to changes in firms’ revenue due to global inflation. The financials of the world’s leading firms suggest that turnover rose during an evolutionary phase emerging after the epoch crises of COVID -19, which led to the global socioeconomic system of various actors at all levels adapting to an irreversible work model. Source Proshare Research Read More
23 Nigerians Make MIPAD Global Top 100 Under 40 List
– 100 young persons of African descent under 40 years have been recognized as the Most Influential People of Africa Decent 2022 by the Most Influential People of African Descent (MIPAD), a global civil society initiative in support of the UN International Decade for people of African descent. Source MIPAD Read More
FG Conducts Feasibility Studies on 3,658km Railway Routes
– The Federal Government has carried out feasibility studies on 3,658km railway routes across the country considered viable for development. The government also stated that efforts were ongoing to improve and sustain intra- and inter-city mass transit railway services in state capitals along the rail corridor. Source Punch Read More
Nigeria Remains France’s Leading Trade Partner in SSA
– The Director General of the Franco-Nigerian Chamber of Commerce and Industry (FNCCI), Moses Umoru has said Nigeria remains France’s leading trade partner in sub-Saharan Africa and the fourth in Africa behind Morocco, Algeria, and Tunisia with the energy sector taking a prominent position in trade. Source Guardian Read More
NCC Moves Ahead With 5G Auction Amid Calls for Administrative Licencing
– Some telecommunications operators in the country have requested that Nigerian Communications Commission (NCC) to issue them the 3.5GHz (gigahertz) spectrum for the deployment of fifth generation (5G) mobile technology through administrative licencing. Source Leadership Read More
Digital Economy: NITDA Reaffirms Commitment to Youth Empowerment
– With the surge in global unemployment and inflation statistics now a nightmare to world leaders, Director General of the National Information Technology Development Agency (NITDA). Source Sun Read More
