3 months ago
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The Nigerian Exchange Limited (NGX) said it has facilitated the raising of about N5.7 trillion across different asset classes this year as part of its efforts to drive bank recapitalisation exercise.
Chief Executive Officer of the NGX, Jude Chiemeka, stated that the capital market could serve as the primary source of bulk mobilisation of capital through its robust technology and market infrastructure to enable banks to meet the CBN minimum capital requirements under a seamless and effective process.
According to him, the market has a strong and liquid secondary market that would facilitate not only the purchase of shares but also the sale of shares to enhance financial inclusion and deepen market participation.
“I do not think what the banks are looking for is anywhere near N5.7 trillion. If you think about the strong secondary market that would guarantee sales, the market has enough liquidity that would facilitate the sale of shares in the secondary market.
“As of last week Friday, the market has traded over $1 billion which is N1.6trillion, there is indeed a strong secondary market behind what NGX does,” he said.
He said the exchange is positioned to support the financing of banks’ recapitalisation and any capital projects because it has the platform, right partnerships both domestic and international in terms of market structure.
Chukwuemeka said the market was made up of only four per cent of international investors with 96 per cent of local investors before the election, but added that the number of foreigners has increased to 21 per cent.
Meanwhile, transactions on the NGX continued on a downward note yesterday as the all-share index (ASI) plunged further by 0.5 per cent amid losses in Nestle and 28 stocks.
At the close of transactions yesterday, market capitalisation of listed equities depreciated by 0.50 per cent to N55.295 trillion from N55.574 trillion it closed on Monday. Also, the ASI, which measures the performance of listed equities, dropped by 490.93 basis points to 97390.01 points from 97880.94 points reported the previous day.
Yesterday’s negative performance was driven by price depreciation in large and medium-capitalised stocks which are Nestle, Oando, Zenith Bank, United Bank for Afrìca, FBN Holdings and Sky Aviation.
On the price movement chart, Oando Plc topped losers’ chart, dropping by 9.97 per cent to close at N40.20 kobo, Livestock Feeds trailed with a loss of 8.1 per cent to close at N2.27 kobo.
Cornerstone Insurance fell by 7.66 per cent to close at N2.17, Linkage Assurance dipped by 7.61 per cent to close at 85 kobo, Sovereign Trust Insurance also depreciated by 7.41 per cent to close at 50 kobo.
On the other hand, Mecure led gainers’ chart with 9.98 per cent to close at N9.37 kobo while Neimeth International Pharmaceutical followed with a gain of 9.9 per cent to close at N2.11 kobo. Champion Breweries added 9.75 per cent to close at N3.04 kobo. UPL gained 9.63 per cent to close at N2.39 kobo. RTBriscoe also garnered 9.35 per cent to close at N1.52 kobo.
Volume of trading activities increased by 104.975 million, representing 21.24 per cent as investors traded 599.246 million shares valued at N13.916 billion in 11237 deals against 494.271 million shares worth N11.77 billion exchanged hands the previous day in 10645 deals.
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