2 <strong>BUSINESS</strong> A.M. <strong>FEB</strong>RUARY, MONDAY 05 - SUNDAY 11, <strong>2018</strong> NEWS Equities rally moderates as NSEASI falls 1.98% week on week Andy Nssien N i g e r i - an equities NEWS traded lower in the week ended January 2, <strong>2018</strong> as benchmark index (NSEA- SI) fell 1.98 percent week on week despite surge in financial services stocks. The NSEASI, the benchmark index, and market capitalization depreciated by 1.98 percent and 2.09 percent to close the week at 44,639.99 and N16.02 trillion respectively. Similarly, all other indices finished higher during the week with the exception of the NSE-main board, NSE consumer goods and NSE oil/gas indices that depreciated by 0.33 percent, 3.33 percent and 0.70 percent respectively. The NSE ASeM Index closed flat. A total of 3.268 billion shares worth N28.123 billion in 35,761 deals was traded during week by investors in contrast to a total of 7.157 billion shares valued at N42.545 billion that changed hands in the previous week in 39,037 deals. The conglomerates industry followed with 375.113 million shares worth N1.047 billion in 1,968 deals. The third place was occupied by consumer goods industry with a turnover of 262.198 million shares worth N6.843 billion in 5,921 deals. Top three traded equities were FCMB, Transnational Corporation of Nigeria Plc, and Skye Bank Plc (measured by volume) accounted for 1.181 billion shares worth N2.830 billion in 5,219 deals, contributing 36.14 percent and 10.06 per cent to the total equity turnover volume and value respectively. Market breath closed better in the week as 49 equities appreciated as against 30 in the previous week. Forty-two (42) equities depreciated in price, Trading activities in treasury NEWS bills and foreign exchange drove FMDQ’s market turnover to N142 trillion in 2017. This is despite a slow recovery from economic recession, which shaped most activities in the year. The FMDQ in its January newsletter/market report said total over-the-counter (OTC) market turnover saw a year-on-year A major development in the week was the listing of Seplat’s additional volume of 25,000,000 ordinary shares of 50 kobo each. Pension funds managers find fortune in stocks as investments return 21.72% ytd Steve Omanufeme Nigerian pension funds NEWS asset managers are looking no further than stocks as the rally in the market in the last seven months have put their investments in pole position, returning 21.72 percent yearto date. The Nigerian Stock Exchange (NSE) market report for the week ended February 2, <strong>2018</strong> indicates that its pension index, which includes about 40 companies with significant market capitalization, in which pension funds are invested returned about 22 percent in January <strong>2018</strong>. The pension index thus emerged in the top three of gainers in the review period. The banking index topped indexes with the highest yearto-date gain of 24.5 percent followed by the industrial goods index at 21.92 percent The pension index specifically serves as performance benchmark for pension asset managers, non-pension asset managers and investors for the investment of pension assets. It also helps PENCOM monitor compliance and performance of equities portfolios held by pension managers. It equally provides a tracking mechanism for pension funds administrators (PFAs), closed pension funds administrators (CPFAs) and others that follow the PENCOM guidelines, while acting as benchmark for measuring performance and reporting performance to retirement savings account (RSA) holders. The Stock Exchange information guide to the Pension Index notes that given the size of the pension fund assets under management by PFAs, it is imperative that only companies with significant market capitalization should qualify for inclusion in it. The NSE Pension 40 Index has performed well since the stocks market picked up in the second quarter of 2017 following policies by the CBN, which brought a flurry of portfolio investors into the market The development thus freed The NSE Pension 40 Index has performed well since the stocks market picked up in the second quarter of 2017 following policies by the CBN pension schemes from building up cash holding, which pervaded the system in 2016 amid fears that equities and bonds are having negative returns or are too pricey for purchase. According to the Pension Reform Act of 2014, the allowable investment instrument for pension funds shall include bonds, sukuk, treasury bills, global depository notes and other securities issued by the Federal Government of Nigeria and CBN or their agencies as well as special purpose vehicles and companies created/owned by the Federal Government of Nigeria, provided that the securities are guaranteed by the CBN or Federal Government of Nigeria. Others are ordinary shares of public limited liability companies listed or proposed to be listed through an initial public offering (IPO), on a securities exchange registered by the country’s Securities and Exchange Commission . Money market instruments of banks and commercial papers issued by eligible corporate entities are also eligible Kemi Adeosun (l), minister of finance, receiving the report of the National Tax Policy Implementation Committee (NTPIC), from Taiwo Oyedele, vice chairman, NTPIC, in Abuja on Friday Increased trade in treasury bills, FX drive FMDQ market turnover to 142trn in 2017 Steve Omanufeme lower than forty-four (44) equities of the previous week, while eighty-one (81) equities remained unchanged lower than ninety-eight (98) equities recorded in the preceding week. Also traded during the week were a total of 32,189 units of Exchange Traded Products (ETPs) valued at N1.299 million executed in 19 deals, compared with a total of 153,755 units valued at N1.883 million that was transacted last week in 11 deals. A total of 16,268 units of Federal Government Bonds valued at N17.053 million were traded this week in 28 deals, compared with a total of 6,715 units valued at N5.318 million transacted last week in 15 deals. A major development in the week was the listing of Seplat’s additional volume of 25,000,000 ordinary shares of 50 kobo each. The additional shares were as a result of the company’s Long Term Incentive Plan (LTIP) for the benefit of it’s employees. With this listing, the company’s total issued and fully paid up shares now stands at 588,444,561 ordinary shares was recorded. On bonds market, an additional volume of 45,122,840 units and 64,877,160 units were added to 14.50% percent FGN Jul 2021 and 16.2884% percent FGN Mar 2027 respectively on the 2nd of February <strong>2018</strong>. growth rate of 24.97 percent, rising from the N113.65 trillion recorded in 2016 to N142.00 trillion in 2017. According to the newsletter, FMDQ’s markets experienced a slow but steady improvement, with growth primarily driven by trading activities in the FX and treasury bills (T-bills) markets. It said trading activities in the T-bills market contributed the largest to overall turnover, accounting for 42.47 percent of the total market turnover, whilst FX transactions (including FX derivatives) followed with a combined share of 26.90 percent, and repos/buy-backs accounted for 22.46 percent. Bonds and money market transactions (including unsecured placement & takings, commercial papers and money market derivatives), on the other hand, had smaller shares of the market, accounting for 7.01 percent and 1.16 percent respectively. The reported turnover represents trades executed among dealing members, dealing members & clients, and dealing members & the Central Bank of Nigeria (CBN). The FMDQ OTC Market Turnover Report shows the turnover on all products traded on the FMDQ secondary market – FX, T-bills, bonds (Federal Government of Nigeria (FGN) Bonds, other Bonds (agency, sub-national, corporate, supranational & Eurobonds) and money market (repos/buybacks and unsecured placements/takings). The figures exclude primary market auctions in T-bills and bonds The FMDQ said it has remained steadfast in its drive to support and champion growth and development in the Nigerian debt capital, foreign exchange (FX) and derivatives markets and would continue to focus on delivering its mandates for these markets, in support of the realisation of the economic development agenda for Nigeria. It said with relevant collaboration and the effective support of financial market stakeholders in 2017, the OTC Exchange delivered value-adding initiatives and solutions, provided quality and reliable market data and information, promoted price discovery and transparency, facilitated education and capacity building, and has gradually commenced the journey towards the integration of the domestic markets with the international counterparts. “Focused on promoting the development of the markets within its purview through the roll out of innovative initiatives in <strong>2018</strong>, with an even expanded scope to unlock capital through the markets for the development of the Nigerian economy, FMDQ shall continue to work with its stakeholders to make the Nigerian financial markets globally Competitive.’’
<strong>BUSINESS</strong> A.M. <strong>FEB</strong>RUARY, MONDAY 05 - SUNDAY 11, <strong>2018</strong> 3
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