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Stories by Omodele Adigun
Despite the bear runs, volume of business spiked by over 48 per cent Monday on the Lagos floor of the Nigerian Stock Exchange (NSE) just as the market indicators headed south.
At the close of business, the investors exchanged 378.51 million shares valued at N2.27 billion in 3,519 deals. This was about 48.03 per cent higher than the 255.73 million shares worth N2.11 billion traded on Friday in 3,659 deals.
In spite of the higher turnover, both the All Share Index and the market capitalisation fell by 0.11 per cent to close at 27,629.90 points, from the 27,659.44 with which it opened the day, while the market capitalisation, which opened at N9.499 trillion, lost N10 billion to close at N9.489 trillion.
With respect to price movement, Forte Oil topped the losers’ chart with N18.99 loss to close at N175.91 per share. It was followed by Seplat Petroleum Development with N16.50 to close at N313. 50 and Dangote Cement with N4.50 to close at N175 per share.
Guinness lost N1.48 to close at N95, just as Lafarge Africa declined by 41kobo to close at N59.24 per share.
On the other hand, Nigerian Breweries gained N6.90 to close at N144.91 per share to make the gainers’ slot.
Total Nigeria was up N1.50 to close at N181.50, while ETI advanced by 59kobo to close at N12.39 per share.
Oando gained 51kobo to close at N5.63 and Zenith Bank grew by 28kobo to close at N15.63 per share.
FBN Holdings emerged the most traded equity, exchanging 114.92 million shares worth N399.52 million.
It was followed by Access Bank with a turnover of 48.59 million shares valued at N254.43 million and Skye Bank sold 41.38 million shares worth N32.47 million.
Investors staked N136.55 million on 31.37 million shares of United Bank for Africa and Zenith Bank exchanged 27.14 million shares worth N424.69 million.
FG should kick-start Commodity Exchange, says Obasanjo
Ex-President Olusegun Obasanjo has urged the Federal Government to kick-start the Abuja Commodity Exchange(NXC) as part of measures to diversify the economy.
According to Obasanjo, who stated this in Ota , Ogun State, when he played host to the principal officers of the Chartered Institute of Stockbrokers (CIS) led by its President, Mr Seyi Abe, the Federal Government should take advantage of the capital market to revive the economy by sourcing cheap funds to finance budget deficit and execute capital projects.
According to him, no economy could thrive without a strong and virile capital market, adding that there is a correlation between the development of an economy and its capital market.
He explained that many parlous economies had bounced back on the strength of their capital markets. He cited Ethiopia where the economic revival was achieved on the back of effective and efficient Commodity Exchange.
The former president also endorsed the ongoing literacy programme of the Institute as a veritable strategy to expose Nigerians to the capital market in the development of the economy.
Recall that CIS has embarked upon lecture series in schools, churches, mosques, club houses and a host of others to create awareness on the benefits of the market.
Obasanjo commended the institute for taking its campaign to the door steps of every citizen. He also expressed optimism that the introduction of Diploma Programme in Securities and Investment by the Institute would bring the youths into the capital market community as future entrepreneurs.
Obasanjo explained that the Nigeria’s capital market had always been a platform where individuals could undertake capital formation while corporate organizations and governments at all tiers could as well mobilize medium and long term funds for project development.
He advised the Federal Government to take advantage of the Nigerian capital market to revive the economy by sourcing cheap funds to finance budget deficit and execute the capital projects in the 2016 fiscal budget.
He urged the principal officers of the CIS to provide technical support for the Federal Government to expedite action on the commencement of the NXC. He advised the CIS to tap from the Ethiopian model in this regard.
Responding , Abe recalled that as Nigeria’s President , Obasanjo had taken keen interest in ensuring a sustainable capital market operation, adding that there was an increase in the market capitalisation from about N700billion to N14 trillion by the time he handed over to new government.
“However, after the exit of Chief Obasanjo as the President , the capital market witnessed a downturn from N14 trillion to about N9 trillion currently, “ said Abe.
The CIS boss explained that the purpose of the visit was to discuss issues of market development with his host in continuation of the Institute’s efforts to ensure a stronger and sustainable capital market with renewed interest and confidence of all stakeholders .
Obasanjo, who appreciated the Institute for taking a bold step in addressing issues affecting the Nigerian capital market promised to support the Institute in its advocacy for market development .
He advised that there was need to increase the level of financial literacy among the citizens and local investors in Nigeria with active government participation.
