The Nigerian Stock Exchange (NSE) closed the week on a positive note, as the All Share Index closed the week at 32,456.98 basis points, up 0.22%. Year to date, the index is down 15.13%. 29 stocks gained this week, 100 stocks were unchanged and 40 stocks declined.
Here are the top gainers and losers for the week.
Wema Bank Plc
Wema Bank was the best performing stock this week. The stock opened at N0.56 and closed at N0.66, up N0.10 or 17.86%. Year to date, the stock is up 26.92%.
Chemical and Allied Products Plc appreciated by 15.99% this week. The stock opened at N28.45 and closed at N33.00, up N4.55. Year to date, the stock is down 2.94%.
Mutual Benefits Assurance Plc
Mutual Benefits Assurance opened the week at N0.26 and closed at N0.29, up 11.54% or N0.03. Year to date, the stock is down 42%.
Wapic Insurance Plc
Wapic Insurance gained 10% this week. The stock opened at N0.40 and closed at N0.44, up N0.04. Year to date, the stock is down 12%.
Niger Insurance Plc
Niger Insurance opened at N0.30 and closed at N0.33, up N0.03 or 10%. Year to date, the stock is down 34%.
Cornerstone Insurance Plc
Cornerstone Insurance added 10% this week. The stock opened at N0.20, and closed at N0.22, up N0.02. Year to date, the stock is down 56%.
Okomu Oil Palm Company Plc
Okomu Oil opened at N73.20 and closed at N79.80, up N6.60 or 9.02%. Year to date, the stock is up 17.89%.
Neimeth International Pharmaceuticals Plc
Neimeth International Pharmaceuticals gained 8.47% this week. The stock opened at N0.59 and closed at N0.64, up N0.05. Year to date, the stock is down 14.67%.
Caverton Offshore Support Group
Caverton Offshore Support Group opened at N1.84, and closed at N1.97, up N0.13 or 7.07%. Year to date, the stock is up 52.71%.
Redstar Express Plc
Redstar Express Plc appreciated by 6.98% this week. The stock opened at N4.30 and closed at N4.60, up N0.30. Year to date, the stock is down 10.16%.
First Aluminum Plc
First Aluminum Plc was the worst performing stock this week. The stock opened at N0.42 and closed at N0.33, down N0.09 or 21.43%. Year to date, the stock is down 34%.
McNichols Plc declined by 18.06% this week. The stock opened at N0.72 and closed at N0.59, down N0.13. Year to date, the stock is down 50.83%.
Cutix Plc opened at N4.73 and closed at N3.90, down N0.83 or 17.55%. Year to date, the stock is down 94.03%.
John Holt Plc
John Holt Plc fell by 16.98% this week. The stock opened at N0.53, and closed at N0.44, down N0.09. Year to date, the stock is down 12%.
Champion Breweries Plc
Champion Breweries opened at N1.80, and closed at N1.62, down N0.18 or 10%. Year to date, the stock is down.
Honeywell Flour Mills Plc
Honeywell Flour Mills shed 9.93% this week. The stock opened at N1.41 and closed at N1.27, down N0.14. Year to date, the stock is down 39.52%.
The Initiates Plc
The Initiates Plc opened at N0.62, and closed at N0.56, down N0.06 or 9.68%. Year to date, the stock is down 31.71%.
Transcorp Hotels Plc
Transcorp Hotels Plc shed 9.63% this week. The stock opened at N6.75 and closed at N6.10, down N0.65. Year to date, the stock is down 15.40%.
RT Briscoe Plc
RT Briscoe Plc opened at N0.42 and closed at N0.38, down N0.04 or 9.52%. Year to date, the stock is down 24%.
Northern Nigeria Flour Mills Plc
Northern Nigeria Flour Mills opened at N6.50 and closed at N5.90, down N0.60 or 9.23%. Year to date, the stock is up 3.51%.
The World’s Economy may not survive without a vaccine
Industries like tourism and travel with social distancing rules in place will only scramble for the little they can get while sports stadiums, entertainment hot-spots, etc., will remain closed.
As parts of the world restart economic activities, it is becoming clear that the worst plunge in modern history would need a vaccine or cure before things can revert to normal.
In response to the exogenous shock that is the Covid-19 pandemic, leaders, researchers, analysts, and experts have sought methods, options, – anything to reduce the negative impact of what many now regard as the worst slump since the 1930s. So far, different parts of the world have put systems and structures in place to allow a level of economic activity to continue as it became increasingly clear that full social welfare was simply unsustainable. This is, however, not without the existence of relevant restrictions like temperature checks, social distancing rules, and the latest fashion accessories – masks and gloves.
While this is an admittedly better development than the enforced total lockdown – at least for the economy, this too has its limitations. Economic activities have taken on a sluggish growth pace and while production might continue, global demand remains hamstrung. Industries like tourism and travel with social distancing rules in place will only scramble for the little they can get. Sports stadiums, entertainment hot-spots, etc., will remain closed. Even with the increased dependence of delivery services, restaurants will struggle to make what they used to before. Jobs have been cut and even more will. In essence, the partial reopening of the economy isn’t also sustainable. Yet, it is impossible to ignore the virus itself especially given the risks of a resurgence of the virus in already treated patients and the increasing cases in many parts of the world.
Data obtained from Bloomberg revealed that people infected around the world reached 5 million with a death toll of over 330,000. With the pandemic still on our tails, finding a vaccine is our best bet – and nothing else might be able to beat that. Stephen Jen, CEO of Eurizon SLJ Capital – hedge fund and advisory firm in London told Bloomberg News that there’s some sort of bounty on the virus globally.
In his words, “I don’t see how it is wiser for investors to bet on the virus than to bet on science, technology, and unlimited political and financial capital in the world to contain and defeat the virus.”
Also, the shares of American drug maker based in Massachusetts, Moderna Inc., hit a record high early in the week, as a result of its early data from a small trial of the company’s Covid-19 vaccine. It, however, gave up some of those gains days after stock traders scrutinized the early nature of the vaccine data.
Bloomberg Economics predicts that the restriction and shutdown of businesses triggered a plunge in economic activities of about 30% and their findings found that the first steps to relax controls will have a good impact on activity than later ones. Yet, our optimism is palpable. Anita Zaidi, Director of Vaccine Development and Surveillance at the Bill & Melinda Gates Foundation have advised that the process of creating an effective immunity could take years, and even then it will have to solve the issue of logistics that is making the vaccine readily available globally.
Today, the world waits in hope that this too passes like many of its predecessors. While it will indeed pass, there still is no saying how long it will take before life reverts to a new but sustainable normal.
Covid-19 Update in Nigeria
On the 23rd of May 2020, 265 new confirmed cases were recorded in Nigeria bringing the total confirmed cases recorded in the country to 7,526.
The spread of novel Corona Virus Disease (COVID-19) in Nigeria has continued to rise rapidly as the latest statistics provided by the Nigeria Centre for Disease Control revealed Nigeria now has 7,526 confirmed cases.
On the 23rd of May 2020, 265 new confirmed cases were recorded in Nigeria
To date, 7526 cases have been confirmed, 2174 cases have been discharged and 221 deaths have been recorded in 34 states and the Federal Capital Territory having carried out 43,328 tests.
The 265 new cases were reported from 13 states- Lagos (133), Oyo (34), Edo (28), Ogun (23), FCT (22), Plateau (6), Kaduna (5), Borno (3), Niger (3), Kwara (2), Bauchi (2), Anambra (2), Enugu (2).
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4.
The latest numbers bring Lagos state total confirmed cases to 3357, followed by Kano (883), Abuja at 469, Katsina (308), Borno (250), Jigawa (241), Oyo (233), Bauchi (232), Ogun (219), Kaduna (184), Edo (172), Gombe (145), Sokoto (116), Rivers (89), Plateau (77), Zamfara (76).
Kwara State has recorded 75 cases, Yobe (47), Osun (42), Nasarawa (38), Kebbi (32), Delta (31), Adamawa (27), Niger (26), Ondo (23), Ebonyi (22), Akwa Ibom (21), Ekiti (20), Taraba and Enugu (18), Bayelsa and Anambra (8), Imo and Abia (7), while Benue state has recorded 5 cases.
|Date||Confirmed case||New cases||Total deaths||New deaths||Total recovery||Active cases||Critical cases|
|May 23, 2020||7526||265||221||0||2174||5131|
|May 22, 2020||7261||245||221||10||2007||5033||7|
|May 21, 2020||7016||339||211||11||1907||4898||7|
|May 20, 2020||6677||284||200||8||1840||4637||7|
|May 19, 2020||6401||226||192||1||1734||4475||7|
|May 18, 2020||6175||216||191||9||1644||4340||7|
|May 17, 2020||5959||388||182||6||1594||4183||7|
|May 16, 2020||5621||176||176||5||1472||3973||7|
|May 15, 2020||5445||288||171||3||1320||3954||4|
|May 14, 2020||5162||193||168||3||1180||3815||4|
|May 13, 2020||4971||184||164||6||1070||3737||4|
|May 12, 2020||4787||146||158||6||959||3670||4|
|May 11, 2020||4641||242||152||10||902||3589||4|
|May 10, 2020||4399||248||142||17||778||3479||4|
|May 9, 2020||4151||239||127||11||745||3278||4|
|May 8, 2020||3912||386||118||10||679||3115||4|
|May 7, 2020||3526||381||108||4||601||2818||4|
|May 6, 2020||3145||195||104||5||534||2507||1|
|May 5, 2020||2950||148||99||5||481||2370||4|
|May 4, 2020||2802||245||94||6||417||2291||2|
|May 3, 2020||2558||170||88||2||400||2070||2|
|May 2, 2020||2388||220||86||17||351||1952||2|
|May 1, 2020||2170||238||69||10||351||1751||2|
|April 30, 2020||1932||204||59||7||317||1556||2|
|April 29, 2020||1728||196||52||7||307||1369||2|
|April 28, 2020||1532||195||45||4||255||1232||2|
|April 27, 2020||1337||64||41||0||255||994||2|
|April 26, 2020||1273||91||41||5||239||994||2|
|April 25, 2020||1182||87||36||3||222||925||2|
|April 24, 2020||1095||114||33||1||208||855||2|
|April 23, 2020||981||108||32||3||197||753||2|
|April 22, 2020||873||91||29||3||197||648||2|
|April 21, 2020||782||117||26||3||197||560||2|
|April 20, 2020||665||38||23||1||188||466||2|
|April 19, 2020||627||86||22||2||170||436||2|
|April 18, 2020||541||48||20||2||166||356||2|
|April 17, 2020||493||51||18||4||159||317||2|
|April 16, 2020||442||35||13||1||152||277||2|
|April 15, 2020||407||34||12||1||128||267||2|
|April 14, 2020||373||30||11||1||99||263||2|
|April 13, 2020||343||20||10||0||91||242||2|
|April 12, 2020||323||5||10||0||85||228||2|
|April 11, 2020||318||13||10||3||70||238||2|
|April 10, 2020||305||17||7||0||58||240||2|
|April 9, 2020||288||14||7||1||51||230||2|
|April 8, 2020||274||22||6||0||44||226||2|
|April 7, 2020||254||16||6||1||44||204||2|
|April 6, 2020||238||6||5||0||35||198||2|
|April 5, 2020||232||18||5||1||33||194||2|
|April 4, 2020||214||5||4||0||25||185||0|
|April 3, 2020||209||25||4||2||25||180||0|
|April 2, 2020||184||10||2||0||20||162||0|
|April 1, 2020||174||35||2||0||9||163||0|
|March 31, 2020||139||8||2||0||9||128||0|
|March 30, 2020||131||20||2||1||8||121||0|
|March 29, 2020||111||22||1||0||3||107||0|
|March 28, 2020||89||19||1||0||3||85||0|
|March 27, 2020||70||5||1||0||3||66||0|
|March 26, 2020||65||14||1||0||2||62||0|
|March 25, 2020||51||7||1||0||2||48||0|
|March 24, 2020||44||4||1||0||2||41||0|
|March 23, 2020||40||10||1||1||2||37||0|
|March 22, 2020||30||8||0||0||2||28||0|
|March 21, 2020||22||10||0||0||1||21||0|
|March 20, 2020||12||4||0||0||1||11||0|
|March 19, 2020||8||0||0||0||1||7||0|
|March 18, 2020||8||5||0||0||1||7||0|
|March 17, 2020||3||1||0||0||0||3||0|
|March 16, 2020||2||0||0||0||0||2||0|
|March 15, 2020||2||0||0||0||0||2||0|
|March 14, 2020||2||0||0||0||0||2||0|
|March 13, 2020||2||0||0||0||0||2||0|
|March 12, 2020||2||0||0||0||0||2||0|
|March 11, 2020||2||0||0||0||0||2||0|
|March 10, 2020||2||0||0||0||0||2||0|
|March 9, 2020||2||1||0||0||0||2||0|
|March 8, 2020||1||0||0||0||0||1||0|
|March 7, 2020||1||0||0||0||0||1||0|
|March 6, 2020||1||0||0||0||0||1||0|
|March 5, 2020||1||0||0||0||0||1||0|
|March 4, 2020||1||0||0||0||0||1||0|
|March 3, 2020||1||0||0||0||0||1||0|
|March 2, 2020||1||0||0||0||0||1||0|
|March 1, 2020||1||0||0||0||0||1||0|
|February 29, 2020||1||0||0||0||0||1||0|
|February 28, 2020||1||1||0||0||0||1||0|
IGR: States make N1.33 trillion in 2019, grows by 14.1%
The report showed that 33 states, including Abuja, recorded positive growth in revenue, while 4 states generated less in 2019 compared to 2018.
The latest Internally Generated Revenue (IGR) report released by the National Bureau of Statistics, revealed that 36 states and the Federal Capital Territory, generated a sum of N1.33 trillion in 2019, a 14.1% increase compared to N1.17 trillion generated in 2018.
According to the report, 83.4% (N1.11 trillion) of the generated revenue was in form of taxes, while 16.6% (221.56 billion) was from MDAs’ revenue.
The report showed that 33 states, including Abuja, recorded positive growth in revenue, while 4 states generated less in 2019 compared to 2018.
- Lagos state maintains its position as the commercial hub of Nigeria as it contributed 29.9% (N398.73 billion) to the total states’ IGR.
- Rivers state followed, having generated a sum of N140.4 billion, thereby contributing 10.5% to the total revenue generated.
- The Federal Capital Territory ranked third as it generated N74.56 billion (5.6%) internally.
- Other states with the biggest IGR for 2019 include Ogun (N70.9 billion), Delta (N64.7 billion), Kaduna (N44.9 billion), Kano (N40.6 billion) as well as Akwa Ibom. Enugu and Kwara states followed with N32.3 billion, N31.1 billion and N30.6 billion respectively.
Yobe, Zamfara, Osun, others record highest growth in IGR
While Lagos and Rivers states dwarfed others in revenue generation, Yobe, Zamfara, and Osun states recorded the highest positive growth in IGR for the year ended 2019.
- Yobe state recorded the highest rise in IGR between 2018 and 2019 as the revenue grew by 92.7% from N4.38 billion to N8.44 billion.
- Zamfara and Osun states followed with respective growths of 87.85% and 72.64%. Specifically, Zamfara state grew its revenue from N8.2 billion to N15.4 billion, while Osun IGR rose from 10.4 billion in 2018 to N17.9 billion in 2019.
- Other states that significantly grew their IGR include Benue, Adamawa and Kaduna, having grown their revenue by 59.2%, 56.4%, and 52.7% respectively.
Revenue drought amidst COVID-19 pandemic
As the confirmed cases of COVID-19 in Nigeria continue to increase by the day, having spread across 34 states of the federation, and forcing a partial shutdown of the economy, the country faces a possible recession in 2020.
Recall that IMF earlier predicted that Nigeria’s economy would slide by 3.4% in 2020 and the Finance Minister recently admitted that the crash in crude prices would negatively affect the country’s revenue and foreign exchange earnings.
The internally generated revenue serves a major source of revenue for most states, but with the decline in economic activities during the pandemic, there is a major concern as to how most states will be able to manage their affairs.
Meanwhile, many states and local governments depend on monthly statutory allocations from the central vault to carry out their businesses, and as the country’s revenue is expected to decline, the FAAC allocations to states will also reduce.
The big question is how will the states fare amidst COVID-19 pandemic.