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Investors lose N713 billion in April as NSE ends trading with N135 billion loss

Investors have lost N713 billion in April 2019 after the Nigerian Stock Exchange (@nsenigeria) closed the month lower than the market capitalisation and the All Share Index it opened the month of April with.

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Investors lose N713 billion in Nigerian Stock Exchange, Bargain hunting in stock market

Investors have lost N713 billion in April 2019 after the Nigerian Stock Exchange (NSE) closed the month lower than the market capitalisation and the All Share Index it opened the month of April with.

The stock market opened the month of April with a market capitalisation of N11.672 trillion  and an All Share Index of 31,041.42 basis points. However, it closed with a market capitalisation of N10.959 trillion and ASI of 29,159.74bps on the last trading day of the month.

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The total investment lost reached N713 billion after the nation’s stock market recorded N135 billion loss on Tuesday, the last trading day in April.

On Tuesday, the ASI shed 1.22 percent to close at 29,159.74bps as the gains recorded in 26 stocks were offset by major losses recorded in 19 stocks.

Major losses were recorded in Dangote Cement Plc, Nestlé Nigeria Plc and Stanbic IBTC Holdings Plc.

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The number of deals recorded: A total of 543.924 million stocks valued at N8.2 billion were traded in 4,682 deals, representing an 87.4 per cent and 278.8 per cent increase in volume and value traded, respectively, as the year-to-date return worsened to -7.22 per cent.

The top traded stocks by volume: Cement Company of Northern Nigeria Plc (132.328 million units), FBN Holdings Plc (68.783 million units), Unilever Nigeria Plc (50.470 million units), Guaranty Trust Bank Plc (41.441 million units) and Dangote Flour Plc (37.882 million units).

The top traded stocks by value: Cement Company of Northern Nigeria (N1.86bn), Unilever (N1.56bn), GTBank (N1.38bn), Dangote Flour (N712m) and FBN Holdings (N497m).

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Performance across sectors was largely bullish as three of five indices closed on a positive note.

The oil and gas index was the highest gainer, up by 1.50 per cent following buying interest in Seplat Petroleum Development Company Plc and Forte Oil Plc.

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Also, the insurance index advanced by 0.11 per cent on the back of major gains recorded in Lasaco Assurance Plc.

Patricia

The banking index recorded a marginal gain of 0.08 per cent due to major gains in Zenith Bank Plc and Access Bank Plc.

Declining indices: The industrial goods index led decliners, down by 3.19 per cent as a result of profit-taking activities in Dangote Cement Plc and Cement Company of Northern Nigeria.

The consumer goods index declined by 0.67 per cent as a result of major losses witnessed in Nestlé and Dangote Sugar Refinery Plc.

Meanwhile, Investor sentiment, as measured by market breadth (advance/decline ratio), strengthened to 1.4x from 1.0x recorded on Monday, the report said.

The top performers: UACN Property Development Company Plc, Japaul Oil and Maritime Services Plc and Caverton Offshore Support Group Plc, which gained 10 per cent each; and Forte Oil Plc and Dangote Flour Mills Plc, whose respective share prices gained 9.97 per cent and 9.94 per cent.

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The top five losers: Cutix Plc, Goldlink Insurance Plc, Cement Company of Northern Nigeria, Unity Bank Plc and Nascon Allied Industries Plc, which saw their share prices shed 9.76 per cent, 9.09 per cent, 8.79 per cent, 5.88 per cent and 4.74 per cent, respectively.

Despite loss of billions, the stock market will record bargain hunting activities: While it’s not a talent possed by many, some sure knows how to pick stocks that are worth more than they are valued in the market, and Analysts at Afrinvest Securities Limited said there will be activities of such, though the analysts didn’t state to what extent the bargain hunting activities will be.

“In the near term, we expect to see bargain hunting activities due to the attractive entry prices of several fundamentally-sound stocks in the market, although this may be short-lived in the absence of major growth triggers in the economy.”

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: fakoyejo.olalekan@nairametrics.com.

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Coronavirus

How to access CBN’s healthcare grant

The disbursement under the Scheme shall be made to beneficiaries in tranches subject to approved milestones achieved.

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CBN

The Central Bank of Nigeria (CBN) has issued the guidelines to its Healthcare Sector Research and Development Intervention Scheme (HSRDIS).

The grant was designed to help strengthen the public healthcare system with innovative financing of research and development (R&D) in new and improved drugs, vaccines and diagnostics of infectious diseases in Nigeria.

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This was disclosed by CBN via its site in Saturday and seen by Nairametrics. The guideline stated that the HSRDIS is designed to trigger intense national R&D activities to develop a Nigerian vaccine, drugs and herbal medicines against the spread of COVID-19.

It stated, “It would also curb any other communicable or non-communicable diseases through the provision of grants to biotechnological and pharmaceutical companies, institutions, researchers, and research institutes.

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The Scheme is intended to boost domestic manufacturing of critical drugs and vaccines to ensure their sustainable domestic supply and reduce the bulk manufacturing costs of the drugs, herbal medicines and vaccines in Nigeria.

READ MORE: FG to reduce raw materials import by N3trillion

Source of fund

According to the apex bank, the Scheme shall be funded from the Developmental Component of the Micro, Small and Medium Enterprise Development Fund (MSMEDF).

Grant Limit
While Research activities would not access more than N50 million, development/Manufacturing activities will access more than N500.0 million.

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CBN emphasised that the disbursement under the Scheme shall be made to beneficiaries in tranches subject to approved milestones achieved.

Patricia

READ ALSO: Fidson’s plan to dominate the pharmaceutical space in the next 10 years

Timeframe

Timeframe given to research activities was not more than two years from the date of release of fund and Development/Manufacturing activities are not more than one (1) year from the date of release of fund.

Who is eligible:

Candidate vaccines undergoing pre-clinical testing or trials shall not be
eligible for consideration under this Scheme.

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But candidate vaccines undergoing clinical testing or trials shall be eligible for consideration under the Scheme if considered to have high potential to cross the clinical trial stage and prospects of scale by the Body of Experts (BoE).

It stated, “In applying for the grant, the applicant shall be required to have conducted pre-clinical testing of the candidate drugs, herbal medicines and vaccines, and obtained certification from relevant health authorities for further research and development.

“Special consideration shall be given to candidate drugs, herbal medicines and
vaccines with high scientific merit against emerging infections and contribute to the development of the Nigerian vaccine.”

Modalities

The applicant(s) shall submit its application, with relevant documentation of validation from relevant health authorities, trial results, patent registration details (if any) and development timetable to the Body of Experts (BoE).

“The BoE shall evaluate applications and recommend to the CBN. CBN shall review for documentation adequacy and completeness.

“Upon approval, the approved grant sum shall be released to the applicant’s
account with any PFI of his/her choice. The beneficiary shall submit periodic progress report on the project to the CBN.

“The CBN shall have proprietary right over all financed R&D outcomes or
products. Equally, licensing protocol for the mass manufacturing of developed
drugs, phytomedicines and vaccines shall be defined by the BoE in accordance with
the World Health Organisation’s current Good Manufacturing Practices (cGMP),” it added.

 

 

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Business News

Possibilities of a second wave of COVID-19 infections Limits U.S dollar gains

American dollar ended the week cumulatively lower as the possibilities of the second wave of COVID-19 pandemic limited its upside. 

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Possibilities of a second wave of COVID-19 infections Limits U.S dollar gains

The American dollar index closed on Friday up at 0.18% to 96.93.

However American dollar ended the week cumulatively lower, for a third straight week, as uncertainty about America’s economy limited its upside.

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The uncertainties about the economic outlook and the possibilities of a second wave of COVID-19 infections had capped the greenback’s gains, Chuck Tomes, portfolio manager at Manulife Asset Management said in an interview with CNBC.

What is the importance of the dollar index?  The American Dollar Index tracks the U.S dollar strength relatively against a bouquet of other major currencies around the world, such as (Japanese yen, Euro, British pounds sterling, Swedish krona, Canadian dollar, Swiss Franc).

(READ MORE: Again, U.S dollar slumps against major currencies, investors become optimistic about global demand)

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Nigerians hoping to meet foreign exchange debt or payment obligations, transactions via the U.S dollar to countries like France, United Kingdom, Australia, Germany Japan, would have the need to pay fewer dollars to fulfill such transactions.

“Today you’ve seen better-than-expected economic data coming out of the U.S. in terms of the jobs numbers.   

“The reaction on the back of that has been expectations of better growth coming out of the U.S. as well as a steepening yield curve, both of which have provided a lift to the dollar.” Chuck Tomes added.

Possibilities of a second wave of COVID-19 infections Limits U.S dollar gains

However, some currency analysts in a report to CNBC said the good macroeconomic gains recorded on Friday in America might not be repeated soon.

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“While this was no doubt a great jobs report, a lot of good news was already priced in. Future estimates and expectations on the economic rebound are likely higher from here and therefore harder to meet or beat,” said Matt Miskin, co-chief investment strategist at John Hancock Investment Management. 

Patricia

 

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Business News

NPA to receive shiploads of petroleum products and food items in Lagos port

Among the expected items to be received are frozen fish, base oil, general cargo, bulk salt, bulk clinker, butane gas, bulk wheat and soya beans.

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Nigerian Ports Authority, NPA, Hadiza Bala-Usman, Maritime, Ports, Badagry deep seaport, NPA, LADOL collision intensifies, as they throw counter-accusation over contract 

The Nigerian Ports Authority (NPA) will receive 16 ships laden with petroleum products, food items and other goods over the next 14 days.

According to its publication, `Shipping Position,’ which was released on Saturday, the receipts of the shipment will last from June 6 through June 20.

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According to the publication viewed by NAN, the ships are expected to arrive at the Lagos Port Complex.

Among the expected items to be received are frozen fish, base oil, general cargo, bulk salt, bulk clinker, butane gas, bulk wheat and soya beans.

READ ALSO: NPA and BUA Group dispute to affect 1000 jobs, $500,000 monthly revenue 

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The NPA also noted in its publication that 23 ships had arrived the ports, waiting to berth with containers, general cargo and petrol, while 17 other ships were at the ports discharging containers, petrol, butane, bulk fertilizer, bulk wheat, general cargo and frozen fish.

What you should know

When the World Health Organisation declared COVID-19 a pandemic, and several industries started shutting down, the Nigerian government took the decision to leave Nigerian ports operation in line with stipulated guidelines.

This was done to prevent further contraction in the economy, as the economic implications of shutting down the seaports in an import-dependent economy were considered unsavory.

READ ALSO: NPA Decommissioning of Port Harcourt Terminal: We’ll vigorously defend, protect our rights – BUA Group

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The government decided that, just like the food and healthcare sectors, the ports were to be considered essential too since there was a need to keep a steady import of foods, refined petroleum products, raw materials for the local industries, finished consumer goods and most importantly, drugs for the healthcare system.

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Managing Director of the NPA, Hadiza Bala-Usman, also suspended applicable terminal storage fees on consignments for an initial period of 21 days effective 23 March, and agreed to fast-track the clearance of over 1,500 overtime cargoes as part of its efforts to promote ease of business.

 

 

 

 

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