The Nigerian Stock Exchange (NSE) ended Monday’s trading session in positive territory. The All-Share Index closed at 27,565.09 basis points, up 0.14%. Year to date, the index is down by 12.30%.
Cement Company of Northern Nigeria Plc was the best-performing stock today. The stock gained 9.78% to close at N17.40. Cornerstone Insurance Plc gained 9.52% to close at N0.23. United Bank of Africa Plc gained 5.58% to close at N6.20. Nestle Nigeria Plc also gained 5.94% to close at N1319. GlaxoSmithKline Consumer Nigeria Plc rounded off the top five gainers for today. The stock gained 3.47% to close at N7.45.
On the flip side, UAC of Nigeria Plc was the worst-performing stock, declining by 10% to close at N4.50. Champion Breweries Plc fell by 9.80% to close at N1.38. Africa Prudential Plc fell by 9.25% to close at N3.63. Chams Plc fell by 7.69% to close at N0.24. Tripple Gee and Company Plc also rounded off the top five losers for the day. The stock shed 7.35% to close at N0.63.
Top Trades by Volume
Zenith Bank Plc was the most actively-traded stock today. 16.1 million shares valued at N283.9 million were traded in 327 deals. United Bank of Africa Plc was next with 13.9 million shares valued at N86 million traded in 266 deals, followed by FBN Holdings Plc with 13.6 million shares valued at N64.8 million traded in 192 deals.
UAC of Nigeria Plc was next with 7.7 million shares valued at N35.9 million traded in 170 deals. Guaranty Trust Bank Plc rounded off the top five most actively traded stocks today with 5.1 million shares valued at N141 million traded in 246 deals.
[READ ALSO: A guide to how Mutual Funds work in Nigeria]
China more willing to restructure Africa’s debt than private creditors
Agreements have been easier to reach with Chinese lenders than with private creditors.
A recent study by John Hopkins University reveals it may be easier for African Nations to raise debt and also get debt relief from China than private creditors.
The report of the study comes a day after China promised to cancel interests from loans to African nations and restructure debt to Africa. The study also revealed that China has restructured $15 billion of African debt and written off $3.4 billion in the past ten years.
After 1,000 Chinese loans, including restructured Mozambican and Republic of Congo debt, were analysed, the researchers concluded that “the agreements have been easier to reach with Chinese lenders than with private creditors”.
The Paris Club recently agreed to pause debt payment valued at $11 billion for the poorest 73 nations freeing up capital to tackle the coronavirus pandemic. However, not all eligible nations signed up citing fears of default ratings if debt obligations are not met.
The study discovers difficulties in renegotiating terms on International Bonds for African countries due to the disparate ownership structure making private creditors unwilling to grant complete debt relief, citing warnings on rating downgrades.
China accounts for about 20% of Africa’s external debt and lent over $150 billion to the continent between 2000-2018 the study reveals. Chinese President, Xi Jinping has urged global leaders to be more pragmatic with debt suspension for Africa.
The study says much of the terms of Chinese debt to Africa has not been transparent and the relief negotiations may follow the same path.
Orange, France’s largest telco operator, may come to Nigeria in months
Orange would also be looking at bolstering partnerships with health companies or institutions.
France’s largest telecom operator, Orange, is set to extend its tentacles to Nigeria and South Africa.
Chief Executive Officer, Orange, Stephane Richard, who disclosed the news, said that the firm would make the move in a few months.
He said, “It could make sense to be in economies such as Nigeria and South Africa. If one considers there are things to do, the time frame I am considering is rather a few months than a few years.”
The Middle East and Africa, where Orange has a presence in 18 countries, is the company’s fastest-growing market.
What you need to know: There are chances that the company may eye payment transfers (mobile) in Nigeria.
That is because it makes the largest chunk of its revenue from payment transfers (Middle East), a key part of the group’s diversification into financial services, and Nigeria, which is the most populous black nation, is always an attraction.
Meanwhile, earlier in 2020, Orange had stated that it was bringing its operations in the Middle East and Africa into a single entity, paving the way for a potential listing of the operations that could raise cash to invest in overseas expansion.
“Orange would also be looking at bolstering partnerships with health companies or institutions,” he added.
Download the Nairametrics News App
LIRS further extends deadline for filing annual tax returns by one month
“We constantly debated what other measures could be taken as an organization to support individuals and businesses at this time, hence, the additional one-month extension from June 1, to June 30, 2020.” – Ayodele Subair
The Lagos State Internal Revenue Service (LIRS) has again extended the deadline for filing of Annual Tax Returns from May 31 2020 to June 30, 2020.
This is part of the state government’s effort to provide relief to taxpayers in light of the economic impact of the Covid-19 pandemic. With this development, annual returns for individuals, both employees and self-employed persons, can be filed anytime before June 30, 2020.
In a press release signed by Monsurat Amasa, the head of LIRS’ Corporate Communications Department, the agency urged taxpayers to take advantage of the magnanimity of the government and file their returns. The LIRS’ Executive Chairman, Mr. Ayodele Subair, explained the extension thus:
“As the Lagos State Government keeps abreast of global best practices in containing the Covid-19 pandemic and eases the effects of an economic downturn on taxpayers and residents of the State, LIRS had initially extended the deadline for filing annual tax returns for two months, from the statutory March 31st of every fiscal year to May 31, 2020.
“We constantly debated what other measures could be taken as an organization to support individuals and businesses at this time, hence, the additional one-month extension from June 1, to June 30, 2020.”
He further explained that taxpayers can file the annual returns from the comfort of their homes and offices using the LIRS eTax platforms. They can also generate assessment and payment schedule, and other tax administration matters on the same platform. Updates on business operations and alternative payment platforms are to be found on the verified handles, and the LIRS website.