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NGX Reveals Results Of Full-Year Review Of Market Indices

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NGX Celebrates CIS On 30th Anniversary, Reopens Trading Floor

Olushola Okunlade Writes

Nigerian Exchange Limited, the premier sustainable exchange servicing Africa’s largest economy, has announced the results of its full-year market index review for the following indices – the NGX 30, NGX Lotus Islamic, NGX Pension, Corporate Governance Index, Afrinvest Bank Value Index, Afrinvest Dividend Yield Index, Meristem Growth Index, Meristem Value Index; and the five Sectoral Indices of The Exchange – NGX Banking, NGX Insurance, NGX Industrial, NGX Consumer Goods, and NGX Oil & Gas.

The review has led to the entry and exit of some companies from several indices that took effect at the opening of the market on Tuesday, January 3, 2023.

Listed below are the incoming and exiting companies in the various indices:

Indices TitleIncomingExiting
   
 NGX 30 Index·     BUA Foods Plc·     Wema Bank Plc·     Oando Plc·     Union Bank Plc
   
NGX Consumer Goods Index·     None·     None
   
NGX Banking Index·     None·     None
   
NGX Insurance Index·     None·     African Alliance Insurance Plc
   
NGX Industrial Index·     None·     None
   
NGX Oil & Gas Index·     MRS Oil Nigeria Plc·     Oando Nigeria Plc
   
NGX Pension Index·     Airtel Africa Plc·     BAU Foods Plc·     Honeywell Plc·     Conoil Plc
   
NGX Lotus Islamic Index ·     CAP Plc·     NAHCO Nigeria Plc·     NASCON Nigeria Plc·     Presco Plc
   
Corporate Governance Index·       Berger Paints Plc·              None
   
Afrinvest Bank Value Index·       None·       Fidelity Bank Plc.
   
Afrinvest Div Yield Index·       None ·       University Press Plc·       Access Holdings Plc
   
Meristem Growth Index·       FIDSON Plc·       Nigeria Breweries Plc·       Sterling Bank Plc·       Dangote Cement Plc·       Eterna Plc·       Glaxo Smithkline Con. Plc·       Seplat Energy Plc·       Guaranty Trust Holding Co. Plc
   
Meristem Value Index·       Access Holding Plc ·       Glaxo Smithkline Con. Plc·       May & Baker Nig. Plc·       LAFARGE Africa Plc·       None
   

The indices were developed to allow investors to track market movements and properly manage investment portfolios. Designed using the market capitalisation methodology, the indices are rebalanced on a semi-annual basis on the first business day in January and in July.

The Nigerian bourse began publishing the NGX 30 Index in February 2009 with index values available from January 1, 2007. On July 1, 2008, the NGX developed five sectoral indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors. The sectoral indices comprise the top fifteen most capitalised and liquid companies in the Insurance and Consumer Goods sectors; the top ten most capitalised and liquid companies in the Banking and Industrial Goods sector; and the top seven most capitalised and liquid companies in the Oil & Gas sector.

In July 2012, the Nigerian bourse launched The NGX Lotus Islamic Index (NGX LII) which consists of companies whose business practices are in conformity with Shari’ah Investment Principles, with the aim of increasing the breadth of the market and creating an important benchmark for investments as the alternative ethical and noninterest investment space widened. The companies that appear on the Islamic Index have been thoroughly screened by Lotus Capital Halal Investment, in accordance with a methodology approved by an internationally recognised Shari’ah Advisory Board comprising renowned Islamic scholars.

Know More About NGX: Nigerian Exchange Limited services the largest economy in Africa, and is championing the development of Africa’s financial markets. The Exchange offers listing and trading services, licensing services, market data solutions, ancillary technology services, and more. Nigerian Exchange Limited continues to evolve to meet the needs of its valued customers and to achieve the highest level of competitiveness. It is an open, professional, and vibrant exchange, and the Entrepreneurial Growth hub of Africa. Nigerian Exchange Limited aspires to be Africa’s foremost securities exchange, connecting Nigeria, Africa, and the world.

The compiler of the indices maintains the right to modify the circulated selection above in connection with any mergers, takeovers, suspension, or resumption of trading or any other company structure changes during the period before the effective date of the annual review.

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Africa Plus Partners Lists Carbon Mitigation Fund On NGX

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Africa Plus Partners Lists Carbon Mitigation Fund On NGX

Africa Plus Partners – Closing Gong Ceremony in commemoration of the Memorandum Listing of its Africa Infra Plus Fund

Olushola Okunlade Writes

Nigerian Exchange Limited (NGX) announce Tuesday the listing of a N20.5bn closed-end infrastructure fund, Africa Infra Plus Fund (AIPF I) on the Exchange.

Co-managed by Africa Plus Partners Plc, and Capitaltrust Investments & Asset Management Limited, AIPF 1 is Nigeria’s first Carbon+ (ESG-focused) naira-denominated infrastructure fund to be listed on the Exchange.

The listing is another significant move towards championing sustainable investing in Africa and the event was commemorated with a Closing Gong Ceremony.
AIPF 1’s structure is a pool of equity and quasi-equity investments in Carbon+ infrastructure projects that promote sustainable development including but not limited to roads, power, water supply, wastewater management, ports, and airports.

Africa Plus Partners Lists Carbon Mitigation Fund On NGX
Left-Right: Ike Chioke, Managing Director, Afrinvest West Africa Limited; Lazarus Angbaso, Chief Executive Officer, InfraCorp; Anhad Narula, Chairman, Africa Plus Partners; Temi Popoola, Chief Executive Officer, Nigerian Exchange Limited (NGX); Adeniran Ajakaiye, Managing Director, Africa Plus Partners; Kalim Shah, Senior Country Manager, Nigeria, International Finance Corporation (IFC); Jude Chiemeka, Divisional Head, Capital Markets, NGX, and Dayo Adu, Managing Partner, Famsville Solicitors during a Closing Gong Ceremony in commemoration of the Memorandum Listing of the Africa Infra Plus Fund 1 at the Exchange on Tuesday, 24 January 2023

The Fund also acquires the shares and other investment instruments issued by socially responsible entities carrying on infrastructure business or executing infrastructure projects exclusively.

Commenting on the development, the Chief Executive Officer, NGX, Mr. Temi Popoola, stated that, “today’s listing marks a significant milestone in our commitment to promoting sustainable investing and reducing the drivers and impact of climate change. We are proud to be at the forefront of this and look forward to more exploits as we drive growth in the capital market.”

Speaking to members of the media, Africa Plus Partners Chairman, Anhad Narula said, “This is a sustainable infrastructure fund that specialises in carbon-mitigating infrastructure investments. The fund, whose investors include ordinary Nigerians via their pension fund administrators, is committed to investing in sustainable infrastructure businesses that align with the global energy transition and move towards cleaner sources of energy and efficiently run, sustainable infrastructure and utility services.”

On his part, the Managing Director, Africa Plus Partners Plc, Mr. Adeniran Ajakaiye, stated, “With this listing, we aim to demonstrate the highest levels of good governance and transparency, as we continue to deliver active returns to shareholders, whilst addressing Nigeria’s ‘missing middle’ infrastructure gap.”

AIPF aims to address the imbalance between the need for infrastructure development and the concerns about environmental and social impact by investing in projects that meet strict ESG criteria.

The listing of the fund on NGX is a clear indication of the growing interest and demand for sustainable investing in Africa and the Exchange’s commitment to the same.

NGX also plans to launch an Impact Board to further give visibility to sustainable financial instruments listed on The Exchange and to encourage more listings in the sustainable finance segment as part of its sustainability drive for the capital market.

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NGX Weathers Global Market Downturns In 2022, Makes Strong Showing With Landmark Listings

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NGX Weathers Global Market Downturns In 2022, Makes Strong Showing With Landmark Listings

2023 likely to be dawn of new day for market, Nigerian economy, says Popoola

Nigerian Exchange Limited (NGX) made a strong showing with its performance in the year 2022 as it recorded landmark transactions.

At the NGX 2022 Market Recap and 2023 Outlook held on Wednesday, 25 January 2023, the Chief Executive Officer, NGX, Mr. Temi Popoola said, “In 2022, the equities market performance as evidenced by the 19.98% increase in the NGX All-Share Index, which rose from 40270.72 to 51,251.06 just as the market capitalisation also closed at a high of N27.92tn, up from N21.06tn the previous year.

The total turnover of trades in 2022 improved by 27% from N916bn to N1.16tn year-on-year from 2021. Market participation was heavily skewed toward domestic investors. The Fixed Income market saw a slight uptick in turnover to N3.89bn in 2022 from N3.53bn recorded in 2021. This represents a 10.20% YoY increase.

NGX Weathers Global Market Downturns In 2022, Makes Strong Showing With Landmark Listings

“The Exchange Traded Funds market capitalisation increased from N7.35Bn in 2021 to N8.42Bn in 2022, representing a 14.56% increase in the market capitalisation. Stanbic IBTC ETF 30 which tracks the performance of NGX 30 index was the best-performing ETF in 2022, having begun the year at N68.5 and closed at N245, reflective of 257.66% returns. ETF transactions fell from N34.22bn in 2021 to N211.02m in 2022. This represents a 99.38% decline in ETF turnover”.

“Altogether, this signalled a good year for the Exchange despite global macroeconomic headwinds,” Popoola added.

Landmark Listings

The yearly performance can be attributed in part to the N4.3trn in listings recorded by NGX across Equities and Fixed Income markets. These listings included the raising of N2.54trn of bond listings for the Federal Government of Nigeria, as well as equity listings totaling N1.35trn from companies such as BUA Foods Plc and Geregu Power Plc.

Corporate bond listings also contributed significantly to the Exchange’s performance, with a total of N364.78bn raised through listed instruments such as Dangote Industries Plc’s N177.12bn senior unsecured bonds, Lagos Free Zone Company SPV Plc’s N25bn fixed rate infrastructure bonds and Ardova Plc’s N11.44bn and N13.86bn fixed rate senior unsecured bonds. NGX also listed FGN Multi-Tranche $4bn Eurobonds which further demonstrated its diversity of offerings and its ability to attract a wide range of businesses looking to raise capital.

The value of these listings displays NGX’s commitment to positioning itself as a premier location for capital raising and formation, as well as its ongoing development efforts in the Nigerian capital market post its demutualisation. The Exchange’s ability to facilitate a wide range of transactions and attract a diverse range of businesses highlights its position as a leader in financial market innovation and progress on the African continent.

Partnerships

NGX partnered with MTN Nigeria to further enhance retail participation in the country’s capital market. NGX also forged strategic partnerships by signing Memoranda of Understanding with the Bank of Industry and Dubai Financial Market to deepen the capital market and build capacity for inclusive growth. These spotlighted the Exchange’s commitment to supporting the development of the Nigerian capital market and fostering growth and prosperity in the country.

Sustainability Drive

NGX demonstrated its commitment to sustainability in 2022 through a number of initiatives and collaborations. In an effort to further catalyse Nigeria’s path towards reducing greenhouse emissions and aligning with the objectives of the Paris Agreement, NGX collaborated with the International Finance Corporation (IFC) on a Green, Social, and Sustainability Bonds workshop for capital market stakeholders.

NGX, through its specialised knowledge platform, X-Academy, collaborated with NGX Regulation Limited (NGX RegCo) and Global Reporting Initiative (GRI) on a capacity-building session focused on sustainability reporting and Environmental, Social, and Governance (ESG) disclosures for listed corporates.

The Exchange joined over 100 securities exchanges around the world in celebrating International Women’s Day and Ringing the Bell for Gender Equality. The event, hosted in collaboration with International Finance Corporation (IFC), Sustainable Stock Exchanges (SSE) Initiative, United Nations (UN) Women, United Nations Global Compact (UNGC), and World Federation of Exchanges (WFE), brought stakeholders together to explore the key issues that could facilitate progress towards gender equality through policy and finance.

NGX continues to progress in its EDGE certification process with the support of IFC under the Nigeria2Equal Programme. This certification recognises organisations that are committed to gender equality in the workplace, and NGX’s participation demonstrates its dedication to promoting sustainable and inclusive practices.

NGX Weathers Global Market Downturns In 2022, Makes Strong Showing With Landmark Listings

Product Development and Innovation

April 2022 was a particularly significant month, with the launch of West Africa’s first Exchange Traded Derivatives market on NGX. This innovative development expands the exchange’s offerings and cements its position as a leader in the African financial market.

The approval of the NGX Technology Board Listing Rules by the Securities and Exchange Commission (SEC) and the hosting of the Made of Africa Awards, which recognised and rewarded innovation and compliance were the highlights in December. The approval of the listing rules further demonstrates NGX’s commitment to providing a reliable and efficient platform for capital raising and positions the Exchange as an attractive destination for capital formation by companies within the Technology sector. The Made of Africa Awards highlighted the Exchange’s dedication to fostering innovation and spurring compliance to best practices in the capital market.

NGX’s strategic partnership with other exchanges in Africa under African Securities Exchanges Association yielded fruits with the launch of the African Exchanges Linkage Project, (AELP) which is aimed at boosting trade and capital flows between African capital markets. The CEO, NGX, Temi Popoola was also elected to the executive committee of the African Securities Exchanges Association.

The year was brought to a close on a high note as popular filmmaker Kemi Adetiba closed the market, with NGX soaring by 19.98%. This strong finish to the year was a testament to NGX’s continued success and growth in the Nigerian capital market.

Overall, the data and events of 2022 demonstrate the Exchange’s focus on providing a reliable and efficient platform for capital raising and formation, as well as its ongoing product and service expansion in the Nigerian capital market. Its dedication to fostering sustainable development in the African economy positions it as a driving force for innovation and progress on the continent.

NGX Weathers Global Market Downturns In 2022, Makes Strong Showing With Landmark Listings

2023 Outlook

According to Popoola, NGX would take a flexible approach to strategy execution in 2023, doubling down on its 2022 achievements and expanding on several levers. “As you know, the NGX Technology Board Listing Rules were approved by the apex regulator, the Securities and Exchange Commission in December 2022. With this, we aim to drive more technology companies to the Exchange and deepen capital formation in the technology sector. Currently we are in consultations with stakeholders in the sector and we are confident of securing a few big names within the year,” the CEO added while speaking at the event.

“On strategic partnerships, we will be forging more with development finance institutions, and banks, both local and international to further develop the market. We aim to do more on trading where we improve data dissemination to attract a larger investor base, especially from the retail side. We will be using listings as a vehicle for meeting strategic aspirations as the new dispensation comes in through increased advocacy and engagement.

“NGX sees sustainability as not just important but also a profitable frontier of its business and work is ongoing on developing a framework for certifications in carbon credits trading, pending regulatory approval. On the capital market’s digital transformation, the Exchange is working on USSD launch in collaboration with Telcos and Banks; unlocking the African Capital markets via payment integration with Afreximbank’s Pan African Payment Settlement System.”

The Exchange also sets its sight on the development of new products aimed at attracting the lower rung of the Nigerian demography, says Popoola. “NGX is also focused on increasing youth participation with the creation of digital asset products powered by Blockchain technology, non-depository receipts and overall increasing the pool of available liquidity in the market. Altogether, 2023 is likely to be a new dawn for the market and the Nigerian economy as significant events take shape in the macroeconomic and political environments.”

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NGX Traded N15.668 Billion In 18,560 Deals At The Week Ended

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NAHCO, Union Bank, Sterling Bank, Fidelity Bank, Unity Bank, And Others Lead Top 10 Gainers In The Week Ended

Olushola Okunlade Writes

Stock Market total turnover of 1.241 billion shares worth N15.668 billion in 18,560 deals was traded from 15th-20th January 2023 by investors on the floor of the Exchange, in contrast to a total of 1.286 billion shares valued at N29.634 billion that exchanged hands last week in 19,816 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.010 billion shares valued at N5.924 billion traded in 9,165 deals; thus contributing 81.37% and 37.81% to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 46.761 million shares worth N112.918 million in 641 deals. The third place was the Consumer Goods Industry, with a turnover of 42.121 million shares worth N2.134 billion in 2,886 deals.

Trading in the top three equities namely Veritas Kapital Assurance Plc, Sterling Bank Plc,
and Guaranty Trust Holding Company Plc, (measured by volume) accounted for 605.879
million shares worth N2.120 billion in 1,631 deals, contributing 48.82% and 13.53% to the
total equity turnover volume and value respectively.

For the second consecutive week, the stock market segment of the Nigerian Exchange Limited (NGX) maintained its positive growth on the back of surge in buying interest from investors ahead of 2022 corporate earnings and actions from listed companies.

The NGX All-Share Index ended the week 0.16 per cent week-on-week (W-o-W) higher to close at 52,594.68 basis points from 52,512.48 basis points it opened for trading.

Also, market capitalization rose by N45 billion W-o-W to close at N28.647 trillion from N28.602 trillion it closed for trading last week.

Performance across sectors was mixed as the NGX Insurance index recorded a weekly gain of 1.8 per cent, while NGX Oil and Gas index rose by 0.4 per cent. On the other hand, the NGX Banking index declined by 2.6 per cent W-o-W.

NGX Industrial Goods index went down by 1.1 per cent, while the NGX Consumer Goods index shed 0.4 per cent for the week.

The market breadth for the week was positive as 39 equities appreciated in price, 30 equities depreciated in price, and 88 equities remained unchanged. International Energy Insurance led the gainer’s table by 28.95 per cent to close at 49 kobo, per share. MRS Oil Nigeria followed with a gain of 13.48 per cent to close at N16.00, while Nigerian Aviation Handling Company (NAHCO) went up by 12.86 per cent to close to N7.90, per share.

On the other side, Livestock Feeds led the decliner’s table by 13.85 per cent to close at N1.12, per share. C&I Leasing followed with a loss of 10.00 per cent to close at N3.15, while UPDC declined by 9.62 per cent to close at 94 kobo, per share.

Overall, a total turnover of 1.241 billion shares worth N15.668 billion in 18,560 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.286 billion shares valued at N29.634 billion that exchanged hands the previous week in 19,816 deals.

According to the NGX weekly report, the Financial Services Industry (measured by volume) led the activity chart with 1.010 billion shares valued at N5.924 billion traded in 9,165 deals; contributing 81.37 per cent and 37.81 per cent to the total equity turnover volume and value respectively.

“The Conglomerates Industry followed with 46.761 million shares worth N112.918 million in 641 deals, while the Consumer Goods Industry pulled a turnover of 42.121 million shares worth N2.134 billion in 2,886 deals.

“Trading in the top three equities; Veritas Kapital Assurance, Sterling Bank, and Guaranty Trust Holding Company (GTCO) accounted for 605.879 million shares worth N2.120 billion in 1,631 deals, contributing 48.82 per cent and 13.53 per cent to the total equity turnover volume and value respectively,” the report added.

Meanwhile, stock market activities for this week will be focused on the outcome of the Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN).

Members of the MPOC will meet on Monday and Tuesday for its first assembly in 2023 to assess the existing guiding economic principles amid the drop in the inflation rate in December 2022.

Looking ahead into the new week, analysts at Cowry Assets Management Limited said the positive sentiment is expected to continue as investors seek a better position ahead of the MPC meeting as well as the churning out of fourth and full-year earnings by listed corporates, saying “however, we continue to advise investors to trade on companies’ stocks with sound fundamentals.”

Analysts at Cordros Securities Limited, said, “we believe investors will focus on the outcome of the MPC meeting scheduled to hold next week to gain further clarity on the movement of yields in the Fixed Income (FI) market.

“If the MPC increases and there is a passthrough impact on yields in the FI market, there could be realignment of investments between markets that would pressure the performance of the equities market.

“As a result, we envisage cautious trading from domestic investors over the next week and the short term. Overall, we reiterate the need for positioning in only fundamentally sound stocks as the unimpressive macro environment remains a significant headwind for corporate earnings.”

Click the link to view report: file:///C:/Users/HP/Downloads/Weekly%20Market%20Report%20for%20the%20Week%20Ended%2020-01-2023.pdf

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