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Bearish sentiment strengthen at NSE amid weakening economic indices

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images 30 3 Bearish sentiment strengthen at NSE amid weakening economic indices

Nigeria’s stock market again closed lower for the second consecutive week with the trading pattern and negative sentiments revealing selloffs in banking stocks, which pulled down the NSE market capitalisation down by N14 billion week-on-week (w-o-w).

The negative performance was down to profit taking in the shares of Zenith Bank, Stanbic, Ecobank Transnational Incorporated (ETI) and FBN Holdings. This led to the All Share Index (ASI) falling by 0.08 per cent to 25,572.57 points.

Consequently, the Month-to-Date (MtD) gain declined to 1.0 per cent, while the Year-to-Date (YtD) loss increased to -4.7 per cent.

Performance across sectors was mixed although positively skewed as three of six indices trended northward. The Industrial Goods index led gainers, up 0.5 per cent w/w on the back of bargain hunting in CAP (+8.6 per cent). Trailing, the Consumer Goods and Insurance indices rose 0.1 per cent and 0.01 per cent w/w respectively due to price appreciation in Nigeria Breweries (+2.3 per cent) and Wapic (+12.1 per cent).

Conversely, the Oil & Gas index led losers, down 1.0 per cent w-o-w following sell-offs in Oando (-4.2 per cent)while price depreciation in FCMB (-6.4 per cent) dragged performance in the Banking index by 0.7 per cent w-o-w. Finally, the AFR-ICT index closed flat. Reacting to the market performance, analysts who spoke to Daily Sun, attributed the downturn to the weak macroeconomic state of the nation and added that profit taking is likely to persist as the month of September progresses in the midst of profit booking, mismatch of economic policies and negative macroeconomic indices.

This is coming on the back of persistent pressure on consumer prices in August 2020 as headline inflation rose to 13.2 per cent year-on-year (y-o-y) from 12.8 per cent in July, according to the Consumer Price Index (CPI) report published by the National Bureau of Statistics (NBS).

Investigations by Daily Sun show that this is the 12th consecutive rise in inflation and the highest level since March 2018 while the sharp increase in headline inflation was driven by a faster m/m inflation, which was up 10 basis points to 1.3 per cent, the highest since June 2017.

Chief Operating Officer, Ambrose Omordion, explained that the August inflation data came worse than expected at 13.22 per cent, thereby deepening the negative returns of many investment windows. Omordion noted that mixed (positive and negative) sentiments would continue to dominate the market as the month of September progresses in the midst of profit booking, mismatch of economic policies and negative macroeconomic indices.

According to him, this is against the backdrop of the fact that the capital wave in the financial market may persist in the midst of relatively low-interest rates in the money market, high inflation, negative Q2 GDP of 6.1 per cent and unstable economic outlook for the rest of 2020 as government and its economic managers are going front and back with mismatch polices and implementation.

“Also, investors and traders are positioning amidst the changing sentiments in the hope of improved liquidity and positive economic indices which may reverse the current trend. We see investors focusing on portfolio adjustment and rebalancing by targeting companies with strong potentials to grow their Q3 earnings and dividend on the strength of their earnings capacity as the year last quarter is at the corner.

Again, the current undervalue state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation for the rest of the year”, He said.

For their part, Cordros Capital, said, “In the absence of a positive catalyst, and given the still uninspiring macro story, we guide investors to trade cautiously in the short term. However, we expect the market might benefit over the longer term on compelling valuations and as investors seek alpha-yielding opportunities in the face of negative real returns in the fixed income market”.

Meanwhile, a total turnover of 1.139 billion shares worth N12.692 billion in 17,109 deals were traded by investors, in contrast to a total of 1.226 billion shares valued at N10.842 billion that exchanged hands last week in 19,529 deals.

The Financial Services industry (measured by volume) led the activity chart with 870.300 million shares valued at N7.863 billion traded in 9,427 deals; thus contributing 76.43 and 61.95 per cent to the total equity turnover volume and value respectively.

The Industrial Goods industry followed with 62.689 million shares worth N1.162 billion in 1,557 deals while the ICT industry recorded a turnover of 50.859 million shares worth N2.552 billion in 619 deals. Trading in the top three equities namely FBN Holdings Plc, Guaranty Trust Bank Plc and Access Bank Plc. (measured by volume) accounted for 353.048 million shares worth N4.018 billion in 3,095 deals, contributing 31.00 and 31.66 per cent to the total equity turnover volume and value respectively.

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Jakys berths 5,000 containers at terminal to ease Apapa gridlock

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images 78 1 Jakys berths 5,000 containers at terminal to ease Apapa gridlock

As part of efforts to reduce Apapa gridlock, Jakys Nigeria Limited has berthed 5,000 containers on a 32,000 square meters throuput terminal at Ijegun area of Satellite Town Lagos. Apart from decongesting the Lagos Ports, importers and exporters can now get their goods faster, instead of having them stay a day more and paying huge demurrage.

Already, the terminal is 90 per cent completed, and has commenced test running about eight months ago. Also, it has gradually started taking away the pressure from the ever busy Lagos port roads and bridges

The terminal is accessed by barges from any of the port terminals, while trucks come in through the roads to evacuate the containers around Satellite Town, Lagos.

The Managing Director and Chief Executive of Jakys Nigeria Limited, Sir Henry Muogho while conducting officials of Nigerian Ports Authority (NPA) on an inspection of the facility in Lagos last week, said 23,000 square meters of the terminal is already being utilised by barges, transferring loaded containers and taking off empty containers.

He told journalists that the terminal was leased to Mediterranean Shipping Company (MSC Shipping) and its logistics arm; Medlog for 5 years.

According to him, the terminal is a throughput terminal dedicated for only MSC containers, adding that no third party containers are allowed to come into the terminal.

He added: “Here is going to be like a throuput jetty, no third party containers are allowed to come in here, as you can see, it is only MSC containers that we have here, this means there is also a call up system for trucks to come in here.

“We have an MoU with the community that made us to build the roads, this was part of the lease agreement with MSC and Medlog.Trucks that are coming here would not be parking on the road, therefore, the nuisance value that we have at other ports and terminals, I don’t want to import them here. I also do not want to put the residents into confusion, that is why we say that there must be a call up system for trucks coming into the terminals, they come in numbers, when they are going back they go in tens.”

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Lekki Deep Sea Port: Work commences on 680m quay wall construction

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images 76 1 Lekki Deep Sea Port: Work commences on 680m quay wall construction

Lekki Port LFTZ Enterprise Limited (Lekki Port), the developer of the Lekki Deep Sea Port currently under construction at the Lagos Free Zone, Ibeju Lekki, has commenced construction of the 680meter long quay wall with the driving of the first pile.

Speaking at the flag-off ceremony held at the project site, the Chief Executive Officer of Lekki Port, Mr Ruogang Du, said that the commencement of piling of quay wall, which is a major phase of the construction, symbolises a significant step towards the timely delivery of the project.

He said despite the setback occasioned by the coronavirus pandemic, both the investors and the contractors have demonstrated admirable commitment to deliver the project as and when due, with construction now at full steam.

“Thank you very much for coming today to witness this solid step in delivering the Lekki Port. As we all know, the epidemic has harmed global economic development and personnel mobility everywhere. However, developers and investors in Lekki Port have not stopped moving forward. We are actively resuming construction and are striving to fulfil our commitment to officially open the port for operations in the first half of 2023. This is a commitment to Lagos and a commitment to Nigeria, and we will do our best to achieve it”, he said.

Also speaking, the Board Chairman, Lekki Port, Mr Biodun Dabiri, lauded the invaluable roles played by the project promoters and stakeholders including Tolaram, China Harbour Engineering Company, Lagos State Government, host communities and the Federal Government through the Nigerian Ports Authority.

He explained that the completion of the port would greatly assist in accommodating the rapid expansion of trade currently being witnessed across the West African region. “I want to thank all our shareholders for all the support and energy you have put into this project. I keep saying that it is an iconic project. From all indications, we are building history here. Some of the piles we are doing today will last for more than 100 years. With all the support from everyone that is here, I believe the port will be safely delivered on time”, Dabiri added.

The Chief Technical Officer, Lekki Port, Mr Steven Heukelom, explained that the construction of the quay wall marks a major milestone from a technical perspective, as it is what will ensure that the port is capable of handling multiple container vessels of various sizes at the same time.

Heukelom disclosed that during the Phase 1 of the project, the quay wall will be  680m long and can berth 2 Container Vessels each of up to 18,000 TEUs.

Continuing, he stated “that there will be a total of 857 steel piles on the Combi wall. The Container Terminal will be equipped with 7 Ship to Shore Cranes, 21 RTGs, and other modern rolling terminal equipment. The Combi Wall will have a diameter of 1.15m – 2.3m, a thickness of 23mm and between 28 – 41m deep”.

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Emirates Airlines boosts anti-trafficking initiative

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images 75 1 Emirates Airlines boosts anti-trafficking initiative

Emirates Airlines has lent its support to an anti- human trafficking inIitiative called ‘It’s a Penalty’, by airing the ‘What is Human Trafficking?’ film on all its ‘ice’ in-flight entertainment system throughout October.

Launched in collaboration with actor Liam Neeson, the film creates awareness about human trafficking so that suspected cases can be identified and reported, thereby protecting and preventing those at risk from becoming victims.

The airline said with the airing of the film its ‘ice’ inflight entertainment system on all flights from October, it hopes to shine a light on this global problem and help more people understand what human trafficking is. 

“Nigerian travellers can watch this film while on board. As one of the world’s largest connector of people and places, Emirates is committed to play its part to help stem this crime against humanity.

“Human trafficking involves the movement of persons within a country or across borders into conditions of exploitation against their will by means of force, threats, abduction, or deception. In 2017, the International Labour Organisation (ILO) estimated that there were 24.9 million people trafficked globally (equivalent to the population of Australia), of which 75per cent are women and children.

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