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Daily Business News Brief | Thursday December 02, 2021.

2
Dec

MTN leads losers as stocks shed N409.56bn- Punch

Stock investors lost N409.56bn on Wednesday as MTN Nigeria Communications Plc recorded the biggest decline amid its share offer to retail investors.  MTN had on Friday ended its equity book-build to institutional investors and launched an offer of up to 575 million shares held by its parent firm on Wednesday and priced each share at N169.  As of the end of trading on Wednesday, MTN’s share price slumped by 10 per cent to N171 from the N190 recorded the previous day.  The NGX All-Share Index fell by 1.81 per cent to 42,463.16 basis points from 43,248.05bps at the end of trading on Tuesday, while the market capitalisation dropped to N22.16tn from N22.57tn.  “Trading in the domestic equities market carried on yesterday’s bearish performance, as investors sold off MTN (-10 per cent),” said analysts at Cordros Capital in a report…………….read more

Stock investors’ profit-taking creating excessive risk premium – Osinbajo – Thisday

The Vice-President, Prof. Yemi Osinbajo, has said the profit-taking activities of foreign and domestic institutional investors in the Nigerian stock market have created an excessive risk premium requiring government intervention.  Osinbajo said this at the Inaugural Capital Market Conference hosted by the Nigerian Exchange Limited in Abuja and virtually.  He said, “The NGX All-Share Index was the highest performing index among 98 global exchanges tracked by Bloomberg in 2020.  “But the profit-taking activities of foreign and domestic institutional investors in the capital market have created an excessive risk premium that has led to a year-to-date performance in the range of 7.65 per cent.”………….read more

CBN knocks banks for shunning eNaira – Punch

The Central Bank of Nigeria on Wednesday knocked commercial banks across the country for not promoting the e-Naira launched with fanfare by the President, Major Genersl Muhammadu Buhari(retd.), in October, 2021.  The apex bank also explained the operational benefits of its newly introduced eNaira to the public.  Officials of the CBN took turns in Kaduna on Wednesday to lecture youth corps members, hundreds of students from tertiary institutions across the state and other members of the public on the eNaira initiative………….read more

Transcorp Records N13.4bn Profit After Tax in Q3- Thisday

Transnational Corporation of Nigeria (Transcorp Plc) has posted a N13.467 billion Profit After Tax (PAT) for third-quarter ended September 2021. The performance represents N11.721 billion growth, compared with N1.746 billion recorded in third quarter of 2020. It also showed a 672.1 per cent year-on-year change.  The group also said its profit before tax during the period stood at N14.127 billion, a N12.107 billion increase from N2.020 billion recorded in the same quarter in 2020, with a 599.5 per cent Y-o-Y change …………read more

External reserves lost $610m in Nov, CBN battles to save naira- Daily Independent

The nation’s external reserves fell by $610m last month, figures obtained from the Central Bank of Nigeria on Thursday revealed.  The reserves dropped to N$41.22bn as of November 29 from $41.83bn on October 29.  The CBN also disclosed that at the present level, the external reserves could meet the country’s nine-month import demand.  Figures obtained from the apex bank showed that the reserves, which had gained $5bn in October, returned to a downward path in November. The reserves increased from $36.78bn on September 30 to $41.83bn as of October 29…………….read more

Firms should pay penalty interest on N170bn unclaimed dividends – Expert- Punch

A finance expert and the Chief Executive Officer of SystemSpecs Limited, John Obaro, has suggested that to create the incentive for companies to act in the best interest of shareholders amid the N170 billion unclaimed dividends, they should be made to pay penalty interests on the unpaid dividends.  He said this during his keynote presentation at the 10th annual conference of the Institute of Capital Market Registrars. The Securities and Exchange Commission had announced in August that the total unclaimed dividends in the Nigerian capital market stood at N170bn, which was reported by The PUNCH……….read more

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