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Friday August 28, 2020 / 08:34 PM / by
NASD Plc/ Header Image Credit:NASD Plc
COVID-19 Impact Series:
Nigerian Banks
As the world continues to battle with the coronavirus
outbreak, the impact across some key economic sectors cannot be understated and
the hospitality sector is not exempted.
Hotels, restaurants, clubs, theme parks, cinemas,
outdoor catering have all been struck hard by the Coronavirus outbreak. The
pandemic has hurt the hospitality sector twice as much as both the Ebola and
Severe Acute Respiratory Syndrome (SARS) outbreaks did in the earlier years.
The number of deaths keep increasing every day as more than 2.5 million cases
are recorded worldwide already. The negative impact of the pandemic in the
hospitality industry was valued at over $800 billion as at the end of April
2020.
The hospitality industry felt the impact of the
pandemic most when the Federal Government shut the economy in April, as it
asked all businesses in Abuja, Lagos, and Ogun States to lock up. Only the
businesses offering essential services were exempted. However, hotels are not
considered to be among the essential services providers and therefore, they
were mostly shut down, except for the few that were and are still being used as
isolation centres. It is worthy to note that the adverse effects of the
shutdown were huge. Revenue suffered, even as many hotel workers were laid off.
Nigeria's hospitality giants have had their revenues
bleeding due to the pandemic. For instance, Marriot International which is the
biggest and largest hotel chain in the world with over 170,000 employees have
granted a temporary leave from work to its workforce to be able to cope
financially and avoid unnecessary overhead costs coupled with low or no
patronage in these trying times. Also, Transcorp Hotels PLC's room revenue fell
to N3.03 billion compared to the N5.88 billion in the same period in 2019. The
business activities of its branches in the nation's commercial capital, Lagos,
as well as in Calabar and Port-Harcourt grounded to a halt between the months
of April and May after the government imposed restricted movements in a bid to
combat the spread of the Coronavirus.
The Hospitality sector do not need to wait for the end
of the pandemic to start planning a recovery for itself. The recovery process
needs to begin at the earliest possible time. According to industry reports, it
may take about 8 months at the most for the hospitality industry to revamp
after the pandemic is declared under control. So, how can operators in this
industry make the best use of this pandemic? The operators need to look inwards
and re-engineer the processes to cut costs, and look outwards to customers,
maintain contact, inform them about the steps being taken to ensure their
safety when they return. It is that simple.
In support of the hospitality industry as well as
other affected industries, NASD in its capacity, encourages enterprises in
Nigeria by providing access to capital to ensure sustenance of operations
during a period such as this. We accomplish this via our service offerings - the NASD Enterprise Portal (NASDeP) and VentureRamp. NASDeP helps connect high
growth enterprises in the hospitality services sector with willing private
equity investors seeking to invest, while the NASD VentureRamp is a
crowdfunding platform that can assist entrepreneurs in raising funds for their
respective projects.
NASD continues to support growth and development
within Nigeria and through its activities boost the capital market by
facilitating capital raise and liquidity for enterprises across various sectors
through innovative products and service offerings.
Year-to-Date Overview
NASD OTC Securities Exchange Market closed on a
positive note YTD as the market recorded an increase in performance. NASD
Security Index Year to date return rose by 1.95%. Total volume traded
Year-to-Date stands at 7,822,836,144 units in 1045 deals and total Value traded
is N10,719,595,461.21.
Week 35 Overview
NASD OTC Securities Exchange closed the week with a
positive return on NSI. The NSI return rose by 0.28% to close the week at
711.15 points against 709.17 points against preceeding Friday, August 21 2020.
In addition, Week 35 saw NASD Investors gain N1.45 Billion in value.
NASD OTC Market capitalization closed at N522.39 Billion compared to N520.93 Billion in the preceding Friday, resulting from
a positive movement of prices.
There was a -96.97% decrease in the total value traded
during the week as week 35 saw NASD Investors trade a total of N5,353,298.96 in value
compared to N176,792,234.71 in the
previous week. Total trade activity for the year is valued at N10,719,595,461.21.
In the same pattern, volume traded during the week was
250,906 units compared to 2,195,636 units in the previous week leading to a
-88.57% decrease in trade volume compared to week 34. Total volume traded for
the year is 7,822,836,144 units.
Top Traded Securities by
Volume
The week closed with Central Securities Clearing
System Plc ranking top among three most traded securities by volume and Niger
Delta Exploration and Production Plc as the third most traded stock by volume
in week 35.
Top Traded Securities by
Values
The week closed with Central Securities Clearing
System Plc ranking top among three most traded securities by value and Niger
Delta Exploration and Production Plc stood as the third most traded Security by
Value for the week.
Advancers for the Week
One of NASD OTC stock closed the week with a positive
movement in price. FrieslandCampina Wamco Nigeria Plc, which currently holds a
Market Capitalization of N118.64 Billion closes the week at N121.50 representing a 1.24 percent increase from the
previous close of N120.01.
Decliners for the Week
There were no decliners in the week.
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