| Unlisted OTC MARKET |    1110 VIEWS  |
| Unlisted OTC MARKET | |
| 1110 VIEWS | |
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Friday August 21, 2020 / 09:10 PM / by
NASD Plc/ Header Image Credit: NASD Plc
The Financial services sector is one of the top 20
contributors of GDP in Nigeria, as financial institutions contribute about
2.59% to Nigeria's real GDP. In response to the pandemic, banks in Nigeria are
taking laudable steps to help combat the negative effects of the pandemic. Some
of these are highlighted below:
The Central Bank of Nigeria for example, has put in
place a one-year extension of a moratorium on principal repayments for the
central bank's intervention facilities; a reduction in the interest rate on
intervention loans from 9% to 5%; regulatory flexibility for banks to
restructure facilities in the affected sectors. The central bank has also
injected liquidity into the banking sector in order to protect jobs, stimulate
local economic production and the process of import substitution.
Zenith Bank Plc of Nigeria has secured a USD 100
million loan to strengthen its support to clients and businesses whose cash
flows have been disrupted by the difficulties caused by the COVID-19 pandemic.
First City Monument Bank (FCMB) Limited has secured a
USD 50 million loan to assist in the development of lending to Small and Medium
Enterprises (SME's) in order to support the continuation of their business
operations which have been disrupted by the COVID-19 pandemic.
Access Bank Plc has secured a loan of about USD 50
million to increase the liquidity of thousands of small and medium sized
enterprises (SMEs) in Nigeria that are addressing the economic challenges of
COVID-19.
In spite of theses various actions as well as the
assistance that the banks are rendering to address the effects of the pandemic,
the Covid-19 virus has continued to cause a convulsive shock to the global
economy and the banking industry itself is not exempted.
Due to the slowdown of economic activities, the
banking sector has been threatened by economic contraction, as well as a sharp
increase in non-performing loans, from the already high levels of 11% in 2019.
Borrowers across sectors and scales of business have been affected, as declines
in income and revenue mean that they will be unable to meet their obligations.
Also, there are operational constraints of keeping employees safe and meeting
customer expectations as a result of the pandemic; the banking sector is faced
with problems of reducing fee and trading income as well as pressure on
net-interest income; the Covid-19 pandemic has brought about an increased rate
of deterioration of I.T and other support services because of internal
challenges or vendor problems. Finally, there has been an increase in
cybersecurity breaches in banks since when the pandemic started.
For banks to effectively tackle these problems, they
need to act fast and take steps. Some of the steps that banks can take include:
1. Maintaining business continuity and protecting
their supply chain.
2. Protecting their employees and planning for their
workforce.
3. Providing clarity to employees and stakeholders and
enabling business continuity.
4. Gaining insight and assessing their exposure to
risk.
5. Balancing customer care with commercial priorities.
As a barometer of the economy, NASD in its capacity,
supports and 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 financial
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 1.67%. Total volume traded
Year-to-Date stands at 7,822,585,238 units in 1022 deals and total Value
traded is N 10,714,242,162.25.
Week 34 Overview
NASD OTC Securities Exchange closed the week with a
negative return on NSI. The NSI return fell by -0.60% to close the week at
709.17 points against 713.46 points against preceeding Friday, August 14 2020.
In addition, Week 34 saw NASD Investors lose N3.15 Billion in value.
NASD OTC Market capitalization closed at N520.93 Billion compared to N524.08 Billion against preceding Friday, resulting
from a negative movement of prices.
There was a 267.25% increase in the total value traded
during the week as week 34 saw NASD Investors trade a total of N176,792,234.71 in value
compared to N48,138,905.31 in the
previous week. Total trade activity for the year is valued at N 10,714,242,162.25.
In the same pattern, volume traded during the week was 2,195,636.00 units compared to 813,582.00 units in the previous week leading to a 169.87% increase in trade volume compared to week 33. Total volume traded for the year is 7,822,585,238 units.
Top Traded Securities by Volume
The week closed with FrieslandCampina Wamco Nigeria Plc ranking top among five most traded securities by volume and Niger Delta Exploration and Production Plc as the fifth most traded stock by volume in week 34.
Top Traded Securities by
Values
The week closed with FirslandCampina Wamco Nigeria Plc
ranking top among top five most traded securities by value and Firsttrust
Mortgage Bank Plc stood as the fifth most traded Security by Value for the
week.
Advancers for the week
One of NASD OTC stocks closed the week with a positive
movement in its price. Niger Delta Exploration and Production Plc, which
currently holds a Market Capitalization of N59.95 Billion closes the week at N330.58 representing a 8.50
percent increase from the previous close of N304.67.
Decliners for the Week
Three of NASD OTC stocks closed the week with a
negative movement in their prices. FrieslandCampina Wamco Nigeria Plc, which
currently holds a Market Capitalization of N117.17 Billion closes the week at N120.01 representing a
-5.54 percent decrease from the previous close of N127.05.
Afriland Properties Plc, which currently holds a
Market Capitalization of N5.30 Billion closes the week at N1.84 representing a -7.70 percent decrease from the
previous close of N1.98.
UBN Properties Plc, which currently holds a Market
Capitalization of N10.56
Billion closes the week at N1.26 representing a -10.00 percent decrease from the previous close of N1.4.
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