Inflation: T-bills 8% return fails to shield investors

Fixed-income investors seeking high-yielding securities were not disappointed in the first quarter of 2021 as the rates on the T-bills 364-day Federal Government short-term debt instruments rose to 8 percent from 1.5 percent at the beginning of the quarter.

READ ALSO: CBN to limit intervention in the I&E FX window…

But with Nigeria’ s 17.33 inflation rate in February, the real return on the 364-day government less risky treasury bill is -9.33 percent.

After hitting a four-year low of near-zero percent in 2020, yields on the Federal Government risk-free treasury bills climbed to more than 15- month high in the three months ended March 2021.

Weeks after the Central Bank of Nigeria (CBN) shocked the market with a 10.10 percent stop rate for the 362-day Open Market Operation (OMO) bill, the highest levels seen in almost a year, fixed-income investors demanded higher rates for T-bills.

“The increase in the stop rates can be linked to the hike in CBN OMO rates some weeks ago. Investors are bidding at higher rates and the Debt Management Office (DMO) also needs to raise the cut off rate to fill some of the orders,” Ayodeji Ebo, head, retail investment, Chapel Hill Denham, said.

According to the T-bills auction result for March 31, 2021, investors bid at a rate as high as 8 percent for the 91-day bill, 9 percent and 11 percent for the 182-day and 364-day bills, respectively, but CBN settled at 2 percent, 3.5 percent and 8 percent, respectively. The stop rates for the 91-day and 182-day bills stayed flat but the 364-day bill increased by 100 basis points compared to the result of the previous auction.

Investors showed less interest in the shorter 91-day and 182-day bills as they attracted a lower interest rate but were willing to subscribe to the longer 364-day bill which rose by 100bps to 8 percent interest rate.

While CBN planned to raise N10 billion for the shorter 91-day bill, investors subscribed with N570 million less. The apex bank was eventually able to allot N2.88 billion, almost four times less than its initial offer.

Investors’ bid for the 182-day bill was the same. While the CBN offered N17.6 billion worth of treasury bills, investors said they were willing to invest N12.74 billion. The apex bank raised N3.24 billion.

The 364-day bill was, however, oversubscribed by N51.72 billion. The CBN initially offered N68.08 billion but after investors said they were willing to invest N190.43 billion, the apex bank increased its allotment to N138.71 billion.

The recent uptick in T-bills rate to more than one year-high is good news for fixed income investors as their real return on investment which appreciated to -9.33 percent in March is much better than the -13.89 percent report in November 2020 when investors were more concerned about losing their capital than return on investment.

Even though a BusinessDay poll of five market analysts expect the rates on the less risky government Nigerian treasury bills to reach 9 percent before the end of June this year, the country’s inflation rate which is expected to maintain an upward trend possess a threat to investors real return.

Despite a 15-month high uptick in the yields on Federal Government risk-free instruments, fixed-income investors are earning negative returns in real terms due to inflation rate which accelerated to a 48-month high in February 2021.

Nigeria’s rising cost of goods and services with no relief insight puts local investors in government instrument at a disadvantage when compared to their African peers.

With 13.26 percent T-bill rates in Ghana and 9.213 percent in Kenya, fixed-income investors in both countries are enjoying a real return of 2.96 percent and 3.41 percent, respectively. February inflation in the West African country and East Africa’s largest economy stood at 10.3 percent and 5.8 percent, respectively.

Interest rates in Nigeria have always been high due to the monetary system since 2009 which sought to use FGN bonds/T-bills and OMO bills as a means of attracting US dollars into the country to stabilise the naira. But October 23, 2019, OMO policy by the Central Bank which prevents domestic investors from participating in the auction, drove rates to its record low levels.

From October 23, 2019, the apex bank banned non-bank locals (individuals and corporates) from participating in OMO auction at both the primary and secondary market. The CBN’s policy is largely in line with its drive to divert liquidity away from risk-free instruments to the real sector.

Treasury bills are short-term sovereign debt securities maturing in one year or less. They are sold at a discount and redeemed at par.



CBN to limit intervention in the I&E FX window…

Emerging data about Nigeria’s Foreign exchange inflows into the Investors and Exporters (I&E) forex window indicate that the Central Bank (CBN) is keeping its word to reduce its intervention in the dynamics of the market.

READ MORE: $1.5bn for Port Harcourt refinery repair can build 12 world-class hospitals – Peterside

Inflows into the market dropped to six months low following significant decline by 99.3 percent in interventions by the Central Bank of Nigeria (CBN), which hitherto was a dominant player in the market.

Godwin Emefiele, the CBN governor, said at the last Monetary Policy Committee (MPC) meeting briefing that since January the CBN had not intervened in the I&E window.

The market has always operated within a band of around N409 to the dollar. At some point, it attained N412 and N413, and began to move, and that it is how it is supposed to move, he said. “The CBN job is to moderate the market in line with where we think exchange rate should be,” Emefiele had said.

Data from the FMDQ captured in a report by FSDH Research show that total foreign exchange inflow into the window decreased by 39.48 percent to $565.9 million in February 2021, compared to $935.2 million in September 2020.

The inflows comprised of Foreign Direct Investment (FDI), which fell to $7.5 million in February 2021 from $30.8 million in September 2020; Foreign Portfolio Investment (FPI) $17.9 million in February 2021 ($36.8m in September 2020), other corporate $9.3 million in February 2021 ($22.4m in September 2020), and the CBN $2.9 million in February 2021 ($434.5m in September 2020).

Others include inflows from exporters, which dropped to $175.7 million in February 2021 from ($206.8m in September 2020), individuals $2.5 million in February 2021 from ($29.4m in September 2020), and non-bank corporate, which declined from $350.1 million September 2020, to $175.5 million in February 2021.

Inflows from the CBN fell by 99.3 percent from $434.5 million in September 2020 to $2.9 million in February 2021.

Despite the positive GDP growth in the fourth quarter of 2020, inflows from FDI and FPI remain low in the first two months of 2021.

This suggests low investors’ confidence amid uncertainty relating to foreign exchange management and insecurity concerns, analysts at FSDH said.

Despite rising crude oil prices, Nigeria’s External Reserves have lost 5.7 percent of its value from January 25 to March 17, 2021, according to the report.

Challenged oil inflows due to OPEC’s cuts, weaker foreign investment inflows, high demand for foreign currency to finance imports and other needs and possible clearance of FX backlogs are factors that continue to weaken External Reserves.



Investors: How companies can attract funding

As investors gear up to tap from opportunities in Nigeria through investments in the country’s estimated 41.5 million startups, small and medium scale companies in need of growth capital have to be investment-ready to attract funding, according to industry stakeholders.

READ ALSO: CBN Denies Placing New Restrictions On Cryptocurrency.

Discussing one of the most important aspects of business for most entrepreneurs in Nigeria and Africa – funding, trade and investment stakeholders in a recent webinar organised by the Nigerian-British Chamber of Commerce said businesses should be created based on ‘universal foundation’ or ‘sustainable foundation.’

“Integrity, strong governance and keeping proper records of the business and the ability to leverage on environment impactful initiative are very important,” Bisi Lamikanra, former partner and head of the advisory services, KPMG Nigeria said.

Small and medium-sized enterprises (SMEs) are described by analysts as the bedrock of the Nigerian economy as they account for over 95 percent of all businesses and contribute over 50 percent to the economy.

But hard hit by the double challenge of COVID-19 and slow economic growth, small businesses in Africa’s most populous nation are now more vulnerable as constraints in liquidity and cash flow, coupled with increased payment delays have resulted in endemic depletion of working capital.

With the high cost of accessing bank credit and lack of the much-required collateral, many Nigerian businesses are at the mercy of investors for funding to expand and increase the bottom line, but they also have to be ready to be attractive for investment.

“An investor-ready company just means that such a business is ready for marriage between itself and an investor. So an investor can partner with them and honour the agreement,” Okechukwu Enelamah, chairman, African Capital Alliance (ACA), and former minister of Industry, Trade, and Investment, said.

Meanwhile, companies like Flutterwave and Kuda are some of the startups that raised funding within the first three months of 2021. The former raised $170 million from a Series C fundraising while the latter secured $25 million in a Series A fundraising.


Equities Market

Equities market gains over N100bn as investors buy Zenith, GTBank, others

The record positive seen on Custom Street came as investors realise the equities market offers reentry opportunities for value hunters as prices of most counters hit record lows.

Trading on the floor of the Nigerian Exchange (NGX) Limited closed in green zone on Thursday as investors raised stakes in stocks like Zenith Bank Plc, Eterna Plc, GTBank Plc, Dangote Sugar Refinery Plc and Lasaco Plc.

READ ALSO: SMEDAN opens N5m loan application portal for SMEs

The record positive seen on Custom Street came as investors realise the equities market offers reentry opportunities for value hunters as prices of most counters hit record lows.

The All Share Index (ASI) of the Bourse stood higher by 0.54percent to close at 38,914.84 points, from 38,706.13 points recorded the preceding day.

The negative return year-to-date (YtD) stood lower at -3.37percent. This week alone, the equities market has increased by 0.69 percent, while this month it has declined by 2.22 percent.

Also, the value of listed stocks on the Bourse increased by N109billion, from the preceding day high of N20.251trillion to N20.360trillion.

Eterna Plc led the gainers league after its share price moved from N4.62 to N5.08, up by 46percent or 9.96percent.

Lasaco also advanced, from N1.2 to N1.3, up by 10kobo or 8.33 percent. Zenith Bank moved up from preceding day low of N20.5 to N22, up by N1.5 or 7.32percent.

GTBank rose from N28 to N29.8, adding N1.8 or 6.43 percent while Dangote Sugar moved from N16 to N17, up by N1 or 6.25 percent.

Unity Bank, GTBank, Zenith Bank and FBN Holdings were actively traded stocks on the floor of Nigerian Exchange (NGX) Limited. In 4,040 deals, investors exchanged 1,468,421,633 units valued at N5.853billion.


Mobile Money Business

The Rise Fund to Invest $200m in Airtel Africa’s Mobile Money Business at $2.65bn Valuation

Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces the signing of an agreement under which The Rise Fund, the global impact investing platform of leading alternative investment firm TPG, will invest $200 million in Airtel Mobile Commerce BV (“AMC BV”), a wholly owned subsidiary of Airtel Africa plc (the “Transaction”). AMC BV is currently the holding company for several of Airtel Africa’s mobile money operations; and is now intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.

READ ALSO: Registration for Auto Revamp Training Program

The Transaction values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis.

The Rise Fund will hold a minority stake in AMC BV upon completion of the Transaction, with Airtel Africa continuing to hold the remaining majority stake.

The Transaction is subject to customary closing conditions including necessary regulatory filings and approvals, as necessary, and the inclusion of specified mobile money business assets and contracts into AMC BV.

The Transaction is the latest step in the Group’s pursuit of strategic asset monetization and investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years.

The Group is in discussions with other potential investors in relation to possible further minority investments into Airtel Money, up to a total of 25% of the issued share capital of AMC BV.

There can be no certainty that a transaction will be concluded or as to the final terms of any transactions.

The proceeds from the Transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.

Airtel Africa Mobile Money Services

Operating under the Airtel Money brand, Airtel Africa’s mobile money services is a leading digital mobile financial services platform catering to a large addressable market in Africa (characterised by limited access to formal financial institutions with limited banking infrastructure) and includes mobile wallet deposit and withdrawals, merchant and commercial payments, benefits transfers, loans and savings, virtual credit card and international money transfers.

Mobile money services are available across the Group’s 14 countries of operation, however in Nigeria the Group offers Airtel Money services through a partnership with a local bank and has applied for its own mobile banking licence.

It is the intention that all mobile money operations will be owned and operated by AMC BV.

In our most recent reported results for Q3, the mobile money service segment (corresponding to all the businesses that are intended to be transferred to AMC BV) delivered a strong operational performance:

  • Generated revenue of $110 million ($440 million annualised), and underlying EBITDA of $54 million ($216 million annualised) at a margin of 48.7%.
  • Year on year revenue growth for the quarter was 41.1% in constant currency, largely driven by 29% growth in the customer base to 21.5 million, and 9.7% ARPU growth.
  • Growth in transaction value was 53.0% to $12.8 billion ($51 billion annualised).

Our mobile money business benefits from strong network presence with our core telecom business through the extensive distribution platform of kiosks and mini shops as well as dedicated Airtel Money branches supplementing our extensive agent network, to facilitate customers’ assured wallet and cash.

We have a clear strategy to continue to drive sustainable long-term growth in Airtel Money with a focus on assured float availability, distribution expansion and increased usage cases for our customers.

In this year alone we have added partnerships with Mastercard, Samsung, Asante, Standard Chartered Bank, MoneyGram, Mukuru and WorldRemit to expand both the range and depth of the Airtel Money offerings and to further drive customer growth and penetration.

The profits before tax in the full year ending 31 March 2020 and the value of gross assets as of that date, attributable to the mobile money businesses were $143.4 million and $463.2 million, respectively.

Key Elements of the Transaction

  • Agreement values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis.
  • AMC BV, a wholly owned subsidiary of Airtel Africa, is currently the holding company for several of Airtel Africa’s mobile money operations; and is now intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries once the inclusion of the remaining mobile money operations under AMC BV is completed.
  • A newly incorporated investment vehicle of The Rise Fund will invest $200 million through a secondary purchase of shares in AMC BV from Airtel Africa. The transaction will close in two stages. $150 million will be invested at first close, once the transfer of sufficient mobile money operations and contracts into AMC BV has been completed, with $50 million to be invested at second close upon further transfers.
  • Airtel Africa aims to explore the potential listing of the mobile money business within four years. Under the terms of the Transaction, and in very limited circumstances (in the event that there is no Initial Public Offering of shares in AMC BV within four years of first close, or in the event of changes of control without TPG’s prior approval), TPG would have the option, so as to provide liquidity to them, to sell its shares in AMC BV to Airtel Africa or its affiliates at fair market value (determined by a mutually agreed merchant bank using an agreed internationally accepted valuation methodology). The option is subject to a minimum price equal to the consideration paid by The Rise Fund for its investment (less the value of all distributions and any proceeds of sale of its shares, and with no time value of money or minimum return built in) and a maximum number of shares in AMC BV such that the consideration does not exceed $400 million.

The Transaction is expected to reach first close over the next three to four months. From first close The Rise Fund will be entitled to appoint a director to the board of AMC BV and to certain customary information and minority protection rights.



Why investors flock to Ikoyi, VI despite challenges…

Despite the challenges in the Nigerian real estate market that are deeper in highbrow locations or up-market neighbourhoods, Ikoyi and Victoria Island in Lagos remain attractive destinations for investors.

READ ALSO: PMI: Business Conditions in Nigeria Show Improvement

These two locations, home for luxury real estate, have seen challenges reflected in over-supply interspersed with falling demand and widening vacancy rate, which, as at the end of 2020, was estimated at 40 percent for residential properties.

But returns on investment, especially for small size family housing units like studio, one-bedroom and two-bedroom apartments, have been good and encouraging compared to other locations.

Lay-offs, pay-cuts and economic downturn made worse by the crippling impact of COVID-19 pandemic have left consumers with shrinking wallets and low purchasing power, leading to buyers and tenants’ preference of apartment units to duplexes, maissonettes and large luxury homes.

For this reason, multi-family units, specifically apartments, top consideration for most investors in these locations. “Apartments make more economic sense to developers, more so as multiple units can be developed on a piece of land without taking up too much space,” David Mba, former manager, commercial sales at Fine & Country, explains to BusinessDay.

“Returns are higher for smaller apartment units, especially 2-bedroom, which means that demand is more for these house-types than the big-size apartments,” he states.

According to Mba, Ikoyi and Victoria Island are “promising destinations,” but the consideration has to be on smaller-unit apartments. “Any investor wanting to enter the market amid the COVID-19 pandemic should look in that direction,” he advised.

On the average, rental values in Victoria Island as at the end of 2020 stood at N1.5 million per annum for 1-bedroom apartment; N3.5 – N8.5 million for 2-bedroom; N5.5 – N15 million for 3-bedroom and N6 – N25 million for 4-bedroom apartment.

In Ikoyi, it is N4 – N5 million per annum for 1-bedroom; N6.5 million for 2-bedroom; N10 million for 3-bedroom, and N10 – N25 million for 4-bedroom apartment.

Return on investment on these apartments, according to Mbah, is quite significant. In Victoria Island, the return on the different apartment sizes stood at 2.7—3.7 percent per annum for 1-bedroom; 7—10 percent for 2-bedroom; 6.1—10 percent for 3-bedroom; 6.1—9.2 percent for 4-bedroom duplex and 3.75—6 percent for 4-bedroom terrace.

In Ikoyi, it is 9 percent for 1-bedroom; 5.4—8.6 percent for 2-bedroom; 5.3—8 percent for 3-bedroom; 4.5—8.3 percent for 4-bedroom duplex and 4.8—5-4 percent for 4-bedroom terrace.

Though most real estate investors aim for over 10 percent or 12 percent return on their investment, experts say anything above 8 percent is good.

Lekki is another Island location in Lagos where return on investment is good and encouraging. Chiedu Nweke, CEO, Periwinkle Residences Limited, argues that returns in the Lekki corridor is the highest in Lagos, but records show that Ikoyi, particularly, is still ahead.

“This is because whether you are talking about Ikoyi or Victoria Island, the story is the same that these locations remain attractive for reasons other than returns on investment,” Mba says, explaining that talking in terms of strengths, weakness, opportunities and threats (SWOT), which guide investments, opportunities are more here.


investors loose

Investors Lose N371.33bn as NSEASI Dips…

Investors Lose N371.33bn as NSEASI Dips by -1.80%, Close Below 39,000bpts

Equities market closed today on a negative note, as NSEASI depreciated by -1.80% to close at 38,686.85 basis points as against +0.17% appreciation recorded previously.

READ ALSO: Inflation: February Headline May Jump To 17.27%

Its Year-to-Date (YTD) returns currently stands at -3.93%.

Market Breadth

Market breadth closed negative as CHAMPION led 14 Gainers as against 24 Losers topped by UBA at the end of today’s session

– an unimproved performance when compared with previous outlook.

Market Turnover                                                                                             

Market turnover closes positive as volume moved up by +64.83% as against -49.92% downtick recorded in the previous session. 

UBA, NOTORE and MBENEFIT were the most active to boost market turnover. MTNN and UBA topped market value list. Investors lose.

Volume Shockers            

MTNN leads the list of active stocks that recorded impressive volume spike at the end of today’s session.  

NSE30 1087.68 Proshare-0.01% NSE BANKING 375.22 Proshare-0.03% NSE INSURANCE 194.41 Proshare1.26% NSE INDUSTRIES 1933.61 Proshare0.47% NSE OIL 262.26 Proshare1.01% NSE ASeM 729.87 Proshare0.00% DANGOTE 116.84 Proshare0.47% ELUMELU 89.02 Proshare-6.79%

NSE30 1087.68 Proshare-0.01% NSE BANKING 375.22 Proshare-0.03% NSE INSURANCE 194.41 Proshare1.26% NSE INDUSTRIES 1933.61 Proshare0.47% NSE OIL 262.26 Proshare1.01% NSE ASeM 729.87 Proshare0.00% DANGOTE 116.84 Proshare0.47% ELUMELU 89.02 Proshare-6.79%

Investors lose



Innovators Engage Investors At Fintech Webinar.

Innovators Engage Investors At Fintech Nigeria StartUp Funding Webinar

The Fintech Association of Nigeria (FintechNGR) recently held its monthly webinar themed, “StartUp Funding Webinar:

READ ALSO: MSMEs: Deepening access to capital…

Innovators meet Investors, Who part with a Deal?” The association sought to educate participants on how to move from having an idea to moderating execution and obtaining funding.

FintechNGR members noted that startups play a major role in the development of an economy; however, the odds against startup success are usually higher, as they attempt to survive in very tough business environments. Statistics show that 31.5% of startups fail in their first year (Investopedia, 2020), as part of its mission of driving Fintech growth, FintechNGR partnered with a few organizations to include a startup pitch in its webinar in February 2021.

The webinar explored the varying challenges that accompany fundraising, navigating grey areas with VCs, out-of-the-box techniques to getting startup capital, legal issues associated with funding, and also live pitches with real investors.

Participants also got to learn some of the different regulatory frameworks applicable to certain industries that they need to pay attention to as startups as well as available programs and funding rounds available from partner organizations.

Also, startups were allowed to interact with investors, receive feedback on their ideas, and started investment conversations that could lead to funding. Phone POS, Palate Hub, The Bells Global, Crediometer, and a few others were some of the startups that participated in the 5-minute pitch session with the investors.

With panelists drawn from across different sectors- Adenike Sheriff, Principal, Future Africa, Mrs. Ashimi Tonbofa, Partner Tonbofa, Nsikak John, Head, Enterprise Innovation, NSE, and Dolapo Agbaje, Vice President, APIS Partners, the participants were equipped with in-depth practicable learning that could be easily put to work in their startups.


Stock Exchange

Stocks shed N245bn: Investors go for attractive yields

Investors in Nigeria’s equities market became worse off in the trading week ended March 5 after booking about N245billion loss as funds moved out of equities due to impressive yields in the fixed income (FI) market.

READ ALSO: AfDB provides $400,000 grant for Nigeria’s SEC

Investors are now battling with the decision to either buy into the recent dip or to stay out of the market pending when there are major positives capable of reversing the negative trend.

The market disappointed despite significant increase in prices of crude oil –Nigeria’s major source of dollar revenue, coupled with the attractive dividend yields of a number of dividend-paying counters.

The Nigerian Stock Exchange (NSE) All-Share Index (ASI) and Market Capitalisation moved from week-open highs of 39,799.89 points and N20.823 trillion respectively to close the review week at 39,331.61 points and N20.578trillion.

The NSE ASI closed negative in four out of the five-day trading week, causing the benchmark performance indicator of the Bourse to decrease by 1.18percent week-on-week (WoW).

This negative was fueled mostly by remarkable losses in consumer goods, insurance and oil & gas stocks as evidenced in their sectoral indices.

NSE-30 Index which tracks the top 30 companies in terms of market capitalisation and liquidity decreased by 1.46percent in the review trading week.

Except NSE Industrial index which rose by 1.39percent, other sectoral indices closed in red –NSE Consumer goods index (-6.30percent), NSE Insurance index (-4.99percent), NSE Oil & Gas (-2.16percent), NSE Pension (-2.83percent), and NSE Banking (-1.94percent).

The stock market of Africa’s largest economy had bullish run in 2020 with a record-breaking return of +50percent amid unattractive yields in the fixed income space, placing it as world’s best.

Likewise, the market kicked off 2021 with similar trend, gaining 5.3percent in January, but since February (-5.6percent) it has maintained a southward direction. As at close of trading on Friday, the market has lost 2.33percent of its year-open value.



FUGAZ investors lose N34.68 billion in trading

Market capitalization of the top five banks dropped to N2.52 trillion as at close of business on the 4th of March 2021.

READ ALSO: CBN extends forbearance for intervention loans by another 12 months

Investors in the elite banks in Nigeria- FBNH, UBA, GTB, Access and Zenith have lost a total of N34.68 billion in a single trading session, amid sell-offs.

According to data from the Nigerian Stock Exchange (NSE), the market capitalization of the top five banks dropped to N2.52 trillion as at close of business on the 4th of March 2021, shedding about 1.6% in a single trading session.

The loss is due to downward pressure on the share prices of the elite banks, evident by the sell-off witnessed in the market. A snapshot of how much each bank lost and the impact is succinctly captured below;


The United Bank for Africa investors lost a total of N10.26 billion after its market capitalization dropped from N282.15 billion to N271.9 billion as at close of business yesterday.

The drop is due to a sharp decline in its share price which closed at N7.95, shedding about 3.64% in a day.

Investors cashed in on the decline to trade about 26,782,197 units of the Bank’s shares valued at N211, 571,939.35, placing the bank as the fourth most traded stock at the NSE. The volume of shares traded by the bank rose astronomically by 201.9%, when compared to 8.87 million units traded the previous day.

On the other hand, it is pertinent to note that the United Bank for Africa (UBA) is yet to release its audited FY 2020 result.

Access Bank

Access Bank Nigeria Plc lost a total of N8.89 billion after its market capitalization dropped from N286.14 billion to N277.25 billion. The loss is due to a decline in its share price from N8.05 to N7.80, indicating a dip of 3.11%.

Just like UBA, Access Bank investors traded a total of 21,586,491 units valued at N168, 090,266.60, placing it as the fifth most traded stock at the NSE today. In lieu of this, Access Bank stock volume appreciated by 229.1%, from 6.56 million traded yesterday.

Access Bank is yet to release its audited financial statements for FY 2020.

Zenith Bank

Zenith Bank investors lost a total of N7.85 billion after market capitalization dropped to N794.3 billion today. The marginal drop is due to a slight dip in the firm’s share price, from N25.5 traded yesterday to N25.30 as at close of business, indicating a decline of 0.98%.

Investors reacted to this drop by trading 38,647,711 units of the bank’s shares valued at N983, 251,467.75, placing the firm as the second most traded stock at the NSE market.

The drop in the market value of Zenith shares is in contrast to what was obtained last week, when investors gained a total of N37.7 billion, the highest recorded by the bank since the famous circuit breaker. The gains were sequel to an impressive financial performance by the firm for FY 2020, after it recorded a PAT of N230.6 billion and declared a final dividend of N2.70 per share.


FBNH investors lost N1.8 billion after its market capitalization declined to N253.06 billion as at the close of business. The drop was due to a 0.7% decline in its share price from N7.1 traded earlier to N7.05.

In lieu of this, a total of 31,253,644 units of the bank’s shares valued at N983, 251,467.75 were traded, placing the firm’s stock as the third most traded stock at NSE. The total volume traded surged by 88.9%, from a total of 16.54 million traded a day earlier.

FBNH had earlier declared a Profit After Tax figures of N79.71 billion for FY 2020, indicating an increase of 8.2% YoY.


GTB investors lost a total of N5.89 billion, following a drop in its market capitalization from N932.97 billion to N927.08 billion. The drop was due to a 0.63% decline in share price which closed at N31.50.

It is pertinent to note that GTB is yet to release its audited financial statement for FY 2020.

What you should know

  • The Nigerian Stock Exchange ended on a bearish note on Wednesday, March 4, 2021 after the ASI declined by 0.40% to close at 39,364.67 index points.
  • On a general note, investors lost a total of N82.35 billion, with FUGAZ accounting for 42.11% of the loss.