• Thursday, June 13, 2024
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Nigeria stocks lose N430bn in September

Here’s what analysts expect from equites market after recent rally

In the trading month ended Friday, September 30, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) depreciated by 1.63percent, while its Market Capitalisation was down by N430billion. The record loss in September was driven mostly by insurance, oil & gas, consumer goods and banking stocks.

Month-on-month (MoM), All Share Index dropped to 49,024.16 points in September while market capitalisation closed lower at N26.451trillion as against 49,836.51 points and N26.880trillion respectively as at August 31.

The market closed the review month with its record positive return down to 14.77percent.

The Nigerian Exchange Group Plc (NGX Group) held its 61st Annual General Meeting (AGM) in Lagos on Friday September 30 2022, where shareholders approved resolutions by the company’s Board of Directors. Apollos Ikpobe and Okechukwu Itanyi retired by rotation and were re-elected as non-executive directors.

Enase Okonedo’s resignation was earlier approved by the board and as such she was not presented for re-election. Other resolutions adopted at the AGM include the appointment of Ernst & Young as NGX Group’s external auditors; the Board’s authority to fix the Audit Company’s remuneration; the disclosure of NGX Group’s executive remuneration; and the re-election of the Statutory Audit Committee.

The Group Chairman of NGX Group, Abimbola Ogunbanjo, who was due for re-election for a period of one year until the next AGM in 2023, voluntarily retired from the board and did not present himself for re-election. While four non-executive directors of the board were re-elected, including Fatimah Bintah Bello-Ismail, Oluwole Adeosun, Chidi Agbapu, and Patrick Ajayi.

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To allow for wider consultations and further engagement with shareholders, the special business to raise funds of up to N35billion for business expansion was not presented.

Commenting at the AGM, Ogunbanjo thanked shareholders for working assiduously with the Board and Management of the Group in delivering the dividends of demutualisation and enhancing shareholder value and for attaining many firsts during his term in office. He stated, “We released our dividend policy in line with our mandate to shareholders after the completion of our recent extraordinary General Meeting.

“We also created a revised corporate governance framework, already approved by shareholders and consistent with securities regulations to realign the interests of all stakeholders. In closing, I would like to thank the Board and Management of NGX Group for their support since I assumed office as Chairman of the Group in 2021. As I retire from the Board, I trust that my successor will continue the legacy of service and bring greater accomplishments as the sustainable exchange group championing Africa’s socio-economic growth.”

Oscar N. Onyema, GMD/CEO noted that the Group recorded a 22percent increase in profitability, a 13percent increase in gross earnings, and 14.9percent growth in revenue. He noted that the Group intends to enhance its performance going forward and called for support from all stakeholders.

After the AGM, the Board of Directors appointed Apollos Ikpobe as Acting Chairman, who said he recognised the enormous responsibility associated with the role. He pledged to work with all stakeholders to ensure the stability and growth of the company during this transition. “On behalf of the board, I thank Ogunbanjo for his selfless service to the company over the years”.