Equities lose N217bn as investors’ sentiment worsens

The Nigerian Exchange (NGX) market capitalisation yesterday lost an additional N217 billion as investors’ sentiment worsened.  The local bourse experienced another selling rally that plunged the year-to-date return to a new low in November. The All-share index fell by -340.50 basis points to close at 144,646.01, while market capitalisation declined by N216.57 billion to close […]

The Nigerian Exchange (NGX) market capitalisation yesterday lost an additional N217 billion as investors’ sentiment worsened. 

The local bourse experienced another selling rally that plunged the year-to-date return to a new low in November.

The All-share index fell by -340.50 basis points to close at 144,646.01, while market capitalisation declined by N216.57 billion to close at N92.00 trillion.

 The market saw negative price movement in top names including DANGSUGAR, CHAMS, ZENITHBANK, and ELLAHLAKES.  

Sustained sell-offs have led to a cumulative loss of N1.5 trillion in investors’ wealth from the beginning of the week to date.

Despite negative performance, market activities were up as the total volume of all trades and the total value traded increased by +134.12% and +40.83%, respectively.

In a note, Atlass Portfolio Limited told investors that approximately 892.52 million units valued at N23,542.83 million were transacted across 20,225 deals.

ACCESSCORP emerged as the most traded in terms of trading volume, accounting for 54.81%, followed by TANTALIZER (7.96%), JAPAULGOLD (6.07%), ZENITHBANK (3.88%), and CONHALLPLC with 3.51%.

Also, ACCESSCORP accounted for 44.98% of the total value of all trades executed in the market, making the banking stock the highest traded on the exchange.

 

 

 

NCR topped the gainers chart, up by +9.85%, followed by CAVERTON (+9.71%), UACN (+8.33%), MBENEFIT (+7.69%), LINKASSURE (+7.57%), TANTALIZER (+7.36%), and ten others.

 

 

 

A total of thirty-nine stocks depreciated, data from the Nigerian Exchange showed.

 

 

 

With a price depreciation of -10.00%, UNIVINSURE topped the worst performers’ chart, followed by ABCTRANS (-9.95%), LIVINGTRUST (-9.92%), CHELLARAM (-9.85%), ROYALEX (-9.76%), and TRANSCORP (-8.44%).

 

 

 

Hence, the market breadth closed on a negative note, as there were 16 gainers and 39 losers.  Sectoral performance was negative, as three out of the five major market sectors declined.

 

 

 

The insurance sector fell by -1.35%, followed by the banking sector, which lost -1.22%, and the oil & gas sector, which depreciated by -0.18%. The consumer goods sector increased by 0.09%, while the industrial goods sector remained unchanged. Dangote Cement Plunges as Investors Trim Shareholding 

 

 

 

 

 

Capital Gain Tax will make market competitive, investors-friendly — Oyedele

 

 

 

The new Capital Gains Tax (CGT) will make the capital market more competitive and investor-friendly, the Presidential Fiscal Policy and Tax Reforms Committee says.

 

Prof. Taiwo Oyedele, the Chairman of the committee, said this at an online public lecture organised by the Capital Market Academics of Nigeria (CMAN) on Wednesday.

 

The News Agency of Nigeria (NAN) reports that CGT is a tax on the profit (gain) you make when you sell or dispose of an asset that has increased in value.

 

The tax is levied on the gain itself, not the total amount of money you receive from the sale.

 

Oyedele said that contrary to some negative perceptions about the CGT, it was one of the lowest relative to Companies Income Tax (CIT) and Value Added Tax (VAT).

 

He stated that many countries across different regions, developed or developing, including resource rich countries tax capital gains at normal income tax rate.

 

According to him, based on 2024 tax collection by the Federal Inland Revenue Service (FIRS), CGT accounted for less than one per cent of CIT and VAT (2014 to 2024) with CIT amounting to N26 trillion, VAT N22 trillion and CGT N276 billion.

 

The chairman said that combined with the reduction of CIT from 30 per cent to 25 per cent, companies would be more profitable leading to higher valuation (expected to far exceed the incremental CGT).

 

Analysing the benefits of the new tax reform policy, he said that by granting input VAT credits on assets and overheads not previously applicable, the new tax reform would lower business costs and enhance cash flows.

 

Oyedele said the policy would ensure CGT exemption for retail investors, re-investment, pension funds, Real Estate Investment Trust (REITs), security lending, and re-organisation among others.

 

“The policy will ensure deduction for capital losses and other incidental costs, eliminate Withholding Tax (WHT) on bonus shares, create a level playing field for listed vs unlisted entities such as free zone tax regime.

 

“It will also ensure stamp duty exemption for all documents relating to the transfer of stocks and shares, harmonisation of earmarked taxes such as TET, NITDA levy, and NASENI, ” he said.

 

The chairman said that the tax policy would help to moderate excessive fees and levies by government agencies.

 

Dr Umaru Kwairanga, the Chairman, Nigerian Exchange Group (NGX), said that CGT was not a new concept in the capital market.

 

Kwairanga said that there were perceptions that the new tax act would increase the rate of CGT to a level that would have a negative impact on most investors.

 

According to him, perception matters a lot in financial markets and can move markets long before any real action takes place.

 

“We have seen that in the recent volatility in our market. It is therefore very important to manage information very well so that it does not lead to wrong or flawed perceptions that can have very real effects on markets and the economy, ” he said.

 

Innocent Ohagwu, the President, Chartered Institute of Taxation of Nigeria (CITN) said the CGT would not negatively impact the capital market rather, it would profit the market.

 

According to him, a lot of work has gone into the reform. He urged stakeholders to support the reform policy by allowing it to operate before the criticisms.

 

Prof. Sheriffdeen Tella, an economist, raised concerns on the tax imposed on private bonds by the new tax policy. Tella said the move would make investors subscribe more to government bonds.

 

Muhammad Nami, the former Chairman of FIRS, called for more stakeholders’ engagement to address problems facing investment decisions in the country.

 

According to Nami, analysing the policy in local languages would help citizens to understand it better with a view to making informed decisions. NAN