…As equities soar 3.02%

By Nkiruka Nnorom

On the backdrop of the on-going Covid-19 crisis and lockdown in movement across major cities in Nigeria, the Nigerian Stock Exchange (NSE ) has enjoined companies conducting virtual meetings to enthrone transparency and efficiency in the conduct of such meetings.

This is even as the equities market again soared by 3.02 percent yesterday in the renewed positive sentiment by investors who are buying the dip, especially in value stocks.

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In a public notice titled:” NSE Guidance on Companies Virtual Meeting”, the Exchange enjoined the companies to ensure that the meetings are accessible and also conducted in a cost-effective manner, while meeting the important business and corporate needs of all stakeholders.

According to the Exchange, the guidance is in response to the shift from conventional physical meetings to virtual meetings precipitated by the COVID-19 pandemic, and the critical need to protect investors’ interests.
“It is one of the Exchange’s “Thought Leadership” initiatives, designed to provide direction to market and other stakeholders on carrying out successful, productive, and rewarding virtual meetings at this time and other times when in-person meetings are unfeasible,” it said.

In deciding to implement virtual meeting, the Exchange said that companies should first consider the availability of technological infrastructure to reach all stakeholder as well as consideration for inclusion and management of external attendees, information security, protocols and participants’ responsibilities, amongst others.

The Exchange, therefore, charged the chairperson to ensure that the agenda is strictly adhered to in order to keep attendees and discussions focused, on-topic and engaged, while multi-tasking should be avoided in order not to lose attendees concentration, especially where attendees are not using their video conferencing facilities.

Meanwhile, trading in the domestic bourse remained bullish as investors’ demanded for Dangote Cement and Tier-1 banks’ stocks persisted.

Consequently, the All Share Index (ASI) rose by 3.02 percent to 22,539.94 points – the biggest gain since increasing by 3.5 percent on January 8, 2020.

Similarly, market capitalization of listed equities jumped by 3.03 percent to N11.748 trillion, resulting in N345 billion gains to investors.

Sectoral performance was positive, as all the sectors recorded gains, with the exception of the insurance sector, which fell by 0.5 percent.

The banking sector recorded the highest gains at 4.5 percent, followed by the industrial goods (+3.0%), consumer goods (+2.5%) and the oil and gas (+1.1%) sectors.

Market sentiment, as measured by market breadth, was positive as 27 stocks gained, relative to 10 losers. Neimeth Pharmaceutical Plc and Champion Breweries Plc led the gainers, rising by 10 percent apiece, while Arbico Plc (-9.8%) and Wema Bank Plc (-9.7%) were the top losers of the day.