Business
Bears Dominate NSE Market
The bears took dominance of the equity Market of the Nigerian Stock Exchange (NSE) for three days running last week as the twin market indicators finished on negative notes.
Specifically the All Share Index (ASI), the main index at the Nigerian bourse nose dired by 5.85 per cent from its recent high of 40,012.66 basis points on Tuesday of the week under review to close at 37,249.93 points.
The aggregate market capitalisation of listed equities lost N888 billion to close the week at N11.967 trillion, having peaked at N12.855 trillion on Tuesady of the review week.
Market analysts have attributed the decline to profit-taking transactions on highly capitalised stocks such as the consumer goods and industrial stocks.
According to the NSE weekly report, the bearish trend also reflected in all other NSE indices. The NSE 30 Index, the indicator for measuring 30 most capitalised companies on the Exchange fell by 5.86 per cent even as the NSE Consumer Goods Index plunged by 7.05 per cent. The NSE Banking Index fell by 7.23 percent while Insurnace Index shed 2.87 percent.
The NSE Oil and Gas Index dropped 5.82 percent just as the NSE Industrial Goods Index went down by 6.59 percent.
It would be recalled that since the beginning of the year the Equities market has been on the upbeat which has resulted in the NASI having a sustained seven straight weeks gains. The market capitalisation added N2.165 trillion pegging at N12.766 trillion as against its 2008 peak level of N12.640 trillion.
The total market volume stood at 3.725 billion units of shares valued at N75.874 billion exchanged by investors in 39,060 deals at the close of trading last week in comparism with a total of 1.917 billion units of shares worth N25.133 billion exchanged in 32,368 transactions the previous week.
Transactions in the shares of Transnational Corporation of Nigeria Plc, IAS Plc and Dangote Cement Plc accounted for 1.35 billion shares valued at N48.72 billion traded in 1,692 deals contributing 36.19 per cent, 64.22 per cent and 4.33 per cent to the overall equity turnover volume, value and deals respectively.
On sectorial basis, during the review week the financial service sector lead the activity chart recording a traded volume of 1.702 billion units of shares valued at N14.698 billion in 19,826 transactions representing 45.68 per cent, 19.37 per cent and 50.76 per cent of the total traded volume, value and deals respectively.
It was followed by the conglomerates sector with a turnover of 597.153 million units of shares worth N1.052 billion exchanged in 1,410 deals indicating 16.03 percent, 1.39 percent and 3.61 per cent of the total equity turnover volume, value and deals respectively during the week.
The ICT sector emerged third on the week’s activity chart recording a turnover volume of 516.087 million units of shares traded at N1.007 billion in 264 transactions.
The week under review opened with 34 stocks recording price appreciation on Monday while 22 Stocks recorded some level of price erosion even as the price of 56 remained flat.
On second trading day of the review week out of 127 stocks that were traded, 50 recorded value addition while the price of 17 nose dived and 60 remained unchanged.
The third day saw 122 stocks taking part in the market transactions, from which 32 appreciated in value, 36 plunged while 44 remained flat.
On the fourth trading day, 126 stocks partook in the trading activities, just a as a handful of 15 stocks managed to rise in value while 57 stocks eroded in value and 54 remained flat.
A total of 120 stocks were transacted on the last trading day of the week with only 22 recording gains; 66 were flat in price while 32 shed their value.
In all 34 equities added value during the week under review down from the 58 that appreciated the previous week.
Berger Paints Plc led the top 10 gainers’ table with N1.92 price addition having opened at N9.46 to close at N11.38 per share.
The Forte Oil Plc emerged second on the week’s top 10 price gainers’ table with N1.61 price addition to finish at N17.01 from an opening price of N15.40 per share.
Academy Press Plc came third having added 70 kobo to its opening price of N1.75 to close the week at N2.45 per share.
Also on the week’s top 10 gainers’ chart were Paints and Coatings Manufacturers Plc 45 kobo, Neimeth International Pharmaceuticals Plc 40 kobo, Vitaform Nigeria Plc 61 kobo, IPWA Plc 8 kobo , Cutix Plc 25 kobo, Evans medical Plc 31kobo and Champion Breweries Plc 48 kobo.
On the flipside, Nigerian Breweries Plc led the top 10 stocks that finished in the red during the week with N20.49 price depreciation having opened at N178 per share to close at N157.51.
PZ Cussons Nigeria Plc emerged the week’s second highest loser having plunged by N7.98 from an opening price of N52.98 to close at N45 per share.
The third on the losers’ chart was Guaranty Trust Bank Plc which lost N3.29 to drop at N24.91 from an opening price of N28.20 per share.
Others were Portland Paints & Products Nigeria Plc which lost 82 kobo, Eterna Plc 66 kobo, Oando Plc N2.32, Ikeja Hotel Plc 12 kobo, Livestock Feeds Plc 69 kobo, Transnational Corporation of Nigeria Plc 15 kobo and Custodian and Allied Insurance Plc 19 kobo.
The week saw 1,770 units of federal Government of Nigeria (FGN) bond being traded at the value of N194,830 in 15 deals as against 1,100 units worth N123,765 recorded in 7 transactions the previous week.
A breakdown shows that 1,270 units of 15.10 per cent FGN April 2017 bond were traded in 11 deals at N136,595 while 400 units of 16,00 percent FGN June 2019 bond were exchanged in three transactions at the value of N45,485. Hundred units of 16.39 per cent FGN January 2022 bond were sold at N12,750 in one trade.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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