- Board approves N4.4bn dividend for 2024 as group reports N23.6bn profit
The Nigerian equities market was broadly bearish in the last week of February, closing lower in three out of the five sessions.
Analysts say the poor performance was investors’ reaction to the rebased inflation data released by the National Bureau of Statistics which reduced the country’s inflation figures lower-than-expected in some quarters.
A market analyst attributed the decline to response to the new inflation figures said to have triggered sell-off in banking stocks alongside other blue-chip stocks.
Precisely, sell pressure on ETI and GTCO which to their share price losing 12.4 percent and 2.9 percent respectively weighted on the market performance driving in the NGX All-Share Index lower week-on-week (w/w) by 0.62 percent to close at 107,821 points as against 108,053.95 points reported the previous week.
Consequently, the Market Capitalization declined to N67.193 trillion from N67.418 trillion as investors lost N421 billion in the week under review. Although, the month to date and year to date rates remained positive but they equally moderated to 3.2 percent and 4.8 percent respectively.
Similarly, all other indices finished lower with the exception of NGX AseM, NGX Oil and Gas, NGX Lotus II, NGX Sovereign Bond, and NGX Commodity which appreciated by 0.04 percent, 0.60 percent, 0.33 percent, 0.81 percent and 0.53 percent respectively.
Twenty-seven (27) equities appreciated in price during the week, lower than twenty-eight (28) equities in the previous week. Sixty (60) equities depreciated in price, higher than fifty-eight (58) in the previous week, while sixty-three (63) equities remained unchanged, lower than sixty-four (64) recorded in the previous week.
A total turnover of 1.848 billion shares worth N51.387 billion in 63,090 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 2.001 billion shares valued at N49.486 billion that exchanged hands last week in 70,853 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.296billion shares valued at N26.914 billion traded in 29,140 deals; thus contributing 70.13 percent and 52.38 percent to the total equity turnover and value respectively. The Service Industry followed with 129.443 million shares worth N719.218 million in 3,657 deals. Third place was the Consumer Goods Industry, with a turnover of 116.696 million shares worth N4.185 billion in 7,452 deals.
Trading in the top three equities namely Zenith Bank Plc, FCMB Group Plc and Access Holdings Plc (measured by volume) accounted for 539.768 million shares worth N16.528 billion in 7,392 deals, contributing 29.21 percent and 32.16 percent to the total equity turnover volume and value respectively.
A total of 346,089 units valued at N351.766 million were traded this week in 34 deals compared with a total of 231,313 units valued at N253.012 million transacted last week in 29 deals.
A total of 42,786 units valued at N16.133 million were traded this week in 81 deals compared with a total of 69,731 units valued at N4.711 million transacted last week in 103 deals.
Forecasting the expected market’s performance for the new week, a financial analyst, Tayo Adeleke said, he expects cautious trading, with market sentiment likely to be influenced by ongoing corporate earnings releases and dividend announcements.
NGX Board approves N4.4bn dividend for 2024 as group reports N23.6bn profit
The Board of Directors of the Nigerian Exchange Group has approved the sum of N4.4 billion dividend to shareholders as reward for their investment in the company for the financial year ended December 31, 2024.
The proposed dividend payout which is expected to be upheld by shareholders at the company’s annual general meeting to be held later was announced by the NGX Group Chairman, Umaru Kwairanga on Friday while presenting the group’s audited financial results in Lagos.
According to Kwairanga the Exchange delivered a profit before tax of N13.6 billion in the year under review, translating to 157.3 percent year-on year growth.
According to the Group Chairman, the performance was driven by robust revenue expansion, strategic cost optimization, and increased market participation, reflecting the Group’s resilience and financial strength.
Similarly, the Group’s gross earnings surged by 103.2 percent to N24.0 billion in 2024, up from N11.8 billion in the previous year, propelled by significant growth across key revenue streams.
A breakdown of the result shows that transaction fees rose 64.0 percent, driven by heightened market activity. Listing fees increased by 397.1 percent, reflecting stronger capital market participation.
Technology related income grew by 105 percent, reflecting the success of the group’s digital transformation efforts; while other fees recorded a 174.8 percent growth, reinforcing the Group’s diversified revenue base.
Income from Treasury investment appreciated by 45.6 percent, highlighting NGX Group’s effective asset management. Even as revenue from the sales of Market data grew by 100.5 percent, contributing to a 102.6 percent rise in other income, which now accounts for 29.6 percent of gross earnings.
Commenting on the dividend proposal, Kwairanga said the Board of Directors has approved a final dividend of N4.4 billion, translating to N2.00 per share, the highest dividend payout in the Group’s history.
“This decision reaffirms NGX Group’s commitment to delivering value to shareholders while maintaining a strong capital position,” he said.
Speaking further, he said, “These results mark a pivotal moment in NGX Group’s post-demutualisation growth journey, reinforcing investor confidence in our long-term vision.
“This decision reaffirms NGX Group’s commitment to delivering value to shareholders while maintaining a strong capital position.
“The NGX Group under my leadership is focused on harnessing the entrepreneurial and innovative spirit of Nigeria’s private sector to drive the economy to greater heights.”
Also speaking, the Group Managing Director/Chief Executive Officer, Temi Popoola, said, “NGX Group’s remarkable performance in 2024 reflects our strategic focus on execution, operational excellence, and innovation. The 157.3% increase in profit before tax underscores the strength of our execution strategy and the dedication of our team. By leveraging technology, expanding market data solutions, and strengthening our partnerships, we have built a more resilient and diversified business model that positions us for sustained growth.
“Looking ahead, we remain committed to deepening market participation, broadening investment opportunities, and driving efficiency across the capital market ecosystem. We will continue investing in innovation, enhancing market infrastructure, and developing new platforms that improve accessibility and attract a wider range of investors. Through these efforts, we are shaping NGX Group into a leading force in Africa’s financial landscape, delivering sustainable value for all stakeholders.”
