Securities dealers decry suspension of dividend payments by CBN

Mr Sam Onukwue, Chairman of ASHON in a statement on Tuesday, said that the directive, issued June 13, was said to ensure compliance with regulatory forbearance and Single Obligor Limit requirements.

According to him, the timing of the directive is inopportune, given the ongoing efforts by banks to meet the increased minimum capital requirement which is regulatory-induced.

“The announcement of this price-sensitive information has caused shock and dismay due to its potential impact on shareholders and the stock market.

“The indefinite suspension may erode investor confidence in the banking sector, potentially triggering a sell-off of bank shares on the Nigeria Exchange Limited (NGX), where the sector dominates daily transactions.

“ASHON suggests that the CBN could have managed this situation more discreetly to avoid speculation and market volatility.

“Unless an alternative solution is found, this directive may hinder banks’ capital-raising efforts, particularly those yet to commence their capital raise before the deadline,” he said.

Meanwhile, the stock market opened the week on a negative note on Monday, with key performance indicators dropping by 0.15 per cent.

The market capitalisation dropped by N108 billion, or 0.15 per cent, closing at N72.680 trillion, down from N72.788 trillion recorded on Friday.

Also, the All-Share Index shed 170.77 points or 0.15 per cent, closing at 115,258.77 from the previous close of 115,429.54.

The downward trend was driven by profit-taking among investors.

Similarly, the market breadth closed negative with 43 losers and 21 gainers.

Northern Nigeria Flour Mills led the losers’ chart dropping by 10 per cent, closing at N101.30 while Cileasing fell by 9.68 per cent, finishing at N4.20 per share.

University Press shed by 9.27 per cent, ending the session at N4.99 and Deap Capital Management declined by 8.99 per cent, settling at 81k per share.

Also, Learn Africa lost by 8.43 per cent, closing at N3.80 per share.

On the gainers’ chart, Guinea Insurance increased by 10 per cent, settling at 77k while Ellah Lakes gained by 9.93 per cent, ending the session at N4.76 per share.

Legend Internet soared by 9.87 per cent, closing at N7.79 and Royal Exchange climbed by 9.68 per cent, finishing at N1.02 per share.

Fidson Health rose by 9.64 per cent, closing at N42.10 per share.

A total of 721.75 million shares worth N22.01 billion were exchanged across 22,100 transactions.

This is compared to 933.26 million shares worth N17.95 billion were traded across 20,500 deals.

Access Corporation led the activity chart with 92.70 million shares, worth N1.90 billion.

United Bank for Africa followed with 91.36 million shares valued at N3.09 billion while Zenith Bank sold 76.84 million worth N3.56 billion.

Fidelity Bank traded 49.99 million shares, valued at N883.99 million and Guaranty Trust Holding Company transacted 40.46 million shares worth N2.85 billion.

 

NAN