The Central Bank of Nigeria (CBN) has continued its intervention in the retail Secondary Market Intervention Sales (SMIS) by injecting a total of $317.52million in that segment of the market in addition to CNY58.40 million in the spot and short-tenored forwards segment.

The figures obtained from the apex Bank on Friday revealed that the US dollar-denominated interventions were only for actors in the agricultural and raw materials sectors while the Yuan was for Renminbi denominated Letters of Credit.

Confirming the figures, the CBN’s Director, Corporate Communications Department, Mr. Isaac Okorafor, said the Bilateral Currency Swap Agreement (BCSA) with the Peoples’ Bank of China had continued to receive encouraging responses from customers.

While noting that Friday’s sale was the fifth in the series of interventions, he said the BCSA was achieving its major objectives of reducing the use and influence of a third currency transactions; reducing the pressure on the naira exchange rate; easing trade transactions between Nigeria and China and maintaining financial market stability in Nigeria.

Mr. Okorafor further assured that the CBN would remain committed to ensuring that all the sectors of the foreign exchange market continue to enjoy access to the needed foreign exchange by Nigerians.

It will be recalled that the Bank on Tuesday, September 18, 2018 intervened in the inter-bank Foreign Exchange Market to the tune of $210 million.

Meanwhile, $1 exchanged for N361 at the Bureau de Change (BDC) segment of the foreign exchange market, while CNY 1 exchanged for N53.

Source News Express

The Naira, yesterday, depreciated to N363.27 per dollar in the Investors and Exporters (I&E) window even as the volume of dollars traded rose marginally by 257 percent.
 
Data from FMDQ showed that the indicative exchange rate for the window rose to N363.27 per dollar yesterday from N362.97 per dollar on Wednesday, indicating 30 kobo depreciation of the naira.
 
The volume of dollars traded on the window yesterday rose by 257 percent to $401.69 million from $112.66 million traded on Wednesday.
 
However, the naira yesterday was stable at N359 per dollar in the parallel market.
 
 
The Guardian
When he was sworn in as governor in 2015, Mr. Udom Emmanuel of Akwa Ibom State, made it clear that his election was an event of some importance. He said “the Akwa Ibom people had come together not to celebrate the triumph of a party, but to celebrate the victory of hope.”
 
He promised “to transform the economy of our state via industrialization and sustain public-private Sector initiative, thereby opening up opportunities for growth and improved living standards.” More than three years after, he has achieved what he promised especially in agricultural sector.
 
Governor Udom Emmanuel has taken a bold step to secure the future of Akwa Ibom State through agriculture in the event that oil ceases to yield as much revenue as it does today. Fortunately, Akwa Ibom state is blessed with arable land and favourable climate that supports all-year-round cultivation and extraction of agricultural and forest products such as palm produce, rubber, cocoa, rice, cassava, yam, plantain, banana, maize, and timber.
 
Through his policy in agriculture, his administration is creating food security, industrial hubs and massive job opportunities for the people of Akwa Ibom. The state is being transformed from one that is heavily dependent on federal allocations to one that generates revenue and earns foreign exchange through agriculture, a vision that Nigeria, even with all its resources still find difficult to achieve.
 
Visionary administration:
 
Udom Emmanuel’s visionary administration from the onset, declared a state of emergency in the agricultural sector, targeting food sufficiency, welfare of the people, export and economic development of the state. With prevailing high cost of living, this couldn’t have come at a better time even as pervasive poverty and hunger ravage the country. It couldn’t have come at a better time than when quality leadership is in short supply.
 
Although its rural communities are largely agrarian, relying on subsistent agriculture, their enormous potentials are now being harnessed for commercial and mechanised farming in cash crops like yam, coconut, plantain, maize, rice, tomatoes, cucumber and rubber as well as animal production, poultry and fish farming.
 
The revolution has, no doubt, taken the state by storm. For instance, the state has created an 11, 000 hectares of coconut plantation. With about two million stands of coconut already planted, the plantation is said to be the largest in the world. It will feed raw materials to the coconut refinery, and at full capacity, the refinery would process 300, 000 coconuts per day. This is a huge foreign exchange earner as virgin coconut oil is a highly priced product in the international market, selling higher than crude oil.
 
The state has also achieved 2,100 hectares of cassava plantation in 15 Local Government Areas under the FADAMA programme. To complement that, the government embarked on the construction of 33 cassava micro processing mills.
 
To take it a step further, the government embarked on refurbishment of cassava processing plants at Ikot Okudom, Eket Local Government Area, Nung Udoe, Ibesikpo/Asutan Local Government Area as well as Ikot Ekang in Abak council area. These factories were leased to private sector operators for the production of high quality garri, odourless fufu and cassava flour.
 
Under the Udom Emmanuel administration, 48,000 rice farmers have so far been registered under the Central Bank of Nigeria (CBN) Anchor Borrowers scheme. So far, over 100 hectares of rice farmland have been cultivated.
 
As a result of its commercial value, coupled with the comparative advantage Akwa Ibom State has in the production of cocoa, the Udom Emmanuel administration has so far, trained 450 youths in new methods of planting cocoa and other extension services to its farmers in the state. The state went further to establish Special Cocoa Maintenance Scheme (SCMS) for the training of farmers and youths on pruning/shade management, under brushing, and tree care by fumigation, in order to ensure the improved yields from 300 kg/hectare to 2, 000kg/hectare over a period of  three years.
 
About 500, 000 improved cocoa seedlings were raised for distribution to farmers at highly subsidised rates across the 28 cocoa producing Local Government Areas in the state.
 
In poultry business, the Akwa Prime Hatchery, located at Mbiaya, Uruan has produced and distributed about 160, 000 birds to contract farmers across the state. The Hatchery has a capacity to produce 10, 000 day-old-chicks per week. The government also embarked on distribution of improved corn seedlings to farmers; Construction of vegetable green houses and cattle ranch.
 
Under the Graduate Unemployment Youth Scheme (GUYS), no fewer than 300 youths have been trained. Each of the young graduates is to be empowered with one million naira to embark on any agricultural enterprise of their choice.
 
In order to boost mechanised farming in the state, the Udom Emmanuel administration also established a Tractor Hiring Enterprise Centre. This is aimed at making such farm equipment available and affordable to farmers.
 
To further illustrate its commitment to the revolution, the administration procured about 600, 000 bags of fertilizers for farmers in the state. In September 2016 alone, 1,000 bags of special cocoa fertilizer were imported from Ghana for optimal yield. The government also planted about 500 citrus seedlings, 600 hybrid plantain suckers and 1, 000 pineapple suckers at the Horticulture Garden in Uyo.
 
Transfer of improved technologies:
 
At Ebighi Anwa, Okobo council area of the state, the government in partnership with the Rubber Research Institute of Nigeria established a large hybrid rubber nursery for distribution to rubber farmers in the state at a highly subsidised rate. It went further to establish demonstration plots of various agricultural technologies for the transfer of improved technologies to farmers through the Akwa Ibom Agricultural Development Programme (AKADEP).
 
Furthermore, the state established three model villages for production, processing and packaging of Vitamin A products as well as partnering Word Bamboo Organisation for bamboo development in the state.
 
In animal production and husbandry, the governor has equally made remarkable progress. It is working in collaboration with Carlos Farms, a Mexican group that has interest in commercial agriculture. The firm is investing in massive commercial farming in Nigeria to develop ranches. The aim is not just cow production but also processing of cow milk for dairy companies in the country.
 
The governor’s giant strides in agriculture is largely indicative of his leadership acumen. No doubt, his versed experience in the private sector and corporate governance has been of great benefit to Akwa Ibom state. His ability to attract private investors and some times, go into Public Private Partnership (PPP) is an indication of a man who has what it takes to be in leadership position.
 

The Nigeria’s inflation rate has rebounded in August for the first time since January 2017 after recording 18 consecutive months of downward trend, according to the National Bureau of Statistics (NBS).

In the August inflation report by the statistics bureau on Friday, the nation’s Consumer Price Index (CPI), which measures inflation, rose by 0.09 percent points to 11.23 percent in August.

This implies the prices of goods and services rose at a faster rate in review month – just like June 2018 – when compared with July 2018.

The headline inflation had been on steady decline from 18.72 percent since January 2017 to 11.14 percent in July 2018, this was after it fell to 18.55 percent in December 2016.

In spite of the persistent decline during the period, the macroeconomic variable remained above the Central Bank of Nigeria’s (CBN) acceptable band of 6 percent to 9 percent.

The CPI measures the composite changes in the prices of consumer goods and services, such as food, transportation, and medical care, purchased by households, over a period.

The NBS said food inflation also surged to 13.16 percent YoY in August up from 12.85 percent recorded in previous month, while core inflation, which excludes agricultural produce, dropped from 10.2 percent in July to 10.0 percent in August.

The CBN had expressed fear over the possibility of a rebound in the macroeconomic indicator in the second half of 2018 as a result of increased spending ahead of the 2019 general elections.

In August, the CBN said it may consider raising its key lending rate for the first time in two years if the inflation rate worsens.

The Monetary Policy Committee (MPC) of the CBN in its July meeting had retained the Monetary Policy Rate (MPR) at record-high of 14 percent for the 11th consecutive time since 2016 to monitor the magnitude of the liquidity impact of the fiscal injection and election related expenditure.

 

The Ripples.

Following declines in the value of shares of Nestle Nigeria, Guaranty Trust Bank, Zenith Bank and other highly capitalized stocks, the trading activity on the floor of the Nigeria Stock Exchange (NSE) on Monday closed in red to start the week.

The bearishness recorded at the market was as a result of persisted sell pressures on the local bourse, dragging the key performance indicator of the NSE, the All-Share Index (ASI), down by 1.25 percent to close at 34,037.91 points, and plunging the year-to-date loss of the ASI to -12.16 percent.

After the close of business, equities investors lost a total of N155.60 billion in value as market capitalization of all listed stocks, which opened at N12.27 trillion, dropped to N12.43 trillion.

Consequently, the total volume and value of transactions dipped by 11.75 percent and 35.53 percent from 155.95 million shares and N2.1 billion to 137.63 million shares and N1.36 billion, respectively.

Performance across sectors was also bearish, as indices of all major sectors headed to the south. The NSE Consumer Goods index led the sector decliners, falling by 3.69 percent as investors sold off Nestle Nigeria, which dropped by 9.7 percent, and Nigerian Breweries shedding 0.4 percent.

NSE Insurance index trailed with 2.09 percent depreciation on the back of sell-offs in NEM Insurance and Continental Reinsurance, while NSE Banking index dropped by 1.25 percent, driven by sell pressures in Guaranty Trust Bank, Zenith Bank and Access Bank, which fell by 1.4 percent, 1.9 percent and 1.7 percent, respectively.

Similarly, Forte Oil, which shed 9.3 percent, pulled the NSE Oil & Gas index down by 0.52 percent, while NSE Industrial Goods index closed flat amid profit taking activity on Cutix, dropping 0.25 percent of its share value.

Nestle Nigeria led the laggards chart, depreciating by 9.67 percent to close at N1,355 per share. Global Spectrum Energy Services followed by shedding 9.45 percent to close N5.75 per share, while Forte Oil dropped 9.29 percent to close at N19.05 per share.

Regency Alliance Insurance Company lost 8.70 percent to close at 21 Kobo per share, while Japaul Oil fell by 7.69 percent to close at 24 Kobo per share.

On the flip side, Sunu Assurances Nigeria emerged the top gainer with10 percent to close at 22 Kobo per share. Union Diagnostic & Clinical Services trailed by gaining 7.41 percent to close at 29 kobo, while Honeywell Flour garnered 5.56 percent to close at N1.52 per share.

University Press gained 4.17 percent to close at N2 per share, while Mutual Benefits Assurance rose by 3.70 percent to close at 28 Kobo per share.

Guaranty Trust Bank was the most traded stock in value after recording 29 percent of the total investment turnover, reaching 11.25 million volumes of shares valued at N390.94 million.

Nigerian Breweries, which accounted for 26 percent of the total return, traded a total volume of 2.36 million worth N218.80 million, while Zenith Bank sold 6.64 million volume of shares at N136.60 million.

United Bank for Africa traded 16.66 million shares valued at N130.87 million, while Nestle Nigeria transacted 87,930 shares worth N119.77 million.

Analysts at Afrinvest Securities said the market performance reflects investors’ bearish outlook on the market as political risks remain heightened and in addition to continued absence of positive drivers.

In spite of the negative performance, the analysts remained optimistic that some bargain hunting would drive performance in the near term.

 

Vanguard

The free fall of equities persisted on the Nigerian Stock Exchange (NSE) in the month of August with investors net worth depreciating further by 5.86 per cent.
 
Data obtained from the exchange showed that the All-Share Index during the period shed 2,169.33 points or 5.86 per cent to close at 34,848.45 against 37,017.78 in July.
 
Also, the market capitalisation, in spite of the listing of Notore Chemical Industries, lost N687 billion or 5.12 per cent to close at N12.722 trillion compared with N13.409 trillion achieved in July.
 
Speaking on the market performance, Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, said the capital market performed poorly in the month of August.
 
Tella said the poor performance was caused by both local and international activities.
 
“Locally, the economy was not performing due to late budget passage and late implementation in an economy that is public sector driven.
 
“On the international scene, there were large capital outflow from the markets as foreign investors were moving money out for investment elsewhere,” Tella said.
 
He said the implementation of the budget in this quarter would likely assist in stabilising the market.
 
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. attributed the poor performance to the political environment ahead of the next year’s general elections in the midst of dwindling macro- economic indices.
 
All share index-Aug
 
Omordion said the delayed implementation of the 2018 budget impacted negatively on the capital market and the economy in general.
 
He said the volatility experienced so far in the second half of the year was a reflection of the negative factors against the market, amidst capital flight.
 
According to him, the exit of foreign investors resulted to dwindling foreign reserve.
 
Omordion urged investors and analysts to interpret the recent scorecards from first-tier banking stocks and other stocks to reposition their portfolios ahead of third quarter.
 
He advised the Federal Government to evolve policies that would drive recovery and influence the market positively.
 
An analysis of the price movement table during the period showed that Ikeja Hotel emerged the worst performing stock in percentage terms.
 
The stock during the period lost 27.48 per cent to close at N2.27 per share against N3.13 achieved in July.
 
Other top losers’ were Law Union and Rock Insurance, GSK, Skye Bank, Forte Oil, Royal Exchange, Universal Insurance, CAP, Continental Reinsurance and Berger Paints.
 
Market Capitalisation for August
 
Conversely, Niger Insurance was the best performing stock in percentage terms with a growth of 69.23 per cent to close at 44k against 26k in July.
 
It was trailed by Portland Paints, Newest ASL, Neimeth Pharmaceuticals, AIICO Insurance, NEM Insurance, Eterna Oil, Hallmark Insurance, Transcorp and May & Baker.
 
A turnover of 5.40 billion shares valued at N66.92 billion were exchanged by investors in 68,906 deals during the period under review.
 
This represented a decrease of 19.52 per cent compared with a turnover of 6.71 billion shares worth N 73. 04 billion transacted in 84,963 deals in July.
 
An analysis of the activity chart indicated that the Financial Services Sector emerged the most active with an exchange 2.52 billion shares, valued N19.38 billion in 21,121 deals.
 
It was trailed by the Services Sector with 209.97 million shares worth N1.31 billion in 2,157 deals.
Consumer Goods sector came third with a turnover of 258.95 million shares valued at N14.02 billion in 11,252 deals.
 
 
Source: Vanguard

The Nigerian Stock Exchange (NSE) is now ranked the worst performing equities market in the African continent as the Year-to-Date (YTD) return of the All-Share Index (ASI) worsened.

The YTD return is the amount of profit generated by an investment since the beginning of the current calendar year.

The latest development was occasioned by rising uncertainties in the Nigerian economy and the recent political developments in the country which undermined investors’ sentiments.

According to the weekly pan-African stock market monitor by a Lagos-based investment house, United Capital Plc., the NSE was the worst performing stock market in Africa having recorded a YTD return of -11.3 percent as at September 3, 2018.

The Nigerian bourse was trailed by the Regional Securities Exchange (BRVM) to emerge the second worst performing stock market in the continent after recording a YTD return of -11.1 percent.

The BRVM, which covers francophone nations in the West African sub-region like Benin, Guinea Bissau, Mali, Togo, Niger, Cote d’lvoire, Burkina Faso and Senegal, offers stock trading services from its headquarters in Abidjan, while its market offices are maintained in each country.

In 2017, the NSE was ranked among the top performing stock markets in Africa, and the exchange was ranked among the five top performers in the year after Argentina, Turkey, Hong Kong and the United States, according to S&P Dow Jones Indices. The NSE-ASI grew by 42.30 percent year-on-year in 2017.

Analysts at United Capital listed Morocco Stock Exchange as the third performing capital market with -7.1 percent YTD return.

The YTD return of the Kenya’s stock market, Nairobi Securities Exchange, dropped to -2.1 percent to emerged the fourth performing bourse in the continent, while South Africa’s stock market, Johannesburg Stock Exchange (JSE), went southwards to -1.3 percent.

Conversely, the Tunis Stock Exchange (TSE) led other exchanges in the continent as its ASI rose by 33.4 percent from the beginning of the year, while Zimbabwe Stock Exchange (ZSE) and Ghana Stock Exchange (GSE) trailed with YTD returns of 21.8 percent and 7.9 percent, respectively.

Analysts at Cordros Capital advised investors in Nigeria’s stock market to trade cautiously in the short to medium term, noting that selloffs were likely to persists.

The analysts attributed the poor performance at the NSE to negative sentiments of investors, particularly the foreign portfolio investors, as a result of “contagion effect of emerging market selloffs and political concerns ahead of the 2019 elections.”

  

Source: The Ripples

The Statistician-General of the National Bureau of Statistics (NBS), Yemi Kale, said the Nigerian economy could be regarded as a diversified economy based on the Q2 2018 Gross Domestic Product (GDP) figures released recently.

Kale made this disclosure while answering questions on the effectiveness of the Federal Government’s diversification policy in a tweet chat on Thursday.

The NBS boss said the services sector grew by over 50 percent in the second quarter of the year, adding that the performance was the first since the 2016 economic recession.

According to him, the 1.50 percent real GDP growth recorded in Q2 was largely driven by the services sector.

“The best assessment of any plan or policy of government is to look at the underlying statistics. If you look at the GDP numbers for Q2 2018 published early this week by our Office, you will observe that the economy is quite diversified.

“The services sector accounts for over 50% of our economy, and for the first time since the recession, the services sector posted positive numbers and was mainly responsible for the growth recorded during the quarter,” Kale said.

He, however, said the benefits of diversified growth would become more evident and impacting on the citizenry if the government could provide incentives to support domestic production and stimulate consumption.

The NBS had released the GDP report for Q2 2018 on Monday, the report noted that the rate at which the Nigerian economy grew in the quarter slowed to 1.50 percent when compare with 1.95 percent recorded in the previous quarter.

Despite the sluggish growth, the non-oil sector of the economy grew by 2.05 percent from 0.76 percent in Q1 2018, while the oil sector contracted by -3.95 percent from 14.77 percent in Q1 2018.

The Minister of Budget and National Planning, Sen. Udoma Undo Udoma, had said the growth in the non-oil sector was an evidence that the implementation of the targeted policies and programs of the Economic Recovery and Growth Plan (ERGP) by the Federal Government was yielding positive results.

The ERGP is a four-year medium term strategic blueprint of the Federal Government aimed at diversifying the economy away from dependence on the oil and gas sector.

The plan covers 2017 to 2020 and focuses on human capital investment, restoration of economic growth, and building a competitive economy.

The Ripples

The Naira on Wednesday gained 30 kobo to exchange at N359 to the dollar at the parallel market in Lagos, against N359.30 on Tuesday.
 
The Pound Sterling and the Euro closed at N464 and N414, respectively. At the Bureau De Change (BDC) window, the naira traded at N360 to the dollar, while the Pound sterling and the Euro closed at N464 and N414, respectively.
 
Trading at the investors’ window saw the naira close at N363.06, while it exchanged at N361.10 at the official CBN window.
 
Meanwhile, the CBN had continued to boost liquidity at the forex market with the injection of 210 million dollars on Tuesday.
 
 
 
The Guardian...
The Nigerian Bureau of Statistics (NBS) has reported that for the first time since Nigeria’s exit from recession, the Gross Domestic Product (GDP) has recorded growth.
 
Driven by the non-oil sector, GDP which grew by 2.05 per cent in the second quarters of 2018 represented the strongest growth in non-oil GDP since fourth quarter of 2015.
 
“Non-oil GDP growth was -0.18% in Q1 2016, -0.38% in Q2 2016, 0.03% in Q3 2016, -0.33% in Q4 2016, 0.72% in Q1 2017, 0.45% in Q2 2017, -0.76% in Q3 2017, 1.45% in Q4 2017and 0.76% Q1 2018.
 
“GDP grew strongly in Q2 2018 by 2.05%. Non-oil growth was driven by transportation which grew by 21.76% supported by growth in construction which grew by 7.66% and electricity which grew by 7.59%.
 
“Other non-oil sectors that drove growth in Q2 2018 include telecommunication which grew by 11.51%, water supply and sewage which grew by 11.98% and broadcasting which grew by 21.92%.’’
 
The non-oil sector performance was however constrained by agriculture that grew by 1.3% compared to 3.00% in Q1 2018 and 3.01% in Q2 2017.
 
Q2 2018 GDP growth was also constrained by oil GDP with crude oil and gas production contracting by -3.95% compared to 14.77% in Q1 2018 and 3.53% in Q2 2017
 
Services GDP recorded its best performance in 9 quarters, growing by 2.12% in Q2 2018 compared to -0.47% in Q1 2018 and -0.85% in Q2 2017.
 
Statistician General and Chief Executive Officer of National Bureau of Statistics (NBS), Dr. Yemi Kale, last week denied reports quoting that Nigerian economy had yet to recover from recession.
 
Kale categorically said that Nigeria was out of recession and that at no time did he suggest otherwise.
 
His denial was contained in a statement released on Monday by the Bureau’s Public Relations Officer, Mr. J. Ichedi.
 
NBS said that it reported in the second quarter of 2017 that the country was out of recession as the country recorded the first positive growth in Gross Domestic Product (GDP) following five quarters of contradiction.
 
He said that economic growth as measured by GDP has remained positive ever since with 0.72% in second quarter of 2017; 1.17% in third quarter of 2017; 2.11% in fourth quarter; and 1.95% in first quarter of 2018.
 
Ichedi said that NBS had continued to explain that there would be economic recovery after the recession.
 
The economic after recession moves gradually towards sustainable strong growth which “is the stage we are now’’.
 
This is the position which the CEO told Arise Television in an interview, he said.
 
The CEO, he said, told the television that the economy was in the second state of recovery and heading toward sustainable growth which is the last stage’’.
 
“This should not be wrongly interpreted as the economy is still in recession,’’ Ichedi said.
 
According to a report by a local newspaper on Monday, the Statistician-General was quoted to have lamented the performance of the nation’s economy in the second quarter of the year.
 
 
Source: NAN

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