Market capitalization at the Nigerian Stock Exchange (NSE) dropped by N100.2 billion on Thursday as stocks of banks and industrial companies listed on the Exchange recorded losses.
 
The market capitalization which opened on Thursday after a two-day break at N11.676 trillion, closed at N11.576 trillion, a difference of N100.2 billion, while the All Share Index dropped by 0.9 per cent to 31,692.63 basis points, and the year-to-date loss worsened to -17.1 per cent.
 
Analysts are of the opinion that the negative market performance was dragged by losses recorded in FBN Holdings Plc, Dangote Cement Plc and Access Bank Plc.
 
Activity level at the exchange fell as volume and value declined by 36.7 per cent and 49.8 per cent to 452.260 million units and N2.608bn, respectively.
 
The top traded stocks by volume were Medview Airline Plc (146.9 million units), NEM Insurance Plc (45.9million units) and Transcorp Hotels Plc (37.5 million units), while Zenith Bank Plc (N646.2m), Guaranty Trust Bank Plc (N345.6m) and MEDVIEW AIRline (293.9m) were the top traded stocks by value.
 
The losses not withstanding, performance across sectors was largely positive as three of five indices closed higher.
 
The Oil & Gas index yielded the most, with a 1.3 per cent gain due to price appreciations recorded in Forte Oil Plc and Conoil Plc while the Banking index gained 0.2 per cent on the back of price appreciations in Diamond Bank Plc, First City Monument Bank Plc and GTB.
 
The Consumer Goods index increased by 0.04 per cent as a result of the gains recorded in Nigerian Breweries Plc and Nascon Allied Industries Plc.
 
However, sell pressures in Dangote Cement, NEM Insurance and Niger Insurance dragged the industrial and insurance indices lower by 2.11 per cent and 0.69 per cent, respectively.
 
Investor sentiment strengthened as market breadth declined to 1.9x against 7.2x in the previous session, which was as a result of the 30 gainers that emerged against 16 decliners at the end of trading on Thursday.
 
The top performers were NPF Microfinance Bank Plc, Mutual Benefits Assurance Plc and Conoil Plc, whose respective share prices gained 10 per cent, 10 per cent and 10 per cent.
 
The top losers were UACN Property Development Company Plc, NEM Insurance and Niger Insurance, which saw their share prices decline by10 per cent, 9.2 per cent and 8.3 per cent, respectively.
 
 
Source: The Ripples
The Federal Government of Nigeria has said it is targeting increasing manufacturing exports by $30 billion by 2025 through the development of Special Economic Zones.
 
This was disclosed by the Ministry of Industry, Trade and Investment in a statement.
 
According to the ministry, special economic zones had been identified by the Economic Recovery and Growth Plan as a major strategic tool to accelerate the implementation of the Nigeria Industrial Revolution Plan.
 
The ministry further explained that in achieving this, government envisioned the Made-in-Nigeria for Exports project and the Nigeria Export Processing Zone Authority to develop economic zones to world-class standards.
 
According to the statement, this would assist in positioning Nigeria as the manufacturing hub in sub-Saharan Africa and a major exporter of made-in-Nigeria goods and services.
 
“The project seeks to aid structural transformation of the Nigerian economy by increasing the manufacturing sector’s contribution to Gross Domestic Product to 20 per cent by 2025; contribute to sustainable inclusive growth by creating 1.5 million new manufacturing jobs in the initial phase of the project; increase and diversify foreign exchange earnings by increasing manufacturing sector exports to at least $30bn annually by 2025″ the ministry said.
 
The ministry further said that the project would start with a phase one that would focus on the development and upgrade of SEZs in 12 states across Nigeria, after which the initiative would be extended to other states in subsequent phases.
 
The project would also involve partnering with the private sector to develop new world-class SEZs in Abia, Katsina and Lagos as pilot projects to demonstrate proof of concept and provide models for future SEZ development in Nigeria.
 
The statement said the Nigeria SEZ Investment Company Limited had already been set up as the special purpose vehicle to deliver the Made-in-Nigeria for Export project and harness the Federal Government spending on SEZs.
 
“The Federal Executive Council has approved NSEZCO as the holding entity for all the Federal Government’s investments and proprietary interests in existing and future SEZs.
 
“The FEC approval also provided that all current and future capital appropriations for Project MINE be transferred to NSEZCO’s account, as soon as opening formalities are completed,” it added.
 
According to the statement, aggregation and harnessing of the Federal Government’s investment in a strong corporate special purpose vehicle “is to ensure the facilitation and mobilisation of additional capital from development finance institutions and private investors.”
 
 
Source: Business Insider
Foreign Portfolio Investors (FPI) withdrew more than N94.4 billion in the third quarter of 2018 from the capital market, a member of the Central Bank of Nigeria Monetary Policy Committee, Mr. Robert Asogwa has confirmed.
 
Asogwa gave the confirmation in his personal statement at the recent MPC meeting, according to a data posted on CBN website.
 
According to him, capital inflows declined consistently especially since 2018, while outflows have more than doubled during this same period, a situation that has made external financing more challenging for Nigeria.
 
Asogwa said: “There have been sharp declines in inflows, especially for portfolio investments and Foreign Direct Investment (FDI).
 
“Between July and September 2018, foreign portfolio investors withdrew more than N94. 4 billion from the Nigerian Stock market alone.
 
“These movements have been attributed to the monetary policy normalisation process in some advanced economies, which has seen interest rates in places like the USA increased for three times in 2018.”
 
Asogwa also pointed at investors fear over the 2019 general elections as another contributing factor.
 
He pointed out that given that monetary policy forecasts for 2019 in many advanced economies suggests policy rate increases, “the capital flow position in Nigeria may possibly worsen in the near future.”
 
Asogwa said the US Federal Funds rate had been anticipated to reach 3.5 per cent by end of 2019, while the prevailing zero rates in the Euro Areas was expected to move a bit higher by mid-2019.
 
Asogwa further said in the statement that the return of frequent volatility in the oil market was already putting pressure on commodity exporting countries like Nigeria, adding that there are still expectations that prices may drop further in the early months of 2019.
 
He said: “CBN staff report shows that the NPL ratio, which has risen to 14.70 per cent in August 2018 had declined to 14.05 per cent in October which signals improvement even though it is still above the allowed prudential maximum thus requiring comprehensive NPL reduction strategies from the banks and the regulators.
 
“In addition, the modest improvement in the Capital Adequacy Ratio (CAR) and the Profitability Indicators (ROE and ROA) in October as compared to August shows that the financial sector weaknesses which was a key concern at the last MPC meeting of September are partly being halted.”
 
 
Source: The Ripples
Market capitalization on the Nigeria Stock Exchange shed N39.89bn on Wednesday as the gains recorded in the previous session were pared.
 
The market capitalisation, which stood at N11.255tn on Tuesday, dropped to N11.215tn on Wednesday, while the All Share Index declined by 0.35 per cent to settle at 30,704.98 basis points.
 
Major benchmarks closed in the red at the end of trading on the floor of the Exchange on Wednesday.
 
The NSE Oil/Gas Index slid by 2.99 per cent, emerging the biggest loser as sinking oil prices hit energy companies.
 
Sell pressures were witnessed in Seplat Petroleum Development Company Plc and Total Nigeria Plc.
 
The NSE Industrial Index was the second biggest loser, with a 1.14 per cent loss due to sell-offs in Dangote Cement Plc.
 
Similarly, the NSE Banking Index depreciated by 0.21 per cent on the back of major losses witnessed in Guaranty Trust Bank Plc and Zenith Bank Plc.
 
The NSE Consumer Goods Index was however the highest gainer, with a 1.18 per cent gain as major stocks such as Nestlé Nigeria Plc and Nigerian Breweries Plc recorded price appreciation.
 
The NSE Insurance Index trailed, gaining a meagre 0.23 per cent on the back of gains recorded in Lasaco Assurance Plc and Wapic Insurance Plc.
 
The volume and value traded weakened by 36.4 per cent and 19.5 per cent to 200.997 million units and N4.098bn, respectively.
 
Top traded stocks by volume were Zenith Bank (51.895 million units), Lafarge Africa Plc (38.652 million units) and FBN Holdings Plc (15.852 million units), while Zenith Bank (N1.2bn), Dangote Cement (N502.7m) and Lafarge Africa (N457.3m) were the top traded stocks by value.
 
Investor sentiment took a further dip to 1.3x from 1.8x recorded on Tuesday as the year-to-date loss dipped to -19.7 per cent.
 
There were twenty-three gainers and 18 lossers at the end of trading on Wednesday.
 
Forte Oil, which was the second highest gainer on Tuesday, advanced to top the list as the highest gainer on Wednesday, with a 9.85 per cent increase to N26.20 per share.
 
Diamond Bank Plc’s share price appreciated further, gaining 9.65 per cent as it closed at N1.25.
 
Access Bank Plc reversed the losses it made on Tuesday as it emerged the 12th highest gainer, with a 2.60 per cent increase to close at N7.90 per share.
 
Five other banks ― Unity Bank Plc, Wema Bank Plc, United Bank for Africa Plc, FBN Holdings Plc and Stanbic IBTC Holdings Plc ― were on the gainers’ list, despite the 0.21 per cent decline recorded in the banking index.
 
Abbey Mortgage Bank Plc was the biggest loser, with a 7.55 per cent share price depreciation.
 
Abbey Mortgage Bank, Seplat, Jaiz Bank Plc, Japaul Oil & Maritime Services Plc and Julius Berger Nigeria Plc, were the top five losers.
 
They recorded price depreciation of 7.55 per cent, 6.53 per cent, 6.12 per cent, 4.76 per cent and 4.29 per cent.
 
 
Source: The Ripples
Nigeria’s 2019 Budget may face hiccups as the current crude oil prices in the international market has fallen below the Budget benchmark.
 
On Monday, crude oil price dropped from $66.00 to $57.00 per barrel in the international market, indicating $3.00 below the $60 benchmark of the 2019 budget.
 
The price of Brent fell by as much as 4 per cent, hitting a low of $57.20 a barrel, in its third straight day of decline, while West Texas Intermediate, the US benchmark, weakened as much as 4.1 per cent to $47.84, the lowest level since September 2017.
 
Similarly, the price of Organisation of Petroleum Exporting Countries, OPEC, basket of 15 crudes stood at $58.24 a barrel, compared with $59.07 the previous Friday, according to OPEC Secretariat calculations.
 
According to reports, the situation was not anticipated as stakeholders, who rose from the recent 5th OPEC and non-OPEC Ministerial Meeting, were optimistic that stability would be achieved in the global market.
 
OPEC stated in a statement after its meeting in Vienna: “Following deliberations on the immediate oil market prospects and in view of a growing imbalance between global oil supply and demand in 2019, hereby decided to adjust the overall production by 1.2 mb/d, effective as of January 2019 for an initial period of six months.
 
“The contributions from OPEC and the voluntary contributions from non-OPEC participating countries of the ‘Declaration of Cooperation’ will correspond to 0.8 mb/d (2.5%), and 0.4 mb/d (2.0%), respectively.”
 
However, the current situation was said to have been fuelled by weaker oil demand amid over-supply from producing nations, currently not involved in OPEC and Non-OPEC accord.
 
 
Source: NAN
Figures released by the Central Bank of Nigeria (CBN) have shown that Nigeria’s foreign reserves rose by $1.518bn from $41.523bn on November 22 to $43.041bn as of December 17.
 
The reserves, which had suffered major declines in past months, had been maintaining a steady rise of recent.
 
The nation’s foreign exchange reserves fell from $45.838bn at the end of August to $41.533bn on November 21.
 
The CBN had earlier revealed that the reserves fell by $990.98m from $47.11bn in July to $46.128bn on August 23, 2018.
 
Records from the apex bank however showed that the external reserves were gradually moving on a recovery path.
 
CBN Governor, Godwin Emefiele, had said before that because crude oil was a major source of the country’s foreign exchange, the nation’s economy became sensitive to fluctuations in the price of crude oil.
 
“Significant declines in the price of crude oil not only reduced Nigeria’s export earnings, but the nation was also subjected to higher inflation and lower growth, given our dependence on imported goods,” Emefiele had said.
 
 
Source: Punch News
A report by the Central Bank of Nigeria (CBN) has shown that Nigeria recorded $4.54 billion in deficit in the provisional Balance of Payments estimates for Q3, 2018.
 
The figure showed a significant downturn in the country’s position when compared to surpluses of $503m and $2.78bn recorded in the preceding quarter and the corresponding period of 2017, respectively.
 
The balance of payment is a summary of all monetary transactions between a country and the rest of the world. These transactions are made by individuals, firms and government bodies.
 
The CBN third quarter 2018 brief on balance of payment statistics released on Friday, also showed that Current Account Balance also worsened from a surplus of $4.45bn in Q2, 2018 to a deficit of $3.1bn in Q3 2018.
 
The financial account balance indicated an increased net incurrence of financial liabilities of $10.72bn in the review period as against $2.57bn recorded in the preceding period.
 
The CBN brief also noted that the current account indicated a negative outcome during the review period, recording a deficit of $3.10bn as against surpluses of $4.45bn and $1.97bn in the previous quarter and the corresponding period of 2017, respectively.
 
This, the brief said is because of increased payment for imports.
 
Export earnings rose by 2.8 per cent to $16.21bn in Q3, 2018 when compared with Q2, 2018.
 
The brief also showed that crude oil and gas dominated export arnings, accounting for 94.4 percent for the review, increasing by 9.5 per cent to $15.301bn in Q3, 2018, when compared with the preceding quarter.
 
Earnings from non-oil and electricity exports decreased by 49.3 per cent to $909m in Q3, 2018 when compared with the preceding quarter.
 
Available data showed that payments for the import of goods (fob) to the economy in the review period increased by 70.5 per cent to $14.085bn above the level recorded in the preceding quarter.
 
This was largely as a result of 79.7 per cent increase in the imports of non-oil products.
 
Direct Investments inflow increased by 0.7 per cent to $438.84m when compared with the preceding quarter of 2018.
 
It, however, indicated a decline of 45.0 per cent when compared to the corresponding period of 2017.
 
Similarly, portfolio investments inflow to the economy decreased significantly to $1.79bn in Q3, 2018 from $4.233bn and $3.320bn in the preceding quarter and the corresponding period of 2017, respectively.
 
The brief also showed that other investment liabilities increased slightly to $4.28bn when compared with $3.226bn recorded in the preceding quarter.
 
The stock of external reserves as of the end of September 2018 stood at $42.60bn indicating a depletion of 9.6 per cent when compared with the level in the preceding quarter.
 
 
Source: The Ripples
The inflow of investment into Nigeria declined by $2.66 billion between the second and third quarter of this year, figures released by the National Bureau of Statistics (NBS) have shown.
 
According to the NBS capital importation report for the third quarter of this year posted on its website on Tuesday, the amount of investment the economy attracted in the third quarter was $2.85 billion, representing a decline of 48.21 per cent over the $5.51bn which the economy attracted during the second quarter of this year.
 
According to the report, when compared to the third quarter period of 2017, the $2.85bn investment for the economy in the third quarter of this year represents a decline of 31.12 per cent.
 
The report further puts the overall investment the economy attracted in the first nine months of 2018 at about $14.66 billion.
 
A breakdown of the $14.66 billion showed that the sum of $6.3 billion was attracted in the first quarter while the second and third quarters each attracted $5.51 billion and $2.85 billion respectively.
 
“The total value of capital importation into Nigeria stood at $2.85 billion in the third quarter of 2018.
 
“This was a decrease of 48.21 per cent compared to Q2 2018 and a 31.12 per cent decrease compared to the third quarter of 2017″, the NBS report says.
 
The NBS further revealed that the largest amount of capital importation by type was received through portfolio investment, which accounted for $1.73 billion or 60.5 per cent of total investment inflows, followed by “other investment”, which accounted for $601.53 million or 21.07 per cent of total investments.
 
The report also said foreign direct investment followed as it accounted for $530.63 million or 18.58 per cent of total capital imported in the third quarter.
 
By sector, the report said investment in equity dominated the third quarter of 2018 accounting for $1.67 billion of the total capital inflow in the quarter.
 
In terms of country of destination, the NBS report revealed that the United States emerged as the top source of capital investment in Nigeria in the third quarter of 2018 with $911.33 million, accounting for 31.91 per cent of the total capital inflow in the third quarter of 2018.
 
 
Source: NAN
The Presidency has vowed to recover the $7 billion cash bailout given to commercial banks in the country in 2006 by the Central Bank of Nigeria, CBN.
 
This was disclosed on Wednesday by the Chairman of the Presidential Committee on the Recovery of Public Property, Okoi Obono-Obla in Abuja on Wednesday, vowing that the committee will take all necessary steps to recover the money.
 
Obono-Obla stated this at a public event organized by some civil society groups on the controversial Oil Prospecting Lease 245 in Abuja.
 
Obla-Obono also disclosed that the federal government was also investigating an unnamed top politician for running 20 companies in a European tax haven so as to evade tax payment to Nigeria.
 
He also added, that a leading oil firm that has withheld $1.9 billion oil revenue payment to Nigeria was being investigated and would be sanctioned for economic sabotage.
 
 
Source: The Ripples

The Central Bank of Nigeria (CBN) on Tuesday intervened in the wholesale segment of the foreign exchange market, supplying about $100 million to dealers in that window.

In the latest round of intervention announced in Abuja, the CBN said it also injected about $55 million each in the Small and Medium Enterprises (SMEs) and Invisibles segments to meet the needs of customers.

The Director, Corporate Communications Department at the CBN, Isaac Okorafor, again assured of the Bank’s continued mediation in the interbank foreign exchange market in order to guarantee stability.

Last week, the CBN also intervened in the wholesale segment of the inter-bank foreign exchange market on Wednesday, November 21, 2018 to the tune of $210 million.a

Meanwhile, the Naira continued its stable run against the United States dollars on Tuesday, November 27, 2018, exchanging at an average of N362/$1 in the BDC segment of markets across Lagos and Abuja.

Source: Premium Times

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