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
As part of measures to tackle rising poverty rate in the country, the Federal Governemnt said it had concluded plans to extend its Government Enterprise and Empowerment Programme (GEEP) scheme to two million small-scale enterprises in the country.
Speaking at a town hall meeting in Lagos on Wednesday as part of events to mark this year’s edition of Eid-el-Kabir celebrations, Vice President Yemi Osibanjo said the scheme, called TraderMoni, was part of government’s effort to support small businesses.
“The other thing we have done is Government Enterprise and Empowerment Programme, a micro-credit scheme for market women and others. We are doing one now for petty traders that is called TraderMoni.
“We are going to do at least 100,000 in Lagos and two million across the country. The traders here in Bariga must benefit from it. We also have the one for people far bigger than that which is called GEEP.
“I want to emphasise that everything we are doing, our focus, first of all, is to ensure that people are taken out of poverty. Our country is very big; over 200 million people, with many young people coming out every day. Aside from that, we also want to ensure that anybody who is doing anything at all, who is trading, artisans, mechanics; we are able to support them,” he said.
TraderMoni is one of the three micro-credit loan schemes under GEEP, one of the National Social Investment Programmes (NSIP) of the Federal Government.
Two weeks ago, the Federal Government announced that it had disbursed MarketMoni loans to 31,594 microenterprises in Lagos State through the Bank of Industry (BOI).
“The GEEP scheme includes loans in different categories called TraderMoni, MarketMoni, and FarmerMoni. In December 2016, disbursement commenced across the country, and as of today, there are over 350,000 beneficiaries across all 36 states of the nation including the FCT,” a statement from BOI read.
According to the statement, the interest-free loans do not require any collateral and are repayable within six months with a grace period of two weeks.
The National Bureau of Statistics (NBS) says a total of 509,668,433 transactions valued at N32.90 trillion was recorded in Nigeria’s banking sector during the second quarter.
The NBS stated this in its “Selected Banking Sector Data: Sectorial Breakdown of Credit, ePayment Channels and Staff Strength (Q2 2018)’’report released in Abuja.
According to the report, Automated Teller Machine (ATM) transactions dominated the volume of transactions recorded.
It said 217,417,961 volume of ATM transactions valued at N1.603 billion was recorded in the period under reveal.
“In terms of credit to private sector, the total value of credit allocated by the banks stood at N15.34 trillion as at the second quarter.
“Oil and Gas and Manufacturing sectors got credit allocation of N3.45 trillion and N2.02 trillion respectively to record the highest credit allocation as at the period under review.
“As at the second quarter, the total number of banks staff increased by 13.67per cent, from 89,608 in first quarter to 101,861,” the report stated.
Source: The Ripples
Some investors at the Lagos Deep Offshore Logistics Base (LADOL) free zone are still worried about the cost of operations at the zone, and have requested for a more pragmatic and lasting solution, given their huge investment portfolio in the area.
They said the move will not only encourage investors operating in the zone, but will also guarantee Federal Government’s commitment to giving existing and would-be investors the needed assurance and protection.
They, therefore, called for a milder business atmosphere, which they said would drive returns on their investments.
LADOL and its subsidiary company, Global Resources Free Zone Management Company (GRMFZC), have been at the centre of allegations by some investors at the zone.
The investment of a member of Samsung Group of Companies has been identified as a focal point in this quest, as investigations show that investment by Samsung Heavy Industries (SHI) is the most valuable asset of the LADOL Island.