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

Following the two-day holiday declared by the Federal Government to celebrate this year’s Eid-El-Kabir, the stock market resumed on Thursday on a positive note as equities investors gained N198 billion.

The domestic bourse had recorded a bearish performance on Monday as the market capitalisation shed N219 billion to close at N12.66 trillion before the holiday.

But the market rebounded on Thursday as the benchmark index of the Nigerian Stock Exchange (NSE), All-Share Index (ASI), rose by 157 basis points to close at 35,206.16 points from 34,663.48 points recorded on the first trading session of the week.

Specifically, the market capitalisation appreciated to N12.85 trillion from N12.65 trillion, while the year-to-date losses of the ASI stood at 7.99 percent.

However, market breadth weakened as 25 stocks declined as against 11 that gained. The volume of stocks traded at the exchange rose by 0,1 percent, while the value of the stocks fell by 20.59 percent.

A total of volume of 210.71 million stocks valued at N2.53 billion were exchanged in 3,287 deals as against total of 220.49 million stocks worth N3.19 billion traded in 3,054 deals on Monday.

Wapic Insurance was the highest gainer today rising by 8.82 percent to close at 37 Kobo per share. Veritas Kapital Assurance trailed with 7.69 percent gain to close at 28 Kobo per share, while Dangote Cement appreciated by 6.98 percent to close at N230 per share.

Dangote Flour garnered 6.49 percent to close at N8.20 per share, while Oando rose by 5.26 percent to close at N5 per share.

On the other hand, Livestock Feeds led the laggards by shedding 9.84 percent to close at 55 Kobo per share. Red Star Express followed by dropping 9.65 percent to close at N5.15 per share, while Jaiz Bank lost 9.43 percent to close at 48 Kobo per share.

Equity Assurance depreciated by 9.09 percent to close at 20 Kobo per share, while Secure Electronic Technology fell by 8.70 percent to close at 21 Kobo per share.

United Bank for Africa emerged the most traded stock as total turnover hit 54.33 million volume of shares valued at N436.11 million. Zenith Bank followed with a volume of 25.99 million shares worth N571.42 million, while FBN Holdings recorded a volume of 14.19 million shares valued at N138.64 million.

 

Vanguard.

President Muhammadu Buhari will on Tuesday, next week inaugurate the $250million state-of-the-art International Breweries in Ogun State.
 
The brewery, said to be the biggest in West Africa, is located at kilometre 3, Flowergate Industrial Scheme, along the Abeokuta-Sagamu Expressway.
 
The Plant Manager, Tony Agah, speaking to journalists at the premises of the factory, said the plant is the brewer’s fourth brewery in Nigeria after those in Ilesa, Onitsha, and Port-Harcourt.
 
According to him, about 90 per cent of the company’s raw materials would be sourced locally, adding that it had already employed 300 staff.
 
 
Agah said the brewery would have significant multiplier impact on the value chain within Ogun State and its environs as well as provide direct and indirect employment for the people, and also support Nigeria’s foreign direct investment aspiration.
 
The Managing Director, Annabelle Degroot, speaking about the inauguration, described the plant as a major step towards its strategic goal of producing high-quality drinks locally.
 
Her words: “Objectively, International Breweries Plc is a brand that places a premium on quality. Bearing this in mind, we will spare no expense or effort in ensuring that Nigerians are treated to the best traditions in brewing, with outstanding recipes, superior ingredients, innovation and world class techniques. The outcome is to ensure satisfaction and enjoyment for our consumers.”
 
Degroot added that the plant would provide a great opportunity to engage qualified locals, who are excited about the prospects of forging a career with the brand, while thousands of both direct and indirect jobs would be created.
 
She said: “One of the objectives of the company is to create job opportunities for the people of Ogun State as well as Nigerians in general. The plant will also be instrumental in empowering farmers as most of the raw materials required will be sourced locally. This will, in turn, contribute to the economic development of the country.”
 
International Brewery is one of the 300 companies that the Governor Ibikunle Amosun administration has attracted to the State since assumption of power in 2011.
 
 
Tribune

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.

 

Business Insider

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

With the myriads of problems facing the nation’s stock market, stakeholders have expressed divergent views on the relevance of the routine ‘Bell Ringing’ exercise at the Nigerian Stock Exchange (NSE) and the impact on the market.
 
While some stakeholders believe that the ceremony has increased stock market visibility and attracted more stakeholders, others argued that the impact has not reflected on the market.
 
The Managing Director of High Cap Securities, David Imafidon, explained that the NSE uses the gong sounding ceremony to publicise itself and attract stakeholders to its platform.
 
According to him, efforts must be made not to trivialise the programme, considering the level of visibility and competitiveness the exercise has attracted to the exchange.
 
Also speaking, the Managing Director of High Cap Securities Limited, Mike Eze, who described the exercise as a routine, said: “Bell ringing in any stock exchange is the exclusive preserve of the President of the stock exchange.
 
The President, who is not on ground day to day, on his part, delegates this function to the Chief Executive Officer (CEO) of the exchange, who is on ground running the exchange day to day.
 
“The CEO in his wisdom, may decide to invite any reputable hand to assist him in bringing the market to a close. This is the interplay you see going on every day in the last eight years. It is just the process of opening and closing of a stock market.”
 
The Managing Director of Dependable Securities Limited, Chinenyem Anyanwu, said: “It has a way of impacting the market positively by making the stock Exchange and the capital market to always be in the news, sometimes occupying the front pages of the print media.
 
However, the President of Progressive Shareholders association of Nigeria, Boniface Okezie, explained that the exercise has not attracted the expected investments into the market.
 
According to him, it is expected that the ceremony would serve as a platform for listed firms to unfold their growth plans and present their scorecards to stockbrokers for share price appreciation.
 
He noted that in other exchanges across the world, due to the amount of coverage the opening and closing bells receive, many companies coordinate new product launch and other marketing-related events with the day their company representative rings the bell.
 
“The purpose of the exercise is to boost the market in terms of liquidity, volume of shares and attract new investments. Listed companies may also use the platform to inform stockbrokers on new products they are about to lunch or any other information that can boost their share price. But these are not happening.
 
“I have not seen the impact. They should look at how to improve on the exercise, so that it would be more impactful and add value to the market. Those undervalued stocks need to improve.
 
“We need the companies to come to the market and tell stockbrokers their growth plans so that it would lift their stock prices and in turn, grow the market.”
 
The Guardian 

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.

 

NAN

  1. Opinions and Analysis

Calender

« December 2019 »
Mon Tue Wed Thu Fri Sat Sun
            1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31