CAPITAL MARKET
Foreign Investors Exit Takes Toll As Stock Market Decline by N973.2bn in Seven Months
Profit-taking on price appreciation of stocks recorded last year and foreign investors exit Impacted the Nigerian equities market negatively in the first seven months of 2021 as investors lost N973.2billion. Specifically, market capitalisation, which measures the value of all stocks dropped by N973.2billion in seven months to N20.083trillion from N21.057trillion the stock market opened in 2021. Consequently, the Nigerian Exchange Limited All-Share Index (ASI) dropped by 4.3 per cent to 38,547.08 basis points as at July 30 from 40,270.72basis points the market opened in the year under review. This Day
Dangote Sugar Sustains Growth Despite Increasing Finance Cost
Dangote Sugar refinery sustained growth in profit before tax and profit after tax amid hiker in finance cost in its unaudited result and accounts for half year (H1) ended June 30, 2021. The sugar processing company last week released its unaudited result and accounts for H1 2021 with growth in revenue, but hike in finance cost reduced its profits. The company revenue rose by nearly 28 per cent to N131.96billlion in H1 2021 from N103.23billion reported in H1 2020. Dangote Sugar refinery was able to grow its revenue on the backdrop of growth from the sale of 50kg sugar and molasses. This Day
MTN posts N790b revenue, loses 7.6m subscribers in six months
For the first half of the year, ended June 30, 2021, telecommunications service provider, MTN service revenue hit N790.3 billion, an increase of 24.1 per cent. Its profit before tax (PBT) of N215.1 billion and profit after tax (PAT) of N141.8 billion in its half-year (H1) operations. The financial report showed pre-tax profit growth of N215 billion, representing a 54.1 per cent increase, while profit for the period soared by 49.5 per cent to N141.827 billion. MTN, which disclosed this in its unaudited results for the half-year 2021, said earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 27.6 per cent to N417.2 billion, while EBITDA margin improved by 1.4 percentage points to 52.7 per cent. Guardian
BANKING
UBA’s Africa Presence As Elixir for Remittances
United Bank for Africa Plc’s strong presence in 20 African countries is a game changer for diaspora remittances, writes Ugo Aliogo. Global remittances are said to be the most probable largest channel of external finance in developing countries. Foreign Direct Investments (FDIs), remittances play a vital role in arresting poverty, which might affect the socio-economic existence of a country.Therefore, it is safe to say remittances are a major driver of long-run growth and development. Having said that, It’s imperative to build productive capacities, transform the structure of economies, generate employment and reduce poverty. This Day
ECONOMY
Nigeria’s loans from World Bank, AfDB rise to $14.35bn under Buhari
Nigeria’s liabilities to the World Bank and the African Development Bank rose from $7.14bn to $14.25bn between June 30, 2015 and March 31, 2021, data obtained from the Debt Management Office have shown. This means that the commitment of the banks to the country rose by $7.11bn within the period under review. This represents an increase of 98.48 per cent. As of June 30, 2015, the Federal Government had borrowed a total sum of $6.19bn from the World Bank. A breakdown of the group’s portfolio in the country shows that a greater part of the loans was obtained from the International Development Association, an arm of the World Bank that specializes in giving concessional loans to poor and fragile countries. Punch
Mahmud: Nowhere in the World are BDCs Spoon-fed
The Director, Monetary Policy Department, Central Bank of Nigeria, Dr. Hassan Mahmud, in this interview on Arise News Channel, spoke extensively on issues surrounding the decision of the banking sector regulator to discontinue the sale of foreign exchange to Bureau De Change operators. Nume Ekeghe presents excerpts: This Day
Petrol subsidy may gulp N2tn this year – Rainoil boss
Nigeria may end up spending N2tn on petrol subsidy this year if the current situation persists, the Group Managing Director, Rainoil Limited, Dr Gabriel Ogbechie, has said. Ogbechie said this on Sunday at the Nigeria History Series of the Centre for Values in Leadership, themed ‘Indigenous participation in the downstream oil and gas sector’ moderated by Prof. Pat Utomi. While lamenting the lack of deregulation in the downstream sector, he said the government was spending about N8m daily on petrol subsidy. Punch