CAPITAL MARKET
Stock market hits four-month high, investors gain N65bn
Equity investors in the Nigerian Exchange Limited gained N64.93bn on Thursday as the NGX All-Share Index rose by 0.32 per cent to 39,670.29 basis points, its highest since April 26, 2021. The market capitalisation of equities increased to N20.67tn on Thursday from N20.60tn the previous day. Trading volume jumped by 52.90 per cent from 132.01 million shares worth N2.67bn traded in 3,307 deals on Wednesday to 201.84 million shares valued at N1.68bn in 3,274 deals. By sector, the NGX Insurance and NGX Industrial indices increased by 0.77 per cent and 0.22 per cent respectively, while the Banking, Consumer Goods and Oil & Gas Indices depreciated by 0.06 per cent, 1.68 per cent and 0.07 per cent respectively. Punch
ECONOMY
Oil price tumbles to $65, lowest in three months
The international oil benchmark, Brent crude, sank on Thursday to its lowest level since May as demand fears and comments from the United States Federal Reserve that it will suspend its bond-buying programme sent prices tumbling. The further decline in prices also came as the spread of the delta variant of the coronavirus that causes COVID-19 underlined worries about the demand outlook, and as the US dollar rallied. Crude came under pressure amid weakness in the commodities market and equities more generally, CNBC reported. Brent, against which Nigeria’s crude oil is priced, fell by 3.8 per cent to $65.67 per barrel earlier on Thursday but rose slightly to $66.13 per barrel as of 7:15pm Nigerian time. Punch
Nigeria, others benefitted from $2.69bn guarantees – World Bank
The World Bank has disclosed that Nigeria and 19 other countries benefitted from about $2.69bn guarantees between 2020 and 2021. The guarantees were issued under the COVID-19 Fast Track Facility. The other countries are Albania, Argentina, Belarus, Bosnia & Herzegovina, Botswana, Chile, Eswatini, Georgia, Ghana, Kosovo, Lesotho, Moldova, Montenegro, Mozambique, North Macedonia, Peru, Serbia, Ukraine and Zambia. This was contained in one of the newly released FY21financial statements of the bank, precisely the Multilateral Investment Guarantee Agency’s financial statement. Punch
NGF: 30% Frontier Exploration, Host Communities’ 3% Deplete Federation Account
Chairman of the Nigeria Governors’ Forum (NGF), Dr. Kayode Fayemi, yesterday, reiterated the state governors’ concerns about the 30 per cent allocation for frontier exploration and the three per cent for host communities as contained in the Petroleum Industry Act (PIA). Fayemi said those provisions in the law assented to by President Muhammadu Buhari on August 16 greatly depleted the Federation Account. Fayemi spoke in an interview with the Arise News Channel, the broadcast arm of THISDAY. However, the federal government yesterday clarified that the proposed Nigerian Upstream Regulatory Commission (NURC), not the Nigerian National Petroleum Corporation (NNPC) Limited, will handle proceeds from the sale of crude oil accruing to the three tiers of government when the PIA becomes fully operational. This Day
Lawmakers Fume over FG’s Plan to Borrow N5.62tn, Tackle MDAs Hiding Revenue
The House of Representatives yesterday expressed displeasure over the way some Ministries, Departments and Agencies (MDAs) conceal their revenues, thereby denying the federal government the much-needed fund to fund its annual budget. The Chairman, House Committee on Finance, Hon. James Faleke, who made this known at the ongoing public hearing on the 2022/2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (FSP), also condemned the federal government’s plan to borrow N5.62 trillion to finance the 2022 budget, while the MDAs starve the government of fund. This Day