The Nigerian Exchange Limited has said the total inflows of foreign portfolio investments declined by N30.91bn from January to July, compared to the corresponding period in 2020. NGX’s Domestic and Foreign Portfolio Investment Report for July 2021 showed that inflows from foreign investors totalled N112.74bn, a 21.52 per cent decline when compared to the same period of last year. The total outflows from the equity market as of July 31, 2021 amounted to N124.75bn, representing a 56.62 per cent plunge. The net foreign portfolio investment year-to-date, a difference between foreign outflows and inflows, stood at N12.01bn, representing negative sentiments in the market from foreign investors. Punch
Guinness Nigeria Plc, a subsidiary of Diageo Plc, has announced its audited results for the period ended June 30, 2021 revealing a 110 per cent increase in profit after tax to N1.25billion from loss of N12.6billion reported in full year ended June 30, 2020. The company said it recorded double digit growth across all key categories despite the impact of COVID-19 restrictions and economic challenges. As a result, the management recommended N1,008 million dividend, subject to shareholders’ approval at the forthcoming Annual General Meeting (AGM). The audited results, which were released to the Nigerian Exchange Group (NGX) indicated that revenue increased 54per cent to N160 billion in 2021 from N104.4 billion reported in 2020. This Day
There is no gainsaying that the capital market is a critical pillar to long term fund mobilization needed for capital formation to fast track economic growth and development. It is believed that the short-term funding profile of the money market makes it unsuitable for project infrastructure investment hence the capital market which creates an enabling environment for the generation of long-term financing, active private sector participation in infrastructure development can also provide the platform to raise or get access to capital.
In addition, the capital market provides a variety of financing instruments and investor categories which could lead to a larger pool of funds than other financing options. However, having the access to funding is not very easy for many of the companies and the equities market (primary market), which used to be a very good source of funding has remained mostly inactive due to the impact of the global economic crisis as well as investor apathy. The Sun
Foreign exchange transactions at the Investors’ & Exporters window increased by 59.37 per cent last week, according to FMDQ Securities Exchange Limited. The Central Bank of Nigeria had in April 2017 amid severe forex scarcity created the I&E window in a bid to boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions. The total value of transactions at the I&E window stood at $661.48m last week, up from $415.05m in the previous week, according to FMDQ Exchange. It said the total turnover in the forex spot and derivatives markets jumped by 76.08 per cent to $949.91m from the $539.47m reported for the previous week. Punch
The impediments stunting the growth of the entire gas value chain may soon be a thing of the past as stakeholders in the sector have hailed the decision of the Central Bank of Nigeria to unlock the gas sector potential. The experts in separate interviews said the CBN N250 billion interventions in the gas sector would help create value addition for the 206 trillion standard cubic feet(SCF) of gas reserves through fresh investments and create about 12,000 jobs by harnessing existing gas resources to spur other critical sectors of the economy, especially industrial activities. The CBN intervention which is in partnership with the Ministry of Petroleum Resources will further drive the National Gas Expansion Programme (NGEP) policy of the Federal Government. The Sun
Dangote Industries Limited has said its $2bn petrochemical plant in Lagos is designed to produce 77 different high-performance grades of polypropylene in the country. The company said in a statement on Sunday that with a turnover of $1.2bn, the plant, situated alongside the Dangote Refinery, had been strategically positioned to cater to the demands of the growing plastic processing downstream industries in Africa and other parts of the world. The Group Executive Director, Strategy, Capital Projects and Portfolio Development Industries Limited, Devakumar Edwin, said the plant would drive investment in the downstream industry, generate huge value addition, create jobs, increase tax revenues, reduce foreign exchange outflow and increase the Gross Domestic Product of the country. Punch
With a significant percentage given to large corporates, multinationals and high end medium enterprises and no noticeable impact on the real sector, which concerns production, purchase, flow of goods and services, credit to private sector maintain an upward momentum in the first seven months of the year. According to the Central Bank of Nigeria (CBN) Money and Credit Statistics, credit to private sector gained 6.68 per cent from N30.65trillion in January to N32.8trillion in July 2021. But analysts said increase in private sector has not manifested in increased output, lower inflation, lower interest rates, improved Purchasing Managers Index and stock market performance as well as job creation opportunities. This Day