CAPITAL MARKET
Operators laud SEC on Custody for Mutual Funds
Capital Market Operators have commended the Securities and Exchange Commission (SEC) on its directive that clients’ funds for Mutual Trust should be domiciled with the custodian of the asset for optimal safety. The commission had early this year issued new rules that clients’ fund for collective investment should be held in safe and secure custody or electronically administered. The commission has re-affirmed its commitment towards full implementation of the new rule to ensure that a client’s asset does not co-mingle with that of the asset management company. Market operators lauded the commission for the rule, describing it as a necessary step to check abuse of clients’ funds and ensure accountability for both parties. This Day
Investors lose N11bn as banking stocks dip further
Investors in the equities market of the Nigerian Exchange Limited – formerly Nigerian Stock Exchange lost N11.02bn at the end of trading on Wednesday as banking stocks declined for the eighth consecutive trading day. The NGX All-Share index dropped by 0.05 per cent from 38,873.85 basis points to 38,852.69bps, while the market capitalisation decreased from N20.25tn to N20.24tn. All trading indices fell as the volume of shares and value of shares traded dropped by 15.54 per cent and 35.47 per cent respectively. At the end of trading on the floor of the NGX on Wednesday, 155.77 million shares valued at N1.51bn were exchanged in 3,256 deals as compared to the previous day’s tally of 184.44 million shares worth N2.34bn in 3,809 deals. Analyzing by sectors the NGX Banking and Consumer Goods indices lost 0.83 per cent and 0.02 per cent of value respectively, while other sectoral indices gained. Punch
ECONOMY
Nigeria, 39 others may not attain pre-COVID-19 GDP levels by 2026 – World Bank
The World Bank has said that Nigeria and 39 other countries may not return to pre-COVID-19 levels of Gross Domestic Product per capita even by 2026 despite projected rates of economic growth. It said this in a new report titled ‘From double shock to double recovery – Implications and options for health financing in the time of COVID-19’. According to the report, the COVID-19 pandemic resulted in a deep economic contraction in 2020. “COVID-19 led to a deep economic contraction in 2020. On average, country GDP per capita is estimated to have contracted by 5.9 per cent,” it stated. However, the economy is projected to recover strongly in 2021, which may be the strongest growth after a recession in 80 years. “The global economy is projected to bounce back strongly starting in 2021 – the recovery may well. Punch
Daily fuel consumption jumps to 72 million liters, subsidy hits N541.66bn
Petrol consumption in the country jumped from 55.59 million litres a day in April to 72.07 million litres per day in the month of May. This shows that in the month of May, petrol consumption in the country was 16.48 million higher than the consumption in the month of April. This also means that within the period, the country’s daily consumption of petrol by 29.65 per cent between April and May. Data obtained the Nigerian National Petroleum Corporation monthly report showed for the first five months of the year, the corporation supplied a total 8.76 billion litres for local consumption. The Federal Accounts Allocation Committee report also showed that the country pumped N541.66bn into petrol subsidy in the first in six months of the year. Punch
How Nigeria can leverage blockchain technology for economic growth’
By exploring opportunities offered through blockchain technology and digital currencies, Nigeria stands to gain at least $29 billion in its Gross Domestic Product (GDP) by 2030, as well as improved cross-border trade. This was revealed at a webinar organised by the Lagos Chamber of Commerce and Industry (LCCI) themed “Unlocking the opportunities of blockchain technology” in Lagos. The president, LCCI, Toki Mabogunje, explained the proposed digital currency, e-Naira built on blockchain, would engender the creation of employment for the teeming youth, promote financial inclusion, faster and safer digital transactions, and minimise transaction risks. Guardian
Why import index rose by 1.07% between April, June, 2021 –NBS
National Bureau of Statistics (NBS) has said that all-commodity group import index increased by 1.07 per cent between April and June, 2021. This was driven mainly by an increase in the prices of products of the chemical and allied industries (1.40 per cent), wood and articles of wood, wood charcoal and articles (1.37 per cent) paper making material; paper and paperboard articles (1.23 per cent). The document, published by the bureau, yesterday, also said that between April and May, 2021, import price index grew by 0.12 per cent. It explained that this was due to marginal increases in the index of products of the chemical and allied industries (0.78 per cent), wood and articles of wood; wood charcoal and articles (0.72 per cent); paper making material; paper and paperboard (0.44per cent). The Sun
