CAPITAL MARKET
Value of 10 Highly Cap Stocks Gain N532.66bn Amid Decline in Others in 2021
On the backdrop of closing positive in 2021, the value of 10 most capitalised stocks on the Nigerian Exchange Limited (NGX) gained N532.66billion despite the decline in BUA Cement, Stanbic IBTC Holdings Plc, Guaranty Trust Holdings Plc (GTCO) and Nigerian Breweries Plc market values. The other most capitalised stocks on Value of 10 Highly Cap Stocks Gain N532.66bn Amid Decline in Others in 2021 include Dangote cement Plc, MTN Nigeria Plc, Airtel Africa Plc, Nestle Nigeria Plc, Zenith Bank Plc, and Lafarge Africa Plc. This Day
CBN, SEC, others to lift financial sector with fresh N1.54tn investment
Federal Government Ministries, Departments and Agencies, especially financial services regulators are to invest N1.54tn in five years to boost liquidity in the financial services sector. According to the Federal Government National Development Plan 2021-2025, the government is planning to raise the liquidity thresholds in each segment of the financial system to the levels that will support the growth and development of the country. The investment is also expected to strategically optimise all components of the nation’s balance sheet to unlock the liquidity required to support the stability, growth Punch
ECONOMY
OPEC Forecasts Little Impact of Omicron on Oil Demand
The Organisation of Petroleum Exporting Countries (OPEC) and its allies OPEC+ expects the impact on the oil market from the Omicron coronavirus variant to be mild and temporary, keeping the door open for a further increase in output, a technical report seen by Reuters has shown. “The impact of the new Omicron variant is expected to be mild and short-lived, as the world becomes better equipped to manage COVID-19 and its related challenges,” the Joint Technical Committee (JTC) report said. “This is in addition to a steady economic outlook in both the advanced and emerging economies,” This Day
Nigeria’s debt vulnerable, costly, alerts World Bank
The World Bank has disclosed that Nigeria’s debt, which may be considered sustainable for now, is vulnerable and costly. According to the Washington-based global financial institution, the country’s debt is also at risk of becoming unsustainable in the event of macro-fiscal shocks. The bank said this in the November edition of its Nigeria Development Update. It said, “Nigeria’s debt remains sustainable, albeit vulnerable and costly, especially due to large and growing financing from the Central Bank of Nigeria. Punch
Oil price increases as OPEC projects slow growth in 2022
The price of Brent, the crude against which Nigeria’s oil is priced, increased marginally on Monday as the Organisation of Petroleum Exporting Countries projected a slow growth momentum in terms of economic recovery this year. Also, OPEC announced the appointment of its next Secretary-General, expected to assume office in August 2022, following the expiration of the second term of Nigeria’s Sanusi Barkindo, in July. Oil price figures seen in Abuja on Monday showed that the cost of Brent appreciated by 1.12 per cent or $0.87 to $78.65 per barrel as at 5.10pm Nigerian time. It was further observed that price increases were also recorded in oil grades in the OPEC Basket and WTI crude on Monday. Punch
Analysts Forecast Increased FG Borrowing as CBN’s Primary Market Auction Rises by 162%
Analysts have predicted that the federal government would sustain borrowing in 2022 as data obtained from the Central Bank of Nigeria (CBN) showed primary market auction rose significantly by 162 per cent in 2021 compared to the previous year. With the federal government’s increasing borrowing to finance its budget deficit, domestic borrowing was pegged at N6.7 trillion in 2021, as against N2.6 trillion in 2020.The N4.28 trillion 2021 budget of federal government had huge debt components and this saw the apex bank to support with monthly primary market auctions. This Day
De-risk BDCs’ operations to access forex from autonomous window –ABCON charges CBN
The Association of Bureaux De Change Operators of Nigeria (ABCON), an umbrella body for over 5,3000 Central Bank of Nigeria (CBN)-licensed Bureaux De Change (BDCs), has advised the apex bank to de-risk BDCs operations to allow operators access foreign exchange (forex) from autonomous market in 2022. In a statement released at the weekend, its President, Alhaji (Dr) Aminu Gwadabe, said the BDC sector is becoming comatose since July 2021 Monetary Policy Committee (MPC) meeting where the CBN suspended weekly dollar interventions to BDCs. The Sun