CAPITAL MARKET
NGX Reiterates on Investors’ Diversification of Portfolios in Capital Market
The Nigerian Exchange Limited (NGX) has emphasized on the need for investors to diversify portfolios in the capital market in order to ensure enhanced return on investment. According to NGX, portfolio diversification is the process of investing one’s money in different asset classes and securities in order to minimize the overall risk of the portfolio. The Divisional Head, Trading Business, NGX, Jude Chiemeka, recently at the Retail Investors workshop organised by the NGX and ARM Securities Limited said as a multi-asset exchange, the NGX had various products for every investor regardless of what their investment goals, risk appetite or return expectations might be, listing the products as equities, fixed income, Exchange Traded Funds and derivatives. This Day
44 stocks drive market cap to N25.51tn
The market capitalisation of equities listed on the Nigerian Exchange Limited appreciated slightly by 0.4 per cent to close at N25.51tn on Friday. The NGX All-Share Index also appreciated by 0.04 per cent to close the week at 47,328.42 basis points. Similarly, all other indices finished higher with the exception of NGX Asem, NGX Meri Value, NGX Consumer Goods, NGX Lotus II, NGX Industrial Goods and NGX Sovereign Bond indices which depreciated by 1.17 per cent, 0.34 per cent, 1.06 per cent, 0.07 per cent, 0.01 per cent and 0.02 per cent, respectively. Punch
Fixed income market turnover drops by 31.12% in January
FMDQ Securities Exchange has announced that turnover in the fixed income and currencies markets (FIC) in January 2022 stood at ₦14.13 trillion, representing a month-on-month (MoM) decrease of ₦6.41 trillion from ₦20.54 trillion in December 2021 The figures also represent a year-on-year (YoY) increase of 8.44 per cent (₦1.10 trillion) over N13.03 trillion recorded in the corresponding period in January 2021 respectively. In its January 2022 edition of (FIC) markets analysis, FMDQ Exchange also stated total foreign exchange (FX) market turnover in January 2022 was $10.13 billion (₦4.22 trillion), representing a MoM decrease of 38.12 per cent ($6.24 billion) from the turnover $16.37 billion recorded in December 2021. The Guardian
BANKING
CBN’s OMO Auctions Drop by 67% to N400bn on Weak Economic Activity, Illiquidity
As the country’s financial markets continued to dance to the tune of monetary policy implementations, the Central Bank of Nigeria (CBN) in first two months of 2022 auctioned N400 billion worth of Open Market Operation (OMO). THISDAY analysis of market data showed that the OMO auctions in the first two months of 2022 represent a decline of 67 per cent when compared to N1.16 trillion reported by the CBN in first two months of 2021. It is, however, worthy of note that OMO is designed to be a short-term market instrument that the CBN uses to control the supply of money in the economy. This Day
ECONOMY
Fuel scarcity worsens as NNPC fails on demand, promises
Almost a month after the scarcity of premium motor spirit threw the country into an energy crisis, indications emerged, yesterday, that the situation may go from bad to worse, as prices at the pump rose to over N300 per litre in some filling stations across the country, especially those owned by independent marketers. Although the Nigerian National Petroleum Company Limited had said in Abuja that 2.3 billion litres of additional premium motor spirit were being imported into the country to complement existing one billion litres as part of measures to address fuel scarcity. Guardian
‘Russia, Ukraine war may reduce capital inflow to Nigeria’
Russia’s invasion of Ukraine is capable of creating uncertainty in the Nigerian stock market and dampening investors’ appetite, analysts have said. Speaking in a telephone interview, a professor of the capital market, Nasarawa State University, Uche Uwaleke, said aside from uncertainties, the conflict would negatively impact capital importation and reduce foreign investors’ patronage. He said although the market closed upbeat at the end of trading on Thursday and Friday, he argued that investors are conscious of uncertainty that the tension could generate and would adopt the ‘wait and see’ strategy. Guardian
Concerns as NNPC Recorded Zero Remittance to Federation Account in January
Despite the rising international prices of oil, the Nigerian National Petroleum Company (NNPC) Limited failed to remit its statutory funding to the Federation Account which is jointly operated by the federal, state and local governments, in January 2022. That was the second time in less than a year that the national oil company (NOC) would be unable to deliver a kobo to the joint account, following the same occurrence in April last year, when the firm announced zero remittance for the month. This Day
Guinea Insurance increases coverage with new self-service portal
Determined to increase insurance penetration in the country, Guinea Insurance Plc has initiated a self-service motor insurance e-portal that allows customers to purchase insurance products in less than two minutes. Speaking on the new offering at the weekend, the Managing Director, Guinea Insurance, Ademola Abidogun, said the new offering was introduced to provide the insuring public with unlimited access to make real-time purchases from anywhere and whenever they needed to. Guardian
Seplat to acquire ExxonMobil assets in Nigeria
Seplat Energy Plc, has unveiled its plans to acquire the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) from Exxon Mobil Corporation Delaware (USA Incorporated). Confirming the deal, Chief Financial Officer, Seplat, Emeka Onwuka said the arrangements have reached advanced stage while completion of the transaction is subject to ministerial consent and other required regulatory approvals. This is seeing as the first transaction to be announced since the Federal Government ratified Petroleum Industry Act (PIA). Guardian
CBN to pay exporters N65 rebate for every $1 remitted
The Central Bank of Nigeria has said it will pay exporters N65 for every $1 sold into the economy through the Investors &Exporters window. The CBN made this known in a guideline on its newly introduced Race To $200bn scheme, titled, “Operating Guidelines for RT200 Non-Oil Export Repatriation Rebate Scheme.” The CBN Governor, Godwin Emefiele, had on February 10, launched the RT200 programme at the post-Bankers’ Committee briefing held in Abuja. Punch
