CAPITAL MARKET
NGX halts gains as index slumps by 0.3% amid profit-taking
Following renewed profit-taking embarked by investors, the Nigerian Exchange Limited (NGX) halted its gaining streak to close on a downward note yesterday, causing the index to depreciate by 0.3 per cent. At the close of transactions yesterday, the All-Share Index (ASI) fell by 154.37 absolute points, representing a decrease of 0.29 per cent to close at 52,944.09 points. Similarly, the overall market capitalisation value lost N83 billion to close at N28.543 trillion. The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Lafarge Africa, MTN Nigeria Communications (MTNN), International Breweries, GlaxoSmithKline Consumer Nigeria and Flour Mills of Nigeria. On market outlook, GTI Securities Limited said: “Stock market resumed trading activities this week bearish, as inflation advanced by 16.82 per cent. This week, we expect profit-taking to continue.” Guardian
ECONOMY
Dollar hits N600 at parallel market, forex supply shrinks
The dollar exchanged at N600 on Monday at the parallel market, heightening fears of a further devaluation of the nation’s currency. The rate at the Importers and Exporters Window was, however, N415.75 on Monday, widening the exchange rate spread to N184.25. At Zone 4 in Abuja, which is the hub of the parallel market in the Federal Capital Territory, two Bureau de Change Operators, Mohammed Isa, and Abu Abdullahi, told The PUNCH that the rate was N599/$ at 10am and 11.14am respectively. However, the rates for both BDCs changed to N600/$ when they were separately contacted at N3.13pm and N5pm respectively on Monday. “If I reduce this by N1, I will not be able to make any profit,” one of the two BDCs, Abu Abdullahi, said. At the Lagos airport on Monday, a BDC operator, Adamu Haruna, told The PUNCH that the rate was “N600/$, no more, no less.” Punch
FG extends money laundering law to casinos, others, bans shell accounts
The Federal Government has introduced stricter regulations in the operation of casinos in Nigeria, as part of its fresh move against money laundering. This is just as a new law recently passed by the National Assembly prohibits ownership and operation of shell accounts in the country. The President Major General Muhammadu Buhari (retd.), had on Thursday assented to the Money Laundering (Prevention and Prohibition) Bill, 2022, the Terrorism (Prevention and Prohibition) Bill, 2022, and the Proceeds of Crime (Recovery and Management) Bill, 2022. The Money Laundering (Prevention and Prohibition) Act, a copy of which was obtained by our correspondent on Monday, established a Special Control Unit Against Money Laundering under the Economic and Financial Crimes Commission, which is to monitor financial transactions within and outside Nigeria. Punch
Inflation hits 16.82%, exceeds IMF’s 2022 projection
The Consumer Price Index rose to 16.82 per cent in April from 15.92 per cent in March, latest figures from the National Bureau of Statistics have revealed. The NBS disclosed this in its ‘Consumer Price Index April 2022’ report on Monday. The report read in part, “In April 2022, the consumer price index, which measures inflation increased to 16.82 per cent on a year-on-year basis.” The International Monetary Fund had recently projected that Nigeria’s Consumer Price Index would hit 16.1 per cent in 2022. This projection was presented in a tabular illustration in the IMF’s ‘Regional Economic Outlook for Sub-Saharan Africa’, which was published on its website. The latest inflation rate in April is the highest in the country since August 2021 when it was 17.01 per cent.The rise in the inflation rate in April shows that Nigeria is not left out in the global inflation surge. Punch
Marketers divert aviation fuel to foreign airlines, scarcity hits local carriers
Oil marketers have said the bulk of the aviation fuel in their stock is on reserve for foreign airlines, saying there is a need to abide by the contractual supply agreement signed with the international carriers. They spoke against the backdrop of the aviation fuel scarcity currently affecting domestic airline operators which have told their customers to prepare for imminent flight disruptions. According to the Airline Operators of Nigeria, the umbrella body for local airlines, the lingering aviation fuel scarcity is negatively impacting local airline operators. In a statement, they said, “The AON wishes to alert the public of impending disruptions to scheduled flight operations of members of the association. This development is being forced on members by the growing scarcity of aviation fuel popular as Jet-Al. “The scarcity is impacting negatively on the seamless conduct of air transport operations and would lead to flight rescheduling, and, or cancellations. Punch
Nigeria’s Rigs Count Remains Stunted as Oil Sector Investments Wane
With investment waning and oil production declining, Nigeria’s overall oilrigs count, which generally mirrors the measure of activities in the upstream sector, has continued to stagnate, a THISDAY analysis has shown. As reflected in the latest Monthly Oil Market Report (MOMR) released by the Organisation of Petroleum Exporting Countries (OPEC), Nigeria, Africa’s biggest oil producer, has not markedly expanded its capacity in the last few years. Instead, while there are assurances from the Nigerian National Petroleum Company Limited, (NNPC) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) that they are “doing everything” to ramp up production, the number of oil rigs tell a different story. In all Nigeria’s share of the global rig count as of April, according to the data released in May, has become insignificant, remaining at just 11 of the world’s total of 1,735 and OPEC’s total count of 390. This Day
Manufacturing Sector’s Marginal Decline in Q1, ’22
The MCCI report of the Manufacturers Association of Nigeria for the first quarter of 2022 recorded marginal decline in the productivity of the industrial sector, Dike Onwuamaeze writes. The Manufacturers CEO’s Confidence Index (MCCI) of the Manufacturers Association of Nigeria (MAN) recorded a marginal decline of 1.5 points in the first quarter of 2022 when compared with the point it achieved in the fourth quarter of 2021. The latest MCCI report that was released in this month showed that index of score of the manufacturing sector in the first quarter of 2022 stood at 53.9 points, which was a decline of 1.5 points from 55.4 points index score of the fourth quarter of 2021. Yet, in spite of the slight decline, the latest MCCI report still confirmed sustained confidence of the sector on the economy during the quarter under review. This Day