- Equities Gains N16bn, OTC FX Futures Contract Matures
The equities market appreciated slightly on Thursday by N16bn as the Nigerian Stock Exchange market capitalisation closed at N9.105tn from N9.089tn.
The NSE All-Share Index also rose to 26,464.82 basis points from 26,418.11 basis points as a total of 188.684 million shares worth N1.387bn exchanged hands in 3,161 deals.
The Nigerian bourse clung to a slim gain, halting a three-day downtrend largely on the back of a rally in the oil and gas sector.
The oil and gas sector snapped a five session losing streak to lead the pack in Thursday’s session, buoyed by firm gains in Forte Oil Plc, Conoil Plc and Oando Plc by 10.24 per cent, 10.20 per cent and 4.29 per cent, respectively.
Also, the industrial goods sector traded higher buoyed by advances in Beta Glass Plc and Cement Company of Northern Nigeria Plc by 10.21 per cent and 4.75 per cent, respectively.
The consumer goods sector closed relatively flat amid mixed performances across Guinness Nigeria Plc, Honeywell Flour Mill Plc and International Breweries Plc by 1.41 per cent, 4.65 per cent and 3.67 per cent, respectively.
The financial services sector slid further albeit marginally as declines in United Bank of Africa Plc and Guaranty Trust Bank Plc by 1.09 per cent and 0.56 per cent, accordingly, were watered down by gains in FBN Holdings Plc, FCMB Group Plc and Access Bank Plc.
Market breadth turned positive with 18 advances and 15 declines.
Meanwhile, the sixth OTC forex futures contract (NGUS Dec 21 2016), with notional amount of $477.45m, matured and was settled on December 21, 2016 on FMDQ OTC Securities Exchange.
This brings the total value of contracts so far matured on the OTC Exchange to circa $1.53bn, and about $5.02bn worth of OTC forex futures contracts traded so far.
The contract, which stopped trading on December 13, 2016, was valued against the Nigerian inter-bank foreign exchange fixing spot rate as published by FMDQ on December 21, 2016, with the associated clearing/settlement effected by the Nigeria Inter-Bank Settlement System Plc, in line with the FMDQ OTC forex futures market operational standards.
Consistent with its treatment for the previous five maturities (July – November 2016), the Central Bank of Nigeria introduced a new contract, NGUS DEC 27 2017, for $1.00bn at $/274.00 to replace the matured contract and refreshed its quotes on the existing 1 to 11-month contracts.
Market participants are hopeful that the efforts of the CBN, towards resuscitating the vibrancy of the nation’s forex market would, in the coming year, yield the desired results and invariably allow for the potential of the OTC forex futures market to be fully maximised by businesses, investors, governments, among others, with forex exposures.
Niger Insurance to Sell Property Worth N15bn in Recapitalisation Move
Niger Insurance Plc said it is working on a plan to sell off N15 billion worth of real estate and investment property to boost its cash flow and meet the liquidity requirements of the insurance industry.
Mr. Edwin Egbiti, the Managing Director of the company disclosed this during the company’s 2019 annual general meetings held virtually in Lagos recently.
He said, “Subsequent to the requisite approvals of the board on behalf of shareholders, a number of the company’s real estate and investment property valued at N15bn have been put on sale in order to improve liquidity/cash flows, ensure reserve adequacy and improve solvency margins.
“We are encouraged by the progress made so far, and confident that both capital restructuring and recapitalisation efforts will be successful in line with National Insurance Commission’s regulatory timelines.”
It added that Niger Insurance recognised that its people were the company’s most critical assets without whom its goals and plans would remain elusive.
AMCON Takes Over Inducon Nigeria’s Assets Over N1.3 Billion Debt
The Asset Management Corporation of Nigeria has taken over the assets of Dr. John Abebe, the Chief Promoter of Inducon Nigeria Limited over N1.3 billion debt.
According to a statement signed by the Head, Corporate Communications Department, AMCON, Jude Nwauzor, and titled ‘N1.3bn debt: AMCON takes over assets of Inducon Nigeria Limited’ the decision followed the order of Honourable Justice Aikawa of the Federal High Court, Lagos.
“In compliance with the enforcement order, AMCON at the weekend took effective possession of the property situate at Plot12, Block 108, Lekki Peninsula Residential Scheme, Lagos, through its debt recovery agent – Ogunsola Shonibare L.P.
“The court also ordered that the bank accounts of the company and its directors, Dr. John Abebe, Mr Olawole Fatimilehin and Ademola Buraimoh, be frozen pending the final determination of the suit.”
The asset management corporation said the case of Dr. John Abebe and Inducon Nigeria Limited started shortly after the loan was procured by AMCON in 2011 during the first phase of Eligible Bank Asset purchases from the defunct FinBank, Now FCMB.
CBN Pays N14.35 Billion for 263,860 Meters to End Estimated Billings
The Central Bank of Nigeria (CBN) said it has disbursed a total sum of N14.35 billion to the Distribution Companies of Nigeria (DisCOs) for the payment of 263,860 meters under the National Mass Metering Programme (NMMP).
In November 2020, the Federal Government announced that it would make funds available for 1 million meters in the first phase of President Buhari Mass Metering Initiative at no cost to consumers.
Between November 2020 and January 2021, the Federal Government through the CBN has disbursed N14.35 billion.
However, according to the apex bank DisCOs must pay back the amount disbursed based on the previously agreed amortisation schedule.
“The facility disbursed is a loan that must be repaid by the DisCos on the basis of the previously agreed amortisation schedule. The repayment is to be deducted from payments made by consumers into the DisCos accounts with Deposit Money Banks (DMBs),” the CBN stated.
“The maximum tenor of the facility is 10 years but not exceeding 2030, while the moratorium on the principal amount is for a period not exceeding 24 months from the date of loan disbursement.”
A week ago, the Ibadan Electricity Distribution Company (IBEDC) announced it has commenced the distribution of 104,0000 free meters in Ibadan, Oyo State.
This, the IBEDC said was under the ongoing National Metering Scheme of president Muhammadu Buhari.
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