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Naira to Extend Gain Against Dollar

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500 and 1000 naira bills (Nigerian currency)
  • Naira to Extend Gain Against Dollar

The naira is expected to extend further its gain against the United States dollar owing to weak demand and increased supply of the greenback.

The local unit, which closed at 370/dollar on Monday, closed at 365/dollar on Thursday.

According to analysts and foreign exchange traders, the naira is expected to be range bound against the US currency next week as weak demand coupled with increased dollar supply from the central bank and other sources provide support for the local currency.

The naira was quoted at 365 on the black market on Thursday.

It traded at around 360 to the dollar for investors but was stuck at 305.85 on the official market, Reuters reported on Thursday.

“We expect some stability due to weak demand and increased supply of dollars, coupled with the Muslim holiday,” the President, Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, told Reuters.

The nation’s financial market will reopen next Tuesday after the two-day Muslim holiday.

According to Reuters, the Tanzanian shilling is expected to hold steady in the coming days, but could weaken slightly if there is a spike in demand for the US dollars from energy and construction sectors.

“There is pressure on the shilling from oil and infrastructure companies. If the demand for dollars increases, the shilling could marginally weaken next week although 2,250 is seen as the resistance level,” said a trader at CRDB Bank.

Kenya’s shilling is next week expected to take its cue from a court ruling on a petition challenging the re-election of President Uhuru Kenyatta, while the Ugandan shilling is likely to weaken on increased demand for hard currency.

The Kenyan shilling would get price direction from Friday’s Supreme Court ruling on a petition brought by opposition leader Raila Odinga challenging the re-election of Kenyatta, traders said.

The shilling firmed to a two-month high against the dollar after Kenyatta won with a margin of 1.4 million votes. The court will either uphold the outcome or overturn it. If it chooses to overturn the result, another vote must be held in 60 days.

The Ugandan shilling was expected to trade in a weakening tone with demand for hard currency seen picking up as the year’s fourth quarter nears.

“As we approach the last quarter, we anticipate demand to start picking up and that will probably see the unit (shilling) move lower (weaker),” said Faisal Bukenya, head of treasury at Exim Bank in the capital Kampala.

The kwacha is likely to remain range-bound in the coming week due to matching demand and supply of hard currency.

“It is likely to trade flat next week because demand and supply seem to have reached an equilibrium,” independent financial analyst Maambo Hamaundu said, referring to the kwacha.

Ghana’s cedi is considered stable on news of a successful review and extension of the country’s $918m aid programme with the International Monetary Fund.

The local unit which has been fairly stable this year, recorded a marginal loss in the past week on unmet corporate dollar demand, despite regular central bank support.

The International Monetary Fund on Wednesday granted an extension to Ghana’s three-year deal for an extra year beyond its original April 2018 end date and approved the next tranche of balance of payment support of $94.2m to the country.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

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Nestle

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.

The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.

Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.

It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.

Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.

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Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

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Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

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Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

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