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Nigerian Capital Market Issuances Hit N1.55trn in September – SEC



security and exchange commission
  • Nigerian Capital Market Issuances Hit N1.55trn in September – SEC

The Securities and Exchange Commission (SEC) on Sunday said that the total value of issuances in the Nigerian capital market amounted to N1.55 trillion in September.

Dr Abdul Zubair, SEC Acting Director-General, made the disclosure at the 2017 annual conference of Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos.

Zubair said that the issuances included equities, bonds and unlisted securities among others.

Zubair said that the equities accounted for 12 per cent of the total value of issuances in the market during the period.

He said that the secondary market total equities transactions appreciated by 78.6 per cent to N1.66 trillion between 2016 and September 2017.

The acting director-general said that foreign transactions increased by 47.31 per cent during the period.

He added that the Nigerian Stock Exchange (NSE) All-Share Index had returned 47.11 per cent as at Dec. 7, showing a remarkable recovery.

On the theme, “Deepening the Nation’s Capital Market for Economic Growth’’, Zubair said that the commission had designed and implemented laudable programmes to create more awareness and further deepen the market.

He said that SEC joined its counterparts all over the world to mark the IOSCO World Investors Week in Abuja and Lagos, bringing together stakeholders, investors and students to promote financial inclusion.

According to him, an ivestor education portal dedicated to educate investors on financial literacy and activities of the capital market has been designed and contents uploaded to deepen market participation.

Zubair said that the portal would soon be launched to become accessible to all market participants.

He, however, assured the investing public and stakeholders of its commitment of ensuring an uninterrupted and orderly operation of the market and regulations.

Zubair said that the commission would continue to ensure market efficiency, accountability and transparency in the capital market.

He enjoined the media to continue to support the commission in disseminating information about the capital market.

“The commission is poised to continue to ensure the stability of the Nigerian capital market and maintain the high level of investor confidence observed in the market,’’ Zubair said.

He said that SEC set up and inaugurated the board of the National Investor Protection Fund (NIPF) to restore investor confidence in the market, noting that hundreds of investors till date had benefited from the fund.

“It will be recalled that from a peak of N12.6 trillion in March 2008, the stock market suffered a setback arising from the global financial crisis, plummeting to N7.3trillion by December of that year.

“Retail investors became apathetic to investment in the capital market. In order to restore their confidence, the National Investor Protection Fund was set and inaugurated by the SEC board.

“To date, hundreds of investors have benefited from the fund, which enabled them to get protection in the event the crash,’’ he said.

There are a host of other measures the commission is pursuing to develop the capital market in a bid to make the dream of making the market the most developed in Africa by 2025 a reality.

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

Crude Oil

Crude Oil Hits $71.34 After Saudi Largest Oil Facilities Were Attacked




Brent Crude Oil Rises to $71.34 Following Missile Attack on Saudi Largest Oil Facilities

Brent crude, against which Nigerian oil is priced, jumped to $71.34 a barrel on Monday during the Asian trading session following a report that Saudi Arabia’s largest oil facilities were attacked by missiles and drones fired on Sunday by Houthi military in Yemen.

On Monday, the Saudi energy ministry said one of the world’s largest offshore oil loading facilities at Ras Tanura was attacked and a ballistic missile targeted Saudi Aramco facilities.

One of the petroleum tank areas at the Ras Tanura Port in the Eastern Region, one of the largest oil ports in the world, was attacked this morning by a drone, coming from the sea,” the ministry said in a statement released by the official Saudi Press Agency.

It also stated that shrapnel from a ballistic missile dropped near Aramco’s residential compound in Eastern Dhahran.

Such acts of sabotage do not only target the Kingdom of Saudi Arabia, but also the security and stability of energy supplies to the world, and therefore, the global economy,” a ministry spokesman said in a statement on state media.

Oil price surged because the market interpreted the occurrence as supply sabotage given Saudi is the largest OPEC producer. A decline in supply is positive for the oil industry.

However, Brent crude oil pulled back to $69.49 per barrel at 12:34 pm Nigerian time because of the $1.9 trillion stimulus packed passed in the U.S.

Market experts are projecting that the stimulus will boost the United States economy and support U.S crude oil producers in the near-term, this they expect to boost crude oil production from share and disrupt OPEC strategy.

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Crude Oil

A Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site



Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

Two residents from the eastern city of Dhahran, Saudi Arabia, on Sunday said they heard a loud blast, but they are yet to know the cause, according to a Reuters report.

Saudi’s Eastern province is home to the kingdom’s largest crude oil production and export facilities of Saudi Aramco.

A blast in any of the facilities in that region could hurt global oil supplies and bolster oil prices above $70 per barrel in the first half of the year.

One of the residents said the explosion took place around 8:30 pm Saudi time while the other resident claimed the time was around 8:00 pm.

However, Saudi authorities are yet to confirm or respond to the story.


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Crude Oil

Brent Crude Oil Approaches $70 Per Barrel on Friday



Crude oil

Nigerian Oil Approaches $70 Per Barrel Following OPEC+ Production Cuts Extension

Brent crude oil, against which Nigerian oil is priced, rose to $69 on Friday at 3:55 pm Nigerian time.

Oil price jumped after OPEC and allies, known as OPEC plus, agreed to role-over crude oil production cuts to further reduce global oil supplies and artificially sustain oil price in a move experts said could stoke inflationary pressure.

Brent crude oil rose from $63.86 per barrel on Wednesday to $69 per barrel on Friday as energy investors became more optimistic about the oil outlook.

While certain experts are worried that U.S crude oil production will eventually hurt OPEC strategy once the economy fully opens, few experts are saying production in the world’s largest economy won’t hit pre-pandemic highs.

According to Vicki Hollub, the CEO of Occidental, U.S oil production may not return to pre-pandemic levels given a shift in corporates’ value.

“I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan. “And so I do believe that that’s going to be part of the reason that oil production in the United States does not get back to 13 million barrels a day.”

Hollub believes corporate organisations will focus on optimizing present operations and facilities, rather than seeking growth at all costs. She, however, noted that oil prices rebounded faster than expected, largely due to China, India and United States’ growing consumption.

The recovery looks more V-shaped than we had originally thought it would be,” she said. Occidental previous projection had oil production recovering to pre-pandemic levels by the middle of 2022. The CEO Now believes demand will return by the end of this year or the first few months of 2022.

I do believe we’re headed for a much healthier supply and demand environment” she said.

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