Markets

Stockbrokers to Brainstorm on National Economic Growth

Published

6 years ago

September 26, 2018

Nigerian Exchange Limited - Investors King

Stockbrokers to Brainstorm on National Economic Growth

Stockbrokers and other major stakeholders in the Nigerian economy will take a long view of the post-election period to chart ways for sustainable national growth and development.

At the 22nd annual conference of the Chartered Institute of Stockbrokers (CIS) scheduled for next week in Lagos, financiers and economic experts will dissect critical issues that must be addressed to attract both domestic and global investors to the Nigerian capital market and build a strong capital base for national growth.

Addressing capital market correspondents yesterday in Lagos, Chairman, Conference Committee of CIS, Mrs Lilian Olubi said this year’s conference was designed to address developmental issues that would move the market to the next level.

According to her, the growth of the Nigerian economy largely influences the growth within the capital market, thus key policies already designed by the government and associated authorities would be worthy of consideration.

“Nigeria and all stakeholders have cast focus to the 2019 general elections which is already fast approaching. The end of the election will either retain the incumbent who will be focused on improving his achievements in his first four years or produce a new government that may likely develop new framework to achieve his own ambition. Regardless of the outcome, it is apparent that focus would be on improving the Nigerian economy, thus we deem it fit to also channel discussions what the focus should be after 2019 elections,” Olubi said.

She added that regulatory approach to capital market architecture would also form a vital part of discussion at the conference noting that a digital economy has been a key driver of growth in major developments markets across the world.

“Digitization of activities and transactions has helped to boost market depth, investor participation and seamless operations. In Nigeria, FINTECHs are fast becoming a tool for pooling retail savings, executing similar technology to pool retail investments would help boost investor participation,” Olubi said.

First Vice President, Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe said the annual conference has remained a major platform where capital market regulators, top-level government functionaries and members of the Organized Private Sectors discuss issues that affect the economy and the way forward.

He noted that leaders of shareholders’ associations are usually invited to the conference for their inputs as part of stakeholders in the capital market ecosystem

Commenting on low level of product development by stockbrokers, a member of the Conference Committee, Mr Akeem Oyewale said it was not for lack of ideas or unwillingness but due to regulatory issues such as taxation and its effects on finance business in Nigeria.

He noted that the annual conference allows capital market operators and regulators to continually explore ways to resolve issues and ways to development the market and the economy generally.

Registrar and Chief Executive Officer, Chartered Institute of Stockbrokers (CIS), Mr Adedeji Ajadi said the annual conference has been contributing to national policy making pointing out that many government’s policies had emanated from the previous conferences of the institute.

Ajadi cited the concepts and ideas of debt resolutions and forbearance that led to the creation of the Asset Management Corporation of Nigeria (AMCON) as part of the gains of the annual conference.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Crude Oil

Oil Prices Surge as Hurricane Threat Looms Over U.S. Gulf Coast

Published

3 days ago

September 9, 2024

Investors King

Oil jumped in Asian trading on Monday as a potential hurricane system approached the U.S. Gulf Coast, and as markets recovered from a selloff following weaker-than-expected U.S. jobs data on Friday.

West Texas Intermediate crude oil rose 72 cents, or 1.06%, to $68.39 a barrel while Brent crude oil was up 71 cents, or 1%, at $71.77 a barrel.

Prices had gained as much as $1 during early Asian trading before pulling back.

Analysts said the bounce was in part a reaction to a potential hurricane in the U.S. Gulf Coast.

A weather system in the southwestern Gulf of Mexico is forecast to become a hurricane before it reaches the northwestern U.S. Gulf Coast, the U.S. National Hurricane Center said on Sunday.

The U.S. Gulf Coast accounts for some 60% of U.S. refining capacity.

“Sentiment recovered somewhat from last week’s selloff,” said independent market analyst Tina Teng.

At the Friday close, Brent had dropped 10% on the week to the lowest level since December 2021, while WTI fell 8% to its lowest close since June 2023 on weak jobs data in the U.S.

A highly anticipated U.S. government jobs report showed nonfarm payrolls increased less than market watchers had expected in August, rising by 142,000, and the July figure was downwardly revised to an increase of 89,000, which was the smallest gain since an outright decline in December 2020.

A decline in the jobless rate points to the Federal Reserve cutting interest rates by just 25 basis points this month rather than a half-point rate cut, analysts said.

Lower interest rates typically increase oil demand by spurring economic growth and making oil cheaper for holders of non-dollar currencies.

But weak demand continued to cap price gains.

The weakness in China is driven by economic slowdown and inventory destocking, Jeff Currie, chief strategy officer of energy pathways at U.S. investment giant Carlyle Group, told the APPEC energy conference in Singapore on Monday.

Refining margins in Asia have slipped to their lowest seasonal levels since 2020 on weak demand from the two largest economies.

Fuel oil exports to the U.S. Gulf Coast fell to the lowest level since January 2019 last month on weaker refining margins.

Crude Oil

Oil Prices Rebound on OPEC+ Output Delay Talks and U.S. Inventory Drop

Published

6 days ago

September 5, 2024

Samed Olukoya

Oil prices made a modest recovery on Thursday on the expectations that OPEC+ may delay planned production increases and the drop in U.S. crude inventories.

Brent crude oil, against which Nigerian oil is priced, rose by 66 cents, or 0.9% to $73.36 per barrel while U.S. West Texas Intermediate (WTI) crude appreciated by 64 cents or 0.9% to $69.84 per barrel.

The rebound in oil prices was a result of the American Petroleum Institute (API) report that revealed that the U.S. crude oil inventories had fallen by a surprising 7.431 million barrels last week, against analysts 1 million barrel decline projection.

The decline signals better than projected demand for the commodity in the United States of America and offers some relief for traders on global demand.

John Evans, an analyst at PVM Oil Associates, attributed the rebound in crude oil prices to the API report.

He said, “There is a pause of breath and light reprieve for oil prices.”

Also, discussions within the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, are fueling speculation about a potential delay in planned output increases.

The group was initially expected to increase production by 180,000 a day in October 2024.

However, concerns over softening demand in China and potential developments in Libya’s oil production have prompted the group to reconsider its strategy.

Despite the recent rebound, analysts caution that lingering uncertainties around global oil demand may continue to weigh on prices in the near term.

Energy

Power Generation Surges to 5,313 MW, But Distribution Issues Persist

Published

1 week ago

September 4, 2024

Samed Olukoya

Nigeria’s power generation continues to get better under the leadership of President Bola Ahmed Tinubu.

According to the latest statement released by Bolaji Tunji, the media aide to the Minister of Power, Adebayo Adelabu, power generation surged to a three-year high of 5,313 megawatts (MW).

“The national grid on Monday hit a record high of 5,313MW, a record high in the last three years,” the statement disclosed.

Reacting to this, the Minister of Power, Adebayo Adelabu, called on power distribution companies to take more energy to prevent grid collapse as the grid’s frequency drops when power is produced and not picked by the Discos.

He added that efforts would be made to encourage industries to purchase bulk energy.

However, a top official of one of the Discos was quoted as saying that the power companies were finding it difficult to pick the extra energy produced by generation companies because they were not happy with the tariff on other bands apart from Band A.

“As it is now, we are operating at a loss. Yes, they supply more power but this problem could be solved with improved tariff for the other bands and more meter penetration to recover the cost,” the Disco official, who pleaded not to be named due to lack of authorisation to speak on the matter, said.

On Saturday, the ministry said power generation that peaked at 5,170MW was ramped down by 1,400MW due to Discos’ energy rejection.