Connect with us

Finance

Finally, Equities Market Slides into Negative Territory after 11-day Bear Run

Published

on

Forex Market
  • Finally, Equities Market Slides into Negative Territory after 11-day Bear Run

The stock market finally slipped into the negative territory Thursday after 11 days of sustained dominance by the bears.

The selloffs, mostly in bellwether stocks, pulled the Nigerian Stock Exchange (NSE) All-Share Index 1.29 per cent lower to close at 38,104.54, while market capitalisation ended at N13.803 trillion. The market has consequently, entered into negative territory with a year-to-date (YTD) decline of 0.31 per cent.

The market, which recovered from a three-year decline to a growth of 42.3 per cent last year, was projected to sustain the growth in the current year. Although, the market gained 8.5 per cent in first quarter (Q1), the bears took control since the beginning of the second quarter as investors reviewed their positions in many oversold stocks.

As a result, the months of April and May posted negative performances, with May recording the steepest fall of 7.6 per cent, thereby pushing the market into negative zone yesterday.

According to analysts at Meristem Securities Limited, the month of May has been on a bearish run, with the YTD return slipping into the negative region at the end of the month.

“Profit taking activities on bellwether counters in the consumer goods, banking and industrial goods spaces drove the market down today. This week, the market is on a path to a negative close, given the losses recorded so far on all trading days of the week,” they said.

Also commenting, analysts at Cordros Capital Limited (CCL) said that continued selloffs call for cautious trading among investors in the short term.

“However, falling prices make room for bargain hunting in value stocks, as still-strengthened macroeconomic fundamentals remain supportive of gains in the medium to long term,” they said.

CCL in its 2018 outlook economic titled “Nigeria in 2018: Looking Beneath the Surface” had favoured the equities market, saying when compared to the last two years, Nigeria’s macro outlook, wherein there are seemingly more tailwinds than headwinds, is more favourable to equities.

While they made strong case for equities upside potential, they also considered the number of possible risks that could trigger equity downdrafts this year.

According to them, the outlook for equities comprised three scenarios.

They said the first scenario assumes that equities will return excess of 40 per cent in 2018, second scenario assumes about 10 per cent to 15per cent equities return while, the last scenario assumes equities will deliver between 20 per cent to 25per cent negative return in 2018.

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 long experience in the global financial market.

Continue Reading
Comments

Finance

DSS Arrests EFCC, Acting Chairman, Magu

Published

on

Dss Arrests Ibrahim Magu

DSS Arrested Magu, the Acting Chairman of EFCC

The Department of State Services (DSS) has arrested the acting chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, on allegation bordering on financial misappropriation, abuse of power and embesslement.

The Acting Chairman was accused of siphoning part of the money recovered from looters, a Punch reported stated.

The report stated “It was learnt that the security details to Magu put up a stiff resistance during the arrest of their principal, as they objected to the DSS move.

But he is now undergoing interrogation at the DSS Headquarters In Aso Drive.

This is happening barely two weeks after the Attorney-General of the Federation, Abubakar Malami (SAN) reportedly complained to the President, Major General Muhammadu Buhari (retd.) about Magu’s conduct and advised that he should be relieved of his appointment.

The AGF was said to have accused Magu of insubordination and discrepancies in the figures of funds recovered by the EFCC.

Continue Reading

Finance

Again CBN Debits Banks N118 Billion for Failing to Meet CRR Target

Published

on

central-bank-of-nigeria

CBN Debits Deposit Money Banks N118bn for Not Meeting CRR Target

The Central Bank of Nigeria (CBN) on Friday debited the nation’s deposit money banks a total sum of N118 billion for failing to meet 27.5 percent Cash Reserve Ratio (CRR) target.

This is the fourth of such action, bringing the total amount debited so far this year to N2.2 trillion.

According to Tunde Abidoye, an analyst at Lagos-based FBN Quest, the move brings “further downward pressure on banks liquidity ratios and earnings.”

“Based on the total sum that each bank has been debited this year, and our NIM assumptions for each bank, we estimate an aggregate opportunity cost of funds of N86bn for our universe of banks coverage,” Abidoye stated in a note to clients.

The central bank continues to debit banks to force them to loan more into the real sector and also reduce their forex purchasing power to better manage the nation’s weak foreign reserves and curb capital outflow. A series of recent reports have pointed to a possible foreign exchange devaluation to ease pressure on the nation’s reserves.

The report shows that the Stanbic IBTC and Guaranty Trust Bank were debited N15 billion each.

Details later…

Continue Reading

Finance

Debt Market: Dangote Cement Raises N250 Billion in H1, 2020

Published

on

Prime Real Estate Development At Eko Atlantic City

Dangote Cement Raises N250 Billion From Debt Market in H1 2020

Dangote Cement raised a total sum of N250 billion from the nation’s debt market in the first half of the year, according to the FMDQ Securities Exchange Limited.

In the statement published on the FMDQ website, the N250 billion debt includes the N100 billion Series 1 Bond raised under Dangote Cement’s N300 billion Bond Programme and the N150 billion Commercial Paper (Series 13-16 Domestic CP Issuance Programme) offered earlier in the year and now listed and quoted on FMDQ Securities.

Mr Michel Puchercos, the Chief Executive Officer, Dangote Cement, was quoted as saying, “This landmark transaction is the largest-ever bond issuance by a corporate issuer in Nigeria.

“It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market and builds further on the success of our domestic commercial paper programme.

“The success of these transactions, in the current challenging environment, illustrates investors’ continuous confidence in Dangote Cement’s strategy, strong cash generation and solid credit profile.”

Mr Kobby Bentsi-Enchill, the Executive Director and Head of Debt Capital Markets, Stanbic IBTC Capital Limited, said, “Stanbic IBTC Capital Limited has a long history of partnering with Dangote Cement Plc, and are delighted to have advised on this landmark corporate bond issuance, which reflects the depth and diversity of the Nigerian debt capital markets.”

Continue Reading
Advertisement
Advertisement
Advertisement
Advertisement

Trending