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Investment in Exchange-traded Funds Drops by N1.9bn

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  • Investment in Exchange-traded Funds Drops by N1.9bn

The total value of investment in Exchange Traded Funds dropped by N1.9bn in one year, data from the Securities and Exchange Commission have shown.

ETFs are professionally managed vehicles designed to give investors broad exposure to the market by tracking an index (market capitalisation allocations) or specialised themes that consider factors such as value and growth investing (smart beta strategy).

They give institutional and individual investors access to a wide range of asset classes such as stocks, bonds, commodities, real estate and investment themes such as shariah investing, sector bias, and dividend yield, among others.

The total value of investment in ETFs as of January 2018 stood at N6.65bn but dropped to N6.24bn in May 2018.

After a space of one year, the value of investment dropped further to N4.74bn as of May 31, 2019.

The Nigerian Stock Exchange said in a statement that it had commenced a three-day enlightenment campaign to increase investors’ awareness and participation in ETF market.

It said the campaign would run from June 26 to June 28, 2019.

The bourse said it would engage investors through social media, radio, email and in-house workshop, on the benefits of ETFs as a transparent and low-cost investment option.

The Divisional Head, Trading Business Division, NSE, Mr Jude Chiemeka, while speaking on the campaign, said the initiative was in line with the NSE’s strategic objective of providing new and accessible opportunities for citizens to create durable wealth.

He said the Exchange continued to showcase the benefits of ETFs as a sound and viable investment option to tap into the capital markets.

“I am pleased with efforts made by ETF providers and advisers to create and introduce more ETFs that align with the needs of institutional and retail investors, thereby deepening the ETF market segment,” Chiemeka said.

He added, “ETFs can be purchased on the NSE just like stocks and bonds through dealing member firms as well as online trading platforms.

“Investors are advised to take advantage of the discounted trading fee regime offered by the ETF Market Authorised Dealers – Stanbic IBTC Securities Limited and Vetiva Securities Limited ― which is open till the end of June 2019.”

In the equities market, the bearish sentiment, which has been witnessed for a while, continued as investors’ losses totalled N106.8bn in the last three days.

The market, which recorded a slight gain on Friday last week, shed all its gains as it resumed its bearish streak, shedding N18bn on Monday, N52bn on Tuesday and N36bn on Wednesday.

Analysts at Afrinvest Securities Limited said they expected the bearish sentiment to be sustained in subsequent trading sessions, barring the occurrence of a major catalyst in the market.

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.

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Access Bank in Talks to Acquire Cavmont Bank

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Access Bank to Acquire Cavmont Bank in Zambia

Access Bank Plc on Wednesday announced that its wholly-owned subsidiary in Zambia, Access Bank Zambia Limited (Access Bank Zambia) is in talks to acquire Cavmont Bank Limited, a subsidiary of Cavmont Capital.

According to the statement signed by Mr. Sunday Ekwochi, Company Secretary, Access Bank and released on the Nigerian Stock Exchange website on Wednesday, the ongoing discussions is to acquire 100 percent of Cavmont Capital’s interest in Cavmont Bank.

However, the lender said “there can be no certainty that a transaction will be agreed, nor as to the terms of any such agreement.

“The completion of a transaction would be subject to formal regulatory approvals. Access Bank will be updating the market as appropriate and in accordance with its disclosure obligations.”

The lender, therefore, advised shareholders to exercise caution when dealing in Access Bank’s securities.

Investors King Ltd note: This announcement further threw more lights on the recent purchases of Access Bank’s shares by Herbert Wigwe, the Chief Executive Officer and Managing Director, Access Bank.

The CEO/MD purchased 7.532 million of Access Bank‘s shares in the last one month.

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Mohammed Umar is the New Acting Chairman of EFCC

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Buhari Appoints Mohammed Umar as EFCC Acting Chairman

President Muhammadu Buhari has appointed, Mohammed Umar, the director of operations at the Economic and Financial Crimes Commission (EFCC), as the new Acting Chairman of the agency, according to the NAN.

A top official of the commission confirmed to NAN that Umar has taken charge of the agency following the suspension of Ibrahim Magu, the former acting Chairman.

Ibrahim Magu was suspended by the President on Tuesday following series of allegations bordering on frauds, financial misappropriations and abuse of power.

 

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CBN Spends $11.5bn in Q1 2020 to Support the Economy and Dwindling Naira

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CBN Injects $11.5bn Into the Economy in the First Quarter

The Central Bank of Nigeria (CBN) injected a combined $11.5 billion into the nation’s foreign exchange market to stabilise the economy and support the Naira value in the first quarter of the year.

According to the latest report from the apex bank, the central bank injected $2.96 billion into the nation’s forex market in the month of January. Another $3.39 billion was used to support the economy in February while $4.7 billion was supplied in the month of March, the very month the economy was locked and all operations grounded to curb the spread of COVID-19.

A further breakdown of the report revealed that the Investors and Exporters’ foreign exchange window, Small and Medium enterprises and Invisible segments received a total of $7.23 billion of the $11.5 billion, the Bureau De Change segment received $3.6 billion while the Interbank and WDAS/RDAS got the rest in the first quarter.

The report noted that the apex bank injected a total sum of $14.72 billion and $28.55 billion into the economy in 2018 and 2019, respectively.

Meanwhile, the central bank is yet to commence the sales of forex to the bureau de change following the March suspension.

But has commenced partial sales to all commercial banks for onward sales to parents and small businesses across the country.

Mr Isaac Okorafor, the Director, Corporate Communications, CBN, had said, “The CBN has also made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels and other designated retail uses, as soon as international flights resume.”

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