Headlines news – First Ideas Limited

Headlines news

Investors Gain N643.13bn as NGXASI Inches up by 2.93%, Closes Above 43,000bpts

Equities market closed on a positive note, as NGXASI appreciated by +2.93% to close at 43,246.87 basis points as against +0.17% appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at +7.39%.         

Market breadth closed negative as AIRTELAFRI led 18 Gainers as against 25 Losers topped by CONOIL at the end of today’s session – an improved performance when compared with previous outlook.  

Market turnover closes positive as volume moved up by +60.12% as against +72.21%  uptick recorded in the previous session. STERLNBANK, UACN and FBNH were the most active to boost market turnover.  ZENITHBANK and MTNN topped market value list.

UACN leads the list of active stocks that recorded impressive volume spike at the end of today’s session.

Nigerians pay most for food since 1999

Nigerians are paying the most for food under this administration than they have in the last 22 years (1999). No fewer than 63 percent of Nigerians spend over 70 percent of their income on food as inflation rises spontaneously under the regime of President Muhammadu..

Peep into 2022 budget reveals N227bn padding

Experts have called for the need to cut down frivolous and inappropriate estimates amounting to over N227 billion in the 2022 appropriation bill. This follows the current economic and fiscal crisis in Nigeria, where retained revenue simply pays for debt service

Nigeria’s mutual fund industry shed N202bn in 10 months

Dampened investors’ appetite for low yielding mutual fund instruments has cost the industry N202.39 billion in assets between January and October 22 2021. Investors’ decision to redirect and reduce their stakes in five of the mutual funds instruments amid the search for high yielding assets fueled th

MTN share price up almost 200% year to date and to surge higher on Nigeria license

MTN, which on Friday received a provisional licence to operate its mobile money platform in Nigeria, is on track to generate a fifth of its revenue from fintech. Nigeria is the continent’s biggest market but only a small percentage of the population use a bank account, making mobile money a very attractive prospect,

Jaiz Bank posts highest 9-month profit on record

Nigeria’s premier non-interest bank, Jaiz Bank Plc has grown its nine-month by most in five years as income from its businesses surged. The Bank saw its nine-month profit surge 57.3 percent to N2.91 billion in the period ended September 30, 2021 from N1.85 billion reported in the same period of 2020

Moody’s Downgrades Dangote Cement Plc Ratings to B2, Outlook Negative

Moody’s Investors Service (“Moody’s”) has downgraded Dangote Cement plc (“DCP”) long term corporate family rating (CFR) to B2 from B1, the national scale long term corporate family rating to Aa3.ng from Aa2.ng and the probability of default rating (PDR) to B2-PD from B1-PD. At the same time, Moody’s has affirmed the (P)B2 local currency rating and Aa3.ng national scale rating assigned to the NGN300 billion domestic medium-term note program (DMTN) and the B2 local currency and Aa3.ng NSR to the senior unsecured notes issued by DCP. Moody’s has also changed the outlook to negative from ratings under review. 

“The downgrade of the CFR to B2 is driven by the increase in dollar debt in DCP’s capital structure which was not initially contemplated in the B1 rating. This exposes DCP to increased currency risks because most its cash flow are generated in naira and other African currencies and the fact that all the dollar debt has maturities of less than a year. This currency risk is captured under Moody’s B2 foreign currency ceiling of Nigeria which is limiting the ability of DCP to be rated higher”, say Dion Bate (Vice President – Senior Analyst), the lead analyst for Dangote Cement. “The downgrade however is not driven by concerns around the cement fundamentals in Africa or the business, which continues to perform strongly”, adds Mr. Bate.

This rating action of November 5th 2021 concludes the review for downgrade, which was initiated on 5 August 2021.

US Shale is Finally Ready to Open the Taps – OIR 051121

International oil majors have suggested US shale output might see tangible increases over 2022 as many are seeking to utilize their windfall profits by investing in shale. With producers less likely to hedge their annual production next year.

OPECplus Maintains Supply Output of 400,000bpd in December

At its just-concluded meeting, the organization of the petroleum exporting countries and its allies (OPEC+) again retained its monthly oil output of 400,000bpd in December.  

Mining and Quarrying: A Potential Growth Driver

 Our chart today shows growth movements of the mining and quarrying sector since 2016. The domestic mining industry (excluding crude petroleum and natural gas) accounts for just 0.2% of Q2 ’21 GDP and is grossly underexploited.  

 ABP Loans: CBN to Seize Defaulting Farmers’ Collateral

The Central Bank of Nigeria has said farmers who fail to repay the loans collected under its Anchors Borrowers Programme will be barred from accessing a new facility and have their pledged collateral foreclosed.  

Pay Royalties Promptly, NUPRC Tells Oil Companies

 The Nigerian Upstream Petroleum Regulatory Commission, one of the two new regulators in the nation’s oil and gas industry, has told oil and companies operating in the country to pay their royalties as and when due. 

NLNG to Increase Supplies to Curb Cooking Gas Shortage, Crash Price

Poised to tackle gas shortages in the country, the Nigeria Liquefied Natural Gas (NLNG) has unveiled plans to reduce its Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, exports in order to increase supply to the domestic market and crash the soaring price. 

NPA: Lagos Ports Operating Above Capacity – We Need to Improve Efficiency

The Nigerian Ports Authority (NPA) says the two ports in Lagos – Lagos Port Complex and Tin Can Island Port Complex – are operating above their installed capacity. Mohammed Bello-Koko, NPA acting MD, said this while speaking with journalists on Sunday in Lagos.

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First Ideas Limited is an investment and financial advisory company established in 1994 to provide advisory services to high net worth individuals, trust funds, financial institutions and medium sized companies in growth sectors.

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