News digest for the day – First Ideas Limited

News digest for the day

The Rights & Wrongs of Investing in Natural Gas
Should Multilateral Development Banks Finance Gas Projects? – Can natural gas ever be a “green” investment? Burning any fossil fuel inevitably makes the planet warmer. Yet switching power stations to gas from more carbon-intensive coal has helped countries cut their total emissions in the past. Source FDC Ltd Read More
Are Oil Prices Heading Back To $120? – OIR 280622
As we predicted last week, the temporary weakness in oil prices coming from a widespread futures sell-off by speculators was nothing more than just a respite before another upwards climb. The unchanged physical tightness in oil markets. Source Tom Kool of Oilprice Read More
Fuel Subsidy, Refinery Rehabilitation Gulped N1.3tn in Five Months – NNPC
The amount spent as subsidy on Premium Motor Spirit, popularly called petrol, and on refinery rehabilitation between January and May this year was N1.301tn, figures released on Monday by the Nigerian National Petroleum Company Limited showed. Source Punch Read More
Lagos Set to Unveil 30-year Development Plan
Lagos State Governor, Mr. Babajide Sanwo-Olu yesterday disclosed plan by the state to unveil a 30-year development plan. Sanwo-Olu said the development plan that would be launched at the forthcoming 9th Economic Summit of the State (known as Ehingbeti), was developed in pursuit of the state’s physical development. Source THISDAYLIVE Read More
The Markets in Review: Nigeria’s MSCI Index Eviction, déjà vu? – Coronation Research
Nigeria’s equity market is not a developed market, nor an emerging market but it is a recognized frontier market – so far. Last week MSCI Inc. floated the possibility of removing Nigeria from even this category. We have been here before and, if this happens, the immediate effects will be far from dramatic. Source Coronation Research Read More
Why Nigerians Should Invest in Federal Government Securities – CSL Stockbrokers
The Managing Director of CSL Stockbrokers Limited (a subsidiary of FCMB Group Plc), Mr. Abiodun Fagbulu, has advised Nigerians to invest more in the various federal government securities as they offer higher returns on investment. Source CSL Stockbrokers Read More
Federal Govt Raises Tax on Tobacco Products to 30%
In a bid to reduce the demand and consumption of tobacco products in the country, the federal government has commenced implementation of a new three-year tobacco tax regime with effect from 1st June 2022 to 2024. Source LeadershipNG Read More
Mixed Reactions from Stakeholders, As Increase in Aviation Fuel Price Threatens Airline Operations
The continuous increase in the price of aviation fuel, also known as, Jet A1 has continued to give stakeholders in the nation’s aviation sector, concern over profitability and existence of airline operators. Source LeadershipNG Read More
Kaduna Dry Port Sets for Domestic Export Warehouse Operation
The Kaduna Inland Dry Port (KIDP) is set to commence operation as Nigeria’s first Domestic Export Warehouse (DEW) to promote export of locally made goods and agricultural produce. Source The Guardian Nigeria Read More
Financial Inclusion in Nigeria: Closing the Gender Gap
This gender gap in financial inclusion is particularly challenging because there is incontrovertible evidence that increasing women’s financial access has immense economic and social advantages, as seen in Kenya, South Africa, Tanzania, and Uganda. Source Phillips Consulting Read More
Telecom Firms’ Operating Costs Rise by N265bn – NCC
The operating costs of telecommunication companies in Nigeria rose from N1.4tn in 2020 to N1.66tn in 2021, showing an increase of N265.25bn. This is according to the ‘2021 Subscriber/Network Data Annual Report’ by the Nigerian Communications Commission. Source Punch Read More
Proposed Tariff Hike May Raise Telcos’ Voice Revenue to N1.55tn – NCC Report
Telecommunications companies’ voice revenue could jump by at least N442.57bn to N1.55tn in a year if the price floor of calls is raised by the operators from N6.4 to N8.95. Source Punch Read More

Nigeria Eurobonds near junk, shut out of debt market
The high yields on Nigeria’s Eurobonds is making it impractical for the government to raise fresh dollar debt, effectively shutting Africa’s second largest oil producer out of the international capital market. The country’s latest $1.25 billion bond, which is due in 2029 and..
Nigeria flares N4trn worth of gas in 10 years
Nigeria flared natural gas worth over $13.3bn (N4 trillion) within the last 10 years, BusinessDay analysis show, volumes that could have helped dent demand shortage in Europe and meet critical power needs at home
CBN’s renewed liquidity squeeze strains interbank market
The continued intervention of the Central Bank of Nigeria (CBN) has triggered a liquidity squeeze in the interbank segment of the financial market, dealers told BusinessDay. The interbank market liquidity declined by 57.69 percent from N78 billion on June 20 to N33…
Telcos gain 9 million internet subscribers in five months
Telecommunication companies (telcos) in Africa’s biggest economy recorded an addition of 9 million new internet subscribers in the first five months of the year, the latest data from the Nigerian Communications Commission (NCC) have shown.
Stock market closes flat
Nigeria’s equities market closed flat on Wednesday, June 29 despite analysts’ expectation that it will record renewed bargain hunting as investors look forward to the first-half (H1) 2022 earnings season. Month-to-date (MtD), the market has decreased by 2.24percent while week-to-date (WtD) it has advanced by 0.19percent.
How renewable energy can solve Nigeria’s energy crisis
Fuel queues recently resurfaced in many filling stations across Nigeria following the shutdown of operations by some independent petroleum marketers who argue that they are no longer making reasonable profit by selling petrol at the government-stipulated price of N165 per litre.
Ginger farming turns new attraction in southern Nigeria
Agric researchers are going round southern Nigeria to boost ginger farming, reveal its huge profitability and mobilise South-East and South-South farmers to join the new craze. The Nigerian Export Promotions Council (NEPC) has also put its weight behind ginger production and export with the message that ginger…
Kora Opens UK Office as it Evolves its Pan-African Payment Infrastructure
Kora, the company building Africa’s high-fidelity payment infrastructure, today announces the launch of its UK office.
Kora partnered with the Government of Birmingham to power this expansion via the West Midlands Growth Company, an organisation responsible for driving regional investment promotion and economic development for the West Midlands and the UK.
Located at the heart of the UK’s fastest-growing region in terms of technology, Birmingham was chosen as Kora’s first UK office because of its solid infrastructure and ease of access to talent.
With this partnership, the West Midlands Growth Company will support Kora’s ambition to provide the infrastructure that allows local African businesses to go global and global companies to go local in Africa.
NGXASI Closes Flat; Debt Market Size Grows by 0.18% to Close at N28.06trn; IEFX Rate Depreciates to N424.8
1.1 NGX – Listed Equities
Nigerian Equities Market closed flat at the end of today trading activities.

The NGX All-Share Index closed flat at 51,802.48 basis points as against -0.31% loss recorded at the end of the previous trading session. In Naira terms, the NGX Market CAP records N810.63mln loss.
YTD, the NGXASI Stands at +21.27%
The total volume traded advanced by +32.38% to close at 416.47m, valued at N3.46bn and traded in 4,466 deals. MBENEFIT was the most traded stock by volume with 212.51m units traded while GTCO was the most traded stock by value which is put at N867.54m.
Sectoral performance was broadly positive as eight (8) NGX sector index closed northward, six (6) closed southward while four (4) closed flat. The NGX MERIVAL Index inched up by +0.65% while the NGX AFRHDYI dipped by -0.23% to top all sector indices otherwise.
Dangote index closed flat at 143.22 basis points while Elumelu index closed green with +0.83% gain recorded to close at 112.36 basis points.
At the close of trading, market recorded 16 gainers to 14 losers and 73 unchanged. IKEJAHOTEL topped the list of gainers UPL topped the list of losers. Thus, market breadth closed positive as the Market Breadth Index (MBI) is put at 0.03x.
Volume and Value Contribution
MBENEFIT led the volume’s chart with 51.03% contribution and closely followed by GTCO and UBA.

Source: NGX

GTCO led the value’s chart with 25.08% contribution and closely followed by NESTLE and ZENITHBANK

Source: NGX

NGX Corporate News
Fidelity Bank Plc notifies that it will audit its Financial Statements for the half year ended June 30, 2022. Upon completion of the audit, the Audited Financial Statements for the half year ended June 30, 2022 shall be submitted to the Central Bank of Nigeria for approval and thereafter, published in compliance with the provisions of the Nigerian Exchange Limited’s Rule Book and other relevant statutes/regulations. The Bank expects to publish its Audited Financial Statements on or before August 29, 2022.

1.2 NASD OTC Exchange – Unlisted Equities
The NASD market index inched up by +0.08% to close at 763.24 basis points as against +0.07% gain recorded previously.
The total volume traded declined by -18.88% to close at 75,550 units valued at N10.12m and traded in 20 deals.
At the close of trading, NASD OTC market recorded 1 gainer(s) to 1 loser(s)

Volume and Value Contribution
SDNASDPLC led the volume chart with 75.81% contribution

SDNDEP led the value chart with 55.19% contribution

1.3 Global Indices
On the global scene, the Argentina MerVal Index leads the top five gainers with 1.65% gain while the Austria ATX tops the top five losers with -1.89% loss as of 4pm Nigerian Time

1.4 African Indices
Similarly on the African scene, the Egypt 100 Index tops the top five gainers with 0.73% gain while the Zimbabwe All Share Index tops the top five losers with -2.72% loss as of 4pm Nigerian Time

2. BONDS AND FIXED INCOME MARKETS

2.1 Debt Market Size
The FMDQ Debt Market Size advanced by +0.18% to close at N28.06trn from previous figure of N28.01trn.

2.2 Overnight and Open Repo (OPR)
The overnight lending rate closed flat at 14.00% while the Open Repo (OPR) rate also closed flat at 14.00%

3. COMMODITIES MARKET

3.1 AFEX Indices
The ACI dipped by 0.02% to close at 467.89 basis points as against previous figure of 472.04 while the AEI also dipped by 0.72% to close at 189.86 basis points as against previous figure of 191.24 basis points.

3.2 AFEX Commodity Prices
Maize advanced by 10.81% to top the gainers’ chart while Paddy Rice declined by 7.77% to top the losers’ chart.

3.3 Global Commodity Prices
Gold recorded 0.04% gain while Silver declined by 0.14% as of 12:26 NY time

In the energy market, Brent advanced by 3.57% while WTI declined by 0.05% as of 11:30AM Central Daylight Time (CDT)

Source: Oilprice.com, Goldprice.org

4. CURRENCY/ FX MARKET
The naira depreciated by 0.80% at the I&E FX Window to close at N424.88/USD while the NAFEX rate also depreciated by 0.29% to close at N420.05.

Source: FMDQ, BDC

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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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