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Headlines news

Banks’ borrowing from CBN rises, seen hitting N1.5trn in August

Nigerian banks’ borrowing from the Central Bank of Nigeria’s (CBN) discount window, known as the Standing Lending Facility (SLF), is rising following a liquidity squeeze in the financial market. Standing facilities (deposit and lending) are instruments of liquidity…

Parents pick private universities on ASUU strike, dollar scarcity

The scarcity of foreign exchange, which has made foreign tuition fees more expensive, and the incessant strikes by the Academic Staff Union of Universities (ASUU) are forcing more parents to opt for private universities. In an interview with BusinessDay, Serena…

Election glitches seen on INEC’s 200,000 voting machines

The 200,000 Bimodal Voters Accreditation System (BVAS) machines the Independent National Electoral Commission (INEC) planned to deploy across the 176,000 polling units for the 2023 general election may not be sufficient for a hitch-free election, some political analysts have said.

Bread price, subsidy burden push inflation to 16-yr high

Nigeria’s headline inflation raced to 19.64 percent in July 2022 on a year-on-year basis, the highest in 16 years and 10 months, according to data from the National Bureau of Statistics (NBS). The July inflation figure is higher than the 18.60 percent recorded in June…

Bad economy and foreign capital

The hoarding of the greenback by political big wigs in preparation for the forthcoming 2023 general elections has further crumpled the Nigerian FX market in terms of liquidity and supply, especially on the official exchange platform.

ASUU set to call off strike as IPPIS, UTAS issues resolved

The Academic Staff Union of Universities (ASUU) gives hope of calling off the strike soon as issues around the Integrated Payroll and Personal Information System (IPPIS), and the University Transparency and Accountability Solution (UTAS), have been resolved. According to a statement from ASUU, the issue..

 Implications of new UAE visa rules for Nigerian travellers

Last week, the United Arab Emirates (UAE) released stiffer visa regulations for Nigerians. The new rules followed recent public disturbance by some Africans, most of whom were allegedly Nigerians in Dubai. A video had emerged last week, in which some African youths, believed to be Nigerian nationals, were seen fight..

CBN raises savings rate to 4.2%

The Central Bank of Nigeria (CBN) has reviewed upward the minimum interest rate payable on savings deposits to 4.2 percent from 0.15 percent, which is 30 percent of the Monetary Policy Rate (MPR). This was disclosed in a letter to all banks titled “review of interest rate on savings deposits”, dated August 15, 2022…

Naira fluctuation and matters arising

The Central Bank of Nigeria says on its website that the main objectives of its exchange rate policy in Nigeria are to preserve the value of the domestic currency, maintain a favorable external reserves position and ensure external balance without compromising the need for internal balance and the overall…

Market gains N43bn as BUA Cement, Union Bank, others rally

Nigeria’s equities market closed in the green zone on Tuesday, rising by about N43billion or 0.16percent, thanks to companies like BUA Cement, Union Bank, Cutix and other top advancers on the Bourse. The market’s performance indicators – the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and..

Headline Inflation Increases by 19.64% YoY in July 2022 as Food Inflation Rises by 22.02%

 CPI for July 2022 was 463.6 relative to 387.5 in July 2021. In July 2022, on a year –on- year basis, the headline inflation rate was 19.64%. This was 2.27% points higher compared to the rate recorded in July 2021, which was (17.38 %). Source NBS Read More

Fuel Subsidy Hits N1.593tn, Refinery Rehabilitation Gulps N54.66bn 

– Latest data on the amount spent in subsidizing Premium Motor Spirit, popularly called petrol, seen in Abuja on Monday showed that the government subsidized the commodity with N1.593tn between January and June 2022. Source Punch Read More

CBN: Budget Deficit, Public Debt Hamper Fiscal Sustainability

 – The Central Bank of Nigeria (CBN) yesterday said budget deficit and public debt could exert direct and negative consequences on fiscal sustainability, adding that these remained essential factors in assessing macroeconomic policies’ credibility. Source THISDAYLIVE Read More

NAFEX Rate Depreciated by 0.09% WoW to N426.79

 In the FX Spot and Derivatives markets, the total turnover for the week-ended August 12, 2022, was $772.12 million, representing an increase of 24.56% ($152.25 million) from $619.88 million reported for the week-ended August 5, 2022. Source FMDQ Read More

Nigeria’s Bank of Industry Raises 1 Billion Euros Loan for Companies

Bank of Industry, the biggest development finance institution in Nigeria raised 1 billion euro syndicated loan from banks to support small, medium and large businesses in Nigeria, according to the lender. Source Bloomberg Read More

Amid Massive Under-production, Nigeria Posts Record 9.4m Barrels Oil Loss to Shut-ins, Others

 Again, Nigeria has hit a new oil production loss record as a result of disruptions to its crude assets due to maintenance challenges, community issues and prolonged force majeure. Source THISDAYLIVE Read More

IPMAN Set to Import Diesel to Reduce Scarcity

 – Following the energy crisis that has engulfed Nigeria, especially the Federal Capital Territory (FCT) and other states, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has kicked-off plans to import the Automotive Gas Oil (AGO) diesel to cushion the scarcity. Source The Nation Read More

Oil Industry Gears Up to Tap U.S. Climate Bill for Carbon Capture Projects

 Tax credits in the $430 billion U.S. climate and tax bill set to be signed into law this week will kickstart carbon sequestration projects, say oil and gas proponents, offsetting startup costs for some of the anti-pollution initiatives. Source Reuters Read More

21.3m Women in Nigeria are Financially Excluded – EFInA

 The report focused on “Women Economic Empowerment” derived from the 2020 Access to Finance assessment. It highlighted that women face significant market access challenges due to lack of finance, societal challenges, absence of essential business skills and prevailing gender norms. Source Proshare  Read More

NITDA, ICPC Seek Tech Solutions to Mitigate Financial Fraud

 – The National Information Technology Development Agency (NITDA) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) will host the 2022 Illicit Financial Flows (IFFs) Hackathon. Source TechEconomy Read More

PoS Transactions Rise N1.05trn in 7 months – NIBSS

 The Nigeria Inter-Bank Settlement Systems (NIBSS) has said that transactions done on the Point of Sales (PoS) terminals across the country rose by N1.05 trillion from N3.56 trillion in the first seven months of 2021 to N4.61 trillion in 2022. Source The SUN Read More

A Thoughtful Approach to Wealth Management

 Where in Africa do the well-to-do reside and in what numbers? The recently released Africa Wealth Report 2022 shows that there are currently 136,000 High Net Worth Individuals (HNWIs) living on the Continent, along with 5,110 multi-millionaires, 305 centi-millionaires and 21 billionaires. Source FBNQuest Read More

 

Investors Gain N28.10bn as NGXASI Inches up by 0.10%; Debt Market Size Declines by 0.24% to Close at N29.07trn; IEFX Rate Depreciates to N430.67

  1. EQUITIES MARKET

 

1.1 NGX – Listed Equities

Nigerian Equities Market erased previous day loss to close in the green zone as key market indicator moved up by 52.13bps amid negative market breadth.

 

The NGX All-Share Index inched up by 0.10% to close at 49,709.46 basis points as against 0.01% loss recorded to close at 49,657.33 basis points at the end of the previous trading session. In Naira terms, the NGX Market CAP records N28.10bn gain.

 

YTD, the NGXASI Stands at +16.37%

The total volume traded declined by -3.17% to close at 204.16m, valued at N1.64bn and traded in 3,643 deals. FBNH was the most traded stock by volume with 36.83m units traded while FBNH was also the most traded stock by value which is put at N396.18m.

Sectoral performance was broadly negative as six (6) NGX sector index closed northward, nine (9) closed southward while three (3) closed flat. The NGX Industrial Goods Index inched up by 0.96% to top the gainers chart while the NGX Insurance Index dipped by 0.97% to top the losers’ chart.

Dangote index closed flat at 135.11 basis points while Elumelu index also dipped by 0.22% to close at 106.07 basis points.

At the close of trading, market recorded 10 gainers to 21 losers and 66 unchanged. CUTIX topped the list of gainers while PZ topped the list of losers.

Thus, market breadth closed negative as the Market Breadth Index (MBI) is put at -0.17x.

Volume and Value Contribution

FBNH led the volume’s chart with 18.04% contribution and closely followed by ETRANZACT and UBA

 

FBNH tops the value’s chart with 24.15% contribution and closely followed by GTCO and ACCESSCORP

 

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NGX Earnings Summary

No Financial statement was released on the NGX Exchange today.

 

NGX Corporate News

LivingTrust Mortgage Bank Plc has announced the dealing in shares by an insider. 830,042 volumes of shares were sold at N1.43k on August 11, 2022, by an insider.

 

1.2 NASD OTC Exchange – Unlisted Equities

The NASD market index dipped by 0.39% to close at 756.86 basis points as against 0.31% loss recorded previously to close at 759.83 basis points

The total volume traded advanced by +378.06% to close at 0.571m units valued at N10.35m and traded in 18 deals.

At the close of trading, NASD OTC market recorded one (1) gainer(s) to three (3) loser(s)

NASD Earnings Summary

No Financial statement was released on the NASD OTC Exchange today.

 

NASD Corporate News

No Corporate News was released on the NASD OTC Exchange today.

 

1.3 Global Indices

On the global scene, the Russia MICEX Index leads the top five gainers with 2.02 gain while the Hong Kong Hang Seng Index tops the top five losers with -1.05% loss as of 4pm Nigerian Time

 

1.4 African Indices

Similarly, on the African scene, the South Africa All Share Index tops the top five gainers with 0.98% gain while the Zimbabwe All Share Index tops the top five losers with -1.80% loss as of 4pm Nigerian Time

 

 

  1. BONDS AND FIXED INCOME MARKETS

 

2.1 Debt Market Size

The FMDQ Debt Market Size declined by 0.24% to close at N29.07trn as against previous figure of N29.14trn

 

2.2 Overnight and Open Repo (OPR)

The overnight lending rate expanded by 0.50% to close at 15.00% while the Open Repo (OPR) rate also expanded by 0.50% to close at 14.50%

 

 

  1. COMMODITIES MARKET

 

3.1 AFEX Indices

The AFEX ACI and AEI indices were not available as of the time of finalizing this report.

 

3.2 AFEX Commodity Prices

Paddy Rice advanced by 3.19% to top the gainers list while other commodities closed flat

 

3.3 Global Commodity Prices

Gold recorded 0.30% loss while Silver also declined by 0.69% as of 12:09 NY time

 

In the energy market, Brent declined by 2.32% while WTI also declined by 2.51% as of 11:11 AM Central Daylight Time (CDT)

 

 

  1. CURRENCY/ FX MARKET

The naira depreciated by 0.16% at the I&E FX Window to close at N430.67/USD while the NAFEX rate appreciated by 0.01% to close at N427.88

 

About the Author

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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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