Inflation erodes stock returns amid rake hikes
Nigeria’s inflation rate, which has surged to its highest level in more than 16 years, is putting a damper on stock returns as interest rate hikes brightens prospects of the fixed income market. The country’s monetary policymakers have since been more hawkish in recent…
CBN raises savings rate to boost deposits
The Central Bank of Nigeria (CBN) has reviewed upwards the minimum interest rate payable to savings deposits from 0.15 percent to 4.2 percent. This was disclosed in a letter to all banks, titled ‘Review of interest rate on savings deposits, dated August 15, 2022…
How Nigeria can tame rising inflation in coming months
With Nigeria’s inflation racing to 19.6 percent, the highest in 16 years and 10 months, analysts have recommended quick-fix policies the government can put in place to curb the rising cost of living. For seven consecutive months this year, Nigerians have struggled…
States overwhelmed as Nigeria’s cost of living crisis escalates
Nigeria’s cash-strapped states are under growing pressure as their monthly allocation and internally generated revenue has shrunk, even as Nigerians struggle financially to survive amid escalating prices and dwindling income.
Bread crisis: Expert urges bakers to adopt cheaper substitutes, become creative
Duro Kuteyiashe, the managing director and chief executive of Spectra Industries Limited has called on bakers in the country to become creative by adopting cheaper substitutes to drive down production costs of producing a loaf of bread.
Tax lessons Nigeria can learn from Estonia
Taxes are one of the financial obligations of citizens and businesses to the government and serve as a major source of revenue. Experts say tax-friendly economies record higher investment inflow than countries with difficult tax regimes.
Nigeria’s gas projects suffer N32.4bn funding shortfall, despite Europe’s interest
At a time Europe is seeking to pull the plug on Russian gas in the wake of Moscow’s war with Ukraine, gas infrastructure projects capable of making gas a critical catalyst in Nigeria’s economy suffered a funding shortfall of N32.4 billion in the first half of 2022. With the European Union (EU) courting Nigeria and…
Customs generates N1.293trn revenue in six months
The Nigeria Customs Service (NCS) said it has generated over N1.293 trillion in revenue into the federation account for the first six months of the year, between January and June 2022. The sum represents a 28.83 percent increase from the N1trillion generated same period in 2021. It also issued 116,691 Pre-Arrival..
PEBEC proposes $750m World Bank-backed program for sub-nationals in 2023
Vice President Yemi Osinbajo, on Monday said state governments and their agencies have a significant role to play in ensuring an enabling environment for businesses to thrive, especially in their domains. Osinbajo stated this in his remarks at a virtual meeting of the Presidential Enabling Business Environment…
Stock investors record N10bn loss as market dips by 0.04%
Nigeria’s equities market closed slightly in the red zone on Wednesday, thereby recording its first negative after a disappointing inflation report. The market decreased by 0.04percent as investors booked N10 billion loss. Nigeria’s headline inflation raced to 19.64 percent in July (18.60percent in June), the highest in 16…
Ardova Plc: Unbundling a Dispute
– Following media headlines that suggested Zenon Petroleum & Gas Limited had petitioned a Federal High Court in Lagos to wind up Ardova Plc over an alleged US$6m debt, Proshare analysts engaged market entities related to the matter to establish clarity and understanding, from an investor perspective. Source TheAnalyst, Proshare Research Read More
Headline Inflation Rises to a 17-Year High of 19.64%
– Nigeria’s headline inflation rose by 1.04% to 19.64% from 18.6% in June. This is the 6th consecutive monthly increase and the highest inflation rate since September 2005. Food inflation, the major victim of supply chain disruptions spiked to 22.02%. Source FDC Ltd Read More
Power Generation Falls by 503MW, Workers Threaten Strike
– Nigeria’s power generation dropped by 502.7 megawatts on Tuesday as members of the National Union of Electricity Employees and their counterparts in the Senior Staff Association of Electricity and Allied Companies grounded the nationwide operations of the Transmission Company of Nigeria the same day. Source Punch Read More
Discos Alert on Nationwide Blackout as TCN Begs Workers to Suspend Planned Strike
– The Electricity Distribution Companies (Discos) have alerted Nigerians to a likely nationwide blackout as the Transmission Company of Nigeria (TCN) yesterday begged workers in the sector to suspend their proposed strike which commences today. Source THISDAYLIVE Read More
ETI H1 2022 Result: Earnings Sprint as Nigerian CBN Policy Rate Rises to 14%
– ETI’s H1 2022 result showed top and bottom-line earnings growth, which rose by +13.71% and +27.7%, respectively. The group’s effort at investing in technology and digital enhancements supported the fall in the cost-to-income ratio (CIR) to 56.0%. Source, Proshare Research Read More
The Markets in Review: Good News for Savers as FGN Bond Yields Rise
– Coronation Research – Markets are looking more familiar these days. In our report, FGN bond yields on the move (18 July 2022), we discussed how Federal Government of Nigeria (FGN) bonds denominated in US dollars were yielding more than equivalent ones in Naira. Source Coronation Research Read More
FG Seeks to Bar Foreigners from Buying Food Commodities at Farm Gate
– The Minister of Industry Trade and Investment, Mr. Adeniyi Adebayo, yesterday inaugurated an Inter-Ministerial Standing Committee to oversee the implementation of a memo on the “Promotion of Agri-Business in Nigeria through Right Farm Gate Pricing and Ban of Foreigners from Purchasing Agricultural Commodities at the Farm Gates.” Source THISDAYLIVE Read More
UK Cuts Tariffs for Goods Imported from Africa to Boost Trade
– The UK government says it will remove tariffs from up to 99 percent of goods imported from Africa and other developing countries. Source TheCable Read More
Oil Prices Edge Up From 6-Month Lows After Drop in U.S. Stockpiles
– Oil prices rose on Wednesday, recovering from six-month lows hit the previous day, as a larger-than-expected drop in U.S. oil and gasoline stocks reminded investors that demand remains firm, if overshadowed by the prospect of a global recession. Source Reuters Read More
FG to Launch $750m World Bank-Backed Programme
– The Presidential Enabling Business Environment Council, on Tuesday, unveiled its plans to kickstart a $750m World Bank-funded programme in January next year. Source Punch Read More
Google Invests Part of its $50m African Investment Fund in eLogistics Company Lori Systems
– The investment in Lori Systems is the third from Google’s $50 Million Africa Investment Fund, which CEO Sundar Pichai announced in October 2021. Source TechEconomy Read More
NITDA, ICPC Move to Fight IFF in govt Ministries
– The National Information Technology Development Agency (NITDA), through its subsidiary, the Office for Nigerian Digital Innovation (ONDI), in partnership with the Independent Corrupt Practices and Other Related Offences Commission (ICPC), has opened applications for the 2022 Illicit Financial Flows (IFFs) hackathon. Source The SUN Read More
MTN Partners SME Capacity Building Providers to Make Learning More Affordable
– MTN Nigeria Plc has announced a new data bundle specially designed for micro small and medium enterprises (MSMEs) who desire to access free business capacity building content but cannot afford the data required to do so. Source MTN Nigeria Read More
FG Inaugurates Committee to Promote Clean Energy Technology for Startups, SMEs
– The federal government has inaugurated a project steering committee for the global clean-tech innovation programme (GCIP) in Nigeria, to promote the development of clean energy technologies for sustainable start-ups and small, medium enterprises in Nigeria. Source TheCable Read More
Investors Lose N9.87bn as NGXASI Dips by 0.04%; Debt Market Size Advances by 0.07% to Close at N29.09trn; IEFX Rate Appreciates to N429.38
- EQUITIES MARKET
1.1 NGX – Listed Equities
Nigerian Equities Market retracted to close in the red zone as key market indicator declined by 18.29bps as market breadth remains negative.
The NGX All-Share Index dipped by 0.04% to close at 49,691.17 basis points as against 0.10% gain recorded to close at 49,709.46 basis points at the end of the previous trading session. In Naira terms, the NGX Market CAP records N9.87bn gain.
YTD, the NGXASI Stands at +16.33%
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 28.37m units traded while NESTLE was the most traded stock by value which is put at N2.71bn.
Sectoral performance was broadly negative as six (1) NGX sector index closed northward, twelve (12) closed southward while five (5) closed flat. The NGX Insurance Index inched up by 0.86% to top the gainers chart while the NGX AFRHDYI Index dipped by 0.34% to top the losers’ chart.
Dangote index closed flat at 135.11 basis points while Elumelu index also dipped by 0.71% to close at 105.32 basis points.
At the close of trading, market recorded 10 gainers to 13 losers and 78 unchanged. PRESTIGE topped the list of gainers while COURTVILLE topped the list of losers.
Thus, market breadth closed negative as the Market Breadth Index (MBI) is put at -0.04x.
Volume and Value Contribution
FBNH led the volume’s chart with 22.03% contribution and closely followed by ZENITHBANK and UBA
NESTLE tops the value’s chart with 65.61% contribution and closely followed by ZENITHBANK and FBNH
NGX Earnings Summary
No Financial statement was released on the NGX Exchange today.
NGX Corporate News
No Corporate News was released on the NGX Exchange today.
1.2 NASD OTC Exchange – Unlisted Equities
The NASD market index inches up by 0.04% to close at 757.15 basis points as against 0.39% loss recorded previously to close at 756.86 basis points
The total volume traded declined by -83.31% to close at 0.095m units valued at N5.98m and traded in 7 deals.
At the close of trading, NASD OTC market recorded one (1) gainer(s) to zero (0) loser(s)
Volume and Value Contribution
SDNIPCOPLC led the volume chart with 94.35% contribution while SDNIPCOPLC led the value chart with 90.30% contribution
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 Japan Nikkei 225 Index leads the top five gainers with 1.23 gain while the Austria ATX Index tops the top five losers with -1.55% loss as of 4pm Nigerian Time
1.4 African Indices
Similarly, on the African scene, the Egypt EGX 30 Index tops the top five gainers with 2.18% gain while the Uganda All Share Index tops the top five losers with -1.40% loss as of 4pm Nigerian Time
- BONDS AND FIXED INCOME MARKETS
2.1 Debt Market Size
The FMDQ Debt Market Size advanced by 0.07% to close at N29.09trn as against previous figure of N29.07trn
2.2 Overnight and Open Repo (OPR)
The overnight lending rate closed flat at 15.00% while the Open Repo (OPR) rate also expanded by 0.17% to close at 14.67%
- COMMODITIES MARKET
3.1 AFEX Indices
The AFEX ACI and AEI indices both closed flat
3.2 AFEX Commodity Prices
Maize advanced by 22.28% to top the gainers list while Soybeans declined by 0.80% to top the losers’ cart
3.3 Global Commodity Prices
Gold recorded 0.75% loss while Silver also declined by 1.69% as of 13:01 NY time
In the energy market, Brent advanced by 0.71% while WTI also advanced by 1.01% as of 12:03 PM Central Daylight Time (CDT)
- CURRENCY/ FX MARKET
The naira appreciated by 0.30% at the I&E FX Window to close at N429.38/USD while the NAFEX rate depreciated by 0.23% to close at N428.88
