Business
Nigerian Bourse Investors Lose N2.49 trn In Seven Months
Investors on the Nigerian Stock Exchange (NSE) lost N2.49 trillion or 15.64 per cent between January and July, a development experts attribute to the political uncertainty in the country.
The financial experts, who spoke to our source our source said the political uncertainty had taken its toll on the bourse.
Data obtained by NAN from the exchange showed that the market capitalisation which closed at N15.895 trillion in January declined to N13.409 trillion in July.
Similarly, the All-Share Index lost 7,325.87 points or 16.52 per cent during the period under review, closing at 37,017.78 in July compared with 44,343.65 in January.
Head of Banking and Finance Department, Nasarawa State University Prof. Uche Uwaleke, , said that the performance of the market was dismal and eroded the growth recorded in January.
Uwaleke said the market had remained bearish despite the oil price recovery, stable exchange rate, retreating inflation and even improved company fundamentals.
He however attributed the development to heightening political tension, insecurity from herdsmen and economic uncertainties from the delay in budget implementation.
Uwaleke added that the spike in interest rates in the United States of America and to some extent the US-China trade war combined to swing the attention of foreign investors to US markets.
Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun,Prof. Sheriffdeen Tella, said the bearish trend was caused by movements of interest rates in the United States which resulted in withdrawal of money from the market by foreign investors.
“The seeming sustainability of the downward trend is caused by fear of local investors that they might be losing large amounts of money if they don’t sell off their securities now,” Tella said.
Former President, Institute of Bankers of Nigeria (CIBN), Mazi Okechukwu Unegbu, said security issues and the social environment were responsible for the negative sentiments in the capital market.
Unegbu said foreign investors had pulled out their funds from the nation’s market, especially portfolio investors.
He said the real investment that impact positively on the economy was foreign direct investment in the productive sector, not ‘hot money investment’ in the stock market.
Unegbu said government must encourage local investors to invest in the market by creating an enabling environment.
He added that politicians should stop their daily political altercations in the media, which he said was fuelling fears among investors.
The Managing Director, APT Securities and Funds Ltd.Malam Garba Kurfi, said the performance of the capital market had remained negative from February to date.
He said the market for about seven weeks now had experienced a loss of one per cent per a week or even more.
Kurfi attributed the trend to the exit of foreign investors and the institutional investors, and that the market witnessed a lot of sell pressure.
He also said the Pension Funds Administration failed to invest due to political risks.
“We hope to see revised trends probably after primary elections when the foreign investors are likely to review the prospective candidates and take decision,” Kurfi said.
However, NAN reports that volume of shares traded between January and July rose by 56.16 per cent with an exchange of 82.58 billion shares valued at N871.71 billion in 742,014 deals.
This was in contrast with a turnover of 52.88 billion shares worth N565.83 billion transacted in 539,315 in the comparative period of 2017.
Business
Food Vendors, Others Relocate To New Site At PH Airport
The raging controversy between the Port Harcourt International Airport Management and restaurants/canteen operators and theirallies over relocation has been brought under control, as the operators have commenced relocation to their structures at the new site.
Recall that there had been serious feud over a directive by the Manager of the airport, Mr. Michael Area, for food vendors and their allies to relocate to the new site.
They insisted that the new site was too distant and hence, would negatively affect patronage from customers, with possible loss.
They further also insisted that it wouldcost them much money to put up another structure, given the economic situation in the country, since the airport management did not build any structure for them, apart from providing the empty land they have to also pay for.
The situation had led to flexing of muscles, which made the Airport Manager to order for sealing of all shops, resulting in scarcity of food, as airport users could not find a place to eat, apart from the only Genesis fast food spot available.
As at last Friday, The Tide observed that most of the food vendors had transferred their structures to the new place, and had started doing business there already.
Meanwhile, customers have started settling down at the new location as they were seen patronising shops for foods and drinks, in spite of the distance.
Few of the remaining structures at the old site, The Tide further gathered, will also be removed as quickly as possible, and the owners are making efforts to get funds for the job to be done.
One of them, Mrs Aka Love explained that she was going to relocate to the new place before the end of March.
Currently, business activities at the old site have come to null, as the place which was usually a beehive of food, drinks and relaxation, has completely winded down.
By: Corlins Walter
Business
MOWCA Strengthens Maritime Crime Prevention
Secretary General of the Maritime Organisation of West and Central Africa (MOWCA), Dr. Paul Adalikwu, has stepped up interaction with the United States Government to lift restrictions placed on some member countries allegedly implicated in illicit shipping activities.
Adalikwu, who led a delegation from the MOWCA Secretariat to the US Embassy in Abidjan for a first leg of the strategic consultation aimed at promoting seamless participation of MOWCA countries in international trade within the global maritime space, reiterated the organisation’s commitment to the best ethical and lawful maritime practices.
Addressing the U.S Ambassador to Côte d’Ivoire, H.E Mrs Jessica Davis Ba, the MOWCA SG stated the organisation’s interest in promoting the International Ship and Port facility Security (ISPS) code which aims at enhancing security of vessels and their ports of call.
He expressed the commitment of MOWCA in promoting environmentally friendly, safe and cost effective shipping without any encumbrance that may limit the economic potential of member countries.
Dr Adalikwu recalled that at the instance of the U.S. Department of State invitation, MOWCA participated in the 2023 Registry Information Sharing Compact (RISC) Conference in Larnaca, Cyprus, on February 28–March 1, 2023, and a virtual meeting held on June 6 2023, with Mrs Jennifer Chalmers, Officer in change of Counterproliferation Initiative.
He recalled The U.S. DOS willingness to support MOWCA’s effort for preventive maritime security through the establishment of the Center for Information and Communication (CINFOCOM) with the aim to ensure a maritime situational awareness domain within MOWCA’s member states’ waters.
He added that MOWCA under his watch is committed to training and retraining of maritime practitioners and experts to enhance the human capital capabilities of member states.
The CINFOCOM will help prevent transnational crimes committed at sea like sanctions evasion by North Korea and other state actors, who exploit poor enforcement due diligence by ship open registries to circumvent United Nations and U.S. trade restrictions.
By: Nkpemenyie Mcdominic, Lagos
Business
Nigeria’s Public Debt Hits N97.3trn – DMO
The Debt Management Office (DMO) has hinted that Nigeria’s public debt increased by 10.7 per cent from N87.87 trillion in the third quarter of last year, to N97.34 trillion as at December 31, 2023.
DMO, in an update data released last Friday, said the increase in the debt stock was largely due to new domestic borrowing by the Federal Government to part finance the deficit in the 2024 Appropriation Act and disbursements by multilateral and bilateral lenders.
The office noted that the N97.3 trillion public debt comprises of domestic debt of N59.12 trillion and external debt of N38.22 trillion. The sum of $3.5 billion was used to service external debt during the review period.
“Nigeria’s Public Debt Stock as at December 31, 2023 was N97.34trillion or $108.229 billion. This amount comprises the domestic and external debt stocks of the Federal Government of Nigeria (FGN), the 36 States Governments, and the Federal Capital Territory (FCT).
“There was an increase of N9.43 trillion over the comparative figure for September, 2023, which was largely due to new domestic borrowing by the FGN to part finance the deficit in the 2024 Appropriation Act and disbursements by multilateral and bilateral lenders.
“At N59.12 trillion, total domestic debt accounted for 61 percent of the total public debt stock, while external debt at N38.22 trillion accounted for the balance of 39 percent.
“Consistent with the debt management strategy, Nigeria’s external debt stock was skewed in favour of loans from multilateral (49.77 percent) and bilateral lenders (14.02 percent) or total of 63.79 percent which are mostly concessional and semi-concessional.
“Whilst the DMO continues to employ best practice in public debt management, the recent and on-going efforts of the fiscal authorities to shore up revenue will support debt sustainability”, DMO stated.
By: Corlins Walter
-
Opinion3 days ago
Nigeria: Revisiting The Restructuring Issue
-
Rivers3 days ago
Commissioner Tasks Firms, Host Communities On Peace
-
Sports1 day ago
‘Belief Has Returned To Germany Ahead Euro 2024’
-
Editorial1 day ago
That Kyari’s Promise On PH Refinery
-
Oil & Energy3 days ago
Offer Incentives To Boost Oil, Gas Production, Academy Tells FG
-
News3 days ago
PDP Leader Assures Fubara Of Support
-
Nation3 days ago
Catholic General Assembly Expresses Concern Over Growing Insecurity In Taraba
-
News1 day ago
FG Threatens To Arrest Gumi Over Reckless Comments On Security