By Dipo Olowookere
An agreement has been entered into between Nigeria’s Securities and Exchange Commission (SEC) and a UK Aid funded non-profit company, FSD Africa, to provide funding for an institutional capacity audit to identify strengths and areas of improvement in the operations of SEC Nigeria.
However, SEC is not the only regulator to enjoy this benefit as other capital regulators in Africa will also get this funding package.
According to FSD Africa, the aim is build the capacity of capital market regulators across the continent, providing world-class technical assistance, encouraging closer collaboration among regulators and conducting research to support the development of new policies and regulations.
The initiative will encourage greater collaboration and knowledge management sharing between SEC and other African capital market regulators.
At the signing of the deal last weekend, Acting Director General of SEC Nigeria, Ms Mary Uduk, stated that, “SEC Nigeria is excited about the cooperation with FSD Africa and the tremendous potential the various programs hold in complementing our efforts to enhance capacity and further strengthen our ability to regulate the capital market.”
She said, “This collaboration will no doubt contribute to the continued development of our market by facilitating access to capital by both the private and public sectors and enhance the competitiveness of the Nigerian capital market as a global investment destination.”
On his part, Director of FSD Africa, Mr Mark Napier, disclosed that, “Well-functioning capital markets can play a vital role in support of inclusive economic growth by channelling long term finance into infrastructure and other large-scale projects that create jobs and improve access to markets.
“Strengthening regulatory capacity in capital markets is an essential pre-condition for building investor confidence.”
Also speaking at the ceremony in Lagos, Deputy High Commissioner, British Deputy High Commission Lagos, Laure Beaufils, noted that, “Capital markets have an essential role to play to help unlock capital that can be invested in the real economy and that can contribute to job creation and inclusive growth.
“I am delighted that the SEC Nigeria and FSD Africa will be signing a new partnership agreement today.
“It is a testament to the importance we attach to this issue and to our commitment to deepen and broaden our trade and investment relationship with Nigeria. I very much look forward to working with the SEC on this in the future.”
Business Post reports that apart from Nigeria, other nations to enjoy the programme include Ghana, Kenya, Mozambique, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe.
Nigeria’s GDP Grows by 3.11% in Q1, What Next?
By Lukman Otunuga
There are two ways one could interpret Nigeria’s latest Gross Domestic Product (GDP) figure of 3.11% in Q1 of 2022.
The optimists will say the country’s economy grew for the sixth consecutive quarter in Q1 while pessimists may highlight how economic growth slowed for the third consecutive quarter.
Either way, Nigeria’s economy continues to display resilience against external and domestic risks. With the improvement in the non-oil sector driving growth, this may brighten the growth outlook. But could these be signs of Nigeria breaking away from the chains of oil reliance to derive growth from sustainable sources? It may be too early to come to any meaningful conclusion. However, the report is encouraging and illustrates progress made by the country in reclaiming stability post-Covid-19.
With economic conditions somewhat improving, the Central Bank of Nigeria (CBN) is unlikely to raise interest rates this week. Given how Africa’s largest economy has been able to maintain growth in the past six quarters on the back of loose monetary policies by the CBN, a rate hike could disrupt Nigeria’s economic recovery.
As the global war against inflation rages on, central banks are stepping up.
However, the CBN is likely to remain on the sidelines for now. Nevertheless, inflation is still a cause for concern with consumer prices accelerating for the third straight month to 16.82% in April 2022.
With the general elections around the corner, pre-election spending could translate to rising price pressures. On top of this, the widening policy divergence between the Federal Reserve and the CBN could punish the Naira.
It’s worth keeping in mind that the dollar remains heavily supported by aggressive Fed rate hike bets and is likely to remain strong for the rest of 2022. A powerful dollar is bad news for emerging market currencies including the Naira which continues to depreciate in both the official and unofficial markets.
Lukman Otunuga is the Senior Research Analyst at FXTM
NGX All Share Index Weakens Further by 0.13%
By Dipo Olowookere
The bearish sentiment on the floor of the Nigerian Exchange (NGX) Limited continued on Monday as the bourse further depreciated by 0.13 per cent.
Sustained profit-taking especially in the industrial goods sector contributed to the decline suffered during the session as the All Share Index (ASI) slumped by 68.45 points to close at 52,911.51 points compared with the previous session’s 52,979.96 points.
As for the market capitalisation, it depreciated by N37 billion amid sell-offs in 24 stocks to settle at N28.525 trillion as against last Friday’s closing value of N28.562 trillion.
On the first trading day of this week, the insurance sector depleted by 2.32 per cent, the industrial goods sector fell by 0.09 per cent, while the energy, banking and consumer goods counters increased by 0.28 per cent, 0.10 per cent and 0.05 per cent respectively.
Presco led the losers’ chart yesterday with a price decline of 10.00 per cent to trade at N180.00, Global Spectrum Energy Services lost 9.97 per cent to finish at N3.07, Neimeth fell by 9.66 per cent to N1.59, UAC Nigeria depreciated by 8.33 per cent to N13.20, while NEM Insurance retreated by 7.74 per cent to N4.05.
The gainers’ log had 22 members on Monday, with Conoil leading after its value improved by 9.95 per cent to N34.25. MRS Oil gained 9.93 per cent to quote at N14.95, McNichols appreciated by 9.86 per cent to N2.34, Academy Press increased its price by 9.76 per cent to N1.35, while NPF Microfinance Bank expanded by 8.02 per cent to N2.02.
On the activity chart, a total of 263.3 million stocks worth N3.6 billion exchanged hands in 4,856 deals during the session compared with 436.6 million stocks worth N3.2 billion bought and sold in 4,716 deals in the preceding session. This implied that the volume of trades depreciated by 39.68 per cent, while the value of trades and the number of deals increased by 10.15 per cent and 2.97 per cent respectively.
Jaiz Bank closed the day as the most active stock with the sale of 114.0 million units valued at N101.8 million, GTCO transacted 12.9 million shares for N302.8 million, Transcorp exchanged 12.8 million stocks worth N16.7 million, Access Holdings traded 11.7 million equities valued at N115.7 million, while Zenith Bank sold 8.6 million shares for N207.0 million.
CSCS Leads NASD Bourse to 0.39% Loss
By Adedapo Adesanya
The National Association of Securities Dealers (NASD) Over-the-Counter (OTC) Securities Exchange opened the week on a bearish note as it lost 0.39 per cent on Monday on the back of a slip in the price of Central Securities Clearing System (CSCS) Plc.
The share price of CSCS Plc went down by N1.23 or 7.8 per cent during the session to N15.72 per unit from the previous session’s N16.95 per unit.
The decline posted by the stock outshone the gains printed by FrieslandCampina WAMCO Nigeria Plc and NASD Plc at the unlisted securities market yesterday.
FrieslandCampina recorded a 0.9 per cent or N1 growth to close at N110.00 per unit as against the N109.00 per unit it closed last Friday, while NASD Plc appreciated by 28 kobo or 2.0 per cent to trade at N14.00 per share in contrast to the last price of N13.72 per share.
But at the close of transactions, the market capitalisation of the NASD bourse shed N4.07 billion to settle at N1.03 trillion as against the preceding session’s N1.04 trillion, while the NASD Unlisted Securities Index (NSI) fell by 3.11 points to 789.94 points from 793.05 points.
At the market yesterday, the volume of securities traded by investors depreciated by 60.9 per cent to 3.8 million units from 9.6 million units, the value of securities, however, jumped by 36.9 per cent to N63.7 million from N46.5 million, while the number of trades went down by 45.8 per cent to 13 deals from 24 deals.
AG Mortgage Bank Plc remained the most traded stock by volume (year-to-date) with 2.3 billion units valued at N1.2 billion, CSCS Plc stood in second place with 662.2 million units worth N13.9 billion, while Food Concepts Plc was in third place with 134.0 million units valued at N115.0 million.
In terms of the most active stock by value (year-to-date), CSCS Plc remained on top with 662.2 million units exchanged for N13.9 billion, VFD Group was in second place with 9.4 million units valued at N2.9 billion, while AG Mortgage Bank Plc was in third place with 2.3 billion units worth N1.2 billion.
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