Economy
IMF Disburses $37.1m to Liberia
By Modupe Gbadeyanka
The sum of $37.1 million has been approved by the Executive Board of the International Monetary Fund (IMF) to Liberia, bringing the total disbursements under the Extended Credit Facility (ECF) arrangement to $129.9 million.
In a statement issued on Monday announcing the pay-out, the IMF said the approval followed completion of the fifth and sixth reviews of Liberia’s economic performance under the program supported by the ECF arrangement.
The world financial firm further said the board gave its nod to the authorities’ request to waive the non-observance of performance criteria.
The waivers pertains to the end-December 2015 floors on total revenue collection of the central government and the net foreign exchange position of the Central Bank of Liberia and to the end-June 2016 performance criteria on floors on total revenue collection of the central government, net foreign exchange position of the Central Bank of Liberia, and the ceiling on the Central Bank of Liberia’s gross direct credit to the central government.
It also approved the authorities’ requests to augment access under the program by $37.1 million of which $17.3 million would be directed to the budget, and to extend the program until November 18, 2017.
The ECF arrangement for Liberia was approved by the Board on November 19, 2012 for $69.3 million or 40 percent of quota as of that date.
In September 2014, as part of the response in the fight against Ebola, the Board approved an augmentation of access of $43.3 million or 25 percent of quota as of that date under the ECF arrangement for Liberia.
Following the Board’s discussion on Liberia, Mr Tao Zhang, Deputy Managing Director and Acting Chair said, “After the end of the Ebola epidemic, a weak global commodity price environment has delayed Liberia’s economic recovery. Low prices for iron ore and rubber have led to significant cutbacks in output and investment. In addition, the withdrawal of UNMIL peacekeepers has reduced demand for local services.
“The authorities have managed to maintain macroeconomic stability in a difficult economic situation, and remain committed to strong program implementation. However, program performance has been mixed on account of the challenging economic situation as well as policy choices, including open bank assistance by the central bank. The pace of structural reform has been slow reflecting limited capacity and weak prioritization, due in part to the transition of the economic management teams at the ministry of finance and central bank.
“Fiscal policy has appropriately responded to the commodity price shock, thanks to new revenue measures accompanied by increased spending discipline. In the coming years, fiscal prudence is needed, including through the introduction of the VAT and the rationalization of the wage bill. Progress on public financial management reforms, especially the Treasury Single Account, investment management, and financial control of state-owned enterprises, will be important to support fiscal consolidation efforts.
“Borrowing policies should remain prudent. The authorities’ success so far in respecting the debt limits under the new debt limit policy is commendable. In addition, preserving debt sustainability will require prioritizing concessional loans and carefully contracting new borrowing through sound project appraisal.
“Rebuilding external buffers will require a rigorous implementation of the central bank’s three-year financial plan and limiting foreign exchange intervention to smoothing volatility. Good liquidity management should be relied upon to anchor inflation. The closure of the First International Bank of Liberia Limited (FIBLL) is welcome, and the forensic audit launched by the central bank enhances its credibility and transparency. Lessons from this experience point to the importance of strengthening frameworks for emergency liquidity assistance, bank resolution, and deposit insurance.”
By Dipo Olowookere
A total of 2.819 billion stocks worth N182.499 billion exchanged hands in 226,729 deals on the floor of the Nigerian Exchange (NGX) Limited last week, in contrast to the 3.648 billion stocks valued at N220.568 billion transacted in 251,861 deals a week earlier.
From this, financial shares accounted for 2.006 billion units sold for N99.697 billion in 96,171 deals, contributing 71.17 per cent and 54.63 per cent to the total trading volume and value, respectively.
Consumer goods equities traded 178.863 million units worth N7.872 billion in 26,637 deals, and energy stocks recorded a turnover of 151.237 million units valued at N38.309 billion in 16,879 deals.
First Holdco, FCMB, and Access Holdings accounted for 939.402 million units worth N57.673 billion in 19,051 deals, contributing 33.33 per cent and 31.60 per cent to the total trading volume and value, respectively.
Business Post reports that the performance indicators were mixed in the five-day trading week, as the All-Share Index (ASI) depreciated by 0.14 per cent to 243,462.13 points, while the market capitalisation appreciated by 0.39 per cent to N157.057 trillion.
All other indices finished higher except the main board, consumer goods, energy, Lotus II, industrial goods, growth, and sovereign bond indices, which fell by 1.54 per cent, 0.15 per cent, 0.11 per cent, 0.40 per cent, 6.26 per cent, 0.09 per cent, and 0.33 per cent, respectively, while the commodity index closed flat.
Forty-four shares gained weight in the week versus 60 shares of the preceding week, 35 equities depreciated versus 28 equities in the previous week, and 67 stocks closed flat versus 58 stocks of the earlier week.
The best-performing stock was First Holdco, which gained 38.66 per cent to trade at N95.95. Thomas Wyatt expanded by 27.16 per cent to N3.09, Fidelity Bank grew by 15.00 per cent to N21.85, Learn Africa grew by 14.44 per cent to N10.30, and UBA chalked up 10.98 per cent to close at N45.50.
The worst-performing stock was BUA Cement after giving up 18.99 per cent to quote at N275.60, Red Star Express shed 18.53 per cent to end at N20.00, International Energy Insurance declined by 15.27 per cent to N4.66, C&I Leasing dropped 13.28 per cent to N5.55, and PZ Cussons crashed by 10.06 per cent to N80.95.
By Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc kept the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.04 per cent on Friday, July 16.
The securities depository company added N2.50 to its share price to settle at N95.14 per unit from the preceding session’s N92.64 per unit.
However, FrieslandCampina Wamco Nigeria Plc slid during the session by N5.85 to N141.81 per share from N147.66 per share.
But when the bourse closed for the day, the market capitalisation increased by N1.08 billion to N2.593 trillion from N2.592 trillion, while the NASD Security Index (NSI) appreciated by 1.80 points to 4,320.67 points from 4,318.87 points.
During the session, the value of securities slid by 38.9 per cent to N63.5 million from N104.1 million, the volume of securities went down by 34.5 per cent to 1.2 million units from 4.8 million units, and the number of deals declined by 15.4 per cent to 33 deals from 39 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 75.4 million units traded for N5.3 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
