Economy
Nigeria’s Economy to Grow in 2022 Amid Global Downturn—IMF
By Adedapo Adesanya
Nigeria’s economy has been projected to grow this year by the International Monetary Fund (IMF) despite cutting its global growth forecasts because of the war in Ukraine.
In its latest World Economic Outlook (WEO) titled War Sets Back the Global Recovery which was released on the sidelines of the ongoing IMF/World Bank hybrid spring meetings in Washington DC, the global lender said Africa’s largest economy will rise by 3.4 per cent this year.
The IMF produces the outlook in April and October, with updates in January and July. Six months ago, it was expecting the easing of pandemic pressures to result in Nigeria’s 2022 economic growth reaching 2.7 per cent.
But the fund has reviewed upward the country’s 2023 growth prediction, from 2.7 per cent to 3.1 per cent.
The multilateral institution noted that the non-oil sector played a pivotal role in increasing Nigeria’s growth prospect, noting that globally, only 86 per cent of countries saw a downward revision of their growth projection.
It indicated that Nigeria was amongst 14 per cent of countries that had been estimated to record growth.
Other parts of the report noted, “The increase in oil prices has, however, lifted growth prospects for the region’s oil exporters, such as Nigeria. Overall, growth in sub-Saharan Africa is projected at 3.8 per cent in 2022.
“In sub-Saharan Africa, food prices are also the most important channel of transmission, although in slightly different ways. Wheat is a less important part of the diet, but food, in general, is a larger share of consumption.
“Higher food prices will hurt consumers’ purchasing power, particularly among low-income households and weigh on domestic demand. Social and political turmoil, most notably in West Africa, also weighs on the outlook.”
This will happen even as “Global economic prospects have worsened significantly,”
It warned that Russia’s invasion could lead to the fragmentation of the world economy into rival blocs.
As a result, the multilateral lender reduced its growth estimate for 2022 from 4.4 per cent to 3.6 per cent.
The IMF said a further two percentage points could be shaved off global growth next year in the event the war in Ukraine led to even higher energy prices, entrenched inflation and big losses on financial markets.
By Dipo Olowookere
Investors bought and sold 3.132 billion shares worth N76.552 billion in 61,456 deals at the Nigerian Exchange (NGX) Limited last week compared with the 2.252 billion shares valued at N58.831 billion traded in 63,657 deals in the preceding week.
Wema Bank, Secure Electronic Technology, and Access Holdings were the busiest equities during the week with the sale of 1.437 billion units valued at N15.406 billion in 5,292 deals, contributing 45.89 per cent and 20.13 per cent to the total trading volume and value, respectively.
In the week, financial stocks dominated the activity chart with 2.336 billion units worth N33.014 billion in 27,100 deals, contributing 74.59 per cent and 43.13 per cent to the total trading volume and value, respectively.
Services shares recorded 284.988 million units valued at N807.646 million in 4,638 deals, and consumer goods equities sold 139.010 million units for N5.704 billion in 6,469 deals.
Business Post reports that 44 stocks appreciated in the period under review versus 33 stocks of the preceding week, 44 equities also depreciated last week compared with the previous week’s 57 equities, and 64 shares closed flat, in contrast to the 62 shares recorded a week earlier.
SCOA Nigeria gained 59.68 per cent to trade at N3.96, UPDC appreciated by 19.05 per cent to N2.00, Coronation Insurance rose by 15.32 per cent to N2.56, Royal Exchange leapt by 14.61 per cent to N1.02, and DAAR Communications expanded by 13.51 per cent to 84 Kobo.
On the flip side, Sunu Assurances depleted by 25.11 per cent to N5.01, Eunisell lost 18.95 per cent to close at N12.66, John Holt went down by 18.47 per cent to N8.30, Abbey Mortgage Bank slumped by 14.60 per cent to N3.10, and Cornerstone Insurance depreciated by 14.29 per cent to N3.48.
After the five-day trading week, the All-Share Index (ASI) and the market capitalisation appreciated by 1.22 per cent and 1.26 per cent, respectively to 103,598.30 points and N63.645 trillion.
In the same vein, all other indices finished higher apart from the insurance, consumer goods, energy and sovereign bond indices, which depreciated by 1.20 per cent, 1.20 per cent, 0.93 per cent and 0.10 per cent, respectively while the ASeM index closed flat.
By Dipo Olowookere
It was a good day for the stock market in Nigeria as it appreciated by 0.79 per cent on Friday to bring the year-to-date return to 0.66 per cent.
This was influenced by renewed interest across most of the sectors of the market, though the insurance index declined by 2.15 per cent when trading activities ended for the session.
Business Post reports that the banking counter appreciated by 1.97 per cent, the consumer goods space grew by 0.70 per cent, the industrial goods sector gained 0.09 per cent, and the energy counter closed flat.
Yesterday, the All-Share Index (ASI) increased by 810.26 points to 103,598.46 points from the preceding day’s 102,788.20 points and the market capitalisation by N497 billion to N63.645 trillion from Thursday’s N63.148 trillion.
Chellaram was the biggest price gainer on Friday after it chalked up 10.00 per cent to trade at N4.07, Guinness Nigeria also appreciated by 10.00 per cent to N77.00, SCOA Nigeria improved by 10.00 per cent to N3.96, Transcorp Power jumped by 7.96 per cent to N349.80, and Lasaco Assurance went up by 7.19 per cent to N3.28.
Conversely, Neimeth was the biggest price loser as it shed 9.88 per cent to N3.10, John Holt declined by 9.78 per cent to N8.30, International Energy Insurance depleted by 9.74 per cent to N1.76, Sovereign Trust Insurance fell by 9.40 per cent to N1.06, and Austin Laz lost 9.00 per cent to close at N1.82.
As for the activity chart, a total of 576.4 million stocks valued at N9.0 billion in 11,546 deals compared with the 394.4 million stocks worth N22.8 billion traded in 12,160 deals in the preceding session, indicating a rise in the trading volume by 46.15 per cent, and a decline in the trading value and number of deals by 60.53 per cent and 5.05 per cent.
Secure Electronic Technology was the busiest equity with 202.2 million units worth N151.8 million, Nigerian Breweries traded 42.1 million units valued at N1.3 billion, Japaul exchanged 34.6 million units for N79.7 million, Access Holdings sold 32.2 million units valued at N807.0 million, and Sovereign Trust Insurance traded 17.0 million units worth N18.3 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.42 per cent gain on Friday, January 24 after three equities ended on the advancers’ chart at the close of business.
Nipco Plc gained N15.01 during the trading day to close at N165.11 per share versus N150.10 per share of the preceding session, Okitipupa Plc added N4.79 to end the session at N52.69 per unit compared with Thursday’s trading value of N47.90 per unit, and Central Securities Clearing System (CSCS) Plc expanded by 80 Kobo to trade at N24.00 per share, in contrast to the N23.30 per share it was sold a day earlier.
The gains recorded by these stocks pushed the value of the bourse higher by NN7.41 billion to N1.775 trillion from the N1.767 trillion recorded in the preceding session and the NASD Unlisted Security Index (NSI) grew by 6.93 points to wrap the session at 3,133.20 points compared with 3,120.13 points recorded in the previous session.
Yesterday, the price of FrieslandCampina Wamco Nigeria Plc went down by 92 Kobo to end the session at N38.58 per share, in contrast to the previous day’s N39.50 per share.
The volume of securities traded in the session decreased on Friday by 95.9 per cent to 16.3 million units from 407.4 million units, the value of shares traded yesterday slumped by 97.4 per cent to N10.2 million from N391.2 million units, and the number of deals declined by 23.3 per cent to 23 deals from 30 deals.
Impresit Bakolori Plc was the most active stock by value (year-to-date) with 406.5 million units worth N386.1 million, followed by FrieslandCampina Wamco Nigeria Plc with 4.3 million units valued at N170.4 million, and Geo-Fluids Plc with 9.1 million units sold for N44.3 million.
Impresit Bakolori Plc was also the most active stock by volume (year-to-date) with 406.5 million units worth N386.1 million, trailed by Industrial and General Insurance (IGI) Plc with 26.3 million units sold for N6.3 million, and Geo-Fluids Plc with 9.2 million units valued at N44.3 million.
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